| 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 earnings before interest, taxes, depreciation and amortization, as further adjusted for additional items included in GAAP 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.
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:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
| (dollars in millions) |
2020 |
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2019 |
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2020 |
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2019 |
| Net sales: |
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| Electronics |
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| Assembly Solutions |
$ |
155.0 |
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$ |
137.3 |
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$ |
393.2 |
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$ |
407.7 |
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| Circuitry Solutions |
101.0 |
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102.4 |
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286.7 |
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285.4 |
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| Semiconductor Solutions |
50.8 |
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40.3 |
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149.0 |
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120.7 |
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| Total Electronics |
306.8 |
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280.0 |
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828.9 |
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813.8 |
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| Industrial & Specialty |
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| Industrial Solutions |
121.0 |
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125.5 |
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330.5 |
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396.0 |
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| Graphics Solutions |
33.6 |
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40.1 |
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106.8 |
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113.1 |
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| Energy Solutions |
16.1 |
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19.1 |
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50.9 |
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58.3 |
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| Total Industrial & Specialty |
170.7 |
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184.7 |
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488.2 |
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567.4 |
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| Total net sales |
$ |
477.5 |
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$ |
464.7 |
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$ |
1,317.1 |
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$ |
1,381.2 |
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| Adjusted EBITDA: |
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| Electronics |
$ |
72.0 |
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$ |
73.6 |
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$ |
196.5 |
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$ |
190.4 |
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| Industrial & Specialty |
29.8 |
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41.8 |
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100.2 |
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124.1 |
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| Total Adjusted EBITDA |
$ |
101.8 |
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$ |
115.4 |
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$ |
296.7 |
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$ |
314.5 |
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The following table reconciles "Net income (loss) attributable to common stockholders" to Adjusted EBITDA:
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Three Months Ended September 30, |
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Nine Months Ended September 30, |
| (dollars in millions) |
2020 |
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2019 |
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2020 |
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2019 |
| Net income (loss) attributable to common stockholders |
$ |
36.0 |
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$ |
(6.9) |
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$ |
45.8 |
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$ |
17.8 |
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| Add (subtract): |
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| Net income attributable to the non-controlling interests |
— |
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— |
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— |
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0.6 |
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| Loss (income) from discontinued operations, net of tax |
0.2 |
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0.9 |
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1.1 |
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(13.2) |
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| Income tax (benefit) expense |
(47.3) |
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57.2 |
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(37.4) |
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40.0 |
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| Interest expense, net |
17.1 |
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17.4 |
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50.7 |
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73.7 |
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| Depreciation expense |
10.7 |
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10.1 |
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31.7 |
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30.8 |
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| Amortization expense |
30.5 |
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28.1 |
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88.8 |
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84.9 |
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| EBITDA |
47.2 |
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106.8 |
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180.7 |
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234.6 |
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| Adjustments to reconcile to Adjusted EBITDA: |
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| Amortization of inventory step-up |
1.0 |
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— |
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2.4 |
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— |
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| Restructuring expense |
1.3 |
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6.8 |
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5.6 |
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12.6 |
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| Acquisition and integration costs |
0.4 |
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0.8 |
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8.3 |
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2.5 |
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| Foreign exchange loss on foreign denominated external and internal long-term debt |
2.3 |
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1.1 |
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43.2 |
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1.5 |
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| Debt refinancing costs |
45.7 |
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— |
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45.7 |
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61.0 |
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| Change in fair value of contingent consideration |
— |
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0.5 |
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— |
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3.4 |
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| Other, net |
3.9 |
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(0.6) |
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10.8 |
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(1.1) |
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| Adjusted EBITDA |
$ |
101.8 |
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$ |
115.4 |
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$ |
296.7 |
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$ |
314.5 |
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