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Segment Reporting
 6 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting
16. 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, CMP pads, electronic chemicals, and materials technologies businesses.
PERFORMANCE MATERIALS
Performance Materials consists of our PIM, wood treatment, and QED businesses.
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 impairment charges, Entegris Transaction-related expenses, Future Forward-related expenses, acquisition and integration-related expenses, net costs related to restructuring of the wood treatment business, costs related to the Pandemic, net of grants received, and costs related to the KMG-Bernuth warehouse fire, net of recoveries. 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 a performance metric for our fiscal 2022 Short-Term Incentive Program (“STIP”). 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:
Three Months Ended March 31,Six Months Ended March 31,
2022202120222021
Electronic Materials:
CMP slurries$146,540 $140,194 $292,681 $274,915 
Electronic chemicals95,111 80,098 186,250 160,104 
CMP pads26,815 22,255 50,854 44,326 
Materials technologies6,045 — 12,377 — 
Total Electronic Materials274,511 242,547 542,162 479,345 
Performance Materials:
PIM30,394 25,987 57,029 51,894 
Wood treatment10,907 15,546 25,865 32,869 
QED8,315 6,448 16,117 14,283 
Total Performance Materials49,616 47,981 99,011 99,046 
Total$324,127 $290,528 $641,173 $578,391 
Capital expenditures by segment are as follows:
Three Months Ended March 31,Six Months Ended March 31,
2022202120222021
Electronic Materials$6,229 $6,258 $13,365 $11,692 
Performance Materials419 957 2,029 2,267 
Corporate3,289 2,500 5,083 5,975 
Total$9,938 $9,715 $20,478 $19,934 
Adjusted EBITDA by segment is as follows:
Three Months Ended March 31,Six Months Ended March 31,
2022202120222021
Net income (loss)$34,571 $(149,808)$61,999 $(118,278)
Interest expense, net9,537 9,495 19,280 19,080 
Provision for (benefit from) income taxes10,979 (16,109)14,196 (8,563)
Depreciation and amortization32,762 32,289 65,464 64,180 
EBITDA87,849 (124,133)160,939 (43,581)
Entegris Transaction-related expenses12,243 — 18,293 — 
Impairment charges— 208,221 9,435 215,568 
Future Forward-related expenses45 — 3,024 — 
Net costs related to restructuring of the wood treatment business219 46 245 72 
Costs related to the Pandemic, net of grants received— (421)— 841 
Acquisition and integration-related expenses(540)2,167 (233)4,536 
Costs related to KMG-Bernuth warehouse fire, net of recoveries(3,500)(1,076)(3,500)(1,076)
Consolidated adjusted EBITDA$96,316 $84,804 $188,203 $176,360 
Segment adjusted EBITDA:
Electronic Materials$93,957 $81,315 $182,039 $162,071 
Performance Materials13,901 18,750 28,902 41,725 
Unallocated corporate expenses(11,542)(15,261)(22,738)(27,436)
Consolidated adjusted EBITDA$96,316 $84,804 $188,203 $176,360 
The unallocated portions of corporate functions, including finance, legal, human resources, information technology, and corporate development, are not directly attributable to a reportable segment.