Operating Segment Information

9 Months Ended

Sep. 30, 2020

Note 14. Operating Segment Information

We derive our revenues, earnings and cash flows from the manufacture and sale of TiO2, functional additives, color pigments, timber treatment and water treatment chemicals. We have reported our operations through our two segments, Titanium Dioxide and Performance Additives, and organized our business and derived our operating segments around differences in product lines.

The major product groups of each reportable operating segment are as follows:


Segment						Product Group
Titanium Dioxide						titanium dioxide
Performance Additives						functional additives, color pigments, timber treatment and water treatment chemicals

Sales between segments are generally recognized at external market prices and are eliminated in consolidation. Adjusted EBITDA is presented as a measure of the financial performance of our global business units and for reporting the results of our operating segments. The revenues and adjusted EBITDA for each of the two reportable operating segments are as follows:


	Three months ended September 30,				Nine months ended September 30,
	2020		2019		2020		2019
Revenues:
Titanium Dioxide	$	343	$	396	$	1,083	$	1,260
Performance Additives	131		130		379		406
Total	$	474	$	526	$	1,462	$	1,666
Adjusted EBITDA(1)
Titanium Dioxide	$	21	$	51	$	102	$	167
Performance Additives	5		13		40		44
	26		64		142		211
Corporate and other	(9)		(14)		(31)		(40)
Total	17		50		111		171
Reconciliation of adjusted EBITDA to net (loss) income:
Interest expense	(18)		(13)		(46)		(40)
Interest income	3		3		9		9
Income tax expense	(3)		(8)		(3)		—
Depreciation and amortization	(29)		(27)		(85)		(82)
Net income attributable to noncontrolling interests	3		2		6		4
Other adjustments:
Business acquisition and integration expenses	—		(2)		(1)		(3)


Gain (loss) on disposition of business/assets	6		(1)		4		(1)
Certain legal expenses/settlements	—		(2)		(3)		(3)
Amortization of pension and postretirement actuarial losses	(3)		(3)		(10)		(11)
Net plant incident costs	(2)		(4)		(5)		(17)
Restructuring, impairment and plant closing and transition costs	(13)		(12)		(25)		(24)
Net (loss) income	$	(39)	$	(17)	$	(48)	$	3

(1)Adjusted EBITDA is defined as net income/loss of Venator before interest expense, interest income, income tax expense/benefit, depreciation and amortization and net income attributable to noncontrolling interests, as well as eliminating the following adjustments: (a) business acquisition and integration expenses/adjustments; (b) loss/gain on disposition of business/assets; (c) certain legal expenses/settlements; (d) amortization of pension and postretirement actuarial losses/gains; (e) net plant incident costs/credits; and (f) restructuring, impairment, and plant closing and transition costs/credits.