Segment and Geographic Data

9 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Segment and Geographic Data

Segment and Geographic Data

The Company operates through three lines of business, or operating segments: Chemicals, Plastics and Environmental Services, that market to different sets of customers operating in an array of industries, with various end markets and customer segments within those industries. For segment presentation and disclosure purposes, the Chemicals and Plastics lines of business constitute separate reportable segments while the Environmental Services line of business, which does not meet the materiality threshold for separate disclosure and the historical composites products sales in Asia are combined in an “Other” segment.

Each line of business represents unique products and suppliers, and each line of business focuses on specific end markets within its industry based on a variety of factors, including supplier or customer opportunities, expected growth and prevailing economic conditions. Across the Chemicals and Plastics lines of business there are numerous industry segments, end markets and sub markets that the Company may choose to focus on. These end markets may change from year to year depending on the underlying market economics, supplier focus, expected profitability and the Company’s strategic agenda.

The Chemicals, Plastics and Environmental Services lines of business compete with national, regional and local companies throughout North America. Additionally, the Chemicals and Plastics lines of business compete with other distribution companies in Asia. The Plastics line of business also competes with other distribution companies in EMEA. Competition within each line of business is based primarily on the diversity of the product portfolio, service offerings, reliability of supply, technical support and price. The accounting policies used to account for transactions in each of the lines of business are the same as those used to account for transactions at the corporate level.

The Chemicals and Plastics lines of business are distribution businesses, while the Environmental Services line of business provides hazardous and non-hazardous waste collection, recovery, recycling and arrangement for disposal services.

A brief description of each line of business follows:

Chemicals. The Chemicals line of business distributes specialty and industrial chemicals, additives and solvents to industrial users via rail cars, bulk tanker trucks and as packaged goods in trucks. The Company’s chemical products are distributed in more than 50 countries worldwide, primarily in North America and Asia. In connection with the distribution of chemicals products, the Company provides value-added services such as custom blending, packaging and re-packaging, private-label manufacturing and product testing in the form of chemical analysis, product performance analysis and product development. While the Chemicals line of business serves multiple end markets, key end markets within the industrial space including household, industrial and institutional, performance coatings (including architectural coatings, adhesives, sealants and elastomers), lubricants, oil and gas and personal care.

Plastics. The Plastics line of business distributes a broad product line consisting of commodity polymer products and prime engineering resins to plastics processors engaged in blow molding, extrusion, injection molding and rotation molding via rail car, bulk truck, truckload boxes and less-than truckload quantities. The Company’s plastics products are distributed in more than 50 countries worldwide, primarily in North America, EMEA and Asia. The Plastics line of business serves a broad cross section of industrial segments, with a current focus on the healthcare and automotive end markets.

Other. The Environmental Services line of business, in connection with certain waste disposal service companies, provides customers with comprehensive hazardous and non-hazardous waste collection, recovery and arrangement for disposal services or recycling in North America, primarily in the U.S. These environmental services are offered through the Company’s network of distribution facilities which are used as transfer facilities. The Other segment also includes historical composites products sales in Asia.

The Chief Executive Officer is the Chief Operating Decision Maker. The Chief Operating Decision Maker reviews operating results in order to make decisions, assess performance and allocate resources to each line of business. In order to maintain the focus on line of business performance, certain expenses are excluded from the line of business results utilized by the Company’s Chief Operating Decision Maker in evaluating line of business performance. These expenses include depreciation and amortization, selling, general and administrative expense, corporate items such as transaction related costs, interest and income tax expense. These items are separately delineated to reconcile to reported net income. Intersegment revenues were insignificant.

Certain assets are aggregated at the line of business level. The assets attributable to the Company’s lines of business, that are reviewed by the Chief Operating Decision Maker, consist of trade accounts receivable, inventories, goodwill and any specific assets that are otherwise directly associated with a line of business. The Company’s inventory of packaging materials and containers are generally not allocated to a line of business and are included in unallocated assets.

Summarized financial information relating to the Company’s lines of business is as follows. The Successor periods in the summarized financial information for the three and nine months ended June 30, 2016 includes 22 days (June 9, 2016 through June 30, 2016) of the combined operating results, as well as the full three and nine months ended June 30, 2016 of WLRH’s operating results, which consisted primarily of transaction related costs.

	Successor						Predecessor
	Three Months Ended   June 30, 2016			Nine Months Ended   June 30, 2016			April 1 Through June 8, 2016			October 1, 2015 Through June 8, 2016			Three Months Ended June 30, 2015			Nine Months Ended June 30, 2015
Sales and operating revenues
Chemicals	$	94.2		$	94.2		$	298.7		$	1,066.4		$	482.6		$	1,503.9
Plastics	109.9			109.9			329.8			1,192.2			477.4			1,429.6
Other	10.2			10.2			21.7			81.5			28.8			85.8
Total sales and operating revenues	$	214.3		$	214.3		$	650.2		$	2,340.1		$	988.8		$	3,019.3
Gross profit
Chemicals	$	9.6		$	9.6		$	38.8		$	136.2		$	59.9		$	168.1
Plastics	6.7			6.7			32.2			117.6			44.8			113.3
Other	2.5			2.5			4.4			18.1			6.6			21.1
Total gross profit	$	18.8		$	18.8		$	75.4		$	271.9		$	111.3		$	302.5
Selling, general & administrative expenses	$	19.1		$	19.2		$	57.5		$	208.9		$	82.9		$	248.5
Transaction related costs	15.9			18.0			26.1			33.4			—			0.1
Change in fair value related to contingent consideration	(2.3		)	(2.3		)	—			—			—			—
Total operating income (loss)	(13.9		)	(16.1		)	(8.2		)	29.6			28.4			53.9
Other income	—			—			0.3			2.9			8.4			9.1
Interest income (expense)
Interest income	0.3			0.9			—			0.1			—			0.1
Interest expense	(3.2		)	(3.2		)	(11.2		)	(42.3		)	(16.2		)	(48.9		)
Income (loss) from continuing operations before income taxes	$	(16.8	)	$	(18.4	)	$	(19.1	)	$	(9.7	)	$	20.6		$	14.2

	Successor		Predecessor
	June 30, 2016		September 30, 2015
IDENTIFIABLE ASSETS
Chemicals	$	667.2	$	696.9
Plastics	726.9		530.2
Other	91.3		35.1
Total identifiable assets by segment	1,485.4		1,262.2
Unallocated assets	632.6		446.7
Total assets	$	2,118.0	$	1,708.9

Goodwill amounts by reportable segment at June 30, 2016 are based on the preliminary purchase consideration allocation of the Business Combination, which is based on preliminary valuations performed to determine the fair value of the acquired assets and assumed liabilities as of the Closing Date. Accordingly, the amounts allocated to goodwill are subject to adjustments that could have a material impact on total goodwill and goodwill by reportable segment. See Note 3.

Revenues by geographic location, based on the jurisdiction of the subsidiary entity receiving revenue credit for the sale, are presented below:

	Successor				Predecessor
	Three Months Ended   June 30, 2016		Nine Months Ended   June 30, 2016		April 1 Through June 8, 2016		October 1, 2015 Through June 8, 2016		Three Months Ended   June 30, 2015		Nine Months Ended June 30, 2015
North America	$	174.4	$	174.4	$	535.9	$	1,917.2	$	816.2	$	2,507.5
EMEA	29.3		29.3		78.8		291.9		129.7		374.1
Asia	10.6		10.6		35.5		131.0		42.9		137.7
Total	$	214.3	$	214.3	$	650.2	$	2,340.1	$	988.8	$	3,019.3