Reportable Segments

6 Months Ended

Jun. 30, 2011

Reportable Segments

Reportable Segments

Note 13 - Reportable Segments

The Company is organized into three operating segments: Advanced Materials, Specialty Chemicals and Battery Technologies. Intersegment transactions are generally recognized based on current market prices and are eliminated in consolidation. General and administrative expenses not allocated to the operating segments are included in Corporate in the segment table set forth below.

The Advanced Materials segment consists of Inorganics, the DRC smelter joint venture and metal resale. The Advanced Materials segment manufactures inorganic products using unrefined cobalt and other metals and serves the battery materials, powder metallurgy, ceramic and chemical end markets.

The Specialty Chemicals segment is comprised of Electronic Chemicals, Advanced Organics, Ultra Pure Chemicals ("UPC") and Photomasks. Electronic Chemicals develops and manufactures products for the printed circuit board, memory disk, general metal finishing and photovoltaic markets. Advanced Organics offers products for the coating and inks, chemical and tire markets. UPC develops, manufactures and distributes a wide range of ultra-pure chemicals used in the manufacture of electronic and computer components such as semiconductors, silicon chips, wafers and liquid crystal displays. Photomasks manufactures photo-imaging masks (high-purity quartz or glass plates containing precision, microscopic images of integrated circuits) and reticles for the semiconductor, optoelectronics, microelectronics and micro electro mechanical systems industries under the Compugraphics brand name.

The Battery Technologies segment, which consists of the EaglePicher Technologies business acquired on January 29, 2010, provides advanced batteries, battery management systems, battery-related research and energetic devices for the defense, aerospace and medical markets. In the defense market, Battery Technologies develops battery products for missile launch vehicles, missiles, guided bombs and other weapons systems. It also provides primary (non-rechargeable) and secondary (rechargeable) batteries, battery management systems, battery chargers, and energetic devices for diverse defense applications such as unmanned vehicles, sub-munitions, mines, sonabuoys, and fuzes. In the aerospace market, Battery Technologies designs, manufactures and qualifies primary and secondary batteries for satellites, aircraft, packaging of cells and other special applications. In the medical market, Battery Technologies designs, builds and qualifies miniature batteries to power implantable medical devices.

The Company has manufacturing and other facilities in North America, Europe, Africa and Asia-Pacific, and the Company markets its products worldwide. Further, approximately 16% of the Company's investment in property, plant and equipment is located in the DRC, where the Company operates a smelter through a 55%-owned joint venture.

The following table reflects the results of the Company's reportable segments (in thousands):

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Business Segment Information
Net Sales
Advanced Materials	$	165,206		$	150,266		$	345,286		$	320,230
Specialty Chemicals		128,749			124,419			249,332			239,449
Battery Technologies (a)		35,843			28,414			66,819			47,003
Intersegment items		(276	)		—			(570	)		(386	)
	$	329,522		$	303,099		$	660,867		$	606,296
Operating profit
Advanced Materials	$	16,864		$	17,335		$	48,981		$	46,593
Specialty Chemicals		17,858			20,211			31,592			35,552
Battery Technologies (a)		6,703			411			8,825			(1,094	)
Corporate		(13,408	)		(7,644	)		(23,621	)		(18,845	)
		28,017			30,313			65,777			62,206
Interest expense		(1,393	)		(1,644	)		(2,815	)		(2,313	)
Interest income		467			219			687			386
Foreign exchange gain (loss)		(636	)		(4,224	)		(161	)		(7,400	)
Other, net		(324	)		(384	)		(329	)		(393	)
		(1,886	)		(6,033	)		(2,618	)		(9,720	)
Income from continuing operations before income tax expense	$	26,131		$	24,280		$	63,159		$	52,486
Expenditures for property, plant & equipment
Advanced Materials	$	4,146		$	3,516		$	5,165		$	6,649
Specialty Chemicals		3,600			756			5,002			1,492
Battery Technologies (a)		1,371			1,949			2,278			2,661
	$	9,117		$	6,221		$	12,445		$	10,802
Depreciation and amortization
Advanced Materials	$	5,151		$	5,143		$	10,223		$	10,161
Specialty Chemicals		5,790			5,767			11,420			11,847
Battery Technologies (a)		2,503			2,563			4,988			4,161
Corporate		148			200			270			677
	$	13,592		$	13,673		$	26,901		$	26,846

(a) Includes activity since the acquisition of EaglePicher Technologies on January 29, 2010.