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Financial Information by Segment
 9 Months Ended
Sep. 30, 2022
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 as follows:
•Rubber Carbon Black—Used in the reinforcement of rubber in tires and mechanical rubber goods.
•Specialty Black Carbon—Used for protection, colorization and conductivity in coatings, polymers, batteries, printing and special applications.
Corporate includes income and expenses that cannot be directly allocated to the business segments or that are managed at the corporate level including: finance income and expenses, taxes and items with less bearing on the underlying core business.
Discrete financial information is available for each of the segments, and the Chief Operating Decision Maker (“CODM”) uses operating results of each operating segment for performance evaluation and resource allocation.
Our CODM uses Adjusted EBITDA as the primary measure for reviewing our segment profitability. We define Adjusted EBITDA as Income from operations before depreciation and amortization, restructuring expenses, consulting fees related to Company strategy, gain related to legal settlements, and includes equity earnings (loss) in affiliated companies, net of tax.
The CODM does not review reportable segment asset or liability information for purposes of assessing performance or allocating resources.
Segment operating results for the three months ended September 30, 2022 and 2021 are as follows:
RubberSpecialtiesCorporateTotal Segments
(In millions)
2022
Net sales from external customers$373.5 $169.6 $— $543.1 
Adjusted EBITDA49.4 31.1 — 80.5 
Corporate charges— — (1.6)(1.6)
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment(15.6)(9.6)— (25.2)
Excluding equity in earnings of affiliated companies, net of tax(0.1)— — (0.1)
Interest and other financial expense, net(10.2)(10.2)
Income before earnings in affiliated companies and income taxes$43.4 
2021
Net sales from external customers$242.8 $150.2 $— $393.0 
Adjusted EBITDA27.4 39.0 — 66.4 
Corporate charges— — (2.2)(2.2)
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment(13.3)(10.5)— (23.8)
Excluding equity in earnings of affiliated companies, net of tax(0.1)— — (0.1)
Interest and other financial expense, net(11.5)(11.5)
Reclassification of actuarial losses from AOCI(1.2)(1.2)
Income before earnings in affiliated companies and income taxes$27.6 
Segment reconciliation for the nine months ended September 30, 2022 and 2021:
RubberSpecialtiesCorporateTotal Segments
(In millions)
2022
Net sales from external customers$1,039.7 $529.1 $— $1,568.8 
Adjusted EBITDA128.1 119.0 — 247.1 
Corporate charges— — (5.8)(5.8)
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment(49.1)(30.8)— (79.9)
Excluding equity in earnings of affiliated companies, net of tax(0.3)— — (0.3)
Interest and other financial expense, net(29.1)(29.1)
Income before earnings in affiliated companies and income taxes$132.0 
2021
Net sales from external customers$703.5 $450.6 $— $1,154.1 
Adjusted EBITDA98.0 118.1 — 216.1 
Corporate charges— — (8.3)(8.3)
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment(41.7)(32.9)— (74.6)
Gain related to litigation settlement82.982.9
Excluding equity in earnings of affiliated companies, net of tax(0.5)— — (0.5)
Interest and other financial expense, net(30.4)(30.4)
Reclassification of actuarial losses from AOCI(3.6)(3.6)
Income before earnings in affiliated companies and income taxes$181.6 
Expense from operations before income taxes and finance costs of the segment “Corporate” comprises the following:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
(In millions)
Long term incentive plan$1.9 $1.3 $5.0 $3.3 
Other non-operating(0.3)0.9 0.8 5.0 
Corporate Charges$1.6 $2.2 $5.8 $8.3