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6. Segment Information
 9 Months Ended
Sep. 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:

 

 

 

 

 

 

 

 

September 30, 2017

 

 

 

 

 

 

 

 

 

 

Net Sales:

 

 

 

 

 

 

 

 

 

 

Customer sales

$

5,385 

$

2,882 

$

1,220 

$

- 

$

9,487 

Intercompany sales

 

- 

 

492 

 

497 

 

(989)

 

- 

Total Net Sales

$

5,385 

$

3,374 

$

1,717 

$

(989)

$

9,487 

 

 

 

 

 

 

 

 

 

 

 

Segment (loss) income

$

(164)

$

(286)

$

154 

$

(33)

$

(329)

 

 

 

 

 

 

 

 

 

 

 

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 

 

 

 

 

 

 

 

 

 

 

 

 

 

(In Thousands)

 

United States
(Corpus Christi)

 

Europe
(TPT)

 

Asia
(TMM)

 

Inter-Company
Eliminations

 

Consolidated

 

 

 

 

 

 

 

 

 

 

 

For the Nine months ended:

 

 

 

 

 

 

 

 

 

September 30, 2017

 

 

 

 

 

 

 

 

 

 

Net Sales:

 

 

 

 

 

 

 

 

 

 

Customer sales

$

19,454 

$

8,361 

$

3,099 

$

- 

$

30,914 

Intercompany sales

 

37 

 

3,303 

 

2,502 

 

(5,842)

 

- 

Total Net Sales

$

19,491 

$

11,664 

$

5,601 

$

(5,842)

$

30,914 

 

 

 

 

 

 

 

 

 

 

 

Segment (loss) income

$

(238)

$

(171)

$

374 

$

(74)

$

(109)

As of September 30, 2017

 

 

 

 

 

 

 

 

 

Segments assets

$

15,834 

$

15,872 

$

5,640 

$

(402)

$

36,944 

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

 

 

 

 

 

 

 

 

 

Segment assets

$

17,819 

$

14,478 

$

6,299 

$

- 

$

38,596