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 June 30, 2016

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)

Suite 300 Park Center I	44131
6100 Oak Tree Boulevard	(Zip code)
Independence, OH
(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 July 15, 2016, 100 shares of common stock, par value $.01 per share, were outstanding.

* The registrant is a voluntary filer and is not subject to the filing requirements of the Securities Exchange Act of 1934. However, during the preceding 12 months, the registrant has filed all reports that it would have been required to file by Section 13 or 15(d) of the Securities Exchange Act of 1934 if the registrant was subject to the filing requirements of the Securities Exchange Act of 1934.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION:
Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of December 31, 2015 and June 30, 2016 (unaudited)	3
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for Three and Six Months Ended June 30 2015 and 2016 (unaudited)	4
Condensed Consolidated Statements of Cash Flows for the Six Months ended June 30, 2015 and 2016 (unaudited)	5
Notes to Condensed 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	45
Item 4. Controls and Procedures	46
PART II. OTHER INFORMATION:
Item 1. Legal Proceedings	47
Item 1A. Risk Factors	47
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3. Defaults Upon Senior Securities	47
Item 4. Mine Safety Disclosures	47
Item 5. Other Information	47
Item 6. Exhibits	48
SIGNATURE	49

2

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

Unuaudited

	Successor
	As of December 31, 2015			As of June 30, 2016
ASSETS
Current assets:
Cash and cash equivalents	$	6,927		$	13,409
Accounts and notes receivable, net of allowance for doubtful accounts of $300 as of December 31, 2015 and $412 as of June 30, 2016	82,390			80,459
Inventories	218,130			187,240
Prepaid expenses and other current assets	21,157			23,634
Current assets of discontinued operations	98,281			92,873
Total current assets	426,885			397,615
Property, plant and equipment	571,329			585,504
Less: accumulated depreciation	20,166			48,206
Net property, plant and equipment	551,163			537,298
Deferred income taxes	15,326			18,476
Goodwill	172,059			171,117
Other assets	152,613			147,767
Long-term assets of discontinued operations	103,975			—
Total assets	$	1,422,021		$	1,272,273
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	40,147		$	45,233
Short-term debt	4,772			16,482
Accrued income and other taxes	5,933			5,562
Rationalizations	1,195			401
Other accrued liabilities	20,994			25,063
Current liabilities of discontinued operations	23,082			19,315
Total current liabilities	96,123			112,056
Long-term debt	362,455			363,975
Other long-term obligations	94,318			91,177
Deferred income taxes	57,430			47,609
Long-term liabilities of discontinued operations	1,167			—
Contingencies – Note 11				—
Stockholders’ equity:
Preferred stock, par value $.01, 10,000,000 shares authorized, none issued	—			—
Common stock, par value $.01, 225,000,000 shares authorized, 100 shares issued as of December 31, 2015 and June 30, 2016	—			—
Additional paid-in capital	854,337			854,337
Accumulated other comprehensive (loss) income	(10,255		)	1,446
Accumulated deficit	(33,554		)	(198,327		)
Total stockholders’ equity	810,528			657,456
Total liabilities and stockholders’ equity	$	1,422,021		$	1,272,273

See accompanying Notes to Condensed Consolidated Financial Statements

3

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Dollars in thousands, except per share amounts)

(Unaudited)

	Predecessor			Successor			Predecessor			Successor
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2016			2015			2016
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$	125,809		$	115,365		$	288,303		$	210,941
Cost of sales	111,591			120,266			257,593			217,696
Lower of cost or market inventory adjustment	—			3,504			—			14,625
Gross profit (loss)	14,218			(8,405		)	30,710			(21,380		)
Research and development	1,150			786			2,667			1,438
Selling and administrative expenses	19,709			13,487			39,798			27,157
Rationalizations	(26		)	(64		)	53			58
Impairments	—			—			35,381			—
Operating loss	(6,615		)	(22,614		)	(47,189		)	(50,033		)
Other expense (income), net	733			(1,198		)	1,151			(960		)
Interest expense	8,796			6,436			17,421			12,896
Interest income	(268		)	—			(341		)	(12		)
Loss from continuing operations before provision for income taxes	(15,876		)	(27,852		)	(65,420		)	(61,957		)
Provision for income taxes	1,239			(5,591		)	1,219			(5,886		)
Net loss from continuing operations	(17,115		)	(22,261		)	(66,639		)	(56,071		)
Loss from discontinued operations, net of tax *	(5,702		)	(106,138		)	(11,786		)	(108,702		)
Net loss	$	(22,817	)	$	(128,399	)	$	(78,425	)	$	(164,773	)
STATEMENTS OF COMPREHENSIVE LOSS
Net loss	$	(22,817	)	$	(128,399	)	$	(78,425	)	$	(164,773	)
Other comprehensive loss:
Foreign currency translation adjustments	7,515			(830		)	(22,096		)	11,674
Commodities and foreign currency derivatives and other, net of tax of ($154) and $0, respectively	42			(106		)	887			27
Other comprehensive (loss) income, net of tax:	7,557			(936		)	(21,209		)	11,701
Comprehensive loss	$	(15,260	)	$	(129,335	)	$	(99,634	)	$	(153,072	)

* Loss on discontinued operations includes a pretax impairment charge of $105,600 in the three and six months ended June 30, 2016. See Note 3 "Discontinued Operations and Related Assets Held for Sale"

See accompanying Notes to Condensed Consolidated Financial Statements

4

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

	Predecessor			Successor
	For the Six Months Ended June 30, 2015			For the Six Months Ended June 30, 2016
Cash flow from operating activities:
Net loss	$	(78,425	)	$	(164,773	)
Adjustments to reconcile net loss to cash provided by operations:
Depreciation and amortization	39,384			43,228
Impairments	35,381			105,600
Lower of cost or market inventory adjustment, net of depreciation	—			12,758
Deferred income tax provision	(4,947		)	(9,091		)
Post-retirement and pension plan changes	2,252			2,102
Stock-based compensation	2,628			—
Interest expense	7,699			3,203
Other charges, net	(1,321		)	(2,646		)
Net change in working capital*	30,395			24,506
Increase in long-term assets and liabilities	(8,826		)	(3,702		)
Net cash provided by operating activities	24,220			11,185
Cash flow from investing activities:
Capital expenditures	(25,620		)	(15,140		)
Proceeds from the sale of assets	638			557
Derivative instrument settlements, net	(7,804		)	(721		)
Net cash used in investing activities	(32,786		)	(15,304		)
Cash flow from financing activities:
Short-term debt, net	4,506			11,004
Revolving Facility borrowings	74,000			32,000
Revolving Facility reductions	(66,000		)	(32,000		)
Principal payments on long-term debt	(67		)	(69		)
Purchase of treasury shares	(63		)	—
Revolving Facility refinancing fees	(2,722		)	(922		)
Other	(2,850		)	—
Net cash provided by financing activities	6,804			10,013
Net change in cash and cash equivalents	(1,762		)	5,894
Effect of exchange rate changes on cash and cash equivalents	(1,283		)	588
Cash and cash equivalents at beginning of period	17,550			6,927
Cash and cash equivalents at end of period	$	14,505		$	13,409
* Net change in working capital due to the following components:
Accounts and notes receivable, net	$	34,858		$	5,211
Inventories	3,274			17,122
Prepaid expenses and other current assets	6,238			(2,580		)
Change in accounts payable and accruals	(11,806		)	6,840
Rationalizations	(2,183		)	(2,137		)
Increase in interest payable	14			50
Net change in working capital	$	30,395		$	24,506

See accompanying Notes to Condensed Consolidated Financial Statements

5

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED 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.

On February 26, 2016, the Company announced it plans to realign its two business segments. Industrial Materials will now be comprised of graphite electrodes and needle coke products. Engineered Solutions will now be comprised of advanced graphite materials, advanced composite materials, advanced electronic technologies, and refractory products. Refractory products was previously included in the Industrial Materials business segment. Advanced materials products will now be a part of the business segment where these products are produced.

This realignment of the business segments will allow the Company to better direct its resources and simplify its operations. The Industrial Materials business segment will continue to focus on being the lowest cost producer providing the best quality of graphite electrodes in a very challenging market. The Engineered Solutions business segment will continue to leverage the intellectual property of carbon and graphite material science to innovate and commercialize advanced technologies and new products in high growth markets.

The Company also announced that it plans to review strategic alternatives for its Engineered Solutions business segment. This process is currently under way. See Note 3 "Discontinued Operations and Assets Held for Sale" for further information.

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, 2015 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, 2015 (the “Annual Report”) but does not include all disclosures required by GAAP in audited financial statements. 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 periods 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. Predecessor and Successor Reporting

On August 17, 2015, the Company was acquired by affiliates of Brookfield Asset Management Inc. (see Note 2 "Preferred Share Issuance and Merger"). We elected to account for the acquisition under the acquisition method of accounting. Under the acquisition method of accounting, the assets and liabilities of GTI were adjusted to their fair market value as of August 15, 2015, the day that Brookfield effectively took control of the Company.

Our consolidated statements of operations subsequent to the acquisition include amortization expense relating to the fair value adjustments and depreciation expense based on the fair value of the Company's property, plant and equipment that had previously been carried at historical cost less accumulated depreciation. Therefore, the Company's financial information prior to the acquisition is not comparable to the financial information subsequent to the Merger. As a result, the financial statements and certain note presentations are separated into two distinct periods, the period before the consummation of the acquisition (labeled "Predecessor") and the period after the date of acquisition (labeled "Successor"), to indicate the application of the different basis of accounting between the periods presented.

6

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

D. New Accounting Standards

In May 2014, the 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 was expected to be effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. On July 9, 2015, the FASB deferred the effective date to fiscal years beginning after December 15, 2017. 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.

In April 2015, the FASB issued ASU 2015-3, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015 with early adoption permitted. We had no capitalized debt issuance costs as of December 31, 2015. We adopted this ASU as of January 1, 2016, and adoption resulted in no significant impact on the Company's financial position, results of operations or cash flows.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Under this new guidance, a company will now recognize most leases on its balance sheet as lease liabilities with corresponding right-of-use assets. This ASU is effective for us beginning after January 1, 2019. The Company is currently evaluating the impact of the adoption of this standard on its financial position, results of operations or cash flows.

(2) Preferred Share Issuance and Merger

Preferred Stock

On August 11, 2015, the Company issued and sold to BCP IV GrafTech Holdings LP ("BCP"), an affiliate of Brookfield Asset Management Inc. (“Brookfield”) (i) 136,616 shares of a new Series A Convertible Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”), convertible into 19.9% of the shares of common stock of the Company outstanding immediately prior to such issuance and (ii) 13,384 shares of a new Series B Convertible Preferred Stock, par value $0.01 per share (the “Series B Preferred Stock,” and, together with the Series A Preferred Stock, the “Preferred Stock”), for an aggregate purchase price of $150,000,000 in cash (the “Purchase Price”), under the Investment Agreement dated May 4, 2015 (the “Investment Agreement”) between the Company and Brookfield.

The closing of such issuance and sale occurred after the satisfaction of the closing conditions set forth in the Investment Agreement.

Pursuant to the Investment Agreement, the Company reimbursed Brookfield for $500,000 of out-of-pocket fees and expenses (including fees and expenses of legal counsel) incurred by Brookfield in connection with the transaction.

The proceeds from the issuance and sale were used by the Company, along with funds available under the Company’s $40 million delayed draw term loan facility, senior revolving credit facility and cash on hand, to prepay the Company’s $200 million Senior Subordinated Notes due November 30, 2015.

Merger Agreement

On May 18, 2015, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), dated May 17, 2015, with BCP and Athena Acquisition Subsidiary Inc. a wholly owned subsidiary of BCP (“Acquisition Sub”). Pursuant to the Merger Agreement, on May 26, 2015, BCP commenced a cash tender offer to purchase any and all of the outstanding shares of common stock, par value $0.01 per share (the “Shares”), of the Company, at a purchase price of $5.05 per Share in cash (the “Offer Price”), on the terms and subject to the conditions set forth in the Offer to Purchase, dated May 26, 2015 (together with any amendments and supplements thereto, the “Offer to Purchase”) and in the related Letter of Transmittal (the “Letter of Transmittal” and, together with the Offer to Purchase, the “Offer”).

On August 14, 2015, Acquisition Sub accepted for payment all Shares validly tendered in the Offer and not withdrawn prior to the expiration of the Offer, and payment of the Offer Price for such Shares was made promptly. On August 17, 2015, Acquisition Sub merged with and into the Company, with the Company surviving as a wholly-owned subsidiary of BCP (the "Merger").

7

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Pursuant to the Merger Agreement, upon consummation of the Merger, each Share that was not tendered and accepted pursuant to the Offer (other than canceled shares, dissenting shares and shares held by the Company’s subsidiaries or BCP’s subsidiaries (other than Acquisition Sub)) was canceled and converted into cash consideration in an amount equal to the Offer Price.

Business Combination

The computation of the fair value of the total consideration at the date of acquisition follows:

Purchase Consideration
(In thousands except share price)
	# Shares	Unit Price		Amount
Convertible Preferred Equity
Series A and B	150	$	1,000.00	$	150,000
Common Equity
Common Shares	139,397	$	5.05	$	703,955
Net value of options				$	382
Total				$	854,337

Recording of assets acquired and liabilities assumed: The acquisition was accounted for using the acquisition method of accounting. Under the acquisition method, the identifiable assets acquired and the liabilities assumed are assigned a new basis of accounting reflecting their estimated fair values. The information included herein has been prepared based on the allocation of purchase price using estimates of the fair values and useful lives of assets acquired and liabilities assumed based on the best available information determined with the assistance of independent valuations, quoted market prices and management estimates.

The following table summarizes the fair values of the identifiable assets acquired and liabilities assumed at the acquisition date:

Net identifiable assets acquired
	Cash	$	25,032
	Accounts receivable	94,298
	Inventories	344,765
	Property, plant and equipment	650,405
	Intangible assets	155,700
	Deferred tax assets	41,606
	Prepaid and other current assets	49,716
	Other non-current assets	8,428
	Accounts payable	(68,005		)
	Short-term debt	(18,779		)
	Other accrued liabilities	(53,252		)
	Long-term debt	(367,811		)
	Other long-term liabilities	(101,648		)
	Deferred tax liabilities	(79,235		)
Net identifiable assets acquired		$	681,220
Goodwill		$	173,117
Net assets acquired		$	854,337

8

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Goodwill: Goodwill of approximately $173.1 million was recognized for the acquisition and is calculated as the excess of the consideration transferred over the net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill was increased by $1.1 million in March 2016, as a result of a decreased inventory valuation of $2.0 million offset by an increase to deferred tax assets of $0.9 million.

(3) Discontinued Operations and Related Assets Held for Sale

On February 26, 2016, the Company announced that it had initiated a strategic review of its Engineered Solutions business segment to better direct its resources and simplify its operations. Any potential sale of assets was prohibited by the Revolving Facility without approval of the requisite lenders thereunder. On April 27, 2016, GrafTech and certain of its subsidiaries entered into an amendment to the Revolving Facility (see Note 8 "Debt and Liquidity") which, among other things, permits the sale of assets with the restriction that the proceeds be utilized to pay down revolver borrowings. As of June 30, 2016, the Engineered Solutions segment qualified for reporting as discontinued operations. We anticipate this intiative to be completed within the next 12 months, and as such, the assets and liabilities have all been classified as current.

We evaluated the fair value of the Engineered Solutions business segment utilizing the market approach (Level 3 measure). As a result, we incurred an impairment charge to our Engineered Solutions business segment of $105.6 million to align the carrying value with estimated fair value as of June 30, 2016. The impairment charge is based upon Management’s best estimate of fair value less cost of disposal for the ES business. The estimate reflects Management’s view of the manner in which the Engineered Solutions business will be divested, including  assumptions as to if and how it will be split, given the lines of business and asset groups that constitute the Engineered Solutions segment. Amongst other things, the split into groups influences the computation of the impairment charge.The impairment charge and resulting loss in the three months ended June 30, 2016 is not offset by expected gains on certain group(s), and as a result may or may not later be partially offset through gains depending on the outcome of the divestiture. These assumptions and estimates are subject to change until divestiture is completed and may be adjusted in the quarter that the information becomes available.

9

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables summarize the results of the Engineered Solutions business segment, reclassified as discontinued operations for the three and six months ended June 30, 2015 and 2016.

	For the Three Months Ended  June 30, 2015			For the Three Months Ended June 30, 2016
	(dollars in thousands)
Net sales	$	39,313		$	29,930
Cost of sales	37,591			24,569
Gross profit	1,722			5,361
Research and development	764			813
Selling and administrative expenses	5,544			5,314
Rationalizations	1,794			(255		)
Impairment	—			105,600
Operating loss	(6,380		)	(106,111		)
Other expense (income)	(37		)	(81		)
Interest expense	399			951
Loss from discontinued operations before income taxes	(6,742		)	(106,981		)
Benefit from income taxes on discontinued operations	1,040			843
Loss from discontinued operations	$	(5,702	)	$	(106,138	)

	For the Six Months Ended June 30, 2015			For the Six Months Ended June 30, 2016
	(dollars in thousands)
Net sales	$	84,030		$	59,019
Cost of sales	78,037			50,554
Gross profit	5,993			8,465
Research and development	1,679			1,691
Selling and administrative expenses	11,745			9,760
Rationalizations	4,210			(246		)
Impairment	—			105,600
Operating loss	(11,641		)	(108,340		)
Other expense (income)	(64		)	(72		)
Interest expense	695			1,670
Loss from discontinued operations before income taxes	(12,272		)	(109,938		)
Benefit from income taxes on discontinued operations	486			1,236
Loss from discontinued operations	$	(11,786	)	$	(108,702	)

The significant components of our Statements of Cash Flows for the Engineered Solutions business segment held for sale are as follows:

10

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

	For the Six Months Ended June 30, 2015			For the Six Months Ended June 30, 2016
	(dollars in thousands)
Depreciation and amortization	$	7,330		$	3,052
Impairment	—			105,600
Deferred income taxes	(486		)	(1,236		)
Capital expenditures	9,413			2,513

The following table summarizes the carrying value of the assets and liabilities of discontinued operations as of December 31, 2015 and June 30, 2016.

	As of December 31, 2015		As of June 30, 2016
	(dollars in thousands)
Current assets of discontinued operations:
Accounts receivable	$	20,425	$	19,030
Inventories	77,332		77,656
Prepaid expenses and other current assets	524		924
Total current assets of discontinued operations	98,281		97,610
Net property plant and equipment	86,369		86,595
Other assets	17,606		14,268
Total long-term assets of discontinued operations	103,975		100,863
Impairment upon reclassification to held for sale	—		(105,600		)
Total assets of discontinued operations	$	202,256	$	92,873
Liabilities of discontinued operations:
Accounts payable	$	9,331	$	6,499
Accrued income and other taxes	3,113		2,500
Other accrued liabilities	10,638		9,336
Total current liabilities of discontinued operations	23,082		18,335
Other long-term obligations	1,167		980
Total liabilities of discontinued operations	$	24,249	$	19,315

11

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(4) Rationalizations

Throughout 2013, 2014 and 2015 the Company undertook rationalization plans in order to streamline its organization and lower its production costs. The majority of these initiatives were substantially complete as of June 30, 2016. The rationalization liability as of June 30, 2016 was $1.0 million consisting of the plan described below and severance payouts related to prior rationalization plans. In June of 2016, we further impaired assets related to our South African facility by $0.6 million to reflect a decline in market value.

2015 Advanced Graphite Materials Rationalization

On March 2, 2015, GrafTech announced plans to further optimize the production platform for its advanced graphite materials business. These actions included the closure of our Notre Dame, France facility and further reductions in force in our Columbia, Tennessee facility and other locations totaling approximately 85 people. The 2015 Advanced Graphite Materials rationalization plan will result in approximately $10 million of charges consisting of severance, inventory losses and other related costs. Approximately $8 million of these costs will be cash outlays, the majority of which were disbursed in 2015. We incurred charges of $3.2 million and $5.8 million in the three months and six months ended June 30, 2015. We incurred insignificant charges for this plan during the three and six months ended June 30,2016. The remaining liability associated with this plan is $0.6 million as of June 30,2016.

(5) 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. During the second quarter of 2016, our Engineered Solutions segment qualified as held for sale status and as such our Engineered Solution's results have been excluded from continuing operations. See Note 3 "Discontinued Operations and Assets Held for Sale" for significant components of the results of our Engineered Solutions segment.

The following tables summarize financial information concerning our reportable segments and all prior periods have been recast to reflect our new segmentation:

	Predecessor			Successor			Predecessor			Successor
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2016			2015			2016
	(Dollars in thousands)						(Dollars in thousands)
Net sales to external customers:
Industrial Materials	$	125,809		$	115,365		$	288,303		$	210,941
Operating (loss) income:
Industrial Materials	$	4,632		$	(16,291	)	$	(22,312	)	$	(36,538	)
Corporate, R&D and Other expenses	(11,247		)	(6,323		)	(24,877		)	(13,495		)
Total operating loss	$	(6,615	)	$	(22,614	)	$	(47,189	)	$	(50,033	)
Reconciliation of segment operating loss to     loss before provision for income taxes
Other expense (income), net	$	733		$	(1,198	)	$	1,151		$	(960	)
Interest expense	8,796			6,436			17,421			12,896
Interest income	(268		)	—			(341		)	(12		)
Loss from continuing operations before    provision for income taxes	$	(15,876	)	$	(27,852	)	$	(65,420	)	$	(61,957	)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(6) Benefit Plans

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

	Predecessor			Successor			Predecessor			Successor
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2016			2015			2016
	(Dollars in thousands)						(Dollars in thousands)
Service cost	$	506		$	508		$	1,333		$	1,016
Interest cost	1,526			1,498			3,052			2,996
Expected return on plan assets	(1,354		)	(1,310		)	(2,708		)	(2,620		)
Amortization of prior service cost	1			—			2			—
Net cost	$	679		$	696		$	1,679		$	1,392

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

	Predecessor			Successor		Predecessor			Successor
	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2015			2016		2015			2016
	(Dollars in thousands)					(Dollars in thousands)
Service cost	$	4		$	1	$	8		$	2
Interest cost	315			272		630			543
Amortization of prior service cost	(43		)	—		(86		)	—
Net cost	$	276		$	273	$	552		$	545

(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 (for example, graphite electrodes, needle coke, etc.) 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.

We received notice in March, 2015 that the market prices for needle coke were decreasing by an additional 18%, effective for the second quarter of 2015. This decline further compressed our margins for needle coke products versus our annual plan. We determined that this change, which was driven by overcapacity in the market, indicated that the needle coke industry is facing a deeper and longer trough than previously expected. We considered the additional price change as a triggering event and tested our needle coke goodwill for impairment as of March 31, 2015. This test resulted in an impairment charge for the remaining needle coke goodwill of $35.4 million.

