Segment Reporting and Geographic Information

12 Months Ended

Dec. 31, 2019

Segment Reporting and Geographic Information

The Company has the following operating segments: Performance Alloys and Composites, Advanced Materials, Precision Coatings, and Other. The Company’s operating segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer, the Company's Chief Operating Decision Maker, in determining how to allocate the Company’s resources and evaluate performance. The segments are determined based on several factors, including the availability of discrete financial information and the Company’s organizational and management structure.

Performance Alloys and Composites provides advanced engineered solutions comprised of beryllium and non-beryllium containing alloy systems and custom engineered parts in strip, bulk, rod, plate, bar, tube, and other customized shapes.

Advanced Materials produces advanced chemicals, microelectric packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal preforms, high temperature braze materials, and ultra-fine wire.

Precision Coatings produces thin film coatings, optical filter materials, sputter-coated, and precision-converted thin film materials.

The Other reportable segment includes unallocated corporate costs and assets.

Financial information for reportable segments was as follows:




(Thousands)	Performance Alloys and Composites		Advanced Materials		Precision Coatings			Other			Total
2019
Net sales	$	500,201	$	573,763	$	111,460		$	—		$	1,185,424
Intersegment sales	38		70,047		—			—			70,085
Operating profit (loss)	70,652		24,740		(3,550		)	(24,842		)	67,000
Depreciation, depletion, and amortization	24,437		8,955		5,695			2,029			41,116
Expenditures for long-lived assets	15,520		7,572		1,045			2,391			26,528
Total Assets	400,022		215,368		78,981			158,299			852,670
2018
Net sales	$	500,590	$	586,643	$	120,582		$	—		$	1,207,815
Intersegment sales	37		50,460		—			—			50,497
Operating profit (loss)	58,832		17,651		11,468			(26,455		)	61,496
Depreciation, depletion, and amortization	17,434		8,575		7,066			2,449			35,524
Expenditures for long-lived assets	15,396		15,523		1,983			1,358			34,260
Total Assets	410,239		207,183		90,537			92,382			800,341
2017
Net sales	$	429,442	$	590,789	$	119,216		$	—		$	1,139,447
Intersegment sales	114		58,056		—			—			58,170
Operating profit (loss)	21,978		32,763		8,445			(23,155		)	40,031
Depreciation, depletion, and amortization	23,209		7,354		9,721			2,467			42,751
Expenditures for long-lived assets	10,427		13,318		3,048			2,283			29,076
Total Assets	418,798		202,389		97,504			72,393			791,084

Intersegment sales are eliminated in consolidation.

The primary measures of evaluating segment performance are operating profit and net sales. From an assets perspective, segments are evaluated based upon a return on invested capital metric, which includes inventory (excluding the impact of LIFO), accounts receivable, and property, plant, and equipment.

Other geographic information includes the following:



(Thousands)	2019		2018		2017
Net sales
United States	$	743,345	$	726,881	$	650,675
Asia	256,114		270,672		265,991
Europe	169,132		186,081		205,118
All other	16,833		24,181		17,663
Total	$	1,185,424	$	1,207,815	$	1,139,447
Long-lived assets by country deployed
United States	$	194,596	$	215,395	$	227,412
All other	37,680		35,623		28,166
Total	$	232,276	$	251,018	$	255,578

International sales include sales from international operations and direct exports from our U.S. operations. No individual country, other than the United States, or customer accounted for 10% or more of the Company’s net sales for the years presented.

Long-lived assets are comprised of property, plant, and equipment based on physical location.

The following table disaggregates revenue for each segment by end market for 2019 and 2018:



(Thousands)	Performance Alloys and Composites		Advanced Materials		Precision Coatings		Other		Total
2019
End Market
Semiconductor	$	5,353	$	432,658	$	711	$	—	$	438,722
Industrial	106,334		29,917		14,253		—		150,504
Aerospace and Defense	109,717		5,647		20,731		—		136,095
Consumer Electronics	72,360		1,254		18,201		—		91,815
Automotive	69,057		8,179		969		—		78,205
Energy	41,101		74,613		—		—		115,714
Telecom and Data Center	61,344		2,981		—		—		64,325
Other	34,935		18,514		56,595		—		110,044
Total	$	500,201	$	573,763	$	111,460	$	—	$	1,185,424

2018
End Market
Semiconductor	$	5,020	$	436,807	$	1,460	$	—	$	443,287
Industrial	111,149		32,246		12,756		—		156,151
Aerospace and Defense	88,041		3,813		20,044		—		111,898
Consumer Electronics	62,816		1,002		18,838		—		82,656
Automotive	93,720		7,843		1,362		—		102,925
Energy	40,877		72,027		—		—		112,904
Telecom and Data Center	67,157		2,792		—		—		69,949
Other	31,810		30,113		66,122		—		128,045
Total	$	500,590	$	586,643	$	120,582	$	—	$	1,207,815