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Segment Reporting and Geographic Information
12 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Segment Reporting and Geographic Information
Segment Reporting and Geographic Information
The Company has the following operating segments: Performance Alloys and Composites, Advanced Materials, Precision Coatings, and Other. The Company’s operating segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Executive Officer, the Company's Chief Operating Decision Maker, in determining how to allocate the Company’s resources and evaluate performance. The segments are determined based on several factors, including the availability of discrete financial information and the Company’s organizational and management structure.
Performance Alloys and Composites produces strip and bulk form alloy products, strip metal products with clad inlay and overlay metals, beryllium-based metals, beryllium, and aluminum metal matrix composites, in rod, sheet, foil, and a variety of customized forms, beryllia ceramics, and bulk metallic glass materials.
Advanced Materials produces advanced chemicals, microelectric packaging, precious metal, non-precious metal, and specialty metal products, including vapor deposition targets, frame lid assemblies, clad and precious metal preforms, high temperature braze materials, and ultra-fine wire.
Precision Coatings produces thin film coatings, optical filter materials, sputter-coated, and precision-converted thin film materials.
The Other reportable segment includes unallocated corporate costs and assets.
Financial information for reportable segments was as follows:
 
 
 
 
 
 
 
 
 
 
 
(Thousands)
 
Performance
Alloys and
Composites
 
Advanced Materials
 
Precision Coatings
 
Other
 
Total
2017
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
429,442

 
$
590,789

 
$
119,216

 
$

 
$
1,139,447

Intersegment sales
 
114

 
58,056

 

 

 
58,170

Value-added sales
 
363,465

 
228,062

 
90,678

 
(4,508
)
 
677,697

Operating profit (loss)
 
21,978

 
32,763

 
8,445

 
(24,607
)
 
38,579

Depreciation, depletion, and amortization
 
23,209

 
7,354

 
9,721

 
2,467

 
42,751

Expenditures for long-lived assets
 
10,427

 
13,318

 
3,048

 
2,283

 
29,076

Assets
 
418,798

 
202,389

 
97,504

 
72,393

 
791,084

2016


 

 

 



Net sales

$
387,539

 
$
437,249

 
$
144,448

 
$


$
969,236

Intersegment sales

240

 
70,457

 

 


70,697

Value-added sales

332,012

 
176,332

 
97,700

 
(6,134
)

599,910

Operating profit (loss)
 
6,601

 
26,282

 
11,635

 
(17,414
)
 
27,104

Depreciation, depletion, and amortization
 
27,059

 
6,644

 
9,945

 
2,003

 
45,651

Expenditures for long-lived assets
 
26,604

 
4,931

 
3,176

 
2,327

 
37,038

Assets
 
422,787

 
133,682

 
108,788

 
76,041

 
741,298

2015
 
 
 
 
 
 
 
 
 
 
Net sales
 
$
394,760

 
$
482,288

 
$
148,444

 
$
(220
)
 
$
1,025,272

Intersegment sales
 
768

 
63,669

 

 

 
64,437

Value-added sales
 
335,136

 
182,794

 
101,761

 
(2,444
)
 
617,247

Operating profit (loss)
 
23,560

 
27,805

 
7,483

 
(13,580
)
 
45,268

Depreciation, depletion, and amortization
 
19,748

 
6,995

 
9,951

 
1,777

 
38,471

Expenditures for long-lived assets
 
38,562

 
5,286

 
6,399

 
1,843

 
52,090

Assets
 
425,759

 
131,104

 
118,953

 
66,477

 
742,293


Intersegment sales are eliminated in consolidation.
The primary measure of evaluating segment performance is operating profit. In addition to net sales, value-added sales is also reviewed. Value-added sales represents a non-GAAP financial measure which removes the impact of pass-through metal costs and allows for analysis without the distortion of the movement or volatility in pass-through metal prices. Value-added sales is a metric of particular importance to the Advanced Materials segment, since a significant portion of Advanced Materials' net sales are based on the value of precious metals which can fluctuate significantly from period to period.
From a segment assets perspective, segments are evaluated based upon a return on assets metric, which includes inventory (excluding the impact of LIFO), accounts receivable, and property, plant, and equipment.

Other geographic information includes the following:
(Thousands)
 
2017

2016
 
2015
Net sales
 


 
 
 
United States
 
$
650,675


$
639,675

 
$
639,436

Asia
 
265,991

 
193,739

 
247,174

Europe
 
205,118

 
121,648

 
122,554

All other
 
17,663

 
14,174

 
16,108

Total
 
$
1,139,447

 
$
969,236

 
$
1,025,272

Long-lived assets by country deployed
 


 
 
 
United States
 
$
227,412


$
240,309

 
$
249,976

All other
 
28,166


12,322

 
13,653

Total
 
$
255,578

 
$
252,631

 
$
263,629


Net sales are based on the location of the selling group. No individual country, other than the United States, or customer accounted for 10% or more of the Company’s net sales for the years presented.
Long-lived assets are comprised of property, plant, and equipment based on physical location.