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Segment Reporting
12 Months Ended
Dec. 31, 2013
Segment Reporting Information, Revenue for Reportable Segment [Abstract]  
Segment Reporting
Segment Reporting

We operate in two reportable segments: Industrial Materials and Engineered Solutions.
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. The Engineered Solutions segment includes advanced electronics technologies, advanced graphite materials, advanced composite materials and advanced materials. Advanced electronics technologies products consist of electronic thermal management solutions, fuel cell components, and sealing materials. Advanced graphite materials are highly engineered synthetic graphite products used in many areas due to their unique properties and the ability to tailor them to specific solutions. These products are used in transportation, alternative energy, metallurgical, chemical, oil and gas exploration and various other industries. Advanced composite materials are highly engineered carbon products that are woven into various shapes to primarily support the aerospace and defense industries. Advanced materials use carbon and graphite powders as components or additives in a variety of industries, including metallurgical processing, battery and fuel cell components, and polymer additives.
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 sales.
The following tables summarize financial information concerning our reportable segments:
 
For the year Ended
December 31,
2011
 
2012
 
2013
 
(Dollars in thousands)
Net sales to external customers:
 
 
 
 
 
Industrial Materials
$
1,132,194

 
$
1,025,571

 
$
909,448

Engineered Solutions
187,990

 
222,693

 
257,226

Total net sales
$
1,320,184

 
$
1,248,264

 
$
1,166,674

Segment operating income:
 
 
 
 
 
Industrial Materials
$
158,547

 
$
143,268

 
$
(22,452
)
Engineered Solutions
7,462

 
13,200

 
19,882

Total segment operating income
$
166,009

 
$
156,468

 
$
(2,570
)
Reconciliation of segment operating income to income from continuing operations before provision for income taxes
 
 
 
 
 
Other expense (income), net
4,835

 
(1,005
)
 
1,698

Interest expense
18,307

 
23,247

 
36,037

Interest income
(424
)
 
(261
)
 
(203
)
Income (loss) before provision for income taxes
$
143,291

 
$
134,487

 
$
(40,102
)

Assets are managed based on geographic location because certain reportable segments share certain facilities. Assets by reportable segment are estimated based on the value of long-lived assets at each location and the activities performed at the location. 
 
At December 31,
 
2012
 
2013
 
(Dollars in thousands)
Long-lived assets (a):
 
 
 
Industrial Materials.
$
633,205

 
$
601,322

Engineered Solutions
200,702

 
219,663

Total long-lived assets
$
833,907

 
$
820,985


The following tables summarize information as to our operations in different geographic areas.
 
 
For the year Ended
December 31,
2011
 
2012
 
2013
 
(Dollars in thousands)
Net sales:
 
 
 
 
 
U.S.
$
353,416

 
$
372,014

 
$
289,866

Americas
252,316

 
195,748

 
177,602

Asia Pacific
240,220

 
235,658

 
220,945

Europe, Middle East, Africa
474,232

 
444,844

 
478,261

Total
$
1,320,184

 
$
1,248,264

 
$
1,166,674

 
 
At December 31,
2012
 
2013
(Dollars in thousands)
Long-lived assets (a):
 
 
 
U.S. and Canada
$
523,818

 
$
540,274

Mexico
79,279

 
83,428

Brazil
47,593

 
26,008

France
55,792

 
61,264

Spain
78,392

 
82,051

South Africa
36,937

 
16,408

Switzerland
4,829

 
4,618

Other countries
7,267

 
6,934

Total
$
833,907

 
$
820,985

(a)
Long-lived assets represent fixed assets, net of accumulated depreciation.