XML 23 R10.htm IDEA: XBRL DOCUMENT v3.4.0.3
Segment Reporting
3 Months Ended
Mar. 31, 2016
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
Segment Reporting
Segment Reporting

We operate two reportable business segments: Industrial Materials and Engineered Solutions. On February 26, 2016, the Company announced plans to realign its business segments (see Note 1A "Organization and Summary of Significant Accounting Policies"). As a result of this realignment, our Refractory product line was moved from the Industrial Materials business segment to the Engineered Solutions business segment. Additionally, Advanced Materials products will now be a part of the business segment where these products are produced. All prior period amounts have been recast to reflect this change. Our business segments now consist of the following:
Industrial Materials. Our Industrial Materials segment manufactures and delivers high quality graphite electrodes and needle coke products. Electrodes are key components of the conductive power systems used to produce steel and other non-ferrous metals. 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 refractory products. 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. 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.
The following tables summarize financial information concerning our reportable segments and all prior periods have been recast to reflect our new segmentation:
 
Predecessor
 
Successor
 
For the Three Months Ended March 31, 2015
 
For the Three Months Ended March 31, 2016
 
(Dollars in thousands)
Net sales to external customers:
 
 
 
Industrial Materials
$
162,494

 
$
95,575

Engineered Solutions
44,717

 
29,090

Total net sales
$
207,211

 
$
124,665

Operating (loss) income:
 
 
 
Industrial Materials
$
(26,943
)
 
$
(20,247
)
Engineered Solutions
(3,348
)
 
(851
)
Corporate, R&D and Other expenses
(15,542
)
 
(8,551
)
Total operating loss
$
(45,833
)
 
$
(29,649
)
 
 
 
 
Reconciliation of segment operating loss to
    loss before provision for income taxes
 
 
 
Other expense (income), net
$
393

 
$
246

Interest expense
8,921

 
7,180

Interest income
(73
)
 
(12
)
Loss before provision for income taxes
$
(55,074
)
 
$
(37,063
)