Guarantor Information

12 Months Ended

Dec. 31, 2015

Consolidating Financials [Abstract]

Guarantor Information

Guarantor Information

On November 20, 2012, GrafTech International Ltd. (the “Parent”), issued $300 million aggregate principal amount of Senior Notes. The Senior Notes mature on November 15, 2020 and bear interest at a rate of 6.375% per year, payable semi-annually in arrears on May 15 and November 15 of each year. The Senior Notes have been guaranteed on a senior basis by the following wholly-owned direct and indirect subsidiaries of the Parent: GrafTech Finance Inc., GrafTech Holdings Inc., GrafTech USA LLC, Seadrift Coke LLP, Fiber Materials, Inc., Intermat, GrafTech Global Enterprises Inc., GrafTech International Holdings Inc., GrafTech DE LLC, GrafTech Seadrift Holding Corp, GrafTech International Trading Inc., GrafTech Technology LLC, GrafTech NY Inc., and Graphite Electrode Network LLC.

    The guarantors of the Senior Notes, solely in their respective capacities as such, are collectively called the “Guarantors.” Our other subsidiaries, which are not guarantors of the Senior Notes, are called the “Non-Guarantors.”

    All of the guarantees are unsecured. All of the guarantees are full, unconditional (subject to limited exceptions described below) and joint and several. Each of the Guarantors are 100% owned, directly or indirectly, by the Parent. All of the guarantees of the Senior Notes continue until the Senior Notes have been paid in full, and payment under such guarantees could be required immediately upon the occurrence of an event of default under the Senior Notes. If a Guarantor makes a payment under its guarantee of the Senior Notes, it would have the right under certain circumstances to seek contribution from the other Guarantors.

The Guarantors will be released from the guarantees upon the occurrence of certain events, including the following:  the unconditional release or discharge of any guarantee or indebtedness that resulted in the creation of the guarantee of the Senior Notes by such Guarantor; the sale or other disposition, including by way of merger or consolidation or the sale of its capital stock, following which such Guarantor is no longer a subsidiary of the Parent; or the Parent's exercise of its legal defeasance option or its covenant defeasance option as described in the indenture applicable to the Senior Notes.  If any Guarantor is released, no holder of the Senior Notes will have a claim as a creditor against such Guarantor and the indebtedness and other liabilities, including trade payables and preferred stock, if any, of such Guarantor will be effectively senior to the claim of any holders of the Senior Notes.

Investments in subsidiaries are recorded on the equity basis.

    The following tables set forth condensed consolidating balance sheets as of December 31, 2014 and December 31, 2015 and condensed consolidating statements of operations and comprehensive income (loss) for the year ended December 31, 2013, 2014 and 2015 and condensed consolidating statements of cash flows for 2014 and 2015 of the Parent, Guarantors and the Non-Guarantors.

CONDENSED CONSOLIDATING BALANCE SHEETS
As of December 31, 2014 (Predecessor)
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	5,503	$	12,047	$	—		$	17,550
Accounts receivable - affiliates	40,474		35,618		40,185		(116,277		)	—
Accounts receivable - trade	—		45,861		117,058		—			162,919
Inventories	—		148,080		234,823		—			382,903
Prepaid and other current assets	—		17,336		64,287		—			81,623
Total current assets	40,474		252,398		468,400		(116,277		)	644,995
Investment in affiliates	1,414,278		762,251		—		(2,176,529		)	—
Property, plant and equipment	—		431,602		222,438		—			654,040
Deferred income taxes	—		—		16,819		—			16,819
Goodwill	—		217,099		203,030		—			420,129
Notes receivable - affiliate	35,722		7,413		—		(43,135		)	—
Other assets	4,110		45,617		48,095		—			97,822
Total Assets	$	1,494,584	$	1,716,380	$	958,782	$	(2,335,941	)	$	1,833,805
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable - affiliate	$	—	$	80,659	$	35,618	$	(116,277	)	$	—
Accounts payable - trade	47		35,435		50,927		—			86,409
Short-term debt	187,973		131		—		—			188,104
Accrued income and other taxes	344		3,380		20,782		—			24,506
Rationalizations	—		7,538		2,025		—			9,563
Other accrued liabilities	2,444		15,252		25,623		—			43,319
Total current liabilities	190,808		142,395		134,975		(116,277		)	351,901
Long-term debt - affiliate	—		35,722		7,413		(43,135		)	—
Long-term debt - third party	300,000		40,393		1,222		—			341,615
Other long-term obligations	—		77,724		29,842		—			107,566
Deferred income taxes	—		5,118		23,079		—			28,197
Stockholders' equity	1,003,776		1,415,028		762,251		(2,176,529		)	1,004,526
Total Liabilities and Stockholders' Equity	$	1,494,584	$	1,716,380	$	958,782	$	(2,335,941	)	$	1,833,805