As a result of our acquisition by Brookfield, our goodwill and intangibles were revalued as of August 15, 2015. See Note 2 "Preferred Share Issuance and Merger" for description of the Merger and the results of purchase price accounting. The following tables represents the changes in the carrying value of goodwill and intangibles during the predecessor entity period of January 1, 2015 through August 14, 2015 and the successor entity period of August 15, 2015 through June 30, 2016:

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Goodwill
Predecessor	(Dollars in Thousands)
Balance as of December 31, 2014	$	420,129
Impairment	(35,381		)
Currency translation effect	(616		)
Balance as of August 14, 2015	$	384,132
Successor
Balance as of August 15, 2015	$	170,418
Adjustments	1,641
Balance as of December 31, 2015	$	172,059
Adjustments (See Note 2)	1,058
Goodwill transferred to discontinued operations	(2,000		)
Balance as of June 30, 2016	$	171,117

Intangible Assets
	As of December 31, 2015							As of June 30, 2016
	Gross Carrying Amount		Accumulated Amortization & Impairment			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization & Impairment			Net Carrying Amount
	(Dollars in Thousands)
Trade name	$	22,000	$	(896	)	$	21,104	$	22,500	$	(2,075	)	$	20,425
Technological know-how	54,100		(2,934		)	51,166		55,300		(6,767		)	48,533
Customer –related     intangible	64,500		(1,602		)	62,898		64,500		(3,937		)	60,563
Total finite-lived     intangible assets	$	140,600	$	(5,432	)	$	135,168	$	142,300	$	(12,779	)	$	129,521

Amortization expense of acquired intangible assets was $4.4 million in the three months ended June 30, 2015 and $3.6 million in the three months ended June 30, 2016 and $8.7 million and $7.2 million in the six months ended June 30, 2015 and June 30, 2016, respectively. Estimated amortization expense will approximate $7.7 million in the remainder of 2016, $13.6 million in 2017, $12.9 million in 2018, $12.2 million in 2019 and $11.4 million in 2020.

(8) Debt and Liquidity

The following table presents our long-term debt: 

	As of December 31, 2015			As of June 30, 2016
	(Dollars in thousands)
Credit Facility (Revolving Facility and Term Loan Facility)	$	98,000		$	109,000
Senior Notes	267,827			270,961
Other Debt	1,400			496
Total Debt	367,227			380,457
Less: Short-term Debt	(4,772		)	(16,482		)
Long-term Debt	$	362,455		$	363,975

The fair value of debt, which was determined using Level 2 inputs, was $335.4 million versus a book value of $380.5 million as of June 30, 2016. As a result of our acquisition by Brookfield and the resulting purchase price accounting adjustments (see Note 2 "Preferred Share Issuance and Merger"), our Senior Notes were adjusted to their

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PART I (CONT'D)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

fair market value as of August 15, 2015. The discount to fair value will be accreted over the remaining term of the Notes.

Credit Facility

On April 23, 2014, the Company and certain of its subsidiaries entered into an Amended and Restated Credit Agreement with a borrowing capacity of $400 million and a maturity date of April 2019 (the "Revolving Facility"). On February 27, 2015, GrafTech and certain of its subsidiaries entered into a further Amended and Restated Credit Agreement that provides for, among other things, greater financial flexibility and a $40 million senior secured delayed draw term loan facility (the "Term Loan Facility").

On July 28, 2015, GrafTech and certain of its subsidiaries entered into an amendment to the Amended and Restated Credit Agreement to change the terms regarding the occurrence of a default upon a change in control (which is defined thereunder to include the acquisition by any person of more than 25 percent of GrafTech’s outstanding shares) to exclude the acquisition of shares by Brookfield (see Note 2).  In addition, effective upon such acquisition, the financial covenants were eased, resulting in increased availability under the Revolving Facility. The size of the Revolving Facility was also reduced from $400 million to $375 million. The size of the Term Loan Facility remained at $40 million.

On April 27, 2016, GrafTech and certain of its subsidiaries entered into an amendment to the Revolving Facility. The size of the Revolving Facility was permanently reduced from $375 million to $225 million. New covenants were also added to the Revolving Facility, including a requirement to make mandatory repayments of outstanding amounts under the Revolving Facility and the Term Loan Facility with the proceeds of any sale of all or any substantial part of the assets included in the Engineered Solutions segment and a requirement to maintain minimum liquidity (consisting of cash, cash equivalents and availability under the Revolving Facility) in excess of $25 million. The covenants were also modified to provide for: the elimination of certain exceptions to the Company’s negative covenants limiting the Company’s ability to make certain investments, sell assets, make restricted payments, incur liens and incur debt; a restriction on the amount of cash and cash equivalents permitted to be held on the balance sheet at any one time without paying down the Revolving Facility and the Term Loan Facility; and changes to the Company’s financial covenants so that until the earlier of March 31, 2019 or the Company has $75 million in trailing twelve month EBITDA (as defined in the Revolving Facility), the Company is required to maintain trailing twelve month EBITDA above certain minimums ranging from ($40 million) to $35 million after which the Company’s existing financial covenants under the Revolving Facility will apply.

With this amendment, the Company has full access to the $225 million Revolving Facility. As of June 30, 2016, the Company had $72.0 million of borrowings on the Revolving Facility and $13.5 million of letters of credit drawn against the Revolving Facility.

The $40 million Term Loan Facility was fully drawn on August 11, 2015, in connection with the repayment of the Senior Subordinated Notes. The balance of the Term Loan Facility of $37.0 million as of June 30, 2016.

The interest rate applicable to the Revolving Facility and Term Loan Facility is LIBOR plus a margin ranging from 2.25% to 4.75% (depending on our total senior secured leverage ratio). The borrowers pay a per annum fee ranging from 0.35% to 0.70% (depending on our senior secured leverage ratio) on the undrawn portion of the commitments under the Revolving Facility.

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

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PART I (CONT'D)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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.

The indenture for the Senior Notes states that 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. On August 17, 2015 a change in control occurred due to the Merger (see Note 2 to the Financial Statements). However, the downgrade of the ratings of the Senior Notes, as specified in the indenture, did not occur. Therefore, the Company was not and will not be required to offer to repurchase the Senior Notes as a result of the Merger.

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 contains 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.

(9) Inventories

Inventories are comprised of the following: 

	As of December 31, 2015		As of June 30, 2016
	(Dollars in thousands)
Inventories:
Raw materials and supplies	$	66,201	$	60,080
Work in process	89,198		65,055
Finished goods	62,731		62,105
Total	$	218,130	$	187,240

Due to decreased pricing in our graphite electrode product line, we recorded a lower of cost or market inventory adjustment of $3.5 million and $14.6 million in the three and six months endedJune 30, 2016, respectively.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(10) Interest Expense

The following tables present the components of interest expense: 

	Predecessor		Successor		Predecessor		Successor
	For the Three Months Ended June 30, 2015		For the Three Months Ended June 30, 2016		For the Six Months Ended June 30, 2015		For the Six Months Ended June 30, 2016
	(Dollars in thousands)				(Dollars in thousands)
Interest incurred on debt	$	4,883	$	4,819	$	9,757	$	9,716
Amortization of discount on Senior    Subordinated Notes	3,261		—		6,468		—
Accretion of fair value adjustment on Senior Notes	—		1,571		—		3,134
Amortization of debt issuance costs	652		46		1,196		46
Total interest expense	$	8,796	$	6,436	$	17,421	$	12,896

Interest Rates

The Revolving Facility had an effective interest rate of 2.68% and 4.22% as of December 31, 2015 and June 30, 2016, respectively. The Term Loan Facility had an interest rate of 2.49% as of December 31, 2015 and 4.22% as of June 30, 2016. The Senior Notes have a fixed interest rate of 6.375%. 

(11) 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.

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 six months ended June 30, 2016, are presented below: 

	(Dollars in thousands)
Balance as of December 31, 2015	$	388
Product warranty adjustments	879
Payments and settlements	(475		)
Balance as of June 30, 2016	$	792

(12) 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.

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PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

The following tables summarize the provision for income taxes for the three and six months ended June 30, 2015 and June 30, 2016:

	Predecessor			Successor			Predecessor			Successor
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2016			2015			2016
	(Dollars in thousands)						(Dollars in thousands)
Tax (benefit) expense	$	1,239		$	(5,591	)	$	1,219		$	(5,886	)
Pretax loss	$	(15,876	)	$	(27,852	)	$	(65,420	)	$	(61,957	)
Effective tax rates	(7.8		)%	20.1		%	(1.9		)%	9.5		%

For the three and six months ended June 30, 2016, the effective tax rate differs from the U.S. statutory rate of 35% primarily due to recent losses in foreign jurisdictions where a tax benefit will be recognized, offset by recent losses in the U.S. and Switzerland where we receive no tax benefit due to a full valuation allowance and worldwide earnings from various countries taxed at different rates. The recognition of the valuation allowance does not result in or limit the Company's ability to utilize these tax assets in the future. The effective tax rate for the three and six months ended June 30, 2015 differs from the U.S. statutory rate of 35% primarily due to recent losses in the U.S. and Switzerland where we receive no tax benefit due to a full valuation allowance and worldwide earnings from various countries taxed at different rates.

As of June 30, 2016, we had unrecognized tax benefits of $3.9 million, $3.1 million of which, if recognized, would have 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 2009.

We continue to assess the realization of our 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 established and maintained valuation allowances on those net deferred tax assets.

(13) 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. Our derivative risk management strategy has not resulted in a material impact to our financial results in 2015 or 2016. Our derivative assets and liabilities are included within "Prepaid expenses and other current assets" and "Other current liabilities" on the Condensed Consolidated Balance Sheets and effects of these derivatives are recorded in revenue, cost of goods sold and other expense (income) on the Condensed Consolidated Statements of Operations.

Foreign currency derivatives

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PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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 six months ended June 30, 2015 and 2016, respectively.

In 2015 and 2016, we entered into foreign 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, euro and Japanese yen. As of June 30, 2016, we had outstanding Mexican peso, euro, and Japanese yen currency contracts with an aggregate notional amount of $33.2 million. The foreign currency derivatives outstanding as of June 30, 2016 have maturities that range from July, 2016 to September, 2016.

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. As of June 30, 2016, we had no outstanding derivative swap contracts for refined oil products or natural gas.

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 denominated in foreign currency and designated as a non-derivative net investment hedging instrument was $11.8 million and $12.5 million as of December 31, 2015 and June 30, 2016, respectively. Within the currency translation adjustment portion of other comprehensive income, we recorded a gain of $0.1 million for the three months ended June 30, 2015, and we incurred no gain or loss in three months ended June 30, 2016, resulting from these net investment hedges. We recorded a gain of $0.8 million in the six months ended June 30, 2015 and a loss of $0.6 million in the six months ended June 30, 2016 within other comprehensive income related to theses hedges.

(14) 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

19

PART I (CONT'D)

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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, 2015 and June 30, 2016 and condensed consolidating statements of operations and comprehensive income and statements of cash flows for the three months ended March 31, 2015 (Predecessor) and 2016 (Successor) of the Parent Guarantors and the Non-Guarantors.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEETS
As of December 31, 2015
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	646	$	6,281	$	—		$	6,927
Accounts receivable - affiliates	51,592		9,803		19,505		(80,900		)	—
Accounts receivable - trade	—		7,599		74,791		—			82,390
Inventories	—		54,613		163,517		—			218,130
Prepaid and other current assets	—		7,913		13,244		—			21,157
Current assets of discontinued operations	—		81,638		17,520		(877		)	98,281
Total current assets	51,592		162,212		294,858		(81,777		)	426,885
Investment in affiliates	1,068,027		668,113		—		(1,736,140		)	—
Property, plant and equipment	—		209,633		341,530		—			551,163
Deferred income taxes	—		—		15,326		—			15,326
Goodwill	—		72,399		99,660		—			172,059
Notes receivable - affiliate	—		46,074		—		(46,074		)	—
Other assets	—		79,367		73,246		—			152,613
Long-term assets of discontinued operations	—		99,457		4,518		—			103,975
Total Assets	$	1,119,619	$	1,337,255	$	829,138	$	(1,863,991	)	$	1,422,021
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable - affiliate	$	159	$	71,099	$	9,642	$	(80,900	)	$	—
Accounts payable - trade	—		11,191		28,956		—			40,147
Short-term debt	—		4,636		136		—			4,772
Accrued income and other taxes	—		2,824		3,109		—			5,933
Rationalizations	—		995		200		—			1,195
Other accrued liabilities	2,444		4,847		13,703		—			20,994
Short-term liabilities of discontinued operations	—		18,384		5,575		(877		)	23,082
Total current liabilities	2,603		113,976		61,321		(81,777		)	96,123
Long-term debt - affiliate	38,661		—		7,413		(46,074		)	—
Long-term debt - third party	267,827		93,758		870		—			362,455
Other long-term obligations	—		60,508		33,810		—			94,318
Deferred income taxes	—		248		57,182		—			57,430
Long-term liabilities of discontinued operations	—		738		429		—			1,167
Stockholders' equity	810,528		1,068,027		668,113		(1,736,140		)	810,528
Total Liabilities and Stockholders' Equity	$	1,119,619	$	1,337,255	$	829,138	$	(1,863,991	)	$	1,422,021

21

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING BALANCE SHEETS
As of June 30, 2016
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	737	$	12,672	$	—		$	13,409
Accounts receivable - affiliates	51,592		3,657		12,696		(67,945		)	—
Accounts receivable - trade	—		8,642		71,817		—			80,459
Inventories	—		44,003		143,237		—			187,240
Prepaid and other current assets	—		8,146		15,488		—			23,634
Current assets of discontinued operations	—		79,908		18,008		(5,043		)	92,873
Total current assets	51,592		145,093		273,918		(72,988		)	397,615
Investment in affiliates	928,091		632,784		—		(1,560,875		)	—
Property, plant and equipment	—		201,677		335,621		—			537,298
Deferred income taxes	—		—		18,476		—			18,476
Goodwill	—		70,399		100,718		—			171,117
Notes receivable - affiliate	—		55,999		—		(55,999		)	—
Other assets	—		75,300		72,467		—			147,767
Total Assets	$	979,683	$	1,181,252	$	801,200	$	(1,689,862	)	$	1,272,273
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable - affiliate	$	236	$	64,294	$	3,415	$	(67,945	)	$	—
Accounts payable - trade	—		8,178		37,055		—			45,233
Short-term debt	—		11,341		5,141		—			16,482
Accrued income and other taxes	—		1,109		4,453		—			5,562
Rationalizations	—		384		17		—			401
Other accrued liabilities	2,444		6,190		16,429		—			25,063
Liabilities of discontinued operations	—		17,006		7,352		(5,043		)	19,315
Total current liabilities	2,680		108,502		73,862		(72,988		)	112,056
Long-term debt - affiliate	48,586		—		7,413		(55,999		)	—
Long-term debt - third party	270,961		87,105		5,909		—			363,975
Other long-term obligations	—		57,305		33,872		—			91,177
Deferred income taxes	—		249		47,360		—			47,609
Stockholders' equity	657,456		928,091		632,784		(1,560,875		)	657,456
Total Liabilities and Stockholders' Equity	$	979,683	$	1,181,252	$	801,200	$	(1,689,862	)	$	1,272,273

22

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Three Months ended June 30, 2015 (Predecessor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	51,654		$	15,503		$	(67,157	)		$	—
Sales - third party	—			30,045			95,764			—				125,809
Net sales	—			81,699			111,267			(67,157		)		125,809
Cost of sales	—			69,923			108,825			(67,157		)		111,591
Gross profit	—			11,776			2,442			—				14,218
Research and development	—			1,150			—			—				1,150
Selling and administrative expenses	—			8,301			11,408			—				19,709
Rationalizations	—			(29		)	3			—				(26		)
Operating (loss) income	—			2,354			(8,969		)	—				(6,615		)
Other expense (income), net	—			457			276			—				733
Interest expense - affiliate	—			145			—			(145		)		—
Interest expense - third party	8,220			459			117			—				8,796
Interest income - affiliate	(145		)	—			—			145				—
Interest income - third party	—			—			(268		)	—				(268		)
Income (Loss) from   continuing operations before    provision for income taxes	(8,075		)	1,293			(9,094		)	—			`	(15,876		)
Provision for income taxes	—			(4,043		)	5,282			—				1,239
Equity in loss from continuing operations of subsidiary	(9,040		)	(14,376		)	—			23,416				—
Net (loss) income from continuing operations	(17,115		)	(9,040		)	(14,376		)	23,416				(17,115		)
Loss from discontinued      operations, net of tax	—			(4,340		)	(1,362		)	—				(5,702		)
Equity in loss from discontinued operations of subsidiary	(5,702		)	(1,362		)	—			7,064				—
Net (loss) income from discontinued operations	(5,702		)	(5,702		)	(1,362		)	7,064				(5,702		)
Net loss	$	(22,817	)	$	(14,742	)	$	(15,738	)	$	30,480			$	(22,817	)
Statements of Comprehensive Income
Net (loss) income	$	(22,817	)	$	(14,742	)	$	(15,738	)	$	30,480			$	(22,817	)
Other comprehensive (loss) income	7,557			7,557			6,623			(14,180		)		7,557
Comprehensive (loss) income	$	(15,260	)	$	(7,185	)	$	(9,115	)	$	16,300			$	(15,260	)

23

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Three Months ended June 30, 2016 (Successor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	38,238		$	16,081		$	(54,319	)		$	—
Sales - third party	—			21,824			93,541			—				115,365
Net sales	—			60,062			109,622			(54,319		)		115,365
Cost of sales	—			43,760			130,825			(54,319		)		120,266
Lower of cost or market    inventory adjustment	—			1,761			1,743			—				3,504
Gross profit (loss)	—			14,541			(22,946		)	—				(8,405		)
Research and development	—			786			—			—				786
Selling and administrative expenses	—			3,688			9,799			—				13,487
Rationalizations	—			28			(92		)	—				(64		)
Operating (loss) income	—			10,039			(32,653		)	—				(22,614		)
Other expense (income), net	—			472			(1,670		)	—				(1,198		)
Interest expense - affiliate	236			—			—			(236		)		—
Interest expense - third party	6,353			13			70			—				6,436
Interest income - affiliate	—			(236		)	—			236				—
Loss from continuing operations before provision for income taxes	(6,589		)	9,790			(31,053		)	—			`	(27,852		)
Provision for income taxes	—			238			(5,829		)	—				(5,591		)
Equity in loss from continuing operations of subsidiary	(15,672		)	(25,224		)	—			40,896				—
Net (loss) income from continuing operations	(22,261		)	(15,672		)	(25,224		)	40,896				(22,261		)
Loss from discontinued      operations, net of tax	—			(103,752		)	(2,386		)	—				(106,138		)
Equity in loss from discontinued operations of subsidiary	(106,138		)	(2,386		)				108,524				—
Net (loss) income from discontinued operations	(106,138		)	(106,138		)	(2,386		)	108,524				(106,138		)
Net loss	$	(128,399	)	$	(121,810	)	$	(27,610	)	$	149,420			$	(128,399	)
Statements of Comprehensive Income
Net (loss) income	$	(128,399	)	$	(121,810	)	$	(27,610	)	$	149,420			$	(128,399	)
Other comprehensive (loss) income	(936		)	(936		)	(936		)	1,872				(936		)
Comprehensive (loss) income	$	(129,335	)	$	(122,746	)	$	(28,546	)	$	151,292			$	(129,335	)

24

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Six Months ended June 30, 2015 (Predecessor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	97,324		$	42,278		$	(139,602	)		$	—
Sales - third party	—			64,538			223,765			—				288,303
Net sales	—			161,862			266,043			(139,602		)		288,303
Cost of sales	—			148,325			248,870			(139,602		)		257,593
Gross profit	—			13,537			17,173			—				30,710
Research and development	—			2,667			—			—				2,667
Selling and administrative expenses	—			18,094			21,704			—				39,798
Impairments	—			35,381			—			—				35,381
Rationalizations	—			(29		)	82			—				53
Operating income (loss)	—			(42,576		)	(4,613		)	—				(47,189		)
Other expense (income), net	—			791			360			—				1,151
Interest expense - affiliate	—			305			—			(305		)		—
Interest expense - third party	16,382			828			211			—				17,421
Interest income - affiliate	(305		)	—			—			305				—
Interest income - third party	—			—			(341		)	—				(341		)
Loss from continuing operations before provision for income taxes	(16,077		)	(44,500		)	(4,843		)	—			`	(65,420		)
Provision for income taxes	—			(3,692		)	4,911			—				1,219
Equity in loss from continuing operations of subsidiary	(50,562		)	(9,754		)	—			60,316				—
Net (loss) income from continuing operations	(66,639		)	(50,562		)	(9,754		)	60,316				(66,639		)
Loss from discontinued      operations, net of tax	—			(5,644		)	(6,142		)	—				(11,786		)
Equity in loss from discontinued operations of subsidiary	(11,786		)	(6,142		)				17,928				—
Net (loss) income from discontinued operations	(11,786		)	(11,786		)	(6,142		)	17,928				(11,786		)
Net loss	$	(78,425	)	$	(62,348	)	$	(15,896	)	$	78,244			$	(78,425	)
Statements of Comprehensive Income
Net (loss) income	$	(78,425	)	$	(62,348	)	$	(15,896	)	$	78,244			$	(78,425	)
Other comprehensive (loss) income	(21,209		)	(21,209		)	(22,207		)	43,416				(21,209		)
Comprehensive (loss) income	$	(99,634	)	$	(83,557	)	$	(38,103	)	$	121,660			$	(99,634	)

25

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

26

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the Six Months Ended June 30, 2016 (Successor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	79,137		$	35,724		$	(114,861	)		$	—
Sales - third party	—			42,644			168,297			—				210,941
Net sales	—			121,781			204,021			(114,861		)		210,941
Cost of sales	—			105,414			227,143			(114,861		)		217,696
Lower of cost or market    inventory adjustment	—			3,782			10,843			—				14,625
Gross profit (loss)	—			12,585			(33,965		)	—				(21,380		)
Research and development	—			1,438			—			—				1,438
Selling and administrative expenses	—			9,674			17,483			—				27,157
Rationalizations	—			115			(57		)	—				58
Operating income (loss)	—			1,358			(51,391		)	—				(50,033		)
Other expense (income), net	6			742			(1,708		)	—				(960		)
Interest expense - affiliate	434			—			—			(434		)		—
Interest expense - third party	12,697			54			145			—				12,896
Interest income - affiliate	—			(434		)	—			434				—
Interest income - third party	—			—			(12		)	—				(12		)
Loss from continuing operations before provision for income taxes	(13,137		)	996			(49,816		)	—			`	(61,957		)
Provision for income taxes	—			255			(6,141		)	—				(5,886		)
Equity in loss from continuing operations of subsidiary	(42,934		)	(43,675		)	—			86,609				—
Net (loss) income from continuing operations	(56,071		)	(42,934		)	(43,675		)	86,609				(56,071		)
Loss from discontinued      operations, net of tax	—			(105,330		)	(3,372		)	—				(108,702		)
Equity in loss from discontinued operations of subsidiary	(108,702		)	(3,372		)				112,074				—
Net (loss) income from discontinued operations	(108,702		)	(108,702		)	(3,372		)	112,074				(108,702		)
Net loss	$	(164,773	)	$	(151,636	)	$	(47,047	)	$	198,683			$	(164,773	)
Statements of Comprehensive Income
Net (loss) income	$	(164,773	)	$	(151,636	)	$	(47,047	)	$	198,683			$	(164,773	)
Other comprehensive (loss) income	11,701			11,701			11,701			(23,402		)		11,701
Comprehensive (loss) income	$	(153,072	)	$	(139,935	)	$	(35,346	)	$	175,281			$	(153,072	)

