Segment Information

6 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information

Note 6. Segment Information

The Company operates in the business of pigment manufacturing and related products in three geographic segments. All United States (“U.S.”) manufacturing is done at the facility located in Corpus Christi, Texas. Foreign manufacturing is done by the Company’s wholly-owned foreign operations, TMM, located in Malaysia, and TPT, located in The Netherlands.

Product sales of inventory between the U.S., Asian and European operations are based on inter-company pricing, which includes an inter-company profit margin. In the geographic information, the location profit (loss) from all locations is reflective of these inter-company prices, as is inventory at the Corpus Christi location prior to elimination adjustments. Such presentation is consistent with the internal reporting reviewed by the Company’s chief operating decision maker. The elimination entries include an adjustment to the cost of sales resulting from the adjustment to ending inventory to eliminate inter-company profit, and the reversal of a similar adjustment from a prior period. To the extent there are net increases/declines period over period in Corpus Christi inventories that include an inter-company component, the net effect of these adjustments can decrease/increase location profit.

Sales from the subsidiary to the parent company are based upon profit margins which represent competitive pricing of similar products. Intercompany sales consist primarily of ALUPREM®, Synthetic Rutile, HITOX® and TIOPREM®.

A summary of the Company’s manufacturing operations by geographic segment is presented below:

(In Thousands)	United States (Corpus Christi)			Europe (TPT)		Asia (TMM)			Inter-Company Eliminations			Consolidated
As of and for the three months ended:
June 30, 2015
Net Sales:
Customer sales	$	7,107		$	2,052	$	804		$	-		$	9,963
Intercompany sales		4			1,086		1,458			(2,548	)		-
Total Net Sales	$	7,111		$	3,138	$	2,262		$	(2,548	)	$	9,963
Location income (loss)	$	(81	)	$	107	$	(47	)	$	(86	)	$	(107	)
June 30, 2014
Net Sales:
Customer sales	$	8,451		$	3,092	$	849		$	-		$	12,392
Intercompany sales		-			2,133		3,241			(5,374	)		-
Total Net Sales	$	8,451		$	5,225	$	4,090		$	(5,374	)	$	12,392
Location income (loss)	$	(8	)	$	603	$	(473	)	$	31		$	153

(In Thousands)	United States (Corpus Christi)			Europe (TPT)		Asia (TMM)			Inter-Company Eliminations			Consolidated
As of and for the six months ended:
June 30, 2015
Net Sales:
Customer sales	$	14,177		$	4,359	$	1,542		$	-		$	20,078
Intercompany sales		4			2,038		3,555			(5,597	)		-
Total Net Sales	$	14,181		$	6,397	$	5,097		$	(5,597	)	$	20,078
Location income (loss)	$	(98	)	$	13	$	(145	)	$	(67	)	$	(297	)
Location assets	$	17,844		$	11,217	$	14,808		$	-		$	43,869
June 30, 2014
Net Sales:
Customer sales	$	16,397		$	5,807	$	3,320		$	-		$	25,524
Intercompany sales		57			3,968		3,884			(7,909	)		-
Total Net Sales	$	16,454		$	9,775	$	7,204		$	(7,909	)	$	25,524
Location income (loss)	$	46		$	1,147	$	(429	)	$	96		$	860
Location assets	$	21,020		$	11,500	$	20,180		$	-		$	52,700