CONDENSED CONSOLIDATING BALANCE SHEETS
As of December 31, 2015 (Successor)
(in thousands)
							Consolidating
					Non-		Entries and
	Parent		Guarantors		Guarantors		Eliminations			Consolidated
ASSETS
Current Assets:
Cash and cash equivalents	$	—	$	646	$	6,281	$	—		$	6,927
Accounts receivable - affiliates	51,592		9,362		20,823		(81,777		)	—
Accounts receivable - trade	—		20,749		82,066		—			102,815
Inventories	—		123,340		172,122		—			295,462
Prepaid and other current assets	—		8,109		13,565		—			21,674
Total current assets	51,592		162,206		294,857		(81,777		)	426,878
Investment in affiliates	1,068,028		668,113		—		(1,736,141		)	—
Property, plant and equipment	—		291,494		346,039		—			637,533
Deferred income taxes	—		—		15,327		—			15,327
Goodwill	—		72,399		99,660		—			172,059
Notes receivable - affiliate	—		46,074		—		(46,074		)	—
Other assets	—		96,964		73,254		—			170,218
Total Assets	$	1,119,620	$	1,337,250	$	829,137	$	(1,863,992	)	$	1,422,015
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable - affiliate	$	159	$	72,418	$	9,200	$	(81,777	)	$	—
Accounts payable - trade	—		18,546		30,932		—			49,478
Short-term debt	—		4,636		136		—			4,772
Accrued income and other taxes	—		5,864		3,175		—			9,039
Rationalizations	—		995		2,053		—			3,048
Other accrued liabilities	2,444		11,511		15,824		—			29,779
Total current liabilities	2,603		113,970		61,320		(81,777		)	96,116
Long-term debt - affiliate	38,661		—		7,413		(46,074		)	—
Long-term debt - third party	267,827		93,758		870		—			362,455
Other long-term obligations	—		61,246		34,239		—			95,485
Deferred income taxes	—		248		57,182		—			57,430
Stockholders' equity	810,529		1,068,028		668,113		(1,736,141		)	810,529
Total Liabilities and Stockholders' Equity	$	1,119,620	$	1,337,250	$	829,137	$	(1,863,992	)	$	1,422,015

