REVENUE FROM CONTRACTS WITH CUSTOMERS

We generate substantially all of our revenue from the manufacture and shipment of aluminum products to our customers. Sales, value add and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Revenue is recognized when obligations under the terms of a contract (as defined by ASC 606) with our customer are satisfied, which occurs at a point in time when control of the product transfers to the customer. Control may transfer to the customer at various points in the delivery process. In North America, most revenue is recognized at the point of shipment. In Europe and China, the timing of revenue recognition varies depending on individual customer arrangements, and may include point of shipment, delivery to port, final delivery to customer or another point in the delivery process.

Certain contractual arrangements, primarily with customers in our automotive and heat exchanger end-uses, allow for inventory to be held at a customer’s location or in a third-party warehouse with direct customer access. Title does not transfer to the customer on such inventory until the customer has removed the product for consumption. Under such arrangements, management has concluded that control has passed to the customer upon delivery to the customer’s location or the third-party warehouse if the customer has unrestricted access to the product and the Company has the right to invoice that customer after a specified period of time regardless of whether or not the product has been removed by the customer for production.

The transaction price for our products includes the value of the aluminum in the product plus a conversion fee, or rolling margin, which is the price charged to the customer for conversion of the aluminum raw material to the finished product. Certain customer contracts include volume rebates applied retrospectively to quantities purchased during a specified period. The resulting variable consideration from volume rebates is estimated using the expected value method.

As all customer contracts have an original expected duration of less than twelve months, we have applied the practical expedient to the disclosure of the aggregate amount of the transaction price allocated to remaining performance obligations.

Customer payments are due shortly after completion of the performance obligation, on payment terms that are customary for the industry. As all customer payments are due in less than one year, we have not adjusted revenue for the effects of a significant financing component.

The following table discloses the disaggregated revenue from our contracts with customers by major end-use:



	For the three months ended March 31, 2018
	North America		Europe		Asia Pacific		Intra-entity sales			Total
Aerospace	$	—	$	70.8	$	14.8	$	—		$	85.6
Automotive	26.8		101.3		—		(9.0		)	119.1
Heat exchanger	—		66.0		—		—			66.0
Building and construction	189.2		—		—		—			189.2
Truck trailer	43.8		—		—		—			43.8
Distribution	107.0		—		15.9		—			122.9
Regional plate and sheet	—		109.1		—		—			109.1
Other	47.8		17.9		0.9		—			66.6
	$	414.6	$	365.1	$	31.6	$	(9.0	)	$	802.3