ADDED
Segment adjusted EBITDA is the measure that our chief operating decision maker ( CODM ), who has been determined to be our Chief Executive Officer, uses to make decisions about resources to be allocated to the segments and assess their financial performance.
Our CODM evaluates segment adjusted EBITDA through the annual budget process as well as through ongoing periodic reviews of forecasts, budget-to-actual variances, changes from prior periods and when comparing the results of each reportable operating segment with one another.
Total operating lease expense includes short-term lease expense of approximately $1 million, $1 million and $3 million for the years ended December 31, 2023, 2022 and 2021, respectively.
Amounts contain approximately nil, nil and $1 million of prior service credit and actuarial loss related to discontinued operations for the years ended December 31, 2025, 2024 and 2023, respectively.
Other segment items include other operating and non-operating income and expense items and foreign currency exchange effects, less adjustments to remove the related effects of primarily the following items: business acquisition and integration gain (expenses) and purchase accounting inventory adjustments, net; certain legal and other settlements and related income (expenses), net; amortization of pension and postretirement actuarial losses; loss on sale of business/assets; and restructuring, impairment and plant closing and transition costs.
As of December 31, 2025, a total of 175,238 restricted stock units were vested but not yet issued, of which 38,868 vested during 2025.
Certain legal and other settlements and related income (expenses), net includes approximately $33 million for income associated with a litigation matter during the year ended December 31, 2025 (see Note 21.
Commitments and Contingencies Legal Matters to our consolidated financial statements) and approximately $(10) million related to the settlement of a claim in connection with a commercial dispute during the year ended December 31, 2024.
Our state tax benefit, net of federal effect is zero due to a mix of jurisdictions with and without valuation allowances and other impacts.
However, the jurisdictions that make up the majority (greater than 50%) of our composite state tax (apportioned tax-effected pre-tax loss) used in computing the state tax provision are Illinois, Georgia, Minnesota, Wisconsin, Michigan, South Carolina, California, Indiana and Pennsylvania.
REMOVED
Other segment items include other operating and non-operating income and expense items and foreign currency exchange effects.
A total of 191,959 performance share unit awards with a grant date fair value of $45.04 that were included in the December 31, 2023 nonvested balance did not meet the minimum performance criteria of these awards and were effectively forfeited during the first quarter of 2024.
Amounts are net of tax of $91 million and $55 million as of December 31, 2023 and January 1, 2023, respectively.
Certain legal and other settlements and related expenses for the year ended December 31, 2024 includes approximately $10 million related to the settlement of a claim in connection with a commercial dispute.
The representative interest rate as of December 31, 2024 was 1.475% above Term SOFR.
As of December 31, 2024, a total of 136,370 restricted stock units were vested but not yet issued, of which 20,685 vested during 2024.
Amounts contain approximately nil, $1 million and $11 million of prior service credit and actuarial loss related to discontinued operations for the years ended December 31, 2024, 2023 and 2022, respectively.
We use segment adjusted EBITDA as the measure of each segment s profit or loss.
We believe that segment adjusted EBITDA more accurately reflects what our CODM uses to make decisions about resources to be allocated to the segments and assess their financial performance.
Our CODM is the senior executive committee that includes our Chief Executive Officer and our Chief Financial Officer.