10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the quarterly period ended September 30, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

for the transition period from  to

Commission file number: 1-13888

GRAFTECH INTERNATIONAL LTD.

(Exact name of registrant as specified in its charter)

Delaware	27-2496053
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)

12900 Snow Road	44130
Parma, OH	(Zip code)
(Address of principal executive offices)

Registrant’s telephone number, including area code: (216) 676-2000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No   ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No   ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer x	Accelerated Filer o
Non-Accelerated Filer o	Smaller Reporting Company o

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2).    Yes  ¨    No  ý

As of October 14, 2014, 136,420,023 shares of common stock, par value $.01 per share, were outstanding.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Consolidated Balance Sheets as of December 31, 2013 and September 30, 2014 (unaudited)	3
Consolidated Statements of Operations and Comprehensive Income for the Three and Nine Months ended September 30, 2013 and 2014 (unaudited)	4
Consolidated Statements of Cash Flows for the Nine Months ended September 30, 2013 and 2014 (unaudited)	5
Notes to Consolidated Financial Statements (unaudited)	6
Introduction to Part I, Item 2, and Part II, Item 1 and Item 1A	30
Item  2. Management’ Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3. Quantitative and Qualitative Disclosures About Market Risk	48
Item 4. Controls and Procedures	49
PART II. OTHER INFORMATION:
Item 1. Legal Proceedings	50
Item 1A. Risk Factors	50
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	50
Item 3. Defaults Upon Senior Securities	50
Item 4. Mine Safety Disclosures	50
Item 5. Other Information	50
Item 6. Exhibits	51
SIGNATURE	52

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except share data)

(Unaudited)

	As of December 31, 2013			As of September 30,  2014
ASSETS
Current assets:
Cash and cash equivalents	$	11,888		$	10,878
Accounts and notes receivable, net of allowance for doubtful accounts of    $6,718 as of December 31, 2013 and $8,592 as of September 30, 2014	199,566			163,971
Inventories	490,414			418,477
Prepaid expenses and other current assets	73,790			87,988
Total current assets	775,658			681,314
Property, plant and equipment	1,588,880			1,573,995
Less: accumulated depreciation	767,895			908,440
Net property, plant and equipment	820,985			665,555
Deferred income taxes	10,334			13,614
Goodwill	496,810			495,944
Other assets	114,061			105,018
Total assets	$	2,217,848		$	1,961,445
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	115,212		$	98,722
Short-term debt	1,161			1,144
Accrued income and other taxes	30,687			26,073
Rationalizations	18,421			12,747
Supply chain financing liability	9,455			—
Other accrued liabilities	40,939			44,211
Total current liabilities	215,875			182,897
Long-term debt	541,593			539,509
Other long-term obligations	97,947			89,984
Deferred income taxes	41,684			40,676
Contingencies – Note 12
Stockholders’ equity:
Preferred stock, par value $.01, 10,000,000 shares authorized, none issued	—			—
Common stock, par value $.01, 225,000,000 shares authorized,    151,929,565 shares issued as of December 31, 2013 and 152,604,441    shares issued as of September 30, 2014	1,519			1,525
Additional paid-in capital	1,820,451			1,826,935
Accumulated other comprehensive loss	(292,624		)	(313,560		)
Retained earnings (deficit)	39,625			(162,268		)
Less: cost of common stock held in treasury, 16,341,311 shares as of    December 31, 2013 and 16,092,662 shares as of September 30, 2014	(247,190		)	(243,098		)
Less: common stock held in employee benefit and compensation trusts,    87,206 shares as of December 31, 2013 and 107,406 shares as of    September 30, 2014	(1,032		)	(1,155		)
Total stockholders’ equity	1,320,749			1,108,379
Total liabilities and stockholders’ equity	$	2,217,848		$	1,961,445

See accompanying Notes to Consolidated Financial Statements

3

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(Dollars in thousands, except per share amounts)

(Unaudited)

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$	303,084		$	260,458		$	858,172		$	825,433
Cost of sales	266,440			242,814			724,057			764,142
Gross profit	36,644			17,644			134,115			61,291
Research and development	2,994			2,871			8,874			8,544
Selling and administrative expenses	27,626			26,980			87,500			89,024
Rationalizations	14,593			10,844			14,593			11,761
Impairments	—			—			—			121,570
Operating (loss) income	(8,569		)	(23,051		)	23,148			(169,608		)
Other expense, net	(772		)	1,149			753			1,902
Interest expense	9,098			9,069			27,053			27,223
Interest income	(49		)	(144		)	(162		)	(257		)
Loss before provision for income taxes	(16,846		)	(33,125		)	(4,496		)	(198,476		)
Provision for income taxes	(9,216		)	1,818			(5,458		)	3,417
Net (loss) income	$	(7,630	)	$	(34,943	)	$	962		$	(201,893	)
Basic (loss) income per common share:
Net (loss) income per share	$	(0.06	)	$	(0.26	)	$	0.01		$	(1.48	)
Weighted average common shares outstanding	135,134			136,375			134,949			136,007
Diluted (loss) income per common share:
Net (loss) income per share	$	(0.06	)	$	(0.26	)	$	0.01		$	(1.48	)
Weighted average common shares outstanding	135,134			136,375			135,122			136,007
STATEMENTS OF COMPREHENSIVE INCOME
Net (loss) income	$	(7,630	)	$	(34,943	)	$	962		$	(201,893	)
Other comprehensive income:
Foreign currency translation adjustments	5,230			(22,579		)	(11,902		)	(20,432		)
Commodities and foreign currency derivatives and other, net of tax of ($170), ($39), ($265) and ($92), respectively	476			(668		)	683			(504		)
Other comprehensive income (loss), net of tax:	5,706			(23,247		)	(11,219		)	(20,936		)
Comprehensive income (loss)	$	(1,924	)	$	(58,190	)	$	(10,257	)	$	(222,829	)

See accompanying Notes to Consolidated Financial Statements

4

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

	For the Nine Months Ended
	September 30,
	2013			2014
Cash flow from operating activities:
Net income (loss)	$	962		$	(201,893	)
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization	71,770			93,123
Impairments	—			121,570
Inventory write-downs	1,600			18,800
Deferred income tax provision	(2,563		)	(4,943		)
Post-retirement and pension plan changes	3,468			4,097
Stock-based compensation	5,938			4,009
Interest expense	10,459			11,105
Other charges, net	3,016			4,047
(Increase) decrease in working capital*	(22,003		)	48,577
Increase in long-term assets and liabilities	(7,469		)	(15,603		)
Net cash provided by operating activities	65,178			82,889
Cash flow from investing activities:
Capital expenditures	(62,698		)	(69,314		)
Proceeds from the sale of assets	—			4,079
Proceeds from (payments for) derivative instruments	852			(573		)
Insurance recoveries	2,333			2,834
Net cash used in investing activities	(59,513		)	(62,974		)
Cash flow from financing activities:
Short-term debt reductions, net	(4,082		)	(17		)
Revolving Facility borrowings	134,000			229,000
Revolving Facility reductions	(118,500		)	(240,000		)
Principal payments on long-term debt	(189		)	(158		)
Supply chain financing	(14,422		)	(9,455		)
Proceeds from exercise of stock options	175			2,813
Purchase of treasury shares	(844		)	(620		)
Revolving Facility refinancing	—			(2,741		)
Other	(7,206		)	1,011
Net cash used in financing activities	(11,068		)	(20,167		)
Net decrease in cash and cash equivalents	(5,403		)	(252		)
Effect of exchange rate changes on cash and cash equivalents	(444		)	(758		)
Cash and cash equivalents at beginning of period	17,317			11,888
Cash and cash equivalents at end of period	$	11,470		$	10,878
* Net change in working capital due to the following components:
Change in current assets:
Accounts and notes receivable, net	$	30,971		$	29,693
Inventories	(13,581		)	46,424
Prepaid expenses and other current assets	(11,049		)	(15,560		)
Decrease in accounts payable and accruals	(47,541		)	(11,072		)
Rationalizations	14,129			(5,671		)
Increase in interest payable	5,068			4,763
(Increase) decrease in working capital	$	(22,003	)	$	48,577

See accompanying Notes to Consolidated Financial Statements

5

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(1) Organization and Summary of Significant Accounting Policies

A. Organization

GrafTech International Ltd. (the "Company") is one of the world’s largest manufacturers and providers of high quality synthetic and natural graphite and carbon based products. References herein to “GTI,” “we,” “our,” or “us” refer collectively to GrafTech International Ltd. and its subsidiaries. We have seven major product categories: graphite electrodes, refractory products, needle coke products, advanced electronics technologies, advanced graphite materials, advanced composite materials and advanced materials, which are reported in the following segments:

Industrial Materials includes graphite electrodes, refractory products, and needle coke products, and primarily serves the steel industry.

Engineered Solutions includes advanced electronics technologies, advanced graphite materials, advanced composite materials and advanced materials, and provides primary and specialty products to the advanced electronics, industrial, energy, transportation and defense industries.

B. Basis of Presentation

The interim Consolidated Financial Statements are unaudited; however, in the opinion of management, they have been prepared in accordance with Rule 10-01 of Regulation S-X and in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The December 31, 2013 financial position data included herein was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 (the “Annual Report”) but does not include all disclosures required by GAAP. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the accompanying notes, contained in the Annual Report.

The unaudited consolidated financial statements reflect all adjustments (all of which are of a normal, recurring nature) which management considers necessary for a fair statement of financial position, results of operations, comprehensive income and cash flows for the interim period presented. The results for the interim periods are not necessarily indicative of results which may be expected for any other interim period or for the full year.

C. New Accounting Standards

In July 2013, the Financial Accounting Standards Board ("FASB") issued guidance on Income Taxes titled “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This guidance requires that financial statements reflect a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward as reduced by any unrecognized tax benefit or a portion of an unrecognized tax benefit. The updated guidance became effective for the Company's interim and annual periods beginning after December 15, 2013. We adopted the guidance effective January 1, 2014 and its implementation did not have a material impact to our financial statements.

In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605—Revenue Recognition and most industry-specific guidance throughout the Codification. This ASU requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. We are in the process of assessing the impact of the adoption of ASU 2014-09 on the Company's financial position, results of operations and cash flows.

(2) Rationalizations and Impairments

2013Industrial Materials Rationalization

On October 31, 2013, we announced a global initiative to reduce our Industrial Materials segment's cost base and improve our competitive position. As part of this initiative, we ceased production at our two highest cost graphite electrode plants, located in Brazil and South Africa, as well as a machine shop in Russia. These actions were substantially completed during the first half of 2014. Our graphite electrode capacity was reduced by approximately

6

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

60,000 metric tons as a result of these actions. In parallel, we adopted measures for reductions in overhead and related corporate operations. These actions and measures reduced global headcount by approximately 600 people, or approximately 20 percent of our global workforce.

2013 Engineered Solutions Rationalization

In order to optimize our Engineered Solutions platform and improve our cost structure, we also initiated actions to centralize certain operations and reduce overhead in our Engineered Solutions segment. These actions are expected to reduce global headcount by approximately 40 people and be substantially completed during 2014.

Total 2013 Rationalization Initiatives Impact to 2014 Financial Results

In the three and nine months ended September 30, 2014, as a result of the 2013 rationalization initiatives we incurred rationalization charges of $0.1 million and $0.9 million, respectfully, primarily related to contract termination costs. We also incurred non-cash accelerated depreciation charges of $0.8 million and $22.5 million in the three and nine months ended September 30, 2014, respectively. Other rationalization-related charges recorded in cost of sales in the three and nine months ended September 30, 2014 were $1.6 million and $6.8 million, respectively, and included cleaning and dismantling costs and loss reserves for inventory.

Charges incurred related to the 2013 rationalization initiatives for the three and nine months endedSeptember 30, 2014 are as follows:

	For the Three Months Ended September 30, 2014								For the Nine Months Ended September 30, 2014
	Industrial Materials Segment			Engineered Solutions Segment		Total			Industrial Materials Segment		Engineered Solutions Segment			Total
	(Dollars in thousands)								(Dollars in thousands)
Accelerated depreciation     (recorded in Cost of sales)	$	838		$	—	$	838		$	21,690	$	826		$	22,516
Other (recorded in Cost     of sales)	1,618			6		1,624			6,194		622			6,816
Other (recorded in Selling     and administrative)	21			—		21			99		—			99
Severance and related costs     (recorded in Rationalizations)	(52		)	—		(52		)	366		(28		)	338
Contract terminations (recorded in Rationalizations)	81			—		81			609		—			609
Total 2013 rationalization plan     and related charges	$	2,506		$	6	$	2,512		$	28,958	$	1,420		$	30,378

The 2013 rationalization initiatives will result in approximately $100 million of pre-tax charges, of which approximately $30 million will be cash outlays (net of cash inflows). Through September 30, 2014, we incurred $96.1 million of expense related to these initiatives.

7

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table represents the roll-forward of the liability incurred for employee termination benefits and contract termination costs incurred in connection with the 2013 rationalization initiatives described above. This liability is recorded as a current liability on the Consolidated Balance Sheet.

	(Dollars in thousands)
Balance as of December 31, 2013	$	18,421
Charges incurred	693
Change in estimates	254
Payments and settlements	(16,053		)
Effect of change in currency exchange rates	(997		)
Balance as of September 30, 2014	$	2,318

2014 Engineered Solutions Rationalization

On July 29, 2014, we announced additional rationalization initiatives to increase profitability, reduce cost and improve global competitiveness in our Engineered Solutions segment. During the second quarter of 2014, worldwide pricing of our isomolded graphite products ("isomolded") within our Advanced Graphite Material ("AGM") product group, as well as our expectation of future pricing, significantly eroded, driven by significant over-capacity and recent competitor responses. In addition, solar product demand continued to erode, with polysilicon, silicon and silicon wafer production migrating to China. New competitors servicing this industry commenced production in China at pricing levels making the market now unprofitable. As a result of these conditions, the Company decided to cease isomolded production and pursue alternative supply chain relationships in our isomolded product line.

As a result of the above, we tested our long-lived assets used to produce advanced graphite materials for recovery, based on undiscounted cash flows from the use and eventual disposition of these assets. The carrying value of the assets exceeded these undiscounted cash flow and, accordingly, we estimated the fair-value of these long-lived assets based on a market participant view. This resulted in an impairment charge totaling $121.6 million in the nine months months ended September 30, 2014, and included the impairment of certain acquired customer relationship and technology intangible assets. Goodwill associated with this line of business of $0.4 million was fully impaired, and included in the $121.6 million charge. Other impairment related charges, primarily inventory write-downs, were $13.4 million in the nine months ended September 30, 2014. If business conditions and plans do not achieve our expected returns in the Engineered Solutions segment, we may undertake additional restructurings, rationalizations or similar actions which could result in additional charges, write-offs and impairments.

Charges incurred related to the 2014 Engineered Solutions rationalization initiatives for the three and nine months endedSeptember 30, 2014 are as follows:

	For the Three  Months Ended September 30, 2014		For the Nine Months Ended September 30, 2014
	(dollars in thousands)
Accelerated depreciation (recorded in Cost of sales)	$	2,802	$	2,802
Other (recorded in Cost of sales)	2,780		13,341
Severance and related charges (recorded in Rationalizations)	2,537		2,537
Contract terminations (recorded in Rationalizations)	74		74
Impairments (recorded in Impairments)	—		121,570
Total 2014 Engineered Solutions rationalization         and related charges	$	8,193	$	140,324

The 2014 Engineered Solution rationalization will result in approximately $25 million of pre-tax charges (excluding impairments of $121.6 million), of which, approximately $5 million will be cash outlays (net of cash inflows),

8

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

the majority of which will be incurred in 2014. Through September 30, 2014 we have incurred $18.8 million related to this program.

The following table represents the roll-forward of the liability incurred for employee termination benefits and contract termination costs incurred in connection with the 2014 Engineered Solutions rationalization initiatives described above. This liability is recorded as a current liability on the Consolidated Balance Sheet.

	(Dollars in thousands)
Balance as of December 31, 2013	$	—
Charges incurred	2,611
Change in estimates	—
Payments and settlements	(386		)
Effect of change in currency exchange rates	—
Balance as of September 30, 2014	$	2,225

2014 Corporate and Research & Development Rationalization

During the third quarter of 2014, we announced the conclusion of another phase of our on-going company-wide cost savings assessment. This resulted in changes to the Company’s operating and management structure in order to streamline, simplify and decentralize the organization. These actions will reduce costs by a combination of reduced contractor costs, attrition, early retirements and layoffs. Additionally, the Company will downsize its corporate functions by approximately 25 percent, relocate to a smaller, more cost effective corporate headquarters and establish a new Technology and Innovation Center.

Charges incurred related to the 2014 Corporate and Research & Development rationalization initiatives for the three and nine months endedSeptember 30, 2014 are as follows:

	For the Three and Nine  Months Ended September 30, 2014
	(dollars in thousands)
Accelerated depreciation (recorded in Cost of sales)	$	5
Accelerated depreciation (recorded in Overhead)	89
Severance and related costs (recorded in Rationalizations)	8,130
Contract terminations (recorded in Rationalizations)	74
Total 2014 corporate rationalization         and related charges	$	8,298

The 2014 Corporate and Research and Development rationalization plan will result in approximately $20 million of charges consisting of severance, accelerated depreciation and other related costs . Approximately $12 million of these costs will be cash outlays, the majority of which are expected to be disbursed in 2015.

9

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following table represents the roll-forward of the liability incurred for employee termination benefits and contract termination costs incurred in connection with the 2014 Corporate and Research & Development rationalization initiatives described above. This liability is recorded as a current liability on the Consolidated Balance Sheet.

	(Dollars in thousands)
Balance as of December 31, 2013	$	—
Charges incurred	8,204
Change in estimates	—
Payments and settlements	—
Effect of change in currency exchange rates	—
Balance as of September 30, 2014	$	8,204

(3) Stock-Based Compensation

For the three months ended September 30, 2013 and 2014, we recognized stock-based compensation expense totaling $2.2 million and $1.3 million, respectively. A majority of the expense, $2.0 million and $1.2 million, respectively, was recorded as selling and administrative expenses in the Consolidated Statements of Operations, with the remaining expenses recorded as cost of sales and research and development.

For the nine months ended September 30, 2013 and 2014, we recognized stock-based compensation expense of $5.9 million and $4.0 million, respectively. A majority of the expense, $5.4 million and $3.3 million, respectively, was recorded as selling and administrative expenses in the Consolidated Statements of Operations, with the remaining expenses recorded as cost of sales and research and development.

As of September 30, 2014, the total compensation cost related to non-vested restricted stock, performance shares and stock options not yet recognized was $7.2 million, which will be recognized over the remaining weighted average life of 1.23 years.

Restricted Stock and Performance Shares

Restricted stock and performance share awards activity under the plans for the nine months ended September 30, 2014 was:

	Number of Shares		Weighted- Average Grant  Date Fair Value
Outstanding unvested as of January 1, 2014	1,633,491		$	10.98
Granted	215,100		10.53
Vested	(188,732	)	13.90
Forfeited/canceled/expired	(807,296	)	10.20
Outstanding unvested as of September 30, 2014	852,563		10.98

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PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Stock Options

Stock option activity under the plans for the nine months ended September 30, 2014 was:

	Number of Shares		Weighted- Average Exercise Price
Outstanding as of January 1, 2014	1,916,718		$	12.47
Granted	145,034		11.56
Forfeited/canceled/expired	(174,093	)	11.64
Exercised	(316,733	)	8.88
Outstanding as of September 30, 2014	1,570,926		13.20

(4) Earnings per Share

The following table shows the information used in the calculation of our share counts for basic and diluted earnings per share:

	For the Three Months Ended		For the Nine Months Ended
	September 30,		September 30,
	2013	2014	2013	2014
Weighted average common shares outstanding     for basic calculation	135,134,144	136,374,914	134,948,507	136,006,573
Add: Effect of stock options and restricted stock	—	—	173,107	—
Weighted average common shares outstanding     for diluted calculation	135,134,144	136,374,914	135,121,614	136,006,573

Basic earnings per common share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing net income (loss) by the sum of the weighted average number of common shares outstanding plus the additional common shares that would have been outstanding if potentially dilutive securities had been issued.

The weighted average common shares outstanding for the diluted earnings per share calculation excludes consideration of stock options covering 1,529,213 and 1,541,048 shares in the three months ended September 30, 2013 and 2014, respectively, and 1,529,213 and 1,193,851 shares in the nine months ended September 30, 2013 and 2014 respectively, as these shares are anti-dilutive.

(5) Segment Reporting

We operate in two reportable segments: Industrial Materials and Engineered Solutions.

Industrial Materials. Our Industrial Materials segment manufactures and delivers high quality graphite electrodes, refractory products and needle coke products. Electrodes are key components of the conductive power systems used to produce steel and other non-ferrous metals. Refractory products are used in blast furnaces and submerged arc furnaces due to their high thermal conductivity and the ease with which they can be machined to large or complex shapes. Needle coke, a crystalline form of carbon derived from decant oil, is the key ingredient in, and is used primarily in, the production of graphite electrodes.

Engineered Solutions. The Engineered Solutions segment includes advanced electronics technologies, advanced graphite materials, advanced composite materials and advanced materials. Advanced electronics technologies products consist of electronic thermal management solutions, fuel cell components and sealing materials. Advanced graphite materials are highly engineered synthetic graphite products used in many areas due to their unique properties and the ability to tailor them to specific solutions. These products are used in transportation, alternative energy, metallurgical, chemical, oil and gas exploration and various other industries. Advanced composite materials are highly engineered carbon products that are woven into various shapes primarily to support the aerospace and

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

defense industries. Advanced materials use carbon and graphite powders as components or additives in a variety of industries, including metallurgical processing, battery and fuel cell components, and polymer additives.

We continue to evaluate the performance of our segments based on segment operating income. Intersegment sales and transfers are not material and the accounting policies of the reportable segments are the same as those for our Consolidated Financial Statements as a whole. Corporate expenses are allocated to segments based on each segment’s percentage of consolidated net sales.

The following tables summarize financial information concerning our reportable segments:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
	(Dollars in thousands)						(Dollars in thousands)
Net sales to external customers:
Industrial Materials	$	233,277		$	208,573		$	673,394		$	634,004
Engineered Solutions	69,807			51,885			184,778			191,429
Total net sales	$	303,084		$	260,458		$	858,172		$	825,433
Segment operating (loss) income:
Industrial Materials	$	(12,945	)	$	(7,219	)	$	10,663		$	(28,009	)
Engineered Solutions	4,376			(15,832		)	12,485			(141,599		)
Total segment operating (loss) income	$	(8,569	)	$	(23,051	)	$	23,148		$	(169,608	)
Reconciliation of segment operating (loss) income to     loss before provision for income taxes
Other expense (income), net	$	(772	)	$	1,149		$	753		$	1,902
Interest expense	9,098			9,069			27,053			27,223
Interest income	(49		)	(144		)	(162		)	(257		)
Loss before provision for income taxes	$	(16,846	)	$	(33,125	)	$	(4,496	)	$	(198,476	)

Assets are managed based on geographic location because our reportable segments share certain facilities. Assets by reportable segment are estimated based on the value of property, plant and equipment at each location and the activities performed at the location.  As a result of the rationalization initiatives and related impairments discussed in Note 2, the carrying value of our property, plant and equipment has changed significantly since December 31, 2013. The following is a summary of property, plant and equipment by reportable segment.

	As of December 31, 2013		As of September 30, 2014
	(Dollars in thousands)
Property, plant & equipment:
Industrial Materials	$	601,322	$	568,213
Engineered Solutions	219,663		97,342
Total property, plant & equipment	$	820,985	$	665,555

12

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(6) Benefit Plans

The components of our consolidated net pension costs are set forth in the following table:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
	(Dollars in thousands)						(Dollars in thousands)
Service cost	$	489		$	473		$	1,467		$	1,419
Interest cost	1,985			2,169			5,955			6,507
Expected return on plan assets	(1,706		)	(1,938		)	(5,118		)	(5,814		)
Amortization of prior service cost	6			1			18			3
Net cost	$	774		$	705		$	2,322		$	2,115

The components of our consolidated net postretirement costs are set forth in the following table: 

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
	(Dollars in thousands)						(Dollars in thousands)
Service cost	$	28		$	19		$	84		$	57
Interest cost	331			352			993			1,056
Curtailment loss	—			—			—			1,048
Amortization of prior service benefit	(50		)	(47		)	(150		)	(141		)
Net cost	$	309		$	324		$	927		$	2,020

(7) Goodwill and Other Intangible Assets

We are required to review goodwill and indefinite-lived intangible assets annually for impairment. Goodwill impairment is tested at the reporting unit level (graphite electrodes, needle coke and advanced graphite materials) on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

Our annual impairment test of goodwill was performed as of December 31, 2013 for all reporting units. The estimated fair values of our reporting units were based on discounted cash flow ("DCF") models derived from internal earnings forecasts and assumptions. The assumptions and estimates used in these valuations incorporated the then current and expected economic environment. Based on these valuations, the fair values substantially exceeded our carrying values. In addition to the quantitative analysis, we qualitatively assessed our reporting units and believe that the quantitative analysis supporting the fair values in excess of the carrying values was appropriate.

As a result of the deteriorating market conditions impacting our AGM product group, as discussed in Note 2, goodwill assigned to our AGM reporting unit of $0.4 million was written off in the second quarter of 2014.

We evaluated potential triggering events as of September 30, 2014 and noted that the aggregate carrying value of our consolidated net assets significantly exceeded our market capitalization. As a result, we determined that the recent decline in our market capitalization was a triggering event and tested our goodwill for impairment. The estimated fair values of our reporting units were based on long term discounted cash flow models derived from internal earnings forecasts and assumptions. These DCF models included twelve years of forecasted cash flows, plus an estimated terminal value. For the first several years in the models, the cash flows were based on the current operating and capital plans as prepared by management and approved by executive management. These plans were based on existing operating performance, as adjusted for current trends regarding pricing and currency rates, as well as known or expected near-term changes in product mix, operating costs, operating configuration and system-wide capacity. These plans also incorporated required or anticipated near-term capital projects and working capital changes. In a DCF model, the earlier years have a more pronounced impact on the calculated value as compared to later periods.

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PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

As such, if economic conditions were to deteriorate or events were to occur resulting in the ultimate operating results for these initial years being significantly lower than what is reflected in the DCF, that would have an unfavorable effect on estimated fair values.

Discount rates are based on appropriately weighted average cost of capital ("WACC"), Company specific beta and mix of debt to equity are inputs into the determination of the discount rate, which is then qualitatively assessed from the standpoint of potential market participants. WACC has a significant impact on estimated fair values since this rate is used to discount the projected cash flows. As WACC increases, estimated fair values based on DCF decrease and vice versa.

Based on these valuations, the implied fair value of the reporting units substantially exceeded their carrying values. The results of the discounted cash flows for all reporting units, after deducting corporate debt, were compared to the market capitalization to determine an implied control premium. We evaluated the appropriateness of the implied control premium using equity valuations based on a share price average range, spot share prices as well as  third party estimates of earnings and share price.

In addition to the quantitative analysis, we qualitatively assessed our reporting units and we believe that the quantitative analysis supporting the fair values in excess of the carrying values is appropriate. However, a further deterioration in the global economic environment or in any of the input assumptions in our calculation could adversely affect the fair values of our reporting units and result in an impairment of some or all of the goodwill on the balance sheet.

The changes in the carrying value of goodwill during the nine months ended September 30, 2014 is as follows:

	Total
	(Dollars in Thousands)
Balance as of December 31, 2013	$	496,810
Impairment	(413		)
Currency translation effect	(453		)
Balance as of September 30, 2014	$	495,944

The following table summarizes acquired intangible assets with determinable useful lives by major category as of December 31, 2013 and September 30, 2014:

	As of December 31, 2013							As of September 30, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization & Impairment			Net Carrying Amount
	(Dollars in Thousands)
Trade name	$	7,900	$	(3,944	)	$	3,956	$	7,900	$	(4,495	)	$	3,405
Technological know-how	43,349		(18,582		)	24,767		43,349		(23,446		)	19,903
Customer –related     intangible	110,798		(44,664		)	66,134		110,798		(54,209		)	56,589
Total finite-lived     intangible assets	$	162,047	$	(67,190	)	$	94,857	$	162,047	$	(82,150	)	$	79,897

Accumulated amortization as of September 30, 2014 included impairment charges related to our rationalization initiatives discussed in Note 2. The impairments represented charges of $0.4 million to customer-related intangible assets and $0.3 million to technological know-how.

Amortization expense of acquired intangible assets was $5.0 million and $4.7 millionin the three months ended September 30, 2013 and September 30, 2014, respectively. Estimated amortization expense will approximate $4.7 million in the remainder of 2014, $17.1 million in 2015, $13.1 million in 2016, $11.8 million in 2017 and $10.7 million in 2018.

14

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(8) Long-Term Debt and Liquidity

The following table presents our long-term debt: 

	As of December 31, 2013		As of September 30, 2014
	(Dollars in thousands)
Revolving Facility	$	64,000	$	53,000
Senior Notes	300,000		300,000
Senior Subordinated Notes	175,675		184,820
Other Debt	1,918		1,689
Total	$	541,593	$	539,509

The fair value of long-term debt, which was determined using Level 2 inputs, was $549.8 million, versus a book value of $541.6 million as of December 31, 2013. As of September 30, 2014, the fair value of our long-term debt was $527.5 million versus a book value of $539.5 million.

Revolving Facility

On April 23, 2014, the Company and certain of its subsidiaries entered into an Amended and Restated Credit Agreement (the "Revolving Facility") that provides for, among other things, a five-year tenor, reduced borrowing spreads and greater financial flexibility. The Revolving Facility has a borrowing capacity of $470 million and matures in April 2019.

The interest rate applicable to the Revolving Credit Facility is, at GrafTech’s option, either LIBOR plus a margin ranging from 1.25% to 2.00% (depending on our total net leverage ratio) or, in the case of dollar denominated loans, the alternate base rate plus a margin ranging from 0.25% to 1.00% (depending upon such ratio). The alternate base rate is the highest of (i) the prime rate announced by JPMorgan Chase Bank, N.A., (ii) the federal fund effective rate plus one-half of 1.0% and (iii) the London interbank offering rate (as adjusted) for a one-month period plus 1.0%. The borrowers pay a per annum fee ranging from 0.20% to 0.35% (depending on our total leverage ratio) on the undrawn portion of the commitments under the Revolving Facility.

The financial covenants under the Revolving Facility require us to maintain a minimum cash interest coverage ratio of 2.50 to 1.00 and a maximum senior secured leverage ratio of 3.00 to 1.00, subject to adjustment for certain events.

Senior Notes

On November 20, 2012, the Company issued $300 million principal amount of 6.375% Senior Notes due 2020 (the "Senior Notes"). The Senior Notes are the Company's senior unsecured obligations and rank pari passu with all of the Company's existing and future senior unsecured indebtedness. The Senior Notes are guaranteed on a senior unsecured basis by each of the Company's existing and future subsidiaries that guarantee certain other indebtedness of the Company or another guarantor.

The Senior Notes bear interest at a rate of 6.375% per year, payable semi-annually in arrears on May 15 and November 15 of each year. The Senior Notes mature on November 15, 2020.

The Company is entitled to redeem some or all of the Senior Notes at any time on or after November 15, 2016, at the redemption prices set forth in the indenture. In addition, prior to November 15, 2016, the Company may redeem some or all of the Senior Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, plus a “make whole” premium determined as set forth in the indenture. The Company is also entitled to redeem up to 35% of the aggregate principal amount of the Senior Notes before November 15, 2015 with the net proceeds from certain equity offerings at a redemption price of 106.375% of the principal amount plus accrued and unpaid interest, if any.

15

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

If, prior to maturity, a change in control (as defined in the indenture) of the Company occurs and thereafter certain downgrades of the ratings of the Senior Notes as specified in the indenture occur, the Company will be required to offer to repurchase any or all of the Senior Notes at a repurchase price equal to 101% of the aggregate principal amount of the Senior Notes, plus any accrued and unpaid interest.

The indenture for the Senior Notes also contains covenants that, among other things, limit the ability of the Company and certain of its subsidiaries to: (i) create liens or use assets as security in other transactions; (ii) engage in certain sale/leaseback transactions; and (iii) merge, consolidate or sell, transfer, lease or dispose of substantially all of their assets.

The indenture for the Senior Notes also contain customary events of default, including (i) failure to pay principal or interest on the Senior Notes when due and payable, (ii) failure to comply with covenants or agreements in the indenture or the Senior Notes which failures are not cured or waived as provided in the indenture, (iii) failure to pay indebtedness of the Company, any Subsidiary Guarantor or Significant Subsidiary (each, as defined in the indenture) within any applicable grace period after maturity or acceleration and the total amount of such indebtedness unpaid or accelerated exceeds $50.0 million, (iv) certain events of bankruptcy, insolvency, or reorganization, (v) failure to pay any judgment or decree for an amount in excess of $50.0 million against the Company, any Subsidiary Guarantor or any Significant Subsidiary that is not discharged, waived or stayed as provided in the indenture, (vi) cessation of any Subsidiary Guarantee (as defined in the indenture) to be in full force and effect or denial or disaffirmance by any subsidiary guarantor of its obligations under its subsidiary guarantee, and (vii) a default under the Company's Senior Subordinated Notes. In the case of an event of default, the principal amount of the Senior Notes plus accrued and unpaid interest may be accelerated.

Senior Subordinated Notes

On November 30, 2010, in connection with our acquisitions of Seadrift Coke L.P. and C/G Electrodes LLC, the Company issued Senior Subordinated Notes for an aggregate face amount of $200 million (the "Senior Subordinated Notes"). The Senior Subordinated Notes are non-interest bearing and mature in 2015. Because the Senior Subordinated Notes are non-interest bearing, we were required to record them at their present value (determined using an interest rate of 7%). The difference between the face amount of the Senior Subordinated Notes and their present value is recorded as debt discount. The debt discount is amortized to income using the interest method, over the life of the notes. The loan balance, net of unamortized discount, was $175.7 million as of December 31, 2013 and $184.8 million as of September 30, 2014.

