Segments (Tables)

3 Months Ended

Mar. 31, 2023

Reconciliation of Segment Reporting to Consolidated


	Engineered		Latex		Plastics						Americas
Three Months Ended ⁽¹⁾	Materials		Binders		Solutions		Polystyrene		Feedstocks		Styrenics
March 31, 2023	$	(11.7)	$	26.0	$	25.6	$	15.7	$	(10.8)	$	17.6
March 31, 2022	$	34.7	$	30.2	$	68.6	$	45.3	$	4.1	$	21.6

(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
	March 31,
	2023		2022
Income (loss) from continuing operations before income taxes	$	(65.6)	$	39.7
Interest expense, net		38.3		21.9
Depreciation and amortization		56.0		53.0
Corporate Unallocated⁽²⁾		26.1		26.9
Adjusted EBITDA Addbacks⁽³⁾		7.6		63.0
Segment Adjusted EBITDA	$	62.4	$	204.5

(2)

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

(3)

Adjusted EBITDA addbacks for the three months ended March 31, 2023 and 2022 are as follows:


	Three Months Ended
	March 31,
	2023		2022
Net gain on disposition of businesses and assets	$	—	$	(0.3)
Restructuring and other charges (Note 17)		3.7		0.4
Acquisition transaction and integration net costs (Note 3)		—		3.2
Asset impairment charges or write-offs (Note 11)		0.3		0.7
European Commission request for information (Note 13)		—		35.6
Other items ^(a)		3.6		23.4
Total Adjusted EBITDA Addbacks	$	7.6	$	63.0

(a)

Other items for the three months ended March 31, 2023 and 2022 primarily relate to fees incurred in conjunction with certain of the Company’s strategic initiatives, as well as our transition to a new enterprise resource planning system.