Industry Segment and Foreign Operations

6 Months Ended

Jun. 30, 2014

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 ASC 280, “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 ASC 280 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 product lines is as follows:

	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
	(In thousands)				(In thousands)
USBCs	$	181,115	$	192,543	$	346,636	$	389,316
HSBCs		106,178		104,937		209,955		213,031
Cariflex		29,242		29,244		64,605		56,273
Compounds		7,144		7,544		14,044		15,448
Other		88		275		183		582
	$	323,767	$	334,543	$	635,423	$	674,650

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:

	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
	(In thousands)				(In thousands)
Sales revenue:
United States	$	100,956	$	100,929	$	202,618	$	214,237
Germany		39,971		42,304		80,612		85,685
China		20,313		17,503		39,305		36,193
Japan		19,801		20,080		37,482		37,131
Thailand		10,936		10,182		27,184		20,164
Brazil		12,365		12,984		26,508		26,881
Belgium		17,100		12,432		25,286		23,114
France		11,531		11,361		24,010		23,195
United Kingdom		10,268		10,285		18,420		20,759
Italy		7,345		10,927		17,566		23,398
Netherlands		6,259		6,577		13,286		16,214
Malaysia		5,585		7,385		12,067		13,138
Sweden		6,496		5,499		10,921		9,572
Taiwan		6,102		3,493		10,669		9,939
Canada		4,631		4,919		8,664		9,679
Argentina		4,406		4,246		8,596		8,911
Mexico		4,463		4,809		8,210		9,683
South Korea		4,954		3,936		7,895		7,159
Turkey		3,245		5,914		6,552		11,590
Austria		3,635		4,344		6,450		6,070
Poland		2,905		2,385		4,596		3,811
All other countries		20,500		32,049		38,526		58,127
	$	323,767	$	334,543	$	635,423	$	674,650

	June 30,		December 31,
	2014		2013
	(In thousands)
Long-lived assets, at cost:
United States	$	476,610	$	453,157
France		124,000		123,804
Brazil		81,960		76,524
Germany		65,069		64,258
Netherlands		29,697		27,865
Taiwan		35,317		12,935
China		7,196		7,226
Japan		1,770		1,696
All other countries		220		220
	$	821,839	$	767,685