(9) Inventories

Inventories are comprised of the following: 

	As of December 31, 2013			As of September 30, 2014
	(Dollars in thousands)
Inventories:
Raw materials and supplies	$	184,420		$	150,340
Work in process	245,160			191,340
Finished goods	78,446			97,063
	508,026			438,743
Reserves	(17,612		)	(20,266		)
Total	$	490,414		$	418,477

16

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(10) Interest Expense

The following table presents an analysis of interest expense: 

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2013		2014		2013		2014
	(Dollars in thousands)				(Dollars in thousands)
Interest incurred on debt	$	5,372	$	5,448	$	16,255	$	16,115
Amortization of discount on Senior Subordinated Notes	2,897		3,100		8,546		9,145
Amortization of debt issuance costs	729		521		1,872		1,916
Supply Chain Financing mark-up	100		—		380		47
Total interest expense	$	9,098	$	9,069	$	27,053	$	27,223

Interest Rates

The Revolving Facility had an effective interest rate of 2.42% and 2.16% as of December 31, 2013 and September 30, 2014, respectively. The Senior Subordinated Notes have an implied interest rate of 7.00%. The Senior Notes have a fixed interest rate of 6.375%. 

(11) Supply Chain Financing

We have a supply chain financing arrangement with a financing party. Under this arrangement, we essentially assign our rights to purchase needle coke from a supplier to the financing party. The financing party purchases the product from a supplier under the supplier's standard payment terms and then immediately resells it to us under longer payment terms. The financing party pays the supplier the purchase price for the product and then we pay the financing party. Our payment to the financing party for this needle coke includes a mark-up (the “Mark-Up”). The Mark-Up is a premium expressed as a percentage of the purchase price. The Mark-Up is subject to quarterly reviews. This arrangement helps us to maintain a balanced cash conversion cycle between purchased inventory and the collection of receivables. Based on the terms of the arrangement, the total amount that we owe to the financing party cannot exceed $49.3 million at any point in time.

We record the inventory once title and risk of loss transfers from the supplier to the financing party. We record our liability to the financing party as an accrued liability. Our liability under this arrangement was $9.5 million as of December 31, 2013 and nil as of September 30, 2014. We recognized Mark-Up of $0.4 million as interest expense in the nine months endedSeptember 30, 2013 and nil through September 30, 2014.

(12) Contingencies

Legal Proceedings

We are involved in various investigations, lawsuits, claims, demands, environmental compliance programs and other legal proceedings arising out of or incidental to the conduct of our business. While it is not possible to determine the ultimate disposition of each of these matters, we do not believe that their ultimate disposition will have a material adverse effect on our financial position, results of operations or cash flows.

GrafTech and Brazil Legacy Antitrust Investigation - On October 8, 2014, the General Superintendent of the Administrative Council of Economic Defense ("CADE") in Brazil announced that the agency would be continuing an investigation of anticompetitive activity allegedly affecting the Brazilian market from 1992 to 1998. The investigation was originally commenced in 2002 and has essentially been dormant for many years. There have been no penalties assessed or asserted against GrafTech.

The investigation purportedly relates to violations of antitrust laws that were previously investigated in 1997 - 2002 by the U.S. Department of Justice, the European Commission, and other countries in connection with the sale of graphite electrodes. Those antitrust investigations and related lawsuits and claims have long been resolved. Several

17

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

of the investigations and related lawsuits and claims resulted in fines and settlements, all of which were timely paid many years ago.

GrafTech has cooperated in all of these legacy investigations, including having timely responded to requests for information from the Brazilian agency several years ago. GrafTech plans to respond as appropriate to the resurrection of the Brazilian matter. GrafTech believes that it has procedural and substantive defenses to the allegations in the Brazilian matter and that no further investigatory activities are warranted.

Product Warranties

We generally sell products with a limited warranty. We accrue for known warranty claims if a loss is probable and can be reasonably estimated. We also accrue for estimated warranty claims incurred based on a historical claims charge analysis. Claims accrued but not yet paid and the related activity within the accrual for the nine months ended September 30, 2014, are presented below: 

	(Dollars in thousands)
Balance as of December 31, 2013	$	1,050
Product warranty adjustments	(117		)
Payments and settlements	(202		)
Balance as of September 30, 2014	$	731

(13) Income Taxes

We compute and apply to ordinary income an estimated annual effective tax rate on a quarterly basis based on current and forecasted business levels and activities, including the mix of domestic and foreign results and enacted tax laws. The estimated annual effective tax rate is updated quarterly based on actual results and updated operating forecasts. Ordinary income refers to income (loss) before income tax expense excluding significant, unusual, or infrequently occurring items. The tax effect of an unusual or infrequently occurring item is recorded in the interim period in which it occurs as a discrete item of tax.

The following table summarizes the provision for income taxes for the three and nine months ended September 30, 2013 and September 30, 2014:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
	(Dollars in thousands)						(Dollars in thousands)
Tax (benefit) expense	$	(9,216	)	$	1,818		$	(5,458	)	$	3,417
Pretax income (loss)	$	(16,846	)	$	(33,125	)	$	(4,496	)	$	(198,476	)
Effective tax rates	54.7		%	(5.5		)%	121.4		%	(1.7		)%

During the second quarter of 2014, we impaired certain long-lived assets and announced the exit of certain product lines within our Advanced Graphite Material ("AGM") product group, which is described in more detail in Note 2. The impairment charges and other impairment related charges were incurred primarily in the U.S. jurisdiction. As a result, we determined that it is no longer “more likely than not” that we will generate sufficient future U.S. taxable income to realize our deferred tax assets related to U.S. foreign tax credits and state net operating loss carryforwards, as well as our net U.S. deferred tax assets.

For the three and nine months ended September 30, 2014, the effective tax rate differs from the U.S. statutory rate of 35% primarily due to the recording of a valuation allowance against U.S. net deferred tax assets. As a result of the significant negative evidence of recent losses, the Company recognized a $57.0 million non-cash charge in the second quarter of 2014 to increase the valuation allowance against these deferred income tax assets. During the third quarter of 2014, the Company again incurred a loss in the U.S. jurisdiction. As a result, a valuation allowance against the related deferred tax asset has been reflected in the quarterly effective tax rate. The recognition of the valuation allowance does not result in or limit the Company's ability to utilize these tax assets in the future.

18

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

We continue to assess the need for valuation allowances against deferred tax assets based on determinations of whether it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Appropriate consideration is given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. Examples of positive evidence would include a strong earnings history, an event or events that would increase our taxable income through a continued reduction of expenses, and tax planning strategies that would indicate an ability to realize deferred tax assets. In circumstances where the significant positive evidence does not outweigh the negative evidence in regards to whether or not a valuation allowance is required, we have maintained valuation allowances on those net deferred tax assets. We established a valuation allowance against our U.S. net deferred tax assets in the second quarter of 2014, as described in more detail above.

As of September 30, 2014, we had unrecognized tax benefits of $4.7 million, which, if recognized, would have a favorable impact on our effective tax rate. It is reasonably possible that a reduction of unrecognized tax benefits of $2.6 million may occur within 12 months due to the expiration of statutes of limitation.

During the nine months ended September 30, 2014, we settled our audits with the U.S. federal tax authorities for the tax years ended 2008 and 2010-2011, reducing our unrecognized tax benefits by $2.7 million, of which $0.3 million had a favorable impact on our effective tax rate.

We file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. All U.S. federal tax years prior to 2012 are generally closed by statute or have been audited and settled with the applicable domestic tax authorities. All other jurisdictions are still open to examination beginning after 2008.

(14) Derivative Instruments

We use derivative instruments as part of our overall foreign currency and commodity risk management strategies to manage the risk of exchange rate movements that would reduce the value of our foreign cash flows and to minimize commodity price volatility. Foreign currency exchange rate movements create a degree of risk by affecting the value of sales made and costs incurred in currencies other than the U.S. dollar.

Certain of our derivative contracts contain provisions that require us to provide collateral. Since the counterparties to these financial instruments are large commercial banks and similar financial institutions, we do not believe that we are exposed to material counterparty credit risk. We do not anticipate nonperformance by any of the counter-parties to our instruments.

Foreign currency derivatives

We enter into foreign currency derivatives from time to time to attempt to manage exposure to changes in currency exchange rates. These foreign currency instruments, which include, but are not limited to, forward exchange contracts and purchased currency options, attempt to hedge global currency exposures such as foreign currency denominated debt, sales, receivables, payables, and purchases. Forward exchange contracts are agreements to exchange different currencies at a specified future date and at a specified rate. There was no ineffectiveness on these contracts designated as hedging instruments during the nine months ended September 30, 2013 and 2014, respectively.

In 2013 and 2014, we entered into foreign forward currency derivatives denominated in the Mexican peso, South African rand, Brazilian real, euro and Japanese yen. These derivatives were entered into to protect the risk that the eventual cash flows resulting from commercial and business transactions may be adversely affected by changes in exchange rates between the U.S. dollar and the Mexican peso, South African rand, Brazilian real, euro and Japanese yen. As of September 30, 2014, we had outstanding Mexican peso, South Afican rand, euro, and Japanese yen currency contracts with an aggregate notional amount of $124.2 million. The foreign currency derivatives outstanding as of September 30, 2014 have several maturity dates ranging from October 2014 to September 2015.

Commodity derivative contracts

We periodically enter into derivative contracts for certain refined oil products and natural gas. These contracts are entered into to protect against the risk that eventual cash flows related to these products may be adversely affected by future changes in prices. There was no ineffectiveness on these contracts during the nine months ended

19

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

September 30, 2014. As of September 30, 2014, we had outstanding derivative swap contracts for refined oil products with an aggregate notional amount of $11.6 million. These contracts have maturity dates ranging from October 2014 to December 2014.

Net Investment Hedges

We use certain intercompany debt to hedge a portion of our net investment in our foreign operations against currency exposure (net investment hedge). Intercompany debt designated in foreign currency and designated as a non-derivative net investment hedging instrument was $25.2 million and $11.5 million as of December 31, 2013 and September 30, 2014, respectively. Within our currency translation adjustment portion of other comprehensive income, we recorded gains of $0.2 million and $0.7 million in three months ended September 30, 2013 and September 30, 2014, respectively, resulting from these net investment hedges.

The fair value of all derivatives is recorded as assets or liabilities on a gross basis in our Consolidated Balance Sheets. The following tables present the fair values of our derivatives and their respective balance sheet locations as of December 31, 2013 and September 30, 2014:

	Asset Derivatives			Liability Derivatives
	Location	Fair  Value		Location	Fair  Value
As of December 31, 2013	(Dollars in Thousands)
Derivatives designated as cash flow hedges:
Foreign currency derivatives	Other receivables	$	772	Other payables	$	1,185
Commodity derivative contracts	Other current assets	834		Other current liabilities	—
Total fair value		$	1,606		$	1,185
As of September 30, 2014
Derivatives designated as cash flow hedges:
Foreign currency derivatives	Other receivables	$	1,130	Other payables	$	274
Commodity derivative contracts	Other current assets	—		Other current liabilities	532
Total fair value		$	1,130		$	806

	Asset Derivatives			Liability Derivatives
	Location	Fair  Value		Location	Fair  Value
As of December 31, 2013	(Dollars in Thousands)
Derivatives not designated as hedges:
Foreign currency derivatives	Other receivables	$	328	Other payables	$	24
Total fair value		$	328		$	24
As of September 30, 2014
Derivatives not designated as hedges:
Foreign currency derivatives	Other receivables	$	240	Other payables	$	336
Total fair value		$	240		$	336

20

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The location and amount of realized (gains) losses on derivatives are recognized in the Statements of Operations when the hedged item impacts earnings and are as follows for the three and nine months ended September 30, 2013 and 2014:

		Amount of (Gain)/Loss Recognized (Effective Portion)
Three Months Ended September 30,	Location of (Gain)/Loss Reclassified from Other Comprehensive Income (Effective Portion)	2013		2014
		(Dollars in Thousands)
Derivatives designated as cash flow hedges:
Foreign currency derivatives, excluding tax   of ($23) and $19, respectively	Cost of goods sold/Other expense / (income) / Revenue	$	228	$	(191	)
Commodity forward derivatives, excluding   tax of ($164) and ($35), respectively	Cost of goods sold / Revenue	$	454	$	98

		Amount of (Gain)/Loss Recognized
Three Months Ended September 30,	Location of (Gain)/Loss Recognized in the Consolidated Statement of Operations	2013		2014
		(Dollars in thousands)
Derivatives not designated as hedges:
Foreign currency derivatives	Cost of goods sold/Other expense (income)	$	509	$	444

		Amount of (Gain)/Loss Recognized (Effective Portion)
Nine Months Ended September 30,	Location of (Gain)/Loss Reclassified from Other Comprehensive Income (Effective Portion)	2013		2014
		(Dollars in Thousands)
Derivatives designated as cash flow hedges:
Foreign currency derivatives, excluding tax   of ($4) and ($14), respectively	Cost of goods sold/Other expense / (income) / Revenue	$	38	$	137
Commodity forward derivatives, excluding   tax of ($214) and ($45), respectively	Cost of goods sold / Revenue	$	591	$	124

		Amount of (Gain)/Loss Recognized
Nine Months Ended September 30,	Location of (Gain)/Loss Recognized in the Consolidated Statement of Operations	2013			2014
		(Dollars in thousands)
Derivatives not designated as hedges:
Foreign currency derivatives	Cost of goods sold/Other expense (income)	$	(912	)	$	383

Our foreign currency and commodity derivatives are treated as hedges and are required to be measured at fair value on a recurring basis. With respect to the inputs used to determine the fair value, we use observable, quoted rates that are determined by active markets and, therefore, classify the contracts as “Level 2”.

21

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(15) Guarantor Information

On November 20, 2012, GrafTech International Ltd. (the “Parent”) issued $300 million aggregate principal amount of Senior Notes. The Senior Notes mature on November 15, 2020 and bear interest at a rate of 6.375% per year, payable semi-annually in arrears on May 15 and November 15 of each year. The Senior Notes have been guaranteed on a senior basis by the following wholly-owned direct and indirect subsidiaries of the Parent: GrafTech Finance Inc., GrafTech Holdings Inc., GrafTech USA LLC, Seadrift Coke LLP, Fiber Materials, Inc., Intermat, GrafTech Global Enterprises Inc., GrafTech International Holdings Inc., GrafTech DE LLC, GrafTech Seadrift Holding Corp, GrafTech International Trading Inc., GrafTech Technology LLC, GrafTech NY Inc., and Graphite Electrode Network LLC.

    The guarantors of the Senior Notes, solely in their respective capacities as such, are collectively called the “Guarantors.” Our other subsidiaries, which are not guarantors of the Senior Notes, are called the “Non-Guarantors.”

    All of the guarantees are unsecured. All of the guarantees are full, unconditional (subject to limited exceptions described below) and joint and several. Each of the Guarantors are 100% owned, directly or indirectly, by the Parent. All of the guarantees of the Senior Notes continue until the Senior Notes have been paid in full, and payment under such guarantees could be required immediately upon the occurrence of an event of default under the Senior Notes. If a Guarantor makes a payment under its guarantee of the Senior Notes, it would have the right under certain circumstances to seek contribution from the other Guarantors.

The Guarantors will be released from the guarantees upon the occurrence of certain events, including the following:  the unconditional release or discharge of any guarantee or indebtedness that resulted in the creation of the guarantee of the Senior Notes by such Guarantor; the sale or other disposition, including by way of merger or consolidation or the sale of its capital stock, following which such Guarantor is no longer a subsidiary of the Parent; or the Parent's exercise of its legal defeasance option or its covenant defeasance option as described in the indenture applicable to the Senior Notes.  If any Guarantor is released, no holder of the Senior Notes will have a claim as a creditor against such Guarantor. The indebtedness and other liabilities, including trade payables and preferred stock, if any, of each Guarantor are effectively senior to the claim of any holders of the Senior Notes.

Investments in subsidiaries are recorded on the equity basis.

    The following tables set forth condensed consolidating balance sheets as of December 31, 2013 and September 30, 2014 and condensed consolidating statements of operations and comprehensive income for the three and nine months ended September 30, 2013 and 2014 and condensed consolidating statements of cash flows for the nine months endedSeptember 30, 2013 and 2014 of the Parent Guarantors and the Non-Guarantors.

Amounts presented in comprehensive income for the three and nine months ended September 30, 2013 have been revised.  Previously, the Company did not present comprehensive income of subsidiaries in the guarantor column. This amount has been revised to present $2.9 million in comprehensive loss for the guarantors during the three months ended September 30, 2013 and $4.0 million in comprehensive income during the nine months ended September 30, 2013.  

22

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEETS
As of December 31, 2013
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	4,752	$	7,136	$	—		$	11,888
Accounts receivable - affiliates	42,410		28,551		15,824		(86,785		)	—
Accounts receivable - trade	—		48,998		150,568		—			199,566
Inventories	—		174,935		315,479		—			490,414
Prepaid and other current assets	—		22,555		51,235		—			73,790
Total current assets	42,410		279,791		540,242		(86,785		)	775,658
Investment in affiliates	1,709,914		828,012		—		(2,537,926		)	—
Property, plant and equipment	—		540,273		280,712		—			820,985
Deferred income taxes	—		—		10,334		—			10,334
Goodwill	—		293,162		203,648		—			496,810
Notes receivable - affiliate	51,090		7,413		—		(58,503		)	—
Other assets	4,752		53,447		55,862		—			114,061
Total assets	$	1,808,166	$	2,002,098	$	1,090,798	$	(2,683,214	)	$	2,217,848
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable - affiliate	$	—	$	58,206	$	28,579	$	(86,785	)	$	—
Accounts payable - trade	—		41,971		73,241		—			115,212
Short-term debt	—		165		996		—			1,161
Accrued income and other taxes	2,678		4,736		23,273		—			30,687
Rationalizations	—		1,890		16,531		—			18,421
Supply chain financing liability	—		—		9,455		—			9,455
Other accrued liabilities	2,444		12,404		26,091		—			40,939
Total current liabilities	5,122		119,372		178,166		(86,785		)	215,875
Long-term debt - affiliate	—		51,090		7,413		(58,503		)	—
Long-term debt - third party	475,675		50,525		15,393		—			541,593
Other long-term obligations	—		66,590		31,357		—			97,947
Deferred income taxes	6,620		4,607		30,457		—			41,684
Stockholders' equity	1,320,749		1,709,914		828,012		(2,537,926		)	1,320,749
Total liabilities and stockholders' equity	$	1,808,166	$	2,002,098	$	1,090,798	$	(2,683,214	)	$	2,217,848

23

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEETS
As of September 30, 2014
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	1,362	$	9,516	$	—		$	10,878
Accounts receivable - affiliates	39,243		41,619		35,617		(116,479		)	—
Accounts receivable - trade	—		39,252		124,719		—			163,971
Inventories	—		161,791		256,686		—			418,477
Prepaid and other current assets	—		18,156		69,832		—			87,988
Total current assets	39,243		262,180		496,370		(116,479		)	681,314
Investment in affiliates	1,513,267		772,957		—		(2,286,224		)	—
Property, plant and equipment	—		433,350		232,205		—			665,555
Deferred income taxes	—		—		13,614		—			13,614
Goodwill	—		292,749		203,195		—			495,944
Notes receivable - affiliate	44,020		7,413		—		(51,433		)	—
Other assets	4,237		51,473		49,308		—			105,018
Total assets	$	1,600,767	$	1,820,122	$	994,692	$	(2,454,136	)	$	1,961,445
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable - affiliate	$	—	$	74,859	$	41,620	$	(116,479	)	$	—
Accounts payable - trade	—		36,316		62,406		—			98,722
Short-term debt	—		1,130		14		—			1,144
Accrued income and other taxes	343		3,659		22,071		—			26,073
Rationalizations	—		9,239		3,508		—			12,747
Other accrued liabilities	7,225		11,360		25,626		—			44,211
Total current liabilities	7,568		136,563		155,245		(116,479		)	182,897
Long-term debt - affiliate	—		44,020		7,413		(51,433		)	—
Long-term debt - third party	484,820		53,427		1,262		—			539,509
Other long-term obligations	—		59,604		30,380		—			89,984
Deferred income taxes	—		13,241		27,435		—			40,676
Stockholders' equity	1,108,379		1,513,267		772,957		(2,286,224		)	1,108,379
Total liabilities and stockholders' equity	$	1,600,767	$	1,820,122	$	994,692	$	(2,454,136	)	$	1,961,445

24

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the three months ended September 30, 2013
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	57,727		$	39,196		$	(96,923	)		$	—
Sales - third party	—			122,360			180,724			—				303,084
Net sales	—			180,087			219,920			(96,923		)		303,084
Cost of sales	—			155,803			207,560			(96,923		)		266,440
Gross profit	—			24,284			12,360			—				36,644
Research and development	—			2,994			—			—				2,994
Selling and administrative expenses	—			9,751			17,875			—				27,626
Rationalizations	—			2,424			12,169			—				14,593
Operating income	—			9,115			(17,684		)	—				(8,569		)
Other expense, net	—			(1,476		)	704			—				(772		)
Interest expense - affiliate	—			279			190			(469		)		—
Interest expense - third party	7,849			779			470			—				9,098
Interest income - affiliate	(272		)	(189		)	(8		)	469				—
Interest income - third party	—			—			(49		)	—				(49		)
(Loss) income before income taxes	(7,577		)	9,722			(18,991		)	—			`	(16,846		)
(Benefit) provision for income taxes	(2,743		)	1,904			(8,377		)	—				(9,216		)
Equity in earnings of subsidiary	(2,796		)	(10,614		)	—			13,410				—
Net income (loss)	$	(7,630	)	$	(2,796	)	$	(10,614	)	$	13,410			$	(7,630	)
Statements of Comprehensive Income
Net income (loss)	$	(7,630	)	$	(2,796	)	$	(10,614	)	$	13,410			$	(7,630	)
Other comprehensive (loss) income	5,706			5,706			3,892			(9,598		)		5,706
Comprehensive (loss) income	$	(1,924	)	$	2,910		$	(6,722	)	$	3,812			$	(1,924	)

25

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the three months ended September 30, 2014
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	68,424		$	38,171		$	(106,595	)		$	—
Sales - third party	—			93,457			167,001			—				260,458
Net sales	—			161,881			205,172			(106,595		)		260,458
Cost of sales	—			157,726			191,683			(106,595		)		242,814
Gross profit	—			4,155			13,489			—				17,644
Research and development	—			2,871			—			—				2,871
Selling and administrative expenses	—			11,347			15,633			—				26,980
Impairments	—			—			—			—				—
Rationalizations	—			(1,592		)	12,436			—				10,844
Operating loss	—			(8,471		)	(14,580		)	—				(23,051		)
Other (income) expense, net	—			461			688			—				1,149
Interest expense - affiliate	—			193			—			(193		)		—
Interest expense - third party	8,055			883			131			—				9,069
Interest income - affiliate	(193		)	—			—			193				—
Interest income - third party	—			—			(144		)	—				(144		)
Loss before income taxes	(7,862		)	(10,008		)	(15,255		)	—			`	(33,125		)
Provision for (benefit from) income taxes	(2,830		)	3,313			1,335			—				1,818
Equity in losses of subsidiary	(29,911		)	(16,590		)	—			46,501				—
Net (loss) income	$	(34,943	)	$	(29,911	)	$	(16,590	)	$	46,501			$	(34,943	)
Statements of Comprehensive Income
Net (loss) income	$	(34,943	)	$	(29,911	)	$	(16,590	)	$	46,501			$	(34,943	)
Other comprehensive income (loss)	(23,247		)	(23,247		)	(21,996		)	45,243				(23,247		)
Comprehensive (loss) income	$	(58,190	)	$	(53,158	)	$	(38,586	)	$	91,744			$	(58,190	)

26

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the nine months ended September 30, 2013
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	155,673		$	111,835		$	(267,508	)		$	—
Sales - third party	—			348,148			510,024			—				858,172
Net sales	—			503,821			621,859			(267,508		)		858,172
Cost of sales	—			431,146			560,419			(267,508		)		724,057
Gross profit	—			72,675			61,440			—				134,115
Research and development	—			8,874			—			—				8,874
Selling and administrative expenses	—			32,833			54,667			—				87,500
Rationalizations	—			2,424			12,169			—				14,593
Operating income	—			28,544			(5,396		)	—				23,148
Other (income) expense, net	—			(762		)	1,515			—				753
Interest expense - affiliate	—			1,112			566			(1,678		)		—
Interest expense - third party	23,393			2,374			1,286			—				27,053
Interest income - affiliate	(982		)	(565		)	(131		)	1,678				—
Interest income - third party	—			—			(162		)	—				(162		)
Income before income taxes	(22,411		)	26,385			(8,470		)	—			`	(4,496		)
Provision for income taxes	(8,113		)	6,922			(4,267		)	—				(5,458		)
Equity in earnings of subsidiary	15,260			(4,203		)	—			(11,057		)		—
Net income	$	962		$	15,260		$	(4,203	)	$	(11,057	)		$	962
Statements of Comprehensive Income
Net income	$	962		$	15,260		$	(4,203	)	$	(11,057	)		$	962
Other comprehensive (loss) income	(11,219		)	(11,219		)	(12,216		)	23,435				(11,219		)
Comprehensive (loss) income	$	(10,257	)	$	4,041		$	(16,419	)	$	12,378			$	(10,257	)

27

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the nine months ended September 30, 2014
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	192,740		$	106,742		$	(299,482	)		$	—
Sales - third party	—			315,387			510,046			—				825,433
Net sales	—			508,127			616,788			(299,482		)		825,433
Cost of sales	—			472,202			591,422			(299,482		)		764,142
Gross profit	—			35,925			25,366			—				61,291
Research and development	—			8,544			—			—				8,544
Selling and administrative expenses	—			35,479			53,545			—				89,024
Impairments	—			121,570			—			—				121,570
Rationalizations	—			(1,540		)	13,301			—				11,761
Operating loss	—			(128,128		)	(41,480		)	—				(169,608		)
Other expense (income), net	—			1,281			621			—				1,902
Interest expense - affiliate	—			629			—			(629		)		—
Interest expense - third party	24,010			2,529			684			—				27,223
Interest income - affiliate	(629		)	—			—			629				—
Interest income - third party	—			—			(257		)	—				(257		)
Loss before income taxes	(23,381		)	(132,567		)	(42,528		)	—			`	(198,476		)
(Benefit from) provision for income taxes	(8,417		)	17,712			(5,878		)	—				3,417
Equity in losses of subsidiary	(186,929		)	(36,650		)	—			223,579				—
Net (loss) income	$	(201,893	)	$	(186,929	)	$	(36,650	)	$	223,579			$	(201,893	)
Statements of Comprehensive Income
Net (loss) income	$	(201,893	)	$	(186,929	)	$	(36,650	)	$	223,579			$	(201,893	)
Other comprehensive income (loss)	(20,936		)	(20,936		)	(19,474		)	40,410				(20,936		)
Comprehensive (loss) income	$	(222,829	)	$	(207,865	)	$	(56,124	)	$	263,989			$	(222,829	)

28

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2013
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash provided by  operating activities:	$	(5,857	)	$	50,244		$	20,791		$	—		$	65,178
Cash flow from investing activities:
(Loans to) repayments from affiliates	7,015			—			—			(7,015		)	—
Capital expenditures	—			(37,081		)	(25,617		)	—			(62,698		)
Proceeds from derivative instruments	—			(22		)	874			—			852
Insurance recoveries	—			280			2,053			—			2,333
Net cash (used in) provided by          investing activities	7,015			(36,823		)	(22,690		)	(7,015		)	(59,513		)
Cash flow from financing activities:
Loans from (repayments to) affiliates	—			(7,015		)	—			7,015			—
Short-term debt borrowings	—			—			(4,082		)	—			(4,082		)
Revolving Facility borrowings	—			67,000			67,000			—			134,000
Revolving Facility reductions	—			(73,500		)	(45,000		)	—			(118,500		)
Principal payments on long term debt	—			(131		)	(58		)	—			(189		)
Supply chain financing	—			—			(14,422		)	—			(14,422		)
Proceeds from exercise of stock options	175			—			—			—			175
Purchase of treasury shares	(844		)	—			—			—			(844		)
Other	(489		)	(16		)	(6,701		)	—			(7,206		)
Net cash used in          financing activities	(1,158		)	(13,662		)	(3,263		)	7,015			(11,068		)
Net (decrease) increase in cash    and cash equivalents	—			(241		)	(5,162		)	—			(5,403		)
Effect of exchange rate changes    on cash and cash equivalents	—			—			(444		)	—			(444		)
Cash and cash equivalents at    beginning of period	—			4,425			12,892			—			17,317
Cash and cash equivalents    at end of period	$	—		$	4,184		$	7,286		$	—		$	11,470

29

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2014
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash (used in) provided by operating activities:	$	(10,274	)	$	50,298		$	42,865		$	—		$	82,889
Cash flow from investing activities:
Repayments from affiliates	7,070			—			—			(7,070		)	—
Capital expenditures	—			(49,756		)	(19,558		)	—			(69,314		)
Payments for (proceeds from) derivatives	—			(51		)	(522		)	—			(573		)
Proceeds from sale of assets	—			1,706			2,373			—			4,079
Insurance recoveries	—			—			2,834			—			2,834
Net cash provided by (used in)          investing activities	7,070			(48,101		)	(14,873		)	(7,070		)	(62,974		)
Cash flow from financing activities:
Repayments to affiliates	—			(7,070		)	—			7,070			—
Short-term debt borrowings	—			965			(982		)	—			(17		)
Revolving Facility borrowings	—			151,000			78,000			—			229,000
Revolving Facility reductions	—			(148,000		)	(92,000		)	—			(240,000		)
Principal payments on long term debt	—			(98		)	(60		)	—			(158		)
Supply chain financing	—			—			(9,455		)	—			(9,455		)
Proceeds from exercise of stock options	2,813			—			—			—			2,813
Purchase of treasury shares	(620		)	—			—			—			(620		)
Revolver facility refinancing	—			(2,384		)	(357		)	—			(2,741		)
Other	1,011			—			—			—			1,011
Net cash provided by (used in)          financing activities	3,204			(5,587		)	(24,854		)	7,070			(20,167		)
Net increase in cash    and cash equivalents	—			(3,390		)	3,138			—			(252		)
Effect of exchange rate changes    on cash and cash equivalents	—			—			(758		)	—			(758		)
Cash and cash equivalents at    beginning of period	—			4,752			7,136			—			11,888
Cash and cash equivalents    at end of period	$	—		$	1,362		$	9,516		$	—		$	10,878

Introduction to Part I, Item 2, and Part II, Item 1 and Item 1A

Important Terms. We define various terms to simplify the presentation of information in this Report. These terms, which definitions are incorporated herein by reference, are defined in “Part I – Preliminary Notes – Important Terms” of the Annual Report.

Presentation of Financial, Market and Legal Data. We present our financial information on a consolidated basis.

Unless otherwise noted, when we refer to dollars, we mean U.S. dollars.

Unless otherwise specifically noted, market and market share data in this Report are our own estimates or derived from sources described in “Part I – Preliminary Notes – Presentation of Financial, Market and Legal Data” in the Annual Report, which description is incorporated herein by reference. Our estimates involve risks and uncertainties and are subject to change based on various factors, including those discussed under “Forward Looking Statements and Risks” in this Report and “Forward Looking Statements” and “Risk Factors” in the Annual Report. We cannot guarantee the accuracy or completeness of this market and market share data and have not independently verified it. None of the sources has consented to the disclosure or use of data in this Report.

Reference is made to the Annual Report for background information on various risks and contingencies and other matters related to circumstances affecting us and our industry.

Neither any statement made in this Report nor any charge taken by us relating to any legal proceedings constitutes an admission as to any wrongdoing.

Forward Looking Statements and Risks. This Report contains forward looking statements. In addition, we or our representatives have made or may make forward looking statements on telephone or conference calls, by webcasts or emails, in person, in presentations or written materials, or otherwise. These include statements about such matters as future, targeted or expected (or the impact of current, future, expected or targeted): operational and financial performance; changes in production capacity in our operations and our competitors' or customers' operations and the utilization rates of that capacity; growth rates for, prices and sales of, and demand for, our products and our customers' products; costs of materials and production, including increases or decreases therein, our ability to pass on any such increases in our product prices or impose surcharges thereon, or customer or market demand to reduce our prices due to such decreases; changes in customer order patterns due to changes in economic conditions; productivity, business process and operational initiatives; our position in markets we serve; financing and refinancing activities; investments and acquisitions and the performance of the businesses underlying such acquisitions and investments; employment and contributions of key personnel; employee relations and collective bargaining agreements covering many of our operations; tax rates; capital expenditures and changes therein; nature and timing of restructuring and rationalization charges and payments; stock repurchase activities; supply chain management; customer and supplier contractual provisions and related opportunities and issues; competitive activities; strategic plans, initiatives and business projects; regional and global economic and industry market conditions, the timing and magnitude of changes in such conditions; interest rate management activities; currency rate management activities; deleveraging activities; rationalization, restructuring, realignment, strategic alliance, raw material and supply chain, technology development and collaboration, investment, acquisition, venture, operational, tax, financial and capital projects; legal proceedings, investigations, contingencies, and environmental compliance including any regulatory initiatives with respect to greenhouse gas emissions; consulting projects; potential offerings, sales and other actions regarding debt or equity securities of us or our subsidiaries; and costs, working capital, revenues, business opportunities, debt levels, cash flows, cost savings and reductions, margins, earnings and growth. The words “will,”“may,”“plan,”“estimate,”“project,”“believe,”“anticipate,”“expect,”“intend,”“should,”“would,”“could,”“target,”“goal,”“continue to,”“positioned to” and similar expressions, or the negatives thereof, identify some of these statements.