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the year ended December 31, 2013 (Predecessor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	220,354		$	149,251		$	(369,605	)		$	—
Sales - third party	—			469,033			697,641			—				1,166,674
Net sales	—			689,387			846,892			(369,605		)		1,166,674
Cost of sales	—			584,819			812,394			(369,605		)		1,027,608
Gross profit	—			104,568			34,498			—				139,066
Research and development	—			10,437			—			—				10,437
Selling and administrative expenses	—			40,548			70,495			—				111,043
Rationalizations	—			2,732			17,424			—				20,156
Operating income (loss)	—			50,851			(53,421		)	—				(2,570		)
Other expense (income), net	—			(176		)	1,874			—				1,698
Interest expense - affiliate	—			1,364			670			(2,034		)		—
Interest expense - third party	31,294			3,029			1,714			—				36,037
Interest income - affiliate	(1,233		)	(670		)	(131		)	2,034				—
Interest income - third party	—			—			(203		)	—				(203		)
(Loss) income before income taxes	(30,061		)	47,304			(57,345		)	—			`	(40,102		)
(Benefit) provision for income taxes	(10,659		)	9,111			(11,295		)	—				(12,843		)
Equity in losses of subsidiary	(7,857		)	(46,050		)	—			53,907				—
Net income (loss)	$	(27,259	)	$	(7,857	)	$	(46,050	)	$	53,907			$	(27,259	)
Statements of Comprehensive Income (Loss)
Net income (loss)	$	(27,259	)	$	(7,857	)	$	(46,050	)	$	53,907			$	(27,259	)
Other comprehensive (loss) income	(11,946		)	(11,946		)	(13,601		)	25,547				(11,946		)
Comprehensive income (loss)	$	(39,205	)	$	(19,803	)	$	(59,651	)	$	79,454			$	(39,205	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the year ended December 31, 2014 (Predecessor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	263,742		$	150,346		$	(414,088	)		$	—
Sales - third party	—			422,991			662,313			—				1,085,304
Net sales	—			686,733			812,659			(414,088		)		1,085,304
Cost of sales	—			630,031			777,114			(414,088		)		993,057
Gross profit	—			56,702			35,545			—				92,247
Research and development	—			14,844			—			—				14,844
Selling and administrative expenses	—			55,454			68,724			—				124,178
Impairments	—			186,552			10,668			—				197,220
Rationalizations	—			9,109			2,516			—				11,625
Operating income (loss)	—			(209,257		)	(46,363		)	—				(255,620		)
Other expense (income), net	—			1,575			870			—				2,445
Interest expense - affiliate	—			806			—			(806		)		—
Interest expense - third party	32,118			4,037			902			—				37,057
Interest income - affiliate	(806		)	—			—			806				—
Interest income - third party	—			(11		)	(319		)	—				(330		)
(Loss) income before income taxes	(31,312		)	(215,664		)	(47,816		)	—			`	(294,792		)
(Benefit) provision for income taxes	3,319			(5,618		)	(7,117		)	—				(9,416		)
Equity in losses of subsidiary	(251,495		)	(40,699		)	—			292,194				—
Net income (losses)	$	(286,126	)	$	(250,745	)	$	(40,699	)	$	292,194			$	(285,376	)
Statements of Comprehensive Income (Loss)
Net loss	$	(286,126	)	$	(250,745	)	$	(40,699	)	$	292,194			$	(285,376	)
Other comprehensive (loss) income	(43,900		)	(43,900		)	(28,650		)	72,550				(43,900		)
Comprehensive income (loss)	$	(330,026	)	$	(294,645	)	$	(69,349	)	$	364,744			$	(329,276	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the Period January 1 through August 14, 2015 (Predecessor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	124,489		$	52,794		$	(177,283	)		$	—
Sales - third party	—			160,761			277,170			—				437,931
Net sales	—			285,250			329,964			(177,283		)		437,931
Cost of sales	—			266,369			310,731			(177,283		)		399,817
Gross profit	—			18,881			19,233			—				38,114
Research and development	—			5,556			—			—				5,556
Selling and administrative expenses	6,750			44,507			29,890			—				81,147
Impairments	—			35,381			—			—				35,381
Rationalizations	—			(374		)	4,881			—				4,507
Operating loss	(6,750		)	(66,189		)	(15,538		)	—				(88,477		)
Other expense (income), net	—			804			531			—				1,335
Interest expense - affiliate	3			372			—			(375		)		—
Interest expense - third party	24,366			2,481			271			—				27,118
Interest income - affiliate	(372		)	(3		)	—			375				—
Interest income - third party	—			(5		)	(362		)	—				(367		)
Loss before income taxes	(30,747		)	(69,838		)	(15,978		)	—			`	(116,563		)
(Benefit from) provision for income taxes	—			385			3,701			—				4,086
Equity in losses of subsidiary	(89,902		)	(19,679		)	—			109,581				—
Net loss	$	(120,649	)	$	(89,902	)	$	(19,679	)	$	109,581			$	(120,649	)
Statements of Comprehensive Income (Loss)
Net loss	$	(120,649	)	$	(89,902	)	$	(19,679	)	$	109,581			$	(120,649	)
Other comprehensive (loss) income	(26,674		)	(26,674		)	(28,041		)	54,715				(26,674		)
Comprehensive (loss) income	$	(147,323	)	$	(116,576	)	$	(47,720	)	$	164,296			$	(147,323	)

CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
For the Period August 15 Through December 31, 2015 (Successor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations				Consolidated
Sales - affiliates	$	—		$	51,262		$	32,611		$	(83,873	)		$	—
Sales - third party	—			86,053			162,688			—				248,741
Net sales	—			137,315			195,299			(83,873		)		248,741
Cost of sales	—			132,610			181,175			(83,873		)		229,912
Gross profit	—			4,705			14,124			—				18,829
Research and development	—			2,348			—			—				2,348
Selling and administrative expenses	—			10,775			21,340			—				32,115
Rationalizations	—			71			1,004			—				1,075
Operating loss	—			(8,489		)	(8,220		)	—				(16,709		)
Other expense (income), net	—			1,166			(2,109		)	—				(943		)
Interest expense - affiliate	226			—			—			(226		)		—
Interest expense - third party	9,552			1,079			285			—				10,916
Interest income - affiliate	—			(226		)	—			226				—
Interest income - third party	—			(5		)	(6		)	—				(11		)
Loss before income taxes	(9,778		)	(10,503		)	(6,390		)	—			`	(26,671		)
(Benefit) provision for income taxes	—			634			6,246			—				6,880
Equity in losses of subsidiary	(23,773		)	(12,636		)	—			36,409				—
Net loss	$	(33,551	)	$	(23,773	)	$	(12,636	)	$	36,409			$	(33,551	)
Statements of Comprehensive Income (Loss)
Net loss	$	(33,551	)	$	(23,773	)	$	(12,636	)	$	36,409			$	(33,551	)
Other comprehensive income (loss):	(10,257		)	(10,257		)	(10,257		)	20,514				(10,257		)
Comprehensive (loss) income	$	(43,808	)	$	(34,030	)	$	(22,893	)	$	56,923			$	(43,808	)

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the year ended December 31, 2013
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash (used in) provided by operating activities:	$	(13,718	)	$	72,111		$	58,444		$	—		$	116,837
Cash flow from investing activities:
Loan repayments from affiliates	15,578			15,000			—			(30,578		)	—
Capital expenditures	—			(52,278		)	(34,066		)	—			(86,344		)
Insurance recoveries	—			—			1,500			—			1,500
Proceeds from derivatives (payments on)	—			437			(323		)	—			114
Other	—			322			607			—			929
Net cash provided by (used in) investing activities	15,578			(36,519		)	(32,282		)	(30,578		)	(83,801		)
Cash flow from financing activities:
Loans repayments to affiliates	—			(15,578		)	(15,000		)	30,578			—
Short-term debt borrowings	—			(6		)	(7,259		)	—			(7,265		)
Revolving Facility borrowings	—			75,000			91,000			—			166,000
Revolving Facility reductions	—			(94,500		)	(77,000		)	—			(171,500		)
Principal payments on long term debt	—			(166		)	(59		)	—			(225		)
Supply chain financing	—			—			(17,508		)	—			(17,508		)
Proceeds from exercise of stock options	448			—			—			—			448
Purchase of treasury shares	(1,825		)	—			—			—			(1,825		)
Refinancing fees and debt issuance costs	(483		)	(15		)	(62		)	—			(560		)
Other	—			—			(5,210		)	—			(5,210		)
Net cash (used in) provided by financing activities	(1,860		)	(35,265		)	(31,098		)	30,578			(37,645		)
Net increase (decrease) in cash and cash equivalents	—			327			(4,936		)	—			(4,609		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(820		)	—			(820		)
Cash and cash equivalents at beginning of period	—			4,425			12,892			—			17,317
Cash and cash equivalents at end of period	$	—		$	4,752		$	7,136		$	—		$	11,888

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the year ended December 31, 2014
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash (used in) provided by operating activities:	$	(9,474	)	$	79,864		$	50,513		$	—		$	120,903
Cash flow from investing activities:
Loan repayments from affiliates	6,604			—			—			(6,604		)	—
Capital expenditures	—			(58,926		)	(26,055		)	—			(84,981		)
Insurance recoveries	—			—			2,834			—			2,834
Proceeds (payments) for derivatives	—			(2,195		)	170			—			(2,025		)
Proceeds from fixed asset sales	—			1,700			3,342						5,042
Other	—			—			178			—			178
Net cash provided by (used in) investing activities	6,604			(59,421		)	(19,531		)	(6,604		)	(78,952		)
Cash flow from financing activities:
Loans repayments to affiliates	—			(6,604		)	—			6,604			—
Short-term debt borrowings	—			(34		)	(987		)	—			(1,021		)
Revolving Facility borrowings	—			183,000			86,000			—			269,000
Revolving Facility reductions	—			(193,000		)	(100,000		)	—			(293,000		)
Principal payments on long term debt	—			(132		)	(60		)	—			(192		)
Supply chain financing	—			—			(9,455		)	—			(9,455		)
Proceeds from exercise of stock options	2,813			—			—			—			2,813
Purchase of treasury shares	(894		)	—			—			—			(894		)
Refinancing fees and debt issuance costs	—			(2,922		)	(357		)	—			(3,279		)
Other	951			—			—			—			951
Net cash (used in) provided by financing activities	2,870			(19,692		)	(24,859		)	6,604			(35,077		)
Net increase in cash and cash equivalents	—			751			6,123			—			6,874
Effect of exchange rate changes on cash and cash equivalents	—			—			(1,212		)	—			(1,212		)
Cash and cash equivalents at beginning of period	—			4,752			7,136			—			11,888
Cash and cash equivalents at end of period	$	—		$	5,503		$	12,047		$	—		$	17,550

