Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

The Company's operations are organized into two reportable segments: Electronics and Industrial & Specialty. These segments represent businesses for which separate financial information is utilized by the chief operating decision maker (or CODM) for purposes of allocating resources and evaluating performance.

The Company allocates resources and evaluates the performance of its operating segments based primarily on net sales and Adjusted EBITDA. Adjusted EBITDA for each segment is defined as EBITDA, as further adjusted for additional items included in earnings which the Company believes are not representative or indicative of each of its segments' ongoing business or are considered to be associated with its capital structure. Adjusted EBITDA for each segment also includes an allocation of corporate costs, such as compensation expense and professional fees.

ELEMENT SOLUTIONS INC AND SUBSIDIARIES

Notes to the Condensed Consolidated Financial Statements

(Unaudited)

Results of Operations

The following table summarizes financial information regarding each reportable segment’s results of operations, including disaggregated external net sales by product category:

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2021		2020		2021		2020
Net sales:
Electronics
Assembly Solutions	$	205.1	$	112.2	$	394.1	$	238.2
Circuitry Solutions	111.5		92.8		219.8		185.7
Semiconductor Solutions	65.3		48.2		121.5		98.2
Total Electronics	381.9		253.2		735.4		522.1
Industrial & Specialty
Industrial Solutions	148.2		83.6		294.5		209.5
Graphics Solutions	40.0		34.6		74.7		73.2
Energy Solutions	16.5		15.6		32.1		34.8
Total Industrial & Specialty	204.7		133.8		401.3		317.5
Total net sales	$	586.6	$	387.0	$	1,136.7	$	839.6
Adjusted EBITDA:
Electronics	$	90.7	$	58.0	$	183.2	$	124.5
Industrial & Specialty	42.4		26.8		87.8		70.4
Total Adjusted EBITDA	$	133.1	$	84.8	$	271.0	$	194.9

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

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in millions)	2021		2020		2021		2020
Net income attributable to common stockholders	$	81.1	$	1.2	$	163.4	$	9.8
Add (subtract):
(Income) loss from discontinued operations, net of tax	(2.0)		1.1		(2.0)		0.9
Income tax (benefit) expense	(31.9)		5.8		(0.8)		9.9
Interest expense, net	12.9		16.9		25.8		33.6
Depreciation expense	9.7		10.5		19.1		21.0
Amortization expense	30.4		28.9		60.1		58.3
EBITDA	100.2		64.4		265.6		133.5
Adjustments to reconcile to Adjusted EBITDA:
Amortization of inventory step-up	2.2		—		2.2		1.4
Restructuring expense	1.6		3.3		3.9		4.3
Acquisition and integration expense	5.9		1.3		3.2		7.9
Foreign exchange loss (gain) on internal debt	4.6		11.8		(23.4)		40.9
Adjustment of stock compensation previously not probable (Note 8)	13.6		—		13.6		—
Other, net	5.0		4.0		5.9		6.9
Adjusted EBITDA	$	133.1	$	84.8	$	271.0	$	194.9