Our expectations and targets are not predictors of actual performance and historically our performance has deviated, often significantly, from our expectations and targets. Actual future events and circumstances (including future results and trends) could differ materially, positively or negatively, from those set forth in these statements due to various factors. These factors include:

• the possibility that additions to capacity for producing EAF steel, increases in overall EAF steel production capacity, and increases or other changes in steel production may not occur or may not occur at the rates that we anticipate or may not be as geographically disbursed as we anticipate;

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(Unaudited)

• the possibility that increases or decreases in graphite electrode manufacturing capacity (including growth by producers in developing countries), competitive pressures (including changes in, and the mix, distribution, and pricing of, competitive products), reduction in specific consumption rates, increases or decreases in customer inventory levels, or other changes in the graphite electrode markets may occur, which may impact demand for, prices or unit and dollar volume sales of graphite electrodes and growth or profitability of our graphite electrodes business;

• the possible failure of changes in EAF steel production or graphite electrode production to result in stable or increased, or offset decreases in, graphite electrode demand, prices, or sales volume;

• the possibility that a determination that we have failed to comply with one or more export controls or trade sanctions to which we are subject with respect to products or technology exported from the United States or other jurisdictions could result in civil or criminal penalties, denial of export privileges and loss of revenues from certain customers;

• the possibility that, for all of our product lines, capital improvement and expansion in our customers' operations or increases in demand for their products may not occur or may not occur at the rates that we anticipate or the demand for their products may decline, which may affect their demand for the products we sell to them, which could affect our profitability and cash flows as well as the recoverability of our assets;

• the possibility that assumptions related to future expectations of financial performance materially change and impact our goodwill and long-lived asset carrying values;

• the possibility that our financial assumptions and expectations materially change as a result of government or state-owned government subsidies, incentives and trade barriers;

• the possibility that current economic disruptions or other conditions may result in idling or permanent closing of blast furnace capacity or delay of blast furnace capacity additions or replacements which may affect demand and prices for our refractory products;

• the possibility that continued global consolidation of the world's largest steel producers could impact our business or industry;

• the possibility that average graphite electrode revenue per metric ton in the future may be different than current spot or market prices due to changes in product mix, changes in currency exchange rates, changes in competitive market conditions or other factors;

• the possibility that price increases, adjustments or surcharges may not be realized or that price decreases may occur;

• the possibility that current challenging economic conditions and economic demand reduction may continue to impact our revenues and costs;

• the possibility that U.S., European, Chinese, or other governmental monetary or fiscal policy may adversely affect global economic activity and demand for our products;

• the possibility that potential future cuts in defense spending by the United States government as a part of efforts to reduce federal budget deficits could reduce demand for certain of our products and associated revenue;

• the possibility that decreases in prices for energy and raw materials may lead to downward pressure on prices for our products and delays in customer orders for our products as customers anticipate possible future lower prices;

• the possibility that customers may delay or cancel orders;

• the possibility that we may not be able to reduce production costs or delay or cancel raw material purchase commitments;

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(Unaudited)

• the possibility that economic, political and other risks associated with operating globally, including national and international conflicts, terrorist acts, political and economic instability, civil unrest, community activism and natural or nuclear calamities might interfere with our supply chains, customers or activities in a particular location;

• the possibility that reductions in customers' production, increases in competitors' capacity, competitive pressures, or other changes in other markets we serve may occur, which may impact demand for, prices of or unit and dollar volume sales of, our other products, or growth or profitability of our other product lines, or change our position in such markets;

• the possibility that we will not be able to hire and retain key personnel, maintain appropriate relations with unions, associations and employees or to renew or extend our collective bargaining or similar agreements on reasonable terms as they expire or do so without a work stoppage or strike;

• the possibility that an adverse determination in litigation pending in Brazil involving disputes related to the proper interpretation of certain collectively bargained wage increase provisions applicable to both us and other employers in the Bahia region might result in the filing of claims against our Brazilian subsidiary;

• the possibility that a Brazilian graphite electrode antitrust investigation could result in material fines or penalties;

• the possibility of delays in or failure to achieve successful development and commercialization of new or improved Engineered Solutions products or that such products or solutions could be subsequently displaced by other products or technologies;

• the possibility that we will fail to develop new customers or applications for our Engineered Solutions products or such new product applications will not be adopted by the market place;

• the possibility that our manufacturing capabilities may not be sufficient or that we may experience delays in expanding or fail to expand our manufacturing capacity to meet demand for existing, new or improved products;

• the possibility that we may propose acquisitions or divestitures in the future, that we may not complete the acquisitions or divestitures, and that investments and acquisitions that we may make in the future may not be successfully integrated into our business or provide the performance or returns expected or that divestitures may not generate the proceeds anticipated;

• the possibility that challenging conditions or changes in the capital markets will limit our ability to undertake refinancing activities or obtain financing for growth and other initiatives, on acceptable terms or at all;

• the possibility that conditions or changes in the global equity markets may have a material impact on our future pension funding obligations and liabilities on our balance sheet;

• the possibility that the amount or timing of our anticipated capital expenditures may be limited by our financial resources or financing arrangements or that our ability to complete capital projects may not occur timely enough to adapt to changes in market conditions or changes in regulatory requirements;

• the possibility that the actual outcome of uncertainties associated with assumptions and estimates using judgment when applying critical accounting policies and preparing financial statements may have a material impact on our results of operations or financial position;

• the possibility that we may be unable to protect our intellectual property or may infringe the intellectual property rights of others, resulting in damages, limitations on our ability to produce or sell products or limitations on our ability to prevent others from using that intellectual property to produce or sell products;

• the occurrence of unanticipated events or circumstances or changing interpretations and enforcement agendas relating to legal proceedings or compliance programs;

• the occurrence of unanticipated events or circumstances or changing interpretations and enforcement agendas relating to health, safety or environmental compliance or remediation obligations or liabilities to third parties or relating to labor relations;

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(Unaudited)

• the possibility that new or expanded regulatory initiatives with respect to greenhouse gas emissions could increase the capital intensive nature of our business and add to our costs of production;

• the possibility that our provision for income taxes and effective income tax rate or cash tax rate may fluctuate significantly due to (i) changes in applicable tax rates or laws, (ii) changes in the sources of our income, (iii) changes in tax planning, (iv) new or changing interpretations of applicable regulations, (v) changes in profitability, (vi) changes in our estimate of our future ability to use foreign tax credits or other tax attributes, and (vii) other factors;

• the possibility of changes in interest or currency exchange rates or in inflation or deflation;

• the possibility that our outlook could be significantly impacted by, among other things, developments in North Africa, the Middle East, North Korea, and other areas of concern, the occurrence of further terrorist acts and developments resulting from the war on terrorism;

• the possibility that interruption in our major raw material, energy or utility supplies due to, among other things, natural or nuclear disasters, process interruptions, actions by producers and capacity limitations, may adversely affect our ability to manufacture and supply our products or result in higher costs;

• the possibility that the magnitude of changes in the cost of major raw materials, energy or utility suppliers by reason of shortages, changes in market pricing, pricing terms in applicable supply contracts, or other events may adversely affect our ability to manufacture and supply our products or result in higher costs;

• the possibility of interruptions in production at our facilities due to, among other things, critical equipment failure, which may adversely affect our ability to manufacture and supply our products or result in higher costs;

• the possibility that we may not achieve the earnings or other financial or operational metrics that we provide as guidance from time to time;

• the possibility that the anticipated benefits from rationalizations and other cost savings initiatives may be delayed or may not occur, may vary in cost or may result in unanticipated disruptions;

• the possibility of security breaches affecting our information technology systems;

• the possibility that our disclosure or internal controls may become inadequate because of changes in conditions or personnel or that those controls may not operate effectively and may not prevent or detect misstatements or errors;

• the amount, prices and timing of purchases, if any, of shares purchased pursuant to our share repurchase program;

• the possibility that severe economic conditions may adversely affect our business, liquidity or capital resources;

• the possibility that delays may occur in the financial statement closing process;

• the possibility of changes in performance that may affect financial covenant compliance or funds available for borrowing; and

• other risks and uncertainties, including those described elsewhere in this Report or our other SEC filings, as well as future decisions by us.

Occurrence of any of the events or circumstance described above could also have a material adverse effect on our business, financial condition, results of operations or cash flows or the market price of our common stock.

No assurance can be given that any future transaction about which forward looking statements may be made will be completed or as to the timing or terms of any such transaction.

All subsequent written and oral forward looking statements by or attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors. Except as otherwise required to be disclosed in periodic

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(Unaudited)

reports required to be filed by public companies with the SEC pursuant to the SEC's rules, we have no duty to update these statements.

For a more complete discussion of these and other factors, see “Risk Factors,” in Part I, Item 1A of our 2013 Annual Report on Form 10-K.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Global Economic Conditions and Outlook

Outlook. We are impacted in varying degrees, both positively and negatively, as global, regional or country conditions fluctuate.

In its October 7, 2014 report, the International Monetary Fund (IMF), reduced its estimate for 2014 global GDP growth to 3.3 percent, which is 0.4 percent lower than its April forecast. The report states that downside risks to the global economic recovery have increased due to geopolitical uncertainty and volatility in financial markets. Although recoveries in certain developed economies including the United States have been stronger than previously expected, the slowdown in emerging economies has contributed to the lower global growth projection.

The IMF stated that with a worsening of geopolitical tensions and a reversal of recent risk spread and volatility compression in financial markets, the downside risks have increased since the spring. The global economy would face medium-term risks of a stagnation and low potential growth in advanced economies and a decline in potential growth in emerging markets.

According to the World Steel Association, 2014 global steel production increased two percent, excluding China, through the end of September 2014.  While North American operating rates continued to show improvement in the third quarter of 2014, the European Union reported lower steel production year-over-year in the month of September, reversing prior growth trends. GrafTech continues to face a challenging operating environment and we have seen five to ten percent of graphite electrode shipments for the second half of 2014 being delayed into 2015, resulting in reduced graphite electrode production rates. We remain focused on execution of our cost savings initiatives and providing our customers with superior service and quality.

See below for a reconciliation of 2014 targeted EBITDA to targeted net income attributable to GrafTech International Ltd., the most directly comparable financial measure calculated and reported in accordance with GAAP:

	Full Year Target
	2014
	(Dollars in thousands)
EBITDA	$105,000 - $115,000
Adjustments
Depreciation and amortization	$(90,000)
Rationalization related depreciation	(30,324)
Rationalizations	(11,761)
Impairments	(121,570)
Rationalizations related charges	(23,345)
Advanced graphite materials customer bad debt and inventory charge	(4,829)
Proxy contest expenses	(2,438)
Operating income	(179,267) - (169,267)
Other (expense) income, net	(2,500)
Interest expense	(36,000)
Interest income	300
Income taxes	0 - (3,000)
Net (loss) income	$(217,467) - $(210,467)

*NOTE ON EBITDA: EBITDA is a non-GAAP financial measure that we currently calculate using GAAP amounts from the Consolidated Financial Statements. We believe that EBITDA measures are generally accepted as providing useful information

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(Unaudited)

regarding a company's ability to incur and service debt. We also believe that EBITDA measures provide useful information about the productivity and cash generation potential of its ongoing businesses. Management uses EBITDA measures as well as other financial measures in connection with its decision-making activities. EBITDA measures should not be considered in isolation or as a substitute for net income (loss), cash flows from operations or other consolidated income or cash flow data prepared in accordance with GAAP. Our method for calculating EBITDA measures may not be comparable to methods used by other companies and is not the same as the method for calculating EBITDA measures under our senior secured Revolving Facility.

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(Unaudited)

Results of Operations and Segment Review

Three Months Ended September 30, 2013 as Compared to Three Months Ended September 30, 2014.

The tables presented in our period-over-period comparisons summarize our Consolidated Statements of Operations and illustrate key financial indicators used to assess the consolidated financial results. Financial information is presented for the three months ended September 30, 2013 and September 30, 2014. Throughout our MD&A, changes that are less than 5% or less than $1.0 million, may be deemed not meaningful and are generally excluded from the discussion.

	For the Three Months  Ended
	September 30,							Increase			%
(in thousands, except per share data and % change)	2013				2014			(Decrease)			Change
Net sales	$	303,084			$	260,458		$	(42,626	)	(14	)%
Cost of sales	266,440				242,814			(23,626		)	(9	)%
Gross profit	36,644				17,644			(19,000		)	(52	)%
Research and development	2,994				2,871			(123		)	(4	)%
Selling and administrative expenses	27,626				26,980			(646		)	(2	)%
Rationalizations	14,593				10,844			(3,749		)	(26	)%
Operating loss	(8,569		)	—	(23,051		)	(14,482		)	169	%
Other (income) expense, net	(772		)		1,149			1,921			(249	)%
Interest expense	9,098				9,069			(29		)	—	%
Interest income	(49		)		(144		)	(95		)	194	%
Loss before provision for income taxes	(16,846		)		(33,125		)	(16,279		)	97	%
(Benefit from) Provision for income taxes	(9,216		)		1,818			11,034			(120	)%
Net loss	$	(7,630	)		$	(34,943	)	$	(27,313	)	358	%
Basic loss per common share:	$	(0.06	)		$	(0.26	)	$	(0.20	)
Diluted loss per common share:	$	(0.06	)		$	(0.26	)	$	(0.20	)

Net sales, by operating segment for the three months ended September 30, 2013 and September 30, 2014 were:

	For the Three Months Ended
	September 30,				(Decrease)			%
(in thousands, except per % change)	2013		2014		Increase			Change
Industrial Materials	$	233,277	$	208,573	$	(24,704	)	(11	)%
Engineered Solutions	69,807		51,885		(17,922		)	(26	)%
Total net sales	$	303,084	$	260,458	$	(42,626	)	(14	)%

An analysis of the components of change in net sales for Industrial Materials and Engineered Solutions is set forth in the following table:

	Volume		Price/Mix		Currency		Net Change
Industrial Materials	(5	)%	(6	)%	—	%	(11	)%
Engineered Solutions	(19	)%	(7	)%	—	%	(26	)%

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(Unaudited)

Net sales. Net sales for our Industrial Materials segment decreased to $208.6 million in the three months ended September 30, 2014 from $233.3 million in the three months ended September 30, 2013. This decrease was driven by the continued deterioration of the realized selling price of graphite electrodes and decreased graphite electrode sales volumes outside of the U.S. The weighted average selling price, excluding currency impacts, of electrodes in the three months ended September 30, 2014 decreased approximately 8% compared to the three months ended September 30, 2013. Additionally, our needle coke business experienced third party price declines in the three months ended September 30, 2014 compared to the same period of 2013. We also experienced decreased third party sales volume of needle coke as we are sourcing a greater percentage of needle coke internally.

Net sales for our Engineered Solutions segment decreased to $51.9 million in the three months ended September 30, 2014 compared to net sales of $69.8 million in the three months ended September 30, 2013. The decrease in revenue was primarily driven by both decreased pricing and decreased volumes for our thermal solutions serving the advanced consumer electronics markets.

Cost of sales. For the three months ended September 30, 2014, we experienced decreases in cost of sales of $23.6 million compared to the same period of 2013. Costs related to rationalization initiatives recorded in cost of sales for the three months ended September 30, 2014 and 2013 were $8.1 million and $3.0 million, respectively. Excluding these charges, cost of sales decreased by $28.7 million compared to the three months ended September 30, 2013. The decrease was primarily driven by lower sales volumes for our needle coke products as a result of an increase in internal coke usage and reduced graphite electrode manufacturing costs driven by our rationalization initiatives. 

Rationalizations. During the three months ended September 30, 2014, we recorded a $10.8 million charge for rationalizations, primarily related to severance and contract termination costs related to our corporate and research and development rationalization. This rationalization initiative is driving changes to our operating and management structure in order to streamline, simplify and decentralize the organization. These actions are expected to generate annualized recurring cost savings of approximately $30 million, approximately 75 percent of which will be reflected in overhead expense and the remainder in costs of goods sold. The majority of the savings are expected to be realized in 2015. There will not be a material benefit from these actions in 2014. See Note 2 to the financial statements for further discussion of rationalization activities.

During the three months ended September 30, 2013, we recorded a $14.6 million charge for rationalizations, primarily related to severance charges for our Industrial Materials segment. These charges were due to the planned closures of our South Africa and Brazil graphite electrode plants and our machine shop in Russia, as well as headcount reductions throughout our Industrial Materials segment and at our corporate facility in Parma, Ohio. See Note 2 to the financial statements for further discussion of rationalization activities.

Other expense (income). During the three months ended September 30, 2013, we recorded a $2.0 million gain in other expense due to the favorable resolution of a previously recorded loss contingency.

Segment operating income (loss). Corporate expenses are allocated to segments based on each segment’s percentage of consolidated net sales. The following table represents our operating income (loss) by segment for the three months ended September 30, 2013 and September 30, 2014:

	For the Three Months Ended September 30,
	2013			2014
	(Dollars in thousands)
Industrial Materials	$	(12,945	)	$	(7,219	)
Engineered Solutions	4,376			(15,832		)
Total segment operating loss	$	(8,569	)	$	(23,051	)

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(Unaudited)

The percentage relationship of cost of operations to net sales for Industrial Materials and Engineered Solutions is set forth in the following table: 

	For the Three Months Ended September 30,
	(Percentage of sales)
	2013		2014		Change
Industrial Materials	106	%	104	%	(2	)%
Engineered Solutions	94	%	131	%	37	%

Segment operating costs and expenses as a percentage of net sales for Industrial Materials decreased to 104% for the three months ended September 30, 2014 compared to 106% for the three months ended September 30, 2013. During the three months ended September 30, 2013, rationalization and related expenses were $14.6 million compared to $9.7 million in the three months ended September 30, 2014. Excluding these charges, Industrial Materials was essentially break even for both periods. Although we experienced significant cost savings as a result of our rationalization initiatives, the continued downward pricing pressure for both our graphite electrodes and needle coke products, as well as volume decreases, eroded operating income to break even levels.

 Segment operating costs and expenses as a percentage of sales for Engineered Solutions increased from 94% for the three months ended September 30, 2013 to 131% for the three months ended September 30, 2014 due in part to our recently announced rationalization initiatives. Excluding these rationalization and related costs of $9.4 million, operating expenses as a percentage of sales would have been 109%, a 15% increase from the three months ended September 30, 2013. Our advanced consumer electronics products saw significant margin contraction, driven by weak end user demand for some of our customers' products. Additionally, we recorded bad debt expense and inventory write-downs totaling $4.8 million due to the unexpected bankruptcy of a customer within our Advanced Graphite Materials ("AGM") line of business during the three months ended September 30, 2014.

Provision for income taxes. The following table summarizes the expense/(benefit) for income taxes for the three months ended September 30, 2013 and September 30, 2014:  

	For the Three Months Ended September 30,
	2013			2014
	(Dollars in thousands)
Tax (benefit) expense	$	(9,216	)	$	1,818
Pretax loss	$	(16,846	)	$	(33,125	)
Effective tax rates	54.7		%	(5.5		)%

For the three months ended September 30, 2014, the effective tax rate differs from the U.S. statutory rate of 35% primarily due to the recording of a valuation allowance against U.S. net deferred tax assets. During the second quarter of 2014, GrafTech impaired certain long-lived assets and announced the exit of certain product lines within our AGM product group. See Note 2 to the financial statements. The impairment charges and other impairment related charges were incurred primarily in the U.S. As a result it is no longer sufficiently assured that it is more likely than not that we will generate sufficient future U.S. taxable income to realize our U.S. net deferred tax assets. As a result of recent losses, we recognized a $57.0 million non-cash charge in the second quarter of 2014 to increase the valuation allowance against these deferred income tax assets. During the third quarter of 2014, we again incurred a loss in the U.S. As a result, a valuation allowance against the related deferred tax asset has been reflected in the quarterly effective tax rate. The recognition of the valuation allowance does not result in or limit our ability to utilize these tax assets in the future.

For the three months ended September 30, 2013, the effective tax rate differs from the U.S. statutory rate of 35% primarily due to the jurisdictional mix of income driven by rationalization charges incurred in the quarter. In addition, our tax rate for the three months ended September 30, 2013 was favorably impacted by the effective resolution of uncertain tax positions from prior years and by tax credits that were recognized in support of the research and development efforts of our Engineered Solutions products.

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Nine Months EndedSeptember 30, 2013 as Compared to Nine Months EndedSeptember 30, 2014.

The tables presented in our period-over-period comparisons summarize our Consolidated Statements of Operations and illustrate key financial indicators used to assess the consolidated financial results. Financial information is presented for the nine months ended September 30, 2013 and September 30, 2014. Throughout our MD&A, changes that are less than 5% or less than $1.0 million, may be deemed not meaningful and are generally excluded from the discussion.

	For the Nine Months Ended
	September 30,						Increase			%
(in thousands, except per share data and % change)	2013			2014			(Decrease)			Change
Net sales	$	858,172		$	825,433		$	(32,739	)	(4	)%
Cost of sales	724,057			764,142			40,085			6	%
Gross profit	134,115			61,291			(72,824		)	(54	)%
Research and development	8,874			8,544			(330		)	(4	)%
Selling and administrative expenses	87,500			89,024			1,524			2	%
Rationalizations	14,593			11,761			(2,832		)	(19	)%
Impairments	—			121,570			121,570			100	%
Operating income (loss)	23,148			(169,608		)	(192,756		)	(833	)%
Other expense, net	753			1,902			1,149			153	%
Interest expense	27,053			27,223			170			1	%
Interest income	(162		)	(257		)	(95		)	59	%
Loss before provision for income taxes	(4,496		)	(198,476		)	(193,980		)	4,315	%
(Benefit from) provision for income taxes	(5,458		)	3,417			8,875			(163	)%
Net income (loss)	$	962		$	(201,893	)	$	(202,855	)	(21,087	)%
Basic income (loss) per common share:	$	0.01		$	(1.48	)	$	(1.49	)
Diluted income (loss) per common share:	$	0.01		$	(1.48	)	$	(1.49	)

Net sales, by reportable segment for the nine months ended September 30, 2013 and September 30, 2014 were:

	For the Nine Months Ended September 30,				(Decrease)			%
(in thousands, except per % change)	2013		2014		Increase			Change
Industrial Materials	$	673,394	$	634,004	$	(39,390	)	(6	)%
Engineered Solutions	184,778		191,429		6,651			4	%
Total net sales	$	858,172	$	825,433	$	(32,739	)	(4	)%

An analysis of the components of change in net sales for Industrial Materials and Engineered Solutions is set forth in the following table:

	Volume		Price/Mix		Currency		Net Change
Industrial Materials	4	%	(11	)%	1	%	(6	)%
Engineered Solutions	9	%	(5	)%	—	%	4	%

Net sales. Net sales for our Industrial Materials segment decreased by $39.4 million in the nine months endedSeptember 30, 2014 compared to the nine months endedSeptember 30, 2013. Net sales were impacted by a deterioration in the realized selling price of electrodes in the nine months endedSeptember 30, 2014. The weighted average selling price, excluding currency impacts, of electrodes in the nine months endedSeptember 30, 2014

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(Unaudited)

decreased approximately 11% compared to the nine months endedSeptember 30, 2013. Partially offsetting the decrease in electrode pricing was an increase in segment volumes of 4%, driven primarily by a 7% increase in graphite electrode volumes, offset slightly by lower third party sales and pricing in our needle coke business as we have sourced a greater percentage of needle coke internally.

Net sales for our Engineered Solutions segment increased $6.7 million in the nine months endedSeptember 30, 2014 compared to the nine months endedSeptember 30, 2013. Sales of our AGM products in the nine months ended September 30, 2014 increased $21.2 million compared to the same period of 2013. The increase in revenue was primarily driven by $17.5 million of new product sales of high temperature furnace systems servicing a single customer that filed for bankruptcy in October 2014, which has created uncertainty related to future high temperature furnace systems sales. Offsetting this increase was a decrease in our advanced electronics technologies product sales of $11.8 million due to pricing and volume declines in products serving the advanced consumer electronics markets.

Cost of sales. For the nine months endedSeptember 30, 2014, we experienced increases in cost of sales of $40.1 million compared to the nine months endedSeptember 30, 2013. Excluding rationalization and impairment related charges (primarily accelerated depreciation), cost of sales decreased $2.4 million. This decrease was primarily driven by lower graphite electrode volumes, an improved cost structure as a result of our rationalization initiatives and lower input costs due to the increased internal sourcing of our needle coke.

Rationalizations. During the nine months ended September 30, 2014, we recorded a $11.7 million charge for rationalizations, primarily related to severance and contract termination costs related to our Engineered Solutions and corporate and research and development rationalizations. The corporate and research and development initiative resulted in the changes to our operating and management structure in order to streamline, simplify and decentralize the organization. These actions are expected to generate annualized recurring cost savings of approximately $30 million, approximately 75 percent of which will be reflected in overhead expense and the remainder in costs of goods sold. The majority of the savings are expected to be realized in 2015. There will not be a material benefit from these actions in 2014. See Note 2 to the financial statements for further discussion of rationalization activities.

During the nine months ended September 30, 2013, we recorded a $14.6 million charge for rationalizations, primarily related to severance charges for our Industrial Materials segment. These charges were due to the planned closures of our South Africa and Brazil graphite electrode plants and our machine shop in Russia, as well as headcount reductions throughout our Industrial Materials segment and at our corporate facility in Parma, Ohio. See Note 2 to the financial statements for further discussion of rationalization activities.

Impairments. In the second quarter of 2014, we announced additional rationalization initiatives in our Engineered Solutions segment resulting from deteriorated pricing and competitor responses for certain products (see Note 2 to the financial statements). As a result we recorded long-lived asset impairment charges of $121.6 million and other related charges totaling $13.4 million. Going forward, we anticipate that these actions will result in annual savings of $18 million, with approximately $1 million to be realized in 2014.

Other expense (income). During the nine months ended September 30, 2013, we recorded a $2.0 million gain in other expense due to the favorable resolution of a previously recorded loss contingency.

Segment operating income (loss). Corporate expenses are allocated to segments based on each segment’s percentage of consolidated sales. The following table represents our operating income (loss) by segment for the nine months ended September 30, 2013 and September 30, 2014: 

	For the Nine Months Ended
	September 30,
	2013		2014
	(Dollars in thousands)
Industrial Materials	$	10,663	$	(28,009	)
Engineered Solutions	12,485		(141,599		)
Total segment operating income (loss)	$	23,148	$	(169,608	)

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The percentage relationship of cost of operations to net sales for Industrial Materials and Engineered Solutions is set forth in the following table:

	For the Nine Months Ended
	September 30,
	(Percentage of sales)
	2013		2014		Change
Industrial Materials	98	%	104	%	6	%
Engineered Solutions	93	%	174	%	47	%

Segment operating costs and expenses as a percentage of net sales for Industrial Materials increased to 104% for the nine months ended September 30, 2014 compared to 98% for the nine months ended September 30, 2013. Excluding rationalization and related charges of $36.1 million for the nine months ended September 30, 2014, operating income as a percentage of sales was essentially break even. For the nine months ended September 30, 2013, excluding rationalization and related costs, operating expenses as a percentage of sales was 96%. Although we experienced significant cost savings as a result of our rationalization initiatives in the nine months ended September 30, 2014, the continued downward pricing pressure for both our graphite electrodes and needle coke products, as well as volume decreases, eroded operating income to break even levels.

Segment operating costs and expenses as a percentage of sales for Engineered Solutions increased from 93% for the nine months ended September 30, 2013 to 174% for the nine months ended September 30, 2014 due to rationalization initiatives and related impairments. Excluding these costs of $142.9 million, as well as charges related to inventory write-offs and bad debt expenses related to an unexpected bankruptcy of a advanced graphite materials customer, segment operating costs and expenses as a percentage of sales would have increased slightly to 97%. This increase was due to margin contraction caused by decreased pricing and volume in our consumer electronics business and higher costs related to the introduction of new products into the market.

Provision for income taxes. The following table summarizes the expense/(benefit) for income taxes for the nine months ended September 30, 2013 and September 30, 2014:  

	For the Nine Months Ended
	September 30,
	2013			2014
	(Dollars in thousands)
Tax (benefit) expense	$	(5,458	)	$	3,417
Pretax loss	$	(4,496	)	$	(198,476	)
Effective tax rates	121.4		%	(1.7		)%

For the nine months ended September 30, 2014, the effective tax rate differs from the U.S. statutory rate of 35% primarily due to the recording of a valuation allowance against our U.S. deferred tax assets. During the second quarter of 2014, GrafTech impaired certain long-lived assets and announced the exit of certain product lines within our AGM product group. See Note 2 to the financial statements. The impairment charges and other impairment related charges were incurred primarily in the U.S. As a result it is no longer sufficiently assured that it is more likely than not that we will generate sufficient future U.S. taxable income to realize our U.S. net deferred tax assets. As a result of recent losses, we recognized a $57.0 million non-cash charge in the second quarter of 2014 to increase the valuation allowance against these deferred income tax assets. During the third quarter of 2014, we again incurred a loss in the U.S. As a result, a valuation allowance against the related deferred tax asset has been reflected in the nine month effective tax rate. The recognition of the valuation allowance does not result in or limit our ability to utilize these tax assets in the future.

The effective tax rate for the nine months ended September 30, 2013 differs from the U.S. statutory rate of 35% primarily due to the jurisdictional mix of income, which was driven by the rationalization charges associated with the global initiative to reduce our Industrial Materials cost base and improve our competitive position as stated above. In addition, our tax rate for the nine months ended September 30, 2013 was favorably impacted by the effective

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resolution of uncertain tax positions from prior years and by tax credits that were recognized in support of the research and development efforts of our Engineered Solutions products.

Effects of Changes in Currency Exchange Rates

When the currencies of non-U.S. countries in which we have a manufacturing facility decline (or increase) in value relative to the U.S. dollar, this has the effect of reducing (or increasing) the U.S. dollar equivalent cost of sales and other expenses with respect to those facilities. In certain countries where we have manufacturing facilities, and in certain instances where we price our products for sale in export markets, we sell in currencies other than the dollar. Accordingly, when these currencies increase (or decline) in value relative to the dollar, this has the effect of increasing (or reducing) net sales. The result of these effects is to increase (or decrease) operating profit and net income.

Many of the non-U.S. countries in which we have a manufacturing facility have been subject to significant economic and political changes, which have significantly impacted currency exchange rates. We cannot predict changes in currency exchange rates in the future or whether those changes will have net positive or negative impacts on our net sales, cost of sales or net income.

For net sales of Industrial Materials, the impact of changes in the average exchange rates of other currencies against the U.S. dollar for the nine months ended September 30, 2014 was an increase of $4.3 million compared to the same period of 2013. The impact of the exchange rate changes on cost of sales of Industrial Materials for the nine months ended September 30, 2014 was an increase of $0.2 million compared to the same period of 2013. Changes in currency exchange rates increased net sales of our Engineered Solutions segment by $0.5 million and increased cost of sales by $0.4 million in the nine months ended September 30, 2014 as compared to the same period for 2013.

As part of our cash management, we also have intercompany loans between our subsidiaries. These loans are deemed to be temporary and, as a result, remeasurement gains and losses on these loans are recorded as currency gains / losses in other income (expense), net, on the Consolidated Statements of Operations.

The remeasurement of intercompany loans and the effect of transaction gains and losses on intercompany activities resulted in a gain of $1.6 million in the nine months ended September 30, 2013 compared to a loss of $1.5 million in the nine months ended September 30, 2014.

We have in the past and may in the future use various financial instruments to manage certain exposures to specific financial market risks caused by currency exchange rate changes, as described under “Part I, Item 3–Quantitative and Qualitative Disclosures about Market Risk”.

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Liquidity and Capital Resources

We believe that we have adequate liquidity to meet our needs. As of September 30, 2014, we had cash and cash equivalents of $10.9 million, long-term debt of $539.5 million, short-term debt of $1.1 million and stockholder’s equity of $1,108 million. We also had $277 million of unused borrowing capacity under the Revolving Facility (after considering financial covenant restrictions and outstanding letters of credit of approximately $5.7 million).

We use cash flow from operations, funds from supply chain financing, and funds available under the Revolving Facility (subject to continued compliance with the financial covenants and representations under the Revolving Facility) as well as cash on hand as our primary sources of liquidity. Disruptions in the U.S. and international financial markets could adversely affect our liquidity and the cost and availability of financing to us in the future. As a part of our cash management activities, we manage accounts receivable credit risk, collections, and accounts payable vendor terms to maximize our free cash at any given time and minimize accounts receivable losses. Our uses of funds available to us (other than for operations) have consisted principally of capital expenditures, the repurchase of common shares outstanding, acquisitions and associated expenses, and debt reduction payments and other obligations.

On April 23, 2014, GrafTech and certain of its subsidiaries entered into an Amended and Restated Credit Agreement for the Revolving Facility that provides for, among other things, a five-year tenor, reduced borrowing spreads and greater financial flexibility. The Revolving Credit Facility has a maximum borrowing capacity of $470 million principal and matures in April 2019. As of September 30, 2014, we had outstanding borrowings drawn from the Revolving Facility of $54.0 million and outstanding letters of credit of $5.7 million. 

The interest rate applicable under the Amended and Restated Credit Agreement is, at GrafTech’s option, either LIBOR plus a margin ranging from 1.25% to 2.00% (depending on our total net leverage ratio) or, in the case of dollar denominated loans, the alternate base rate plus a margin ranging from 0.25% to 1.00% (depending upon such ratio). The alternate base rate is the highest of (i) the prime rate announced by JPMorgan Chase Bank, N.A., (ii) the federal fund effective rate plus one-half of 1.0% and (iii) the London interbank offering rate (as adjusted) for a one-month period plus 1.0%. We pay a per annum fee ranging from 0.20% to 0.35% (depending on our total leverage ratio) on the undrawn portion of the commitments under the Revolving Facility.

As of September 30, 2014, we were in compliance with all financial and other covenants contained in the Revolving Facility. These covenants include maintaining a cash minimum interest coverage ratio of at least 2.50 to 1.00 and a maximum senior secured leverage ratio of 3.00 to 1.00, which are measured based on a rolling average of the prior four quarters. Based on expected operating results and expected cash flows, we expect to be in compliance with these covenants through December 31, 2014. If we were to believe that we would not continue to comply with these covenants, we would seek an appropriate waiver or amendment from the lenders thereunder. We cannot assure you that we would be able to obtain such waiver, amendment or refinancing on acceptable terms or at all.

We have a supply chain financing arrangement with a financing party that provides additional working capital liquidity of up to $49.3 million. Under this arrangement, we essentially assigned our rights to purchase needle coke from a third-party supplier to the financing party. The financing party purchases the product from our supplier under the supplier's standard payment terms and then immediately resells it to us under longer payment terms. The financing party pays the supplier the purchase price for the product and then we pay the financing party. Our payment to the financing party for this needle coke includes a mark-up (the “Mark-Up”). The Mark-Up is subject to quarterly reviews. In effect, we have a longer period of time to pay the financing party than by purchasing directly from the supplier which helps us maintain a balanced cash conversion cycle between inventory payments and receivables collection. We recognized Mark-Up of $0.4 million as interest expense in the nine months endedSeptember 30, 2013 and nil as in the nine months ended September 30, 2013.

As of September 30, 2014, approximately 90% of our debt consisted of fixed rate or zero interest rate obligations compared to 86% as of December 31, 2013.

Cash Flow and Plans to Manage Liquidity. Our cash flow typically fluctuates significantly between quarters due to various factors. These factors include customer order patterns, fluctuations in working capital requirements, timing of capital expenditures, acquisitions, stock repurchases and other factors.

Certain of our obligations could have a material impact on our liquidity. Cash flow from operations and from financing activities services payment of our obligations, thereby reducing funds available to us for other purposes. As

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of September 30, 2014, we had $277 million of unused borrowing capacity under the Revolving Facility (after considering financial covenant restrictions and outstanding letters of credit of approximately $5.7 million). Potential uses of this capacity include capital expenditures, acquisitions, debt repayments, stock repurchases and other general purposes, including cash outflows related to rationalization activities. Continued volatility in the global economy may require additional borrowings under the Revolving Facility. An improving economy, while resulting in improved results of operations, could increase our cash requirements to purchase inventories, make capital expenditures and fund payables and other obligations until increased accounts receivable are converted into cash. A downturn could significantly and negatively impact our results of operations and cash flows, which, coupled with increased borrowings, could negatively impact our credit ratings, our ability to comply with debt covenants, our ability to secure additional financing and the cost of such financing, if available.

