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Segment Reporting and Geographical Area Data | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Segment Reporting | Note 3. Segment Reporting and Geographical Area Data The Performance Chemicals, Fuel Specialties and Oilfield Services segments operate in markets where we actively seek growth opportunities although their ultimate customers are different. Our Performance Chemicals segment provides innovative technology-based solutions for our customers’ processes or products in personal care, home care, agrochemical, construction, mining and other industrial markets. Our Fuel Specialties segment develops, manufactures, blends, markets and supplies a range of specialty chemical products used as additives in diesel, jet, marine, fuel oil and other fuels. Our Oilfield Services segment develops and markets chemical solutions for drilling, completion, production, DRA and oil and gas applications. In 2023, the Company had a significant customer in the Oilfield Services segment which accounted for $265.2 million and 13.6% (2022 - $222.2 million and 11.3%) of the group's net sales. In 2024, the net sales to this customer did not exceed 10% of the group's net sales. The Chief Operating Decision Maker (“CODM”) is the President and Chief Executive Officer (the Principal Executive Officer) and is a Director of Innospec Inc.. The CODM evaluates the performance of the Company’s segments and makes strategic decisions relating to the Company's allocation of resources, based on the segments' monthly gross profit and operating income. The following table analyzes financial information by the Company’s reportable segments:
(in millions) |  | 2024 |  |  | 2023 |  |  | 2022 |
Net Sales: |  |  |  |  |  |  |  |  |
Personal Care |  | $ | 390.0 |  |  | $ | 352.7 |  |  | $ | 393.3 |
Home Care |  |  | 106.6 |  |  |  | 86.8 |  |  |  | 94.2 |
Other |  |  | 157.1 |  |  |  | 122.1 |  |  |  | 152.2 |
Performance Chemicals |  |  | 653.7 |  |  |  | 561.6 |  |  |  | 639.7 |
Refinery and Performance |  |  | 517.4 |  |  |  | 540.6 |  |  |  | 552.6 |
Other |  |  | 183.7 |  |  |  | 155.3 |  |  |  | 177.6 |
Fuel Specialties |  |  | 701.1 |  |  |  | 695.9 |  |  |  | 730.2 |
Oilfield Services |  |  | 490.6 |  |  |  | 691.3 |  |  |  | 593.8 |
Total net sales |  | $ | 1,845.4 |  |  | $ | 1,948.8 |  |  | $ | 1,963.7 |
Gross profit: |  |  |  |  |  |  |  |  |
Performance Chemicals |  |  | 148.4 |  |  |  | 105.6 |  |  |  | 150.0 |
Fuel Specialties |  |  | 239.9 |  |  |  | 215.1 |  |  |  | 221.9 |
Oilfield Services |  |  | 154.6 |  |  |  | 270.4 |  |  |  | 214.8 |
Total gross profit |  | $ | 542.9 |  |  | $ | 591.1 |  |  | $ | 586.7 |
Operating income/(expense): |  |  |  |  |  |  |  |  |
Performance Chemicals |  | $ | 82.9 |  |  | $ | 54.5 |  |  | $ | 95.3 |
Fuel Specialties |  |  | 129.6 |  |  |  | 109.7 |  |  |  | 121.7 |
Oilfield Services |  |  | 38.8 |  |  |  | 78.6 |  |  |  | 41.7 |
Corporate costs |  |  | (70.2 | ) |  |  | (81.2 | ) |  |  | (71.4 | )
Adjustment to fair value of contingent consideration |  |  | (3.4 | ) |  |  | — |  |  |  | — |
Profit on disposal |  |  | 0.2 |  |  |  | — |  |  |  | — |
Total operating income |  | $ | 177.9 |  |  | $ | 161.6 |  |  | $ | 187.3 |
Identifiable assets at year-end: |  |  |  |  |  |  |  |  |
Performance Chemicals |  | $ | 598.3 |  |  | $ | 580.1 |  |  | $ | 610.4 |
Fuel Specialties |  |  | 553.8 |  |  |  | 529.2 |  |  |  | 500.6 |
Oilfield Services |  |  | 272.5 |  |  |  | 310.8 |  |  |  | 297.8 |
Corporate |  |  | 310.1 |  |  |  | 287.3 |  |  |  | 194.9 |
Total assets |  | $ | 1,734.7 |  |  | $ | 1,707.4 |  |  | $ | 1,603.7 |
