SEGMENT INFORMATION

The Company's operations are organized into two reportable segments: Performance Solutions and Agricultural Solutions. The reporting 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 reports to the CODM.

Performance Solutions – The Performance Solutions segment formulates and markets dynamic chemistry solutions that are used in automotive production, commercial packaging and printing, electronics, and oil and gas production and drilling. Its products include surface and coating materials, functional conversion coatings, electronics assembly materials, water-based hydraulic control fluids and photopolymers. Performance Solutions' products are sold worldwide. In conjunction with the sale of its products, extensive technical service and support is provided to ensure superior performance.

Within this segment, the Company provides specialty chemical solutions to the following five industries; Assembly Solutions, Electronics Solutions, Industrial Solutions, Graphic Solutions, and Offshore Solutions.



Assembly Solutions:		The segment develops, manufactures and sells innovative interconnected materials, primarily in the electronics market, used to assemble printed circuit boards and advanced semiconductor packaging.
Electronics Solutions:		The segment designs and formulates a complete line of proprietary “wet” dynamic chemistries used by customers to process the surface of the printed circuit boards and other electronic components they manufacture.
Industrial Solutions		The segment's 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.
Graphic Solutions:		The segment produces photopolymers, through an extensive line of flexographic plates, which are 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, the segment also produces photopolymer printing plates for the flexographic and letterpress newspaper and publications markets.
Offshore Solutions:		The segment produces water-based hydraulic control fluids for major oil and gas companies and drilling contractors for offshore deep water production and drilling applications.

Agricultural Solutions – The Agricultural Solutions 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. It offers to growers diverse crop-protection solutions from weeds (herbicides), insects (insecticides) and diseases (fungicides), in foliar and seed treatment applications. The segment also offers a wide variety of proven BioSolutions, including biostimulants, innovative nutrition and biocontrol products. It emphasizes farmer economics and food safety by combining, when possible, BioSolutions with crop protection and seed treatment agrochemicals.

With products to address every stage of the plant life-cycle, Agricultural Solutions aims to outperform the crop protection chemistry market by focusing on high-growth, high-value and high-differentiation (H³). In line with these objectives, in 2016, our Agricultural Solutions segment launched a "H³ Priority Segments" program, which focuses on five priority segments selected for their potential to deliver accelerated growth and sustained profitability due to their strong solutions orientation. The Company believes that each of these H³ Priority Segments is a high growth and high value segment that demonstrates a high potential for differentiation.

These H³Priority Segments consist of: Crop Establishment, Plant Stress and Stimulation, Resistant Weed Management, Specialty Protection Niches, and Crop Residue Management.



Crop Establishment:		Focuses on seed treatment and in-furrow applications to protect the crop in its early stages.
Plant Stress and Stimulation:		Helps the metabolism of the plant deal with abiotic stresses such as drought and cold, while stimulating it to enhance yields through the use of biostimulants and other solutions.
Resistant Weed Management:		Develops solutions to manage weed resistance of widely used herbicides such as glyphosate.
Specialty Protection Niches:		Creates solutions to fight against niche pests in underserved segments such as mites or bacteria.
Crop Residue Management:		Develops standalone biocontrol solutions or combinations of biocontrol with conventional crop protection to help growers to effectively manage residue levels in fruits & vegetables and address evolving food chain requirements.

Additionally, its Global Value Added Portfolio, or GVAP, consists of agrochemicals in the fungicides, herbicides, insecticides and seed treatment categories, based on patented or proprietary off-patent AIs. Its Global BioSolutions Portfolio, or GBP, includes biostimulants, innovative nutrition and biocontrol products. The segment considers its GVAP and GBP offerings to be key pillars for sustainable growth in the H³ Priority Segments. In addition, the segment offers regional off-patent AIs and certain non-crop products, including animal health products, such as honey bee protective miticides and certain veterinary.

Segment Performance

The Company evaluates the performance of its operating segments based on net sales and adjusted EBITDA. Adjusted EBITDA for each segment is defined as earnings before interest, taxes, depreciation, and amortization, as further adjusted for additional items included in earnings that are not representative or indicative of each segment's ongoing business. Adjusted EBITDA for each segment also includes an allocation of corporate costs, such as compensation expense and professional fees.

