Note 19 - Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

19. SEGMENT INFORMATION

The Company’s operations are organized into three reportable segments: Performance Materials, Graphic Solutions and AgroSolutions. The segments represent businesses for which separate financial information is utilized by the chief operating decision maker, or CODM, for purpose of allocating resources and evaluating performance. Each of the reportable segments has its own president who report to the CODM.

The Performance Materials segment manufactures and markets dynamic chemistry solutions that are used in the electronics, automotive and oil and gas production and drilling industries. We operate in the Americas, Asia and Europe. In conjunction with the sale of our products, we provide extensive technical service and support to ensure superior performance of their application. Within this segment, the Company provides specialty chemicals to three industries; Electronics, Industrial and Offshore. For the electronics industry, we design and formulate a complete line of proprietary “wet” dynamic chemistries that our customers use to process the surface of the printed circuit boards and other electronic components they manufacture. For the industrials, our dynamic chemistries are used for finishing, cleaning and providing surface coatings for a broad range of metal and non-metal surfaces which improve the performance or look of a component of an industrial part or process. For the offshore industry, we produce water-based hydraulic control fluids for major oil companies and drilling contractors for offshore deep water production and drilling applications.

The Graphic Solutions segment primarily produces and markets photopolymers through an extensive line of flexographic plates that are used in the commercial packaging and printing industries. Our products are used to improve print quality and printing productivity. We manufacture photopolymers used to produce printing plates for transferring images onto commercial packaging, including packaging for consumer food products, pet food bags, corrugated boxes, labels and beverage containers. In addition, we also produce photopolymer printing plates for the flexographic and letterpress newspaper and publications markets.

The AgroSolutions segment is based on a solutions-oriented business model that focuses on product innovation to address an ever-increasing need for higher crop yield and quality. This operating segment was created during the fourth quarter of 2014 to manage our newly acquired agrochemical vertical, which now includes Agriphar’s and CAS’ complementary businesses, as well as the recently acquired Arysta’s business. We offer a wide variety of proven plant health and pest control products to growers, which are comprised of specific target applications in the following major product lines: adjuvants; fungicides; herbicides; home applications (home and garden and ectoparasiticides); honey bee health; insecticides; miticides; plant growth regulators; and seed treatments. Our product portfolio also includes biosolutions (biostimulants, innovative nutrition and biocontrol), and regional off-patent AIs that complement our principal product lines.

The Company evaluates the performance of its operating segments based on net sales and adjusted EBITDA. Adjusted EBITDA for each segment is calculated by taking net income and adding back interest expense, income tax expense (benefit), depreciation expense and amortization expense. This amount is further adjusted for acquisition-related expenses. Adjusted EBITDA for each segment also includes an allocation of corporate costs such as corporate salary, wages, equity compensation expense and legal costs.

Segment assets primarily include cash, receivables, inventories, prepaid expenses and other current assets, property, plant and equipment, goodwill, intangible assets, deferred taxes and other long term assets. Segment assets primarily exclude corporate assets, which consist of cash and cash equivalents, corporate property, plant and equipment, and deferred taxes.

The following table summarizes financial information regarding each reportable segment’s results of operations for the periods presented:

	For the year ended December 31, 2014		For the period from inception (April 23, 2013) through December 31, 2013		For the ten months ended October 31, 2013		For the year ended December 31, 2012
	(Successor)		(Successor)		(Predecessor)		(Predecessor)
Net Sales:
Performance Materials	$	589.3	$	92.6	$	481.8	$	559.5
Graphic Solutions		165.9		25.6		145.9		171.7
AgroSolutions		88.0		-		-		-
Consolidated net sales		843.2		118.2		627.7		731.2
Depreciation and amortization:
Performance Materials		55.0		9.7		26.5		34.0
Graphic Solutions		21.3		3.1		6.3		8.2
AgroSolutions		11.7		-		-		-
Consolidated depreciation and amortization		88.0		12.8		32.8		42.2
Adjusted EBITDA
Performance Materials		148.7		21.6		115.0		118.6
Graphic Solutions		47.5		5.8		37.7		43.6
AgroSolutions		16.0		-		-		-
Adjusted EBITDA	$	212.2	$	27.4	$	152.7	$	162.2

