Segment Reporting

6 Months Ended

Jun. 30, 2012

Segment Reporting Information, Revenue for Reportable Segment [Abstract]

Segment Reporting

Segment Reporting

Our businesses are reported in the following reportable segments:

Industrial Materials. Our Industrial Materials segment manufactures and delivers high quality graphite electrodes, refractory products and needle coke products. Electrodes are key components of the conductive power systems used to produce steel and other non-ferrous metals. Refractory products are used in blast furnaces and submerged arc furnaces due to their high thermal conductivity and the ease with which they can be machined to large or complex shapes. Needle coke, a crystalline form of carbon derived from decant oil, is the key ingredient in, and is used primarily in, the production of graphite electrodes.

Engineered Solutions. Engineered Solutions include advanced graphite materials products for industrial, energy, transportation, and defense markets, as well as natural graphite products enabling thermal management solutions for the advanced electronics industry and energy storage solutions for the transportation and power generation industries.

We continue to evaluate the performance of our segments based on segment operating income. Intersegment sales and transfers are not material and the accounting policies of the reportable segments are the same as those for our Consolidated Financial Statements as a whole. Corporate expenses are allocated to segments based on each segment’s percentage of consolidated net sales.

The following tables summarize financial information concerning our reportable segments:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2011			2012			2011			2012
	(Dollars in thousands)						(Dollars in thousands)
Net sales to external customers:
Industrial Materials	$	269,751		$	262,285		$	533,236		$	455,281
Engineered Solutions	50,480			53,326			93,132			101,268
Total net sales	$	320,231		$	315,611		$	626,368		$	556,549
Segment operating income:
Industrial Materials	32,136			41,877			66,335			66,802
Engineered Solutions	7,433			4,700			10,880			3,782
Total segment operating income	$	39,569		$	46,577		$	77,215		$	70,584
Reconciliation of segment operating income to income before provision for income taxes
Other expense (income), net	(196		)	394			(187		)	(3,029		)
Interest expense	4,584			5,132			8,988			9,894
Interest income	(115		)	(64		)	(244		)	(145		)
Income before provision for income taxes	$	35,296		$	41,115		$	68,658		$	63,864