Reporting for Segments

6 Months Ended

Jun. 30, 2012

Reporting for Segments [Abstract]

Reporting for Segments

13. Reporting for Segments

The Company has six reportable segments: Performance Coatings, Electronic Materials, Color and Glass Performance Materials, Polymer Additives, Specialty Plastics, and Pharmaceuticals. We have aggregated our Tile Coating Systems and Porcelain Enamel operating segments into one reportable segment, Performance Coatings, and aggregated our Glass Systems and Performance Pigments and Colors operating segments into one reportable segment, Color and Glass Performance Materials, based on their similar economic and operating characteristics.

We measure segment income for internal reporting purposes by excluding unallocated corporate expenses, restructuring and impairment charges, other expenses (income) and income taxes. During the first quarter of 2012, we refined the allocation of certain corporate expenses to the Company’s reportable segments, which aligns segment reporting to the current manner in which performance is evaluated, strategic decisions are made and resources are allocated. Unallocated corporate expenses consist primarily of executive employment costs, legacy pension and other benefit costs, certain professional fees, and costs associated with our global headquarters facility.

Net sales to external customers by segment are presented in the table below. Sales between segments were not material.

	Three months ended June 30,				Six months ended June 30,
	2012		2011		2012		2011
	(Dollars in thousands)
Electronic Materials	$	90,741	$	180,362	$	162,437	$	382,709
Performance Coatings		157,315		163,481		309,829		300,181
Color and Glass Performance Materials		99,889		106,476		201,324		206,281
Polymer Additives		83,450		91,271		171,174		177,133
Specialty Plastics		44,151		46,510		91,207		89,139
Pharmaceuticals		5,959		5,874		11,924		11,540
Total net sales	$	481,505	$	593,974	$	947,895	$	1,166,983

Each segment’s income (loss) and reconciliations to income before income taxes follow. As a result of applying the refined allocations to prior periods, each segment’s income for the three and six months ended June 30, 2011, has been impacted as presented below.

	Three months ended June 30,						Six months ended June 30,
			2011							2011
	2012		Adjusted		As reported		2012			Adjusted		As reported
	(Dollars in thousands)
Electronic Materials	$	33	$	22,406	$	23,914	$	(4,657	)	$	53,154	$	56,503
Performance Coatings		9,699		10,497		11,329		17,758			16,844		18,734
Color and Glass Performance Materials		10,009		10,670		11,201		18,466			19,768		21,031
Polymer Additives		1,878		4,515		4,331		8,505			11,095		10,782
Specialty Plastics		3,806		2,827		2,810		8,454			4,699		4,719
Pharmaceuticals		620		945		759		1,807			2,271		1,915
Total segment income		26,045		51,860		54,344		50,333			107,831		113,684
Unallocated corporate expenses		12,845		11,061		13,545		26,495			23,524		29,377
Restructuring and impairment charges		4,728		1,545		1,545		5,039			3,175		3,175
Other expense, net		8,417		8,172		8,172		15,611			16,752		16,752
Income before income taxes	$	55	$	31,082	$	31,082	$	3,188		$	64,380	$	64,380