The change in precious metal and copper prices, which are passed on to the customer as discussed in the value-added sales section below, unfavorably impacted net sales by $9.2 million in 2022 compared to 2021. This impact was partially offset by an increase in the volume of raw material beryllium hydroxide sales in 2022 of $4.0 million.

R&D expense consists primarily of direct personnel costs for pre-production evaluation and testing of new products, prototypes, and applications. R&D expense was $29.0 million in 2022, an increase of 9% compared to 2021. R&D costs as a percentage of value-added sales remained at 3%.

Other non-operating (income) expense-net includes components of pension and post-retirement income other than service costs. Refer to Note O of the Consolidated Financial Statements for details of the components of net periodic benefit costs.

EBITDA for the Electronic Materials segment was $67.8 million in 2022 compared to $44.9 million in 2021. The increase in EBITDA was primarily due to incremental EBITDA from HCS-Electronic Materials.

Value-added sales of $113.6 million in 2022 decreased 14% compared to value-added sales of $131.8 million in 2021. The decrease in value-added sales was due to the same factors driving the decrease in net sales.

Value-Added Sales - Reconciliation of Non-GAAP Financial Measure

A reconciliation of net sales to value-added sales, a non-GAAP financial measure, for each reportable segment and for the Company in total for 2022, 2021, and 2020 is as follows:

By presenting information on net sales and value-added sales, it is our intention to allow users of our financial statements to review our net sales with and without the impact of the pass-through metals.

A summary of cash flows provided by (used in) operating, investing, and financing activities is as follows:

borrowing capacity to a multiple of the twelve-month trailing earnings before interest, income taxes, depreciation and amortization, and other adjustments.

(2) These amounts represent future interest payments related to our total debt, excluding any interest payments to be made on borrowings under our Credit Agreement.

The term "measured mineral resource" is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of conclusive geological evidence and sampling.

The term "indicated resources" means resources for which quantity and grade or quality can be estimated on the basis of adequate geological evidence and sampling.

The term "inferred resources" means resources for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling.

The following represents our ore mineral reserves:

The Qualified Persons have assessed that the Company's control procedures, including redundant testing at various operational points, the quality control and quality assurance measures, the calibration measures, the extensive cataloging of sample duplicates, and the reconciliation with recovered beryllium, are sufficient.

Based upon average production levels in recent years and our near-term production forecasts, proven reserves would last a minimum of seventy-five years. The table below details our production of beryllium at our Utah location.

1) Identify the contract with a customer

2) Identify the performance obligations in the contract

Certain of the Company's contracts with customers may contain multiple performance obligations. As a result, management utilizes judgment to determine the appropriate accounting, including whether multiple promised products or services in a

4) Allocate the transaction price to performance obligations in the contract

5) Recognize revenue when or as the Company satisfies a performance obligation

We receive payment from customers equal to the invoice price for most of our sales transactions.

Returned products are generally not accepted unless the customer notifies the Company in writing, and we authorize the product return by the customer.

Refer to Note P of the Consolidated Financial Statements for additional details on our pension and other post-employment benefit plans.

Refer to Note G of the Consolidated Financial Statements for additional deferred tax details.

Precious Metal Physical Inventory Counts

Goodwill and Other Intangible Assets

We also compared our market capitalization as of October 1, 2022 to the carrying value of our equity and considering an implied control premium, we noted no impairment indicators or triggering events.

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