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SEGMENT INFORMATION
 12 Months Ended
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 P2S5, was renamed the Specialty Products segment to better reflect the current and expanding applications for P2S5 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, P2S5 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. P2S5 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):
SuccessorPredecessor
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 products133,922 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 products48,026 1,838 21,703 23,977 
Total segment Adjusted EBITDA125,391 (1,858)143,292 136,011 
Less:
Depreciation and amortization65,795 9,379 52,000 58,117 
Interest and financing expense42,585 6,352 39,087 42,017 
Founders advisory fees - related party(117,302)652,990 — — 
Non-recurring expenses6,885 5,580 4,845 2,379 
Share-based compensation expense14,649 4,821 156 — 
Non-cash purchase accounting impact24,796 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 products14,496 1,961 15,006 16,846 
Total$65,795 $9,379 $52,000 $58,117 
December 31, 2022December 31, 2021
Assets:
Fire safety$1,958,633 $2,111,635 
Specialty products497,983 466,748 
Total$2,456,616 $2,578,383 
Net sales by geographical area is as follows (in thousands):
SuccessorPredecessor
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 States74 %52 %75 %82 %
International sales (1)
26 48 25 18 
Total net sales100 %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, 2022December 31, 2021
United States$37,390 $37,159 
Canada2,594 3,512 
Germany14,802 17,199 
Other foreign jurisdictions4,060 4,377 
Total property, plant and equipment, net$58,846 $62,247