Based on expected operating results and expected cash flows, we expect to be in compliance with our existing financial covenants through December 31, 2014. The non-cash portion of rationalization charges do not affect the Company's liquidity or compliance with debt covenants.

In order to seek to minimize our credit risks, we reduce our sales of, or refuse to sell (except for cash on delivery or under letters of credit) our products to some customers and potential customers. In the current economic environment, our customers may experience liquidity shortages or difficulties in obtaining credit, including letters of credit. Our unrecovered trade receivables worldwide have not been material during the last 3 years individually or in the aggregate. We cannot assure you that we will not be materially adversely affected by accounts receivable losses in the future.

We manage our capital expenditures taking into account quality, plant reliability, safety, environmental and regulatory requirements, prudent or essential maintenance requirements, global economic conditions, available capital resources, liquidity, long-term business strategy and return on invested capital for the relevant expenditures, cost of capital and return on invested capital of the relevant segment and GrafTech as a whole, and other factors. We focus on growth capital expenditures which exceed our weighted average cost of capital.  We prioritize projects with superior returns, which are often associated with high growth markets.

We had positive cash flow from operating activities during 2010, 2011, 2012, 2013 and through September 30, 2014. Although the global economic environment experienced significant swings in these periods, our working capital management and cost-control initiatives allowed us to remain operating cash flow positive in both times of declining and improving operating results. Additionally, we continually look at means to enhance our liquidity and believe that many options are available to us to enhance both our near and long term liquidity. We plan to further reduce our inventory levels which will provide additional cash flow and we may enter into accounts receivable factoring arrangements ($50 million of which are permitted under the Revolving Facility).

On July 24, 2012, our Board of Directors authorized a repurchase program for up to ten million shares. Purchases under the program may take place from time to time in the open market, or through privately negotiated transactions, as market, industry and economic conditions warrant. No shares have yet been purchased through this repurchase program. In addition, upon the vesting or payment of stock awards, an employee may elect receipt of the full share amount and either pay the resulting taxes or have shares sold in the open market to cover the tax obligation. We sometimes elect to purchase these shares rather than have them sold in the open market.

Related Party Transactions. Mr. Nathan Milikowsky, a current director of GrafTech and previously a director of GrafTech from December 2010 through May 2013, and certain members of his immediate family and certain entities in which he and members of his immediate family have interests, were substantial equity owners of Seadrift and C/G prior to the acquisitions of those entities by the Company. In connection with those acquisitions, Mr. Milikowsky, his immediate family members and those entities received a portion of the aggregate consideration paid to the equity holders of Seadrift and C/G pursuant to the Seadrift Merger Agreement and the C/G Merger Agreement, which was comprised of shares of the Company's common stock, cash and Senior Subordinated Notes.

We have not engaged in or been a party to any other material transactions with affiliates or related parties except for transactions with our current or former subsidiaries, compensatory transactions with directors and officers including employee benefits, stock option and restricted stock grants, compensation deferral, stock purchases, and customary indemnification and expense advancement arrangements.

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(Unaudited)

Cash Flows.

The following table summarizes our cash flow activities:

	For the Nine Months Ended
	September 30,
	2013			2014
	(Dollars in millions)
Cash flow provided by (used in):
Operating activities	$	65.2		$	82.9
Investing activities	$	(59.5	)	$	(63.0	)
Financing activities	$	(11.1	)	$	(20.2	)

Operating Activities

Cash flow from operating activities represents cash receipts and cash disbursements related to all of our activities other than investing and financing activities. Operating cash flow is derived by adjusting net income (loss) for:

• Non-cash items such as depreciation and amortization; post retirement obligations, severance and pension plan changes; and stock-based compensation charges;

• Gains and losses attributed to investing and financing activities such as gains and losses on the sale of assets and unrealized currency transaction gains and losses;

• Changes in operating assets and liabilities which reflect timing differences between the receipt and payment of cash associated with transactions and when they are recognized in results of operations.

The net impact of the changes in working capital (operating assets and liabilities), which are discussed in more detail below, include the impact of changes in: receivables, inventories, prepaid expenses, accounts payable, accrued liabilities, accrued taxes, interest payable, and payments of other current liabilities.

We continue to attempt to maximize our operating cash flows by focusing on working capital items that are most directly affected by changes in sales volume, such as accounts receivable, inventories and accounts payable.

During the nine months ended September 30, 2013, changes in working capital resulted in a net use of funds of $22.0 million which was impacted by:

• net cash outflows from increases in inventories of $13.6 million primarily due to increased volumes on hand as a result of seasonally variability and the wind down of third-party needle coke purchase commitments;

• net cash outflows from decreases in accounts payable and accruals of $47.5 million through normal operations;

• increase in rationalization accruals of $14.1 million;

• net cash inflows in accounts receivable of $31.0 million from the decrease in accounts receivable due to the timing and collection of customer sales;

Other uses of cash in the nine months ended September 30, 2013 included contributions to pension and other benefit plans of $7.0 million.

During the nine months ended September 30, 2014, changes in working capital resulted in a net source of funds of $48.6 million which was impacted by:

• net cash inflows in accounts receivable of $29.7 million from the decrease in accounts receivable due to the timing and collection of customer sales and collections;

• the change in inventories of $46.4 million due primarily to reduced volumes on hand;

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(Unaudited)

• net cash outflows from decreases in accounts payable and accruals of $11.1 million, due primarily to changes in tax accruals and payables; and

• a decrease in rationalization accruals of $5.7 million, due primarily to severance payments.

Other uses of cash in the nine months ended September 30, 2014 included contributions to pension and other benefit plans of $11.1 million.

Investing Activities

Net cash used in investing activities was $59.5 million during the nine months ended September 30, 2013, and included capital expenditures of $62.7 million and proceeds from derivative instruments of $0.9 million.

Net cash used in investing activities was $63.0 million during the nine months ended September 30, 2014 and included capital expenditures of $69.3 million and proceeds from the sales of assets of $4.1 million (including rationalization related scrap proceeds of $1.0 million). During the nine months ended September 30, 2014, we received $2.8 million of recoveries related to an insurance claim made for casualty losses related to productive equipment damaged in a fire.

Financing Activities

Net cash flow provided by financing activities was $11.1 million during the nine months ended September 30, 2013 and included net borrowings under our Revolving Facility of $15.5 million which were primarily used to fund capital expenditures and fund working capital additions.

Net cash flow used in financing activities was $20.2 million during the nine months ended September 30, 2014, including $9.5 million to reduce the outstanding balance under our supply chain financing agreement to zero. Net borrowings under our Revolving Facility and short term debt agreements resulted in a use of cash of $11.0 million.

Restrictions on Dividends and Stock Repurchases

A description of the restriction on our ability to pay dividends and our ability to repurchase common stock is set forth under “Item 5 – Dividend Policies and Restrictions” in the Annual Report and such description is incorporated herein by reference. Such description contains all of the information required with respect thereto.

Under the Revolving Facility, in general, GrafTech is permitted to pay dividends and repurchase common stock in an aggregate amount (cumulative from October 2011) up to $75 million (or $500 million, if certain leverage ratio requirements are satisfied) plus, each year, an aggregate amount equal to 50% of the consolidated net income in the prior year.

Recent Accounting Pronouncements

We discuss recently adopted accounting standards in Note 1, “Organization and Summary of Significant Accounting Policies” of the Notes to Consolidated Financial Statements.

Description of Our Financing Structure

We discuss our financing structure in more detail in Note 8, “Long-Term Debt and Liquidity” of the Notes to Consolidated Financial Statements.

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(Unaudited)

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to market risks primarily from changes in interest rates, currency exchange rates, energy commodity prices and commercial energy rates. We, from time to time, routinely enter into various transactions that have been authorized according to documented policies and procedures to manage these well-defined risks. These transactions relate primarily to financial instruments described below. Since the counterparties to these financial instruments are large commercial banks and similar financial institutions, we do not believe that we are exposed to material counterparty credit risk. We do not use financial instruments for trading purposes.

Our exposure to changes in interest rates results primarily from floating rate long-term debt tied to LIBOR or Euro LIBOR. Our exposure to changes in currency exchange rates results primarily from:

• sales made by our subsidiaries in currencies other than local currencies;

• raw material purchases made by our foreign subsidiaries in currencies other than local currencies; and

• investments in and intercompany loans to our foreign subsidiaries and our share of the earnings of those subsidiaries, to the extent denominated in currencies other than the dollar.

Our exposure to changes in energy commodity prices and commercial energy rates results primarily from the purchase or sale of refined oil products and the purchase of natural gas and electricity for use in our manufacturing operations.

Currency Rate Management. We enter into foreign currency derivatives from time to time to attempt to manage exposure to changes in currency exchange rates. These foreign currency derivatives, which include, but are not limited to, forward exchange contracts and purchased currency options, attempt to hedge global currency exposures. Forward exchange contracts are agreements to exchange different currencies at a specified future date and at a specified rate. Purchased foreign currency options are instruments which give the holder the right, but not the obligation, to exchange different currencies at a specified rate at a specified date or over a range of specified dates. Forward exchange contracts and purchased currency options are carried at market value.

The outstanding foreign currency derivatives as of December 31, 2013 represented a net unrealized loss of $0.1 million and a net unrealized gain of $0.8 million as of September 30, 2014.

Energy Commodity Management. We periodically enter into commodity derivative contracts and short duration fixed rate purchase contracts to effectively fix some or all of our natural gas and refined oil product exposure. The outstanding contracts as of December 31, 2013 and September 30, 2014 represented net unrealized gain of $0.8 million and a net unrealized loss of $0.5 million, respectively.

Interest Rate Risk Management. We periodically implement interest rate management initiatives to seek to minimize our interest expense and the risk in our portfolio of fixed and variable interest rate obligations.

We periodically enter into agreements with financial institutions that are intended to limit, or cap, our exposure to incurrence of additional interest expense due to increases in variable interest rates. These instruments effectively cap our interest rate exposure. We currently do not have any such instruments outstanding.

Sensitivity Analysis. We use sensitivity analysis to quantify potential impacts that market rate changes may have on the fair values of our foreign currency derivatives and our commodity derivatives. The sensitivity analysis represents the hypothetical changes in value of the hedge position and does not reflect the related gain or loss on the forecasted underlying transaction. As of September 30, 2014, a 10% appreciation or depreciation in the value of the U.S. dollar against foreign currencies from the prevailing market rates would result in a corresponding decrease of $1.4 million or a corresponding increase of $1.3 million, respectively, in the fair value of the foreign currency hedge portfolio. A 10% increase or decrease in the value of the underlying commodity prices that we hedge would result in a corresponding increase or decrease of $1.2 million as of September 30, 2014 in the fair value of the commodity hedge portfolio. Because of the high correlation between the hedging instrument and the underlying exposure, fluctuations in the value of the instruments are generally offset by reciprocal changes in the value of the underlying exposure.

We had no interest rate derivative instruments outstanding as of September 30, 2014. A hypothetical increase in interest rates of 100 basis points (1%)would have increased our interest expense by $0.6 million for the nine months endedSeptember 30, 2014.

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(Unaudited)

Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures. Management is responsible for establishing and maintaining adequate disclosure controls and procedures at the reasonable assurance level. Disclosure controls and procedures are designed to ensure that information required to be disclosed by a reporting company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by it in the reports that it files under the Exchange Act is accumulated and communicated to management, including the chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we have evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2014. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that these controls and procedures are effective at the reasonable assurance level as of September 30, 2014.

Changes in Internal Controls over Financial Reporting. There have been no changes in our internal controls over financial reporting that occurred during the three months ended September 30, 2014 that materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

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PART II. OTHER INFORMATION

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

Item 1. Legal Proceedings

Director Advancement - We have received a request from a director to reimburse approximately $500,000 incurred by the Director in connection with the investigation conducted by the Special Committee of the GrafTech Board formed in September 2012 and a subsequent investigation by the SEC.  The request is based on GrafTech’s bylaws, an indemnification agreement between GrafTech and the director and Delaware law and, thereunder, advancement of expenses reasonably incurred in a civil, criminal, administrative or investigative action, suit, or proceeding by reason of the fact that the person is or was a director is generally required, subject to, among other things, an undertaking by the director to repay if it turns out he or she did not meet the applicable standards.

Seadrift Coke, L.P and U.S. Environmental Protection Agency - As a result of its audit of the Company’s Seadrift Coke, L.P. subsidiary, the U.S. Environmental Protection Agency (“EPA”) in the 2014 second quarter alleged that the subsidiary failed to accurately report emissions under the Emergency Planning and Community Right-to-Know Act.  The subsidiary is in settlement negotiations with the EPA.  Any fines or penalties are not expected to be material to our financial condition, results of operations or cash flows.

Additional information required by this Item is set forth in Note 12, “Contingencies” of the Notes to Consolidated Financial Statements and is incorporated herein by reference.

Item 1A. Risk Factors

There have been no material changes to the Risk Factors disclosed in Part I-Item IA of the Annual Report.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On July 24, 2012, our Board of Directors authorized a share repurchase program for up to ten million shares of our common stock. Purchases under this program may take place from time to time in the open market, or through privately negotiated transactions, as market, industry and economic conditions warrant. We had not made any purchases under this program as of September 30, 2014.

Upon the vesting or payment of stock awards, an employee may elect receipt of the full share amount and either pay the resulting taxes or sell shares in the open market to cover the tax obligation. We sometimes elect to purchase these shares rather than allow them to be sold in the open market. These repurchases are in addition to the programs authorized by our Board of Directors described above.

Period	Total Number of Shares Purchased*	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Publicly Announced Plans or Programs
July 1 through July 31, 2014	7,473	$	9.86	—	10,000,000
August 1 through August 31, 2014	2,062	8.54		—	10,000,000
September 1 through September 30, 2014	12,043	7.75		—	10,000,000

* Purchases of vested restricted stock shares from employees as payment for the withholding taxes due upon the vesting or payment of stock awards.

Item 3. Defaults Upon Senior Securities

Not Applicable.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information.

Not Applicable.

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PART II. OTHER INFORMATION

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

Item 6. Exhibits

The exhibits listed in the following table have been filed as part of this Report.

Exhibit Number	Description of Exhibit
10.1	Executive Selective Severance Program - 2014-2016
31.1	Certification pursuant to Rule 13a-14(a) under the Exchange Act by Joel L. Hawthorne, President and Chief Executive Officer (Principal Executive Officer).
31.2	Certification pursuant to Rule 13a-14(a) under the Exchange Act by Erick R. Asmussen, Vice President and Chief Financial Officer (Principal Financial Officer).
32.1	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Joel L. Hawthorne, President and Chief Executive Officer (Principal Executive Officer).
32.2	Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 by Erick R. Asmussen, Vice President and Chief Financial Officer (Principal Financial Officer).
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

51

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

			GRAFTECH INTERNATIONAL LTD.
Date:	October 30, 2014	By:	/s/ Erick R. Asmussen
			Erick R. Asmussen
			Vice President and Chief Financial Officer (Principal Financial Officer)

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EX-10.1

Exhibit 10.1

2014-2016

EXECUTIVE

SELECTIVE SEVERANCE PROGRAM

GRAFTECH INTERNATIONAL HOLDINGS INC.

SEPTEMBER 1, 2014 THROUGH DECEMBER 31, 2016

(Select U.S. Senior Executive Employees)

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PROGRAM OUTLINE

This 2014-2016 Executive Selective Severance Program (“ESSP” or “Program”) is being implemented to assist selected US-based senior executives of GrafTech International Ltd. and/or any of its U.S. affiliates (collectively, the “Company”) identified on a list maintained in the office of the Vice President of Human Resources as such list may be enhanced from time to time (each, an “Executive”) whose employment is terminated by action of the Company as set forth herein.

A.    COVERAGE AND TERMS

This Program shall be in effect between the dates of September 1, 2014 and December 31, 2016, and is applicable to any Executive whose employment with the Company is terminated by Company action other than for Cause (as described below). This Program does not constitute a contract and is subject to termination and/or modification at the sole discretion of the Company without prior notice.

B.    ELIGIBILITY; NOTIFICATION AND RELEASE

• An Executive whose employment with the Company is terminated will be notified of his or her eligibility to participate in this Program through an ExecutiveNotification Letter. Such notification will provide eligible Executives with notice of their effective date of termination. This may result in termination other than at the end of a calendar month.

• Notice prior to the effective date of termination is not required, but may be given in the sole discretion of the Company. Any notice period will be paid and may be non-working. During the notice period, Executives will be eligible to participate in Company benefits at active employee rates.

• If required under applicable law, Executives will be told which other positions in their organizational unit or group are eligible and not eligible for any severance program at the Company.

• Benefits from this Program will commence immediately following separation from employment and will continue for the period applicable to the Executive, based on service to the Company and seniority, as described below.

• In order for an Executive to be eligible for participation in this Program, in addition to the other Program conditions, he/she must complete and sign the applicable form of Release and return it to his/her Human Resources manager within the time frame identified in the Executive Notification Letter following receipt of the Notification Letter and Release.

• An Executive who is otherwise eligible for this ESSP will not receive ESSP benefits if the Executive:

• Is discharged by the Company for Cause. “Cause” shall exist only if the Executive engaged in conduct demonstrably and materially injurious to the Company, monetarily or otherwise and, after delivery to the Executive of a copy of a resolution, duly adopted by the unanimous affirmative vote of the entire membership of the Board of Directors of GrafTech International Ltd. (the “Board”) at a meeting of the Board called and held for such purpose (after reasonable notice to the Executive and an opportunity for the Executive, with his or her counsel, to be heard before the Board), finding that in the good faith opinion of the Board, the Executive was guilty of the conduct set forth and

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specifying the particulars thereof in detail. For purposes of “Cause”, no act, or failure to act, on the Executive’s part shall be deemed “willful” unless done, or omitted to be done, by the Executive in bad faith and without reasonable belief that his or her action or omission was in the best interest of the Company. Any act or failure to act based upon authority given pursuant to a resolution duly adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done or omitted to be done by the Executive in good faith and in the best interests of the Company.

• Breached a contractual or legal obligation to the Company, including but not limited to any noncompetition, confidentiality or other restrictive covenant in effect with the Company.

-    Elects normal/early voluntary retirement prior to the Executive being informed of his or her termination of employment or the elimination of his/her position or like changes.

• Does not acknowledge the Notification Letter by singing and returning it within five (5) business days following the Notice Date, or such other period as agreed to by the Company in writing.

-    Does not sign and return the Release within the applicable forty-five (45) day period or elects in writing to revoke the Release within seven (7) calendar days after its execution.

• An Executive who was eligible for this ESSP will not receive any additional or future ESSP benefits (that is, any benefits that commenced shall cease), if, prior to the expiration of Program benefits, the Executive:

• Violates the terms of the restrictive covenants in the Notification Letter (“Exhibit A”).

• An Executive who was eligible for this ESSP will not receive any additional or future ESSP benefits (that is, any benefits that commenced shall cease), and the Executive will be required to return any benefits previously received under this ESSP, if the Executive:

-     Violates the terms of the Release (as set forth in the Release).

• Engages in Detrimental Conduct (as defined in the GrafTech International Ltd. Equity Incentive Plan (the “EIP”)) such that the Company would have the right (as if the Executive’s employment had not terminated) to forfeit an award granted under the EIP.

• Fails to return to the Company all Company property which is in his or her possession.

- Fails to continue to respect the trade secrets and other confidential information to which the Executive had access while employed or fails to abide by all of the Executive’s contractual and legal obligations with respect thereto.

- Makes any critical or derogatory remarks concerning the management, operation or products of the Company or the Company’s officers, managers, employees, shareholders and affiliates, board members, customers, or vendors, or, without limiting the foregoing, takes any other action which could reasonably affect the Company’s reputation or the reputation of the previously mentioned persons.

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- Fails to cooperate in any legal disputes and/or proceedings and/or business matters relating to issues and/or incidents which took place during the term of the Executive’s employment.

C.    TERMINATION WITHOUT RELEASE

If an eligible Executive fails to, or elects not to, sign and return the Release within the appropriate time period or elects in writing to revoke the Release within seven (7) calendar days after its execution, the Executive will not be eligible for participation in this Program and, if any Program benefits have been provided prior thereto, such benefits will be forfeited and, to the extent payments have been made under this Program, must be refunded by the Executive.

D.    TERMINATION OF EMPLOYMENT

For purposes of this Program, references to “termination of employment”, “separation from employment” and the like, when referenced for purposes of determining when an Executive is eligible to commence receipt of payments, refers to a “separation from service” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”). This Program is intended to be a “separation pay plan” within the meaning of Section 409A, such that payments made under this Program are exempt from Section 409A. Each payment or benefit under this Program shall be a separate payment. Notwithstanding anything in this Program to the contrary, in the event it is determined that this Program is not a separation pay plan or any payments hereunder are not exempt from the application of Section 409A, then any payments of “deferred compensation” (within the meaning of Section 409A) payable upon a separation from service to an Executive who is a “specified employee” (within the meaning of Section 409A) shall not commence until the first scheduled payroll date following the six month anniversary of such Executive’s “separation from service” (within the meaning of Section 409A).

E. PROGRAM ADMINISTRATION

• HR Shared Services will administer this Program and is responsible for this Program and its operation. HR Shared Services will maintain records of Program operations and will be responsible for the handling, processing and payment of any claims for benefits under this Program.

• The Company, or its delegee, the Vice President of Human Resources, will have sole and discretionary authority to interpret any term of this Program and to decide all questions concerning the eligibility of any person to participate in this Program, the right to and the amount of any benefit payable under this Program to any individual, and the date on which any individual ceases to be eligible for Program benefits. The Company or its delegate has the sole and absolute discretion to interpret this Program, including without limitation adjusting benefits of this Program for one or more participants consistent with the purposes and intent of this Program. The Company’s, or its delegee’s, decisions will be final and binding on all parties. The Company has allocated to the Vice President of Human Resources any responsibility it may have under this Program and he may designate any other person or persons to carry out any of its responsibilities under this Program.

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• Questions concerning this Program, and related approvals and interpretation, should be addressed to the Manager of Shared Services at 216-676-2002.

PROGRAM BENEFITS

A.    SEVERANCE BENEFITS

•Upon expiration of the notice period, if any, described in this Program, Executives who elect to participate in this Program and timely sign and return (and do not revoke) a Release, are eligible to receive severance benefits in accordance with the following schedule:

Company Service Credit (thru last day worked)Severance

Under 5 years            19 month’s pay

At least 5 years and under 10 years    20 months’ pay

At least 10 years and under 15 years    21 months’ pay

At least 15 years and under 20 years    22 months’ pay

At least 20 years and under 25 years    23 months’ pay

At least 25 years            24 months’ pay

• Minimum severance benefit is eighteen (18) months’ pay; provided that the Chief Executive Officer shall be entitled to a minimum severance benefit of twenty-four (24) months’ pay.

• Maximum severance benefit is twenty-four (24) months’ pay.

• Each month’s severance benefit will be equal to one twelfth of the Executive’sannual base salary in effect at the time of notification of eligibility to participate in this Program (excluding the impact of any temporary pay cuts).

• Generally, severance benefit payments will be made on regular paydays for the respective period authorized (and no provisions of this Program will provide for lump sum payments, except vacation pay) commencing with the first payday following termination of employment.

• In the event of an Executive’s death at any time during which severance benefit payments described in this Section A remain payable hereunder, such benefit payments shall be made, at the same times and form as the payments would have been made to the Executive, to the party or parties identified as the Executive’s “beneficiary” or “beneficiaries” named in the beneficiary designation most recently filed by the Executive with the Company under the Company’s Basic Life Insurance Group Policy, regardless of whether the Executive is a current participant in the Life Insurance Plan at the time of his or her death. If (a) no such designation is on file with the Company at the time of the Executive’s death, or (b) no designated beneficiary has survived the Executive, Executive’s beneficiary for purposes of this Program shall be the Executive’s surviving spouse or, if no spouse has survived the Executive, the estate of the deceased Executive. If an individual beneficiary cannot be located for a period of one year following the

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Executive’s death, despite mail notification to the beneficiary’s last known address, and if the beneficiary has not made a written claim for benefits within such period to the Company, the beneficiary shall be treated as having predeceased the Executive. The Company may require such proof of death and such evidence of the right of any person to receive all or part of a deceased Participant's unpaid benefits as the Company may consider appropriate. The Company may rely upon any direction by the legal representatives of the estate of a deceased Executive, without liability to any other person.

• The severance payments will be in addition to pension payments for eligible employees who are retirement eligible and elect to concurrently retire. Executives who are terminated under this Program and are participants in the GrafTech International Holdings Inc. Retirement Plan will receive credit (up to a maximum of two years) in order to satisfy the age and/or service requirements under the Retirement Plan in accordance with the terms of the Retirement Plan.

B.    VACATION

• Executives will receive pay in lieu of any accrued unused current year vacation. Vacation payment will be paid in a lump sum at the time the individual separates from service.

C.    MEDICAL, DENTAL AND LIFE INSURANCE

• Medical Coverage: Executives participating in this Program who have signed and returned within the applicable time frame, and have not revoked, a Release will be eligible to continue group medical coverage under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”) at active employee rates for twelve (12) months following termination of employment, but only until eligible for coverage under another group plan. The continuation of medical insurance coverage for Executives terminated under this Program will be coordinated with applicable state and federal laws. Any such continuation of medical insurance will be included as part of the continuation of benefits under COBRA.

• Dental Coverage: Executives participating in this Program who have signed and returned within the applicable time frame, and have not revoked, a Release will be eligible to continue group dental coverage under COBRA at active employee rates for twelve (12) months following termination of employment, but only until eligible for coverage under another group plan. The continuation of dental insurance coverage for Executives terminated under this Program will be coordinated with applicable state and federal laws. Any such continuation of dental insurance will be included as part of the continuation of benefits under COBRA.

• Life Insurance Coverage: Coverage under the Basic Life Insurance Group Policy will terminate as of termination of employment. The Executive will have the option to convert to a private policy as provided in the Policy.

• Short and Long Term Disability Coverage: For all employees, this coverage terminates as of termination of employment. For any Executive who becomes eligible for (and receives) a long term disability benefit following the date of the Notification Letter, such disability benefits may be reduced by severance payments, as and when such severance payments are made, in accordance with the terms of the Long Term Disability Plan.

• Employee Assistance Program: A terminated Executive who is receiving benefits under this Program but declines medical coverage may continue participation in the Employee Assistance Program (EAP) following the termination of employment (EAP Coordinated

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Care is included as part of the medical plan coverage) for six (6) months following termination of employment.

The Company may require verification of employment status to determine when to terminate extended benefit plan coverage under any of the above defined enhanced benefits.

D.    INCENTIVE COMPENSATION PLANS

Executives participating in this Program who have signed and returned within the applicable time frame, and have not revoked, a Release are entitled to the following:

• Participants in the GrafTech International Ltd. Executive Incentive Compensation Program (“EICP”) or the employee Incentive Compensation Program (“ICP”) and who are on the payroll as of the last day of the applicable performance period and were eligible to receive an Award (as defined in the EICP or ICP) for such performance period, will have an individual multiplier of 100% of the earned Award based on the results of the business, local, or individual metrics identified for that performance period and will be payable at the same time Awards are payable to active employees of the Company.

• Participants in the EIP with an outstanding Award (as defined in the EIP) shall be entitled to the following:

◦ Notwithstanding the terms of the applicable Award Agreement (as defined in the EIP), immediate vesting as of termination of employment of Options (as defined in the Plan) that would have vested in the twelve (12) month period following termination of employment had the Executive remained employed with the Company or that would have vested in 2015 for Executives terminated in 2014; all vested Options (including options vesting pursuant to the proceeding clause) remain outstanding for 12 months following the date of such termination (or 36 months, if termination is after the Executive attaining age 50 with at least ten years of employment with the Company), but not beyond the original term thereof (after which time they shall expire and be forfeited if unexercised).

◦ Notwithstanding the terms of the applicable Award Agreement, immediate vesting as of termination of employment of Restricted Stock Unit Awards that would have vested in the twelve (12) month period following termination of employment had the Executive remained employed with the Company or that would have vested in 2015 for Executives terminated in 2014; all such Awards shall be paid in accordance with the terms of the applicable Award Agreement.

◦ Performance Share Unit Awards (as defined in the EIP) shall be earned or vested as provided in the applicable Award Agreement and shall be payable in accordance with the terms of the applicable Award Agreement.

E.    OUTPLACEMENT ASSISTANCE

• For an Executive participating in this Program who has signed and returned within the applicable time frame, and has not revoked, a Release, the Company will provide Outplacement Assistance under an executive level program for six (6) months from the date the Executive initiates this service with the vendor, which initiation must occur, if at all, within three (3) months following termination of employment. An Executive interested in Outplacement Assistance must so indicate to the Vice President of Human Resources. Local availability of services will determine the format through which outplacement assistance is provided.

F. MISCELLANEOUS

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• The terms of this Program are not intended to result in duplication of benefits, if any, payable under any Severance Compensation Arrangement to which an Executive is a party, or under the EICP, the EIP or any other plan, by reason of change in control and this Program does not replace or supercede the provisions of any such plan or agreement except as explicitly provided herein.

The Company, by a unanimous vote of the Board, shall have the right to amend, suspend or terminate this Program at any time prior to December 31, 2016, the date on which this Program automatically terminates. A Program amendment or termination will not impact employees (and former employees) who have received written notice of eligibility to participate in this Program before the date such amendment or termination is executed. The Company’s exercise of its discretion to amend or terminate this Program shall comply with Section 409A and other applicable law. Notwithstanding the foregoing, this Program may not be amended in anticipation of or following (i) any event resulting in Present Directors (as defined below) and New Directors (as defined below) ceasing for any reason to constitute a majority of the Board (and, for purposes of this clause (i), “Present Directors” shall mean the individuals who as of the date of adoption of this Program were members of the Board and “New Directors” shall mean individuals whose election by the Board or whose nomination for election as directors by GrafTech International Ltd.’s stockholders was approved by a vote of at least two thirds of the directors then in office who were Present Directors or New Directors); or (ii) a Change in Control (as defined in the EIP).

Approved on behalf of
GRAFTECH INTERNATIONAL LTD
and its U.S. Affiliates

By: /s/Brian E. Blowes    

Title: Vice President – Human Resources

EX-31.1

EXHIBIT 31.1.0

CERTIFICATION

I, Joel L. Hawthorne, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of GrafTech International Ltd. (the “Registrant”);

2.Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3.Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report;

4.The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

(d)Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

By:	/s/ Joel L. Hawthorne
	Joel L. Hawthorne President and Chief Executive Officer, (Principal Executive Officer)
	October 30, 2014

EX-31.2

EXHIBIT 31.2.0

CERTIFICATION

I, Erick R. Asmussen, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of GrafTech International Ltd. (the “Registrant”);

2.Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report;

3.Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report;

4.The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this Report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this Report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this Report based on such evaluation; and

(d)Disclosed in this report any change in the Registrant's internal control over financial reporting that occurred during the Registrant's most recent fiscal quarter (the Registrant's fourth fiscal quarter in the case of the annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant's internal control over financial reporting; and

5. The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant's ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant's internal control over financial reporting.

By:	/s/ Erick R. Asmussen
	Erick R. Asmussen Vice President, and Chief Financial Officer (Principal Accounting Officer)
	October 30, 2014

EX-32.1

EXHIBIT 32.1.0

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In accordance with the rules and regulations of the Securities and Exchange Commission, the following Certification shall not be deemed to be filed with the Commission under the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of Section 18 of the Exchange Act and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, notwithstanding any general incorporation by reference of the Quarterly Report of GrafTech International Ltd. (the “Corporation”) on Form 10-Q for the quarter ended September 30, 2014, as filed with the Commission on the date hereof (the “Report”), into any other document filed with the Commission.

In connection with the Report, I, Joel L. Hawthorne, President and Chief Executive Officer of the Corporation, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Corporation.

By:	/s/ Joel L. Hawthorne
	Joel L. Hawthorne President and Chief Executive Officer, (Principal Executive Officer)
	October 30, 2014

EX-32.2

EXHIBIT 32.2.0

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In accordance with the rules and regulations of the Securities and Exchange Commission, the following Certification shall not be deemed to be filed with the Commission under the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of Section 18 of the Exchange Act and shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, notwithstanding any general incorporation by reference of the Quarterly Report of GrafTech International Ltd. (the “Corporation”) on Form 10-Q for the quarter ended September 30, 2014, as filed with the Commission on the date hereof (the “Report”), into any other document filed with the Commission.

In connection with the Report, I, Erick R. Asmussen, Vice President and Chief Financial Officer, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Exchange Act; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Corporation.

