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Segment Reporting | 12 Months Ended
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Dec. 31, 2015
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, 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 to primarily 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. Prior to 2014, certain global expenses such as research and development, shared IT and accounting services as well as corporate headquarter’s finance, HR, legal and executive management were allocated to the segments mostly based on each segment’s contribution to consolidated sales. During 2014, as part of our initiative to decentralize the organization and reduce the costs of the global headquarter functions, the performance measure of our existing segments was changed to reflect our new management and operating structure. We currently exclude such expenses from the segment operating income measure and report them under “Corporate, R&D and Other Expenses” in order to reconcile to the consolidated operating income of the Company. The following tables summarize financial information concerning our reportable segments and all prior periods have been recast to reflect our new methodology:
| Predecessor |  | Successor
| For the year Ended December 31, |  | For the Period January 1, 2015 Through August 14, 2015 |  | For the Period August 15, 2015 Through December 31, 2015
| 2013 |  | 2014 |  |
| (Dollars in thousands)
Net sales to external customers: |  |  |  |  |  |  |
Industrial Materials | $ | 909,448 |  |  | $ | 840,103 |  |  | $ | 341,974 |  |  | $ | 193,223 |
Engineered Solutions | 257,226 |  |  | 245,201 |  |  | 95,957 |  |  | 55,518 |
Total net sales | $ | 1,166,674 |  |  | $ | 1,085,304 |  |  | $ | 437,931 |  |  | $ | 248,741 |
Segment operating income (loss): |  |  |  |  |  |  |
Industrial Materials | $ | 20,007 |  |  | $ | (50,260 | ) |  | $ | (25,678 | ) |  | $ | (4,017 | )
Engineered Solutions | 28,392 |  |  | (138,271 | ) |  | (15,368 | ) |  | (457 | )
Corporate, R&D and Other expenses | (50,969 | ) |  | (67,089 | ) |  | (47,431 | ) |  | (12,235 | )
Total segment operating income (loss) | $ | (2,570 | ) |  | $ | (255,620 | ) |  | $ | (88,477 | ) |  | $ | (16,709 | )
Reconciliation of segment operating income (loss) to loss from continuing operations before provision for income taxes: |  |  |  |  |  |  |
Other expense (income), net | $ | 1,698 |  |  | $ | 2,445 |  |  | $ | 1,335 |  |  | $ | (943 | )
Interest expense | 36,037 |  |  | 37,057 |  |  | 27,118 |  |  | 10,916 |
Interest income | (203 | ) |  | (330 | ) |  | (367 | ) |  | (11 | )
Loss before provision for income taxes | $ | (40,102 | ) |  | $ | (294,792 | ) |  | $ | (116,563 | ) |  | $ | (26,671 | )
Industrial Materials' operating loss for the period January 1 through August 14, 2015 includes a $35.4 million goodwill impairment charge, $2.7 million of rationalization and related charges and $3.2 million of costs associated with the preferred share issuance. Engineered Solutions' results for the period January 1 through August 14, 2015 include $6.9 million of rationalization and related costs and $2.5 million of costs associated with the preferred share issuance. Corporate, R&D and Other expenses for the period January 1 through August 14, 2015 includes $19.4 million of costs associated with the preferred share issuance, tender offer and proxy contest and $2.1 million of rationalization and related costs. Engineered Solutions' operating loss for the period August 15 through December 31, 2015 included $3.0 million of rationalization and related expenses. Operating loss for the year ended December 31, 2014 also includes for Industrial Materials $75.7 million of goodwill impairment charge and for Engineered Solutions $121.6 million of impairment charge for long-lived assets. Operating income (loss) noted above for the year ended December 31, 2014 includes rationalization related charges of $34.5 million in Industrial Materials, $22.0 million in Engineered Solutions, and $6.3 million in Corporate, R&D and Other expenses as well as a pension mark-to-market loss of $3.5 million in Industrial Materials, $9.2 million in Engineered Solutions and $6.3 million in Corporate, R&D and Other expenses. We incurred a $4.8 million charge for losses related to the bankruptcy of a major customer in the Advanced Graphite Materials business. Corporate, R&D and Other expenses include $2.4 million of fees associated with proxy contest costs in 2014. Operating loss for the year ended December 31, 2013 includes rationalization-related charges of $60.3 million for Industrial Materials, $3.6 million for Engineered Solutions and $1.8 million for Corporate, R&D and Other as well as Pension mark-to-market gain of $4.2 million in Industrial Materials, $5.9 million in Engineered Solutions and $4.2 million in All Other. Assets are managed based on geographic location because certain reportable segments share certain facilities. Assets by reportable segment are estimated based on the value of long-lived assets at each location and the activities performed at the location.
| As of December 31,
| 2014 |  | 2015
| (Dollars in thousands)
Long-lived assets (a): |  |  |
Industrial Materials. | $ | 552,155 |  |  | $ | 571,424 |
Engineered Solutions | 101,885 |  |  | 66,109 |
Total long-lived assets | $ | 654,040 |  |  | $ | 637,533 |
The following tables summarize information as to our operations in different geographic areas.
| For the Twelve Months Ended December 31,
2013 |  | 2014 |  | 2015
| (Dollars in thousands)
Net sales:* |  |  |  |  |
U.S. | $ | 289,866 |  |  | $ | 284,209 |  |  | $ | 176,402 |
Americas | 177,602 |  |  | 180,070 |  |  | 140,629 |
Asia Pacific | 220,945 |  |  | 192,230 |  |  | 84,287 |
Europe, Middle East, Africa | 478,261 |  |  | 428,795 |  |  | 285,354 |
Total | $ | 1,166,674 |  |  | $ | 1,085,304 |  |  | $ | 686,672 |
* Net Sales were not impacted by purchase price accounting adjustments.
| At December 31,
2014 |  | 2015
(Dollars in thousands)
Long-lived assets (a): |  |  |
U.S. and Canada | $ | 431,601 |  |  | $ | 291,493 |
Mexico | 89,731 |  |  | 158,950 |
Brazil | 9,492 |  |  | 8,787 |
France | 49,602 |  |  | 77,412 |
Spain | 70,648 |  |  | 93,049 |
South Africa | 2,064 |  |  | 4,167 |
Italy | 508 |  |  | 3,249 |
Switzerland | 287 |  |  | 266 |
Other countries | 107 |  |  | 160 |
Total | $ | 654,040 |  |  | $ | 637,533 |
(a) | Long-lived assets represent fixed assets, net of accumulated depreciation.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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