Industry Segment and Foreign Operations

9 Months Ended

Sep. 30, 2013

Industry Segment and Foreign Operations

12. Industry Segment and Foreign Operations

We operate in one segment for the manufacturing and marketing of engineered polymers. In accordance with the provisions of ASC280, “Segment Reporting,” our chief operating decision-maker has been identified as the President and Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire company. Since we operate in one segment and in one group of similar products, all financial segment and product line information required by ASC280 can be found in the condensed consolidated financial statements.

We manufacture our products along the following primary product lines based upon polymer chemistry and process technologies:

• un-hydrogenated SBCs (“USBCs”);
• hydrogenated SBCs (“HSBCs”);
• Cariflex™ isoprene rubber and isoprene rubber latex; and
• compounds.

Sales revenue for our four primary product lines is as follows:

	Threemonthsended September30,					Ninemonthsended September30,
	2013		2012		2013				2012
	(in thousands)					(in thousands)
USBCs	$	192,714	$	208,119	$		582,030	$		670,219
HSBCs		98,572		103,400			311,603			353,921
Cariflex™		28,231		24,193			84,504			76,643
Compounds		7,187		6,685			22,635			23,799
Other		405		238			987			2,122
	$	327,109	$	342,635	$		1,001,759	$		1,126,704

For geographic reporting, sales revenue is attributed to the geographic location in which the customers’ facilities are located. Long-lived assets consist primarily of property, plant and equipment, which are attributed to the geographic location in which they are located and are presented at historical cost.

Sales revenue and long-lived assets by geographic region are as follows:

	Threemonthsended September30,					Ninemonthsended September30,
	2013		2012		2013				2012
	(in thousands)					(in thousands)
Sales revenue:
United States	$	99,726	$	103,114	$		313,963	$		375,453
Germany		49,263		52,078			134,948			152,277
Japan		20,341		23,561			57,472			64,757
China		17,872		19,324			54,065			59,241
Brazil		14,701		11,807			41,582			37,627
France		12,534		12,361			35,729			39,188
Belgium		9,751		10,745			32,865			36,340
Italy		9,424		10,445			32,822			34,945
Thailand		10,457		10,750			30,621			32,382
United Kingdom		8,011		7,411			28,770			30,499
Netherlands		6,118		6,076			22,332			26,867
Malaysia		6,664		2,673			19,802			12,789
Turkey		7,743		5,293			19,333			24,071
Mexico		4,460		3,443			14,143			9,891
Sweden		4,333		5,361			13,905			14,067
Taiwan		3,649		4,744			13,588			14,784
Canada		3,585		4,170			13,264			14,769
Argentina		3,798		3,371			12,709			11,144
Austria		3,699		4,467			9,769			14,622
South Korea		2,532		4,068			9,691			12,457
Poland		5,589		6,758			9,400			16,879
Australia		507		4,348			7,492			13,128
All other countries		22,352		26,267			73,494			78,527
	$	327,109	$	342,635	$		1,001,759	$		1,126,704

	September30, 2013		December31, 2012
	(In thousands)
Long-lived assets, at cost:
United States	$	438,137	$	411,969
France		122,061		118,275
Brazil		77,612		79,585
Germany		61,475		55,581
Netherlands		25,874		15,255
Taiwan		10,755		0
China		6,997		5,906
Japan		1,808		1,978
All other countries		4,477		4,435
	$	749,196	$	692,984