By:	/s/ Erick R. Asmussen
	Erick R. Asmussen Vice President, and Chief Financial Officer (Principal Accounting Officer)
	October 30, 2014

XML

Stock-Based Compensation (Narrative) (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 1,300,000	$ 2,200,000	$ 4,009,000	$ 5,938,000
Compensation cost related to non-vested restricted stock, performance shares and stock options not yet recognized		7,200,000		7,200,000
Compensation cost related to non-vested restricted stock, performance shares and stock options not yet recognized, weighted average life, in years			1 year 2 months 23 days
Selling And Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 1,200,000	$ 2,000,000	$ 3,300,000	$ 5,400,000

XML

Contingencies (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Loss Contingency [Abstract]
Balance as of December 31, 2013	$ 1,050	$ 731
Product warranty adjustments	(117)
Payments and settlements	(202)
Balance as of September 30, 2014		$ 731

XML

Goodwill And Other Intangible Assets (Schedule Of Intangible Assets With Determinable Useful Lives By Major Category) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 Trade Name [Member]	Dec. 31, 2013 Trade Name [Member]	Sep. 30, 2014 Technological Know-How [Member]	Dec. 31, 2013 Technological Know-How [Member]	Sep. 30, 2014 Customer-Related Intangible [Member]	Dec. 31, 2013 Customer-Related Intangible [Member]
Goodwill [Line Items]
Gross Carrying Amount	$ 162,047	$ 162,047	$ 7,900	$ 7,900	$ 43,349	$ 43,349	$ 110,798	$ 110,798
Accumulated Amortization	(67,190)	(82,150)	(4,495)	(3,944)	(23,446)	(18,582)	(54,209)	(44,664)
Net Carrying Amount	$ 94,857	$ 79,897	$ 3,405	$ 3,956	$ 19,903	$ 24,767	$ 56,589	$ 66,134

XML

Income Taxes (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent	(5.50%)	54.70%	(1.70%)	121.40%
Unrecognized tax benefits that would have a favorable impact on effective tax rate		$ 4.7		$ 4.7
Anticipated Amount Of Unrecognized Tax Benefits			0.3
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations			2.6
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions			$ 2.7

XML

Goodwill And Other Intangible Assets (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Deferred Tax Liabilities, Goodwill and Intangible Assets [Abstract]
Customer-related intangible - write off			$ 0.4
technological know-how intangible - write off			0.3
Finite-Lived Intangible Assets, Amortization Expense, Year Five	10.7		10.7
Amortization expense of intangible assets	4.7	5.0
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	4.7		4.7
Finite-Lived Intangible Assets, Amortization Expense, Year Two	17.1		17.1
Finite-Lived Intangible Assets, Amortization Expense, Year Three	13.1		13.1
Finite-Lived Intangible Assets, Amortization Expense, Year Four	$ 11.8		$ 11.8

XML

Income Taxes (Tables)

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Summary Of Provision For Income Taxes

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
	(Dollars in thousands)						(Dollars in thousands)
Tax (benefit) expense	$	(9,216	)	$	1,818		$	(5,458	)	$	3,417
Pretax income (loss)	$	(16,846	)	$	(33,125	)	$	(4,496	)	$	(198,476	)
Effective tax rates	54.7		%	(5.5		)%	121.4		%	(1.7		)%

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Derivative Instruments (Narrative) (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended	9 Months Ended				9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Sep. 30, 2013 Foreign Currency Derivatives [Member]	Sep. 30, 2014 Refined Oil Products [Member] Commodity Derivative Contracts [Member]	Sep. 30, 2014 Minimum [Member] Foreign Currency Derivatives [Member]	Sep. 30, 2014 Minimum [Member] Commodity Derivative Contracts [Member]	Sep. 30, 2014 Maximum [Member] Foreign Currency Derivatives [Member]	Sep. 30, 2014 Maximum [Member] Commodity Derivative Contracts [Member]
Derivative [Line Items]
Outstanding derivative swap contracts					$ 11.6
Notional amounts of foreign currency derivatives				124.2
Derivative maturities						October 2014	October 2014	September 2015	December 2014
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value, Net	11.5		25.2
Gain (Loss) on Derivative Used in Net Investment Hedge, Net of Tax	$ 0.7	$ 0.2

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Earnings Per Share (Tables)

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Schedule Of Calculation Of Basic And Diluted Earnings Per Share

	For the Three Months Ended		For the Nine Months Ended
	September 30,		September 30,
	2013	2014	2013	2014
Weighted average common shares outstanding     for basic calculation	135,134,144	136,374,914	134,948,507	136,006,573
Add: Effect of stock options and restricted stock	—	—	173,107	—
Weighted average common shares outstanding     for diluted calculation	135,134,144	136,374,914	135,121,614	136,006,573

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Long-Term Debt And Liquidity (Schedule Of Long-Term Debt) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Revolving Facility	$ 53,000	$ 64,000
Total	539,509	541,593
Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Total	184,820	175,675
Other Debt [Member]
Debt Instrument [Line Items]
Total	$ 1,689	$ 1,918

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Earnings Per Share (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]
Weighted average common shares outstanding for basic calculation	136,374,914	135,134,144	136,006,573	134,948,507
Add: Effect of stock options and restricted stock	0	0	0	173,107
Weighted average common shares outstanding for diluted calculation	136,374,914	135,134,144	136,006,573	135,121,614
Shares which exclude consideration of stock options in calculation of diluted shares outstanding	1,541,048	1,529,213	1,193,851	1,529,213

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Rationalizations Rationalization Costs Incurred (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
2013 Rationalization Initiatives
Restructuring Cost and Reserve [Line Items]
Accelerated depreciation	$ 800
Total rationalization plan and related charges	2,512	30,378
Industrial Materials Segment
Restructuring Cost and Reserve [Line Items]
Total rationalization plan and related charges	2,506	28,958
Engineered Solutions Segment
Restructuring Cost and Reserve [Line Items]
Total rationalization plan and related charges	6	1,420
2014 Engineered Solutions Rationalization
Restructuring Cost and Reserve [Line Items]
Impairments (recorded in Impairments)	121,600
Total rationalization plan and related charges	8,193	140,324
2014 Corporate and Research & Development Rationalization
Restructuring Cost and Reserve [Line Items]
Total rationalization plan and related charges	8,298	8,298
Cost of Sales | 2013 Rationalization Initiatives
Restructuring Cost and Reserve [Line Items]
Accelerated depreciation	838	22,516
Other Restructuring Costs	1,624	6,816
Cost of Sales | Industrial Materials Segment
Restructuring Cost and Reserve [Line Items]
Accelerated depreciation	838	21,690
Other Restructuring Costs	1,618	6,194
Cost of Sales | Engineered Solutions Segment
Restructuring Cost and Reserve [Line Items]
Accelerated depreciation	0	826
Other Restructuring Costs	6	622
Cost of Sales | 2014 Engineered Solutions Rationalization
Restructuring Cost and Reserve [Line Items]
Accelerated depreciation	2,802	2,802
Other Restructuring Costs	2,780	13,341
Cost of Sales | 2014 Corporate and Research & Development Rationalization
Restructuring Cost and Reserve [Line Items]
Accelerated depreciation	5	5
Selling and Administrative | 2013 Rationalization Initiatives
Restructuring Cost and Reserve [Line Items]
Other Restructuring Costs	21	99
Selling and Administrative | Industrial Materials Segment
Restructuring Cost and Reserve [Line Items]
Other Restructuring Costs	21	99
Selling and Administrative | Engineered Solutions Segment
Restructuring Cost and Reserve [Line Items]
Other Restructuring Costs	0	0
Rationalizations | 2013 Rationalization Initiatives
Restructuring Cost and Reserve [Line Items]
Severance and related costs (recorded in Rationalizations)	(52)	338
Contract terminations (recorded in Rationalizations)	81	609
Rationalizations | Industrial Materials Segment
Restructuring Cost and Reserve [Line Items]
Severance and related costs (recorded in Rationalizations)	(52)	366
Contract terminations (recorded in Rationalizations)	81	609
Rationalizations | Engineered Solutions Segment
Restructuring Cost and Reserve [Line Items]
Severance and related costs (recorded in Rationalizations)	0	(28)
Contract terminations (recorded in Rationalizations)	0	0
Rationalizations | 2014 Engineered Solutions Rationalization
Restructuring Cost and Reserve [Line Items]
Severance and related costs (recorded in Rationalizations)	2,537	2,537
Contract terminations (recorded in Rationalizations)	74	74
Rationalizations | 2014 Corporate and Research & Development Rationalization
Restructuring Cost and Reserve [Line Items]
Severance and related costs (recorded in Rationalizations)	8,130	8,130
Contract terminations (recorded in Rationalizations)	74	74
Impairments | 2014 Engineered Solutions Rationalization
Restructuring Cost and Reserve [Line Items]
Impairments (recorded in Impairments)	0	121,570
Overhead | 2014 Corporate and Research & Development Rationalization
Restructuring Cost and Reserve [Line Items]
Accelerated depreciation	$ 89	$ 89

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Interest Expense (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Interest and Debt Expense [Abstract]
Debt Instrument, Interest Rate, Stated Percentage		6.375%		6.375%
Interest incurred on debt	$ 5,448	$ 5,372	$ 16,115	$ 16,255
Amortization of discount on Senior Subordinated Notes	3,100	2,897	9,145	8,546
Amortization of debt issuance costs	521	729	1,916	1,872
Supply Chain Financing mark-up	0	100	47	380
Total interest expense	$ 9,069	$ 9,098	$ 27,223	$ 27,053
Effective interest rate, revolving credit facility			2.16%	2.42%
Senior Subordinated Notes implied rate			7.00%

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Derivative Instruments Derivative Tax Impact on Realized Gains (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Commodity Contract [Member]
Derivative [Line Items]
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax	$ 19	$ (23)	$ (14)	$ (4)
Commodity [Member]
Derivative [Line Items]
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax	$ (135)	$ (164)	$ (45)	$ (214)

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Goodwill And Other Intangible Assets (Schedule Of Changes In The Carrying Value Of Goodwill) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Deferred Tax Liabilities, Goodwill and Intangible Assets [Abstract]
Balance as of December 31, 2013	$ 496,810	$ 495,944
Currency translation effect	(453)
Balance as of September 30, 2014	$ 495,944	$ 495,944

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Stock-Based Compensation

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

For the three months ended September 30, 2013 and 2014, we recognized stock-based compensation expense totaling $2.2 million and $1.3 million, respectively. A majority of the expense, $2.0 million and $1.2 million, respectively, was recorded as selling and administrative expenses in the Consolidated Statements of Operations, with the remaining expenses recorded as cost of sales and research and development.

For the nine months ended September 30, 2013 and 2014, we recognized stock-based compensation expense of $5.9 million and $4.0 million, respectively. A majority of the expense, $5.4 million and $3.3 million, respectively, was recorded as selling and administrative expenses in the Consolidated Statements of Operations, with the remaining expenses recorded as cost of sales and research and development.

As of September 30, 2014, the total compensation cost related to non-vested restricted stock, performance shares and stock options not yet recognized was $7.2 million, which will be recognized over the remaining weighted average life of 1.23 years.

Restricted Stock and Performance Shares

Restricted stock and performance share awards activity under the plans for the nine months ended September 30, 2014 was:

	Number of Shares		Weighted- Average Grant  Date Fair Value
Outstanding unvested as of January 1, 2014	1,633,491		$	10.98
Granted	215,100		10.53
Vested	(188,732	)	13.90
Forfeited/canceled/expired	(807,296	)	10.20
Outstanding unvested as of September 30, 2014	852,563		10.98

Stock Options

Stock option activity under the plans for the nine months ended September 30, 2014 was:

	Number of Shares		Weighted- Average Exercise Price
Outstanding as of January 1, 2014	1,916,718		$	12.47
Granted	145,034		11.56
Forfeited/canceled/expired	(174,093	)	11.64
Exercised	(316,733	)	8.88
Outstanding as of September 30, 2014	1,570,926		13.20

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Supplemental Guarantor Information (Textual) (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2013	Nov. 20, 2012 Senior Notes [Member]
Debt Instrument [Line Items]
Principal amount issued		$ 300
Stated interest rate	6.375%	6.375%

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Segment Reporting (Schedule Of Financial Information Concerning Reportable Segments) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Segment Reporting Information [Line Items]
Total net sales	$ 260,458	$ 303,084	$ 825,433	$ 858,172
Total segment operating income (loss)	(23,051)	(8,569)	(169,608)	23,148
Other expense (income), net	1,149	(772)	1,902	753
Interest expense	9,069	9,098	27,223	27,053
Interest income	(144)	(49)	(257)	(162)
Income before provision for income taxes	(33,125)	(16,846)	(198,476)	(4,496)
Industrial Materials [Member]
Segment Reporting Information [Line Items]
Total net sales	208,573	233,277	634,004	673,394
Total segment operating income (loss)	(7,219)	(12,945)	(28,009)	10,663
Engineered Solutions [Member]
Segment Reporting Information [Line Items]
Total net sales	51,885	69,807	191,429	184,778
Total segment operating income (loss)	$ (15,832)	$ 4,376	$ (141,599)	$ 12,485

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Long-Term Debt And Liquidity (Tables)

9 Months Ended

Sep. 30, 2014

Long-term Debt and Capital Lease Obligations [Abstract]

Schedule Of Long-Term Debt

	As of December 31, 2013		As of September 30, 2014
	(Dollars in thousands)
Revolving Facility	$	64,000	$	53,000
Senior Notes	300,000		300,000
Senior Subordinated Notes	175,675		184,820
Other Debt	1,918		1,689
Total	$	541,593	$	539,509

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Goodwill And Other Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2014

Deferred Tax Liabilities, Goodwill and Intangible Assets [Abstract]

Schedule Of Changes In The Carrying Value Of Goodwill

	Total
	(Dollars in Thousands)
Balance as of December 31, 2013	$	496,810
Impairment	(413		)
Currency translation effect	(453		)
Balance as of September 30, 2014	$	495,944

Schedule Of Intangible Assets With Determinable Useful Lives By Major Category

	As of December 31, 2013							As of September 30, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization & Impairment			Net Carrying Amount
	(Dollars in Thousands)
Trade name	$	7,900	$	(3,944	)	$	3,956	$	7,900	$	(4,495	)	$	3,405
Technological know-how	43,349		(18,582		)	24,767		43,349		(23,446		)	19,903
Customer –related     intangible	110,798		(44,664		)	66,134		110,798		(54,209		)	56,589
Total finite-lived     intangible assets	$	162,047	$	(67,190	)	$	94,857	$	162,047	$	(82,150	)	$	79,897

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Income Taxes (Summary Of Provision For Income Taxes) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Income Tax Disclosure [Abstract]
Tax (benefit)	$ 1,818	$ (9,216)	$ 3,417	$ (5,458)
Income before provision for income taxes	$ (33,125)	$ (16,846)	$ (198,476)	$ (4,496)
Effective tax rates	(5.50%)	54.70%	(1.70%)	121.40%

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Segment Reporting Net Property Plant and Equipment by Segment (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Segment Reporting, Asset Reconciling Item [Line Items]
Net property, plant and equipment	$ 665,555	$ 820,985
Industrial Materials [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Net property, plant and equipment	568,213	601,322
Engineered Solutions [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
Net property, plant and equipment	$ 97,342	$ 219,663

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Inventories (Tables)

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Schedule Of Inventories

	As of December 31, 2013			As of September 30, 2014
	(Dollars in thousands)
Inventories:
Raw materials and supplies	$	184,420		$	150,340
Work in process	245,160			191,340
Finished goods	78,446			97,063
	508,026			438,743
Reserves	(17,612		)	(20,266		)
Total	$	490,414		$	418,477

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Interest Expense (Tables)

9 Months Ended

Sep. 30, 2014

Interest and Debt Expense [Abstract]

Schedule Of Interest Expense

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2013		2014		2013		2014
	(Dollars in thousands)				(Dollars in thousands)
Interest incurred on debt	$	5,372	$	5,448	$	16,255	$	16,115
Amortization of discount on Senior Subordinated Notes	2,897		3,100		8,546		9,145
Amortization of debt issuance costs	729		521		1,872		1,916
Supply Chain Financing mark-up	100		—		380		47
Total interest expense	$	9,098	$	9,069	$	27,053	$	27,223

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Rationalizations (Notes)

9 Months Ended

Sep. 30, 2014

Restructuring and Related Activities [Abstract]

Rationalizations and Impairments

Rationalizations and Impairments

2013Industrial Materials Rationalization

On October 31, 2013, we announced a global initiative to reduce our Industrial Materials segment's cost base and improve our competitive position. As part of this initiative, we ceased production at our two highest cost graphite electrode plants, located in Brazil and South Africa, as well as a machine shop in Russia. These actions were substantially completed during the first half of 2014. Our graphite electrode capacity was reduced by approximately 60,000 metric tons as a result of these actions. In parallel, we adopted measures for reductions in overhead and related corporate operations. These actions and measures reduced global headcount by approximately 600 people, or approximately 20 percent of our global workforce.

2013 Engineered Solutions Rationalization

In order to optimize our Engineered Solutions platform and improve our cost structure, we also initiated actions to centralize certain operations and reduce overhead in our Engineered Solutions segment. These actions are expected to reduce global headcount by approximately 40 people and be substantially completed during 2014.

Total 2013 Rationalization Initiatives Impact to 2014 Financial Results

In the three and nine months ended September 30, 2014, as a result of the 2013 rationalization initiatives we incurred rationalization charges of $0.1 million and $0.9 million, respectfully, primarily related to contract termination costs. We also incurred non-cash accelerated depreciation charges of $0.8 million and $22.5 million in the three and nine months ended September 30, 2014, respectively. Other rationalization-related charges recorded in cost of sales in the three and nine months ended September 30, 2014 were $1.6 million and $6.8 million, respectively, and included cleaning and dismantling costs and loss reserves for inventory.

Charges incurred related to the 2013 rationalization initiatives for the three and nine months endedSeptember 30, 2014 are as follows:

	For the Three Months Ended September 30, 2014								For the Nine Months Ended September 30, 2014
	Industrial Materials Segment			Engineered Solutions Segment		Total			Industrial Materials Segment		Engineered Solutions Segment			Total
	(Dollars in thousands)								(Dollars in thousands)
Accelerated depreciation     (recorded in Cost of sales)	$	838		$	—	$	838		$	21,690	$	826		$	22,516
Other (recorded in Cost     of sales)	1,618			6		1,624			6,194		622			6,816
Other (recorded in Selling     and administrative)	21			—		21			99		—			99
Severance and related costs     (recorded in Rationalizations)	(52		)	—		(52		)	366		(28		)	338
Contract terminations (recorded in Rationalizations)	81			—		81			609		—			609
Total 2013 rationalization plan     and related charges	$	2,506		$	6	$	2,512		$	28,958	$	1,420		$	30,378

The 2013 rationalization initiatives will result in approximately $100 million of pre-tax charges, of which approximately $30 million will be cash outlays (net of cash inflows). Through September 30, 2014, we incurred $96.1 million of expense related to these initiatives.

The following table represents the roll-forward of the liability incurred for employee termination benefits and contract termination costs incurred in connection with the 2013 rationalization initiatives described above. This liability is recorded as a current liability on the Consolidated Balance Sheet.

	(Dollars in thousands)
Balance as of December 31, 2013	$	18,421
Charges incurred	693
Change in estimates	254
Payments and settlements	(16,053		)
Effect of change in currency exchange rates	(997		)
Balance as of September 30, 2014	$	2,318

2014 Engineered Solutions Rationalization

On July 29, 2014, we announced additional rationalization initiatives to increase profitability, reduce cost and improve global competitiveness in our Engineered Solutions segment. During the second quarter of 2014, worldwide pricing of our isomolded graphite products ("isomolded") within our Advanced Graphite Material ("AGM") product group, as well as our expectation of future pricing, significantly eroded, driven by significant over-capacity and recent competitor responses. In addition, solar product demand continued to erode, with polysilicon, silicon and silicon wafer production migrating to China. New competitors servicing this industry commenced production in China at pricing levels making the market now unprofitable. As a result of these conditions, the Company decided to cease isomolded production and pursue alternative supply chain relationships in our isomolded product line.

As a result of the above, we tested our long-lived assets used to produce advanced graphite materials for recovery, based on undiscounted cash flows from the use and eventual disposition of these assets. The carrying value of the assets exceeded these undiscounted cash flow and, accordingly, we estimated the fair-value of these long-lived assets based on a market participant view. This resulted in an impairment charge totaling $121.6 million in the nine months months ended September 30, 2014, and included the impairment of certain acquired customer relationship and technology intangible assets. Goodwill associated with this line of business of $0.4 million was fully impaired, and included in the $121.6 million charge. Other impairment related charges, primarily inventory write-downs, were $13.4 million in the nine months ended September 30, 2014. If business conditions and plans do not achieve our expected returns in the Engineered Solutions segment, we may undertake additional restructurings, rationalizations or similar actions which could result in additional charges, write-offs and impairments.

Charges incurred related to the 2014 Engineered Solutions rationalization initiatives for the three and nine months endedSeptember 30, 2014 are as follows:

	For the Three  Months Ended September 30, 2014		For the Nine Months Ended September 30, 2014
	(dollars in thousands)
Accelerated depreciation (recorded in Cost of sales)	$	2,802	$	2,802
Other (recorded in Cost of sales)	2,780		13,341
Severance and related charges (recorded in Rationalizations)	2,537		2,537
Contract terminations (recorded in Rationalizations)	74		74
Impairments (recorded in Impairments)	—		121,570
Total 2014 Engineered Solutions rationalization         and related charges	$	8,193	$	140,324

The 2014 Engineered Solution rationalization will result in approximately $25 million of pre-tax charges (excluding impairments of $121.6 million), of which, approximately $5 million will be cash outlays (net of cash inflows), the majority of which will be incurred in 2014. Through September 30, 2014 we have incurred $18.8 million related to this program.

The following table represents the roll-forward of the liability incurred for employee termination benefits and contract termination costs incurred in connection with the 2014 Engineered Solutions rationalization initiatives described above. This liability is recorded as a current liability on the Consolidated Balance Sheet.

	(Dollars in thousands)
Balance as of December 31, 2013	$	—
Charges incurred	2,611
Change in estimates	—
Payments and settlements	(386		)
Effect of change in currency exchange rates	—
Balance as of September 30, 2014	$	2,225

2014 Corporate and Research & Development Rationalization

During the third quarter of 2014, we announced the conclusion of another phase of our on-going company-wide cost savings assessment. This resulted in changes to the Company’s operating and management structure in order to streamline, simplify and decentralize the organization. These actions will reduce costs by a combination of reduced contractor costs, attrition, early retirements and layoffs. Additionally, the Company will downsize its corporate functions by approximately 25 percent, relocate to a smaller, more cost effective corporate headquarters and establish a new Technology and Innovation Center.

Charges incurred related to the 2014 Corporate and Research & Development rationalization initiatives for the three and nine months endedSeptember 30, 2014 are as follows:

	For the Three and Nine  Months Ended September 30, 2014
	(dollars in thousands)
Accelerated depreciation (recorded in Cost of sales)	$	5
Accelerated depreciation (recorded in Overhead)	89
Severance and related costs (recorded in Rationalizations)	8,130
Contract terminations (recorded in Rationalizations)	74
Total 2014 corporate rationalization         and related charges	$	8,298

The 2014 Corporate and Research and Development rationalization plan will result in approximately $20 million of charges consisting of severance, accelerated depreciation and other related costs . Approximately $12 million of these costs will be cash outlays, the majority of which are expected to be disbursed in 2015.

The following table represents the roll-forward of the liability incurred for employee termination benefits and contract termination costs incurred in connection with the 2014 Corporate and Research & Development rationalization initiatives described above. This liability is recorded as a current liability on the Consolidated Balance Sheet.

	(Dollars in thousands)
Balance as of December 31, 2013	$	—
Charges incurred	8,204
Change in estimates	—
Payments and settlements	—
Effect of change in currency exchange rates	—
Balance as of September 30, 2014	$	8,204

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Contingencies (Tables)

9 Months Ended

Sep. 30, 2014

Loss Contingency [Abstract]

Schedule Of Product Warranties Accrual

	(Dollars in thousands)
Balance as of December 31, 2013	$	1,050
Product warranty adjustments	(117		)
Payments and settlements	(202		)
Balance as of September 30, 2014	$	731

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Stock-Based Compensation (Schedule Of Restricted Stock And Performance Share Awards Activity) (Details) (Restricted Stock And Performance Shares [Member], USD $)	9 Months Ended
	Sep. 30, 2014
Restricted Stock And Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested as of January 1, 2014	1,633,491
Number of Shares, Granted	215,100
Number of Shares, Vested	(188,732)
Number of Shares, Forfeited/canceled/expired	(807,296)
Outstanding unvested as of September 30, 2014	852,563
Outstanding unvested as of January 1, 2014	$ 10.98
Weighted-Average Grant Date Fair Value, Granted	$ 10.53
Weighted-Average Grant Date Fair Value, Vested	$ 13.90
Weighted-Average Grant Date Fair Value, Forfeited/canceled/expired	$ 10.20
Outstanding unvested as of September 30, 2014	$ 10.98

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Supply Chain Financing (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013
Supply Chain Financing [Abstract]
Supply chain financing liability	$ 0		$ 0		$ 9,455,000
Supply Chain Financing Mark Up	0	100,000	47,000	380,000
Maximum amount owing to financing party			$ 49,300,000

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
ASSETS
Cash and cash equivalents	$ 10,878	$ 11,888
Accounts and notes receivable, net of allowance for doubtful accounts of $6,718 as of December 31, 2013 and $8,592 as of September 30, 2014	163,971	199,566
Inventories	418,477	490,414
Prepaid expenses and other current assets	87,988	73,790
Total current assets	681,314	775,658
Property, plant and equipment	1,573,995	1,588,880
Less: accumulated depreciation	908,440	767,895
Net property, plant and equipment	665,555	820,985
Deferred income taxes	13,614	10,334
Goodwill	495,944	496,810
Other assets	105,018	114,061
Total assets	1,961,445	2,217,848
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	98,722	115,212
Short-term debt	1,144	1,161
Accrued income and other taxes	26,073	30,687
Restructuring and Related Liability	12,747	18,421
Supply chain financing liability	0	9,455
Other accrued liabilities	44,211	40,939
Total current liabilities	182,897	215,875
Long-term debt	539,509	541,593
Other long-term obligations	89,984	97,947
Deferred income taxes	40,676	41,684
Stockholders' equity:
Preferred stock, par value $.01, 10,000,000 shares authorized, none issued	0	0
Common stock, par value $.01, 225,000,000 shares authorized, 151,929,565 shares issued as of December 31, 2013 and 152,604,441 shares issued as of September 30, 2014	1,525	1,519
Additional paid-in capital	1,826,935	1,820,451
Accumulated other comprehensive loss	(313,560)	(292,624)
Accumulated deficit	(162,268)	39,625
Less: cost of common stock held in treasury, 16,341,311 shares as of December 31, 2013 and 16,092,662 shares as of September 30, 2014	(243,098)	(247,190)
Less: common stock held in employee benefit and compensation trusts, 87,206 shares as of December 31, 2013 and 107,406 shares as of September 30, 2014	(1,155)	(1,032)
Total stockholders' equity	1,108,379	1,320,749
Total liabilities and stockholders' equity	$ 1,961,445	$ 2,217,848

XML

Benefit Plans (Schedule Of Benefit Plans) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Pension Costs [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 473	$ 489	$ 1,419	$ 1,467
Interest cost	2,169	1,985	6,507	5,955
Expected return on plan assets	(1,938)	(1,706)	(5,814)	(5,118)
Amortization of prior service cost/benefit	1	6	3	18
Net cost	705	774	2,115	2,322
Postretirement Costs [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	19	28	57	84
Interest cost	352	331	1,056	993
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Curtailments	0	0	1,048	0
Amortization of prior service cost/benefit	(47)	(50)	(141)	(150)
Net cost	$ 324	$ 309	$ 2,020	$ 927

XML

Consolidated Statements Of Cash Flows (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flow from operating activities:
Net income	$ (201,893)	$ 962
Adjustments to reconcile net income to cash provided by operations:
Depreciation and amortization	93,123	71,770
Impairment charge	121,570	0
Disposal Group, Not Discontinued Operation, Loss (Gain) on Write-down	18,800	1,600
Deferred income tax provision	(4,943)	(2,563)
Post-retirement and pension plan changes	4,097	3,468
Stock-based compensation	4,009	5,938
Interest expense	11,105	10,459
Other charges, net	4,047	3,016
Increase in long-term assets and liabilities	(15,603)	(7,469)
Net cash used in operating activities	82,889	65,178
Cash flow from investing activities:
Capital expenditures	(69,314)	(62,698)
Proceeds from sale of assets	4,079	0
Proceeds from derivative instruments	(573)	852
Other	2,834	2,333
Net cash used in investing activities	(62,974)	(59,513)
Cash flow from financing activities:
Short-term debt borrowings (reductions), net	(17)	(4,082)
Revolving Facility borrowings	229,000	134,000
Revolving Facility reductions	(240,000)	(118,500)
Principal payments on long-term debt	(158)	(189)
Supply chain financing	(9,455)	(14,422)
Proceeds from exercise of stock options	2,813	175
Purchase of treasury shares	(620)	(844)
Revolver Refinancing Costs	(2,741)	0
Proceeds from (Payments for) Other Financing Activities	1,011	(7,206)
Net cash provided by financing activities	(20,167)	(11,068)
Net (decrease) increase in cash and cash equivalents	(252)	(5,403)
Effect of exchange rate changes on cash and cash equivalents	(758)	(444)
Cash and cash equivalents at beginning of period	11,888	17,317
Cash and cash equivalents at end of period	10,878
Change in current assets:
Accounts and notes receivable, net	29,693	30,971
Inventories	46,424	(13,581)
Prepaid expenses and other current assets	(15,560)	(11,049)
Decrease in accounts payables and accruals	(11,072)	(47,541)
Change in Rationalization Liability	(5,671)	14,129
Decrease in interest payable	4,763	5,068
Increase in working capital	$ 48,577	$ (22,003)

XML

Derivative Instruments (Schedule Of Fair Value Of Derivatives Designated As Fair Value Hedges) (Details) (USD $) In Thousands, unless otherwise specified																			3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 Not Designated As Hedging Instrument [Member] Other Receivables [Member]	Sep. 30, 2013 Not Designated As Hedging Instrument [Member] Other Receivables [Member]	Sep. 30, 2014 Not Designated As Hedging Instrument [Member] Other Payables [Member]	Sep. 30, 2013 Not Designated As Hedging Instrument [Member] Other Payables [Member]	Sep. 30, 2014 Not Designated As Hedging Instrument [Member] Foreign Currency Derivatives [Member] Other Receivables [Member]	Dec. 31, 2013 Not Designated As Hedging Instrument [Member] Foreign Currency Derivatives [Member] Other Receivables [Member]	Sep. 30, 2014 Not Designated As Hedging Instrument [Member] Foreign Currency Derivatives [Member] Other Payables [Member]	Dec. 31, 2013 Not Designated As Hedging Instrument [Member] Foreign Currency Derivatives [Member] Other Payables [Member]	Sep. 30, 2014 Cash Flow Hedging [Member] Foreign Currency Derivatives [Member] Other Receivables [Member]	Dec. 31, 2013 Cash Flow Hedging [Member] Foreign Currency Derivatives [Member] Other Receivables [Member]	Sep. 30, 2014 Cash Flow Hedging [Member] Foreign Currency Derivatives [Member] Other Payables [Member]	Dec. 31, 2013 Cash Flow Hedging [Member] Foreign Currency Derivatives [Member] Other Payables [Member]	Sep. 30, 2014 Cash Flow Hedging [Member] Commodity Derivative Contracts [Member] Other Current Assets [Member]	Dec. 31, 2013 Cash Flow Hedging [Member] Commodity Derivative Contracts [Member] Other Current Assets [Member]	Sep. 30, 2014 Cash Flow Hedging [Member] Commodity Derivative Contracts [Member] Other Current Liabilities [Member]	Dec. 31, 2013 Cash Flow Hedging [Member] Commodity Derivative Contracts [Member] Other Current Liabilities [Member]	Sep. 30, 2014 Cost Of Good Sold Other Expense Income [Member] Derivatives Designated As Fair Value Hedges [Member] Not Designated As Hedging Instrument [Member] Foreign Currency Derivatives [Member]	Sep. 30, 2013 Cost Of Good Sold Other Expense Income [Member] Derivatives Designated As Fair Value Hedges [Member] Not Designated As Hedging Instrument [Member] Foreign Currency Derivatives [Member]	Sep. 30, 2014 Cost Of Good Sold Other Expense Income [Member] Derivatives Designated As Fair Value Hedges [Member] Not Designated As Hedging Instrument [Member] Foreign Currency Derivatives [Member]	Sep. 30, 2013 Cost Of Good Sold Other Expense Income [Member] Derivatives Designated As Fair Value Hedges [Member] Not Designated As Hedging Instrument [Member] Foreign Currency Derivatives [Member]
Derivative [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net																			$ 444	$ 509	$ 383	$ (912)
Cash Flow Hedge Derivative Instrument Assets at Fair Value	1,606	1,130									1,130	772			0	834
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value	1,185	806											274	1,185			532	0
Fair Value, Asset Derivatives			328	240			240	328
Fair Value, Liability Derivatives					$ 24	$ 336			$ 336	$ 24

XML

Supplemental Guarantor Information (Tables)

9 Months Ended

Sep. 30, 2014

Consolidating Financials [Abstract]

Schedule of Condensed Balance Sheet [Table Text Block]

CONDENSED CONSOLIDATING BALANCE SHEETS
As of December 31, 2013
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	4,752	$	7,136	$	—		$	11,888
Accounts receivable - affiliates	42,410		28,551		15,824		(86,785		)	—
Accounts receivable - trade	—		48,998		150,568		—			199,566
Inventories	—		174,935		315,479		—			490,414
Prepaid and other current assets	—		22,555		51,235		—			73,790
Total current assets	42,410		279,791		540,242		(86,785		)	775,658
Investment in affiliates	1,709,914		828,012		—		(2,537,926		)	—
Property, plant and equipment	—		540,273		280,712		—			820,985
Deferred income taxes	—		—		10,334		—			10,334
Goodwill	—		293,162		203,648		—			496,810
Notes receivable - affiliate	51,090		7,413		—		(58,503		)	—
Other assets	4,752		53,447		55,862		—			114,061
Total assets	$	1,808,166	$	2,002,098	$	1,090,798	$	(2,683,214	)	$	2,217,848
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable - affiliate	$	—	$	58,206	$	28,579	$	(86,785	)	$	—
Accounts payable - trade	—		41,971		73,241		—			115,212
Short-term debt	—		165		996		—			1,161
Accrued income and other taxes	2,678		4,736		23,273		—			30,687
Rationalizations	—		1,890		16,531		—			18,421
Supply chain financing liability	—		—		9,455		—			9,455
Other accrued liabilities	2,444		12,404		26,091		—			40,939
Total current liabilities	5,122		119,372		178,166		(86,785		)	215,875
Long-term debt - affiliate	—		51,090		7,413		(58,503		)	—
Long-term debt - third party	475,675		50,525		15,393		—			541,593
Other long-term obligations	—		66,590		31,357		—			97,947
Deferred income taxes	6,620		4,607		30,457		—			41,684
Stockholders' equity	1,320,749		1,709,914		828,012		(2,537,926		)	1,320,749
Total liabilities and stockholders' equity	$	1,808,166	$	2,002,098	$	1,090,798	$	(2,683,214	)	$	2,217,848

