Reporting for Segments

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Reporting for Segments

15. Reporting for Segments

During the first quarter of 2013, the Company reorganized its operating segments to reflect the current structure under which performance is evaluated, strategic decisions are made and resources are allocated. The new structure aligns the continuing product lines of our former Electronic Materials segment with our continuing operating segments. Under the new structure, we will continue to report Specialty Plastics, Polymer Additives and Performance Coatings, which aggregates our Tile Coating Systems and Porcelain Enamel operating segments, consistent with the manner in which they have historically been reported. The Glass Systems and Performance Pigments and Colors operating segments that aggregated into the historically reported Color and Glass Performance Materials segment, now include our continuing product lines that were historically reported within the Electronic Materials segment, and as a result of such inclusion, fail to meet the aggregation criteria for continuing to report as one segment. These operating segments will now be reported as the Pigments, Powders and Oxides, and Performance Colors and Glass segments. As discussed in Note 12, our pharmaceuticals business that comprised the Pharmaceuticals segment was sold in the first quarter, and is reported as a discontinued operation.

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,
	2013		As adjusted 2012		2013		As adjusted 2012
	(Dollars in thousands)				(Dollars in thousands)
Pigments, Powders and Oxides	$	53,514	$	84,815	$	108,301	$	154,038
Performance Colors and Glass		106,447		105,815		204,574		209,723
Performance Coatings		155,194		157,315		294,096		309,829
Polymer Additives		76,798		83,450		157,667		171,174
Specialty Plastics		43,502		44,151		88,341		91,207
Total net sales	$	435,455	$	475,546	$	852,979	$	935,971

In the first quarter, in conjunction with the changes to operating segments, we changed the profitability metric utilized by management to evaluate segment performance. The metric that was utilized historically was segment income, and segment gross profit is the metric that is now utilized. We measure segment gross profit for internal reporting purposes by excluding certain other cost of sales, which includes costs associated with facilities that have been idled or closed. Each segment’s gross profit and a reconciliation to income before income taxes from continuing operations follows:

	Three months ended June 30,						Six months ended June 30,
	2013			As adjusted 2012			2013			As adjusted 2012
	(Dollars in thousands)						(Dollars in thousands)
Pigments, Powders and Oxides	$	9,319		$	13,212		$	17,492		$	20,244
Performance Colors and Glass		31,232			28,042			58,490			56,950
Performance Coatings		35,235			31,107			63,827			61,466
Polymer Additives		5,511			6,525			14,365			17,964
Specialty Plastics		7,846			7,565			15,235			16,224
Other cost of sales		(1,489	)		(633	)		(2,518	)		(1,309	)
Total gross profit		87,654			85,818			166,891			171,539
Selling, general and administrative expenses		64,316			66,304			125,908			138,812
Restructuring and impairment charges		13,450			4,728			22,904			5,039
Other expense, net		9,335			8,049			7,569			14,879
Income before income taxes	$	553		$	6,737		$	10,510		$	12,809