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Segment Reporting
 3 Months Ended
Mar. 31, 2014
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
Segment Reporting
Segment Reporting

We operate in two reportable segments: Industrial Materials and Engineered Solutions.
Industrial Materials. Our industrial materials segment manufactures and delivers high quality graphite electrodes, refractory products and needle coke products. Electrodes are key components of the conductive power systems used to produce steel and other non-ferrous metals. Refractory products are used in blast furnaces and submerged arc furnaces due to their high thermal conductivity and the ease with which they can be machined to large or complex shapes. Needle coke, a crystalline form of carbon derived from decant oil, is the key ingredient in, and is used primarily in, the production of graphite electrodes.
Engineered Solutions. The Engineered Solutions segment includes advanced electronics technologies, advanced graphite materials, advanced composite materials and advanced materials. Advanced electronics technologies products consist of electronic thermal management solutions, fuel cell components, and sealing materials. Advanced graphite materials are highly engineered synthetic graphite products used in many areas due to their unique properties and the ability to tailor them to specific solutions. These products are used in transportation, alternative energy, metallurgical, chemical, oil and gas exploration and various other industries. Advanced composite materials are highly engineered carbon products that are woven into various shapes primarily to support the aerospace and defense industries. Advanced materials use carbon and graphite powders as components or additives in a variety of industries, including metallurgical processing, battery and fuel cell components, and polymer additives.
We continue to evaluate the performance of our segments based on segment operating income. Intersegment sales and transfers are not material and the accounting policies of the reportable segments are the same as those for our Consolidated Financial Statements as a whole. Corporate expenses are allocated to segments based on each segment’s percentage of consolidated sales.
The following tables summarize financial information concerning our reportable segments:
 
For the Three Months Ended
 
March 31,
 
2013
 
2014
 
(Dollars in thousands)
Net sales to external customers:
 
 
 
Industrial Materials
$
208,777

 
$
218,776

Engineered Solutions
44,950

 
62,015

Total net sales
$
253,727

 
$
280,791

Segment operating income:
 
 
 
Industrial Materials
$
16,078

 
$
(9,423
)
Engineered Solutions
(334
)
 
2,354

Total segment operating income (loss)
$
15,744

 
$
(7,069
)
 
 
 
 
Reconciliation of segment operating income to
    income before provision for income taxes
 
 
 
Other expense, net
550

 
794

Interest expense
9,008

 
8,999

Interest income
(64
)
 
(58
)
Income (loss) before provision for income taxes
$
6,250

 
$
(16,804
)