CONDENSED CONSOLIDATING BALANCE SHEETS
As of September 30, 2014
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	1,362	$	9,516	$	—		$	10,878
Accounts receivable - affiliates	39,243		41,619		35,617		(116,479		)	—
Accounts receivable - trade	—		39,252		124,719		—			163,971
Inventories	—		161,791		256,686		—			418,477
Prepaid and other current assets	—		18,156		69,832		—			87,988
Total current assets	39,243		262,180		496,370		(116,479		)	681,314
Investment in affiliates	1,513,267		772,957		—		(2,286,224		)	—
Property, plant and equipment	—		433,350		232,205		—			665,555
Deferred income taxes	—		—		13,614		—			13,614
Goodwill	—		292,749		203,195		—			495,944
Notes receivable - affiliate	44,020		7,413		—		(51,433		)	—
Other assets	4,237		51,473		49,308		—			105,018
Total assets	$	1,600,767	$	1,820,122	$	994,692	$	(2,454,136	)	$	1,961,445
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable - affiliate	$	—	$	74,859	$	41,620	$	(116,479	)	$	—
Accounts payable - trade	—		36,316		62,406		—			98,722
Short-term debt	—		1,130		14		—			1,144
Accrued income and other taxes	343		3,659		22,071		—			26,073
Rationalizations	—		9,239		3,508		—			12,747
Other accrued liabilities	7,225		11,360		25,626		—			44,211
Total current liabilities	7,568		136,563		155,245		(116,479		)	182,897
Long-term debt - affiliate	—		44,020		7,413		(51,433		)	—
Long-term debt - third party	484,820		53,427		1,262		—			539,509
Other long-term obligations	—		59,604		30,380		—			89,984
Deferred income taxes	—		13,241		27,435		—			40,676
Stockholders' equity	1,108,379		1,513,267		772,957		(2,286,224		)	1,108,379
Total liabilities and stockholders' equity	$	1,600,767	$	1,820,122	$	994,692	$	(2,454,136	)	$	1,961,445

Schedule of Condensed Income Statement [Table Text Block]

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the three months ended September 30, 2013
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	57,727		$	39,196		$	(96,923	)		$	—
Sales - third party	—			122,360			180,724			—				303,084
Net sales	—			180,087			219,920			(96,923		)		303,084
Cost of sales	—			155,803			207,560			(96,923		)		266,440
Gross profit	—			24,284			12,360			—				36,644
Research and development	—			2,994			—			—				2,994
Selling and administrative expenses	—			9,751			17,875			—				27,626
Rationalizations	—			2,424			12,169			—				14,593
Operating income	—			9,115			(17,684		)	—				(8,569		)
Other expense, net	—			(1,476		)	704			—				(772		)
Interest expense - affiliate	—			279			190			(469		)		—
Interest expense - third party	7,849			779			470			—				9,098
Interest income - affiliate	(272		)	(189		)	(8		)	469				—
Interest income - third party	—			—			(49		)	—				(49		)
(Loss) income before income taxes	(7,577		)	9,722			(18,991		)	—			`	(16,846		)
(Benefit) provision for income taxes	(2,743		)	1,904			(8,377		)	—				(9,216		)
Equity in earnings of subsidiary	(2,796		)	(10,614		)	—			13,410				—
Net income (loss)	$	(7,630	)	$	(2,796	)	$	(10,614	)	$	13,410			$	(7,630	)
Statements of Comprehensive Income
Net income (loss)	$	(7,630	)	$	(2,796	)	$	(10,614	)	$	13,410			$	(7,630	)
Other comprehensive (loss) income	5,706			5,706			3,892			(9,598		)		5,706
Comprehensive (loss) income	$	(1,924	)	$	2,910		$	(6,722	)	$	3,812			$	(1,924	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the three months ended September 30, 2014
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	68,424		$	38,171		$	(106,595	)		$	—
Sales - third party	—			93,457			167,001			—				260,458
Net sales	—			161,881			205,172			(106,595		)		260,458
Cost of sales	—			157,726			191,683			(106,595		)		242,814
Gross profit	—			4,155			13,489			—				17,644
Research and development	—			2,871			—			—				2,871
Selling and administrative expenses	—			11,347			15,633			—				26,980
Impairments	—			—			—			—				—
Rationalizations	—			(1,592		)	12,436			—				10,844
Operating loss	—			(8,471		)	(14,580		)	—				(23,051		)
Other (income) expense, net	—			461			688			—				1,149
Interest expense - affiliate	—			193			—			(193		)		—
Interest expense - third party	8,055			883			131			—				9,069
Interest income - affiliate	(193		)	—			—			193				—
Interest income - third party	—			—			(144		)	—				(144		)
Loss before income taxes	(7,862		)	(10,008		)	(15,255		)	—			`	(33,125		)
Provision for (benefit from) income taxes	(2,830		)	3,313			1,335			—				1,818
Equity in losses of subsidiary	(29,911		)	(16,590		)	—			46,501				—
Net (loss) income	$	(34,943	)	$	(29,911	)	$	(16,590	)	$	46,501			$	(34,943	)
Statements of Comprehensive Income
Net (loss) income	$	(34,943	)	$	(29,911	)	$	(16,590	)	$	46,501			$	(34,943	)
Other comprehensive income (loss)	(23,247		)	(23,247		)	(21,996		)	45,243				(23,247		)
Comprehensive (loss) income	$	(58,190	)	$	(53,158	)	$	(38,586	)	$	91,744			$	(58,190	)

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the nine months ended September 30, 2013
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	155,673		$	111,835		$	(267,508	)		$	—
Sales - third party	—			348,148			510,024			—				858,172
Net sales	—			503,821			621,859			(267,508		)		858,172
Cost of sales	—			431,146			560,419			(267,508		)		724,057
Gross profit	—			72,675			61,440			—				134,115
Research and development	—			8,874			—			—				8,874
Selling and administrative expenses	—			32,833			54,667			—				87,500
Rationalizations	—			2,424			12,169			—				14,593
Operating income	—			28,544			(5,396		)	—				23,148
Other (income) expense, net	—			(762		)	1,515			—				753
Interest expense - affiliate	—			1,112			566			(1,678		)		—
Interest expense - third party	23,393			2,374			1,286			—				27,053
Interest income - affiliate	(982		)	(565		)	(131		)	1,678				—
Interest income - third party	—			—			(162		)	—				(162		)
Income before income taxes	(22,411		)	26,385			(8,470		)	—			`	(4,496		)
Provision for income taxes	(8,113		)	6,922			(4,267		)	—				(5,458		)
Equity in earnings of subsidiary	15,260			(4,203		)	—			(11,057		)		—
Net income	$	962		$	15,260		$	(4,203	)	$	(11,057	)		$	962
Statements of Comprehensive Income
Net income	$	962		$	15,260		$	(4,203	)	$	(11,057	)		$	962
Other comprehensive (loss) income	(11,219		)	(11,219		)	(12,216		)	23,435				(11,219		)
Comprehensive (loss) income	$	(10,257	)	$	4,041		$	(16,419	)	$	12,378			$	(10,257	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the nine months ended September 30, 2014
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	192,740		$	106,742		$	(299,482	)		$	—
Sales - third party	—			315,387			510,046			—				825,433
Net sales	—			508,127			616,788			(299,482		)		825,433
Cost of sales	—			472,202			591,422			(299,482		)		764,142
Gross profit	—			35,925			25,366			—				61,291
Research and development	—			8,544			—			—				8,544
Selling and administrative expenses	—			35,479			53,545			—				89,024
Impairments	—			121,570			—			—				121,570
Rationalizations	—			(1,540		)	13,301			—				11,761
Operating loss	—			(128,128		)	(41,480		)	—				(169,608		)
Other expense (income), net	—			1,281			621			—				1,902
Interest expense - affiliate	—			629			—			(629		)		—
Interest expense - third party	24,010			2,529			684			—				27,223
Interest income - affiliate	(629		)	—			—			629				—
Interest income - third party	—			—			(257		)	—				(257		)
Loss before income taxes	(23,381		)	(132,567		)	(42,528		)	—			`	(198,476		)
(Benefit from) provision for income taxes	(8,417		)	17,712			(5,878		)	—				3,417
Equity in losses of subsidiary	(186,929		)	(36,650		)	—			223,579				—
Net (loss) income	$	(201,893	)	$	(186,929	)	$	(36,650	)	$	223,579			$	(201,893	)
Statements of Comprehensive Income
Net (loss) income	$	(201,893	)	$	(186,929	)	$	(36,650	)	$	223,579			$	(201,893	)
Other comprehensive income (loss)	(20,936		)	(20,936		)	(19,474		)	40,410				(20,936		)
Comprehensive (loss) income	$	(222,829	)	$	(207,865	)	$	(56,124	)	$	263,989			$	(222,829	)

Schedule of Condensed Cash Flow Statement [Table Text Block]

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2013
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash provided by  operating activities:	$	(5,857	)	$	50,244		$	20,791		$	—		$	65,178
Cash flow from investing activities:
(Loans to) repayments from affiliates	7,015			—			—			(7,015		)	—
Capital expenditures	—			(37,081		)	(25,617		)	—			(62,698		)
Proceeds from derivative instruments	—			(22		)	874			—			852
Insurance recoveries	—			280			2,053			—			2,333
Net cash (used in) provided by          investing activities	7,015			(36,823		)	(22,690		)	(7,015		)	(59,513		)
Cash flow from financing activities:
Loans from (repayments to) affiliates	—			(7,015		)	—			7,015			—
Short-term debt borrowings	—			—			(4,082		)	—			(4,082		)
Revolving Facility borrowings	—			67,000			67,000			—			134,000
Revolving Facility reductions	—			(73,500		)	(45,000		)	—			(118,500		)
Principal payments on long term debt	—			(131		)	(58		)	—			(189		)
Supply chain financing	—			—			(14,422		)	—			(14,422		)
Proceeds from exercise of stock options	175			—			—			—			175
Purchase of treasury shares	(844		)	—			—			—			(844		)
Other	(489		)	(16		)	(6,701		)	—			(7,206		)
Net cash used in          financing activities	(1,158		)	(13,662		)	(3,263		)	7,015			(11,068		)
Net (decrease) increase in cash    and cash equivalents	—			(241		)	(5,162		)	—			(5,403		)
Effect of exchange rate changes    on cash and cash equivalents	—			—			(444		)	—			(444		)
Cash and cash equivalents at    beginning of period	—			4,425			12,892			—			17,317
Cash and cash equivalents    at end of period	$	—		$	4,184		$	7,286		$	—		$	11,470

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2014
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash (used in) provided by operating activities:	$	(10,274	)	$	50,298		$	42,865		$	—		$	82,889
Cash flow from investing activities:
Repayments from affiliates	7,070			—			—			(7,070		)	—
Capital expenditures	—			(49,756		)	(19,558		)	—			(69,314		)
Payments for (proceeds from) derivatives	—			(51		)	(522		)	—			(573		)
Proceeds from sale of assets	—			1,706			2,373			—			4,079
Insurance recoveries	—			—			2,834			—			2,834
Net cash provided by (used in)          investing activities	7,070			(48,101		)	(14,873		)	(7,070		)	(62,974		)
Cash flow from financing activities:
Repayments to affiliates	—			(7,070		)	—			7,070			—
Short-term debt borrowings	—			965			(982		)	—			(17		)
Revolving Facility borrowings	—			151,000			78,000			—			229,000
Revolving Facility reductions	—			(148,000		)	(92,000		)	—			(240,000		)
Principal payments on long term debt	—			(98		)	(60		)	—			(158		)
Supply chain financing	—			—			(9,455		)	—			(9,455		)
Proceeds from exercise of stock options	2,813			—			—			—			2,813
Purchase of treasury shares	(620		)	—			—			—			(620		)
Revolver facility refinancing	—			(2,384		)	(357		)	—			(2,741		)
Other	1,011			—			—			—			1,011
Net cash provided by (used in)          financing activities	3,204			(5,587		)	(24,854		)	7,070			(20,167		)
Net increase in cash    and cash equivalents	—			(3,390		)	3,138			—			(252		)
Effect of exchange rate changes    on cash and cash equivalents	—			—			(758		)	—			(758		)
Cash and cash equivalents at    beginning of period	—			4,752			7,136			—			11,888
Cash and cash equivalents    at end of period	$	—		$	1,362		$	9,516		$	—		$	10,878

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Supplemental Guarantor Infromation Supplemental Guarantor Information (Cash Flows) (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2013
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	$ 82,889	$ 65,178
Cash flow from investing activities:
(Loans to) repayments from affiliates	0	0
Capital expenditures	(69,314)	(62,698)
Proceeds from derivative instruments	(573)	852
Proceeds from sale of assets	4,079	0
Other	2,834	2,333
Net cash used in investing activities	(62,974)	(59,513)
Cash flow from financing activities:
Repayments to affiliates	0
Loans from (repayments to) affiliates		0
Short-term debt borrowings	(17)	(4,082)
Revolving Facility borrowings	229,000	134,000
Revolving Facility reductions	(240,000)	(118,500)
Principal payments on long term debt	(158)	(189)
Supply chain financing	(9,455)	(14,422)
Proceeds from exercise of stock options	2,813	175
Purchase of treasury shares	(620)	(844)
Revolver Refinancing Costs	(2,741)	0
Proceeds from (Payments for) Other Financing Activities	1,011	(7,206)
Net cash provided by financing activities	(20,167)	(11,068)
Net (decrease) increase in cash and cash equivalents	(252)	(5,403)
Effect of exchange rate changes on cash and cash equivalents	(758)	(444)
Cash and cash equivalents at beginning of period	11,888	17,317	11,470
Cash and cash equivalents at end of period	10,878		11,470
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	(10,274)	(5,857)
Cash flow from investing activities:
(Loans to) repayments from affiliates	7,070	7,015
Capital expenditures	0	0
Proceeds from derivative instruments	0	0
Proceeds from sale of assets	0
Other	0	0
Net cash used in investing activities	7,070	7,015
Cash flow from financing activities:
Repayments to affiliates	0
Loans from (repayments to) affiliates		0
Short-term debt borrowings	0	0
Revolving Facility borrowings	0	0
Revolving Facility reductions	0	0
Principal payments on long term debt	0	0
Supply chain financing	0	0
Proceeds from exercise of stock options	2,813	175
Purchase of treasury shares	(620)	(844)
Revolver Refinancing Costs	0
Proceeds from (Payments for) Other Financing Activities	1,011	(489)
Net cash provided by financing activities	3,204	(1,158)
Net (decrease) increase in cash and cash equivalents	0	0
Effect of exchange rate changes on cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0	0
Cash and cash equivalents at end of period	0		0
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	50,298	50,244
Cash flow from investing activities:
(Loans to) repayments from affiliates	0	0
Capital expenditures	(49,756)	(37,081)
Proceeds from derivative instruments	(51)	(22)
Proceeds from sale of assets	1,706
Other	0	280
Net cash used in investing activities	(48,101)	(36,823)
Cash flow from financing activities:
Repayments to affiliates	(7,070)
Loans from (repayments to) affiliates		(7,015)
Short-term debt borrowings	965	0
Revolving Facility borrowings	151,000	67,000
Revolving Facility reductions	(148,000)	(73,500)
Principal payments on long term debt	(98)	(131)
Supply chain financing	0	0
Proceeds from exercise of stock options	0	0
Purchase of treasury shares	0	0
Revolver Refinancing Costs	(2,384)
Proceeds from (Payments for) Other Financing Activities	0	(16)
Net cash provided by financing activities	(5,587)	(13,662)
Net (decrease) increase in cash and cash equivalents	(3,390)	(241)
Effect of exchange rate changes on cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	4,752	4,425	4,184
Cash and cash equivalents at end of period	1,362		4,184
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	42,865	20,791
Cash flow from investing activities:
(Loans to) repayments from affiliates	0	0
Capital expenditures	(19,558)	(25,617)
Proceeds from derivative instruments	(522)	874
Proceeds from sale of assets	2,373
Other	2,834	2,053
Net cash used in investing activities	(14,873)	(22,690)
Cash flow from financing activities:
Repayments to affiliates	0
Loans from (repayments to) affiliates		0
Short-term debt borrowings	(982)	(4,082)
Revolving Facility borrowings	78,000	67,000
Revolving Facility reductions	(92,000)	(45,000)
Principal payments on long term debt	(60)	(58)
Supply chain financing	(9,455)	(14,422)
Proceeds from exercise of stock options	0	0
Purchase of treasury shares	0	0
Revolver Refinancing Costs	(357)
Proceeds from (Payments for) Other Financing Activities	0	(6,701)
Net cash provided by financing activities	(24,854)	(3,263)
Net (decrease) increase in cash and cash equivalents	3,138	(5,162)
Effect of exchange rate changes on cash and cash equivalents	(758)	(444)
Cash and cash equivalents at beginning of period	7,136	12,892	7,286
Cash and cash equivalents at end of period	9,516		7,286
Consolidating Entries and Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	0	0
Cash flow from investing activities:
(Loans to) repayments from affiliates	(7,070)	(7,015)
Capital expenditures	0	0
Proceeds from derivative instruments	0	0
Proceeds from sale of assets	0
Other	0	0
Net cash used in investing activities	(7,070)	(7,015)
Cash flow from financing activities:
Repayments to affiliates	7,070
Loans from (repayments to) affiliates		7,015
Short-term debt borrowings	0	0
Revolving Facility borrowings	0	0
Revolving Facility reductions	0	0
Principal payments on long term debt	0	0
Supply chain financing	0	0
Proceeds from exercise of stock options	0	0
Purchase of treasury shares	0	0
Revolver Refinancing Costs	0
Proceeds from (Payments for) Other Financing Activities	0	0
Net cash provided by financing activities	7,070	7,015
Net (decrease) increase in cash and cash equivalents	0	0
Effect of exchange rate changes on cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0	0
Cash and cash equivalents at end of period	$ 0		$ 0

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Organization And Summary Of Significant Accounting Policies (Policy)

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Basis Of Presentation

A. Organization

GrafTech International Ltd. (the "Company") is one of the world’s largest manufacturers and providers of high quality synthetic and natural graphite and carbon based products. References herein to “GTI,” “we,” “our,” or “us” refer collectively to GrafTech International Ltd. and its subsidiaries. We have seven major product categories: graphite electrodes, refractory products, needle coke products, advanced electronics technologies, advanced graphite materials, advanced composite materials and advanced materials, which are reported in the following segments:

Industrial Materials includes graphite electrodes, refractory products, and needle coke products, and primarily serves the steel industry.

Engineered Solutions includes advanced electronics technologies, advanced graphite materials, advanced composite materials and advanced materials, and provides primary and specialty products to the advanced electronics, industrial, energy, transportation and defense industries.

B. Basis of Presentation

The interim Consolidated Financial Statements are unaudited; however, in the opinion of management, they have been prepared in accordance with Rule 10-01 of Regulation S-X and in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The December 31, 2013 financial position data included herein was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 (the “Annual Report”) but does not include all disclosures required by GAAP. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the accompanying notes, contained in the Annual Report.

The unaudited consolidated financial statements reflect all adjustments (all of which are of a normal, recurring nature) which management considers necessary for a fair statement of financial position, results of operations, comprehensive income and cash flows for the interim period presented. The results for the interim periods are not necessarily indicative of results which may be expected for any other interim period or for the full year.

C. New Accounting Standards

In July 2013, the Financial Accounting Standards Board ("FASB") issued guidance on Income Taxes titled “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This guidance requires that financial statements reflect a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward as reduced by any unrecognized tax benefit or a portion of an unrecognized tax benefit. The updated guidance became effective for the Company's interim and annual periods beginning after December 15, 2013. We adopted the guidance effective January 1, 2014 and its implementation did not have a material impact to our financial statements.

In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605—Revenue Recognition and most industry-specific guidance throughout the Codification. This ASU requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. We are in the process of assessing the impact of the adoption of ASU 2014-09 on the Company's financial position, results of operations and cash flows.

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Rationalizations Rationalization Text (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Restructuring Cost and Reserve [Line Items]
Incurred restructuring Charges	$ 10,844,000	$ 14,593,000	$ 11,761,000	$ 14,593,000
Impairment charge	0	0	121,570,000	0
2013 Rationalization Initiatives
Restructuring Cost and Reserve [Line Items]
Incurred restructuring Charges	100,000		900,000
Accelerated depreciation	800,000
Other (recorded in Cost of sales)	1,600,000		6,800,000
Expected cost			100,000,000
Restructuring and related - expected cash outlays			30,000,000
Cost incurred to date			96,100,000
Industrial Materials Segment
Restructuring Cost and Reserve [Line Items]
Estimated reduction in capacity (metric tons)			60,000
Expected number of positions eliminated (employees)			600
Number of positions eliminated (percent)				20.00%
Engineered Solutions Segment
Restructuring Cost and Reserve [Line Items]
Expected number of positions eliminated (employees)			40
2014 Engineered Solutions Rationalization
Restructuring Cost and Reserve [Line Items]
Expected cost			25,000,000
Impairments (recorded in Impairments)	121,600,000
Restructuring and related - expected cash outlays			5,000,000
Cost incurred to date			18,800,000
Goodwill, impairment loss				(413,000)
Inventory write-down			13,400,000
2014 Corporate and Research & Development Rationalization
Restructuring Cost and Reserve [Line Items]
Number of positions eliminated (percent)				25.00%
Expected cost			20,000,000
Restructuring and related - expected cash outlays			$ 12,000,000

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Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule Of Restricted Stock And Performance Share Awards Activity

Restricted stock and performance share awards activity under the plans for the nine months ended September 30, 2014 was:

	Number of Shares		Weighted- Average Grant  Date Fair Value
Outstanding unvested as of January 1, 2014	1,633,491		$	10.98
Granted	215,100		10.53
Vested	(188,732	)	13.90
Forfeited/canceled/expired	(807,296	)	10.20
Outstanding unvested as of September 30, 2014	852,563		10.98

Schedule Of Stock Option Activity Under The Plans

	Number of Shares		Weighted- Average Exercise Price
Outstanding as of January 1, 2014	1,916,718		$	12.47
Granted	145,034		11.56
Forfeited/canceled/expired	(174,093	)	11.64
Exercised	(316,733	)	8.88
Outstanding as of September 30, 2014	1,570,926		13.20

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Organization And Summary Of Significant Accounting Policies

9 Months Ended

Sep. 30, 2014

Accounting Policies [Abstract]

Organization And Summary Of Significant Accounting Policies

Organization and Summary of Significant Accounting Policies

A. Organization

GrafTech International Ltd. (the "Company") is one of the world’s largest manufacturers and providers of high quality synthetic and natural graphite and carbon based products. References herein to “GTI,” “we,” “our,” or “us” refer collectively to GrafTech International Ltd. and its subsidiaries. We have seven major product categories: graphite electrodes, refractory products, needle coke products, advanced electronics technologies, advanced graphite materials, advanced composite materials and advanced materials, which are reported in the following segments:

Industrial Materials includes graphite electrodes, refractory products, and needle coke products, and primarily serves the steel industry.

Engineered Solutions includes advanced electronics technologies, advanced graphite materials, advanced composite materials and advanced materials, and provides primary and specialty products to the advanced electronics, industrial, energy, transportation and defense industries.

B. Basis of Presentation

The interim Consolidated Financial Statements are unaudited; however, in the opinion of management, they have been prepared in accordance with Rule 10-01 of Regulation S-X and in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The December 31, 2013 financial position data included herein was derived from the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2013 (the “Annual Report”) but does not include all disclosures required by GAAP. These interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements, including the accompanying notes, contained in the Annual Report.

The unaudited consolidated financial statements reflect all adjustments (all of which are of a normal, recurring nature) which management considers necessary for a fair statement of financial position, results of operations, comprehensive income and cash flows for the interim period presented. The results for the interim periods are not necessarily indicative of results which may be expected for any other interim period or for the full year.

C. New Accounting Standards

In July 2013, the Financial Accounting Standards Board ("FASB") issued guidance on Income Taxes titled “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” This guidance requires that financial statements reflect a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward as reduced by any unrecognized tax benefit or a portion of an unrecognized tax benefit. The updated guidance became effective for the Company's interim and annual periods beginning after December 15, 2013. We adopted the guidance effective January 1, 2014 and its implementation did not have a material impact to our financial statements.

In May 2014, FASB issued ASU No. 2014-09, Revenue from Contracts with Customers. This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605—Revenue Recognition and most industry-specific guidance throughout the Codification. This ASU requires that an entity recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. We are in the process of assessing the impact of the adoption of ASU 2014-09 on the Company's financial position, results of operations and cash flows.

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]
Accounts and notes receivable, net of allowance for doubtful accounts	$ 0	$ 7,573
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	100,000,000	100,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	225,000,000	225,000,000
Common stock, shares issued	0	150,869,239
Cost of common stock held in treasury, shares	0	16,418,710
Common stock held in employee benefit and compensation trusts, shares	0	76,095

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Supply Chain Financing

9 Months Ended

Sep. 30, 2014

Supply Chain Financing [Abstract]

Supply Chain Financing

Supply Chain Financing

We have a supply chain financing arrangement with a financing party. Under this arrangement, we essentially assign our rights to purchase needle coke from a supplier to the financing party. The financing party purchases the product from a supplier under the supplier's standard payment terms and then immediately resells it to us under longer payment terms. The financing party pays the supplier the purchase price for the product and then we pay the financing party. Our payment to the financing party for this needle coke includes a mark-up (the “Mark-Up”). The Mark-Up is a premium expressed as a percentage of the purchase price. The Mark-Up is subject to quarterly reviews. This arrangement helps us to maintain a balanced cash conversion cycle between purchased inventory and the collection of receivables. Based on the terms of the arrangement, the total amount that we owe to the financing party cannot exceed $49.3 million at any point in time.

We record the inventory once title and risk of loss transfers from the supplier to the financing party. We record our liability to the financing party as an accrued liability. Our liability under this arrangement was $9.5 million as of December 31, 2013 and nil as of September 30, 2014. We recognized Mark-Up of $0.4 million as interest expense in the nine months endedSeptember 30, 2013 and nil through September 30, 2014.

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Document And Entity Information	9 Months Ended
	Sep. 30, 2014	Oct. 14, 2014
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Entity Current Reporting Status	Yes
Document Period End Date	Sep. 30, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Entity Registrant Name	GrafTech International LTD.
Entity Central Index Key	0000931148
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		136,420,023

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Contingencies

9 Months Ended

Sep. 30, 2014

Loss Contingency [Abstract]

Contingencies

Contingencies

Legal Proceedings

We are involved in various investigations, lawsuits, claims, demands, environmental compliance programs and other legal proceedings arising out of or incidental to the conduct of our business. While it is not possible to determine the ultimate disposition of each of these matters, we do not believe that their ultimate disposition will have a material adverse effect on our financial position, results of operations or cash flows.

GrafTech and Brazil Legacy Antitrust Investigation - On October 8, 2014, the General Superintendent of the Administrative Council of Economic Defense ("CADE") in Brazil announced that the agency would be continuing an investigation of anticompetitive activity allegedly affecting the Brazilian market from 1992 to 1998. The investigation was originally commenced in 2002 and has essentially been dormant for many years. There have been no penalties assessed or asserted against GrafTech.

The investigation purportedly relates to violations of antitrust laws that were previously investigated in 1997 - 2002 by the U.S. Department of Justice, the European Commission, and other countries in connection with the sale of graphite electrodes. Those antitrust investigations and related lawsuits and claims have long been resolved. Several of the investigations and related lawsuits and claims resulted in fines and settlements, all of which were timely paid many years ago.

GrafTech has cooperated in all of these legacy investigations, including having timely responded to requests for information from the Brazilian agency several years ago. GrafTech plans to respond as appropriate to the resurrection of the Brazilian matter. GrafTech believes that it has procedural and substantive defenses to the allegations in the Brazilian matter and that no further investigatory activities are warranted.

Product Warranties

We generally sell products with a limited warranty. We accrue for known warranty claims if a loss is probable and can be reasonably estimated. We also accrue for estimated warranty claims incurred based on a historical claims charge analysis. Claims accrued but not yet paid and the related activity within the accrual for the nine months ended September 30, 2014, are presented below: 

	(Dollars in thousands)
Balance as of December 31, 2013	$	1,050
Product warranty adjustments	(117		)
Payments and settlements	(202		)
Balance as of September 30, 2014	$	731

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Consolidated Statements Of Income And Comprehensive Income (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net sales	$ 260,458	$ 303,084	$ 825,433	$ 858,172
Cost of sales	242,814	266,440	764,142	724,057
Gross profit	17,644	36,644	61,291	134,115
Research and development	2,871	2,994	8,544	8,874
Selling and administrative expenses	26,980	27,626	89,024	87,500
Restructuring Charges	10,844	14,593	11,761	14,593
Impairment charge	0	0	121,570	0
Operating income	(23,051)	(8,569)	(169,608)	23,148
Other expense (income), net	1,149	(772)	1,902	753
Interest expense	9,069	9,098	27,223	27,053
Interest income	(144)	(49)	(257)	(162)
Income before provision for income taxes	(33,125)	(16,846)	(198,476)	(4,496)
Provision for (benefit from) income taxes	1,818	(9,216)	3,417	(5,458)
Net income	(34,943)	(7,630)	(201,893)	962
Basic income per common share:
Net income per share	$ (0.26)	$ (0.06)	$ (1.48)	$ 0.01
Weighted average common shares outstanding	136,374,914	135,134,144	136,006,573	134,948,507
Diluted income per common share:
Net income per share	$ (0.26)	$ (0.06)	$ (1.48)	$ 0.01
Weighted average common shares outstanding	136,374,914	135,134,144	136,006,573	135,121,614
Other comprehensive income:
Foreign currency translation adjustments	(22,579)	5,230	(20,432)	(11,902)
Commodities and foreign currency derivatives and other, net of tax of ($170), ($39), ($265) and ($92), respectively	(668)	476	(504)	683
Other comprehensive income (loss), net of tax:	(23,247)	5,706	(20,936)	(11,219)
Comprehensive income	$ (58,190)	$ (1,924)	$ (222,829)	$ (10,257)

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Benefit Plans

9 Months Ended

Sep. 30, 2014

Compensation and Retirement Disclosure [Abstract]

Benefit Plans

Benefit Plans

The components of our consolidated net pension costs are set forth in the following table:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
	(Dollars in thousands)						(Dollars in thousands)
Service cost	$	489		$	473		$	1,467		$	1,419
Interest cost	1,985			2,169			5,955			6,507
Expected return on plan assets	(1,706		)	(1,938		)	(5,118		)	(5,814		)
Amortization of prior service cost	6			1			18			3
Net cost	$	774		$	705		$	2,322		$	2,115

The components of our consolidated net postretirement costs are set forth in the following table: 

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
	(Dollars in thousands)						(Dollars in thousands)
Service cost	$	28		$	19		$	84		$	57
Interest cost	331			352			993			1,056
Curtailment loss	—			—			—			1,048
Amortization of prior service benefit	(50		)	(47		)	(150		)	(141		)
Net cost	$	309		$	324		$	927		$	2,020

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Segment Reporting

9 Months Ended

Sep. 30, 2014

Segment Reporting Information, Revenue for Reportable Segment [Abstract]

Segment Reporting

Segment Reporting

We operate in two reportable segments: Industrial Materials and Engineered Solutions.

Industrial Materials. Our Industrial Materials segment manufactures and delivers high quality graphite electrodes, refractory products and needle coke products. Electrodes are key components of the conductive power systems used to produce steel and other non-ferrous metals. Refractory products are used in blast furnaces and submerged arc furnaces due to their high thermal conductivity and the ease with which they can be machined to large or complex shapes. Needle coke, a crystalline form of carbon derived from decant oil, is the key ingredient in, and is used primarily in, the production of graphite electrodes.

Engineered Solutions. The Engineered Solutions segment includes advanced electronics technologies, advanced graphite materials, advanced composite materials and advanced materials. Advanced electronics technologies products consist of electronic thermal management solutions, fuel cell components and sealing materials. Advanced graphite materials are highly engineered synthetic graphite products used in many areas due to their unique properties and the ability to tailor them to specific solutions. These products are used in transportation, alternative energy, metallurgical, chemical, oil and gas exploration and various other industries. Advanced composite materials are highly engineered carbon products that are woven into various shapes primarily to support the aerospace and defense industries. Advanced materials use carbon and graphite powders as components or additives in a variety of industries, including metallurgical processing, battery and fuel cell components, and polymer additives.

We continue to evaluate the performance of our segments based on segment operating income. Intersegment sales and transfers are not material and the accounting policies of the reportable segments are the same as those for our Consolidated Financial Statements as a whole. Corporate expenses are allocated to segments based on each segment’s percentage of consolidated net sales.

The following tables summarize financial information concerning our reportable segments:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
	(Dollars in thousands)						(Dollars in thousands)
Net sales to external customers:
Industrial Materials	$	233,277		$	208,573		$	673,394		$	634,004
Engineered Solutions	69,807			51,885			184,778			191,429
Total net sales	$	303,084		$	260,458		$	858,172		$	825,433
Segment operating (loss) income:
Industrial Materials	$	(12,945	)	$	(7,219	)	$	10,663		$	(28,009	)
Engineered Solutions	4,376			(15,832		)	12,485			(141,599		)
Total segment operating (loss) income	$	(8,569	)	$	(23,051	)	$	23,148		$	(169,608	)
Reconciliation of segment operating (loss) income to     loss before provision for income taxes
Other expense (income), net	$	(772	)	$	1,149		$	753		$	1,902
Interest expense	9,098			9,069			27,053			27,223
Interest income	(49		)	(144		)	(162		)	(257		)
Loss before provision for income taxes	$	(16,846	)	$	(33,125	)	$	(4,496	)	$	(198,476	)

Assets are managed based on geographic location because our reportable segments share certain facilities. Assets by reportable segment are estimated based on the value of property, plant and equipment at each location and the activities performed at the location.  As a result of the rationalization initiatives and related impairments discussed in Note 2, the carrying value of our property, plant and equipment has changed significantly since December 31, 2013. The following is a summary of property, plant and equipment by reportable segment.

	As of December 31, 2013		As of September 30, 2014
	(Dollars in thousands)
Property, plant & equipment:
Industrial Materials	$	601,322	$	568,213
Engineered Solutions	219,663		97,342
Total property, plant & equipment	$	820,985	$	665,555

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Rationalizations (Tables)

9 Months Ended

Sep. 30, 2014

Restructuring and Related Activities [Abstract]

Rationalization Charges

Charges incurred related to the 2013 rationalization initiatives for the three and nine months endedSeptember 30, 2014 are as follows:

	For the Three Months Ended September 30, 2014								For the Nine Months Ended September 30, 2014
	Industrial Materials Segment			Engineered Solutions Segment		Total			Industrial Materials Segment		Engineered Solutions Segment			Total
	(Dollars in thousands)								(Dollars in thousands)
Accelerated depreciation     (recorded in Cost of sales)	$	838		$	—	$	838		$	21,690	$	826		$	22,516
Other (recorded in Cost     of sales)	1,618			6		1,624			6,194		622			6,816
Other (recorded in Selling     and administrative)	21			—		21			99		—			99
Severance and related costs     (recorded in Rationalizations)	(52		)	—		(52		)	366		(28		)	338
Contract terminations (recorded in Rationalizations)	81			—		81			609		—			609
Total 2013 rationalization plan     and related charges	$	2,506		$	6	$	2,512		$	28,958	$	1,420		$	30,378

Charges incurred related to the 2014 Corporate and Research & Development rationalization initiatives for the three and nine months endedSeptember 30, 2014 are as follows:

	For the Three and Nine  Months Ended September 30, 2014
	(dollars in thousands)
Accelerated depreciation (recorded in Cost of sales)	$	5
Accelerated depreciation (recorded in Overhead)	89
Severance and related costs (recorded in Rationalizations)	8,130
Contract terminations (recorded in Rationalizations)	74
Total 2014 corporate rationalization         and related charges	$	8,298

Charges incurred related to the 2014 Engineered Solutions rationalization initiatives for the three and nine months endedSeptember 30, 2014 are as follows:

	For the Three  Months Ended September 30, 2014		For the Nine Months Ended September 30, 2014
	(dollars in thousands)
Accelerated depreciation (recorded in Cost of sales)	$	2,802	$	2,802
Other (recorded in Cost of sales)	2,780		13,341
Severance and related charges (recorded in Rationalizations)	2,537		2,537
Contract terminations (recorded in Rationalizations)	74		74
Impairments (recorded in Impairments)	—		121,570
Total 2014 Engineered Solutions rationalization         and related charges	$	8,193	$	140,324

Schedule of Restructuring Reserve

This liability is recorded as a current liability on the Consolidated Balance Sheet.