27

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2015 (Predecessor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash provided by  (used in) operating activities:	$	(7,355	)	$	22,992		$	36,293		$	(27,710	)	$	24,220
Cash flow from investing activities:
Repayments from (loans to) affiliates	7,418			—			—			(7,418		)	—
Capital expenditures	—			(16,994		)	(8,626		)	—			(25,620		)
Payments for derivative instruments	—			(7,595		)	(209		)	—			(7,804		)
Proceeds from sale of fixed assets	—			397			241						638
Net cash provided by         (used in) investing activities	7,418			(24,192		)	(8,594		)	(7,418		)	(32,786		)
Cash flow from financing activities:
(Repayments to) loans from affiliates	—			(7,418		)	—			7,418			—
Dividends to affiliates	—			—			(27,710		)	27,710			—
Short-term debt borrowings	—			2,001			2,505			—			4,506
Revolving Facility borrowings	—			62,000			12,000			—			74,000
Revolving Facility reductions	—			(54,000		)	(12,000		)	—			(66,000		)
Principal payments on long term debt	—			(67		)	—			—			(67		)
Purchase of treasury shares	(63		)	—			—			—			(63		)
Revolver facility refinancing	—			(2,691		)	(31		)	—			(2,722		)
Other	—			(2,850		)	—			—			(2,850		)
Net cash provided by (used in)          financing activities	(63		)	(3,025		)	(25,236		)	35,128			6,804
Net change in cash and    cash equivalents	—			(4,225		)	2,463			—			(1,762		)
Effect of exchange rate changes    on cash and cash equivalents	—			—			(1,283		)	—			(1,283		)
Cash and cash equivalents at    beginning of period	—			5,503			12,047			—			17,550
Cash and cash equivalents    at end of period	$	—		$	1,278		$	13,227		$	—		$	14,505

28

PART I (CONT'D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2016 (Successor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash (used in) provided by operating activities:	$	(9,568	)	$	14,014		$	6,739		$	—		$	11,185
Cash flow from investing activities:
Loans to affiliates	—			(9,568		)	—			9,568			—
Capital expenditures	—			(4,825		)	(10,315		)	—			(15,140		)
Payments for derivative instruments	—						(721		)	—			(721		)
Proceeds from sale of assets	—			458			99			—			557
Net cash provided by (used in)          investing activities	—			(13,935		)	(10,937		)	9,568			(15,304		)
Cash flow from financing activities:
Loans from affiliates	9,568			—			—			(9,568		)	—
Short-term debt, net	—			6,002			5,002			—			11,004
Revolving Facility borrowings	—			27,000			5,000			—			32,000
Revolving Facility reductions	—			(32,000		)	—			—			(32,000		)
Principal payments on long term debt	—			(69		)	—			—			(69		)
Revolver facility refinancing	—			(922		)	—			—			(922		)
Net cash (used in) provided by          financing activities	9,568			11			10,002			(9,568		)	10,013
Net change in cash and    cash equivalents	—			90			5,804			—			5,894
Effect of exchange rate changes    on cash and cash equivalents	—			—			588			—			588
Cash and cash equivalents at    beginning of period	—			646			6,281			—			6,927
Cash and cash equivalents    at end of period	$	—		$	736		$	12,673		$	—		$	13,409

29

PART I (CONT’D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

(Unaudited)

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

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): outlook for 2016 or beyond; operational and financial performance; growth prospects and rates; profitability, cash flow, liquidity and capital resources, production rates, inventory levels and EBITDA; rationalization, product line change, cost and liquidity initiatives; changes in the operating or utilization rates or efficiency in our operations or our competitors' or customers' operations; product quality; diversification, new products, and product improvements; divestitures, asset sales, investments and acquisitions that we may make in the future; possible debt or equity financing or refinancing (including factoring and supply chain financing) activities; customer bankruptcies; conditions and changes in the global financial and credit markets; accounting changes; currency exchange and interest rates and changes therein; changes in production capacity in our operations and our competitors' or customers' operations; 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; the markets we serve and our position in those markets; employment and contributions of key personnel; employee relations and collective bargaining agreements covering many of our operations; tax rates and the effects of jurisdictional mix; capital expenditures and changes therein; nature and timing of restructuring and rationalization charges and payments; inventory and 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; 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.

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(Unaudited)

Our expectations and targets are not predictions 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;

• 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 control or trade sanction laws to which we are subject 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 closure 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;

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(Unaudited)

• 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;

• 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 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 liabilities for our Brazilian subsidiary;

• 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;

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(Unaudited)

• 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;

• 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 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.

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(Unaudited)

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 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 2015 Annual Report on Form 10-K.

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(Unaudited)

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. Our discussions about market data and global economic conditions below are based on or derived from published industry accounts and statistics.

In its July, 2016 report, the International Monetary Fund (IMF) reduced its estimated global growth by 0.1% for both 2016 and 2017 to 3.1% and 3.4%, respectively. This revision was primarily the result of the U.K. vote to exit the European union ("Brexit") as the IMF stated pre-Brexit estimates indicated a 0.1% increase in global growth for 2017. Projections for advanced economies declined 0.1% and 0.2% to 1.8% for both 2016 and 2017. Emerging market and developing economies estimates remained diverse.

In its short range outlook released on April 13, 2016, the World Steel Association (WSA) forecast that global steel demand will decrease by 0.8% percent to 1,488 million tons in 2016 with positive growth of 0.4% returning in 2017. This estimate is significantly lower than the 1,523 million tons WSA forecasted for 2016 in October. WSA noted that the decrease was primarily attributable to China, Brazil and Russia. In developed economies, the WSA expects steel demand to grow by 1.7% in 2016 and 1.1% in 2017.

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PART I (CONT’D)

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(Unaudited)

Results of Operations and Segment Review

Three Months Ended June 30, 2015 (Predecessor) as Compared to the Three Months Ended June 30, 2016 (Successor).

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. Throughout our MD&A, insignificant changes may be deemed not meaningful and are generally excluded from the discussion.

Business Combination Accounting

As a result of business combination accounting resulting from our acquisition by Brookfield (see Note 2 "Preferred Share Issuance and Merger"), the Company's financial statements are separated into two distinct periods, the period before the consummation of the Brookfield transaction (labeled predecessor) and the period after that date (labeled successor), to indicate the application of different basis of accounting between the periods presented.

	Predecessor				Successor
(in thousands)	For the Three Months Ended June 30, 2015				For the Three Months Ended June 30, 2016
Net sales	$	125,809			$	115,365
Cost of sales	111,591				120,266
Lower of cost or market inventory adjustment	—				3,504
Gross profit (loss)	14,218				(8,405		)
Research and development	1,150				786
Selling and administrative expenses	19,709				13,487
Rationalizations	(26		)		(64		)
Operating loss	(6,615		)	—	(22,614		)
Other (income) expense, net	733				(1,198		)
Interest expense	8,796				6,436
Interest income	(268		)		—
Loss from continuing operations before provision for income taxes	(15,876		)		(27,852		)
Provision for income taxes	1,239				(5,591		)
Net loss from continuing operations	(17,115		)		(22,261		)
Loss from discontinued operations, net of tax	(5,702		)		(106,138		)
Net income (loss)	$	(22,817	)		$	(128,399	)

Net sales. Net sales for our Industrial Materials segment decreased from $125.8 million in the three months ended June 30, 2015to $115.4 millionin the three months ended June 30, 2016. Our graphite electrode product line was negatively impacted by a 28% decline in the weighted average selling prices compared to the same period of the prior year. This decline in sales price was partially offset by a 31% increase in sales volumes.

Cost of sales. We experienced increases in cost of sales from $111.6 million in the three months ended June 30, 2015 compared to $120.3 million in the three months ended June 30, 2016. The increase in cost of sales was driven by increased volumes in our graphite electrode business and were partially offset by the decreased variable manufacturing costs resulting from decreased raw materials pricing and increased utilization. Increased utilization was driven primarily by our rationalization initiatives over the last three years and optimization of our graphite electrode plant capacity.

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(Unaudited)

Lower of cost or market inventory adjustment. In the three months ended June 30, 2016, we incurred a lower of cost or market adjustment of $3.5 million in certain product lines within our graphite electrode business reflecting the aforementioned decreased pricing.

Selling and administrative expenses. Selling and administrative expenses have decreased from $19.7 million in the three months ended June 30, 2015 to $13.5 million in the three months ended June 30, 2016. This decrease was primarily driven by headcount reductions resulting from our rationalization initiatives. Additionally, the three months ended June 30, 2015 included $3.3 million of proxy and related costs and $1.0 million of stock based compensation expense.

Research and development expenses. Research and development expenses decreased from $1.2 million in the three months ended June 30, 2015 to $0.8 million in the three months ended June 30, 2016 due primarily to headcount reductions as well as overall cost control measures.

Interest Expense. Interest expense decreased from $8.8 million in the three months ended June 30, 2015 to $6.4 million in the three months ended June 30, 2016 primarily due to the payment of our Senior Subordinated Notes in August 2015.

Loss from Discontinued Operations. Our loss from discontinued operations increased from $(5.7) million in the three months ended June 30, 2015 to $(106.1) million in the three months ended June 30, 2016. This decrease was primarily driven by an impairment charge of $105.6 million to align the value of our assets held for sale with the estimated fair market value as of June 30, 2016. We were also impacted by lower pricing and volumes for our thermal solutions serving our advanced consumer electronics markets.

Segment operating income (loss). The following table represents our operating income (loss) by segment:

	Predecessor			Successor
	For the Three Months Ended June 30, 2015			For the Three Months Ended June 30, 2016
	(Dollars in thousands)
Industrial Materials	$	4,632		$	(16,291	)
Corporate, R&D and Other Expenses	(11,247		)	(6,323		)
Total operating loss	$	(6,615	)	$	(22,614	)

Provision for income taxes. The following table summarizes the expense/(benefit) for income taxes:  

	Predecessor			Successor
	For the Three Months Ended June 30, 2015			For the Three Months Ended June 30, 2016
	(Dollars in thousands)
Tax expense	$	1,239		$	(5,591	)
Pretax loss	(15,876		)	(27,852		)
Effective tax rates	(7.8		)%	20.1		%

For the three months ended June 31, 2016, the effective tax rate differs from the U.S. statutory rate of 35% primarily due to recent losses in foreign jurisdictions where a tax benefit will be recognized, offset by recent losses in the U.S. and Switzerland where we receive no tax benefit due to a full valuation allowance and worldwide earnings from various countries taxed at different rates. The recognition of the valuation allowance does not result in or limit the Company's ability to utilize these tax assets in the future. The provision for income taxes for the three months ended June 30, 2015 differs from the U.S. statutory rate of 35% primarily due to recent losses in the U.S. where we receive no tax benefit due to a full valuation allowance and worldwide earnings from various countries taxed at different rates.

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(Unaudited)

Six Months EndedJune 30, 2015 (Predecessor) as Compared to the Six Months EndedJune 30, 2016 (Successor)

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. Throughout our MD&A, insignificant changes may be deemed not meaningful and are generally excluded from the discussion.

Business Combination Accounting

As a result of business combination accounting resulting from our acquisition by Brookfield (see Note 2 "Preferred Share Issuance and Merger"), the Company's financial statements are separated into two distinct periods, the period before the consummation of the Brookfield transaction (labeled predecessor) and the period after that date (labeled successor), to indicate the application the of different basis of accounting between the periods presented.

	Predecessor			Successor
(in thousands, except % change)	For the Six Months Ended June 30, 2015			For the Six Months Ended June 30, 2016
Net sales	$	288,303		$	210,941
Cost of sales	257,593			217,696
Lower of cost or market inventory adjustment	—			14,625
Gross profit (loss)	30,710			(21,380		)
Research and development	2,667			1,438
Selling and administrative expenses	39,798			27,157
Rationalizations	53			58
Impairments	35,381			—
Operating income (loss)	(47,189		)	(50,033		)
Other expense, net	1,151			(960		)
Interest expense	17,421			12,896
Interest income	(341		)	(12		)
Loss from continuing operations before provision for income taxes	(65,420		)	(61,957		)
Provision for income taxes	1,219			(5,886		)
Net loss from continuing operations	(66,639		)	(56,071		)
Loss from discontinued operations, net of tax	(11,786		)	(108,702		)
Net income (loss)	$	(78,425	)	$	(164,773	)

Net sales. Net sales for our Industrial Materials segment decreased from $288.3 million in the six months endedJune 30, 2015 to $210.9 millionin the six months endedJune 30, 2016. This decrease was driven by softening demand in the steel markets, particularly in EAF environments. This softening demand drove down the weighted average sales price of our graphite electrode products by 25% in the six months ended June 30, 2016, compared to the six months ended June 30, 2015.

Cost of sales. Cost of sales decreased from $257.6 million for the six months endedJune 30, 2015to $217.7 million in the six months endedJune 30, 2016. This decreases was driven primarily by reduced variable manufacturing costs. These reductions have been driven by lower raw material prices, an improved cost structure from our rationalization initiatives and plant optimization. Cost of sales also benefited from an advantageous currency impact of $6.9 million.

Lower of cost or market inventory adjustment. In the six months endedJune 30, 2016, we incurred a lower of cost or market adjustment of $14.6 million in certain product lines within our graphite electrode business reflecting the decreased pricing.

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(Unaudited)

Selling and general administrative. Selling and general administrative expenses decreased from $39.8 million in the six months endedJune 30, 2015 compared to $27.2 million in the three months ended June 30, 2016 driven primarily by cost reduction initiatives and headcount reductions. Additionally, 2015 selling and general administrative expenses included $5.0 million of proxy and related costs and $2.5 million of stock based compensation expense.

Impairments. During the first quarter of 2015, we recorded a $35.4 million goodwill impairment charge in our needle coke reporting unit resulting from price declines that were to take effect in the second quarter of 2015 as a result of overcapacity in the industry.

Interest Expense. Interest expense decreased from $17.4 million in the six months endedJune 30, 2015 to $12.9 million in six months endedJune 30, 2016 primarily due to the repayment of our Senior Subordinated Notes in August 2015.

Loss from Discontinued Operations. Our loss from discontinued operations increased from $(11.8) million to $(108.7) million. This decrease was driven by in impairment charge of $105.6 million to align the value of our assets held for sale with the estimated fair market value as of June 30, 2016.

Segment operating income (loss). The results discussed above are reflected in our operating income (loss) by segment as follows: 

	Predecessor			Successor
	For the Six Months Ended June 30, 2015			For the Six Months Ended June 30, 2016
	(Dollars in thousands)
Industrial Materials	$	(22,312	)	$	(36,538	)
Corporate, R&D and Other Expenses	(24,877		)	(13,495		)
Total operating loss	$	(47,189	)	$	(50,033	)

Provision for income taxes. The following table summarizes the expense/(benefit) for income taxes:  

	Predecessor			Successor
	For the Six Months Ended June 30, 2015			For the Six Months Ended June 30, 2016
	(Dollars in thousands)
Tax expense	$	1,219		$	(5,886	)
Pretax loss	(65,420		)	(61,957		)
Effective tax rates	(1.9		)%	9.5		%

For the six months ended June 31, 2016, the effective tax rate differs from the U.S. statutory rate of 35% primarily due to recent losses in foreign jurisdictions where a tax benefit will be recognized, offset by recent losses in the U.S. and Switzerland where we receive no tax benefit due to a full valuation allowance and worldwide earnings from various countries tax at different rates. The recognition of the valuation allowance does not result in or limit the Company's ability to utilize these tax assets in the future. The provision for income taxes for the six months ended June 30, 2015 differs from the U.S. statutory rate of 35% primarily due to recent losses in the U.S. where we receive no tax benefit due to a full valuation allowance and worldwide earnings from various countries taxed at different rates.

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.

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(Unaudited)

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 six months ended June 30, 2016 was an decrease of $1.0 million compared to the same period of 2015. The impact of the exchange rate changes on cost of sales of Industrial Materials for the six months ended June 30, 2016 was a decrease of $6.9 million compared to the same period of 2015.

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 $1.1 million in the six months ended June 30, 2015 compared to a loss of $1.1 million in the six months ended June 30, 2016.

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”.

Liquidity and Capital Resources

We believe that we have adequate liquidity to meet our needs. As of June 30, 2016, we had cash and cash equivalents of $13.4 million, long-term debt of $364.0 million, short-term debt of $16.5 million and stockholder’s equity of $657 million.

On April 27, 2016, GrafTech and certain of its subsidiaries entered into an amendment to the Revolving Facility. As a result of the amendment, the size of the Revolving Facility was permanently reduced from $375 million to $225 million. New covenants were also added to the Revolving Facility, including a requirement to make mandatory repayments of outstanding amounts under the Revolving Facility and the Term Loan Facility with the proceeds of any sale of all or any substantial part of the assets included in the Engineered Solutions segment and a requirement to maintain minimum liquidity (consisting of cash, cash equivalents and availability under the Revolving Facility) in excess of $25 million. The covenants were also modified to provide for: the elimination of certain exceptions to the Company’s negative covenants limiting the Company’s ability to make certain investments, sell assets, make restricted payments, incur liens and incur debt; a restriction on the amount of cash and cash equivalents permitted to be held on the balance sheet at any one time without paying down the Revolving Facility; and changes to the Company’s financial covenants so that, until the earlier of March 31, 2019 or the Company has $75 million in trailing twelve month EBITDA, the Company is required to maintain trailing twelve month EBITDA above certain minimums ranging from ($40 million) to $35 million after which the Company’s existing financial covenants under the Revolving Facility will apply.

With this amendment, the Company has full access to the $225 million Revolving Facility, subject to the $25 million minimum liquidity requirement. As of June 30, 2016, the Company had $72.0 million of borrowings on the Revolving Facility and $13.5 million of letters of credit drawn against the Revolving Facility. In addition to the Revolving Facility, the Company has $37.0 million outstanding on its Term Loan Facility.

We use cash flow from operations 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. The Revolving Facility and the Term Loan Facility both mature in April 2019. Under the Revolving Facility, we have additional flexibility for investments, capital expenditures and acquisitions and we can issue letters of credit under the Revolving Facility in an amount not to exceed $35 million.

The interest rate applicable to the Revolving Facility and the Term Loan Facility is LIBOR plus a margin ranging from 2.25% to 4.75% (depending on our total senior secured leverage ratio). The borrowers pay a per annum fee ranging from 0.35% to 0.70% (depending on our senior secured leverage ratio) on the undrawn portion of the commitments under the Revolving Facility.

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(Unaudited)

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.

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.

As of December 31, 2015 and June 30, 2016, approximately 71% of our debt consisted of fixed rate or zero interest rate obligations.

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 and other factors.

The Company has access to a $225 million Revolving Facility (subject to a $25 million minimum liquidity requirement). As of June 30, 2016, the Company had $72.0 million of borrowings and $13.5 million of letters of credit, for a total of $85.5 million drawn against the Revolving Facility.

Potential uses of our liquidity include capital expenditures, acquisitions, debt repayments 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.

In the event that operating cash flows fail to provide sufficient liquidity to meet our business needs, including capital expenditures, any such shortfall would need to be made up by increased borrowings under our Revolving Facility, to the extent available. We have begun to look at strategic alternatives for our Engineered Solutions businesses that could result in the sale of one or more of such businesses. Cash proceeds from such sales would be used to repay borrowings outstanding under the Term Loan Facility and Revolving Facility. We cannot assure you that we will, or will be able to, consummate any such sales on acceptable terms or at all or as to the price, terms or conditions of any such sales. 

As of June 30, 2016, we were in compliance with all financial and other covenants contained in the Revolving Facility, as applicable.

In order to seek to minimize our credit risks, we may 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 had positive cash flow from operating activities during 2012, 2013, 2014, 2015 and through June 30, 2016. Although the global economic environment experienced significant swings in these periods, our working capital

41

PART I (CONT’D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

(Unaudited)

management and cost-control initiatives allowed us to remain operating cash flow positive in both times of declining and improving operating results.

Related Party Transactions. We have not engaged in or been a party to any other material transactions with affiliates or related parties except for reimbursement of certain costs incurred by Brookfield as required under the Investment Agreement, transactions with our current or former subsidiaries, compensatory transactions with directors and officers including employee benefits (including reimbursement to Brookfield for compensation costs incurred by it for certain personnel who devote substantially all of their working time to us), stock option and restricted stock grants, compensation deferral, stock purchases, and customary indemnification and expense advancement arrangements.

Cash Flows.

The following table summarizes our cash flow activities:

	Predecessor			Successor
	For the Six Months Ended June 30, 2015			For the Six Months Ended June 30, 2016
	(Dollars in millions)
Cash flow provided by (used in):
Operating activities	$	24.2		$	11.2
Investing activities	$	(32.8	)	$	(15.3	)
Financing activities	$	6.8		$	10.0

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.

During the six months ended June 30, 2015, changes in working capital resulted in a net source of funds of $30.4 million which was impacted by:

• net cash inflows in accounts receivable of $34.9 million from the decrease in accounts receivable due to the timing and collection of customer sales and collections;

• the change in inventories of $3.3 million due primarily to reduced volumes on hand;

• net cash outflows from decreases in accounts payable and accruals of $11.8 million, due primarily to changes in tax accruals and payables; and

• a decrease in rationalization accruals of $2.2 million, due primarily to severance payments.

Other uses of cash in the six months ended June 30, 2015 included contributions to pension and other benefit plans of $10.6 million.

42

PART I (CONT’D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

(Unaudited)

During the six months endedJune 30, 2016, changes in working capital resulted in a net source of funds of $24.5 million which was impacted by:

• net cash inflows in accounts receivable of $5.2 million from the decrease in accounts receivable due to the collection of customer sales;

• net cash inflows from decreases in inventory of $17.1 million, due primarily to inventory management initiatives;

• net cash outflows from increased prepaid expense of $2.6 million due to value added tax payments;

• net cash inflows due to increase in accounts payable and accruals of $6.8 million primarily resulting from timing of payments.

Other uses of cash in the six months ended June 30, 2016 included contributions to pension and other benefit plans of $5.2 million.

Investing Activities

Net cash used in investing activities was $32.8 million during the six months ended June 30, 2015 and included capital expenditures of $25.6 million and $7.8 million related to cash settlements of derivative instruments.

Net cash used in investing activities was $15.3 million during the six months endedJune 30, 2016 and included capital expenditures of $15.1 million and $0.7 million related to cash settlements of derivative instruments.

Financing Activities

Net cash inflow from financing activities was $6.8 million during the six months ended June 30, 2015. Net borrowings under our Revolving Facility and short term debt agreements resulted in a source of cash of $12.5 million, and were offset by $2.7 million of cash paid for refinancing fees and $2.7 million of cash paid for issuance costs related to the $150 million of preferred stock.

Net cash inflow from financing activities was $10.0 million during the six months endedJune 30, 2016, resulting from net borrowings under our Revolving Facility.

