Segment Information (Tables)

6 Months Ended

Jun. 30, 2014


	Six Months Ended						Three Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(In Thousands)
Net sales:
Chemical (1)	$	250,977		$	198,818		$	135,756		$	121,328
Climate Control		123,100			147,627			62,751			77,357
Other		6,110			6,457			3,155			3,538

	$	380,187		$	352,902		$	201,662		$	202,223

Gross profit: (2)
Chemical (1)	$	57,682		$	14,506		$	29,256		$	12,095
Climate Control		37,766			47,385			18,502			25,403
Other		2,143			2,190			1,111			1,161

	$	97,591		$	64,081		$	48,869		$	38,659

Operating income: (3)
Chemical (1)	$	52,402		$	2,579		$	23,589		$	6,385
Climate Control		8,944			15,840			4,612			9,456
Other		901			754			514			433
General corporate expenses (4)		(12,622	)		(7,185	)		(4,951	)		(4,049	)

		49,625			11,988			23,764			12,225
Interest expense, net (5)		12,379			1,267			5,671			536
Non-operating other expense (income), net:
Chemical		(140	)		—			(63	)		—
Corporate and other business operations		(13	)		24			(13	)		8
Provisions for income taxes		14,701			3,622			7,047			4,367
Equity in earnings of affiliate—Climate Control		(79	)		(343	)		(12	)		(172	)

Income from continuing operations	$	22,777		$	7,418		$	11,134		$	7,486

(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 first six 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. We also recognized insurance recoveries in both periods as discussed in Note 12 – Property and Business Interruption Insurance Claims and Recoveries.

(2)	Gross profit 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)

Our chief operating decision makers use operating income by business segment for purposes of making decisions that include resource allocations and performance evaluations. Operating income by business segment represents gross profit 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.

(4)	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:


	Six Months Ended						Three Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(In Thousands)
Selling, general and administrative:
Fees and expenses relating to certain activist shareholders’ proposals (A)	$	(4,163	)	$	—		$	—		$	—
Personnel costs		(4,344	)		(4,295	)		(2,812	)		(2,608	)
Professional fees		(2,148	)		(2,209	)		(960	)		(786	)
All other		(2,017	)		(1,230	)		(1,206	)		(614	)

Total selling, general and administrative		(12,672	)		(7,734	)		(4,978	)		(4,008	)
Other income		50			584			27			(6	)
Other expense		—			(35	)		—			(35	)

Total general corporate expenses	$	(12,622	)	$	(7,185	)	$	(4,951	)	$	(4,049	)

(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.

(5)	During the six and three months ended June 30, 2014, interest expense is net of capitalized interest of $5.3 million and $3.0 million, respectively. During the six and three months ended June 30, 2013, interest expense is net of capitalized interest of $1.0 million and $0.6 million, respectively.

General Corporate Expenses and Other Business Operations, Net


	Six Months Ended						Three Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
	(In Thousands)
Selling, general and administrative:
Fees and expenses relating to certain activist shareholders’ proposals (A)	$	(4,163	)	$	—		$	—		$	—
Personnel costs		(4,344	)		(4,295	)		(2,812	)		(2,608	)
Professional fees		(2,148	)		(2,209	)		(960	)		(786	)
All other		(2,017	)		(1,230	)		(1,206	)		(614	)

Total selling, general and administrative		(12,672	)		(7,734	)		(4,978	)		(4,008	)
Other income		50			584			27			(6	)
Other expense		—			(35	)		—			(35	)

Total general corporate expenses	$	(12,622	)	$	(7,185	)	$	(4,951	)	$	(4,049	)

(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.

Total Assets by Business Segment

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


	June 30,		December 31,
	2014		2013
	(In Thousands)
Chemical	$	901,379	$	842,725
Climate Control		149,506		159,960
Other		6,058		6,832
Corporate assets		51,979		73,580

Total assets	$	1,108,922	$	1,083,097

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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