	(Dollars in thousands)
Balance as of December 31, 2013	$	18,421
Charges incurred	693
Change in estimates	254
Payments and settlements	(16,053		)
Effect of change in currency exchange rates	(997		)
Balance as of September 30, 2014	$	2,318

The following table represents the roll-forward of the liability incurred for employee termination benefits and contract termination costs incurred in connection with the 2014 Engineered Solutions rationalization initiatives described above. This liability is recorded as a current liability on the Consolidated Balance Sheet.

	(Dollars in thousands)
Balance as of December 31, 2013	$	—
Charges incurred	2,611
Change in estimates	—
Payments and settlements	(386		)
Effect of change in currency exchange rates	—
Balance as of September 30, 2014	$	2,225

This liability is recorded as a current liability on the Consolidated Balance Sheet.

	(Dollars in thousands)
Balance as of December 31, 2013	$	—
Charges incurred	8,204
Change in estimates	—
Payments and settlements	—
Effect of change in currency exchange rates	—
Balance as of September 30, 2014	$	8,204

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Income Taxes

9 Months Ended

Sep. 30, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

We compute and apply to ordinary income an estimated annual effective tax rate on a quarterly basis based on current and forecasted business levels and activities, including the mix of domestic and foreign results and enacted tax laws. The estimated annual effective tax rate is updated quarterly based on actual results and updated operating forecasts. Ordinary income refers to income (loss) before income tax expense excluding significant, unusual, or infrequently occurring items. The tax effect of an unusual or infrequently occurring item is recorded in the interim period in which it occurs as a discrete item of tax.

The following table summarizes the provision for income taxes for the three and nine months ended September 30, 2013 and September 30, 2014:

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
	(Dollars in thousands)						(Dollars in thousands)
Tax (benefit) expense	$	(9,216	)	$	1,818		$	(5,458	)	$	3,417
Pretax income (loss)	$	(16,846	)	$	(33,125	)	$	(4,496	)	$	(198,476	)
Effective tax rates	54.7		%	(5.5		)%	121.4		%	(1.7		)%

During the second quarter of 2014, we impaired certain long-lived assets and announced the exit of certain product lines within our Advanced Graphite Material ("AGM") product group, which is described in more detail in Note 2. The impairment charges and other impairment related charges were incurred primarily in the U.S. jurisdiction. As a result, we determined that it is no longer “more likely than not” that we will generate sufficient future U.S. taxable income to realize our deferred tax assets related to U.S. foreign tax credits and state net operating loss carryforwards, as well as our net U.S. deferred tax assets.

For the three and nine months ended September 30, 2014, the effective tax rate differs from the U.S. statutory rate of 35% primarily due to the recording of a valuation allowance against U.S. net deferred tax assets. As a result of the significant negative evidence of recent losses, the Company recognized a $57.0 million non-cash charge in the second quarter of 2014 to increase the valuation allowance against these deferred income tax assets. During the third quarter of 2014, the Company again incurred a loss in the U.S. jurisdiction. As a result, a valuation allowance against the related deferred tax asset has been reflected in the quarterly effective tax rate. The recognition of the valuation allowance does not result in or limit the Company's ability to utilize these tax assets in the future.

We continue to assess the need for valuation allowances against deferred tax assets based on determinations of whether it is more likely than not that deferred tax benefits will be realized through the generation of future taxable income. Appropriate consideration is given to all available evidence, both positive and negative, in assessing the need for a valuation allowance. Examples of positive evidence would include a strong earnings history, an event or events that would increase our taxable income through a continued reduction of expenses, and tax planning strategies that would indicate an ability to realize deferred tax assets. In circumstances where the significant positive evidence does not outweigh the negative evidence in regards to whether or not a valuation allowance is required, we have maintained valuation allowances on those net deferred tax assets. We established a valuation allowance against our U.S. net deferred tax assets in the second quarter of 2014, as described in more detail above.

As of September 30, 2014, we had unrecognized tax benefits of $4.7 million, which, if recognized, would have a favorable impact on our effective tax rate. It is reasonably possible that a reduction of unrecognized tax benefits of $2.6 million may occur within 12 months due to the expiration of statutes of limitation.

During the nine months ended September 30, 2014, we settled our audits with the U.S. federal tax authorities for the tax years ended 2008 and 2010-2011, reducing our unrecognized tax benefits by $2.7 million, of which $0.3 million had a favorable impact on our effective tax rate.

We file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. All U.S. federal tax years prior to 2012 are generally closed by statute or have been audited and settled with the applicable domestic tax authorities. All other jurisdictions are still open to examination beginning after 2008.

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Inventories

9 Months Ended

Sep. 30, 2014

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are comprised of the following: 

	As of December 31, 2013			As of September 30, 2014
	(Dollars in thousands)
Inventories:
Raw materials and supplies	$	184,420		$	150,340
Work in process	245,160			191,340
Finished goods	78,446			97,063
	508,026			438,743
Reserves	(17,612		)	(20,266		)
Total	$	490,414		$	418,477

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Derivative Instruments (Schedule Of Realized (Gains) Losses On Derivatives Recognized In Statement Of Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Designated as Hedging Instrument [Member] | Derivatives Designated As Cash Flow Hedges [Member] | Foreign Currency Derivatives [Member] | Cost Of Goods Sold/Other Expense (Income) / Revenue [Member]
Derivative [Line Items]
Amount of (Gain)/Loss Recognized (Effective Portion)	$ (191)	$ 228	$ 137	$ 38
Designated as Hedging Instrument [Member] | Derivatives Designated As Cash Flow Hedges [Member] | Commodity Forward Derivatives [Member] | Cost of Sales [Member]
Derivative [Line Items]
Amount of (Gain)/Loss Recognized (Effective Portion)	98	454	124	591
Not Designated As Hedging Instrument [Member] | Derivatives Designated As Fair Value Hedges [Member] | Foreign Currency Derivatives [Member] | Cost Of Goods Sold/Other Expense (Income) [Member]
Derivative [Line Items]
Amount of (Gain)/Loss Recognized (Effective Portion)	$ 444	$ 509	$ 383	$ (912)

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Goodwill And Other Intangible Assets

9 Months Ended

Sep. 30, 2014

Deferred Tax Liabilities, Goodwill and Intangible Assets [Abstract]

Goodwill And Other Intangible Assets

Goodwill and Other Intangible Assets

We are required to review goodwill and indefinite-lived intangible assets annually for impairment. Goodwill impairment is tested at the reporting unit level (graphite electrodes, needle coke and advanced graphite materials) on an annual basis and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

Our annual impairment test of goodwill was performed as of December 31, 2013 for all reporting units. The estimated fair values of our reporting units were based on discounted cash flow ("DCF") models derived from internal earnings forecasts and assumptions. The assumptions and estimates used in these valuations incorporated the then current and expected economic environment. Based on these valuations, the fair values substantially exceeded our carrying values. In addition to the quantitative analysis, we qualitatively assessed our reporting units and believe that the quantitative analysis supporting the fair values in excess of the carrying values was appropriate.

As a result of the deteriorating market conditions impacting our AGM product group, as discussed in Note 2, goodwill assigned to our AGM reporting unit of $0.4 million was written off in the second quarter of 2014.

We evaluated potential triggering events as of September 30, 2014 and noted that the aggregate carrying value of our consolidated net assets significantly exceeded our market capitalization. As a result, we determined that the recent decline in our market capitalization was a triggering event and tested our goodwill for impairment. The estimated fair values of our reporting units were based on long term discounted cash flow models derived from internal earnings forecasts and assumptions. These DCF models included twelve years of forecasted cash flows, plus an estimated terminal value. For the first several years in the models, the cash flows were based on the current operating and capital plans as prepared by management and approved by executive management. These plans were based on existing operating performance, as adjusted for current trends regarding pricing and currency rates, as well as known or expected near-term changes in product mix, operating costs, operating configuration and system-wide capacity. These plans also incorporated required or anticipated near-term capital projects and working capital changes. In a DCF model, the earlier years have a more pronounced impact on the calculated value as compared to later periods. As such, if economic conditions were to deteriorate or events were to occur resulting in the ultimate operating results for these initial years being significantly lower than what is reflected in the DCF, that would have an unfavorable effect on estimated fair values.

Discount rates are based on appropriately weighted average cost of capital ("WACC"), Company specific beta and mix of debt to equity are inputs into the determination of the discount rate, which is then qualitatively assessed from the standpoint of potential market participants. WACC has a significant impact on estimated fair values since this rate is used to discount the projected cash flows. As WACC increases, estimated fair values based on DCF decrease and vice versa.

Based on these valuations, the implied fair value of the reporting units substantially exceeded their carrying values. The results of the discounted cash flows for all reporting units, after deducting corporate debt, were compared to the market capitalization to determine an implied control premium. We evaluated the appropriateness of the implied control premium using equity valuations based on a share price average range, spot share prices as well as  third party estimates of earnings and share price.

In addition to the quantitative analysis, we qualitatively assessed our reporting units and we believe that the quantitative analysis supporting the fair values in excess of the carrying values is appropriate. However, a further deterioration in the global economic environment or in any of the input assumptions in our calculation could adversely affect the fair values of our reporting units and result in an impairment of some or all of the goodwill on the balance sheet.

The changes in the carrying value of goodwill during the nine months ended September 30, 2014 is as follows:

	Total
	(Dollars in Thousands)
Balance as of December 31, 2013	$	496,810
Impairment	(413		)
Currency translation effect	(453		)
Balance as of September 30, 2014	$	495,944

The following table summarizes acquired intangible assets with determinable useful lives by major category as of December 31, 2013 and September 30, 2014:

	As of December 31, 2013							As of September 30, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization & Impairment			Net Carrying Amount
	(Dollars in Thousands)
Trade name	$	7,900	$	(3,944	)	$	3,956	$	7,900	$	(4,495	)	$	3,405
Technological know-how	43,349		(18,582		)	24,767		43,349		(23,446		)	19,903
Customer –related     intangible	110,798		(44,664		)	66,134		110,798		(54,209		)	56,589
Total finite-lived     intangible assets	$	162,047	$	(67,190	)	$	94,857	$	162,047	$	(82,150	)	$	79,897

Accumulated amortization as of September 30, 2014 included impairment charges related to our rationalization initiatives discussed in Note 2. The impairments represented charges of $0.4 million to customer-related intangible assets and $0.3 million to technological know-how.

Amortization expense of acquired intangible assets was $5.0 million and $4.7 millionin the three months ended September 30, 2013 and September 30, 2014, respectively. Estimated amortization expense will approximate $4.7 million in the remainder of 2014, $17.1 million in 2015, $13.1 million in 2016, $11.8 million in 2017 and $10.7 million in 2018.

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Long-Term Debt And Liquidity

9 Months Ended

Sep. 30, 2014

Long-term Debt and Capital Lease Obligations [Abstract]

Long-Term Debt And Liquidity

Long-Term Debt and Liquidity

The following table presents our long-term debt: 

	As of December 31, 2013		As of September 30, 2014
	(Dollars in thousands)
Revolving Facility	$	64,000	$	53,000
Senior Notes	300,000		300,000
Senior Subordinated Notes	175,675		184,820
Other Debt	1,918		1,689
Total	$	541,593	$	539,509

The fair value of long-term debt, which was determined using Level 2 inputs, was $549.8 million, versus a book value of $541.6 million as of December 31, 2013. As of September 30, 2014, the fair value of our long-term debt was $527.5 million versus a book value of $539.5 million.

Revolving Facility

On April 23, 2014, the Company and certain of its subsidiaries entered into an Amended and Restated Credit Agreement (the "Revolving Facility") that provides for, among other things, a five-year tenor, reduced borrowing spreads and greater financial flexibility. The Revolving Facility has a borrowing capacity of $470 million and matures in April 2019.

The interest rate applicable to the Revolving Credit Facility is, at GrafTech’s option, either LIBOR plus a margin ranging from 1.25% to 2.00% (depending on our total net leverage ratio) or, in the case of dollar denominated loans, the alternate base rate plus a margin ranging from 0.25% to 1.00% (depending upon such ratio). The alternate base rate is the highest of (i) the prime rate announced by JPMorgan Chase Bank, N.A., (ii) the federal fund effective rate plus one-half of 1.0% and (iii) the London interbank offering rate (as adjusted) for a one-month period plus 1.0%. The borrowers pay a per annum fee ranging from 0.20% to 0.35% (depending on our total leverage ratio) on the undrawn portion of the commitments under the Revolving Facility.

The financial covenants under the Revolving Facility require us to maintain a minimum cash interest coverage ratio of 2.50 to 1.00 and a maximum senior secured leverage ratio of 3.00 to 1.00, subject to adjustment for certain events.

Senior Notes

On November 20, 2012, the Company issued $300 million principal amount of 6.375% Senior Notes due 2020 (the "Senior Notes"). The Senior Notes are the Company's senior unsecured obligations and rank pari passu with all of the Company's existing and future senior unsecured indebtedness. The Senior Notes are guaranteed on a senior unsecured basis by each of the Company's existing and future subsidiaries that guarantee certain other indebtedness of the Company or another guarantor.

The Senior Notes bear interest at a rate of 6.375% per year, payable semi-annually in arrears on May 15 and November 15 of each year. The Senior Notes mature on November 15, 2020.

The Company is entitled to redeem some or all of the Senior Notes at any time on or after November 15, 2016, at the redemption prices set forth in the indenture. In addition, prior to November 15, 2016, the Company may redeem some or all of the Senior Notes at a price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, plus a “make whole” premium determined as set forth in the indenture. The Company is also entitled to redeem up to 35% of the aggregate principal amount of the Senior Notes before November 15, 2015 with the net proceeds from certain equity offerings at a redemption price of 106.375% of the principal amount plus accrued and unpaid interest, if any.

If, prior to maturity, a change in control (as defined in the indenture) of the Company occurs and thereafter certain downgrades of the ratings of the Senior Notes as specified in the indenture occur, the Company will be required to offer to repurchase any or all of the Senior Notes at a repurchase price equal to 101% of the aggregate principal amount of the Senior Notes, plus any accrued and unpaid interest.

The indenture for the Senior Notes also contains covenants that, among other things, limit the ability of the Company and certain of its subsidiaries to: (i) create liens or use assets as security in other transactions; (ii) engage in certain sale/leaseback transactions; and (iii) merge, consolidate or sell, transfer, lease or dispose of substantially all of their assets.

The indenture for the Senior Notes also contain customary events of default, including (i) failure to pay principal or interest on the Senior Notes when due and payable, (ii) failure to comply with covenants or agreements in the indenture or the Senior Notes which failures are not cured or waived as provided in the indenture, (iii) failure to pay indebtedness of the Company, any Subsidiary Guarantor or Significant Subsidiary (each, as defined in the indenture) within any applicable grace period after maturity or acceleration and the total amount of such indebtedness unpaid or accelerated exceeds $50.0 million, (iv) certain events of bankruptcy, insolvency, or reorganization, (v) failure to pay any judgment or decree for an amount in excess of $50.0 million against the Company, any Subsidiary Guarantor or any Significant Subsidiary that is not discharged, waived or stayed as provided in the indenture, (vi) cessation of any Subsidiary Guarantee (as defined in the indenture) to be in full force and effect or denial or disaffirmance by any subsidiary guarantor of its obligations under its subsidiary guarantee, and (vii) a default under the Company's Senior Subordinated Notes. In the case of an event of default, the principal amount of the Senior Notes plus accrued and unpaid interest may be accelerated.

Senior Subordinated Notes

On November 30, 2010, in connection with our acquisitions of Seadrift Coke L.P. and C/G Electrodes LLC, the Company issued Senior Subordinated Notes for an aggregate face amount of $200 million (the "Senior Subordinated Notes"). The Senior Subordinated Notes are non-interest bearing and mature in 2015. Because the Senior Subordinated Notes are non-interest bearing, we were required to record them at their present value (determined using an interest rate of 7%). The difference between the face amount of the Senior Subordinated Notes and their present value is recorded as debt discount. The debt discount is amortized to income using the interest method, over the life of the notes. The loan balance, net of unamortized discount, was $175.7 million as of December 31, 2013 and $184.8 million as of September 30, 2014.

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Interest Expense

9 Months Ended

Sep. 30, 2014

Interest and Debt Expense [Abstract]

Interest Expense

Interest Expense

The following table presents an analysis of interest expense: 

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2013		2014		2013		2014
	(Dollars in thousands)				(Dollars in thousands)
Interest incurred on debt	$	5,372	$	5,448	$	16,255	$	16,115
Amortization of discount on Senior Subordinated Notes	2,897		3,100		8,546		9,145
Amortization of debt issuance costs	729		521		1,872		1,916
Supply Chain Financing mark-up	100		—		380		47
Total interest expense	$	9,098	$	9,069	$	27,053	$	27,223

Interest Rates

The Revolving Facility had an effective interest rate of 2.42% and 2.16% as of December 31, 2013 and September 30, 2014, respectively. The Senior Subordinated Notes have an implied interest rate of 7.00%. The Senior Notes have a fixed interest rate of 6.375%.

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Supplemental Guarantor Infromation Supplemental Guarantor Information (Balance Sheet) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Jun. 30, 2013	Dec. 31, 2012
ASSETS
Cash and cash equivalents	$ 10,878	$ 11,888		$ 11,470	$ 17,317
Accounts receivable - affiliates	0	0
Accounts receivable - trade	163,971	199,566
Inventories	418,477	490,414
Prepaid expenses and other current assets	87,988	73,790
Total current assets	681,314	775,658
Investment in affiliates	0	0
Net property, plant and equipment	665,555	820,985
Deferred income taxes	13,614	10,334
Goodwill	495,944	496,810	495,944
Notes receivable - affiliate	0	0
Other assets	105,018	114,061
Total assets	1,961,445	2,217,848
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - affiliate	0	0
Accounts payable - trade	98,722	115,212
Short-term debt	1,144	1,161
Accrued income and other taxes	26,073	30,687
Restructuring and Related Liability	12,747	18,421
Supply chain financing liability	0	9,455
Other accrued liabilities	44,211	40,939
Total current liabilities	182,897	215,875
Long-term debt - affiliate	0	0
Long-term debt - third party	539,509	541,593
Other long-term obligations	89,984	97,947
Deferred income taxes	40,676	41,684
Total stockholders' equity	1,108,379	1,320,749
Total liabilities and stockholders' equity	1,961,445	2,217,848
Parent Company [Member]
ASSETS
Cash and cash equivalents	0	0		0	0
Accounts receivable - affiliates	39,243	42,410
Accounts receivable - trade	0	0
Inventories	0	0
Prepaid expenses and other current assets	0	0
Total current assets	39,243	42,410
Investment in affiliates	1,513,267	1,709,914
Net property, plant and equipment	0	0
Deferred income taxes	0	0
Goodwill	0	0
Notes receivable - affiliate	44,020	51,090
Other assets	4,237	4,752
Total assets	1,600,767	1,808,166
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - affiliate	0	0
Accounts payable - trade	0	0
Short-term debt	0	0
Accrued income and other taxes	343	2,678
Restructuring and Related Liability	0	0
Supply chain financing liability		0
Other accrued liabilities	7,225	2,444
Total current liabilities	7,568	5,122
Long-term debt - affiliate	0	0
Long-term debt - third party	484,820	475,675
Other long-term obligations	0	0
Deferred income taxes	0	6,620
Total stockholders' equity	1,108,379	1,320,749
Total liabilities and stockholders' equity	1,600,767	1,808,166
Guarantor Subsidiaries [Member]
ASSETS
Cash and cash equivalents	1,362	4,752		4,184	4,425
Accounts receivable - affiliates	41,619	28,551
Accounts receivable - trade	39,252	48,998
Inventories	161,791	174,935
Prepaid expenses and other current assets	18,156	22,555
Total current assets	262,180	279,791
Investment in affiliates	772,957	828,012
Net property, plant and equipment	433,350	540,273
Deferred income taxes	0	0
Goodwill	292,749	293,162
Notes receivable - affiliate	7,413	7,413
Other assets	51,473	53,447
Total assets	1,820,122	2,002,098
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - affiliate	74,859	58,206
Accounts payable - trade	36,316	41,971
Short-term debt	1,130	165
Accrued income and other taxes	3,659	4,736
Restructuring and Related Liability	9,239	1,890
Supply chain financing liability		0
Other accrued liabilities	11,360	12,404
Total current liabilities	136,563	119,372
Long-term debt - affiliate	44,020	51,090
Long-term debt - third party	53,427	50,525
Other long-term obligations	59,604	66,590
Deferred income taxes	13,241	4,607
Total stockholders' equity	1,513,267	1,709,914
Total liabilities and stockholders' equity	1,820,122	2,002,098
Non-Guarantor Subsidiaries [Member]
ASSETS
Cash and cash equivalents	9,516	7,136		7,286	12,892
Accounts receivable - affiliates	35,617	15,824
Accounts receivable - trade	124,719	150,568
Inventories	256,686	315,479
Prepaid expenses and other current assets	69,832	51,235
Total current assets	496,370	540,242
Investment in affiliates	0	0
Net property, plant and equipment	232,205	280,712
Deferred income taxes	13,614	10,334
Goodwill	203,195	203,648
Notes receivable - affiliate	0	0
Other assets	49,308	55,862
Total assets	994,692	1,090,798
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - affiliate	41,620	28,579
Accounts payable - trade	62,406	73,241
Short-term debt	14	996
Accrued income and other taxes	22,071	23,273
Restructuring and Related Liability	3,508	16,531
Supply chain financing liability		9,455
Other accrued liabilities	25,626	26,091
Total current liabilities	155,245	178,166
Long-term debt - affiliate	7,413	7,413
Long-term debt - third party	1,262	15,393
Other long-term obligations	30,380	31,357
Deferred income taxes	27,435	30,457
Total stockholders' equity	772,957	828,012
Total liabilities and stockholders' equity	994,692	1,090,798
Consolidating Entries and Eliminations [Member]
ASSETS
Cash and cash equivalents	0	0		0	0
Accounts receivable - affiliates	(116,479)	(86,785)
Accounts receivable - trade	0	0
Inventories	0	0
Prepaid expenses and other current assets	0	0
Total current assets	(116,479)	(86,785)
Investment in affiliates	(2,286,224)	(2,537,926)
Net property, plant and equipment	0	0
Deferred income taxes	0	0
Goodwill	0	0
Notes receivable - affiliate	(51,433)	(58,503)
Other assets	0	0
Total assets	(2,454,136)	(2,683,214)
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - affiliate	(116,479)	(86,785)
Accounts payable - trade	0	0
Short-term debt	0	0
Accrued income and other taxes	0	0
Restructuring and Related Liability	0	0
Supply chain financing liability		0
Other accrued liabilities	0	0
Total current liabilities	(116,479)	(86,785)
Long-term debt - affiliate	(51,433)	(58,503)
Long-term debt - third party	0	0
Other long-term obligations	0	0
Deferred income taxes	0	0
Total stockholders' equity	(2,286,224)	(2,537,926)
Total liabilities and stockholders' equity	$ (2,454,136)	$ (2,683,214)

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Subsequent Events (Details) (USD $)	0 Months Ended	3 Months Ended		9 Months Ended
	Apr. 23, 2014	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Subsequent Event [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 470,000,000
Amortization of Financing Costs and Discounts		$ 521,000	$ 729,000	$ 1,916,000	$ 1,872,000
Percentage Of One Month Interest rate Plus London Interbank Offering Rate	1.00%
Debt Instrument Interest Coverage Ratio	2.50
Debt Instrument Leverage Ratio	3.00
Maximum [Member]
Subsequent Event [Line Items]
Percentage Of Margin Plus London Interbank Offered Rate	2.00%
Percentage Of Margin Plus Alternate Base Rate	1.00%
Line of Credit Facility, Commitment Fee Percentage	0.35%
Minimum [Member]
Subsequent Event [Line Items]
Percentage Of Margin Plus London Interbank Offered Rate	1.25%
Percentage Of Margin Plus Alternate Base Rate	0.25%
Line of Credit Facility, Commitment Fee Percentage	0.20%

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Supplemental Guarantor Information (Income and Comprehensive Income) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates	$ 0	$ 0	$ 0	$ 0
Sales - third party	260,458	303,084	825,433	858,172
Net sales	260,458	303,084	825,433	858,172
Cost of sales	242,814	266,440	764,142	724,057
Gross profit	17,644	36,644	61,291	134,115
Research and development	2,871	2,994	8,544	8,874
Selling and administrative expenses	26,980	27,626	89,024	87,500
Impaired Long-Lived Assets Held and Used, Facts and Circumstances Leading to Impairment	0		121570
Restructuring Charges	10,844	14,593	11,761	14,593
Operating income	(23,051)	(8,569)	(169,608)	23,148
Equity in earnings of, and gain recorded on acquisition of, non-consolidated affiliate	0	0	0	0
Other (income) expense, net	1,149	(772)	1,902	753
Interest expense - affiliate	0	0	0	0
Interest expense - third party	9,069	9,098	27,223	27,053
Interest income - affiliate	0	0	0	0
Interest income	(144)	(49)	(257)	(162)
Income before provision for income taxes	(33,125)	(16,846)	(198,476)	(4,496)
(Benefit) provision for income taxes	1,818	(9,216)	3,417	(5,458)
Net income	(34,943)	(7,630)	(201,893)	962
Statements of Comprehensive Income
Net income	(34,943)	(7,630)	(201,893)	962
Foreign currency translation	(22,579)	5,230	(20,432)	(11,902)
Commodities and foreign currency derivatives	(668)	476	(504)	683
Other comprehensive income (loss), net of tax:	(23,247)	5,706	(20,936)	(11,219)
Comprehensive income	(58,190)	(1,924)	(222,829)	(10,257)
Parent Company [Member]
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates	0	0	0	0
Sales - third party	0	0	0	0
Net sales	0	0	0	0
Cost of sales	0	0	0	0
Gross profit	0	0	0	0
Research and development	0	0	0	0
Selling and administrative expenses	0	0	0	0
Impaired Long-Lived Assets Held and Used, Facts and Circumstances Leading to Impairment	0		0
Restructuring Charges	0		0
Operating income	0	0	0	0
Equity in earnings of, and gain recorded on acquisition of, non-consolidated affiliate	29,911	2,796	186,929	(15,260)
Other (income) expense, net	0	0	0	0
Interest expense - affiliate	0	0	0	0
Interest expense - third party	8,055	7,849	24,010	23,393
Interest income - affiliate	(193)	(272)	(629)	(982)
Interest income	0	0	0	0
Income before provision for income taxes	(7,862)	(7,577)	(23,381)	(22,411)
(Benefit) provision for income taxes	(2,830)	(2,743)	(8,417)	(8,113)
Net income	(34,943)	(7,630)	(201,893)	962
Statements of Comprehensive Income
Net income	(34,943)	(7,630)	(201,893)	962
Other comprehensive income (loss), net of tax:	(23,247)	5,706	(20,936)	(11,219)
Comprehensive income	(58,190)	(1,924)	(222,829)	(10,257)
Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates	68,424	57,727	192,740	155,673
Sales - third party	93,457	122,360	315,387	348,148
Net sales	161,881	180,087	508,127	503,821
Cost of sales	157,726	155,803	472,202	431,146
Gross profit	4,155	24,284	35,925	72,675
Research and development	2,871	2,994	8,544	8,874
Selling and administrative expenses	11,347	9,751	35,479	32,833
Impaired Long-Lived Assets Held and Used, Facts and Circumstances Leading to Impairment	0		121570
Restructuring Charges	(1,592)		(1,540)
Operating income	(8,471)	9,115	(128,128)	28,544
Equity in earnings of, and gain recorded on acquisition of, non-consolidated affiliate	16,590	10,614	36,650	4,203
Other (income) expense, net	461	(1,476)	1,281	(762)
Interest expense - affiliate	193	279	629	1,112
Interest expense - third party	883	779	2,529	2,374
Interest income - affiliate	0	(189)	0	(565)
Interest income	0	0	0	0
Income before provision for income taxes	(10,008)	9,722	(132,567)	26,385
(Benefit) provision for income taxes	3,313	1,904	17,712	6,922
Net income	(29,911)	(2,796)	(186,929)	15,260
Statements of Comprehensive Income
Net income	(29,911)	(2,796)	(186,929)	15,260
Other comprehensive income (loss), net of tax:	(23,247)	5,706	(20,936)	(11,219)
Comprehensive income	(53,158)	2,910	(207,865)	4,041
Non-Guarantor Subsidiaries [Member]
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates	38,171	39,196	106,742	111,835
Sales - third party	167,001	180,724	510,046	510,024
Net sales	205,172	219,920	616,788	621,859
Cost of sales	191,683	207,560	591,422	560,419
Gross profit	13,489	12,360	25,366	61,440
Research and development	0	0	0	0
Selling and administrative expenses	15,633	17,875	53,545	54,667
Impaired Long-Lived Assets Held and Used, Facts and Circumstances Leading to Impairment	0		0
Restructuring Charges	12,436		13,301
Operating income	(14,580)	(17,684)	(41,480)	(5,396)
Equity in earnings of, and gain recorded on acquisition of, non-consolidated affiliate	0	0	0	0
Other (income) expense, net	688	704	621	1,515
Interest expense - affiliate	0	190	0	566
Interest expense - third party	131	470	684	1,286
Interest income - affiliate	0	(8)	0	(131)
Interest income	(144)	(49)	(257)	(162)
Income before provision for income taxes	(15,255)	(18,991)	(42,528)	(8,470)
(Benefit) provision for income taxes	1,335	(8,377)	(5,878)	(4,267)
Net income	(16,590)	(10,614)	(36,650)	(4,203)
Statements of Comprehensive Income
Net income	(16,590)	(10,614)	(36,650)	(4,203)
Other comprehensive income (loss), net of tax:	(21,996)	3,892	(19,474)	(12,216)
Comprehensive income	(38,586)	(6,722)	(56,124)	(16,419)
Consolidating Entries and Eliminations [Member]
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates	(106,595)	(96,923)	(299,482)	(267,508)
Sales - third party	0	0	0	0
Net sales	(106,595)	(96,923)	(299,482)	(267,508)
Cost of sales	(106,595)	(96,923)	(299,482)	(267,508)
Gross profit	0	0	0	0
Research and development	0	0	0	0
Selling and administrative expenses	0	0	0	0
Impaired Long-Lived Assets Held and Used, Facts and Circumstances Leading to Impairment	0		0
Restructuring Charges	0		0
Operating income	0	0	0	0
Equity in earnings of, and gain recorded on acquisition of, non-consolidated affiliate	(46,501)	(13,410)	(223,579)	11,057
Other (income) expense, net	0	0	0	0
Interest expense - affiliate	(193)	(469)	(629)	(1,678)
Interest expense - third party	0	0	0	0
Interest income - affiliate	193	469	629	1,678
Interest income	0	0	0	0
Income before provision for income taxes	0	0	0	0
(Benefit) provision for income taxes	0	0	0	0
Net income	46,501	13,410	223,579	(11,057)
Statements of Comprehensive Income
Net income	46,501	13,410	223,579	(11,057)
Other comprehensive income (loss), net of tax:	45,243	(9,598)	40,410	23,435
Comprehensive income	$ 91,744	$ 3,812	$ 263,989	$ 12,378

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Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]

	Asset Derivatives			Liability Derivatives
	Location	Fair  Value		Location	Fair  Value
As of December 31, 2013	(Dollars in Thousands)
Derivatives designated as cash flow hedges:
Foreign currency derivatives	Other receivables	$	772	Other payables	$	1,185
Commodity derivative contracts	Other current assets	834		Other current liabilities	—
Total fair value		$	1,606		$	1,185
As of September 30, 2014
Derivatives designated as cash flow hedges:
Foreign currency derivatives	Other receivables	$	1,130	Other payables	$	274
Commodity derivative contracts	Other current assets	—		Other current liabilities	532
Total fair value		$	1,130		$	806

Schedule Of Fair Value Of Derivatives Designated As Fair Value Hedges

	Asset Derivatives			Liability Derivatives
	Location	Fair  Value		Location	Fair  Value
As of December 31, 2013	(Dollars in Thousands)
Derivatives not designated as hedges:
Foreign currency derivatives	Other receivables	$	328	Other payables	$	24
Total fair value		$	328		$	24
As of September 30, 2014
Derivatives not designated as hedges:
Foreign currency derivatives	Other receivables	$	240	Other payables	$	336
Total fair value		$	240		$	336

Schedule Of Realized (Gains) Losses On Derivatives Recognized In Statement Of Income

		Amount of (Gain)/Loss Recognized (Effective Portion)
Nine Months Ended September 30,	Location of (Gain)/Loss Reclassified from Other Comprehensive Income (Effective Portion)	2013		2014
		(Dollars in Thousands)
Derivatives designated as cash flow hedges:
Foreign currency derivatives, excluding tax   of ($4) and ($14), respectively	Cost of goods sold/Other expense / (income) / Revenue	$	38	$	137
Commodity forward derivatives, excluding   tax of ($214) and ($45), respectively	Cost of goods sold / Revenue	$	591	$	124

		Amount of (Gain)/Loss Recognized
Nine Months Ended September 30,	Location of (Gain)/Loss Recognized in the Consolidated Statement of Operations	2013			2014
		(Dollars in thousands)
Derivatives not designated as hedges:
Foreign currency derivatives	Cost of goods sold/Other expense (income)	$	(912	)	$	383

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Inventories (Schedule Of Inventories) (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 150,340	$ 184,420
Work in process	191,340	245,160
Finished goods	97,063	78,446
Inventories, gross	438,743	508,026
Reserves	(20,266)	(17,612)
Inventories, net	$ 418,477	$ 490,414

XML

Supplemental Guarantor Information

9 Months Ended

Sep. 30, 2014

Consolidating Financials [Abstract]

Supplemental Guarantor Information

(15) Guarantor Information

On November 20, 2012, GrafTech International Ltd. (the “Parent”) issued $300 million aggregate principal amount of Senior Notes. The Senior Notes mature on November 15, 2020 and bear interest at a rate of 6.375% per year, payable semi-annually in arrears on May 15 and November 15 of each year. The Senior Notes have been guaranteed on a senior basis by the following wholly-owned direct and indirect subsidiaries of the Parent: GrafTech Finance Inc., GrafTech Holdings Inc., GrafTech USA LLC, Seadrift Coke LLP, Fiber Materials, Inc., Intermat, GrafTech Global Enterprises Inc., GrafTech International Holdings Inc., GrafTech DE LLC, GrafTech Seadrift Holding Corp, GrafTech International Trading Inc., GrafTech Technology LLC, GrafTech NY Inc., and Graphite Electrode Network LLC.