Restrictions on Dividends and Stock Repurchases

It has generally been the policy of our Board of Directors to retain earnings to finance strategic and other plans and programs, conduct business operations, fund acquisitions, meet obligations and repay debt. We did not pay any cash dividends in 2013, 2014 or 2015. We periodically review our dividend policy.  We amended our Credit Facility on April 27, 2016 and, under the terms of the amendment, we are restricted from paying dividends.

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.

43

PART I (CONT’D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

(Unaudited)

Description of Our Financing Structure

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

44

PART I (CONT’D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

(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, 2015 represented no unrealized gain or loss. The net unrealized loss as of June 30, 2016 was $0.2 million .

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. We had no outstanding commodity derivative contracts as of June 30, 2016.

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 June 30, 2016, 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 $1.1 million or a corresponding increase of $1.1 million, respectively, in the fair value of the foreign currency 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 June 30, 2016. A hypothetical increase in interest rates of 100 basis points (1%)would have increased our interest expense by $0.3 million for the six months endedJune 30, 2016.

45

PART I (CONT’D)

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

(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 June 30, 2016. 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 June 30, 2016.

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 June 30, 2016 that materially affected or are reasonably likely to materially affect our internal controls over financial reporting.

46

PART II. OTHER INFORMATION

GRAFTECH INTERNATIONAL LTD. AND SUBSIDIARIES

Item 1. Legal Proceedings

Additional information required by this Item is set forth in Note 10, “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.

As a result of the June 23, 2016 referendum by British voters to exit the European Union, global markets and foreign currencies have been adversely impacted. In particular, the value of the Pound Sterling has sharply declined as compared to the U.S. Dollar and other currencies. This volatility in foreign currencies is expected to continue as the U.K. negotiates and executes its exit from the European Union but it is uncertain over what time period this will occur. A significantly weaker Pound Sterling compared to the U.S. Dollar could have a significant negative effect on the Company’s business, financial condition and results of operations.

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

Not Applicable.

Item 3. Defaults Upon Senior Securities

Not Applicable.

Item 4. Mine Safety Disclosures

Not Applicable.

Item 5. Other Information.

Not Applicable

47

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
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 Quinn J Coburn, 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 Quinn J Coburn, 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

48

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:	July 28, 2016	By:	/s/ Quinn J Coburn
			Quinn J Coburn
			Vice President and Chief Financial Officer (Principal Financial Officer)

49

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)
	July 28, 2016

EX-31.2

EXHIBIT 31.2.0

CERTIFICATION

I, Quinn J. Coburn, 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/ Quinn J. Coburn
	Quinn J. Coburn Vice President, and Chief Financial Officer (Principal Accounting Officer)
	July 28, 2016

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 period ended June 30, 2016, 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)
	July 28, 2016

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 period ended June 30, 2016, 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, Quinn J. Coburn, Vice President and Interim 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/ Quinn J. Coburn
	Quinn J. Coburn Vice President, and Chief Financial Officer (Principal Accounting Officer)
	July 28, 2016

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Jul. 15, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Entity Current Reporting Status	Yes
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
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		100

XML

Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 13,409,000	$ 6,927,000
Inventories	187,240,000	218,130,000
Current assets of discontinued operations	92,873,000	98,281,000
Total current assets	397,615,000	426,885,000
Net property, plant and equipment	537,298,000	551,163,000
Deferred income taxes	18,476,000	15,326,000
Goodwill	171,117,000	172,059,000
Other assets	147,767,000	152,613,000
Long-term assets of discontinued operations		103,975,000
Total assets	1,272,273,000	1,422,021,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	45,233,000	40,147,000
Short-term debt	16,482,000	4,772,000
Accrued income and other taxes	5,562,000	5,933,000
Rationalizations	401,000	1,195,000
Other accrued liabilities	25,063,000	20,994,000
Short-term liabilities of discontinued operations	19,315,000	23,082,000
Total current liabilities	112,056,000	96,123,000
Long-term debt	363,975,000	362,455,000
Other long-term obligations	91,177,000	94,318,000
Deferred income taxes	47,609,000	57,430,000
Stockholders’ equity:
Total stockholders’ equity	657,456,000	810,528,000
Total liabilities and stockholders’ equity	1,272,273,000	1,422,021,000
Successor
ASSETS
Cash and cash equivalents	13,409,000	6,927,000
Accounts and notes receivable, net of allowance for doubtful accounts of $300 as of December 31, 2015 and $412 as of June 30, 2016	80,459,000	82,390,000
Inventories	187,240,000	218,130,000
Prepaid expenses and other current assets	23,634,000	21,157,000
Current assets of discontinued operations	92,873,000	98,281,000
Total current assets	397,615,000	426,885,000
Property, plant and equipment	585,504,000	571,329,000
Less: accumulated depreciation	48,206,000	20,166,000
Net property, plant and equipment	537,298,000	551,163,000
Deferred income taxes	18,476,000	15,326,000
Goodwill	171,117,000	172,059,000
Other assets	147,767,000	152,613,000
Long-term assets of discontinued operations	0	103,975,000
Total assets	1,272,273,000	1,422,021,000
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	45,233,000	40,147,000
Short-term debt	16,482,000	4,772,000
Accrued income and other taxes	5,562,000	5,933,000
Rationalizations	401,000	1,195,000
Other accrued liabilities	25,063,000	20,994,000
Short-term liabilities of discontinued operations	19,315,000	23,082,000
Total current liabilities	112,056,000	96,123,000
Long-term debt	363,975,000	362,455,000
Other long-term obligations	91,177,000	94,318,000
Deferred income taxes	47,609,000	57,430,000
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent	0	1,167,000
Contingencies – Note 10	0
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, 100 shares issued as of December 31, 2015 and June 30, 2016	0	0
Additional paid-in capital	854,337,000	854,337,000
Accumulated other comprehensive (loss) income	1,446,000	(10,255,000)
Accumulated deficit	(198,327,000)	(33,554,000)
Total stockholders’ equity	657,456,000	810,528,000
Total liabilities and stockholders’ equity	$ 1,272,273,000	$ 1,422,021,000

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Predecessor
Accounts and notes receivable, net of allowance for doubtful accounts		$ 300
Preferred stock, par value		$ 0.01
Preferred stock, shares authorized		100,000,000
Preferred stock, shares issued		0
Common stock, par value		$ 0.01
Common stock, shares authorized		225,000,000
Common stock, shares issued		100
Successor
Accounts and notes receivable, net of allowance for doubtful accounts	$ 412
Preferred stock, par value	$ 0.01
Preferred stock, shares authorized	100,000,000
Preferred stock, shares issued	0
Common stock, par value	$ 0.01
Common stock, shares authorized	225,000,000
Common stock, shares issued	100

XML

Consolidated Statements Of Operations And Comprehensive Loss - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Loss from continuing operations before provision for income taxes					$ (65,420)
Predecessor
Net sales			$ 125,809		288,303
Cost of sales			111,591		257,593
Lower of cost or market inventory adjustment			0		0
Gross profit			14,218		30,710
Research and development			1,150		2,667
Selling and administrative expenses			19,709		39,798
Rationalizations			26		(53)
Impairments			0		35,381
Operating loss			(6,615)		(47,189)
Other expense (income), net			733		1,151
Interest expense			8,796		17,421
Interest income			(268)		(341)
Loss from continuing operations before provision for income taxes			(15,876)		(65,420)
Provision for income taxes			1,239		1,219
Net loss from continuing operations			(17,115)		(66,639)
Loss from discontinued operations, net of tax	[1]		(5,702)		(11,786)
Net loss			(22,817)		(78,425)
Other comprehensive income:
Net loss			(22,817)		(78,425)
Foreign currency translation adjustments			7,515		(22,096)
Commodities and foreign currency derivatives and other, net of tax of ($154) and $0, respectively			42		887
Other comprehensive (loss) income, net of tax			7,557		(21,209)
Comprehensive (loss) income			(15,260)		(99,634)
Successor
Net sales		$ 115,365		$ 210,941
Cost of sales		120,266		217,696
Lower of cost or market inventory adjustment		3,504		14,625
Gross profit		(8,405)		(21,380)
Research and development		786		1,438
Selling and administrative expenses		13,487		27,157
Rationalizations		64		(58)
Impairments		0		0
Operating loss		(22,614)		(50,033)
Other expense (income), net		(1,198)		(960)
Interest expense		6,436		12,896
Interest income		0		(12)
Loss from continuing operations before provision for income taxes		(27,852)		(61,957)
Provision for income taxes		(5,591)		(5,886)
Net loss from continuing operations		(22,261)		(56,071)
Loss from discontinued operations, net of tax	[1]	(106,138)		(108,702)
Net loss		(128,399)		(164,773)
Other comprehensive income:
Net loss		(128,399)		(164,773)
Foreign currency translation adjustments		(830)		11,674
Commodities and foreign currency derivatives and other, net of tax of ($154) and $0, respectively		(106)		27
Other comprehensive (loss) income, net of tax		(936)		11,701
Comprehensive (loss) income		(129,335)		(153,072)
Engineered Solutions [Member] | Discontinued Operations, Held-for-sale [Member]
Other comprehensive income:
Impairment		$ 105,600	$ 0	$ 105,600	$ 0

[1] Loss on discontinued operations includes a pretax impairment charge of $105,600 in the three and six months ended June 30, 2016. See Note 3 "Discontinued Operations and Related Assets Held for Sale"

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Consolidated Statements Of Operations And Comprehensive Loss (Parenthetical) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Predecessor
Commodities and foreign currency derivatives, net of tax of		$ (154)
Successor
Commodities and foreign currency derivatives, net of tax of	$ 0

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Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flow from financing activities:
Cash and cash equivalents at beginning of period	$ 6,927
Cash and cash equivalents at end of period	13,409
Predecessor
Cash flow from operating activities:
Net loss		$ (78,425)
Adjustments to reconcile net loss to cash provided by operations:
Depreciation and amortization		39,384
Impairments		35,381
Lower of cost or market inventory adjustment, net of depreciation		0
Deferred income tax provision		(4,947)
Post-retirement and pension plan changes		2,252
Stock-based compensation		2,628
Interest expense		7,699
Other charges, net		(1,321)
Net change in working capital		30,395
Increase in long-term assets and liabilities		(8,826)
Net cash provided by operating activities		24,220
Cash flow from investing activities:
Capital expenditures		(25,620)
Proceeds from the sale of assets		638
Derivative instrument settlements, net		(7,804)
Net cash used in investing activities		(32,786)
Cash flow from financing activities:
Short-term debt, net		4,506
Revolving Facility borrowings		74,000
Revolving Facility reductions		(66,000)
Principal payments on long-term debt		(67)
Revolving Facility refinancing fees		(2,722)
Other		(2,850)
Net cash provided by financing activities		6,804
Net change in cash and cash equivalents		(1,762)
Effect of exchange rate changes on cash and cash equivalents		(1,283)
Cash and cash equivalents at beginning of period		17,550
Cash and cash equivalents at end of period		14,505
Change in current assets:
Accounts and notes receivable, net		34,858
Inventories		3,274
Prepaid expenses and other current assets		6,238
Change in accounts payable and accruals		(11,806)
Rationalizations		(2,183)
Increase in interest payable		14
Net change in working capital		$ 30,395
Successor
Cash flow from operating activities:
Net loss	(164,773)
Adjustments to reconcile net loss to cash provided by operations:
Depreciation and amortization	43,228
Impairments	105,600
Lower of cost or market inventory adjustment, net of depreciation	12,758
Deferred income tax provision	(9,091)
Post-retirement and pension plan changes	2,102
Stock-based compensation	0
Interest expense	3,203
Other charges, net	(2,646)
Net change in working capital	24,506
Increase in long-term assets and liabilities	(3,702)
Net cash provided by operating activities	11,185
Cash flow from investing activities:
Capital expenditures	(15,140)
Proceeds from the sale of assets	557
Derivative instrument settlements, net	(721)
Net cash used in investing activities	(15,304)
Cash flow from financing activities:
Short-term debt, net	11,004
Revolving Facility borrowings	32,000
Revolving Facility reductions	(32,000)
Principal payments on long-term debt	(69)
Revolving Facility refinancing fees	(922)
Other	0
Net cash provided by financing activities	10,013
Net change in cash and cash equivalents	5,894
Effect of exchange rate changes on cash and cash equivalents	588
Cash and cash equivalents at beginning of period	6,927
Cash and cash equivalents at end of period	13,409
Change in current assets:
Accounts and notes receivable, net	5,211
Inventories	17,122
Prepaid expenses and other current assets	(2,580)
Change in accounts payable and accruals	6,840
Rationalizations	(2,137)
Increase in interest payable	50
Net change in working capital	$ 24,506

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Organization And Summary Of Significant Accounting Policies

6 Months Ended

Jun. 30, 2016

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.

On February 26, 2016, the Company announced it plans to realign its two business segments. Industrial Materials will now be comprised of graphite electrodes and needle coke products. Engineered Solutions will now be comprised of advanced graphite materials, advanced composite materials, advanced electronic technologies, and refractory products. Refractory products was previously included in the Industrial Materials business segment. Advanced materials products will now be a part of the business segment where these products are produced.

This realignment of the business segments will allow the Company to better direct its resources and simplify its operations. The Industrial Materials business segment will continue to focus on being the lowest cost producer providing the best quality of graphite electrodes in a very challenging market. The Engineered Solutions business segment will continue to leverage the intellectual property of carbon and graphite material science to innovate and commercialize advanced technologies and new products in high growth markets.

The Company also announced that it plans to review strategic alternatives for its Engineered Solutions business segment. This process is currently under way. See Note 3 "Discontinued Operations and Assets Held for Sale" for further information.

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, 2015 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, 2015 (the “Annual Report”) but does not include all disclosures required by GAAP in audited financial statements. 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 periods 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. Predecessor and Successor Reporting

On August 17, 2015, the Company was acquired by affiliates of Brookfield Asset Management Inc. (see Note 2 "Preferred Share Issuance and Merger"). We elected to account for the acquisition under the acquisition method of accounting. Under the acquisition method of accounting, the assets and liabilities of GTI were adjusted to their fair market value as of August 15, 2015, the day that Brookfield effectively took control of the Company.

Our consolidated statements of operations subsequent to the acquisition include amortization expense relating to the fair value adjustments and depreciation expense based on the fair value of the Company's property, plant and equipment that had previously been carried at historical cost less accumulated depreciation. Therefore, the Company's financial information prior to the acquisition is not comparable to the financial information subsequent to the Merger. As a result, the financial statements and certain note presentations are separated into two distinct periods, the period before the consummation of the acquisition (labeled "Predecessor") and the period after the date of acquisition (labeled "Successor"), to indicate the application of the different basis of accounting between the periods presented.

D. New Accounting Standards

In May 2014, the 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 was expected to be effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. On July 9, 2015, the FASB deferred the effective date to fiscal years beginning after December 15, 2017. 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.

In April 2015, the FASB issued ASU 2015-3, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015 with early adoption permitted. We had no capitalized debt issuance costs as of December 31, 2015. We adopted this ASU as of January 1, 2016, and adoption resulted in no significant impact on the Company's financial position, results of operations or cash flows.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Under this new guidance, a company will now recognize most leases on its balance sheet as lease liabilities with corresponding right-of-use assets. This ASU is effective for us beginning after January 1, 2019. The Company is currently evaluating the impact of the adoption of this standard on its financial position, results of operations or cash flows.

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Preferred Share Issuance and Merger (Notes)

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Mergers, Acquisitions and Dispositions Disclosures [Text Block]

(2) Preferred Share Issuance and Merger

Preferred Stock

On August 11, 2015, the Company issued and sold to BCP IV GrafTech Holdings LP ("BCP"), an affiliate of Brookfield Asset Management Inc. (“Brookfield”) (i) 136,616 shares of a new Series A Convertible Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”), convertible into 19.9% of the shares of common stock of the Company outstanding immediately prior to such issuance and (ii) 13,384 shares of a new Series B Convertible Preferred Stock, par value $0.01 per share (the “Series B Preferred Stock,” and, together with the Series A Preferred Stock, the “Preferred Stock”), for an aggregate purchase price of $150,000,000 in cash (the “Purchase Price”), under the Investment Agreement dated May 4, 2015 (the “Investment Agreement”) between the Company and Brookfield.

The closing of such issuance and sale occurred after the satisfaction of the closing conditions set forth in the Investment Agreement.

Pursuant to the Investment Agreement, the Company reimbursed Brookfield for $500,000 of out-of-pocket fees and expenses (including fees and expenses of legal counsel) incurred by Brookfield in connection with the transaction.

The proceeds from the issuance and sale were used by the Company, along with funds available under the Company’s $40 million delayed draw term loan facility, senior revolving credit facility and cash on hand, to prepay the Company’s $200 million Senior Subordinated Notes due November 30, 2015.

Merger Agreement

On May 18, 2015, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), dated May 17, 2015, with BCP and Athena Acquisition Subsidiary Inc. a wholly owned subsidiary of BCP (“Acquisition Sub”). Pursuant to the Merger Agreement, on May 26, 2015, BCP commenced a cash tender offer to purchase any and all of the outstanding shares of common stock, par value $0.01 per share (the “Shares”), of the Company, at a purchase price of $5.05 per Share in cash (the “Offer Price”), on the terms and subject to the conditions set forth in the Offer to Purchase, dated May 26, 2015 (together with any amendments and supplements thereto, the “Offer to Purchase”) and in the related Letter of Transmittal (the “Letter of Transmittal” and, together with the Offer to Purchase, the “Offer”).

On August 14, 2015, Acquisition Sub accepted for payment all Shares validly tendered in the Offer and not withdrawn prior to the expiration of the Offer, and payment of the Offer Price for such Shares was made promptly. On August 17, 2015, Acquisition Sub merged with and into the Company, with the Company surviving as a wholly-owned subsidiary of BCP (the "Merger").

Pursuant to the Merger Agreement, upon consummation of the Merger, each Share that was not tendered and accepted pursuant to the Offer (other than canceled shares, dissenting shares and shares held by the Company’s subsidiaries or BCP’s subsidiaries (other than Acquisition Sub)) was canceled and converted into cash consideration in an amount equal to the Offer Price.

Business Combination

The computation of the fair value of the total consideration at the date of acquisition follows:

Purchase Consideration
(In thousands except share price)
	# Shares	Unit Price		Amount
Convertible Preferred Equity
Series A and B	150	$	1,000.00	$	150,000
Common Equity
Common Shares	139,397	$	5.05	$	703,955
Net value of options				$	382
Total				$	854,337

Recording of assets acquired and liabilities assumed: The acquisition was accounted for using the acquisition method of accounting. Under the acquisition method, the identifiable assets acquired and the liabilities assumed are assigned a new basis of accounting reflecting their estimated fair values. The information included herein has been prepared based on the allocation of purchase price using estimates of the fair values and useful lives of assets acquired and liabilities assumed based on the best available information determined with the assistance of independent valuations, quoted market prices and management estimates.

The following table summarizes the fair values of the identifiable assets acquired and liabilities assumed at the acquisition date:

Net identifiable assets acquired
	Cash	$	25,032
	Accounts receivable	94,298
	Inventories	344,765
	Property, plant and equipment	650,405
	Intangible assets	155,700
	Deferred tax assets	41,606
	Prepaid and other current assets	49,716
	Other non-current assets	8,428
	Accounts payable	(68,005		)
	Short-term debt	(18,779		)
	Other accrued liabilities	(53,252		)
	Long-term debt	(367,811		)
	Other long-term liabilities	(101,648		)
	Deferred tax liabilities	(79,235		)
Net identifiable assets acquired		$	681,220
Goodwill		$	173,117
Net assets acquired		$	854,337

Goodwill: Goodwill of approximately $173.1 million was recognized for the acquisition and is calculated as the excess of the consideration transferred over the net assets acquired and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Goodwill was increased by $1.1 million in March 2016, as a result of a decreased inventory valuation of $2.0 million offset by an increase to deferred tax assets of $0.9 million.

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Discontinued Operations and Related Assets Held for Sale

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations and Related Assets Held for Sale

On February 26, 2016, the Company announced that it had initiated a strategic review of its Engineered Solutions business segment to better direct its resources and simplify its operations. Any potential sale of assets was prohibited by the Revolving Facility without approval of the requisite lenders thereunder. On April 27, 2016, GrafTech and certain of its subsidiaries entered into an amendment to the Revolving Facility (see Note 8 "Debt and Liquidity") which, among other things, permits the sale of assets with the restriction that the proceeds be utilized to pay down revolver borrowings. As of June 30, 2016, the Engineered Solutions segment qualified for reporting as discontinued operations. We anticipate this intiative to be completed within the next 12 months, and as such, the assets and liabilities have all been classified as current.

We evaluated the fair value of the Engineered Solutions business segment utilizing the market approach (Level 3 measure). As a result, we incurred an impairment charge to our Engineered Solutions business segment of $105.6 million to align the carrying value with estimated fair value as of June 30, 2016. The impairment charge is based upon Management’s best estimate of fair value less cost of disposal for the ES business. The estimate reflects Management’s view of the manner in which the Engineered Solutions business will be divested, including  assumptions as to if and how it will be split, given the lines of business and asset groups that constitute the Engineered Solutions segment. Amongst other things, the split into groups influences the computation of the impairment charge.The impairment charge and resulting loss in the three months ended June 30, 2016 is not offset by expected gains on certain group(s), and as a result may or may not later be partially offset through gains depending on the outcome of the divestiture. These assumptions and estimates are subject to change until divestiture is completed and may be adjusted in the quarter that the information becomes available.

The following tables summarize the results of the Engineered Solutions business segment, reclassified as discontinued operations for the three and six months ended June 30, 2015 and 2016.

	For the Three Months Ended  June 30, 2015			For the Three Months Ended June 30, 2016
	(dollars in thousands)
Net sales	$	39,313		$	29,930
Cost of sales	37,591			24,569
Gross profit	1,722			5,361
Research and development	764			813
Selling and administrative expenses	5,544			5,314
Rationalizations	1,794			(255		)
Impairment	—			105,600
Operating loss	(6,380		)	(106,111		)
Other expense (income)	(37		)	(81		)
Interest expense	399			951
Loss from discontinued operations before income taxes	(6,742		)	(106,981		)
Benefit from income taxes on discontinued operations	1,040			843
Loss from discontinued operations	$	(5,702	)	$	(106,138	)

	For the Six Months Ended June 30, 2015			For the Six Months Ended June 30, 2016
	(dollars in thousands)
Net sales	$	84,030		$	59,019
Cost of sales	78,037			50,554
Gross profit	5,993			8,465
Research and development	1,679			1,691
Selling and administrative expenses	11,745			9,760
Rationalizations	4,210			(246		)
Impairment	—			105,600
Operating loss	(11,641		)	(108,340		)
Other expense (income)	(64		)	(72		)
Interest expense	695			1,670
Loss from discontinued operations before income taxes	(12,272		)	(109,938		)
Benefit from income taxes on discontinued operations	486			1,236
Loss from discontinued operations	$	(11,786	)	$	(108,702	)

The significant components of our Statements of Cash Flows for the Engineered Solutions business segment held for sale are as follows:

	For the Six Months Ended June 30, 2015			For the Six Months Ended June 30, 2016
	(dollars in thousands)
Depreciation and amortization	$	7,330		$	3,052
Impairment	—			105,600
Deferred income taxes	(486		)	(1,236		)
Capital expenditures	9,413			2,513

The following table summarizes the carrying value of the assets and liabilities of discontinued operations as of December 31, 2015 and June 30, 2016.

