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Segment Information
 9 Months Ended
Sep. 30, 2014
Segment Reporting [Abstract]  
Segment Information

Note 13: Segment Information

 

     Nine Months Ended
September 30,		     Three Months Ended
September 30,		  
     2014     2013     2014     2013  
     (In Thousands)  

Net sales:

         

Chemical (1)

    $ 345,744      $ 303,017      $ 94,767      $ 104,199   

Climate Control

      196,585        217,490        73,485        69,863   

Other

      8,904        9,745        2,794        3,288   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 551,233      $ 530,252      $ 171,046      $ 177,350   
  

 

 

    

 

 

    

 

 

    

 

 

  

Gross profit (loss): (2)

         

Chemical (1)(3)

    $ 57,161      $ 39,116      $ (521 )    $ 24,610   

Climate Control

      61,628        70,553        23,862        23,168   

Other

      3,188        3,321        1,045        1,131   
  

 

 

    

 

 

    

 

 

    

 

 

  
   $ 121,977      $ 112,990      $ 24,386      $ 48,909   
  

 

 

    

 

 

    

 

 

    

 

 

  

Operating income (loss): (4)

         

Chemical (1)(3)

    $ 46,815      $ 20,259      $ (5,587 )    $ 17,680   

Climate Control

      17,396        24,387        8,452        8,547   

Other

      1,298        1,198        397        444   

General corporate expenses (5)

      (17,081 )      (10,713 )      (4,459 )      (3,528 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  
     48,428        35,131        (1,197 )      23,143   

Interest expense, net (6)

      17,458        6,662        5,079        5,395   

Loss on extinguishment of debt

      —          1,296        —          1,296   

Non-operating other income, net:

         

Chemical

      (213 )      (1 )      (73 )      (1 ) 

Corporate and other business operations

      (29 )      (9 )      (16 )      (33 ) 

Provisions (benefit) for income taxes

      12,286        9,967        (2,415 )      6,345   

Equity in earnings of affiliate-Climate Control

      (79 )      (452 )      —          (109 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Income (loss) from continuing operations

    $ 19,005      $ 17,668      $ (3,772 )    $ 10,250   
  

 

 

    

 

 

    

 

 

    

 

 

  

 

(1) During the first quarter of 2014, our Chemical Business experienced downtime at the Pryor Facility resulting in lost production and adverse effect on operating results. During the third quarter of 2014, a planned major maintenance activity (“Turnaround”) was performed at our chemical production facility located in Cherokee, Alabama (the “Cherokee Facility”), which negatively impacted production, sales and operating results. During the first nine months of 2013, our Chemical Business experienced downtime at the Cherokee, El Dorado and Pryor Facilities resulting in lost production and an adverse effect on operating results.
(2) Gross profit (loss) 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) For the nine months ended September 30, 2014, we recognized business interruption and property insurance recoveries totaling $28.0 million, of which $22.9 million was recognized as a reduction to cost of sales (none for the three months ended September 30, 2014). For the nine and three months ended September 30, 2013, we recognized business interruption insurance recoveries of $18.4 million and $4.2 million, respectively, all of which was recognized as a reduction to cost of sales. During the nine and three months ended September 30, 2013, our Chemical Business recognized a recovery of precious metals of $4.5 million.
(4) Our chief operating decision makers use operating income (loss) by business segment for purposes of making decisions that include resource allocations and performance evaluations. Operating income (loss) by business segment represents gross profit (loss) 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.
(5) General corporate expenses consist of SG&A, other income and other expense that are not allocated to one of our business segments. General corporate expenses consist of the following:

 

     Nine Months Ended
September 30,		     Three Months Ended
September 30,		  
     2014     2013     2014     2013  
     (In Thousands)  

Selling, general and administrative:

         

Personnel costs

    $ (6,478 )    $ (6,194 )    $ (2,134 )    $ (1,899 ) 

Fees and expenses relating to certain activist shareholders’ proposals (A)

      (4,163 )      —          —          —     

Professional fees

      (3,333 )      (3,431 )      (1,185 )      (1,222 ) 

All other

      (3,162 )      (1,634 )      (1,145 )      (404 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total selling, general and administrative

      (17,136 )      (11,259 )      (4,464 )      (3,525 ) 

Other income

      69        587        19        3   

Other expense

      (14 )      (41 )      (14 )      (6 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Total general corporate expenses

    $ (17,081 )    $ (10,713 )    $ (4,459 )    $ (3,528 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

 

  (A) During the first quarter of 2014, we incurred fees and expenses in evaluating and analyzing proposals received from certain activist shareholders and dealing, negotiating and settling with those shareholders in order to avoid a proxy contest.

 

(6) During the nine and three months ended September 30, 2014, interest expense is net of capitalized interest of $9.2 million and $3.9 million, respectively. During the nine and three months ended September 30, 2013, interest expense is net of capitalized interest of $2.1 million and $1.2 million, respectively.

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

 

     September 30,
2014		      December 31,
2013		  
     (In Thousands)  

Chemical

    $ 889,593       $ 842,725   

Climate Control

      148,570         159,960   

Other

      7,386         6,832   

Corporate assets

      48,095         73,580   
  

 

 

     

 

 

  

Total assets

    $ 1,093,644       $ 1,083,097