Segment and Related Information

12 Months Ended

Dec. 31, 2014

Segment and Related Information [Abstract]

Segment and Related Information

Note 22.  Segment and Related Information

The Company determines its operating segments based on the discrete financial information that is regularly evaluated by its chief operating decision maker, our President and Chief Executive Officer, in deciding how to allocate resources and in assessing performance. The Company's operating segments are strategic business units that offer different products and serve different markets. They are managed separately and require different technology and marketing strategies.

The Company has 5 reportable segments: Specialty Minerals, Refractories, Performance Materials, Construction Technologies, and Energy Services compared to 2 reportable segments in prior years (Specialty Minerals and Refractories).

- The Specialty Minerals segment produces and sells the synthetic mineral product precipitated calcium carbonate ("PCC") and processed mineral product quicklime ("lime"), and mines mineral ores then processes and sells natural mineral products, primarily limestone and talc.

-The Refractories segment produces and markets monolithic and shaped refractory materials and specialty products, services and application and measurement equipment, and calcium metal and metallurgical wire products.

-The Performance Materials segment is a leading supplier of bentonite and bentonite-related products. This segment also supplies chromite and leonardite and operates more than 25 mining or production facilities worldwide.

-The Construction Technologies segment provides products for non-residential construction, environmental and infrastructure projects worldwide. It serves customers engaged in a broad range of construction projects, including site remediation, concrete waterproofing for underground structures, liquid containment on projects ranging from landfills to flood control, and drilling applications including foundation, slurry wall, tunneling, water well, and horizontal drilling.

-The Energy Services segment provides services to improve the production, costs, compliance, and environmental impact of activities performed in oil and gas industry.  This segment offers a range of patented and unpatented technologies, products and services for all phases of oil and gas production, refining, and storage throughout the world.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on the operating income of the respective business units. The costs deducted to arrive at operating profit do not include several items, such as net interest or income tax expense. Depreciation expense related to corporate assets is allocated to the business segments and is included in their income from operations. However, such corporate depreciable assets are not included in the segment assets. Intersegment sales and transfers are not significant.

Segment information for the years ended December 31, 2014, 2013 and 2012 was as follows:

	2014			2013		2012
	(millions of dollars)
Net Sales
Specialty Minerals	$	650.1		$	669.8	$	653.4
Refractories		359.7			348.4		343.4
Performance Materials		352.8			-		-
Construction Technologies		152.3			-		-
Energy Services		210.1			-		-
Total		1,725.0			1,018.2		996.8
Income from Operations
Specialty Minerals		95.8			98.4		87.7
Refractories		43.2			35.9		32.6
Performance Materials		41.0			-		-
Construction Technologies		(0.8	)		-		-
Energy Services		16.3			-		-
Total		195.5			134.3		120.3
Depreciation, Depletion and Amortization
Specialty Minerals		35.6			38.6		40.8
Refractories		10.8			8.7		10.3
Performance Materials		18.7			-		-
Construction Technologies		5.8			-		-
Energy Services		13.5			-		-
Total		84.4			47.3		51.1
Segment Assets
Specialty Minerals		494.4			605.6		617.0
Refractories		357.3			378.1		355.5
Performance Materials		1,584.4			-		-
Construction Technologies		447.7			-		-
Energy Services		228.9			-		-
Total		3,112.7			983.7		972.5
Capital Expenditures
Specialty Minerals		44.4			33.6		41.0
Refractories		11.7			8.3		8.0
Performance Materials		7.3			-		-
Construction Technologies		1.0			-		-
Energy Services		16.7			-		-
Total		81.1			41.9		49.0

A reconciliation of the totals reported for the operating segments to the applicable line items in the consolidated financial statements is as follows:

	2014			2013			2012
	(millions of dollars)
Income from Operations before Provision for Taxes on Income
Income from operations for reportable segments	$	195.5		$	134.3		$	120.3
Acquisition related transaction and integration costs		(19.1	)		-			-
Unallocated corporate expenses		(7.6	)		(7.4	)		(6.7	)
Consolidated income from operations		168.8			126.9			113.6
Non-operating deductions, net		(45.8	)		(3.2	)		(3.0	)
Income from continuing operations before provision for taxes on income		123.0			123.7			110.6
Total Assets
Total segment assets		3,112.7			983.7			972.5
Corporate assets		114.0			233.8			238.7
Consolidated total assets		3,226.7			1,217.5			1,211.2
Capital Expenditures
Total segment capital expenditures		81.1			41.9			49.0
Corporate capital expenditures		0.7			1.9			3.1
Consolidated capital expenditures		81.8			43.8			52.1

Financial information relating to the Company's operations by geographic area was as follows:

	2014		2013		2012
	(millions of dollars)
Net Sales
United States	$	1,004.4	$	563.5	$	562.5
Canada/Latin America		90.2		70.3		72.5
Europe/Africa		407.7		269.2		248.2
Asia		222.7		115.2		113.6
Total International		720.6		454.7		434.3
Consolidated net sales		1,725.0		1,018.2		996.8
Long-Lived Assets
United States	$	1,865.2	$	235.2	$	235.8
Canada/Latin America		18.8		12.1		14.5
Europe/Africa		136.8		64.9		69.0
Asia		144.3		60.5		67.3
Total International		299.9		137.5		150.8
Consolidated long-lived assets		2,165.1		372.7		386.6

The purchase price allocation relating to acquired long-lived assets of AMCOL is preliminary as of December 31, 2014, see Note 2. Net sales and long-lived assets are attributed to countries and geographic areas based on the location of the legal entity. No individual foreign country represents more than 10% of consolidated net sales or consolidated long-lived assets.

The Company's sales by product category are as follows:

	2014		2013		2012
	(millions of dollars)
Paper PCC	$	454.5	$	480.0	$	471.5
Specialty PCC		66.1		67.2		65.9
Talc		55.5		50.9		48.1
Ground Calcium Carbonate		74.0		71.7		67.9
Refractory Products		273.9		264.0		264.1
Metallurgical Products		85.8		84.4		79.3
Metalcasting		181.4		-		-
Household, Personal Care and Specialty Products		108.0		-		-
Basic Minerals and Other Products		63.4		-		-
Environmental Products		70.7		-		-
Building Materials and Other Products		81.6		-		-
Energy Services		210.1		-		-
Total		1,725.0		1,018.2		996.8