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the Period January 1 through August 14, 2015 (Predecessor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash (used in) provided by operating activities:	$	(4,017	)	$	34,418		$	25,632		$	(27,710	)	$	28,323
Cash flow from investing activities:
Loans from (repayments to) affiliates	36,204			(21,343		)	—			(14,861		)	—
Capital expenditures	—			(20,572		)	(11,729		)	—			(32,301		)
Payments for derivative instruments	—			(7,595		)	(668		)	—			(8,263		)
Proceeds from sale of assets	—			397			249			—			646
Net cash provided by (used in)          investing activities	36,204			(49,113		)	(12,148		)	(14,861		)	(39,918		)
Cash flow from financing activities:
Loans from (repayments to) affiliates	21,343			(36,204		)	—			14,861			—
Dividends to affiliates	—			—			(27,710		)	27,710
Short-term debt, net	—			14,002			4,509			—			18,511
Revolving Facility borrowings	—			126,000			34,000			—			160,000
Revolving Facility reductions	—			(87,000		)	(12,000		)	—			(99,000		)
Repayment of Senior Subordinated Notes	(200,000		)	—			—			—			(200,000		)
Issuance of Preferred Shares	150,000			—			—			—			150,000
Principal payments on long term debt	—			(89		)	—			—			(89		)
Proceeds from exercise of stock options	32			—			—			—			32
Purchase of treasury shares	(63		)	—			—			—			(63		)
Revolver facility refinancing	—			(5,037		)	(31		)	—			(5,068		)
Other	(3,499		)	—			—			—			(3,499		)
Net cash (used in)         provided by financing activities	(32,187		)	11,672			(1,232		)	42,571			20,824
Net (decrease) increase in cash    and cash equivalents	—			(3,023		)	12,252			—			9,229
Effect of exchange rate changes    on cash and cash equivalents	—			—			(1,746		)	—			(1,746		)
Cash and cash equivalents at    beginning of period	—			5,503			12,047			—			17,550
Cash and cash equivalents    at end of period	$	—		$	2,480		$	22,553		$	—		$	25,033

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
For the Period August 15 Through December 31, 2015 (Successor)
(in thousands)
										Consolidating
							Non-			Entries and
	Parent			Guarantors			Guarantors			Eliminations			Consolidated
Net cash (used in) provided by operating activities:	$	(15,930	)	$	18,471		$	20,574		$	—		$	23,115
Cash flow from investing activities:
Loans from (repayments to) affiliates	—			(17,315		)	—			17,315			—
Capital expenditures	—			(8,438		)	(10,004		)	—			(18,442		)
Payments for derivative instruments	—			—			326			—			326
Proceeds from sale of assets	—			492			140			—			632
Net cash provided by (used in)          investing activities	—			(25,261		)	(9,538		)	17,315			(17,484		)
Cash flow from financing activities:
Loans from (repayments to) affiliates	17,315			—			—			(17,315		)	—
Dividends to affiliates	—			—			—			—
Short-term debt, net	—			(10,998		)	(4,506		)	—			(15,504		)
Revolving Facility borrowings	—			52,000			10,000			—			62,000
Revolving Facility reductions	—			(36,000		)	(32,000		)	—			(68,000		)
Issuance of Preferred Shares	(1,385		)	—			—			—			(1,385		)
Principal payments on long term debt	—			(46		)	(137		)	—			(183		)
Net cash (used in)         provided by financing activities	15,930			4,956			(26,643		)	(17,315		)	(23,072		)
Decrease in cash    and cash equivalents	—			(1,834		)	(15,607		)	—			(17,441		)
Effect of exchange rate changes    on cash and cash equivalents	—			—			(665		)	—			(665		)
Cash and cash equivalents at    beginning of period	—			2,480			22,553			—			25,033
Cash and cash equivalents    at end of period	$	—		$	646		$	6,281		$	—		$	6,927