    The guarantors of the Senior Notes, solely in their respective capacities as such, are collectively called the “Guarantors.” Our other subsidiaries, which are not guarantors of the Senior Notes, are called the “Non-Guarantors.”

    All of the guarantees are unsecured. All of the guarantees are full, unconditional (subject to limited exceptions described below) and joint and several. Each of the Guarantors are 100% owned, directly or indirectly, by the Parent. All of the guarantees of the Senior Notes continue until the Senior Notes have been paid in full, and payment under such guarantees could be required immediately upon the occurrence of an event of default under the Senior Notes. If a Guarantor makes a payment under its guarantee of the Senior Notes, it would have the right under certain circumstances to seek contribution from the other Guarantors.

The Guarantors will be released from the guarantees upon the occurrence of certain events, including the following:  the unconditional release or discharge of any guarantee or indebtedness that resulted in the creation of the guarantee of the Senior Notes by such Guarantor; the sale or other disposition, including by way of merger or consolidation or the sale of its capital stock, following which such Guarantor is no longer a subsidiary of the Parent; or the Parent's exercise of its legal defeasance option or its covenant defeasance option as described in the indenture applicable to the Senior Notes.  If any Guarantor is released, no holder of the Senior Notes will have a claim as a creditor against such Guarantor. The indebtedness and other liabilities, including trade payables and preferred stock, if any, of each Guarantor are effectively senior to the claim of any holders of the Senior Notes.

Investments in subsidiaries are recorded on the equity basis.

    The following tables set forth condensed consolidating balance sheets as of December 31, 2013 and September 30, 2014 and condensed consolidating statements of operations and comprehensive income for the three and nine months ended September 30, 2013 and 2014 and condensed consolidating statements of cash flows for the nine months endedSeptember 30, 2013 and 2014 of the Parent Guarantors and the Non-Guarantors.

Amounts presented in comprehensive income for the three and nine months ended September 30, 2013 have been revised.  Previously, the Company did not present comprehensive income of subsidiaries in the guarantor column. This amount has been revised to present $2.9 million in comprehensive loss for the guarantors during the three months ended September 30, 2013 and $4.0 million in comprehensive income during the nine months ended September 30, 2013.  

CONDENSED CONSOLIDATING BALANCE SHEETS
As of December 31, 2013
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	4,752	$	7,136	$	—		$	11,888
Accounts receivable - affiliates	42,410		28,551		15,824		(86,785		)	—
Accounts receivable - trade	—		48,998		150,568		—			199,566
Inventories	—		174,935		315,479		—			490,414
Prepaid and other current assets	—		22,555		51,235		—			73,790
Total current assets	42,410		279,791		540,242		(86,785		)	775,658
Investment in affiliates	1,709,914		828,012		—		(2,537,926		)	—
Property, plant and equipment	—		540,273		280,712		—			820,985
Deferred income taxes	—		—		10,334		—			10,334
Goodwill	—		293,162		203,648		—			496,810
Notes receivable - affiliate	51,090		7,413		—		(58,503		)	—
Other assets	4,752		53,447		55,862		—			114,061
Total assets	$	1,808,166	$	2,002,098	$	1,090,798	$	(2,683,214	)	$	2,217,848
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable - affiliate	$	—	$	58,206	$	28,579	$	(86,785	)	$	—
Accounts payable - trade	—		41,971		73,241		—			115,212
Short-term debt	—		165		996		—			1,161
Accrued income and other taxes	2,678		4,736		23,273		—			30,687
Rationalizations	—		1,890		16,531		—			18,421
Supply chain financing liability	—		—		9,455		—			9,455
Other accrued liabilities	2,444		12,404		26,091		—			40,939
Total current liabilities	5,122		119,372		178,166		(86,785		)	215,875
Long-term debt - affiliate	—		51,090		7,413		(58,503		)	—
Long-term debt - third party	475,675		50,525		15,393		—			541,593
Other long-term obligations	—		66,590		31,357		—			97,947
Deferred income taxes	6,620		4,607		30,457		—			41,684
Stockholders' equity	1,320,749		1,709,914		828,012		(2,537,926		)	1,320,749
Total liabilities and stockholders' equity	$	1,808,166	$	2,002,098	$	1,090,798	$	(2,683,214	)	$	2,217,848

CONDENSED CONSOLIDATING BALANCE SHEETS
As of September 30, 2014
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current assets:
Cash and cash equivalents	$	—	$	1,362	$	9,516	$	—		$	10,878
Accounts receivable - affiliates	39,243		41,619		35,617		(116,479		)	—
Accounts receivable - trade	—		39,252		124,719		—			163,971
Inventories	—		161,791		256,686		—			418,477
Prepaid and other current assets	—		18,156		69,832		—			87,988
Total current assets	39,243		262,180		496,370		(116,479		)	681,314
Investment in affiliates	1,513,267		772,957		—		(2,286,224		)	—
Property, plant and equipment	—		433,350		232,205		—			665,555
Deferred income taxes	—		—		13,614		—			13,614
Goodwill	—		292,749		203,195		—			495,944
Notes receivable - affiliate	44,020		7,413		—		(51,433		)	—
Other assets	4,237		51,473		49,308		—			105,018
Total assets	$	1,600,767	$	1,820,122	$	994,692	$	(2,454,136	)	$	1,961,445
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable - affiliate	$	—	$	74,859	$	41,620	$	(116,479	)	$	—
Accounts payable - trade	—		36,316		62,406		—			98,722
Short-term debt	—		1,130		14		—			1,144
Accrued income and other taxes	343		3,659		22,071		—			26,073
Rationalizations	—		9,239		3,508		—			12,747
Other accrued liabilities	7,225		11,360		25,626		—			44,211
Total current liabilities	7,568		136,563		155,245		(116,479		)	182,897
Long-term debt - affiliate	—		44,020		7,413		(51,433		)	—
Long-term debt - third party	484,820		53,427		1,262		—			539,509
Other long-term obligations	—		59,604		30,380		—			89,984
Deferred income taxes	—		13,241		27,435		—			40,676
Stockholders' equity	1,108,379		1,513,267		772,957		(2,286,224		)	1,108,379
Total liabilities and stockholders' equity	$	1,600,767	$	1,820,122	$	994,692	$	(2,454,136	)	$	1,961,445

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the three months ended September 30, 2013
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	57,727		$	39,196		$	(96,923	)		$	—
Sales - third party	—			122,360			180,724			—				303,084
Net sales	—			180,087			219,920			(96,923		)		303,084
Cost of sales	—			155,803			207,560			(96,923		)		266,440
Gross profit	—			24,284			12,360			—				36,644
Research and development	—			2,994			—			—				2,994
Selling and administrative expenses	—			9,751			17,875			—				27,626
Rationalizations	—			2,424			12,169			—				14,593
Operating income	—			9,115			(17,684		)	—				(8,569		)
Other expense, net	—			(1,476		)	704			—				(772		)
Interest expense - affiliate	—			279			190			(469		)		—
Interest expense - third party	7,849			779			470			—				9,098
Interest income - affiliate	(272		)	(189		)	(8		)	469				—
Interest income - third party	—			—			(49		)	—				(49		)
(Loss) income before income taxes	(7,577		)	9,722			(18,991		)	—			`	(16,846		)
(Benefit) provision for income taxes	(2,743		)	1,904			(8,377		)	—				(9,216		)
Equity in earnings of subsidiary	(2,796		)	(10,614		)	—			13,410				—
Net income (loss)	$	(7,630	)	$	(2,796	)	$	(10,614	)	$	13,410			$	(7,630	)
Statements of Comprehensive Income
Net income (loss)	$	(7,630	)	$	(2,796	)	$	(10,614	)	$	13,410			$	(7,630	)
Other comprehensive (loss) income	5,706			5,706			3,892			(9,598		)		5,706
Comprehensive (loss) income	$	(1,924	)	$	2,910		$	(6,722	)	$	3,812			$	(1,924	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the three months ended September 30, 2014
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	68,424		$	38,171		$	(106,595	)		$	—
Sales - third party	—			93,457			167,001			—				260,458
Net sales	—			161,881			205,172			(106,595		)		260,458
Cost of sales	—			157,726			191,683			(106,595		)		242,814
Gross profit	—			4,155			13,489			—				17,644
Research and development	—			2,871			—			—				2,871
Selling and administrative expenses	—			11,347			15,633			—				26,980
Impairments	—			—			—			—				—
Rationalizations	—			(1,592		)	12,436			—				10,844
Operating loss	—			(8,471		)	(14,580		)	—				(23,051		)
Other (income) expense, net	—			461			688			—				1,149
Interest expense - affiliate	—			193			—			(193		)		—
Interest expense - third party	8,055			883			131			—				9,069
Interest income - affiliate	(193		)	—			—			193				—
Interest income - third party	—			—			(144		)	—				(144		)
Loss before income taxes	(7,862		)	(10,008		)	(15,255		)	—			`	(33,125		)
Provision for (benefit from) income taxes	(2,830		)	3,313			1,335			—				1,818
Equity in losses of subsidiary	(29,911		)	(16,590		)	—			46,501				—
Net (loss) income	$	(34,943	)	$	(29,911	)	$	(16,590	)	$	46,501			$	(34,943	)
Statements of Comprehensive Income
Net (loss) income	$	(34,943	)	$	(29,911	)	$	(16,590	)	$	46,501			$	(34,943	)
Other comprehensive income (loss)	(23,247		)	(23,247		)	(21,996		)	45,243				(23,247		)
Comprehensive (loss) income	$	(58,190	)	$	(53,158	)	$	(38,586	)	$	91,744			$	(58,190	)

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the nine months ended September 30, 2013
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	155,673		$	111,835		$	(267,508	)		$	—
Sales - third party	—			348,148			510,024			—				858,172
Net sales	—			503,821			621,859			(267,508		)		858,172
Cost of sales	—			431,146			560,419			(267,508		)		724,057
Gross profit	—			72,675			61,440			—				134,115
Research and development	—			8,874			—			—				8,874
Selling and administrative expenses	—			32,833			54,667			—				87,500
Rationalizations	—			2,424			12,169			—				14,593
Operating income	—			28,544			(5,396		)	—				23,148
Other (income) expense, net	—			(762		)	1,515			—				753
Interest expense - affiliate	—			1,112			566			(1,678		)		—
Interest expense - third party	23,393			2,374			1,286			—				27,053
Interest income - affiliate	(982		)	(565		)	(131		)	1,678				—
Interest income - third party	—			—			(162		)	—				(162		)
Income before income taxes	(22,411		)	26,385			(8,470		)	—			`	(4,496		)
Provision for income taxes	(8,113		)	6,922			(4,267		)	—				(5,458		)
Equity in earnings of subsidiary	15,260			(4,203		)	—			(11,057		)		—
Net income	$	962		$	15,260		$	(4,203	)	$	(11,057	)		$	962
Statements of Comprehensive Income
Net income	$	962		$	15,260		$	(4,203	)	$	(11,057	)		$	962
Other comprehensive (loss) income	(11,219		)	(11,219		)	(12,216		)	23,435				(11,219		)
Comprehensive (loss) income	$	(10,257	)	$	4,041		$	(16,419	)	$	12,378			$	(10,257	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the nine months ended September 30, 2014
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	192,740		$	106,742		$	(299,482	)		$	—
Sales - third party	—			315,387			510,046			—				825,433
Net sales	—			508,127			616,788			(299,482		)		825,433
Cost of sales	—			472,202			591,422			(299,482		)		764,142
Gross profit	—			35,925			25,366			—				61,291
Research and development	—			8,544			—			—				8,544
Selling and administrative expenses	—			35,479			53,545			—				89,024
Impairments	—			121,570			—			—				121,570
Rationalizations	—			(1,540		)	13,301			—				11,761
Operating loss	—			(128,128		)	(41,480		)	—				(169,608		)
Other expense (income), net	—			1,281			621			—				1,902
Interest expense - affiliate	—			629			—			(629		)		—
Interest expense - third party	24,010			2,529			684			—				27,223
Interest income - affiliate	(629		)	—			—			629				—
Interest income - third party	—			—			(257		)	—				(257		)
Loss before income taxes	(23,381		)	(132,567		)	(42,528		)	—			`	(198,476		)
(Benefit from) provision for income taxes	(8,417		)	17,712			(5,878		)	—				3,417
Equity in losses of subsidiary	(186,929		)	(36,650		)	—			223,579				—
Net (loss) income	$	(201,893	)	$	(186,929	)	$	(36,650	)	$	223,579			$	(201,893	)
Statements of Comprehensive Income
Net (loss) income	$	(201,893	)	$	(186,929	)	$	(36,650	)	$	223,579			$	(201,893	)
Other comprehensive income (loss)	(20,936		)	(20,936		)	(19,474		)	40,410				(20,936		)
Comprehensive (loss) income	$	(222,829	)	$	(207,865	)	$	(56,124	)	$	263,989			$	(222,829	)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2013
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash provided by  operating activities:	$	(5,857	)	$	50,244		$	20,791		$	—		$	65,178
Cash flow from investing activities:
(Loans to) repayments from affiliates	7,015			—			—			(7,015		)	—
Capital expenditures	—			(37,081		)	(25,617		)	—			(62,698		)
Proceeds from derivative instruments	—			(22		)	874			—			852
Insurance recoveries	—			280			2,053			—			2,333
Net cash (used in) provided by          investing activities	7,015			(36,823		)	(22,690		)	(7,015		)	(59,513		)
Cash flow from financing activities:
Loans from (repayments to) affiliates	—			(7,015		)	—			7,015			—
Short-term debt borrowings	—			—			(4,082		)	—			(4,082		)
Revolving Facility borrowings	—			67,000			67,000			—			134,000
Revolving Facility reductions	—			(73,500		)	(45,000		)	—			(118,500		)
Principal payments on long term debt	—			(131		)	(58		)	—			(189		)
Supply chain financing	—			—			(14,422		)	—			(14,422		)
Proceeds from exercise of stock options	175			—			—			—			175
Purchase of treasury shares	(844		)	—			—			—			(844		)
Other	(489		)	(16		)	(6,701		)	—			(7,206		)
Net cash used in          financing activities	(1,158		)	(13,662		)	(3,263		)	7,015			(11,068		)
Net (decrease) increase in cash    and cash equivalents	—			(241		)	(5,162		)	—			(5,403		)
Effect of exchange rate changes    on cash and cash equivalents	—			—			(444		)	—			(444		)
Cash and cash equivalents at    beginning of period	—			4,425			12,892			—			17,317
Cash and cash equivalents    at end of period	$	—		$	4,184		$	7,286		$	—		$	11,470

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the nine months ended September 30, 2014
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash (used in) provided by operating activities:	$	(10,274	)	$	50,298		$	42,865		$	—		$	82,889
Cash flow from investing activities:
Repayments from affiliates	7,070			—			—			(7,070		)	—
Capital expenditures	—			(49,756		)	(19,558		)	—			(69,314		)
Payments for (proceeds from) derivatives	—			(51		)	(522		)	—			(573		)
Proceeds from sale of assets	—			1,706			2,373			—			4,079
Insurance recoveries	—			—			2,834			—			2,834
Net cash provided by (used in)          investing activities	7,070			(48,101		)	(14,873		)	(7,070		)	(62,974		)
Cash flow from financing activities:
Repayments to affiliates	—			(7,070		)	—			7,070			—
Short-term debt borrowings	—			965			(982		)	—			(17		)
Revolving Facility borrowings	—			151,000			78,000			—			229,000
Revolving Facility reductions	—			(148,000		)	(92,000		)	—			(240,000		)
Principal payments on long term debt	—			(98		)	(60		)	—			(158		)
Supply chain financing	—			—			(9,455		)	—			(9,455		)
Proceeds from exercise of stock options	2,813			—			—			—			2,813
Purchase of treasury shares	(620		)	—			—			—			(620		)
Revolver facility refinancing	—			(2,384		)	(357		)	—			(2,741		)
Other	1,011			—			—			—			1,011
Net cash provided by (used in)          financing activities	3,204			(5,587		)	(24,854		)	7,070			(20,167		)
Net increase in cash    and cash equivalents	—			(3,390		)	3,138			—			(252		)
Effect of exchange rate changes    on cash and cash equivalents	—			—			(758		)	—			(758		)
Cash and cash equivalents at    beginning of period	—			4,752			7,136			—			11,888
Cash and cash equivalents    at end of period	$	—		$	1,362		$	9,516		$	—		$	10,878

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Segment Reporting (Tables)

9 Months Ended

Sep. 30, 2014

Segment Reporting Information, Revenue for Reportable Segment [Abstract]

Schedule Of Financial Information Concerning Reportable Segments

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
	(Dollars in thousands)						(Dollars in thousands)
Net sales to external customers:
Industrial Materials	$	233,277		$	208,573		$	673,394		$	634,004
Engineered Solutions	69,807			51,885			184,778			191,429
Total net sales	$	303,084		$	260,458		$	858,172		$	825,433
Segment operating (loss) income:
Industrial Materials	$	(12,945	)	$	(7,219	)	$	10,663		$	(28,009	)
Engineered Solutions	4,376			(15,832		)	12,485			(141,599		)
Total segment operating (loss) income	$	(8,569	)	$	(23,051	)	$	23,148		$	(169,608	)
Reconciliation of segment operating (loss) income to     loss before provision for income taxes
Other expense (income), net	$	(772	)	$	1,149		$	753		$	1,902
Interest expense	9,098			9,069			27,053			27,223
Interest income	(49		)	(144		)	(162		)	(257		)
Loss before provision for income taxes	$	(16,846	)	$	(33,125	)	$	(4,496	)	$	(198,476	)

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Long-Term Debt And Liquidity (Narrative) (Details) (USD $)	0 Months Ended	9 Months Ended			0 Months Ended							0 Months Ended	9 Months Ended
	Apr. 23, 2014	Sep. 30, 2014	Dec. 31, 2013	Sep. 30, 2013	Apr. 23, 2014 Minimum [Member]	Apr. 23, 2014 Maximum [Member]	Sep. 30, 2014 Senior Notes [Member]	Dec. 31, 2013 Senior Notes [Member]	Nov. 20, 2012 Senior Notes [Member]	Sep. 30, 2014 Senior Notes [Member] Minimum [Member]	Nov. 20, 2012 Senior Notes [Member] Maximum [Member]	Nov. 30, 2010 Senior Subordinated Notes [Member]	Sep. 30, 2014 Senior Subordinated Notes [Member]	Dec. 31, 2013 Senior Subordinated Notes [Member]	Sep. 30, 2013 Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Long-term Debt, Fair Value		$ 527,500,000	$ 549,800,000
Long-term Debt		539,509,000	541,593,000				300,000,000	300,000,000					184,820,000	175,675,000
Line of Credit Facility, Maximum Borrowing Capacity	470,000,000
Repurchase Percentage Price Of Aggregate Principal Due To Change In Control									101.00%
Interest rate description		LIBOR plus a margin ranging from 1.5% to 2.25% (depending on our total net leverage ratio and/or senior unsecured rating) or, in the case of dollar denominated loans, the alternate base rate plus a margin ranging from 0.50% to 1.25% (depending upon such ratio or rating). The alternate base rate is the highest of (i) the prime rate announced by JPMorgan Chase Bank, N.A., (ii) the federal fund effective rate plus one-half of 1.0% and (iii) the London interbank offering rate (as adjusted) for a one-month period plus 1.0%. GrafTech Finance, Luxembourg Holdco and Swissco pay a per annum fee ranging from 0.25% to 0.40% (depending on such ratio or rating) on the undrawn portion of the commitments under the Revolving Facility.
LIBOR plus margin percentage					1.25%	2.00%
Alternate base rate plus margin percentage					0.25%	1.00%
Addition to federal effective fund rate to determine base rate				0.50%
Percentage of one-month interest rate plus London interbank offering rate	1.00%
Per annum fee by GrafTech Finance and Swissco					0.20%	0.35%
Financial covenants, minimum interest coverage ratio	2.50
Financial covenants, maximum net senior secured leverage ratio	3.00
Face amount of debt issued in connection with acquisition												200,000,000
Debt instruments maturity date													2015
Senior Subordinated Notes interest rate		7.00%										7.00%
Loan balance, net of unamortized discount													175,700,000		184,800,000
Debt Instrument, Face Amount									300,000,000
Debt Instrument, Interest Rate, Stated Percentage				6.375%					6.375%
Redemption Price Percentage Of Principal Prior To November 15, 2016									100.00%
Aggregate Principal Redemption Percentage Price Prior To November 15, 2015											35.00%
Redemption Price Percentage Of Principal Prior To November 15, 2015									106.375%
Unpaid Indebtness After Maturity Or Acceleration										50,000,000
Unpaid Judgment Or Decree										$ 50,000,000

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Stock-Based Compensation (Schedule Of Stock Option Activity Under The Plans) (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested as of September 30, 2014	1,570,926
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding unvested as of January 1, 2014	1,916,718
Number of Shares, Granted	145,034
Number of Shares, Forfeited/canceled/expired	(174,093)
Number of Shares, Exercised	(316,733)
Outstanding as of January 1, 2014	$ 12.47
Weighted-Average Exercise Price, Granted	$ 11.56
Weighted-Average Exercise Price, Forfeited/canceled/expired	$ 8.88
Weighted-Average Exercise Price, Exercised	$ 11.64
Outstanding as of September 30, 2014	$ 13.20

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Statements Of Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Commodities and foreign currency derivatives, net of tax of	$ 0	$ 0

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Earnings Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share

Earnings per Share

The following table shows the information used in the calculation of our share counts for basic and diluted earnings per share:

	For the Three Months Ended		For the Nine Months Ended
	September 30,		September 30,
	2013	2014	2013	2014
Weighted average common shares outstanding     for basic calculation	135,134,144	136,374,914	134,948,507	136,006,573
Add: Effect of stock options and restricted stock	—	—	173,107	—
Weighted average common shares outstanding     for diluted calculation	135,134,144	136,374,914	135,121,614	136,006,573

Basic earnings per common share are calculated by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted earnings per share are calculated by dividing net income (loss) by the sum of the weighted average number of common shares outstanding plus the additional common shares that would have been outstanding if potentially dilutive securities had been issued.

The weighted average common shares outstanding for the diluted earnings per share calculation excludes consideration of stock options covering 1,529,213 and 1,541,048 shares in the three months ended September 30, 2013 and 2014, respectively, and 1,529,213 and 1,193,851 shares in the nine months ended September 30, 2013 and 2014 respectively, as these shares are anti-dilutive.

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Derivative Instruments (Schedule Of Fair Value Of Derivatives Designated As Cash Flow Hedges) (Details) (USD $) In Thousands, unless otherwise specified											3 Months Ended		9 Months Ended		3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014 Cash Flow Hedging [Member] Foreign Currency Derivatives [Member] Other Receivables [Member]	Dec. 31, 2013 Cash Flow Hedging [Member] Foreign Currency Derivatives [Member] Other Receivables [Member]	Sep. 30, 2014 Cash Flow Hedging [Member] Foreign Currency Derivatives [Member] Other Payables [Member]	Dec. 31, 2013 Cash Flow Hedging [Member] Foreign Currency Derivatives [Member] Other Payables [Member]	Sep. 30, 2014 Cash Flow Hedging [Member] Commodity Derivative Contracts [Member] Other Current Assets [Member]	Dec. 31, 2013 Cash Flow Hedging [Member] Commodity Derivative Contracts [Member] Other Current Assets [Member]	Sep. 30, 2014 Cash Flow Hedging [Member] Commodity Derivative Contracts [Member] Other Current Liabilities [Member]	Dec. 31, 2013 Cash Flow Hedging [Member] Commodity Derivative Contracts [Member] Other Current Liabilities [Member]	Sep. 30, 2014 Designated as Hedging Instrument [Member] Cost Of Good Sold Other Expense Income Revenue [Member] Cash Flow Hedging [Member] Foreign Currency Derivatives [Member]	Sep. 30, 2013 Designated as Hedging Instrument [Member] Cost Of Good Sold Other Expense Income Revenue [Member] Cash Flow Hedging [Member] Foreign Currency Derivatives [Member]	Sep. 30, 2014 Designated as Hedging Instrument [Member] Cost Of Good Sold Other Expense Income Revenue [Member] Cash Flow Hedging [Member] Foreign Currency Derivatives [Member]	Sep. 30, 2013 Designated as Hedging Instrument [Member] Cost Of Good Sold Other Expense Income Revenue [Member] Cash Flow Hedging [Member] Foreign Currency Derivatives [Member]	Sep. 30, 2014 Designated as Hedging Instrument [Member] Cost of Sales [Member] Cash Flow Hedging [Member] Commodity Forward Derivatives [Member]	Sep. 30, 2013 Designated as Hedging Instrument [Member] Cost of Sales [Member] Cash Flow Hedging [Member] Commodity Forward Derivatives [Member]	Sep. 30, 2014 Designated as Hedging Instrument [Member] Cost of Sales [Member] Cash Flow Hedging [Member] Commodity Forward Derivatives [Member]	Sep. 30, 2013 Designated as Hedging Instrument [Member] Cost of Sales [Member] Cash Flow Hedging [Member] Commodity Forward Derivatives [Member]
Derivative [Line Items]
Derivative Instruments, Gain (Loss) Recognized in Income, Net											$ (191)	$ 228	$ 137	$ 38	$ 98	$ 454	$ 124	$ 591
Derivatives designated as cash flow hedges, Asset Derivatives, Fair Value	1,606	1,130	1,130	772			0	834
Derivatives designated as cash flow hedges, Liability Derivatives, Fair Value	$ 1,185	$ 806			$ 274	$ 1,185			$ 532	$ 0

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Benefit Plans (Tables)

9 Months Ended

Sep. 30, 2014

Pension Costs [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule Of Benefit Plans

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
	(Dollars in thousands)						(Dollars in thousands)
Service cost	$	489		$	473		$	1,467		$	1,419
Interest cost	1,985			2,169			5,955			6,507
Expected return on plan assets	(1,706		)	(1,938		)	(5,118		)	(5,814		)
Amortization of prior service cost	6			1			18			3
Net cost	$	774		$	705		$	2,322		$	2,115

Postretirement Costs [Member]

Defined Benefit Plan Disclosure [Line Items]

Schedule Of Benefit Plans

	For the Three Months Ended						For the Nine Months Ended
	September 30,						September 30,
	2013			2014			2013			2014
	(Dollars in thousands)						(Dollars in thousands)
Service cost	$	28		$	19		$	84		$	57
Interest cost	331			352			993			1,056
Curtailment loss	—			—			—			1,048
Amortization of prior service benefit	(50		)	(47		)	(150		)	(141		)
Net cost	$	309		$	324		$	927		$	2,020

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Rationalizations Rationalization-Roll-forward (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Sep. 30, 2014
2014 Corporate and Research & Development Rationalization
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2013	$ 0
Charges incurred	8,204
Change in estimates	0
Payments and settlements	0
Effect of change in currency exchange rates	0
Balance as of September 30, 2014	8,204
2013 Rationalization Initiatives
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2013	18,421
Charges incurred	693
Change in estimates	254
Payments and settlements	(16,053)
Effect of change in currency exchange rates	(997)
Balance as of September 30, 2014	2,318
2014 Engineered Solutions Rationalization
Restructuring Reserve [Roll Forward]
Balance as of December 31, 2013	0
Charges incurred	2,611
Change in estimates	0
Payments and settlements	(386)
Effect of change in currency exchange rates	0
Balance as of September 30, 2014	$ 2,225

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Derivative Instruments

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

Derivative Instruments

We use derivative instruments as part of our overall foreign currency and commodity risk management strategies to manage the risk of exchange rate movements that would reduce the value of our foreign cash flows and to minimize commodity price volatility. Foreign currency exchange rate movements create a degree of risk by affecting the value of sales made and costs incurred in currencies other than the U.S. dollar.

Certain of our derivative contracts contain provisions that require us to provide collateral. Since the counterparties to these financial instruments are large commercial banks and similar financial institutions, we do not believe that we are exposed to material counterparty credit risk. We do not anticipate nonperformance by any of the counter-parties to our instruments.

Foreign currency derivatives

We enter into foreign currency derivatives from time to time to attempt to manage exposure to changes in currency exchange rates. These foreign currency instruments, which include, but are not limited to, forward exchange contracts and purchased currency options, attempt to hedge global currency exposures such as foreign currency denominated debt, sales, receivables, payables, and purchases. Forward exchange contracts are agreements to exchange different currencies at a specified future date and at a specified rate. There was no ineffectiveness on these contracts designated as hedging instruments during the nine months ended September 30, 2013 and 2014, respectively.

In 2013 and 2014, we entered into foreign forward currency derivatives denominated in the Mexican peso, South African rand, Brazilian real, euro and Japanese yen. These derivatives were entered into to protect the risk that the eventual cash flows resulting from commercial and business transactions may be adversely affected by changes in exchange rates between the U.S. dollar and the Mexican peso, South African rand, Brazilian real, euro and Japanese yen. As of September 30, 2014, we had outstanding Mexican peso, South Afican rand, euro, and Japanese yen currency contracts with an aggregate notional amount of $124.2 million. The foreign currency derivatives outstanding as of September 30, 2014 have several maturity dates ranging from October 2014 to September 2015.

Commodity derivative contracts

We periodically enter into derivative contracts for certain refined oil products and natural gas. These contracts are entered into to protect against the risk that eventual cash flows related to these products may be adversely affected by future changes in prices. There was no ineffectiveness on these contracts during the nine months ended September 30, 2014. As of September 30, 2014, we had outstanding derivative swap contracts for refined oil products with an aggregate notional amount of $11.6 million. These contracts have maturity dates ranging from October 2014 to December 2014.

Net Investment Hedges

We use certain intercompany debt to hedge a portion of our net investment in our foreign operations against currency exposure (net investment hedge). Intercompany debt designated in foreign currency and designated as a non-derivative net investment hedging instrument was $25.2 million and $11.5 million as of December 31, 2013 and September 30, 2014, respectively. Within our currency translation adjustment portion of other comprehensive income, we recorded gains of $0.2 million and $0.7 million in three months ended September 30, 2013 and September 30, 2014, respectively, resulting from these net investment hedges.

The fair value of all derivatives is recorded as assets or liabilities on a gross basis in our Consolidated Balance Sheets. The following tables present the fair values of our derivatives and their respective balance sheet locations as of December 31, 2013 and September 30, 2014:

	Asset Derivatives			Liability Derivatives
	Location	Fair  Value		Location	Fair  Value
As of December 31, 2013	(Dollars in Thousands)
Derivatives designated as cash flow hedges:
Foreign currency derivatives	Other receivables	$	772	Other payables	$	1,185
Commodity derivative contracts	Other current assets	834		Other current liabilities	—
Total fair value		$	1,606		$	1,185
As of September 30, 2014
Derivatives designated as cash flow hedges:
Foreign currency derivatives	Other receivables	$	1,130	Other payables	$	274
Commodity derivative contracts	Other current assets	—		Other current liabilities	532
Total fair value		$	1,130		$	806

	Asset Derivatives			Liability Derivatives
	Location	Fair  Value		Location	Fair  Value
As of December 31, 2013	(Dollars in Thousands)
Derivatives not designated as hedges:
Foreign currency derivatives	Other receivables	$	328	Other payables	$	24
Total fair value		$	328		$	24
As of September 30, 2014
Derivatives not designated as hedges:
Foreign currency derivatives	Other receivables	$	240	Other payables	$	336
Total fair value		$	240		$	336

The location and amount of realized (gains) losses on derivatives are recognized in the Statements of Operations when the hedged item impacts earnings and are as follows for the three and nine months ended September 30, 2013 and 2014:

		Amount of (Gain)/Loss Recognized (Effective Portion)
Three Months Ended September 30,	Location of (Gain)/Loss Reclassified from Other Comprehensive Income (Effective Portion)	2013		2014
		(Dollars in Thousands)
Derivatives designated as cash flow hedges:
Foreign currency derivatives, excluding tax   of ($23) and $19, respectively	Cost of goods sold/Other expense / (income) / Revenue	$	228	$	(191	)
Commodity forward derivatives, excluding   tax of ($164) and ($35), respectively	Cost of goods sold / Revenue	$	454	$	98

		Amount of (Gain)/Loss Recognized
Three Months Ended September 30,	Location of (Gain)/Loss Recognized in the Consolidated Statement of Operations	2013		2014
		(Dollars in thousands)
Derivatives not designated as hedges:
Foreign currency derivatives	Cost of goods sold/Other expense (income)	$	509	$	444

		Amount of (Gain)/Loss Recognized (Effective Portion)
Nine Months Ended September 30,	Location of (Gain)/Loss Reclassified from Other Comprehensive Income (Effective Portion)	2013		2014
		(Dollars in Thousands)
Derivatives designated as cash flow hedges:
Foreign currency derivatives, excluding tax   of ($4) and ($14), respectively	Cost of goods sold/Other expense / (income) / Revenue	$	38	$	137
Commodity forward derivatives, excluding   tax of ($214) and ($45), respectively	Cost of goods sold / Revenue	$	591	$	124

		Amount of (Gain)/Loss Recognized
Nine Months Ended September 30,	Location of (Gain)/Loss Recognized in the Consolidated Statement of Operations	2013			2014
		(Dollars in thousands)
Derivatives not designated as hedges:
Foreign currency derivatives	Cost of goods sold/Other expense (income)	$	(912	)	$	383

Our foreign currency and commodity derivatives are treated as hedges and are required to be measured at fair value on a recurring basis. With respect to the inputs used to determine the fair value, we use observable, quoted rates that are determined by active markets and, therefore, classify the contracts as “Level 2”.