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Segment Information
 9 Months Ended
Sep. 30, 2012
Segment Information [Abstract]  
Segment Information

Note 13: Segment Information

 

                                 
    Nine Months Ended
September 30,		     Three Months Ended
September 30,		  
    2012     2011     2012     2011  
    (In Thousands)  

Net sales:

                                

Climate Control

   $ 198,286     $ 212,628     $ 67,982     $ 71,804  

Chemical (1)

     372,551       369,820       110,212       102,769  

Other

     11,057       7,444       4,180       2,207  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 581,894     $ 589,892     $ 182,374     $ 176,780  
   

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit: (2)

                                

Climate Control

   $ 60,892     $ 67,689     $ 20,457     $ 22,808  

Chemical (1)

     78,789       89,789       11,291       10,677  

Other

     3,685       2,719       1,439       772  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 143,366     $ 160,197     $ 33,187     $ 34,257  
   

 

 

    

 

 

    

 

 

    

 

 

  

Operating income: (3)

                                

Climate Control

   $ 20,007     $ 26,357     $ 6,856     $ 8,738  

Chemical (1)

     67,023       78,923       7,529       7,105  

General corporate expenses and other business operations, net (4)

     (9,736 )      (10,477 )      (2,496 )      (3,351 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  
      77,294       94,803       11,889       12,492  

Interest expense

     (3,800 )      (5,481 )      (1,489 )      (1,901 ) 

Losses on extinguishment of debt

     —         (136 )      —         —    

Non-operating other income (expense), net:

                                

Climate Control

     1       1       1       —    

Chemical

     1       1       1       —    

Corporate and other business operations

     268       1       (4 )      (2 ) 

Provisions for income taxes

     (27,110 )      (33,582 )      (3,857 )      (4,433 ) 

Equity in earnings of affiliate-Climate Control

     510       375       169       168  
   

 

 

    

 

 

    

 

 

    

 

 

  

Income from continuing operations

   $ 47,164     $ 55,982     $ 6,710     $ 6,324  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) Although our Chemical Business’ net sales increased in 2012 compared to 2011, the following events negatively impacted the 2012 operating results. During January 2012, a planned improvement project was performed at the Pryor Facility to increase anhydrous ammonia production levels, during which time the facility was not in production. In addition, the Pryor Facility experienced certain unplanned downtime in the ammonia and urea plants. The ammonia plant production was shut down for a portion of March 2012 while the repairs were performed. The repairs to the urea plant were extensive resulting in the urea plant being shut down from late February 2012 through early July 2012. As a result, the Pryor Facility was unable to produce UAN during this timeframe but continued to produce and sell anhydrous ammonia. On May 15, 2012, the El Dorado Facility suffered significant damage when a reactor in its DSN plant exploded. As a result, the DSN plant was severely damaged and several other plants and infrastructure within the El Dorado Facility sustained various degrees of damage. Therefore, the El Dorado Facility had only limited production of certain products since May 15, 2012. For the nine months ended September 30, 2011, the Chemical Business recognized an insurance recovery of $8.6 million relating to a business interruption claim, which was recorded as a reduction to cost of sales.
(2) Gross profit by business segment represents net sales less cost of sales. Gross profit classified as “Other” relates to the sales of industrial machinery and related components.
(3) Our chief operating decision makers use operating income by business segment for purposes of making decisions, which include resource allocations and performance evaluations. Operating income by business segment represents gross profit by business segment less selling, general and administrative expense (“SG&A”) incurred by each business segment plus other income and other expense earned/incurred by each business segment before general corporate expenses and other business operations, net. General corporate expenses and other business operations, net, consist of unallocated portions of gross profit, SG&A, other income and other expense.
(4) The amounts included are not allocated to our Climate Control and Chemical Businesses since these items are not included in the operating results reviewed by our chief operating decision makers for purposes of making decisions as discussed above. A detail of these amounts are as follows:

 

                                 
    Nine Months Ended
September 30,		     Three Months Ended
September 30,		  
    2012     2011     2012     2011  
    (In Thousands)  

Gross profit-Other

   $ 3,685     $ 2,719     $ 1,439     $ 772  

Selling, general and administrative:

                                

Personnel costs

     (7,829 )      (6,338 )      (2,299 )      (2,187 ) 

Professional fees

     (3,250 )      (3,046 )      (881 )      (957 ) 

All other

     (2,639 )      (3,420 )      (857 )      (909 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Total selling, general and administrative

     (13,718 )      (12,804 )      (4,037 )      (4,053 ) 
         

Other income

     302       102       107       26  

Other expense

     (5 )      (494 )      (5 )      (96 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Total general corporate expenses and other business operations, net

   $ (9,736 )    $ (10,477 )    $ (2,496 )    $ (3,351 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Information about our total assets by business segment is as follows:

 

                 
    September 30,
2012		     December 31,
2011		  
    (In Thousands)  

Climate Control

   $ 118,994     $ 119,323  

Chemical

     280,475       214,246  

Corporate assets and other

     161,700       168,440  
   

 

 

    

 

 

  

Total assets

   $ 561,169     $ 502,009