The difference between net sales and gross profit is defined as cost of goods sold. For further information see the relevant accounting policy within Note 2 of the Notes to the Financial Statements. The difference between segmental gross profit and operating income/(expense) is split between selling, general and administrative expenses and research and development expenses. For further information see the relevant accounting policies within Note 2 of the Notes to the Financial Statements. The following table analyzes cost of goods sold by the Company’s reportable segments:
(in millions) |  | 2024 |  |  | 2023 |  |  | 2022 |
Performance Chemicals |  | $ | 505.3 |  |  | $ | 456.0 |  |  | $ | 489.7 |
Fuel Specialties |  |  | 461.2 |  |  |  | 480.8 |  |  |  | 508.3 |
Oilfield Services |  |  | 336.0 |  |  |  | 420.9 |  |  |  | 379.0 |
Total cost of goods sold |  | $ | 1,302.5 |  |  | $ | 1,357.7 |  |  | $ | 1,377.0 |
The following table analyzes selling, general and administrative expenses and research and development expenses by the Company’s reportable segments:
(in millions) |  | 2024 |  |  | 2023 |  |  | 2022 |
Performance Chemicals |  | $ | 65.5 |  |  | $ | 51.1 |  |  | $ | 54.7 |
Fuel Specialties |  |  | 110.3 |  |  |  | 105.4 |  |  |  | 100.2 |
Oilfield Services |  |  | 115.8 |  |  |  | 191.8 |  |  |  | 173.1 |
Corporate |  |  | 70.2 |  |  |  | 81.2 |  |  |  | 71.4 |
Total selling, general and administrative expenses and research and development expenses |  | $ | 361.8 |  |  | $ | 429.5 |  |  | $ | 399.4 |
The Company includes within the corporate costs line item the costs of: • managing the group as a company with securities listed on the NASDAQ and registered with the SEC; • the CEO’s office, group finance, group human resources, group legal and compliance counsel, and investor relations; • running the corporate offices in the U.S. and Europe; • the corporate development function since they do not relate to the current trading activities of our other reporting segments; and • the corporate share of the information technology, product technology, safety, health, environment, accounting and human resources departments. The following tables analyze sales and other financial information by location:
(in millions) |  | 2024 |  |  | 2023 |  |  | 2022 |
Net sales by source: |  |  |  |  |  |  |  |  |
United States |  | $ | 1,039.7 |  |  | $ | 1,227.2 |  |  | $ | 1,204.4 |
United Kingdom |  |  | 823.4 |  |  |  | 857.7 |  |  |  | 932.5 |
Rest of World |  |  | 288.9 |  |  |  | 199.4 |  |  |  | 225.1 |
Sales between areas |  |  | (306.6 | ) |  |  | (335.5 | ) |  |  | (398.3 | )
|  | $ | 1,845.4 |  |  | $ | 1,948.8 |  |  | $ | 1,963.7 |
Income before income taxes: |  |  |  |  |  |  |  |  |
United States |  | $ | 90.2 |  |  | $ | 95.2 |  |  | $ | 106.3 |
United Kingdom |  |  | (24.6 | ) |  |  | 59.1 |  |  |  | 43.2 |
Rest of World |  |  | (24.4 | ) |  |  | 20.1 |  |  |  | 35.1 |
|  | $ | 41.2 |  |  | $ | 174.4 |  |  | $ | 184.6 |
Long-lived assets at year-end: |  |  |  |  |  |  |  |  |
United States |  | $ | 156.2 |  |  | $ | 156.3 |  |  | $ | 146.9 |
United Kingdom |  |  | 88.0 |  |  |  | 73.7 |  |  |  | 50.6 |
Rest of World |  |  | 133.6 |  |  |  | 137.6 |  |  |  | 112.7 |
|  | $ | 377.8 |  |  | $ | 367.6 |  |  | $ | 310.2 |
Identifiable assets at year-end: |  |  |  |  |  |  |  |  |
United States |  | $ | 593.6 |  |  | $ | 613.7 |  |  | $ | 558.4 |
United Kingdom |  |  | 488.2 |  |  |  | 434.9 |  |  |  | 462.3 |
Rest of World |  |  | 270.4 |  |  |  | 259.5 |  |  |  | 224.2 |
Goodwill |  |  | 382.5 |  |  |  | 399.3 |  |  |  | 358.8 |
|  | $ | 1,734.7 |  |  | $ | 1,707.4 |  |  | $ | 1,603.7 |
Sales by geographical area are reported by source, being where the transactions originated. Intercompany sales are priced using an appropriate pricing methodology and are eliminated in the consolidated financial statements. Identifiable assets are those directly associated with the operations of the geographical area. Goodwill has not been allocated by geographical location on the grounds that it would be impracticable to do so.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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