6. Segment Information

6 Months Ended

Jun. 30, 2017

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.

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:
June 30, 2017
Net Sales:
Customer sales	$	7,074	$	2,685	$	972	$	-	$	10,731
Intercompany sales		21		1,534		1,054		(2,609)		-
Total Net Sales	$	7,095	$	4,219	$	2,026	$	(2,609)	$	10,731
Segment income (loss)	$	(3)	$	192	$	136	$	27	$	352
June 30, 2016
Net Sales:
Customer sales	$	6,878	$	2,270	$	702	$	-	$	9,850
Intercompany sales		-		1,925		745		(2,670)		-
Total Net Sales	$	6,878	$	4,195	$	1,447	$	(2,670)	$	9,850
Segment income (loss)	$	(245)	$	247	$	6	$	79	$	87

(In Thousands)		United States (Corpus Christi)		Europe (TPT)		Asia (TMM)		Inter-Company Eliminations		Consolidated
For the six months ended:
June 30, 2017
Net Sales:
Customer sales	$	14,069	$	5,479	$	1,879	$	-	$	21,427
Intercompany sales		37		2,810		2,005		(4,852)		-
Total Net Sales	$	14,106	$	8,289	$	3,884	$	(4,852)	$	21,427
Segment income (loss)	$	(74)	$	115	$	220	$	(41)	$	220
As of June 30, 2017
Segments assets	$	17,556	$	15,183	$	5,444	$	(477)	$	37,706
For the six months ended:
June 30, 2016
Net Sales:
Customer sales	$	13,369	$	4,705	$	1,348	$	-	$	19,422
Intercompany sales		53		3,285		2,318		(5,656)		-
Total Net Sales	$	13,422	$	7,990	$	3,666	$	(5,656)	$	19,422
Segment income (loss)	$	(278)	$	567	$	46	$	(4)	$	331
As of June 30, 2016
Segment assets	$	17,180	$	14,013	$	6,956	$	(444)	$	37,705