The following table reconciles Net (loss) income attributable to common shareholders to Adjusted EBITDA:

(in $ millions)	For the year ended December 31, 2014			For the period from inception (April 23, 2013) through December 31, 2013			For the ten months ended October 31, 2013			For the year ended December 31, 2012
	Successor			Successor			Predecessor			Predecessor
Adjusted EBITDA	$	212.2		$	27.4		$	152.7		$	162.2
Adjustments to reconcile net (loss) income:
Income tax benefit (provision)		6.7			5.8			(13.0	)		(24.7	)
Interest expense		(38.7	)		(5.5	)		(46.3	)		(49.7	)
Depreciation and amortization expense		(88.0	)		(12.8	)		(32.8	)		(42.2	)
Non-cash charges related to preferred dividend rights		-			(172.0	)		-			-
Equity based compensation		(1.3	)		(0.5	)		(9.3	)		(0.2	)
Restructuring and related expenses		(3.0	)		(3.5	)		(4.5	)		(1.2	)
Manufacturer's profit in inventory adjustment		(35.5	)		(23.9	)		-			-
Non-cash fair value adjustment to contingent consideration		(29.1	)		0.7			-			-
Acquisition transaction costs		(47.8	)		(15.2	)		(16.9	)		-
Debt extinguishment		-			-			(18.8	)		-
Other (expense) income		(5.4	)		5.3			2.1			1.8
Net (loss) income attributable to common shareholders	$	(29.9	)	$	(194.2	)	$	13.2		$	46.0

The following tables provide information for those countries that represent 10% or more of net sales and long-lived assets:

	For the year ended December 31, 2014		For the period from inception (April 23, 2013) through December 31, 2013		For the ten months ended October 31, 2013		For the year ended December 31, 2012
	(Successor)		(Successor)		(Predecessor)		(Predecessor)
Net Sales*:
United States	$	217.4		31.5	$	176.4	$	205.6
Foreign Net Sales:
United Kingdom		119.1		17.8		93.4		115.2
China		87.8		13.5		64.2		66.3
Other countries		418.9		55.4		293.7		344.1
Total Foreign Net Sales		625.8		86.7		451.3		525.6
Total consolidated net sales	$	843.2	$	118.2	$	627.7	$	731.2

* Net sales are attributed to countries based on the country which generates the sale.

	December 31, 2014
Long lived assets, net (1)
United States	$	64.8
Foreign countries
Belgium		28.9
United Kingdom		28.0
Other countries		53.3
		110.2
Total long lived assets, net	$	175.0

	December 31, 2013
United States	$	56.5
Foreign countries
United Kingdom		30.0
China		17.4
Italy		13.8
Other countries		18.5
		79.7
Total long lived assets, net	$	136.2

(1)Long-lived assets represent property, plant and equipment, net.

Total assets by reportable segment as of December 31, 2014 and 2013 are not presented as they not utilized by the CODM for purpose of allocating resources and evaluating performance.

The following table shows the Company's external party sales by product for the periods presented:

	For the year ended December 31, 2014		For the period from inception (April 23, 2013) through December 31, 2013		For the ten months ended October 31, 2013		For the year ended December 31, 2012
	(Successor)		(Successor)		(Predecessor)		(Predecessor)
Performance Materials
Industrial Group	$	429.4	$	67.7	$	353.4	$	411.1
Electronics Group		159.9		24.9		128.4		148.4
		589.3		92.6		481.8		559.5
Graphic Solutions		165.9		25.6		145.9		171.7
AgroSolutions		88.0		-		-		-
Total consolidated net sales	$	843.2	$	118.2	$	627.7	$	731.2