6. Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

The Company and its subsidiaries operate in the business of pigment manufacturing and related products in three geographic segments – United States, European and Asian.  Our chief operating decision maker, or CODM, regularly reviews financial information about our segments in order to allocate resources and evaluate performance.

Product sales of inventory between the U.S., European and Asian operations are based on inter-company pricing, which includes an inter-company profit margin.  The segment income (loss), included in the table below, from each location 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
For the three months ended:
September 30, 2016
Net Sales:
Customer sales	$	7,227	$	2,249	$	560	$	-	$	10,036
Intercompany sales		34		2,051		1,353		(3,438)		-
Total Net Sales	$	7,261	$	4,300	$	1,913	$	(3,438)	$	10,036
Segment income (loss)	$	9	$	325	$	(22)	$	(21)	$	291
September 30, 2015
Net Sales:
Customer sales	$	6,308	$	2,059	$	621	$	-	$	8,988
Intercompany sales		33		1,418		789		(2,240)		-
Total Net Sales	$	6,341	$	3,477	$	1,410	$	(2,240)	$	8,988
Segment income (loss)	$	(229)	$	138	$	(210)	$	180	$	(121)

(In Thousands)		United States (Corpus Christi)		Europe (TPT)		Asia (TMM)		Inter-Company Eliminations		Consolidated
For the nine months ended:
September 30, 2016
Net Sales:
Customer sales	$	20,596	$	6,954	$	1,908	$	-	$	29,458
Intercompany sales		87		5,336		3,672		(9,095)		-
Total Net Sales	$	20,683	$	12,290	$	5,580	$	(9,095)	$	29,458
Segment income (loss)	$	(269)	$	892	$	24	$	(25)	$	622
As of September 30, 2016
Segments assets	$	17,819	$	14,478	$	6,299	$	-	$	38,596
For the nine months ended:
September 30, 2015
Net Sales:
Customer sales	$	20,485	$	6,418	$	2,163	$	-	$	29,066
Intercompany sales		37		3,456		4,343		(7,836)		-
Total Net Sales	$	20,522	$	9,874	$	6,506	$	(7,836)	$	29,066
Segment income (loss)	$	(327)	$	152	$	(356)	$	113	$	(418)
As of September 30, 2015
Segment assets	$	17,026	$	13,769	$	12,676	$	-	$	43,471