LSB INDUSTRIES, INC. Segments Disclosure
15. Segment
We are engaged in the manufacture and sale of nitrogen based chemical products. We manufacture and distribute products in four facilities; three of which we own and one of which we operate on behalf of a third party. Please see “Nature of business” in Note 1-Summary of Significant Accounting Policies for a description of our products and customers.
The Company is managed on a consolidated basis with a reportable segment, chemical manufacturing, which is not an aggregation of individual operating segments. Our segment determination is based primarily on our approach in allocating resources, which is driven by the objective of maximizing profit to the consolidated entity. We do not have business activities outside of our single reportable segment. Hence, we manage our entire company on the same basis as our single reportable segment.
Our measure of segment profit that is most consistent with U.S. GAAP measurement principles is consolidated net income, which our CODM uses to assess performance and allocate resources. The accounting policies for our single reportable segment are the same as those for the Company as a whole, which are described in “Note 1 – Summary of Significant Accounting Policies”.
The CODM uses the segment profit measure to assess actual versus forecasted performance, determine incentive compensation, evaluate growth opportunities and to make decisions such as whether and when to invest profits back into the business.
Information about reported segment revenue, measures of a segment’s profit or loss, significant segment expenses, and measure of a segment's assets:
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
|
|
(In Thousands) |
|
|||||||||
Net sales |
|
$ |
615,208 |
|
|
$ |
522,400 |
|
|
$ |
593,709 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||
Cost of sales excluding depreciation, amortization |
|
|
423,125 |
|
|
|
362,562 |
|
|
|
436,634 |
|
Depreciation and amortization |
|
|
81,623 |
|
|
|
74,260 |
|
|
|
68,385 |
|
Turnaround expense |
|
|
6,158 |
|
|
|
37,781 |
|
|
|
2,430 |
|
Total cost of sales |
|
|
510,906 |
|
|
|
474,603 |
|
|
|
507,449 |
|
Selling, general and administrative |
|
|
|
|
|
|
|
|
|
|||
Wages and benefits |
|
|
25,627 |
|
|
|
23,191 |
|
|
|
20,403 |
|
Other selling general and administrative |
|
|
15,880 |
|
|
|
18,576 |
|
|
|
16,177 |
|
Total selling general and administrative |
|
|
41,507 |
|
|
|
41,767 |
|
|
|
36,580 |
|
Interest expense |
|
|
30,657 |
|
|
|
34,452 |
|
|
|
41,136 |
|
Loss (gain) on extinguishments of debt |
|
|
52 |
|
|
|
(3,013 |
) |
|
|
(8,644 |
) |
Loss from asset write-down and disposals |
|
|
6,434 |
|
|
|
11,703 |
|
|
|
3,613 |
|
Income tax provision (benefit) |
|
|
7,936 |
|
|
|
(6,684 |
) |
|
|
5,973 |
|
Other segment items (a) |
|
|
(6,897 |
) |
|
|
(11,075 |
) |
|
|
(20,321 |
) |
Segment net income (loss) |
|
|
24,613 |
|
|
|
(19,353 |
) |
|
|
27,923 |
|
|
|
|
|
|
|
|
|
|
|
|||
Reconciliation of profit or loss |
|
|
|
|
|
|
|
|
|
|||
Adjustments and reconciling items |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Consolidated net income (loss) |
|
$ |
24,613 |
|
|
$ |
(19,353 |
) |
|
$ |
27,923 |
|
_____________________________
(a) For the periods presented, amount consisted primarily of interest and sublease income.
The measure of our chemical business assets is reported on the balance sheet as total consolidated assets.
All our long-lived assets are located in the United States and substantially all net sales are to customers in the United States.
In each of 2025, 2024 and 2023 we had one customer whose net sales accounted for more than 10% of our total net sales. Net sales to this customer were 12%, 16% and 14% of total net sales, in 2025, 2024 and 2023, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2015 | Feb 29, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.