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Segment Reporting
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
 
The Company changed two segment names during the first quarter of 2022: Performance Alloys and Composites became Performance Materials, and Advanced Materials became Electronic Materials. The Company believes these names better represent the markets served and the advanced next-generation product solutions provided to our customers. Other than the name changes, there were no changes in the composition or structure of the Company's reportable segments in the first half of 2022.

The Company has the following reportable segments: Performance Materials, Electronic Materials, Precision Optics, and Other. The Company’s reportable 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.

Performance Materials 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.

Electronic 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 Optics 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.

Beginning with the first quarter of 2022, the Company began using earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) as the main operating income metric used by management to measure the financial performance of the Company and each segment. The Company made this change because recent acquisitions have resulted in increased purchase accounting amortization expense, which in turn has affected the comparability of results across periods and when compared to other companies. Management believes EBITDA is useful to investors as it better represents the Company's performance, excluding the effect of the recent acquisition of significant intangible assets that are now being amortized. EBITDA is not a measurement of financial performance under U.S. GAAP. Although the Company uses EBITDA to assess the performance of its business and for various other purposes, the use of this non-GAAP financial measure as an analytical tool has limitations, and it should not be considered in isolation or as a substitute for analysis of the Company’s results of operations as reported in accordance with U.S. GAAP.

The below table presents financial information for each segment and a reconciliation of EBITDA to Net Income (the most directly comparable GAAP financial measure) for the third quarter of 2022 and 2021:

(Thousands)Third Quarter 2022Third Quarter 2021First Nine Months 2022First Nine Months 2021
Net sales:
Performance Materials(1)
$169,357 $136,096 $473,876 $375,533 
Electronic Materials(1)
230,841 220,723 762,649 638,481 
Precision Optics27,993 31,209 86,006 99,399 
Other— — — — 
Net sales428,191 388,028 1,322,531 1,113,413 
Segment EBITDA:
Performance Materials$28,866 $28,917 $80,886 $68,027 
Electronic Materials16,853 11,326 51,338 32,668 
Precision Optics3,546 6,228 9,281 19,246 
Other(5,839)(10,617)(18,206)(22,030)
Total Segment EBITDA43,426 35,854 123,299 97,911 
Income tax expense4,432 3,422 12,525 10,162 
Interest expense - net5,888 861 14,325 2,480 
Depreciation, depletion and amortization13,154 $13,415 $39,223 $32,478 
Net income$19,952 $18,156 $57,226 $52,791 

(1) Excludes inter-segment sales of $0.2 million for the third quarter of 2022 and $0.6 million for the first nine months of 2022 for Performance Materials and $3.8 million for the third quarter of 2022 and $12.1 million for the first nine months of 2022 for Electronic Materials. Inter-segment sales are eliminated in consolidation.
The following table disaggregates revenue for each segment by end market for the third quarter and first nine months of 2022 and 2021:
 (Thousands)Performance MaterialsElectronic MaterialsPrecision OpticsOtherTotal
Third Quarter 2022
End Market
Semiconductor$2,410 $185,223 $1,151 $— $188,784 
Industrial44,667 9,383 7,564 — 61,614 
Aerospace and defense28,262 1,243 3,532 — 33,037 
Consumer electronics9,607 364 6,799 — 16,770 
Automotive24,802 1,863 2,268 — 28,933 
Energy15,854 25,220 — — 41,074 
Telecom and data center15,412 42 — — 15,454 
Other28,343 7,503 6,679 — 42,525 
Total$169,357 $230,841 $27,993 $— $428,191 
Third Quarter 2021
End Market
Semiconductor$3,163 $173,689 $630 $— $177,482 
Industrial31,521 10,479 8,296 — 50,296 
Aerospace and defense19,129 1,622 5,653 — 26,404 
Consumer electronics9,717 530 7,789 — 18,036 
Automotive28,922 1,719 2,571 — 33,212 
Energy7,524 27,081 — — 34,605 
Telecom and data center14,980 31 — — 15,011 
Other21,140 5,572 6,270 — 32,982 
Total$136,096 $220,723 $31,209 $— $388,028 
 (Thousands)Performance MaterialsElectronic MaterialsPrecision OpticsOtherTotal
First Nine Months 2022
End Market
Semiconductor$6,657 $613,887 $4,007 $— $624,551 
Industrial127,187 37,206 23,605 — 187,998 
Aerospace and defense79,561 5,141 12,344 — 97,046 
Consumer electronics38,822 969 17,925 — 57,716 
Automotive71,893 4,985 7,294 — 84,172 
Energy36,632 79,701 — — 116,333 
Telecom and data center47,716 107 — — 47,823 
Other65,408 20,653 20,831 — 106,892 
Total$473,876 $762,649 $86,006 $— $1,322,531 
First Nine Months 2021
End Market
Semiconductor$5,966 $495,718 $1,664 $— $503,348 
Industrial85,815 33,756 23,305 — 142,876 
Aerospace and defense60,221 4,680 17,825 — 82,726 
Consumer electronics30,483 961 24,212 — 55,656 
Automotive78,195 5,145 6,871 — 90,211 
Energy16,541 78,487 — — 95,028 
Telecom and data center39,348 140 — — 39,488 
Other58,964 19,594 25,522 — 104,080 
Total$375,533 $638,481 $99,399 $— $1,113,413