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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2023
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. 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. The Specialty Products segment produces and sells P 2 S 5 used in several end markets and applications, including lubricant additives, various agricultural applications, various mining applications, and emerging electric battery technologies. Within the lubricant additives 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 lubricating 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 reviewed 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, 2023 |  | Year Ended December 31, 2022 |  | November 9, 2021 Through December 31, 2021 |  |  | January 1, 2021 Through November 8, 2021
Net sales: |  |  |  |  |  |  |  |
Fire safety | $ | 225,554 |  |  | $ | 226,583 |  |  | $ | 7,913 |  |  |  | $ | 253,267 |
Specialty products | 96,554 |  |  | 133,922 |  |  | 13,110 |  |  |  | 88,048 |
Total | $ | 322,108 |  |  | $ | 360,505 |  |  | $ | 21,023 |  |  |  | $ | 341,315 |
Adjusted EBITDA: |  |  |  |  |  |  |  |
Fire safety | $ | 76,214 |  |  | $ | 77,365 |  |  | $ | (3,696) |  |  |  | $ | 121,589 |
Specialty products | 20,573 |  |  | 48,026 |  |  | 1,838 |  |  |  | 21,703 |
Total segment Adjusted EBITDA | 96,787 |  |  | 125,391 |  |  | (1,858) |  |  |  | 143,292 |
Less: |  |  |  |  |  |  |  |
Depreciation and amortization | 64,855 |  |  | 65,795 |  |  | 9,379 |  |  |  | 52,000 |
Interest and financing expense | 41,378 |  |  | 42,585 |  |  | 6,352 |  |  |  | 39,087 |
Founders advisory fees - related party | (108,481) |  |  | (117,302) |  |  | 652,990 |  |  |  | — |
Intangible impairment | 40,738 |  |  | — |  |  | — |  |  |  | — |
Non-recurring expenses | 4,046 |  |  | 6,885 |  |  | 5,580 |  |  |  | 4,845 |
Share-based compensation expense | 1,596 |  |  | 14,649 |  |  | 4,821 |  |  |  | 156 |
Non-cash purchase accounting impact | — |  |  | 24,796 |  |  | 6,125 |  |  |  | — |
(Gain) loss on contingent earn-out | (7,273) |  |  | (12,706) |  |  | 198 |  |  |  | 2,965 |
Management fees | — |  |  | — |  |  | — |  |  |  | 1,073 |
Contingent future payments | — |  |  | — |  |  | — |  |  |  | 4,375 |
Unrealized foreign currency (gain) loss | (1,655) |  |  | 3,462 |  |  | 1,006 |  |  |  | 4,026 |
Income (loss) before income taxes | $ | 61,583 |  |  | $ | 97,227 |  |  | $ | (688,309) |  |  |  | $ | 34,765 |
Depreciation and amortization: |  |  |  |  |  |  |  |
Fire safety | $ | 51,178 |  |  | $ | 51,299 |  |  | $ | 7,418 |  |  |  | $ | 36,994 |
Specialty products | 13,677 |  |  | 14,496 |  |  | 1,961 |  |  |  | 15,006 |
Total | $ | 64,855 |  |  | $ | 65,795 |  |  | $ | 9,379 |  |  |  | $ | 52,000 |
|  |  |  |  | December 31, 2023 |  |  | December 31, 2022
Assets: |  |  |  |  |  |  |  |
Fire safety |  |  |  |  | $ | 1,837,146 |  |  |  | $ | 1,958,633 |
Specialty products |  |  |  |  | 478,276 |  |  |  | 497,983 |
Total |  |  |  |  | $ | 2,315,422 |  |  |  | $ | 2,456,616 |
Net sales by geographical area is as follows (in thousands):
| Successor |  |  | Predecessor
| Year Ended December 31, 2023 |  | Year Ended December 31, 2022 |  | November 9, 2021 Through December 31, 2021 |  |  | January 1, 2021 Through November 8, 2021
United States | 65 | % |  | 74 | % |  | 52 | % |  |  | 75 | %
Canada | 14 |  |  | 5 |  |  | 1 |  |  |  | 7 |
Other international sales (1) | 21 |  |  | 21 |  |  | 47 |  |  |  | 18 |
Total net sales | 100 | % |  | 100 | % |  | 100 | % |  |  | 100 | %
(1) In the 2021 Successor Period, Spain represented 11% of sales due to the shortened reporting period. Except for Canada, the Company had no other operations in any individual international country that represented more than 10% of sales in the years ended December 31, 2023 and 2022, 2021 Successor Period and 2021 Predecessor Period. Property, plant and equipment, net by geographical area consisted of the following (in thousands):
| December 31, 2023 |  | December 31, 2022
United States | $ | 38,709 |  |  | $ | 37,390 |
Canada | 2,303 |  |  | 2,594 |
Germany | 14,376 |  |  | 14,802 |
Other foreign jurisdictions | 4,014 |  |  | 4,060 |
Total property, plant and equipment, net | $ | 59,402 |  |  | $ | 58,846 |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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