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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2022
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company’s products and operations are managed and reported in two operating segments: Fire Safety and Specialty Products, formerly Oil Additives. The Fire Safety segment provides fire retardants and firefighting foams, as well as specialized equipment and services typically offered in conjunction with the Company’s retardant and foam products. In June 2022, the Oil Additives segment, which produces and sells P 2 S 5, was renamed the Specialty Products segment to better reflect the current and expanding applications for P 2 S 5 in several end markets and applications, including lubricant additives, various agricultural applications, various mining applications, and emerging electric battery technologies. Within the lubricant additive end market, currently the Company’s largest end market application, P 2 S 5 is primarily used in the production of a family of compounds called ZDDP, which is considered an essential component in the formulation of engine oils with its main function to provide anti-wear protection to engine components. P 2 S 5 is also used in pesticide and mining chemicals applications. Interest income, interest expense, other income (expense) and certain corporate operating expenses are neither allocated to the segments nor included in the measures of segment performance by the chief operating decision-maker (“CODM”). The corporate category is not considered to be a segment. The CODM is the Company's CEO. The Company’s CODM uses the segment net sales and segment Adjusted EBITDA to assess the ongoing performance of the Company’s business segments and to allocate resources. The Company defines Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, as adjusted on a consistent basis for certain non-recurring or unusual items in a balanced manner and on a segment basis. These non-recurring or unusual items may include acquisition and integration related costs, management fees and other non-recurring items. Information related to net sales, Adjusted EBITDA, depreciation and amortization capital expenditures and assets and of the Company’s operations are summarized below (in thousands):
| Successor |  |  | Predecessor
| Year Ended December 31, 2022 |  | November 9, 2021 Through December 31, 2021 |  |  | January 1, 2021 Through November 8, 2021 |  | Year Ended December 31, 2020
Net sales: |  |  |  |  |  |  |  |
Fire safety | $ | 226,583 |  |  | $ | 7,913 |  |  |  | $ | 253,267 |  |  | $ | 244,968 |
Specialty products | 133,922 |  |  | 13,110 |  |  |  | 88,048 |  |  | 94,609 |
Total | $ | 360,505 |  |  | $ | 21,023 |  |  |  | $ | 341,315 |  |  | $ | 339,577 |
Adjusted EBITDA: |  |  |  |  |  |  |  |
Fire safety | $ | 77,365 |  |  | $ | (3,696) |  |  |  | $ | 121,589 |  |  | $ | 112,034 |
Specialty products | 48,026 |  |  | 1,838 |  |  |  | 21,703 |  |  | 23,977 |
Total segment Adjusted EBITDA | 125,391 |  |  | (1,858) |  |  |  | 143,292 |  |  | 136,011 |
Less: |  |  |  |  |  |  |  |
Depreciation and amortization | 65,795 |  |  | 9,379 |  |  |  | 52,000 |  |  | 58,117 |
Interest and financing expense | 42,585 |  |  | 6,352 |  |  |  | 39,087 |  |  | 42,017 |
Founders advisory fees - related party | (117,302) |  |  | 652,990 |  |  |  | — |  |  | — |
Non-recurring expenses | 6,885 |  |  | 5,580 |  |  |  | 4,845 |  |  | 2,379 |
Share-based compensation expense | 14,649 |  |  | 4,821 |  |  |  | 156 |  |  | — |
Non-cash purchase accounting impact | 24,796 |  |  | 6,125 |  |  |  | — |  |  | — |
(Gain) loss on contingent earn-out | (12,706) |  |  | 198 |  |  |  | 2,965 |  |  | — |
Management fees | — |  |  | — |  |  |  | 1,073 |  |  | 1,281 |
Contingent future payments | — |  |  | — |  |  |  | 4,375 |  |  | 3,125 |
Unrealized foreign currency loss (gain) | 3,462 |  |  | 1,006 |  |  |  | 4,026 |  |  | (5,640) |
Income (loss) before income taxes | $ | 97,227 |  |  | $ | (688,309) |  |  |  | $ | 34,765 |  |  | $ | 34,732 |
Depreciation and amortization: |  |  |  |  |  |  |  |
Fire safety | $ | 51,299 |  |  | $ | 7,418 |  |  |  | $ | 36,994 |  |  | $ | 41,271 |
Specialty products | 14,496 |  |  | 1,961 |  |  |  | 15,006 |  |  | 16,846 |
Total | $ | 65,795 |  |  | $ | 9,379 |  |  |  | $ | 52,000 |  |  | $ | 58,117 |
|  |  |  |  |  | December 31, 2022 |  | December 31, 2021
Assets: |  |  |  |  |  |  |  |
Fire safety |  |  |  |  |  | $ | 1,958,633 |  |  | $ | 2,111,635 |
Specialty products |  |  |  |  |  | 497,983 |  |  | 466,748 |
Total |  |  |  |  |  | $ | 2,456,616 |  |  | $ | 2,578,383 |
Net sales by geographical area is as follows (in thousands):
| Successor |  |  | Predecessor
| Year Ended December 31, 2022 |  | November 9, 2021 Through December 31, 2021 |  |  | January 1, 2021 Through November 8, 2021 |  | Year Ended December 31, 2020
United States | 74 | % |  | 52 | % |  |  | 75 | % |  | 82 | %
International sales (1) | 26 |  |  | 48 |  |  |  | 25 |  |  | 18 |
Total net sales | 100 | % |  | 100 | % |  |  | 100 | % |  | 100 | %
(1)Except for Spain, which represented 11% of sales in the 2021 Successor Period due to the shortened reporting period, the Company had no other operations in any individual international country that represented more than 10% of sales in the year ended December 31, 2022, 2021 Successor Period, 2021 Predecessor Period and 2020 Predecessor Period. Property, plant and equipment, net by geographical area consisted of the following (in thousands):
| December 31, 2022 |  | December 31, 2021
United States | $ | 37,390 |  |  | $ | 37,159 |
Canada | 2,594 |  |  | 3,512 |
Germany | 14,802 |  |  | 17,199 |
Other foreign jurisdictions | 4,060 |  |  | 4,377 |
Total property, plant and equipment, net | $ | 58,846 |  |  | $ | 62,247 |

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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