Reporting for Segments

9 Months Ended

Sep. 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 September 30,				Nine months ended September 30,
	2013		As adjusted 2012		2013		As adjusted 2012
	(Dollars in thousands)				(Dollars in thousands)
Pigments, Powders and Oxides	$	47,647	$	64,053	$	155,948	$	219,398
Performance Colors and Glass		94,059		86,398		298,633		294,806
Performance Coatings		151,873		137,228		445,969		447,065
Polymer Additives		71,599		79,881		229,266		251,055
Specialty Plastics		42,926		41,305		131,267		132,512
Total net sales	$	408,104	$	408,865	$	1,261,083	$	1,344,836

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 (loss) before income taxes from continuing operations follows:

	Three months ended September 30,						Nine months ended September 30,
	2013			As adjusted 2012			2013			As adjusted 2012
	(Dollars in thousands)						(Dollars in thousands)
Pigments, Powders and Oxides	$	8,390		$	7,231		$	25,882		$	28,363
Performance Colors and Glass		28,713			21,086			87,203			77,220
Performance Coatings		36,410			23,858			100,237			85,328
Polymer Additives		6,251			8,907			20,616			26,871
Specialty Plastics		6,881			6,984			22,116			23,207
Other cost of sales		(2,398	)		(7,356	)		(4,916	)		(8,740	)
Total gross profit		84,247			60,710			251,138			232,249
Selling, general and administrative expenses		59,078			63,863			184,986			202,675
Restructuring and impairment charges		3,834			198,695			26,738			203,734
Other expense, net		7,817			8,325			15,386			23,204
Income (loss) before income taxes	$	13,518		$	(210,173	)	$	24,028		$	(197,364	)