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Segment Reporting
 9 Months Ended
Sep. 30, 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 net sales.
The following tables summarize financial information concerning our reportable segments:
 
For the Three Months Ended
 
For the Nine Months Ended
 
September 30,
 
September 30,
 
2013
 
2014
 
2013
 
2014
 
(Dollars in thousands)
 
(Dollars in thousands)
Net sales to external customers:
 
 
 
 
 
 
 
Industrial Materials
$
233,277

 
$
208,573

 
$
673,394

 
$
634,004

Engineered Solutions
69,807

 
51,885

 
184,778

 
191,429

Total net sales
$
303,084

 
$
260,458

 
$
858,172

 
$
825,433

Segment operating (loss) income:
 
 
 
 
 
 
 
Industrial Materials
$
(12,945
)
 
$
(7,219
)
 
$
10,663

 
$
(28,009
)
Engineered Solutions
4,376

 
(15,832
)
 
12,485

 
(141,599
)
Total segment operating (loss) income
$
(8,569
)
 
$
(23,051
)
 
$
23,148

 
$
(169,608
)
 
 
 
 
 
 
 
 
Reconciliation of segment operating (loss) income to
    loss before provision for income taxes
 
 
 
 
 
 
 
Other expense (income), net
$
(772
)
 
$
1,149

 
$
753

 
$
1,902

Interest expense
9,098

 
9,069

 
27,053

 
27,223

Interest income
(49
)
 
(144
)
 
(162
)
 
(257
)
Loss before provision for income taxes
$
(16,846
)
 
$
(33,125
)
 
$
(4,496
)
 
$
(198,476
)

Assets are managed based on geographic location because our reportable segments share certain facilities. Assets by reportable segment are estimated based on the value of property, plant and equipment at each location and the activities performed at the location.  As a result of the rationalization initiatives and related impairments discussed in Note 2, the carrying value of our property, plant and equipment has changed significantly since December 31, 2013. The following is a summary of property, plant and equipment by reportable segment.
 
As of
December 31, 2013
 
As of
September 30,
2014
 
(Dollars in thousands)
Property, plant & equipment:
 
 
 
Industrial Materials
$
601,322

 
$
568,213

Engineered Solutions
219,663

 
97,342

Total property, plant & equipment
$
820,985

 
$
665,555