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



	Year Ended December 31,
(amounts in millions)	2016		2015		2014
Net Sales:
Performance Solutions	$	1,770.1	$	800.8	$	755.2
Agricultural Solutions	1,815.8		1,741.5		88.0
Consolidated net sales	$	3,585.9	$	2,542.3	$	843.2
Depreciation and amortization:
Performance Solutions	$	156.5	$	80.0	$	76.3
Agricultural Solutions	185.8		171.0		11.7
Consolidated depreciation and amortization	$	342.3	$	251.0	$	88.0
Adjusted EBITDA:
Performance Solutions	$	401.3	$	224.3	$	196.2
Agricultural Solutions	368.2		343.4		16.0
Consolidated adjusted EBITDA	$	769.5	$	567.7	$	212.2

The following table reconciles "Net loss attributable to common stockholders" to consolidated Adjusted EBITDA:



	Year Ended December 31,
(amounts in millions)	2016			2015			2014
Net loss attributable to common stockholders	$	(40.8	)	$	(308.6	)	$	(262.6	)
Gain on amendment of Series B Convertible Preferred Stock	(32.9		)	—			—
Stock dividend on Founder's preferred shares	—			—			232.7
Net income attributable to the non-controlling interests	(3.0		)	4.2			5.7
Income tax expense (benefit)	28.6			75.1			(6.7		)
Loss before income taxes and non-controlling interests	(48.1		)	(229.3		)	(30.9		)
Adjustments to reconcile to Adjusted EBITDA:
Interest expense, net	375.7			213.9			37.9
Depreciation expense	75.0			48.9			20.6
Amortization expense	267.3			202.1			67.4
Restructuring expense	31.1			25.3			3.0
Manufacturer's profit in inventory purchase accounting adjustments	11.7			76.5			35.5
Acquisition and integration costs	33.4			122.4			47.8
Non-cash change in fair value contingent consideration	5.1			6.8			29.1
Legal settlement	(2.8		)	(16.0		)	—
Foreign exchange loss on foreign denominated external and internal debt	33.9			46.4			1.1
Fair value loss on foreign exchange forward contract	—			73.7			(0.3		)
Goodwill impairment	46.6			—			—
Gain on settlement agreement related to Series B Convertible Preferred Stock	(103.0		)	—			—
Non-cash change in fair value of preferred stock redemption liability	5.0			—			—
Debt refinancing costs	19.7			—			—
Other expense (income), net	18.9			(3.0		)	1.0
Adjusted EBITDA	$	769.5		$	567.7		$	212.2

The following table sets forth the Company's total net sales by geographic area based on the country where sales were generated:



	Year Ended December 31,
(amounts in millions)	2016		2015		2014
United States	$	725.4	$	474.6	$	217.4
Foreign Net Sales:
Brazil	463.0		380.6		70.9
China	330.6		108.3		87.8
France	227.8		196.8		64.3
Germany	172.9		35.4		22.0
Japan	145.7		166.6		22.9
United Kingdom	145.5		127.3		119.1
Other countries	1,375.0		1,052.7		238.8
Total Foreign Net Sales	2,860.5		2,067.7		625.8
Total consolidated net sales	$	3,585.9	$	2,542.3	$	843.2

The following table provides the Company's total long-lived assets by geographic area:



	December 31,
(amounts in millions)	2016		2015
United States	$	137.4	$	138.3
Foreign countries
China	47.3		55.1
France	47.2		50.9
Brazil	36.9		28.7
Germany	30.0		33.0
United Kingdom	23.4		33.6
Other countries	138.3		152.0
Total foreign countries	323.1		353.3
Total long-lived assets, net⁽¹⁾	$	460.5	$	491.6

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

Total assets by reportable segment as of December 31, 2016 and 2015 are not presented as they are not utilized by the CODM for purposes of allocating resources and evaluating performance.

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



	Year Ended December 31,
(amounts in millions)	2016		2015		2014
Performance Solutions
Assembly Solutions	$	554.5	$	41.1	$	—
Electronics Solutions	525.9		198.8		159.9
Industrial Solutions	445.0		287.8		336.7
Graphic Solutions	171.8		173.9		165.9
Offshore Solutions	72.9		99.2		92.7
Performance Solutions sales	1,770.1		800.8		755.2
Agricultural Solutions ⁽¹⁾	1,815.8		1,741.5		88.0
Total consolidated net sales	$	3,585.9	$	2,542.3	$	843.2

⁽¹⁾ Agricultural Solutions product offerings are comprised of five major global product lines: fungicides and biofungicides; herbicides; insecticides, bioinsecticides and acaricides; biostimulants and innovative nutrition; and seed treatments. However, the segment manages and reports sales on a regional basis, making it impractical to present such data by product line.