Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

Our reporting structure is comprised of the following operating segments: Advanced Connectivity Solutions (ACS), Elastomeric Material Solutions (EMS), Power Electronics Solutions (PES) and the Other segment. We believe this structure aligns our external reporting presentation with how we currently manage and view our business internally. In the second quarter of 2015, we concluded that we needed to update two of our operating segment names to better align the business product portfolio offerings to the market. Therefore, Advanced Connectivity Solutions replaced the name of Printed Circuit Materials, and Elastomeric Material Solutions replaced the name of High Performance Foams. There were no changes to the composition of these two operating segments.

We completed the acquisition of Arlon on January 22, 2015. As part of the integration process, Arlon operations related to circuit materials and silicones were included in our ACS and EMS segments, respectively. The Other segment includes the Arlon business that manufactures specialty polyimide, epoxy-based laminates and bonding materials.

As a result of the acquisition, we significantly increased our asset holdings. The following table sets forth the total assets allocated to each segment:

(Dollars in thousands)
	September 30, 2015
Assets
Advanced Connectivity Solutions	$	313,259
Elastomeric Material Solutions	265,635
Power Electronics Solutions	325,636
Other	39,439
Total Assets	$	943,969

The following table sets forth the information about our segments for the periods indicated, inter-segment sales have been eliminated from the sales data:

(Dollars in thousands)	Quarter Ended						Nine Months Ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Net sales
Advanced Connectivity Solutions	$	66,160		$	63,353		$	203,855		$	183,397
Elastomeric Material Solutions	46,783			46,709			138,355			130,709
Power Electronics Solutions	36,565			46,468			113,633			130,185
Other	10,858			6,522			32,672			18,896
Net sales	$	160,366		$	163,052		$	488,515		$	463,187
Operating income
Advanced Connectivity Solutions	$	11,949		$	14,095		$	36,831		$	36,355
Elastomeric Material Solutions	8,116			8,442			16,661			18,752
Power Electronics Solutions	1,057			3,683			4,279			4,515
Other	1,933			2,169			5,894			6,444
Operating income	23,055			28,389			63,665			66,066
Equity income in unconsolidated joint ventures	877			953			2,187			2,992
Other income (expense), net	(756		)	(107		)	(1,404		)	(1,374		)
Interest expense, net	(1,126		)	(698		)	(3,435		)	(2,167		)
Income before income tax expense (benefit)	$	22,050		$	28,537		$	61,013		$	65,517

Information relating to our operations by geographic area were as follows:

	Net Sales (1)
	Quarter Ended				Nine Months Ended
(Dollars in thousands)	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
United States	$	40,630	$	34,714	$	126,825	$	98,353
China	55,233		67,032		172,405		179,158
Germany	21,942		23,793		60,361		72,351
Other	42,561		37,513		128,924		113,325
Total	160,366		163,052		488,515		463,187

(1) Net sales were allocated to countries based on the location of the customer.

	Long-lived Assets (2)
(Dollars in thousands)	September 30, 2015		December 31, 2014
United States	$	222,453	$	70,532
China	55,027		49,754
Germany	114,837		129,702
Other	45,314		36,999
Total	437,631		286,987

(2) Long-lived assets were based on the location of the asset and were comprised of goodwill and other intangibles and property, plant and equipment.