XML 32 R19.htm IDEA: XBRL DOCUMENT v3.23.3
Financial Information by Segment
 9 Months Ended
Sep. 30, 2023
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, and
•Specialty Carbon Black—Used for protection, colorization and conductivity in coatings, polymers, batteries, printing and other special applications.
Corporate includes income and expenses that cannot be directly allocated to the business segments or that are managed at the corporate level. This includes 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, share-based compensation, and non-recurring items (such as restructuring expenses, consulting fees related to Company strategy, legal settlements gains, etc.) plus Earnings 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, 2023 and 2022 are as follows:
RubberSpecialtyCorporateTotal
(In millions)
2023
Net sales from external customers$315.8 $150.4 $— $466.2 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment17.3 10.6 — 27.9 
Equity in earnings of affiliated companies, net of tax0.1 — — 0.1 
Interest and other financial expense, net(12.9)(12.9)
Reclassification of actuarial gain from AOCI2.2 2.2 
Adjusted EBITDA51.2 26.1 — 77.3 
2022
Net sales from external customers$373.5 $169.6 $— $543.1 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment15.6 9.6 — 25.2 
Equity in earnings of affiliated companies, net of tax0.1 — — 0.1 
Interest and other financial expense, net(10.2)(10.2)
Adjusted EBITDA49.4 31.1 — 80.5 
Segment operating results for the nine months ended September 30, 2023 and 2022:
RubberSpecialtyCorporateTotal
(In millions)
2023
Net sales from external customers$963.8 $461.9 $— $1,425.7 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment51.0 29.8 — 80.8 
Equity in earnings of affiliated companies, net of tax0.4 — — 0.4 
Interest and other financial expense, net(41.6)(41.6)
Reclassification of actuarial gain from AOCI6.7 6.7 
Adjusted EBITDA172.4 93.3 — 265.7 
2022
Net sales from external customers$1,039.7 $529.1 $— $1,568.8 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment49.1 30.8 — 79.9 
Excluding equity in earnings of affiliated companies, net of tax0.3 — — 0.3 
Interest and other financial expense, net(29.1)(29.1)
Adjusted EBITDA128.1 119.0 — 247.1 
A reconciliation of Income before earnings in affiliated companies and income taxes to Adjusted EBITDA for each of the periods presented is as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(In millions)
Income before earnings in affiliated companies and income taxes$35.0 $43.4 $143.2 $132.0 
Corporate charges3.6 1.6 6.4 5.8 
Depreciation and amortization of intangible assets, right of use assets, and property, plant and equipment27.9 25.2 80.8 79.9 
Equity in earnings of affiliated companies, net of tax0.1 0.1 0.4 0.3 
Interest and other financial expense, net12.9 10.2 41.6 29.1 
Reclassification of actuarial gain from AOCI(2.2)— (6.7)— 
Adjusted EBITDA$77.3 $80.5 $265.7 $247.1 
Corporate charges include the following:
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
(In millions)
Long term incentive plan$3.6 $1.9 $8.3 $5.0 
Other non-operating— (0.3)(1.9)0.8 
Corporate Charges$3.6 $1.6 $6.4 $5.8