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Financial Information by Segment
 9 Months Ended
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,
2021202020212020
Rubber62 %63 %61 %61 %
Specialty38 %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:
RubberSpecialtiesCorporateTotal 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:
RubberSpecialtiesCorporateTotal 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 settlement82,858 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.