	As of December 31, 2015		As of June 30, 2016
	(dollars in thousands)
Current assets of discontinued operations:
Accounts receivable	$	20,425	$	19,030
Inventories	77,332		77,656
Prepaid expenses and other current assets	524		924
Total current assets of discontinued operations	98,281		97,610
Net property plant and equipment	86,369		86,595
Other assets	17,606		14,268
Total long-term assets of discontinued operations	103,975		100,863
Impairment upon reclassification to held for sale	—		(105,600		)
Total assets of discontinued operations	$	202,256	$	92,873
Liabilities of discontinued operations:
Accounts payable	$	9,331	$	6,499
Accrued income and other taxes	3,113		2,500
Other accrued liabilities	10,638		9,336
Total current liabilities of discontinued operations	23,082		18,335
Other long-term obligations	1,167		980
Total liabilities of discontinued operations	$	24,249	$	19,315

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Rationalizations

6 Months Ended

Jun. 30, 2016

Restructuring and Related Activities [Abstract]

Rationalizations

Rationalizations

Throughout 2013, 2014 and 2015 the Company undertook rationalization plans in order to streamline its organization and lower its production costs. The majority of these initiatives were substantially complete as of June 30, 2016. The rationalization liability as of June 30, 2016 was $1.0 million consisting of the plan described below and severance payouts related to prior rationalization plans. In June of 2016, we further impaired assets related to our South African facility by $0.6 million to reflect a decline in market value.

2015 Advanced Graphite Materials Rationalization

On March 2, 2015, GrafTech announced plans to further optimize the production platform for its advanced graphite materials business. These actions included the closure of our Notre Dame, France facility and further reductions in force in our Columbia, Tennessee facility and other locations totaling approximately 85 people. The 2015 Advanced Graphite Materials rationalization plan will result in approximately $10 million of charges consisting of severance, inventory losses and other related costs. Approximately $8 million of these costs will be cash outlays, the majority of which were disbursed in 2015. We incurred charges of $3.2 million and $5.8 million in the three months and six months ended June 30, 2015. We incurred insignificant charges for this plan during the three and six months ended June 30,2016. The remaining liability associated with this plan is $0.6 million as of June 30,2016.

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Segment Reporting

6 Months Ended

Jun. 30, 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. During the second quarter of 2016, our Engineered Solutions segment qualified as held for sale status and as such our Engineered Solution's results have been excluded from continuing operations. See Note 3 "Discontinued Operations and Assets Held for Sale" for significant components of the results of our Engineered Solutions segment.

The following tables summarize financial information concerning our reportable segments and all prior periods have been recast to reflect our new segmentation:

	Predecessor			Successor			Predecessor			Successor
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2016			2015			2016
	(Dollars in thousands)						(Dollars in thousands)
Net sales to external customers:
Industrial Materials	$	125,809		$	115,365		$	288,303		$	210,941
Operating (loss) income:
Industrial Materials	$	4,632		$	(16,291	)	$	(22,312	)	$	(36,538	)
Corporate, R&D and Other expenses	(11,247		)	(6,323		)	(24,877		)	(13,495		)
Total operating loss	$	(6,615	)	$	(22,614	)	$	(47,189	)	$	(50,033	)
Reconciliation of segment operating loss to     loss before provision for income taxes
Other expense (income), net	$	733		$	(1,198	)	$	1,151		$	(960	)
Interest expense	8,796			6,436			17,421			12,896
Interest income	(268		)	—			(341		)	(12		)
Loss from continuing operations before    provision for income taxes	$	(15,876	)	$	(27,852	)	$	(65,420	)	$	(61,957	)

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Benefit Plans

6 Months Ended

Jun. 30, 2016

Compensation and Retirement Disclosure [Abstract]

Benefit Plans

Benefit Plans

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

	Predecessor			Successor			Predecessor			Successor
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2016			2015			2016
	(Dollars in thousands)						(Dollars in thousands)
Service cost	$	506		$	508		$	1,333		$	1,016
Interest cost	1,526			1,498			3,052			2,996
Expected return on plan assets	(1,354		)	(1,310		)	(2,708		)	(2,620		)
Amortization of prior service cost	1			—			2			—
Net cost	$	679		$	696		$	1,679		$	1,392

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

	Predecessor			Successor		Predecessor			Successor
	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2015			2016		2015			2016
	(Dollars in thousands)					(Dollars in thousands)
Service cost	$	4		$	1	$	8		$	2
Interest cost	315			272		630			543
Amortization of prior service cost	(43		)	—		(86		)	—
Net cost	$	276		$	273	$	552		$	545

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Goodwill And Other Intangible Assets

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [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 (for example, graphite electrodes, needle coke, etc.) 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.

We received notice in March, 2015 that the market prices for needle coke were decreasing by an additional 18%, effective for the second quarter of 2015. This decline further compressed our margins for needle coke products versus our annual plan. We determined that this change, which was driven by overcapacity in the market, indicated that the needle coke industry is facing a deeper and longer trough than previously expected. We considered the additional price change as a triggering event and tested our needle coke goodwill for impairment as of March 31, 2015. This test resulted in an impairment charge for the remaining needle coke goodwill of $35.4 million.

As a result of our acquisition by Brookfield, our goodwill and intangibles were revalued as of August 15, 2015. See Note 2 "Preferred Share Issuance and Merger" for description of the Merger and the results of purchase price accounting. The following tables represents the changes in the carrying value of goodwill and intangibles during the predecessor entity period of January 1, 2015 through August 14, 2015 and the successor entity period of August 15, 2015 through June 30, 2016:

Goodwill
Predecessor	(Dollars in Thousands)
Balance as of December 31, 2014	$	420,129
Impairment	(35,381		)
Currency translation effect	(616		)
Balance as of August 14, 2015	$	384,132
Successor
Balance as of August 15, 2015	$	170,418
Adjustments	1,641
Balance as of December 31, 2015	$	172,059
Adjustments (See Note 2)	1,058
Goodwill transferred to discontinued operations	(2,000		)
Balance as of June 30, 2016	$	171,117

Intangible Assets
	As of December 31, 2015							As of June 30, 2016
	Gross Carrying Amount		Accumulated Amortization & Impairment			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization & Impairment			Net Carrying Amount
	(Dollars in Thousands)
Trade name	$	22,000	$	(896	)	$	21,104	$	22,500	$	(2,075	)	$	20,425
Technological know-how	54,100		(2,934		)	51,166		55,300		(6,767		)	48,533
Customer –related     intangible	64,500		(1,602		)	62,898		64,500		(3,937		)	60,563
Total finite-lived     intangible assets	$	140,600	$	(5,432	)	$	135,168	$	142,300	$	(12,779	)	$	129,521

Amortization expense of acquired intangible assets was $4.4 million in the three months ended June 30, 2015 and $3.6 million in the three months ended June 30, 2016 and $8.7 million and $7.2 million in the six months ended June 30, 2015 and June 30, 2016, respectively. Estimated amortization expense will approximate $13.6 million in the remainder of 2016, $12.9 million in 2017, $12.2 million in 2018, $11.4 million in 2019 and $10.7 million in 2020.

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Debt And Liquidity

6 Months Ended

Jun. 30, 2016

Long-term Debt and Capital Lease Obligations [Abstract]

Debt And Liquidity

Debt and Liquidity

The following table presents our long-term debt: 

	As of December 31, 2015			As of June 30, 2016
	(Dollars in thousands)
Credit Facility (Revolving Facility and Term Loan Facility)	$	98,000		$	109,000
Senior Notes	267,827			270,961
Other Debt	1,400			496
Total Debt	367,227			380,457
Less: Short-term Debt	(4,772		)	(16,482		)
Long-term Debt	$	362,455		$	363,975

The fair value of debt, which was determined using Level 2 inputs, was $335.4 million versus a book value of $380.5 million as of June 30, 2016. As a result of our acquisition by Brookfield and the resulting purchase price accounting adjustments (see Note 2 "Preferred Share Issuance and Merger"), our Senior Notes were adjusted to their fair market value as of August 15, 2015. The discount to fair value will be accreted over the remaining term of the Notes.

Credit Facility

On April 23, 2014, the Company and certain of its subsidiaries entered into an Amended and Restated Credit Agreement with a borrowing capacity of $400 million and a maturity date of April 2019 (the "Revolving Facility"). On February 27, 2015, GrafTech and certain of its subsidiaries entered into a further Amended and Restated Credit Agreement that provides for, among other things, greater financial flexibility and a $40 million senior secured delayed draw term loan facility (the "Term Loan Facility").

On July 28, 2015, GrafTech and certain of its subsidiaries entered into an amendment to the Amended and Restated Credit Agreement to change the terms regarding the occurrence of a default upon a change in control (which is defined thereunder to include the acquisition by any person of more than 25 percent of GrafTech’s outstanding shares) to exclude the acquisition of shares by Brookfield (see Note 2).  In addition, effective upon such acquisition, the financial covenants were eased, resulting in increased availability under the Revolving Facility. The size of the Revolving Facility was also reduced from $400 million to $375 million. The size of the Term Loan Facility remained at $40 million.

On April 27, 2016, GrafTech and certain of its subsidiaries entered into an amendment to the Revolving Facility. The size of the Revolving Facility was permanently reduced from $375 million to $225 million. New covenants were also added to the Revolving Facility, including a requirement to make mandatory repayments of outstanding amounts under the Revolving Facility and the Term Loan Facility with the proceeds of any sale of all or any substantial part of the assets included in the Engineered Solutions segment and a requirement to maintain minimum liquidity (consisting of cash, cash equivalents and availability under the Revolving Facility) in excess of $25 million. The covenants were also modified to provide for: the elimination of certain exceptions to the Company’s negative covenants limiting the Company’s ability to make certain investments, sell assets, make restricted payments, incur liens and incur debt; a restriction on the amount of cash and cash equivalents permitted to be held on the balance sheet at any one time without paying down the Revolving Facility and the Term Loan Facility; and changes to the Company’s financial covenants so that until the earlier of March 31, 2019 or the Company has $75 million in trailing twelve month EBITDA (as defined in the Revolving Facility), the Company is required to maintain trailing twelve month EBITDA above certain minimums ranging from ($40 million) to $35 million after which the Company’s existing financial covenants under the Revolving Facility will apply.

With this amendment, the Company has full access to the $225 million Revolving Facility. As of June 30, 2016, the Company had $72.0 million of borrowings on the Revolving Facility and $13.5 million of letters of credit drawn against the Revolving Facility.

The $40 million Term Loan Facility was fully drawn on August 11, 2015, in connection with the repayment of the Senior Subordinated Notes. The balance of the Term Loan Facility of $37.0 million as of June 30, 2016.

The interest rate applicable to the Revolving Facility and Term Loan Facility is LIBOR plus a margin ranging from 2.25% to 4.75% (depending on our total senior secured leverage ratio). The borrowers pay a per annum fee ranging from 0.35% to 0.70% (depending on our senior secured leverage ratio) on the undrawn portion of the commitments under the Revolving Facility.

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.

The indenture for the Senior Notes states that 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. On August 17, 2015 a change in control occurred due to the Merger (see Note 2 to the Financial Statements). However, the downgrade of the ratings of the Senior Notes, as specified in the indenture, did not occur. Therefore, the Company was not and will not be required to offer to repurchase the Senior Notes as a result of the Merger.

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 contains 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.

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Inventories

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories are comprised of the following: 

	As of December 31, 2015		As of June 30, 2016
	(Dollars in thousands)
Inventories:
Raw materials and supplies	$	66,201	$	60,080
Work in process	89,198		65,055
Finished goods	62,731		62,105
Total	$	218,130	$	187,240

Due to decreased pricing in our graphite electrode product line, we recorded a lower of cost or market inventory adjustment of $3.5 million and $14.6 million in the three and six months endedJune 30, 2016, respectively.

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Interest Expense

6 Months Ended

Jun. 30, 2016

Interest and Debt Expense [Abstract]

Interest Expense

Interest Expense

The following tables present the components of interest expense: 

	Predecessor		Successor		Predecessor		Successor
	For the Three Months Ended June 30, 2015		For the Three Months Ended June 30, 2016		For the Six Months Ended June 30, 2015		For the Six Months Ended June 30, 2016
	(Dollars in thousands)				(Dollars in thousands)
Interest incurred on debt	$	4,883	$	4,819	$	9,757	$	9,716
Amortization of discount on Senior    Subordinated Notes	3,261		—		6,468		—
Accretion of fair value adjustment on Senior Notes	—		1,571		—		3,134
Amortization of debt issuance costs	652		46		1,196		46
Total interest expense	$	8,796	$	6,436	$	17,421	$	12,896

Interest Rates

The Revolving Facility had an effective interest rate of 2.68% and 4.22% as of December 31, 2015 and June 30, 2016, respectively. The Term Loan Facility had an interest rate of 2.49% as of December 31, 2015 and 4.22% as of June 30, 2016. The Senior Notes have a fixed interest rate of 6.375%.

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Contingencies

6 Months Ended

Jun. 30, 2016

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.

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 six months ended June 30, 2016, are presented below: 

	(Dollars in thousands)
Balance as of December 31, 2015	$	388
Product warranty adjustments	879
Payments and settlements	(475		)
Balance as of June 30, 2016	$	792

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Income Taxes

6 Months Ended

Jun. 30, 2016

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 tables summarize the provision for income taxes for the three and six months ended June 30, 2015 and June 30, 2016:

	Predecessor			Successor			Predecessor			Successor
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2016			2015			2016
	(Dollars in thousands)						(Dollars in thousands)
Tax (benefit) expense	$	1,239		$	(5,591	)	$	1,219		$	(5,886	)
Pretax loss	$	(15,876	)	$	(27,852	)	$	(65,420	)	$	(61,957	)
Effective tax rates	(7.8		)%	20.1		%	(1.9		)%	9.5		%

For the three and six months ended June 30, 2016, the effective tax rate differs from the U.S. statutory rate of 35% primarily due to recent losses in foreign jurisdictions where a tax benefit will be recognized, offset by recent losses in the U.S. and Switzerland where we receive no tax benefit due to a full valuation allowance and worldwide earnings from various countries taxed at different rates. The recognition of the valuation allowance does not result in or limit the Company's ability to utilize these tax assets in the future. The effective tax rate for the three and six months ended June 30, 2015 differs from the U.S. statutory rate of 35% primarily due to recent losses in the U.S. and Switzerland where we receive no tax benefit due to a full valuation allowance and worldwide earnings from various countries taxed at different rates.

As of June 30, 2016, we had unrecognized tax benefits of $3.9 million, $3.1 million of which, if recognized, would have 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 2009.

We continue to assess the realization of our 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 established and maintained valuation allowances on those net deferred tax assets.

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Derivative Instruments

6 Months Ended

Jun. 30, 2016

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. Our derivative risk management strategy has not resulted in a material impact to our financial results in 2015 or 2016. Our derivative assets and liabilities are included within "Prepaid expenses and other current assets" and "Other current liabilities" on the Condensed Consolidated Balance Sheets and effects of these derivatives are recorded in revenue, cost of goods sold and other expense (income) on the Condensed Consolidated Statements of Operations.

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 six months ended June 30, 2015 and 2016, respectively.

In 2015 and 2016, we entered into foreign 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, euro and Japanese yen. As of June 30, 2016, we had outstanding Mexican peso, euro, and Japanese yen currency contracts with an aggregate notional amount of $33.2 million. The foreign currency derivatives outstanding as of June 30, 2016 have maturities that range from July, 2016 to September, 2016.

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. As of June 30, 2016, we had no outstanding derivative swap contracts for refined oil products or natural gas.

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 denominated in foreign currency and designated as a non-derivative net investment hedging instrument was $11.8 million and $12.5 million as of December 31, 2015 and June 30, 2016, respectively. Within the currency translation adjustment portion of other comprehensive income, we recorded a gain of $0.1 million for the three months ended June 30, 2015, and we incurred no gain or loss in three months ended June 30, 2016, resulting from these net investment hedges. We recorded a gain of $0.8 million in the six months ended June 30, 2015 and a loss of $0.6 million in the six months ended June 30, 2016 within other comprehensive income related to theses hedges.

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Guarantor Information

6 Months Ended

Jun. 30, 2016

Consolidating Financials [Abstract]

Supplemental Guarantor Information

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, 2015 and June 30, 2016 and condensed consolidating statements of operations and comprehensive income and statements of cash flows for the three months ended March 31, 2015 (Predecessor) and 2016 (Successor) of the Parent Guarantors and the Non-Guarantors.

CONDENSED CONSOLIDATING BALANCE SHEETS
As of December 31, 2015
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	646	$	6,281	$	—		$	6,927
Accounts receivable - affiliates	51,592		9,803		19,505		(80,900		)	—
Accounts receivable - trade	—		7,599		74,791		—			82,390
Inventories	—		54,613		163,517		—			218,130
Prepaid and other current assets	—		7,913		13,244		—			21,157
Current assets of discontinued operations	—		81,638		17,520		(877		)	98,281
Total current assets	51,592		162,212		294,858		(81,777		)	426,885
Investment in affiliates	1,068,027		668,113		—		(1,736,140		)	—
Property, plant and equipment	—		209,633		341,530		—			551,163
Deferred income taxes	—		—		15,326		—			15,326
Goodwill	—		72,399		99,660		—			172,059
Notes receivable - affiliate	—		46,074		—		(46,074		)	—
Other assets	—		79,367		73,246		—			152,613
Long-term assets of discontinued operations	—		99,457		4,518		—			103,975
Total Assets	$	1,119,619	$	1,337,255	$	829,138	$	(1,863,991	)	$	1,422,021
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable - affiliate	$	159	$	71,099	$	9,642	$	(80,900	)	$	—
Accounts payable - trade	—		11,191		28,956		—			40,147
Short-term debt	—		4,636		136		—			4,772
Accrued income and other taxes	—		2,824		3,109		—			5,933
Rationalizations	—		995		200		—			1,195
Other accrued liabilities	2,444		4,847		13,703		—			20,994
Short-term liabilities of discontinued operations	—		18,384		5,575		(877		)	23,082
Total current liabilities	2,603		113,976		61,321		(81,777		)	96,123
Long-term debt - affiliate	38,661		—		7,413		(46,074		)	—
Long-term debt - third party	267,827		93,758		870		—			362,455
Other long-term obligations	—		60,508		33,810		—			94,318
Deferred income taxes	—		248		57,182		—			57,430
Long-term liabilities of discontinued operations	—		738		429		—			1,167
Stockholders' equity	810,528		1,068,027		668,113		(1,736,140		)	810,528
Total Liabilities and Stockholders' Equity	$	1,119,619	$	1,337,255	$	829,138	$	(1,863,991	)	$	1,422,021

CONDENSED CONSOLIDATING BALANCE SHEETS
As of June 30, 2016
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	737	$	12,672	$	—		$	13,409
Accounts receivable - affiliates	51,592		3,657		12,696		(67,945		)	—
Accounts receivable - trade	—		8,642		71,817		—			80,459
Inventories	—		44,003		143,237		—			187,240
Prepaid and other current assets	—		8,146		15,488		—			23,634
Current assets of discontinued operations	—		79,908		18,008		(5,043		)	92,873
Total current assets	51,592		145,093		273,918		(72,988		)	397,615
Investment in affiliates	928,091		632,784		—		(1,560,875		)	—
Property, plant and equipment	—		201,677		335,621		—			537,298
Deferred income taxes	—		—		18,476		—			18,476
Goodwill	—		70,399		100,718		—			171,117
Notes receivable - affiliate	—		55,999		—		(55,999		)	—
Other assets	—		75,300		72,467		—			147,767
Total Assets	$	979,683	$	1,181,252	$	801,200	$	(1,689,862	)	$	1,272,273
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable - affiliate	$	236	$	64,294	$	3,415	$	(67,945	)	$	—
Accounts payable - trade	—		8,178		37,055		—			45,233
Short-term debt	—		11,341		5,141		—			16,482
Accrued income and other taxes	—		1,109		4,453		—			5,562
Rationalizations	—		384		17		—			401
Other accrued liabilities	2,444		6,190		16,429		—			25,063
Liabilities of discontinued operations	—		17,006		7,352		(5,043		)	19,315
Total current liabilities	2,680		108,502		73,862		(72,988		)	112,056
Long-term debt - affiliate	48,586		—		7,413		(55,999		)	—
Long-term debt - third party	270,961		87,105		5,909		—			363,975
Other long-term obligations	—		57,305		33,872		—			91,177
Deferred income taxes	—		249		47,360		—			47,609
Stockholders' equity	657,456		928,091		632,784		(1,560,875		)	657,456
Total Liabilities and Stockholders' Equity	$	979,683	$	1,181,252	$	801,200	$	(1,689,862	)	$	1,272,273

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Six Months ended June 30, 2015 (Predecessor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	97,324		$	42,278		$	(139,602	)		$	—
Sales - third party	—			64,538			223,765			—				288,303
Net sales	—			161,862			266,043			(139,602		)		288,303
Cost of sales	—			148,325			248,870			(139,602		)		257,593
Gross profit	—			13,537			17,173			—				30,710
Research and development	—			2,667			—			—				2,667
Selling and administrative expenses	—			18,094			21,704			—				39,798
Impairments	—			35,381			—			—				35,381
Rationalizations	—			(29		)	82			—				53
Operating income (loss)	—			(42,576		)	(4,613		)	—				(47,189		)
Other expense (income), net	—			791			360			—				1,151
Interest expense - affiliate	—			305			—			(305		)		—
Interest expense - third party	16,382			828			211			—				17,421
Interest income - affiliate	(305		)	—			—			305				—
Interest income - third party	—			—			(341		)	—				(341		)
Loss from continuing operations before provision for income taxes	(16,077		)	(44,500		)	(4,843		)	—			`	(65,420		)
Provision for income taxes	—			(3,692		)	4,911			—				1,219
Equity in loss from continuing operations of subsidiary	(50,562		)	(9,754		)	—			60,316				—
Net (loss) income from continuing operations	(66,639		)	(50,562		)	(9,754		)	60,316				(66,639		)
Loss from discontinued      operations, net of tax	—			(5,644		)	(6,142		)	—				(11,786		)
Equity in loss from discontinued operations of subsidiary	(11,786		)	(6,142		)				17,928				—
Net (loss) income from discontinued operations	(11,786		)	(11,786		)	(6,142		)	17,928				(11,786		)
Net loss	$	(78,425	)	$	(62,348	)	$	(15,896	)	$	78,244			$	(78,425	)
Statements of Comprehensive Income
Net (loss) income	$	(78,425	)	$	(62,348	)	$	(15,896	)	$	78,244			$	(78,425	)
Other comprehensive (loss) income	(21,209		)	(21,209		)	(22,207		)	43,416				(21,209		)
Comprehensive (loss) income	$	(99,634	)	$	(83,557	)	$	(38,103	)	$	121,660			$	(99,634	)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2015 (Predecessor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash provided by  (used in) operating activities:	$	(7,355	)	$	22,992		$	36,293		$	(27,710	)	$	24,220
Cash flow from investing activities:
Repayments from (loans to) affiliates	7,418			—			—			(7,418		)	—
Capital expenditures	—			(16,994		)	(8,626		)	—			(25,620		)
Payments for derivative instruments	—			(7,595		)	(209		)	—			(7,804		)
Proceeds from sale of fixed assets	—			397			241						638
Net cash provided by         (used in) investing activities	7,418			(24,192		)	(8,594		)	(7,418		)	(32,786		)
Cash flow from financing activities:
(Repayments to) loans from affiliates	—			(7,418		)	—			7,418			—
Dividends to affiliates	—			—			(27,710		)	27,710			—
Short-term debt borrowings	—			2,001			2,505			—			4,506
Revolving Facility borrowings	—			62,000			12,000			—			74,000
Revolving Facility reductions	—			(54,000		)	(12,000		)	—			(66,000		)
Principal payments on long term debt	—			(67		)	—			—			(67		)
Purchase of treasury shares	(63		)	—			—			—			(63		)
Revolver facility refinancing	—			(2,691		)	(31		)	—			(2,722		)
Other	—			(2,850		)	—			—			(2,850		)
Net cash provided by (used in)          financing activities	(63		)	(3,025		)	(25,236		)	35,128			6,804
Net change in cash and    cash equivalents	—			(4,225		)	2,463			—			(1,762		)
Effect of exchange rate changes    on cash and cash equivalents	—			—			(1,283		)	—			(1,283		)
Cash and cash equivalents at    beginning of period	—			5,503			12,047			—			17,550
Cash and cash equivalents    at end of period	$	—		$	1,278		$	13,227		$	—		$	14,505

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Organization And Summary Of Significant Accounting Policies (Policy)

6 Months Ended

Jun. 30, 2016

Accounting Policies [Abstract]

Basis Of Presentation

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, 2015 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, 2015 (the “Annual Report”) but does not include all disclosures required by GAAP in audited financial statements. 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 periods 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.

Predecessor and Successor Reporting

Predecessor and Successor Reporting

On August 17, 2015, the Company was acquired by affiliates of Brookfield Asset Management Inc. (see Note 2 "Preferred Share Issuance and Merger"). We elected to account for the acquisition under the acquisition method of accounting. Under the acquisition method of accounting, the assets and liabilities of GTI were adjusted to their fair market value as of August 15, 2015, the day that Brookfield effectively took control of the Company.

Our consolidated statements of operations subsequent to the acquisition include amortization expense relating to the fair value adjustments and depreciation expense based on the fair value of the Company's property, plant and equipment that had previously been carried at historical cost less accumulated depreciation. Therefore, the Company's financial information prior to the acquisition is not comparable to the financial information subsequent to the Merger. As a result, the financial statements and certain note presentations are separated into two distinct periods, the period before the consummation of the acquisition (labeled "Predecessor") and the period after the date of acquisition (labeled "Successor"), to indicate the application of the different basis of accounting between the periods presented.

New Accounting Standards

New Accounting Standards

In May 2014, the 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 was expected to be effective for fiscal years beginning after December 15, 2016, and for interim periods within those fiscal years. On July 9, 2015, the FASB deferred the effective date to fiscal years beginning after December 15, 2017. 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.

In April 2015, the FASB issued ASU 2015-3, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying value of the associated debt liability. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015 with early adoption permitted. We had no capitalized debt issuance costs as of December 31, 2015. We adopted this ASU as of January 1, 2016, and adoption resulted in no significant impact on the Company's financial position, results of operations or cash flows.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). Under this new guidance, a company will now recognize most leases on its balance sheet as lease liabilities with corresponding right-of-use assets. This ASU is effective for us beginning after January 1, 2019. The Company is currently evaluating the impact of the adoption of this standard on its financial position, results of operations or cash flows.

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Preferred Share Issuance and Merger Preferred Shares and Tender Offer (Tables)

6 Months Ended

Jun. 30, 2016

Business Combinations [Abstract]

Computation of Fair Value of Total Consideration

The computation of the fair value of the total consideration at the date of acquisition follows:

Purchase Consideration
(In thousands except share price)
	# Shares	Unit Price		Amount
Convertible Preferred Equity
Series A and B	150	$	1,000.00	$	150,000
Common Equity
Common Shares	139,397	$	5.05	$	703,955
Net value of options				$	382
Total				$	854,337

Schedule of Business Acquisitions, by Acquisition

The following table summarizes the fair values of the identifiable assets acquired and liabilities assumed at the acquisition date:

Net identifiable assets acquired
	Cash	$	25,032
	Accounts receivable	94,298
	Inventories	344,765
	Property, plant and equipment	650,405
	Intangible assets	155,700
	Deferred tax assets	41,606
	Prepaid and other current assets	49,716
	Other non-current assets	8,428
	Accounts payable	(68,005		)
	Short-term debt	(18,779		)
	Other accrued liabilities	(53,252		)
	Long-term debt	(367,811		)
	Other long-term liabilities	(101,648		)
	Deferred tax liabilities	(79,235		)
Net identifiable assets acquired		$	681,220
Goodwill		$	173,117
Net assets acquired		$	854,337

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Discontinued Operations and Related Assets Held for Sale (Tables)

6 Months Ended

Jun. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations and Related Assets Held for Sale

The following tables summarize the results of the Engineered Solutions business segment, reclassified as discontinued operations for the three and six months ended June 30, 2015 and 2016.

	For the Three Months Ended  June 30, 2015			For the Three Months Ended June 30, 2016
	(dollars in thousands)
Net sales	$	39,313		$	29,930
Cost of sales	37,591			24,569
Gross profit	1,722			5,361
Research and development	764			813
Selling and administrative expenses	5,544			5,314
Rationalizations	1,794			(255		)
Impairment	—			105,600
Operating loss	(6,380		)	(106,111		)
Other expense (income)	(37		)	(81		)
Interest expense	399			951
Loss from discontinued operations before income taxes	(6,742		)	(106,981		)
Benefit from income taxes on discontinued operations	1,040			843
Loss from discontinued operations	$	(5,702	)	$	(106,138	)

	For the Six Months Ended June 30, 2015			For the Six Months Ended June 30, 2016
	(dollars in thousands)
Net sales	$	84,030		$	59,019
Cost of sales	78,037			50,554
Gross profit	5,993			8,465
Research and development	1,679			1,691
Selling and administrative expenses	11,745			9,760
Rationalizations	4,210			(246		)
Impairment	—			105,600
Operating loss	(11,641		)	(108,340		)
Other expense (income)	(64		)	(72		)
Interest expense	695			1,670
Loss from discontinued operations before income taxes	(12,272		)	(109,938		)
Benefit from income taxes on discontinued operations	486			1,236
Loss from discontinued operations	$	(11,786	)	$	(108,702	)

The significant components of our Statements of Cash Flows for the Engineered Solutions business segment held for sale are as follows:

	For the Six Months Ended June 30, 2015			For the Six Months Ended June 30, 2016
	(dollars in thousands)
Depreciation and amortization	$	7,330		$	3,052
Impairment	—			105,600
Deferred income taxes	(486		)	(1,236		)
Capital expenditures	9,413			2,513

The following table summarizes the carrying value of the assets and liabilities of discontinued operations as of December 31, 2015 and June 30, 2016.

	As of December 31, 2015		As of June 30, 2016
	(dollars in thousands)
Current assets of discontinued operations:
Accounts receivable	$	20,425	$	19,030
Inventories	77,332		77,656
Prepaid expenses and other current assets	524		924
Total current assets of discontinued operations	98,281		97,610
Net property plant and equipment	86,369		86,595
Other assets	17,606		14,268
Total long-term assets of discontinued operations	103,975		100,863
Impairment upon reclassification to held for sale	—		(105,600		)
Total assets of discontinued operations	$	202,256	$	92,873
Liabilities of discontinued operations:
Accounts payable	$	9,331	$	6,499
Accrued income and other taxes	3,113		2,500
Other accrued liabilities	10,638		9,336
Total current liabilities of discontinued operations	23,082		18,335
Other long-term obligations	1,167		980
Total liabilities of discontinued operations	$	24,249	$	19,315

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Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2016

Segment Reporting Information, Revenue for Reportable Segment [Abstract]

Schedule Of Financial Information Concerning Reportable Segments

	Predecessor			Successor			Predecessor			Successor
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2016			2015			2016
	(Dollars in thousands)						(Dollars in thousands)
Net sales to external customers:
Industrial Materials	$	125,809		$	115,365		$	288,303		$	210,941
Operating (loss) income:
Industrial Materials	$	4,632		$	(16,291	)	$	(22,312	)	$	(36,538	)
Corporate, R&D and Other expenses	(11,247		)	(6,323		)	(24,877		)	(13,495		)
Total operating loss	$	(6,615	)	$	(22,614	)	$	(47,189	)	$	(50,033	)
Reconciliation of segment operating loss to     loss before provision for income taxes
Other expense (income), net	$	733		$	(1,198	)	$	1,151		$	(960	)
Interest expense	8,796			6,436			17,421			12,896
Interest income	(268		)	—			(341		)	(12		)
Loss from continuing operations before    provision for income taxes	$	(15,876	)	$	(27,852	)	$	(65,420	)	$	(61,957	)

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Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2016

Pension Costs

Defined Benefit Plan Disclosure [Line Items]

Schedule Of Benefit Plans

	Predecessor			Successor			Predecessor			Successor
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2016			2015			2016
	(Dollars in thousands)						(Dollars in thousands)
Service cost	$	506		$	508		$	1,333		$	1,016
Interest cost	1,526			1,498			3,052			2,996
Expected return on plan assets	(1,354		)	(1,310		)	(2,708		)	(2,620		)
Amortization of prior service cost	1			—			2			—
Net cost	$	679		$	696		$	1,679		$	1,392

Postretirement Costs

Defined Benefit Plan Disclosure [Line Items]

Schedule Of Benefit Plans

	Predecessor			Successor		Predecessor			Successor
	For the Three Months Ended June 30,					For the Six Months Ended June 30,
	2015			2016		2015			2016
	(Dollars in thousands)					(Dollars in thousands)
Service cost	$	4		$	1	$	8		$	2
Interest cost	315			272		630			543
Amortization of prior service cost	(43		)	—		(86		)	—
Net cost	$	276		$	273	$	552		$	545

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Goodwill And Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule Of Changes In The Carrying Value Of Goodwill

changes in the carrying value of goodwill and intangibles during the predecessor entity period of January 1, 2015 through August 14, 2015 and the successor entity period of August 15, 2015 through June 30, 2016:

Goodwill
Predecessor	(Dollars in Thousands)
Balance as of December 31, 2014	$	420,129
Impairment	(35,381		)
Currency translation effect	(616		)
Balance as of August 14, 2015	$	384,132
Successor
Balance as of August 15, 2015	$	170,418
Adjustments	1,641
Balance as of December 31, 2015	$	172,059
Adjustments (See Note 2)	1,058
Goodwill transferred to discontinued operations	(2,000		)
Balance as of June 30, 2016	$	171,117

Schedule Of Intangible Assets With Determinable Useful Lives By Major Category

Intangible Assets
	As of December 31, 2015							As of June 30, 2016
	Gross Carrying Amount		Accumulated Amortization & Impairment			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization & Impairment			Net Carrying Amount
	(Dollars in Thousands)
Trade name	$	22,000	$	(896	)	$	21,104	$	22,500	$	(2,075	)	$	20,425
Technological know-how	54,100		(2,934		)	51,166		55,300		(6,767		)	48,533
Customer –related     intangible	64,500		(1,602		)	62,898		64,500		(3,937		)	60,563
Total finite-lived     intangible assets	$	140,600	$	(5,432	)	$	135,168	$	142,300	$	(12,779	)	$	129,521

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Debt And Liquidity (Tables)

6 Months Ended

Jun. 30, 2016

Long-term Debt and Capital Lease Obligations [Abstract]

Schedule Of Long-Term Debt

	As of December 31, 2015			As of June 30, 2016
	(Dollars in thousands)
Credit Facility (Revolving Facility and Term Loan Facility)	$	98,000		$	109,000
Senior Notes	267,827			270,961
Other Debt	1,400			496
Total Debt	367,227			380,457
Less: Short-term Debt	(4,772		)	(16,482		)
Long-term Debt	$	362,455		$	363,975

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Inventories (Tables)

6 Months Ended

Jun. 30, 2016

Inventory Disclosure [Abstract]

Schedule Of Inventories

nventories are comprised of the following: 

	As of December 31, 2015		As of June 30, 2016
	(Dollars in thousands)
Inventories:
Raw materials and supplies	$	66,201	$	60,080
Work in process	89,198		65,055
Finished goods	62,731		62,105
Total	$	218,130	$	187,240

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Interest Expense (Tables)

6 Months Ended

Jun. 30, 2016

Interest and Debt Expense [Abstract]

Schedule Of Interest Expense

The following tables present the components of interest expense: 

	Predecessor		Successor		Predecessor		Successor
	For the Three Months Ended June 30, 2015		For the Three Months Ended June 30, 2016		For the Six Months Ended June 30, 2015		For the Six Months Ended June 30, 2016
	(Dollars in thousands)				(Dollars in thousands)
Interest incurred on debt	$	4,883	$	4,819	$	9,757	$	9,716
Amortization of discount on Senior    Subordinated Notes	3,261		—		6,468		—
Accretion of fair value adjustment on Senior Notes	—		1,571		—		3,134
Amortization of debt issuance costs	652		46		1,196		46
Total interest expense	$	8,796	$	6,436	$	17,421	$	12,896

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Contingencies (Tables)

6 Months Ended

Jun. 30, 2016

Loss Contingency [Abstract]

Schedule Of Product Warranties Accrual

Claims accrued but not yet paid and the related activity within the accrual for the six months ended June 30, 2016, are presented below: 

	(Dollars in thousands)
Balance as of December 31, 2015	$	388
Product warranty adjustments	879
Payments and settlements	(475		)
Balance as of June 30, 2016	$	792

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2016

Income Tax Disclosure [Abstract]

Summary Of Provision For 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 tables summarize the provision for income taxes for the three and six months ended June 30, 2015 and June 30, 2016:

	Predecessor			Successor			Predecessor			Successor
	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2016			2015			2016
	(Dollars in thousands)						(Dollars in thousands)
Tax (benefit) expense	$	1,239		$	(5,591	)	$	1,219		$	(5,886	)
Pretax loss	$	(15,876	)	$	(27,852	)	$	(65,420	)	$	(61,957	)
Effective tax rates	(7.8		)%	20.1		%	(1.9		)%	9.5		%

For the three and six months ended June 30, 2016, the effective tax rate differs from the U.S. statutory rate of 35% primarily due to recent losses in foreign jurisdictions where a tax benefit will be recognized, offset by recent losses in the U.S. and Switzerland where we receive no tax benefit due to a full valuation allowance and worldwide earnings from various countries taxed at different rates. The recognition of the valuation allowance does not result in or limit the Company's ability to utilize these tax assets in the future. The effective tax rate for the three and six months ended June 30, 2015 differs from the U.S. statutory rate of 35% primarily due to recent losses in the U.S. and Switzerland where we receive no tax benefit due to a full valuation allowance and worldwide earnings from various countries taxed at different rates.

As of June 30, 2016, we had unrecognized tax benefits of $3.9 million, $3.1 million of which, if recognized, would have 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 2009.

We continue to assess the realization of our 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 established and maintained valuation allowances on those net deferred tax assets.

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Guarantor Information (Tables)

6 Months Ended

Jun. 30, 2016

Consolidating Financials [Abstract]

Condensed Consolidating Balance Sheets

CONDENSED CONSOLIDATING BALANCE SHEETS
As of December 31, 2015
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	646	$	6,281	$	—		$	6,927
Accounts receivable - affiliates	51,592		9,803		19,505		(80,900		)	—
Accounts receivable - trade	—		7,599		74,791		—			82,390
Inventories	—		54,613		163,517		—			218,130
Prepaid and other current assets	—		7,913		13,244		—			21,157
Current assets of discontinued operations	—		81,638		17,520		(877		)	98,281
Total current assets	51,592		162,212		294,858		(81,777		)	426,885
Investment in affiliates	1,068,027		668,113		—		(1,736,140		)	—
Property, plant and equipment	—		209,633		341,530		—			551,163
Deferred income taxes	—		—		15,326		—			15,326
Goodwill	—		72,399		99,660		—			172,059
Notes receivable - affiliate	—		46,074		—		(46,074		)	—
Other assets	—		79,367		73,246		—			152,613
Long-term assets of discontinued operations	—		99,457		4,518		—			103,975
Total Assets	$	1,119,619	$	1,337,255	$	829,138	$	(1,863,991	)	$	1,422,021
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable - affiliate	$	159	$	71,099	$	9,642	$	(80,900	)	$	—
Accounts payable - trade	—		11,191		28,956		—			40,147
Short-term debt	—		4,636		136		—			4,772
Accrued income and other taxes	—		2,824		3,109		—			5,933
Rationalizations	—		995		200		—			1,195
Other accrued liabilities	2,444		4,847		13,703		—			20,994
Short-term liabilities of discontinued operations	—		18,384		5,575		(877		)	23,082
Total current liabilities	2,603		113,976		61,321		(81,777		)	96,123
Long-term debt - affiliate	38,661		—		7,413		(46,074		)	—
Long-term debt - third party	267,827		93,758		870		—			362,455
Other long-term obligations	—		60,508		33,810		—			94,318
Deferred income taxes	—		248		57,182		—			57,430
Long-term liabilities of discontinued operations	—		738		429		—			1,167
Stockholders' equity	810,528		1,068,027		668,113		(1,736,140		)	810,528
Total Liabilities and Stockholders' Equity	$	1,119,619	$	1,337,255	$	829,138	$	(1,863,991	)	$	1,422,021

CONDENSED CONSOLIDATING BALANCE SHEETS
As of June 30, 2016
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	737	$	12,672	$	—		$	13,409
Accounts receivable - affiliates	51,592		3,657		12,696		(67,945		)	—
Accounts receivable - trade	—		8,642		71,817		—			80,459
Inventories	—		44,003		143,237		—			187,240
Prepaid and other current assets	—		8,146		15,488		—			23,634
Current assets of discontinued operations	—		79,908		18,008		(5,043		)	92,873
Total current assets	51,592		145,093		273,918		(72,988		)	397,615
Investment in affiliates	928,091		632,784		—		(1,560,875		)	—
Property, plant and equipment	—		201,677		335,621		—			537,298
Deferred income taxes	—		—		18,476		—			18,476
Goodwill	—		70,399		100,718		—			171,117
Notes receivable - affiliate	—		55,999		—		(55,999		)	—
Other assets	—		75,300		72,467		—			147,767
Total Assets	$	979,683	$	1,181,252	$	801,200	$	(1,689,862	)	$	1,272,273
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable - affiliate	$	236	$	64,294	$	3,415	$	(67,945	)	$	—
Accounts payable - trade	—		8,178		37,055		—			45,233
Short-term debt	—		11,341		5,141		—			16,482
Accrued income and other taxes	—		1,109		4,453		—			5,562
Rationalizations	—		384		17		—			401
Other accrued liabilities	2,444		6,190		16,429		—			25,063
Liabilities of discontinued operations	—		17,006		7,352		(5,043		)	19,315
Total current liabilities	2,680		108,502		73,862		(72,988		)	112,056
Long-term debt - affiliate	48,586		—		7,413		(55,999		)	—
Long-term debt - third party	270,961		87,105		5,909		—			363,975
Other long-term obligations	—		57,305		33,872		—			91,177
Deferred income taxes	—		249		47,360		—			47,609
Stockholders' equity	657,456		928,091		632,784		(1,560,875		)	657,456
Total Liabilities and Stockholders' Equity	$	979,683	$	1,181,252	$	801,200	$	(1,689,862	)	$	1,272,273

Condensed Consolidating Statements of Income and Comprehensive Income

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Six Months ended June 30, 2015 (Predecessor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	97,324		$	42,278		$	(139,602	)		$	—
Sales - third party	—			64,538			223,765			—				288,303
Net sales	—			161,862			266,043			(139,602		)		288,303
Cost of sales	—			148,325			248,870			(139,602		)		257,593
Gross profit	—			13,537			17,173			—				30,710
Research and development	—			2,667			—			—				2,667
Selling and administrative expenses	—			18,094			21,704			—				39,798
Impairments	—			35,381			—			—				35,381
Rationalizations	—			(29		)	82			—				53
Operating income (loss)	—			(42,576		)	(4,613		)	—				(47,189		)
Other expense (income), net	—			791			360			—				1,151
Interest expense - affiliate	—			305			—			(305		)		—
Interest expense - third party	16,382			828			211			—				17,421
Interest income - affiliate	(305		)	—			—			305				—
Interest income - third party	—			—			(341		)	—				(341		)
Loss from continuing operations before provision for income taxes	(16,077		)	(44,500		)	(4,843		)	—			`	(65,420		)
Provision for income taxes	—			(3,692		)	4,911			—				1,219
Equity in loss from continuing operations of subsidiary	(50,562		)	(9,754		)	—			60,316				—
Net (loss) income from continuing operations	(66,639		)	(50,562		)	(9,754		)	60,316				(66,639		)
Loss from discontinued      operations, net of tax	—			(5,644		)	(6,142		)	—				(11,786		)
Equity in loss from discontinued operations of subsidiary	(11,786		)	(6,142		)				17,928				—
Net (loss) income from discontinued operations	(11,786		)	(11,786		)	(6,142		)	17,928				(11,786		)
Net loss	$	(78,425	)	$	(62,348	)	$	(15,896	)	$	78,244			$	(78,425	)
Statements of Comprehensive Income
Net (loss) income	$	(78,425	)	$	(62,348	)	$	(15,896	)	$	78,244			$	(78,425	)
Other comprehensive (loss) income	(21,209		)	(21,209		)	(22,207		)	43,416				(21,209		)
Comprehensive (loss) income	$	(99,634	)	$	(83,557	)	$	(38,103	)	$	121,660			$	(99,634	)

Condensed Consolidating Statements of Cash Flows

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2015 (Predecessor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash provided by  (used in) operating activities:	$	(7,355	)	$	22,992		$	36,293		$	(27,710	)	$	24,220
Cash flow from investing activities:
Repayments from (loans to) affiliates	7,418			—			—			(7,418		)	—
Capital expenditures	—			(16,994		)	(8,626		)	—			(25,620		)
Payments for derivative instruments	—			(7,595		)	(209		)	—			(7,804		)
Proceeds from sale of fixed assets	—			397			241						638
Net cash provided by         (used in) investing activities	7,418			(24,192		)	(8,594		)	(7,418		)	(32,786		)
Cash flow from financing activities:
(Repayments to) loans from affiliates	—			(7,418		)	—			7,418			—
Dividends to affiliates	—			—			(27,710		)	27,710			—
Short-term debt borrowings	—			2,001			2,505			—			4,506
Revolving Facility borrowings	—			62,000			12,000			—			74,000
Revolving Facility reductions	—			(54,000		)	(12,000		)	—			(66,000		)
Principal payments on long term debt	—			(67		)	—			—			(67		)
Purchase of treasury shares	(63		)	—			—			—			(63		)
Revolver facility refinancing	—			(2,691		)	(31		)	—			(2,722		)
Other	—			(2,850		)	—			—			(2,850		)
Net cash provided by (used in)          financing activities	(63		)	(3,025		)	(25,236		)	35,128			6,804
Net change in cash and    cash equivalents	—			(4,225		)	2,463			—			(1,762		)
Effect of exchange rate changes    on cash and cash equivalents	—			—			(1,283		)	—			(1,283		)
Cash and cash equivalents at    beginning of period	—			5,503			12,047			—			17,550
Cash and cash equivalents    at end of period	$	—		$	1,278		$	13,227		$	—		$	14,505

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Organization And Summary Of Significant Accounting Policies (Details)	Feb. 26, 2016 segment	Jun. 30, 2016 major_product_categories
Accounting Policies [Abstract]
Number of major product categories | major_product_categories		7
Number of Operating Segments | segment	2

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Preferred Share Issuance and Merger (Details) - USD ($)			3 Months Ended	6 Months Ended
	Aug. 11, 2015	May 18, 2015	Sep. 30, 2015	Jun. 30, 2016	Dec. 31, 2015	Aug. 15, 2015	May 17, 2015
Goodwill				$ 171,117,000	$ 172,059,000
Max Reimbursement to Acquiror			$ 500,000
Common Stock, Par or Stated Value Per Share							$ 0.01
Goodwill, Purchase Accounting Adjustments				1,100,000
purchase price adjustment, deferred taxes				$ 2,000,000
Preferred Stock [Member]
Convertible Preferred Stock, Conversion Price							$ 5.05
BCP IV GrafTech Holdings LP [Member]
Goodwill						$ 173,117,000
Amount		$ 854,337,000
Convertible Preferred Stock [Member] | BCP IV GrafTech Holdings LP [Member]
Shares		150,000
Amount	$ 150,000,000	$ 150,000,000
Series A Preferred Stock [Member] | Convertible Preferred Stock [Member] | BCP IV GrafTech Holdings LP [Member]
Shares		136,616
Preferred stock, par value	$ 0.01
Business Combination, Equity Interest Transferred, Percentage of Common Stock Outstanding Before Transaction	19.90%
Series B Preferred Stock [Member] | Convertible Preferred Stock [Member] | BCP IV GrafTech Holdings LP [Member]
Shares		13,384
Preferred stock, par value	$ 0.01
Delayed draw term loan facility | Term Loan Facility
Unused borrowing capacity	$ 40,000,000
Senior Notes | Senior Subordinated Notes Due Nov 2015 [Member]
Early Repayment of Subordinated Debt	$ 200,000,000

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Preferred Share Issuance and Merger - Purchase Consideration (Details) - BCP IV GrafTech Holdings LP [Member] - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Aug. 11, 2015	May 18, 2015
Business Acquisition [Line Items]
Amount		$ 854,337
Convertible preferred equity - Series A and B
Business Acquisition [Line Items]
Shares		150
Unit Price		$ 1,000,000
Amount	$ 150,000	$ 150,000
Merger common equity - common shares
Business Acquisition [Line Items]
Shares		139,397
Unit Price		$ 5,050
Amount		$ 703,955
Net value of options
Business Acquisition [Line Items]
Amount		$ 382

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Preferred Share Issuance and Merger - Net Identifiable Assets Acquired (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015	Aug. 15, 2015
Business Acquisition [Line Items]
Goodwill	$ 171,117	$ 172,059
BCP IV GrafTech Holdings LP [Member]
Business Acquisition [Line Items]
Cash			$ 25,032
Accounts receivable			94,298
Inventories			344,765
Property, plant and equipment			650,405
Intangible assets			155,700
Deferred tax assets			41,606
Prepaid and other current assets			49,716
Other non-current assets			8,428
Accounts payable			(68,005)
Short-term debt			(18,779)
Other accrued liabilities			(53,252)
Long-term debt			(367,811)
Other long-term liabilities			(101,648)
Deferred tax liabilities			(79,235)
Net identifiable assets acquired			681,220
Goodwill			173,117
Net assets acquired			$ 854,337

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Rationalizations (Narrative) (Details) $ in Millions		3 Months Ended	6 Months Ended
	Mar. 02, 2015 USD ($) employee	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve			$ 1.0
2015 Advanced Graphite Materials Rationalization
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve			0.6
Expected number of positions eliminated (employees) | employee	85
Expected cost	$ 10.0
2015 Advanced Graphite Materials Rationalization | Scenario, Forecast
Restructuring Cost and Reserve [Line Items]
Expected cash outlay			8.0
2015 Advanced Graphite Materials Rationalization | Successor
Restructuring Cost and Reserve [Line Items]
Restructuring Costs		$ 3.2	$ 5.8

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Discontinued Operations and Related Assets Held for Sale (Details) - USD ($) $ in Thousands	3 Months Ended		4 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Current Assets:
Total current assets of discontinued operations	$ 92,873		$ 92,873	$ 92,873		$ 98,281
Long-term Assets:
Total long-term assets of discontinued operations						103,975
Current Liabilities:
Total current liabilities of discontinued operations	19,315		19,315	19,315		23,082
Long-term Liabilities:
Long-term liabilities of discontinued operations						1,167
Engineered Solutions [Member] | Discontinued Operations, Held-for-sale [Member]
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]
Net sales	29,930	$ 39,313		59,019	$ 84,030
Cost of sales	24,569	37,591		50,554	78,037
Gross profit	5,361	1,722		8,465	5,993
Research and development	813	764		1,691	1,679
Selling and administrative expenses	5,314	5,544		9,760	11,745
Rationalizations	(255)	1,794		(246)	4,210
Impairment	105,600	0	105,600	105,600	0
Operating loss	(106,111)	(6,380)		(108,340)	(11,641)
Other expense (income)	(81)	(37)		(72)	(64)
Interest expense	951	399		1,670	695
Loss from discontinued operations before income taxes	(106,981)	(6,742)		(109,938)	(12,272)
Benefit from income taxes on discontinued operations	843	1,040		1,236	486
Net (loss) income from discontinued operations	(106,138)	$ (5,702)		(108,702)	(11,786)
Discontinued Operation, Alternative Cash Flow Information [Abstract]
Depreciation and amortization				3,052	7,330
Deferred income taxes				(1,236)	(486)
Capital expenditures				2,513	$ 9,413
Current Assets:
Accounts receivable	19,030		19,030	19,030		20,425
Inventories	77,656		77,656	77,656		77,332
Prepaid expenses and other current assets	924		924	924		524
Total current assets of discontinued operations	97,610		97,610	97,610		98,281
Long-term Assets:
Net property plant and equipment	86,595		86,595	86,595		86,369
Other assets	14,268		14,268	14,268		17,606
Total long-term assets of discontinued operations	100,863		100,863	100,863		103,975
Impairment upon reclassification to discontinued operations	(105,600)		(105,600)	(105,600)		0
Total assets of discontinued operations	92,873		92,873	92,873		202,256
Current Liabilities:
Accounts payable	6,499		6,499	6,499		9,331
Accrued income and other taxes	2,500		2,500	2,500		3,113
Other accrued liabilities	9,336		9,336	9,336		10,638
Total current liabilities of discontinued operations	18,335		18,335	18,335		23,082
Long-term Liabilities:
Long-term liabilities of discontinued operations	980		980	980		1,167
Total liabilities of discontinued operations	$ 19,315		$ 19,315	$ 19,315		$ 24,249

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Segment Reporting (Schedule Of Financial Information Concerning Reportable Segments) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016 USD ($)	Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) segment	Jun. 30, 2015 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			2
Loss from continuing operations before provision for income taxes				$ (65,420)
Predecessor
Segment Reporting Information [Line Items]
Total net sales		$ 125,809		288,303
Total operating loss		(6,615)		(47,189)
Other expense (income), net		733		1,151
Interest expense		8,796		17,421
Interest income		(268)		(341)
Loss from continuing operations before provision for income taxes		(15,876)		(65,420)
Predecessor | Industrial Materials
Segment Reporting Information [Line Items]
Total net sales		125,809		288,303
Total operating loss		4,632		(22,312)
Predecessor | Corporate, R&D and Other
Segment Reporting Information [Line Items]
Total operating loss		$ (11,247)		$ (24,877)
Successor
Segment Reporting Information [Line Items]
Total net sales	$ 115,365		$ 210,941
Total operating loss	(22,614)		(50,033)
Other expense (income), net	(1,198)		(960)
Interest expense	6,436		12,896
Interest income	0		(12)
Loss from continuing operations before provision for income taxes	(27,852)		(61,957)
Successor | Industrial Materials
Segment Reporting Information [Line Items]
Total net sales	115,365		210,941
Total operating loss	(16,291)		(36,538)
Successor | Corporate, R&D and Other
Segment Reporting Information [Line Items]
Total operating loss	$ (6,323)		$ (13,495)

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Benefit Plans (Schedule Of Benefit Plans) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Pension Costs
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 508	$ 506	$ 1,016	$ 1,333
Interest cost	1,498	1,526	2,996	3,052
Expected return on plan assets	(1,310)	(1,354)	(2,620)	(2,708)
Amortization of prior service cost/benefit	0	1	0	2
Net cost	696	679	1,392	1,679
Postretirement Costs
Defined Benefit Plan Disclosure [Line Items]
Service cost	1	4	2	8
Interest cost	272	315	543	630
Amortization of prior service cost/benefit	0	(43)	0	(86)
Net cost	$ 273	$ 276	$ 545	$ 552

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Goodwill And Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		7 Months Ended
	Jun. 30, 2016	Sep. 30, 2015	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Aug. 14, 2015
Goodwill [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year	$ 13,600			$ 13,600
Finite-Lived Intangible Assets, Amortization Expense, Year Two	12,900			12,900
Finite-Lived Intangible Assets, Amortization Expense, Year Three	12,200			12,200
Finite-Lived Intangible Assets, Amortization Expense, Year Four	11,400			11,400
Amortization expense of intangible assets	3,600		$ 4,400	7,200	$ 8,700
Finite-Lived Intangible Assets, Amortization Expense, Year Five	$ 10,700			$ 10,700
Needle Coke
Goodwill [Line Items]
Decrease in market prices		18.00%
Goodwill, impairment loss					$ 35,400	$ 35,381

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Goodwill And Other Intangible Assets (Schedule Of Changes In The Carrying Value Of Goodwill) (Details) - USD ($) $ in Thousands	5 Months Ended	6 Months Ended		7 Months Ended
	Dec. 31, 2015	Jun. 30, 2016	Jun. 30, 2015	Aug. 14, 2015
Goodwill [Roll Forward]
Beginning Balance		$ 172,059
Ending Balance	$ 172,059	171,117
Predecessor
Goodwill [Roll Forward]
Beginning Balance	384,132		$ 420,129	$ 420,129
Adjustments				(616)
Ending Balance				384,132
Successor
Goodwill [Roll Forward]
Beginning Balance		172,059
Adjustments	1,641	1,058
Goodwill transferred to discontinued operations		(2,000)
Ending Balance	$ 172,059	$ 171,117
Needle Coke [Member]
Goodwill [Roll Forward]
Impairment			$ (35,400)	$ (35,381)

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Goodwill And Other Intangible Assets (Schedule Of Intangible Assets With Determinable Useful Lives By Major Category) (Details) - Predecessor - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Goodwill [Line Items]
Gross Carrying Amount	$ 142,300	$ 140,600
Accumulated Amortization & Impairment	(12,779)	(5,432)
Net Carrying Amount	129,521	135,168
Trade Name
Goodwill [Line Items]
Gross Carrying Amount	22,500	22,000
Accumulated Amortization & Impairment	(2,075)	(896)
Net Carrying Amount	20,425	21,104
Technological Know-How
Goodwill [Line Items]
Gross Carrying Amount	55,300	54,100
Accumulated Amortization & Impairment	(6,767)	(2,934)
Net Carrying Amount	48,533	51,166
Customer-Related Intangible
Goodwill [Line Items]
Gross Carrying Amount	64,500	64,500
Accumulated Amortization & Impairment	(3,937)	(1,602)
Net Carrying Amount	$ 60,563	$ 62,898

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Debt And Liquidity (Narrative) (Details) - USD ($)	Feb. 27, 2015	Jun. 30, 2016	Apr. 27, 2016	Dec. 31, 2015	Jul. 28, 2015	Apr. 23, 2014	Nov. 20, 2012
Debt Instrument [Line Items]
Fair value of debt		$ 335,400,000
Long-term Debt		380,457,000		$ 367,227,000
Minimum Liquidity			$ 25,000,000
Outstanding letters of credit		13,500,000
Term Loan Balance		37,000,000
Revolving Credit Facility Balance		72,000,000
Stated interest rate				6.375%
Loan balance, net of unamortized discount		16,482,000		$ 4,772,000
12 Month Trailing EBITDA		75,000,000
12 Month Trailing EBITDA Minimum (Low End)			40,000,000
12 Month Trailing EBITDA Minimum (High End)			35,000,000
Senior Notes
Debt Instrument [Line Items]
Long-term Debt		270,961,000		$ 267,827,000
Principal amount issued							$ 300,000,000
Stated interest rate							6.375%
Redemption price, percentage of principal, prior to November 15, 2016							100.00%
Redemption price, percentage of principal, prior to November 15, 2015							106.375%
Repurchase price, percentage of principal, due to change in control							101.00%
Senior Notes | Minimum
Debt Instrument [Line Items]
Unpaid indebtedness or accelerated proceeds exceeds		50,000,000
Unpaid judgment or decree in excess of		$ 50,000,000
Senior Notes | Maximum
Debt Instrument [Line Items]
Percentage of principal allowed to redeem							35.00%
Amended and Restated Credit Agreement | Minimum
Debt Instrument [Line Items]
Undrawn commitment fee	0.35%
Amended and Restated Credit Agreement | Maximum
Debt Instrument [Line Items]
Undrawn commitment fee	0.70%
Amended and Restated Credit Agreement | LIBOR | Minimum
Debt Instrument [Line Items]
Margin spread on variable interest rate	2.25%
Amended and Restated Credit Agreement | LIBOR | Maximum
Debt Instrument [Line Items]
Margin spread on variable interest rate	4.75%
Term Loan Facility | Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Borrowing capacity	$ 40,000,000
Term Loan Facility | Amended and Restated Credit Agreement July 2015 [Member]
Debt Instrument [Line Items]
Borrowing capacity					$ 40,000,000
Revolving Credit Facility | Amended and Restated Credit Agreement
Debt Instrument [Line Items]
Borrowing capacity						$ 400,000,000
Revolving Credit Facility | Amended and Restated Credit Agreement July 2015 [Member]
Debt Instrument [Line Items]
Borrowing capacity			$ 225,000,000		$ 375,000,000

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Debt And Liquidity (Schedule Of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Total Debt	$ 380,457	$ 367,227
Less: Short-term Debt	(16,482)	(4,772)
Long-term debt	363,975	362,455
Senior Notes
Debt Instrument [Line Items]
Total Debt	270,961	267,827
Other Debt
Debt Instrument [Line Items]
Total Debt	496	1,400
Credit Facility (Revolving Facility and Term Loan Facility)
Debt Instrument [Line Items]
Credit Facility (Revolving Facility and Term Loan Facility)	$ 109,000	$ 98,000

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Debt And Liquidity (Schedule of Short-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Short-term Debt [Line Items]
Total Short-Term Debt	$ 16,482	$ 4,772

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Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Inventory [Line Items]
Raw materials and supplies	$ 60,080		$ 60,080		$ 66,201
Work in process	65,055		65,055		89,198
Finished goods	62,105		62,105		62,731
Inventories, net	187,240		187,240		218,130
Predecessor
Inventory [Line Items]
Inventory write-downs		$ 0		$ 0
Successor
Inventory [Line Items]
Inventories, net	187,240		187,240		$ 218,130
Inventory write-downs	$ 3,504		$ 14,625

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Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Effective interest rate, revolving credit facility			4.22%	2.68%
Debt effective interest rate	4.22%		4.22%		2.49%
Stated interest rate					6.375%
Predecessor
Debt Instrument [Line Items]
Interest incurred on debt		$ 4,883		$ 9,757
Amortization of discount on Senior Subordinated Notes		3,261		6,468
Accretion of fair value adjustment on Senior Notes		0		0
Amortization of debt issuance costs		652		1,196
Total interest expense		$ 8,796		$ 17,421
Successor
Debt Instrument [Line Items]
Interest incurred on debt	$ 4,819		$ 9,716
Amortization of discount on Senior Subordinated Notes	0		0
Accretion of fair value adjustment on Senior Notes	1,571		3,134
Amortization of debt issuance costs	46		46
Total interest expense	$ 6,436		$ 12,896

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Contingencies (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2016 USD ($)
Loss Contingency [Abstract]
Balance as of December 31, 2015	$ 388
Product warranty adjustments	879
Payments and settlements	(475)
Balance as of June 30, 2016	$ 792

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Income Taxes (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
U.S. statutory rate	35.00%
Effective tax rate	9.50%	(1.90%)
Unrecognized tax benefits	$ 3.9
Unrecognized tax benefits that would have a favorable impact on effective tax rate	$ 3.1

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Income Taxes (Summary Of Provision For Income Taxes) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Contingency [Line Items]
Pretax loss				$ (65,420)
Effective tax rates			9.50%	(1.90%)
Predecessor
Income Tax Contingency [Line Items]
Tax (benefit) expense		$ 1,239		$ 1,219
Pretax loss		$ (15,876)		$ (65,420)
Effective tax rates		(7.80%)
Successor
Income Tax Contingency [Line Items]
Tax (benefit) expense	$ (5,591)		$ (5,886)
Pretax loss	$ (27,852)		$ (61,957)
Effective tax rates			20.10%

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Derivative Instruments (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Dec. 31, 2015
Derivative [Line Items]
Intercompany debt designated as a non-derivative net investment hedging instrument	$ 12,500,000		$ 12,500,000	$ 11,800,000
Gain (loss) currency translation adjustment	$ 0	$ 100,000
Foreign Currency Derivatives
Derivative [Line Items]
Notional amounts of foreign currency derivatives				$ 33,200,000
Maximum | Foreign Currency Derivatives
Derivative [Line Items]
Derivative maturities			September, 2016

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Guarantor Information (Textual) (Details) - USD ($)	Dec. 31, 2015	Nov. 20, 2012
Debt Instrument [Line Items]
Stated interest rate	6.375%
Senior Notes
Debt Instrument [Line Items]
Principal amount issued		$ 300,000,000
Stated interest rate		6.375%

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Guarantor Infromation (Balance Sheet) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Cash and cash equivalents	$ 13,409	$ 6,927
Accounts receivable - affiliates	0	0
Accounts receivable - trade	80,459	82,390
Inventories	187,240	218,130
Prepaid expenses and other current assets	23,634	21,157
Current assets of discontinued operations	92,873	98,281
Total current assets	397,615	426,885
Investment in affiliates	0	0
Net property, plant and equipment	537,298	551,163
Deferred income taxes	18,476	15,326
Goodwill	171,117	172,059
Notes receivable - affiliate	0	0
Other assets	147,767	152,613
Long-term assets of discontinued operations		103,975
Total assets	1,272,273	1,422,021
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - affiliate	0	0
Accounts payable - trade	45,233	40,147
Short-term debt	16,482	4,772
Accrued income and other taxes	5,562	5,933
Rationalizations	401	1,195
Other accrued liabilities	25,063	20,994
Short-term liabilities of discontinued operations	19,315	23,082
Total current liabilities	112,056	96,123
Long-term debt - affiliate	0	0
Long-term debt - third party	363,975	362,455
Other long-term obligations	91,177	94,318
Deferred income taxes	47,609	57,430
Long-term liabilities of discontinued operations		1,167
Total stockholders' equity	657,456	810,528
Total liabilities and stockholders’ equity	1,272,273	1,422,021
Parent
ASSETS
Cash and cash equivalents	0	0
Accounts receivable - affiliates	51,592	51,592
Accounts receivable - trade	0	0
Inventories	0	0
Prepaid expenses and other current assets	0	0
Current assets of discontinued operations	0	0
Total current assets	51,592	51,592
Investment in affiliates	928,091	1,068,027
Net property, plant and equipment	0	0
Deferred income taxes	0	0
Goodwill	0	0
Notes receivable - affiliate	0	0
Other assets	0	0
Long-term assets of discontinued operations		0
Total assets	979,683	1,119,619
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - affiliate	236	159
Accounts payable - trade	0	0
Short-term debt	0	0
Accrued income and other taxes	0	0
Rationalizations	0	0
Other accrued liabilities	2,444	2,444
Short-term liabilities of discontinued operations	0	0
Total current liabilities	2,680	2,603
Long-term debt - affiliate	48,586	38,661
Long-term debt - third party	270,961	267,827
Other long-term obligations	0	0
Deferred income taxes	0	0
Long-term liabilities of discontinued operations		0
Total stockholders' equity	657,456	810,528
Total liabilities and stockholders’ equity	979,683	1,119,619
Guarantors
ASSETS
Cash and cash equivalents	737	646
Accounts receivable - affiliates	3,657	9,803
Accounts receivable - trade	8,642	7,599
Inventories	44,003	54,613
Prepaid expenses and other current assets	8,146	7,913
Current assets of discontinued operations	79,908	81,638
Total current assets	145,093	162,212
Investment in affiliates	632,784	668,113
Net property, plant and equipment	201,677	209,633
Deferred income taxes	0	0
Goodwill	70,399	72,399
Notes receivable - affiliate	55,999	46,074
Other assets	75,300	79,367
Long-term assets of discontinued operations		99,457
Total assets	1,181,252	1,337,255
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - affiliate	64,294	71,099
Accounts payable - trade	8,178	11,191
Short-term debt	11,341	4,636
Accrued income and other taxes	1,109	2,824
Rationalizations	384	995
Other accrued liabilities	6,190	4,847
Short-term liabilities of discontinued operations	17,006	18,384
Total current liabilities	108,502	113,976
Long-term debt - affiliate	0	0
Long-term debt - third party	87,105	93,758
Other long-term obligations	57,305	60,508
Deferred income taxes	249	248
Long-term liabilities of discontinued operations		738
Total stockholders' equity	928,091	1,068,027
Total liabilities and stockholders’ equity	1,181,252	1,337,255
Non-Guarantors
ASSETS
Cash and cash equivalents	12,672	6,281
Accounts receivable - affiliates	12,696	19,505
Accounts receivable - trade	71,817	74,791
Inventories	143,237	163,517
Prepaid expenses and other current assets	15,488	13,244
Current assets of discontinued operations	18,008	17,520
Total current assets	273,918	294,858
Investment in affiliates	0	0
Net property, plant and equipment	335,621	341,530
Deferred income taxes	18,476	15,326
Goodwill	100,718	99,660
Notes receivable - affiliate	0	0
Other assets	72,467	73,246
Long-term assets of discontinued operations		4,518
Total assets	801,200	829,138
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - affiliate	3,415	9,642
Accounts payable - trade	37,055	28,956
Short-term debt	5,141	136
Accrued income and other taxes	4,453	3,109
Rationalizations	17	200
Other accrued liabilities	16,429	13,703
Short-term liabilities of discontinued operations	7,352	5,575
Total current liabilities	73,862	61,321
Long-term debt - affiliate	7,413	7,413
Long-term debt - third party	5,909	870
Other long-term obligations	33,872	33,810
Deferred income taxes	47,360	57,182
Long-term liabilities of discontinued operations		429
Total stockholders' equity	632,784	668,113
Total liabilities and stockholders’ equity	801,200	829,138
Consolidating Entries and Eliminations
ASSETS
Cash and cash equivalents	0	0
Accounts receivable - affiliates	(67,945)	(80,900)
Accounts receivable - trade	0	0
Inventories	0	0
Prepaid expenses and other current assets	0	0
Current assets of discontinued operations	(5,043)	(877)
Total current assets	(72,988)	(81,777)
Investment in affiliates	(1,560,875)	(1,736,140)
Net property, plant and equipment	0	0
Deferred income taxes	0	0
Goodwill	0	0
Notes receivable - affiliate	(55,999)	(46,074)
Other assets	0	0
Long-term assets of discontinued operations		0
Total assets	(1,689,862)	(1,863,991)
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - affiliate	(67,945)	(80,900)
Accounts payable - trade	0	0
Short-term debt	0	0
Accrued income and other taxes	0	0
Rationalizations	0	0
Other accrued liabilities	0	0
Short-term liabilities of discontinued operations	(5,043)	(877)
Total current liabilities	(72,988)	(81,777)
Long-term debt - affiliate	(55,999)	(46,074)
Long-term debt - third party	0	0
Other long-term obligations	0	0
Deferred income taxes	0	0
Long-term liabilities of discontinued operations		0
Total stockholders' equity	(1,560,875)	(1,736,140)
Total liabilities and stockholders’ equity	$ (1,689,862)	$ (1,863,991)

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Guarantor Information (Income and Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Successor
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates	$ 0		$ 0
Sales - third party	115,365		210,941
Net sales	115,365		210,941
Cost of sales	120,266		217,696
Lower of cost or market inventory adjustment	3,504		14,625
Gross profit	(8,405)		(21,380)
Research and development	786		1,438
Selling and administrative expenses	13,487		27,157
Impairments	0		0
Rationalizations	(64)		58
Operating loss	(22,614)		(50,033)
Other (income) expense, net	(1,198)		(960)
Interest expense - affiliate	0		0
Interest expense - third party	6,436		12,896
Interest income - affiliate	0		0
Interest income	0		(12)
Income (Loss) from continuing operations before provision for income taxes	(27,852)		(61,957)
(Benefit) provision for income taxes	(5,591)		(5,886)
Equity in loss from continuing operations of subsidiary	0		0
Net (loss) income from continuing operations	(22,261)		(56,071)
Loss from discontinued operations, net of tax	(106,138)		(108,702)
Equity in loss from discontinued operations of subsidiary	0		0
Net (loss) income from discontinued operations	(106,138)		(108,702)
Net loss	(128,399)		(164,773)
Statements of Comprehensive Income
Net income	(128,399)		(164,773)
Other comprehensive income (loss), net of tax	(936)		11,701
Comprehensive (loss) income	(129,335)		(153,072)
Successor | Parent
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates	0		0
Sales - third party	0		0
Net sales	0		0
Cost of sales	0		0
Lower of cost or market inventory adjustment	0		0
Gross profit	0		0
Research and development	0		0
Selling and administrative expenses	0		0
Impairments	0
Rationalizations	0		0
Operating loss	0		0
Other (income) expense, net	0		6
Interest expense - affiliate	236		434
Interest expense - third party	6,353		12,697
Interest income - affiliate	0		0
Interest income	0		0
Income (Loss) from continuing operations before provision for income taxes	(6,589)		(13,137)
(Benefit) provision for income taxes	0		0
Equity in loss from continuing operations of subsidiary	(15,672)		(42,934)
Net (loss) income from continuing operations	(22,261)		(56,071)
Loss from discontinued operations, net of tax	0		0
Equity in loss from discontinued operations of subsidiary	(106,138)		(108,702)
Net (loss) income from discontinued operations	(106,138)		(108,702)
Net loss	(128,399)		(164,773)
Statements of Comprehensive Income
Net income	(128,399)		(164,773)
Other comprehensive income (loss), net of tax	(936)		11,701
Comprehensive (loss) income	(129,335)		(153,072)
Successor | Guarantors
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates	38,238		79,137
Sales - third party	21,824		42,644
Net sales	60,062		121,781
Cost of sales	43,760		105,414
Lower of cost or market inventory adjustment	1,761		3,782
Gross profit	14,541		12,585
Research and development	786		1,438
Selling and administrative expenses	3,688		9,674
Impairments	0
Rationalizations	28		115
Operating loss	10,039		1,358
Other (income) expense, net	472		742
Interest expense - affiliate	0		0
Interest expense - third party	13		54
Interest income - affiliate	(236)		(434)
Interest income	0		0
Income (Loss) from continuing operations before provision for income taxes	9,790		996
(Benefit) provision for income taxes	238		255
Equity in loss from continuing operations of subsidiary	(25,224)		(43,675)
Net (loss) income from continuing operations	(15,672)		(42,934)
Loss from discontinued operations, net of tax	(103,752)		(105,330)
Equity in loss from discontinued operations of subsidiary	(2,386)		(3,372)
Net (loss) income from discontinued operations	(106,138)		(108,702)
Net loss	(121,810)		(151,636)
Statements of Comprehensive Income
Net income	(121,810)		(151,636)
Other comprehensive income (loss), net of tax	(936)		11,701
Comprehensive (loss) income	(122,746)		(139,935)
Successor | Non-Guarantors
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates	16,081		35,724
Sales - third party	93,541		168,297
Net sales	109,622		204,021
Cost of sales	130,825		227,143
Lower of cost or market inventory adjustment	1,743		10,843
Gross profit	(22,946)		(33,965)
Research and development	0		0
Selling and administrative expenses	9,799		17,483
Impairments	0
Rationalizations	(92)		(57)
Operating loss	(32,653)		(51,391)
Other (income) expense, net	(1,670)		(1,708)
Interest expense - affiliate	0		0
Interest expense - third party	70		145
Interest income - affiliate	0		0
Interest income	0		(12)
Income (Loss) from continuing operations before provision for income taxes	(31,053)		(49,816)
(Benefit) provision for income taxes	(5,829)		(6,141)
Equity in loss from continuing operations of subsidiary	0		0
Net (loss) income from continuing operations	(25,224)		(43,675)
Loss from discontinued operations, net of tax	(2,386)		(3,372)
Net (loss) income from discontinued operations	(2,386)		(3,372)
Net loss	(27,610)		(47,047)
Statements of Comprehensive Income
Net income	(27,610)		(47,047)
Other comprehensive income (loss), net of tax	(936)		11,701
Comprehensive (loss) income	(28,546)		(35,346)
Predecessor
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates		$ 0		$ 0
Sales - third party		125,809		288,303
Net sales		125,809		288,303
Cost of sales		111,591		257,593
Lower of cost or market inventory adjustment		0		0
Gross profit		14,218		30,710
Research and development		1,150		2,667
Selling and administrative expenses		19,709		39,798
Impairments		0		35,381
Rationalizations		(26)		53
Operating loss		(6,615)		(47,189)
Other (income) expense, net		733		1,151
Interest expense - affiliate		0		0
Interest expense - third party		8,796		17,421
Interest income - affiliate		0		0
Interest income		(268)		(341)
Income (Loss) from continuing operations before provision for income taxes		(15,876)		(65,420)
(Benefit) provision for income taxes		1,239		1,219
Equity in loss from continuing operations of subsidiary		0		0
Net (loss) income from continuing operations		(17,115)		(66,639)
Loss from discontinued operations, net of tax		(5,702)		(11,786)
Equity in loss from discontinued operations of subsidiary		0		0
Net (loss) income from discontinued operations		(5,702)		(11,786)
Net loss		(22,817)		(78,425)
Statements of Comprehensive Income
Net income		(22,817)		(78,425)
Other comprehensive income (loss), net of tax		7,557		(21,209)
Comprehensive (loss) income		(15,260)		(99,634)
Predecessor | Parent
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates		0		0
Sales - third party		0		0
Net sales		0		0
Cost of sales		0		0
Gross profit		0		0
Research and development		0		0
Selling and administrative expenses		0		0
Impairments				0
Rationalizations		0		0
Operating loss		0		0
Other (income) expense, net		0		0
Interest expense - affiliate		0		0
Interest expense - third party		8,220		16,382
Interest income - affiliate		(145)		(305)
Interest income		0		0
Income (Loss) from continuing operations before provision for income taxes		(8,075)		(16,077)
(Benefit) provision for income taxes		0		0
Equity in loss from continuing operations of subsidiary		(9,040)		(50,562)
Net (loss) income from continuing operations		(17,115)		(66,639)
Loss from discontinued operations, net of tax		0		0
Equity in loss from discontinued operations of subsidiary		(5,702)		(11,786)
Net (loss) income from discontinued operations		(5,702)		(11,786)
Net loss		(22,817)		(78,425)
Statements of Comprehensive Income
Net income		(22,817)		(78,425)
Other comprehensive income (loss), net of tax		7,557		(21,209)
Comprehensive (loss) income		(15,260)		(99,634)
Predecessor | Guarantors
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates		51,654		97,324
Sales - third party		30,045		64,538
Net sales		81,699		161,862
Cost of sales		69,923		148,325
Gross profit		11,776		13,537
Research and development		1,150		2,667
Selling and administrative expenses		8,301		18,094
Impairments				35,381
Rationalizations		(29)		(29)
Operating loss		2,354		(42,576)
Other (income) expense, net		457		791
Interest expense - affiliate		145		305
Interest expense - third party		459		828
Interest income - affiliate		0		0
Interest income		0		0
Income (Loss) from continuing operations before provision for income taxes		1,293		(44,500)
(Benefit) provision for income taxes		(4,043)		(3,692)
Equity in loss from continuing operations of subsidiary		(14,376)		(9,754)
Net (loss) income from continuing operations		(9,040)		(50,562)
Loss from discontinued operations, net of tax		(4,340)		(5,644)
Equity in loss from discontinued operations of subsidiary		(1,362)		(6,142)
Net (loss) income from discontinued operations		(5,702)		(11,786)
Net loss		(14,742)		(62,348)
Statements of Comprehensive Income
Net income		(14,742)		(62,348)
Other comprehensive income (loss), net of tax		7,557		(21,209)
Comprehensive (loss) income		(7,185)		(83,557)
Predecessor | Non-Guarantors
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates		15,503		42,278
Sales - third party		95,764		223,765
Net sales		111,267		266,043
Cost of sales		108,825		248,870
Gross profit		2,442		17,173
Research and development		0		0
Selling and administrative expenses		11,408		21,704
Impairments				0
Rationalizations		3		82
Operating loss		(8,969)		(4,613)
Other (income) expense, net		276		360
Interest expense - affiliate		0		0
Interest expense - third party		117		211
Interest income - affiliate		0		0
Interest income		(268)		(341)
Income (Loss) from continuing operations before provision for income taxes		(9,094)		(4,843)
(Benefit) provision for income taxes		5,282		4,911
Equity in loss from continuing operations of subsidiary		0		0
Net (loss) income from continuing operations		(14,376)		(9,754)
Loss from discontinued operations, net of tax		(1,362)		(6,142)
Equity in loss from discontinued operations of subsidiary		0
Net (loss) income from discontinued operations		(1,362)		(6,142)
Net loss		(15,738)		(15,896)
Statements of Comprehensive Income
Net income		(15,738)		(15,896)
Other comprehensive income (loss), net of tax		6,623		(22,207)
Comprehensive (loss) income		(9,115)		(38,103)
Consolidating Entries and Eliminations | Successor
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates	(54,319)		(114,861)
Sales - third party	0		0
Net sales	(54,319)		(114,861)
Cost of sales	(54,319)		(114,861)
Lower of cost or market inventory adjustment	0		0
Gross profit	0		0
Research and development	0		0
Selling and administrative expenses	0		0
Impairments	0
Rationalizations	0		0
Operating loss	0		0
Other (income) expense, net	0		0
Interest expense - affiliate	(236)		(434)
Interest expense - third party	0		0
Interest income - affiliate	236		434
Interest income	0		0
Income (Loss) from continuing operations before provision for income taxes	0		0
(Benefit) provision for income taxes	0		0
Equity in loss from continuing operations of subsidiary	40,896		86,609
Net (loss) income from continuing operations	40,896		86,609
Loss from discontinued operations, net of tax	0		0
Equity in loss from discontinued operations of subsidiary	108,524		112,074
Net (loss) income from discontinued operations	108,524		112,074
Net loss	149,420		198,683
Statements of Comprehensive Income
Net income	149,420		198,683
Other comprehensive income (loss), net of tax	1,872		(23,402)
Comprehensive (loss) income	$ 151,292		$ 175,281
Consolidating Entries and Eliminations | Predecessor
Condensed Financial Statements, Captions [Line Items]
Sales - affiliates		(67,157)		(139,602)
Sales - third party		0		0
Net sales		(67,157)		(139,602)
Cost of sales		(67,157)		(139,602)
Gross profit		0		0
Research and development		0		0
Selling and administrative expenses		0		0
Impairments				0
Rationalizations		0		0
Operating loss		0		0
Other (income) expense, net		0		0
Interest expense - affiliate		(145)		(305)
Interest expense - third party		0		0
Interest income - affiliate		145		305
Interest income		0		0
Income (Loss) from continuing operations before provision for income taxes		0		0
(Benefit) provision for income taxes		0		0
Equity in loss from continuing operations of subsidiary		23,416		60,316
Net (loss) income from continuing operations		23,416		60,316
Loss from discontinued operations, net of tax		0		0
Equity in loss from discontinued operations of subsidiary		7,064		17,928
Net (loss) income from discontinued operations		7,064		17,928
Net loss		30,480		78,244
Statements of Comprehensive Income
Net income		30,480		78,244
Other comprehensive income (loss), net of tax		(14,180)		43,416
Comprehensive (loss) income		$ 16,300		$ 121,660

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Guarantor Infromation (Cash Flows) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flow from financing activities:
Cash and cash equivalents at beginning of period	$ 6,927
Cash and cash equivalents at end of period	13,409
Parent
Cash flow from financing activities:
Cash and cash equivalents at beginning of period	0
Cash and cash equivalents at end of period	0
Guarantors
Cash flow from financing activities:
Cash and cash equivalents at beginning of period	646
Cash and cash equivalents at end of period	737
Non-Guarantors
Cash flow from financing activities:
Cash and cash equivalents at beginning of period	6,281
Cash and cash equivalents at end of period	12,672
Successor
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	11,185
Cash flow from investing activities:
(Loans to) repayments from affiliates	0
Capital expenditures	(15,140)
Proceeds from derivative instruments	(721)
Proceeds from the sale of assets	557
Net cash used in investing activities	(15,304)
Cash flow from financing activities:
Loans from (repayments to) affiliates	0
Short-term debt borrowings	11,004
Revolving Facility borrowings	32,000
Revolving Facility reductions	(32,000)
Principal payments on long term debt	(69)
Purchase of treasury shares	0
Revolving Facility refinancing	(922)
Other	0
Net cash provided by financing activities	10,013
Net change in cash and cash equivalents	5,894
Effect of exchange rate changes on cash and cash equivalents	588
Cash and cash equivalents at beginning of period	6,927
Cash and cash equivalents at end of period	13,409
Successor | Parent
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	(9,568)
Cash flow from investing activities:
(Loans to) repayments from affiliates	0
Capital expenditures	0
Proceeds from derivative instruments	0
Proceeds from the sale of assets	0
Net cash used in investing activities	0
Cash flow from financing activities:
Loans from (repayments to) affiliates	9,568
Short-term debt borrowings	0
Revolving Facility borrowings	0
Revolving Facility reductions	0
Principal payments on long term debt	0
Revolving Facility refinancing	0
Net cash provided by financing activities	9,568
Net change in cash and cash equivalents	0
Effect of exchange rate changes on cash and cash equivalents	0
Cash and cash equivalents at beginning of period	0
Cash and cash equivalents at end of period	0
Successor | Guarantors
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	14,014
Cash flow from investing activities:
(Loans to) repayments from affiliates	(9,568)
Capital expenditures	(4,825)
Proceeds from derivative instruments
Proceeds from the sale of assets	458
Net cash used in investing activities	(13,935)
Cash flow from financing activities:
Loans from (repayments to) affiliates	0
Short-term debt borrowings	6,002
Revolving Facility borrowings	27,000
Revolving Facility reductions	(32,000)
Principal payments on long term debt	(69)
Revolving Facility refinancing	(922)
Net cash provided by financing activities	11
Net change in cash and cash equivalents	90
Effect of exchange rate changes on cash and cash equivalents	0
Cash and cash equivalents at beginning of period	646
Cash and cash equivalents at end of period	736
Successor | Non-Guarantors
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	6,739
Cash flow from investing activities:
(Loans to) repayments from affiliates	0
Capital expenditures	(10,315)
Proceeds from derivative instruments	(721)
Proceeds from the sale of assets	99
Net cash used in investing activities	(10,937)
Cash flow from financing activities:
Loans from (repayments to) affiliates	0
Short-term debt borrowings	5,002
Revolving Facility borrowings	5,000
Revolving Facility reductions	0
Principal payments on long term debt	0
Revolving Facility refinancing	0
Net cash provided by financing activities	10,002
Net change in cash and cash equivalents	5,804
Effect of exchange rate changes on cash and cash equivalents	588
Cash and cash equivalents at beginning of period	6,281
Cash and cash equivalents at end of period	12,673
Predecessor
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities		$ 24,220
Cash flow from investing activities:
(Loans to) repayments from affiliates		0
Capital expenditures		(25,620)
Proceeds from derivative instruments		(7,804)
Proceeds from the sale of assets		638
Net cash used in investing activities		(32,786)
Cash flow from financing activities:
Loans from (repayments to) affiliates		0
Dividends to affiliates		0
Short-term debt borrowings		4,506
Revolving Facility borrowings		74,000
Revolving Facility reductions		(66,000)
Principal payments on long term debt		(67)
Purchase of treasury shares		(63)
Revolving Facility refinancing		(2,722)
Other		(2,850)
Net cash provided by financing activities		6,804
Net change in cash and cash equivalents		(1,762)
Effect of exchange rate changes on cash and cash equivalents		(1,283)
Cash and cash equivalents at beginning of period		17,550
Cash and cash equivalents at end of period		14,505
Predecessor | Parent
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities		(7,355)
Cash flow from investing activities:
(Loans to) repayments from affiliates		7,418
Capital expenditures		0
Proceeds from derivative instruments		0
Proceeds from the sale of assets		0
Net cash used in investing activities		7,418
Cash flow from financing activities:
Loans from (repayments to) affiliates		0
Dividends to affiliates		0
Short-term debt borrowings		0
Revolving Facility borrowings		0
Revolving Facility reductions		0
Principal payments on long term debt		0
Purchase of treasury shares		(63)
Revolving Facility refinancing		0
Other		0
Net cash provided by financing activities		(63)
Net change in cash and cash equivalents		0
Effect of exchange rate changes on cash and cash equivalents		0
Cash and cash equivalents at beginning of period		0
Cash and cash equivalents at end of period		0
Predecessor | Guarantors
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities		22,992
Cash flow from investing activities:
(Loans to) repayments from affiliates		0
Capital expenditures		(16,994)
Proceeds from derivative instruments		(7,595)
Proceeds from the sale of assets		397
Net cash used in investing activities		(24,192)
Cash flow from financing activities:
Loans from (repayments to) affiliates		(7,418)
Dividends to affiliates		0
Short-term debt borrowings		2,001
Revolving Facility borrowings		62,000
Revolving Facility reductions		(54,000)
Principal payments on long term debt		(67)
Purchase of treasury shares		0
Revolving Facility refinancing		(2,691)
Other		(2,850)
Net cash provided by financing activities		(3,025)
Net change in cash and cash equivalents		(4,225)
Effect of exchange rate changes on cash and cash equivalents		0
Cash and cash equivalents at beginning of period		5,503
Cash and cash equivalents at end of period		1,278
Predecessor | Non-Guarantors
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities		36,293
Cash flow from investing activities:
(Loans to) repayments from affiliates		0
Capital expenditures		(8,626)
Proceeds from derivative instruments		(209)
Proceeds from the sale of assets		241
Net cash used in investing activities		(8,594)
Cash flow from financing activities:
Loans from (repayments to) affiliates		0
Dividends to affiliates		(27,710)
Short-term debt borrowings		2,505
Revolving Facility borrowings		12,000
Revolving Facility reductions		(12,000)
Principal payments on long term debt		0
Purchase of treasury shares		0
Revolving Facility refinancing		(31)
Other		0
Net cash provided by financing activities		(25,236)
Net change in cash and cash equivalents		2,463
Effect of exchange rate changes on cash and cash equivalents		(1,283)
Cash and cash equivalents at beginning of period		12,047
Cash and cash equivalents at end of period		13,227
Consolidating Entries and Eliminations
Cash flow from financing activities:
Cash and cash equivalents at beginning of period	0
Cash and cash equivalents at end of period	0
Consolidating Entries and Eliminations | Successor
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities	0
Cash flow from investing activities:
(Loans to) repayments from affiliates	9,568
Capital expenditures	0
Proceeds from derivative instruments	0
Proceeds from the sale of assets	0
Net cash used in investing activities	9,568
Cash flow from financing activities:
Loans from (repayments to) affiliates	(9,568)
Short-term debt borrowings	0
Revolving Facility borrowings	0
Revolving Facility reductions	0
Principal payments on long term debt	0
Revolving Facility refinancing	0
Net cash provided by financing activities	(9,568)
Net change in cash and cash equivalents	0
Effect of exchange rate changes on cash and cash equivalents	0
Cash and cash equivalents at beginning of period	0
Cash and cash equivalents at end of period	$ 0
Consolidating Entries and Eliminations | Predecessor
Condensed Financial Statements, Captions [Line Items]
Net cash (used in) provided by operating activities		(27,710)
Cash flow from investing activities:
(Loans to) repayments from affiliates		(7,418)
Capital expenditures		0
Proceeds from derivative instruments		0
Net cash used in investing activities		(7,418)
Cash flow from financing activities:
Loans from (repayments to) affiliates		7,418
Dividends to affiliates		27,710
Short-term debt borrowings		0
Revolving Facility borrowings		0
Revolving Facility reductions		0
Principal payments on long term debt		0
Purchase of treasury shares		0
Revolving Facility refinancing		0
Other		0
Net cash provided by financing activities		35,128
Net change in cash and cash equivalents		0
Effect of exchange rate changes on cash and cash equivalents		0
Cash and cash equivalents at beginning of period		0
Cash and cash equivalents at end of period		$ 0