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SEGMENTS AND GEOGRAPHIC INFORMATION (Tables)

6 Months Ended

Jun. 30, 2024

SEGMENTS AND GEOGRAPHIC INFORMATION

Reconciliation of Segment Reporting to Consolidated


		Engineered			Latex			Plastics						Americas			Total Segment
Three Months Ended ⁽¹⁾		Materials			Binders			Solutions			Polystyrene			Styrenics			Adjusted EBITDA
June 30, 2024		$	25.2		$	25.6		$	16.3		$	6.6		$	15.6		$	89.3
June 30, 2023		$	11.8		$	23.5		$	24.6		$	1.7		$	12.5		$	74.1


		Engineered			Latex			Plastics						Americas			Total Segment
Six Months Ended ⁽¹⁾		Materials			Binders			Solutions			Polystyrene			Styrenics			Adjusted EBITDA
June 30, 2024		$	29.5		$	51.3		$	39.0		$	19.2		$	21.8		$	160.8
June 30, 2023		$	0.1		$	47.5		$	48.2		$	10.6		$	30.1		$	136.5

(1)

The Company’s primary measure of segment operating performance is Adjusted EBITDA, which is defined as income from continuing operations before interest expense, net; provision for income taxes; depreciation and amortization expense; loss on extinguishment of long-term debt; asset impairment charges; gains or losses on the dispositions of businesses and assets; restructuring charges; acquisition related costs and benefits and other items. Segment Adjusted EBITDA is a key metric that is used by management to evaluate business performance in comparison to budgets, forecasts, and prior year financial results, providing a measure that management believes reflects core operating performance by removing the impact of transactions and events that would not be considered a part of core operations. Other companies in the industry may define segment Adjusted EBITDA differently than the Company, and as a result, it may be difficult to use segment Adjusted EBITDA, or similarly named financial measures, that other companies may use to compare the performance of those companies to the Company’s segment performance.

Reconciliation of IBT to Adjusted EBITDA


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2024			2023			2024			2023
Loss before income taxes		$	(47.5)		$	(374.1)		$	(117.6)		$	(439.7)
Interest expense, net			64.7			40.2			127.7			78.5
Depreciation and amortization			46.6			52.5			91.6			108.5
Corporate Unallocated⁽²⁾			22.5			17.3			49.0			43.4
Adjusted EBITDA Addbacks⁽³⁾			3.0			338.2			10.1			345.8
Segment Adjusted EBITDA		$	89.3		$	74.1		$	160.8		$	136.5

(2)	Corporate unallocated includes corporate overhead costs and certain other income and expenses.

(3)	Adjusted EBITDA addbacks for the three and six months ended June 30, 2024 and 2023 are as follows:


		Three Months Ended						Six Months Ended
		June 30,						June 30,
		2024			2023			2024			2023
Net gain on disposition of businesses and assets ^(a)		$	(3.5)		$	(16.3)		$	(7.1)		$	(16.3)
Restructuring and other charges (Note 4)			4.0			1.5			13.4			5.2
Asset impairment charges or write-offs (Note 13)			—			1.3			—			1.6
Goodwill impairment charges (Note 10)			—			349.0			—			349.0
Other items ^(b)			2.5			2.7			3.8			6.3
Total Adjusted EBITDA Addbacks		$	3.0		$	338.2		$	10.1		$	345.8

(a)

In June 2024, the Company entered into an agreement to sell certain European emission certifications the Company no longer intends to utilize for a cash consideration of approximately $3.5 million, which was entirely recorded as a pre-tax gain on sale within “Other expense (income), net” in the condensed consolidated statements of operations during the three and six months ended June 30, 2024. In March 2024, the Company entered into two separate agreements to sell its land, buildings and equipment in Bronderslev, Denmark and Belen, New Mexico for gross cash consideration of approximately $4.7 million. The Company recorded pre-tax gain on sales of $3.6 million during the six months ended June 30, 2024, which was recorded within “Selling, general and administrative expenses” in the condensed consolidated statements of operations.

In April 2023, the Company entered into an agreement to sell its land, buildings and equipment in Matamoros, Mexico for a cash consideration of approximately $19.0 million. The Company recorded a pre-tax gain on sale of $14.4 million during the three and six months ended June 30, 2023, which was recorded within “Selling, general and administrative expenses” in the condensed consolidated statements of operations.

(b)

Other items for the three and six months ended June 30, 2024 and 2023 primarily relate to costs incurred in conjunction with certain of the Company’s strategic initiatives. Other items for the three and six months ended June 30, 2023 also relate to our transition to a new enterprise resource planning system.