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Financial Information by Segment | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Financial Information by Segment | Financial Information by Segment Segment information We disclose the results of each of our operating segments in accordance with ASC 280, Segment Reporting. We manage our business in two operating segments, Rubber Carbon Black and Specialty Carbon Black. •Rubber carbon black—Used in the reinforcement of rubber in tires and mechanical rubber goods. •Specialties—Used as pigments and performance additives in coatings, polymers, printing and special applications. The CEO, CFO and certain other senior management members, together, are the chief operating decision maker (“CODM”). Discrete financial information is available for each of the segments, and the CODM uses operating results of each operating segments for performance evaluation and resource allocation. Our CODM uses Adjusted EBITDA as the primary measure for reviewing our segment profitability. We define segment Adjusted EBITDA as Income from operations before depreciation and amortization, adjusted for acquisition related expenses, restructuring expenses, consulting fees related to Company strategy, share of profit or loss of joint venture and certain other items. The CODM does not review reportable segment asset or liability information for purposes of assessing performance or allocating resources. The following table shows the percent of revenue recognized in each of the Company’s reportable segment:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Rubber | 62 | % |  | 63 | % |  | 61 | % |  | 61 | %
Specialty | 38 | % |  | 37 | % |  | 39 | % |  | 39 | %
Adjustment items are not allocated to the individual segments as they are managed on a group basis. Segment reconciliation for the three months ended September 30, 2021 and 2020:
| Rubber |  | Specialties |  | Corporate |  | Total Segments
| (In thousands)
2021 |  |  |  |  |  |  |
Net sales from external customers | $ | 242,848 |  |  | $ | 150,218 |  |  | $ | — |  |  | $ | 393,066 |
Adjusted EBITDA | $ | 27,386 |  |  | $ | 39,030 |  |  | $ | — |  |  | $ | 66,416 |
Corporate charges | — |  |  | — |  |  | (2,188) |  |  | (2,188) |
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment | (13,333) |  |  | (10,477) |  |  | — |  |  | (23,810) |
Excluding equity in earnings of affiliated companies, net of tax | (143) |  |  | — |  |  | — |  |  | (143) |
Interest and other financial expense, net |  |  |  |  | (11,456) |  |  | (11,456) |
Reclassification of actuarial losses from AOCI |  |  |  |  | (1,197) |  |  | (1,197) |
Income before earnings in affiliated companies and income taxes |  |  |  |  |  |  | $ | 27,622 |
2020 |  |  |  |  |  |  |
Net sales from external customers | $ | 178,406 |  |  | $ | 103,630 |  |  | $ | — |  |  | $ | 282,036 |
Adjusted EBITDA | $ | 28,525 |  |  | $ | 26,477 |  |  | $ | — |  |  | $ | 55,002 |
Corporate charges | — |  |  | — |  |  | (6,715) |  |  | (6,715) |
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment | (13,828) |  |  | (10,171) |  |  | — |  |  | (23,999) |
Excluding equity in earnings of affiliated companies, net of tax | (141) |  |  | — |  |  | — |  |  | (141) |
Interest and other financial expense, net |  |  |  |  | (10,768) |  |  | (10,768) |
Reclassification of actuarial losses from AOCI |  |  |  |  | (2,273) |  |  | (2,273) |
Income before earnings in affiliated companies and income taxes |  |  |  |  |  |  | $ | 11,106 |
Segment reconciliation for the nine months ended September 30, 2021 and 2020:
| Rubber |  | Specialties |  | Corporate |  | Total Segments
| (In thousands)
2021 |  |  |  |  |  |  |
Net sales from external customers | $ | 703,499 |  |  | $ | 450,620 |  |  | $ | — |  |  | $ | 1,154,119 |
Adjusted EBITDA | $ | 98,016 |  |  | $ | 118,066 |  |  | $ | — |  |  | $ | 216,082 |
Corporate charges | — |  |  | — |  |  | (8,190) |  |  | (8,190) |
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment | (41,726) |  |  | (32,884) |  |  | — |  |  | (74,610) |
Gain related to litigation settlement |  |  |  |  | 82,858 |  |  | 82,858 |
Excluding equity in earnings of affiliated companies, net of tax | (536) |  |  | — |  |  | — |  |  | (536) |
Interest and other financial expense, net |  |  |  |  | (30,366) |  |  | (30,366) |
Reclassification of actuarial losses from AOCI |  |  |  |  | (3,649) |  |  | (3,649) |
Income before earnings in affiliated companies and income taxes |  |  |  |  |  |  | $ | 181,589 |
2020 |  |  |  |  |  |  |
Net sales from external customers | $ | 502,895 |  |  | $ | 317,796 |  |  | $ | — |  |  | $ | 820,691 |
Adjusted EBITDA | $ | 63,060 |  |  | $ | 71,024 |  |  | $ | — |  |  | $ | 134,084 |
Corporate charges | — |  |  | — |  |  | (15,126) |  |  | (15,126) |
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment | (41,382) |  |  | (28,339) |  |  | — |  |  | (69,721) |
Excluding equity in earnings of affiliated companies, net of tax | (426) |  |  | — |  |  | — |  |  | (426) |
Interest and other financial expense, net |  |  |  |  | (28,656) |  |  | (28,656) |
Reclassification of actuarial losses from AOCI |  |  |  |  | (7,325) |  |  | (7,325) |
Income before earnings in affiliated companies and income taxes |  |  |  |  |  |  | $ | 12,830 |
The sales information noted above relates to external customers only. “Corporate” includes income and expense that cannot be directly allocated to the business segments or are managed on corporate level and includes finance income and expenses, taxes and items with less bearing on the underlying core business. In the Consolidated Statements of Operations, shipping and handling costs of $23.3 million and $17.9 million for the three months ended September 30, 2021 and 2020, respectively, and $69.8 million and $48.7 million for the nine months ended September 30, 2021 and 2020, respectively, were reflected in Selling, general and administrative expenses.

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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 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
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