XML 50 R23.htm IDEA: XBRL DOCUMENT
v3.22.0.1

Reportable Segments | 12 Months Ended
--- | ---
Dec. 31, 2021
Segment Reporting [Abstract] |
Reportable Segments | 15. Reportable Segments: The Company has organized its business around two operating segments based on the review of discrete financial results for each of the operating segments by the Company’s chief operating decision maker (the Company’s Chairman of the Board, President and Chief Executive Officer), or CODM, for performance assessment and resource allocation purposes. Each of the Company’s operating segments represents a reportable segment under GAAP. The Company’s reportable segments are organized based on the nature and economic characteristics of the Company’s products. The Company’s two reportable segments are as follows: (1) Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides on-purpose virgin sulfuric acid for water treatment, mining, and industrial applications; and (2) Catalyst Technologies serves the packaging and engineered plastics and the global refining, petrochemical and emissions control industries. The Catalyst Technologies segment includes equity in net income from Zeolyst International and Zeolyst C.V. (collectively, the “Zeolyst Joint Venture”), each of which are 50/50 joint ventures with CRI Zeolites Inc. (a wholly-owned subsidiary of Royal Dutch Shell). The Zeolyst Joint Venture is accounted for using the equity method in the Company’s consolidated financial statements (see Note 12 to these consolidated financial statements for further information). Company management evaluates the Catalyst Technologies segment’s performance, including the Zeolyst Joint Venture, on a proportionate consolidation basis. Accordingly, the revenues and expenses used to compute the Catalyst Technologies segment’s adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) include the Zeolyst Joint Venture’s results of operations on a proportionate basis based on the Company’s 50% ownership level. Since the Company uses the equity method of accounting for the Zeolyst Joint Venture, these items are eliminated when reconciling to the Company’s consolidated results of operations. The Company’s management evaluates the operating results of each reportable segment based upon Adjusted EBITDA. Adjusted EBITDA consists of EBITDA, which is a measure defined as net income before interest, income taxes, depreciation and amortization (each of which is included in the Company’s consolidated statements of income), and adjusted for certain items as discussed below. Summarized financial information for the Company’s reportable segments is shown in the following table:
|  | Years ended December 31,
|  | 2021 |  | 2020 |  | 2019
Sales: |  |  |  |  |  |
Ecoservices |  | $ | 500,513 |  |  | $ | 401,913 |  |  | $ | 447,080 |
Catalyst Technologies(1) |  | 110,688 |  |  | 94,007 |  |  | 85,667 |
Total |  | $ | 611,201 |  |  | $ | 495,920 |  |  | $ | 532,747 |
Adjusted EBITDA:(2) |  |  |  |  |  |
Ecoservices |  | $ | 177,672 |  |  | $ | 157,198 |  |  | $ | 175,640 |
Catalyst Technologies(3) |  | 88,028 |  |  | 74,504 |  |  | 107,808 |
Unallocated corporate expenses |  | (38,089) |  |  | (39,087) |  |  | (43,263) |
Total |  | $ | 227,611 |  |  | $ | 192,615 |  |  | $ | 240,185 |
(1)Excludes the Company’s proportionate share of sales from the Zeolyst Joint Venture accounted for using the equity method. The proportionate share of sales is $131,332, $128,623 and $170,338 for the years ended December 31, 2021, 2020 and 2019, respectively. (2)The Company defines Adjusted EBITDA as EBITDA adjusted for certain items as noted in the reconciliation below. Management evaluates the performance of its segments and allocates resources based on several factors, of which the primary measure is Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income as an indicator of the Company’s operating performance. Adjusted EBITDA as defined by the Company may not be comparable with EBITDA or Adjusted EBITDA as defined by other companies. (3) The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $49,872 for the year ended December 31, 2021, which includes $27,827 of equity in net income plus $6,480 of amortization of investment in affiliate step-up plus $15,565 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $42,515 for the year ended December 31, 2020, which includes $21,157 of equity in net income plus $6,634 of amortization of investment in affiliate step-up plus $14,724 of joint venture depreciation, amortization and interest. The Adjusted EBITDA from the Zeolyst Joint Venture included in the Catalyst Technologies segment is $68,138 for the year ended December 31, 2019, which includes $45,899 of equity in net income plus $7,534 of amortization of investment in affiliate step-up plus $14,705 of joint venture depreciation, amortization and interest. A reconciliation of net income attributable to Ecovyst to Adjusted EBITDA is as follows:
|  | Years ended December 31,
|  | 2021 |  | 2020 |  | 2019
Reconciliation of net income attributable to Ecovyst Inc. to Adjusted EBITDA |  |  |  |  |  |
Net income from continuing operations |  | $ | 1,794 |  |  | $ | 54,280 |  |  | $ | 31,120 |
Provision (benefit) for income taxes |  | 12,147 |  |  | (52,065) |  |  | 12,299 |
Interest expense, net |  | 36,990 |  |  | 50,409 |  |  | 66,872 |
Depreciation and amortization |  | 79,741 |  |  | 76,926 |  |  | 74,781 |
EBITDA |  | 130,672 |  |  | 129,550 |  |  | 185,072 |
Joint venture depreciation, amortization and interest |  | 15,565 |  |  | 14,724 |  |  | 14,705 |
Amortization of investment in affiliate step-up |  | 6,480 |  |  | 6,634 |  |  | 7,534 |
Debt extinguishment costs |  | 26,902 |  |  | 25,028 |  |  | 3,400 |
Net loss on asset disposals |  | 5,666 |  |  | 4,722 |  |  | 4,559 |
Foreign currency exchange (gain) loss |  | 4,716 |  |  | (5,264) |  |  | 1,228 |
LIFO (benefit) expense |  | (1,931) |  |  | (5,262) |  |  | 6,458 |
Transaction and other related costs |  | 2,009 |  |  | 1,118 |  |  | 186 |
Equity-based compensation |  | 31,838 |  |  | 17,194 |  |  | 13,281 |
Restructuring, integration and business optimization expenses |  | 2,964 |  |  | 1,994 |  |  | 2,571 |
Defined benefit pension plan (benefit) cost |  | (858) |  |  | (598) |  |  | 553 |
Other |  | 3,588 |  |  | 2,775 |  |  | 638 |
Adjusted EBITDA |  | $ | 227,611 |  |  | $ | 192,615 |  |  | $ | 240,185 |
The Company’s consolidated results include equity in net income from affiliated companies of $27,737, $21,065 and $45,808 for the years ended December 31, 2021, 2020, and 2019, respectively. This is primarily comprised of equity in net income of $27,827, $21,157 and $45,899 in the Catalyst Technologies segment from the Zeolyst Joint Venture for the years ended December 31, 2021, 2020 and 2019, respectively. The Company’s equity in net income from affiliated companies in the consolidated results includes amortization expense related to purchase accounting fair value adjustments associated with the Zeolyst Joint Venture as a result of a prior business combination. Capital expenditures for the Company’s reportable segments are shown in the following table:
|  | Years ended December 31,
|  | 2021 |  | 2020 |  | 2019
Capital expenditures: |  |  |  |  |  |
Ecoservices |  | $ | 43,561 |  |  | $ | 31,799 |  |  | $ | 42,310 |
Catalyst Technologies(1) |  | 15,997 |  |  | 11,177 |  |  | 8,984 |
Corporate(2) |  | 487 |  |  | 11,861 |  |  | 3,958 |
Capital expenditures per the consolidated statements of cash flows |  | $ | 60,045 |  |  | $ | 54,837 |  |  | $ | 55,252 |
(1) Excludes the Company’s proportionate share of capital expenditures from the Zeolyst Joint Venture. (2) Includes corporate capital expenditures, the cash impact from changes in capital expenditures in accounts payable and capitalized interest. Total assets by segment are not disclosed by the Company because the information is not prepared or used by the CODM to assess performance and to allocate resources. Sales and long-lived assets by geographic area are presented in the following tables. Sales are attributed to countries based upon location of products shipped.
|  | Years ended December 31,
|  | 2021 |  | 2020 |  | 2019
Sales(1): |  |  |  |  |  |
United States |  | $ | 571,587 |  |  | $ | 443,682 |  |  | $ | 492,146 |
Other foreign countries |  | 39,614 |  |  | 52,238 |  |  | 40,601 |
Total |  | $ | 611,201 |  |  | $ | 495,920 |  |  | $ | 532,747 |
(1) Except for the United States, no sales in an individual country exceeded 10% of the Company’s total sales. The Company sold products through its Ecoservices and Catalyst Technologies segments to customer A, which accounted for 12.6%, 10.4% and 11.7% of the Company’s total sales as of December 31, 2021, 2020, and 2019 respectively.
|  | December 31,
|  | 2021 |  | 2020
Long-lived assets(1): |  |  |  |
United States |  | $ | 597,506 |  |  | $ | 555,558 |
Other foreign countries |  | 28,840 |  |  | 65,095 |
Total |  | $ | 626,346 |  |  | $ | 620,653 |
(1) Long-lived assets includes property, plant and equipment, net and right-of-use lease assets.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&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 http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration