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Segment Information
 6 Months Ended
Jun. 30, 2012
Segment Information [Abstract]  
Segment Information

Note 13: Segment Information

 

                                 
   

Six Months Ended

June 30,

    

Three Months Ended

June 30,

  
  2012     2011     2012     2011  
        (In Thousands)        

Net sales:

                                

Climate Control

   $ 130,304     $ 140,824     $ 67,546     $ 77,175  

Chemical (1)

     262,339       267,051       138,134       155,620  

Other

     6,877       5,237       3,595       2,824  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 399,520     $ 413,112     $ 209,275     $ 235,619  
   

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit: (2)

                                

Climate Control

   $ 40,435     $ 44,881     $ 20,989     $ 23,395  

Chemical (1)

     67,498       79,112       43,500       47,644  

Other

     2,246       1,947       1,246       1,047  
   

 

 

    

 

 

    

 

 

    

 

 

  
    $ 110,179     $ 125,940     $ 65,735     $ 72,086  
   

 

 

    

 

 

    

 

 

    

 

 

  

Operating income: (3)

                                

Climate Control

   $ 13,151     $ 17,619     $ 7,313     $ 9,178  

Chemical (1)

     59,494       71,818       39,147       42,720  

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

     (7,240 )      (7,126 )      (4,137 )      (3,624 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  
      65,405       82,311       42,323       48,274  

Interest expense

     (2,311 )      (3,580 )      (1,179 )      (1,868 ) 

Losses on extinguishment of debt

     —         (136 )      —         (136 ) 

Non-operating other income (expense), net:

                                

Climate Control

     —         1       —         —    

Chemical

     —         1       —         1  

Corporate and other business operations

     272       3       267       (3 ) 

Provisions for income taxes

     (23,253 )      (29,149 )      (15,451 )      (17,492 ) 

Equity in earnings (losses) of affiliate-Climate Control

     341       207       170       (78 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Income from continuing operations

   $ 40,454     $ 49,658     $ 26,130     $ 28,698  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

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

 

                                 
   

Six Months Ended

June 30,

     Three Months Ended
June 30,		  
  2012     2011     2012     2011  
        (In Thousands)        

Gross profit-Other

   $ 2,246     $ 1,947     $ 1,246     $ 1,047  

Selling, general and administrative:

                                

Personnel costs

     (5,530 )      (4,151 )      (3,448 )      (2,541 ) 

Professional fees

     (2,369 )      (2,089 )      (965 )      (947 ) 

All other

     (1,782 )      (2,511 )      (979 )      (817 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Total selling, general and administrative

     (9,681 )      (8,751 )      (5,392 )      (4,305 ) 
         

Other income

     195       76       9       29  

Other expense

     —         (398 )      —         (395 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Total general corporate expenses and other business operations, net

   $ (7,240 )    $ (7,126 )    $ (4,137 )    $ (3,624 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

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

 

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

Climate Control

   $ 122,750     $ 119,323  

Chemical

     231,257       214,246  

Corporate assets and other

     174,089       168,440  
   

 

 

    

 

 

  

Total assets

   $ 528,096     $ 502,009