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Segment Reporting
 12 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment Reporting SEGMENT REPORTING
We identify our segments based on our management structure and the financial information used by our chief executive officer, who is our chief operating decision maker, to assess segment performance and allocate resources among our operating units. We have the following two reportable segments:
ELECTRONIC MATERIALS
Electronic Materials includes products and solutions for the semiconductor industry and consists of our CMP slurries business, CMP pads business, electronic chemicals business, and materials technologies business, which comprises the ITS business.
PERFORMANCE MATERIALS
Performance Materials consists of our PIM business, wood treatment business, and QED business.
Our chief operating decision maker evaluates segment performance based upon revenue and segment adjusted EBITDA. Segment adjusted EBITDA is defined as earnings before interest, income taxes, depreciation and amortization, adjusted for certain items that affect comparability from period to period. These adjustments include acquisition and integration-related expenses, certain costs related to the KMG-Bernuth warehouse fire, net of insurance recovery, the impact of fair value adjustments to inventory acquired from KMG, impairment charges, net restructuring charges related to the wood treatment business, a charge for an environmental accrual and costs related to the Pandemic, net of grants received. We exclude these items from earnings when presenting adjusted EBITDA because we believe they are not indicative of a segment’s regular, ongoing operating performance. Adjusted EBITDA is also the basis of a performance metric for our fiscal 2021 Short-Term Incentive Program. In addition, our chief operating decision maker does not use assets by segment to evaluate performance or allocate resources, and therefore, we do not disclose assets by segment.
The two segments operate independently and serve different markets and customers, as a result there are no sales between segments. Revenue from external customers by segment are as follows:
Year Ended September 30,
202120202019
Segment Revenue:
Electronic Materials:
CMP slurries$546,959 $480,617 $460,053 
Electronic chemicals330,761 316,253 278,413 
CMP pads95,335 85,954 94,585 
Materials technologies11,657 — — 
Total Electronic Materials$984,712 $882,824 $833,051 
Performance Materials:
PIM$106,810 $141,503 $140,553 
Wood treatment73,188 62,655 31,898 
QED35,121 29,288 32,194 
Total Performance Materials$215,119 $233,446 $204,645 
Total$1,199,831 $1,116,270 $1,037,696 
Capital expenditures by segment are as follows:
Year Ended September 30,
202120202019
Capital Expenditures:
Electronic Materials$28,272 $26,536 $40,166 
Performance Materials4,094 84,634 16,367 
Corporate 9,381 11,344 5,663 
Total$41,747 $122,514 $62,196 
Adjusted EBITDA by segment is as follows:
Year Ended September 30,
202120202019
Net (loss) income$(68,577)$142,828 $39,215 
Interest expense, net38,360 41,840 43,335 
Income taxes13,783 30,519 23,891 
Depreciation and amortization132,170 127,737 98,592 
EBITDA115,736 342,924 205,033 
Impairment charges230,392 2,314 67,372 
Acquisition and integration-related expense10,115 10,852 34,709 
Environmental accrual2,508 — — 
Costs related to KMG-Bernuth warehouse fire, net of insurance recovery(1,050)1,083 9,905 
Costs related to the Pandemic, net of grants received489 849 — 
Charge for fair value write-up of acquired inventory sold— — 14,869 
Net costs related to restructuring of the wood treatment business123 (221)1,530 
Consolidated adjusted EBITDA$358,313 $357,801 $333,418 
Segment adjusted EBITDA:
Electronic Materials$323,827 $299,037 $294,902 
Performance Materials87,961 106,797 91,372 
Unallocated corporate expenses(53,475)(48,033)(52,856)
Consolidated adjusted EBITDA$358,313 $357,801 $333,418 
The unallocated portions of corporate functions, including finance, legal, human resources, information technology, and corporate development, are not directly attributable to a reportable segment.