Reportable Segments and Geographic Information

6 Months Ended

Jun. 30, 2012

Segment Reporting Information, Profit (Loss) [Abstract]

Reportable Segments and Geographic Information

Reportable Segments

The Company operates and reports its results in four operating segments: Magnetic Technologies, Advanced Materials, Specialty Chemicals and Battery Technologies. Intersegment transactions are generally recognized based on current market prices and are eliminated in consolidation. Corporate is comprised of general and administrative expenses not allocated to the operating segments, including all share-based compensation expense.

The following table reflects the results of our reportable segments:

	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Net sales
Magnetic Technologies(a)	$	168,024		$	—		$	358,515		$	—
Advanced Materials	124,261			165,206			257,234			345,286
Specialty Chemicals	109,214			128,749			215,127			249,332
Battery Technologies	35,205			35,843			72,237			66,819
Intersegment items	(237		)	(276		)	(467		)	(570		)
	$	436,467		$	329,522		$	902,646		$	660,867
Operating profit (loss)
Magnetic Technologies (a)(b)	$	(30,146	)	$	—		$	(16,243	)	$	—
Advanced Materials	923			16,864			12,034			48,981
Specialty Chemicals (c)	10,696			17,858			24,217			31,592
Battery Technologies	6,063			6,703			11,718			8,825
Corporate (e)	(9,699		)	(13,408		)	(19,453		)	(23,621		)
	(22,163		)	28,017			12,273			65,777
Interest expense	(11,828		)	(1,393		)	(24,040		)	(2,815		)
Interest income	186			467			338			687
Foreign exchange gain (loss)	5,861			(636		)	840			(161		)
Other expense, net	(357		)	(324		)	(648		)	(329		)
	(6,138		)	(1,886		)	(23,510		)	(2,618		)
Income (loss) from continuing operations before income tax (expense) benefit	$	(28,301	)	$	26,131		$	(11,237	)	$	63,159
Expenditures for property, plant & equipment
Magnetic Technologies (a)	$	6,499		$	—		$	9,995		$	—
Advanced Materials	8,560			4,146			13,697			5,165
Specialty Chemicals	2,248			3,600			3,212			5,002
Battery Technologies	1,002			1,371			2,223			2,278
	$	18,309		$	9,117		$	29,127		$	12,445
Depreciation of property, plant and equipment and amortization of intangibles (d)
Magnetic Technologies (a)	$	10,010		$	—		$	20,222		$	—
Advanced Materials	4,271			5,151			8,495			10,223
Specialty Chemicals	5,166			5,790			10,262			11,420
Battery Technologies	2,509			2,503			5,011			4,988
Corporate	147			148			262			270
	$	22,103		$	13,592		$	44,252		$	26,901

(a) VAC was acquired on August 2, 2011. Because we acquired VAC in the third quarter of 2011, the table above does not include comparable results for the three and six months ended June 30, 2011.

(b) Includes $53.9 million and $69.6 million in the three and six months ended June 30, 2012, respectively, of charges related to the VAC inventory purchase accounting step-up and LCM charges. See further discussion of the charges related to inventory below.

(c) The six months ended June 30, 2012 includes a $2.9 million property sale gain.

(d) Excludes amortization of deferred financing fees.

(e) Includes $4.0 million of acquisition-related fees related to VAC in the three and six months ended June 30, 2011.

As part of the allocation of the purchase price of VAC to the assets acquired and liabilities assumed, we recorded a step-up of inventory to its estimated fair value on the date of acquisition. The three and six months ended June 30, 2012 include the following charges related to Magnetic Technologies inventory (amounts in thousands):

		Three Months Ended				Six Months Ended
		June 30				June 30
		2012		2011		2012		2011
Charges related to the step-up of inventory that was recorded as of the acquisition date:
	LCM charge	$	26,703	$	—	$	31,404	$	—
	Step-up amortization	4,842		—		15,868		—
		31,545		—		47,273		—
Additional LCM charge		22,347		—		22,347		—
Total VAC inventory purchase accounting step-up and LCM charges		$	53,891	$	—	$	69,620	$	—

The inventory purchase accounting step-up and LCM charges were a direct result of acquisition accounting and the spike in rare earth prices that occurred in 2011 and the subsequent decline in prices since that time. These charges had no impact on the cash balances of the Company and did not impact its liquidity.