XML 121 R32.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Segment Reporting
12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
SEGMENT REPORTING
NOTE W— SEGMENT REPORTING
Our business is organized into two reportable segments, Oil & Gas Proppants and Industrial & Specialty Products, based on end markets. The reportable segments are consistent with how management views the markets that we serve and the financial information reviewed by the chief operating decision maker. We manage our Oil & Gas Proppants and Industrial & Specialty Products businesses as components of an enterprise for which separate information is available and is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assess performance.
In the Oil & Gas Proppants segment, we serve the oil and gas recovery market primarily by providing and delivering fracturing sand, or “frac sand,” which is pumped down oil and natural gas wells to prop open rock fissures and increase the flow rate of oil and natural gas from the wells.
The Industrial & Specialty Products segment consists of over 400 product types and materials used in a variety of markets including building and construction products, fillers and extenders, filtration, glassmaking, absorbents, foundry, and sports and recreation.
An operating segment’s performance is primarily evaluated based on segment contribution margin, which excludes selling, general, and administrative costs, corporate costs, plant capacity expansion expenses, and facility closure costs. We believe that segment contribution margin, as defined above, is an appropriate measure for evaluating the operating performance of our segments. However, segment contribution margin is a non-GAAP measure and should be considered in addition to, not a substitute for, or superior to, net income (loss) or other measures of financial performance prepared in accordance with GAAP. The other accounting policies of each of the two reportable segments are the same as those in Note B - Summary of Significant Accounting Policies to these Consolidated Financial Statements.
The following table presents sales and segment contribution margin (in thousands) for the reportable segments and other operating results not allocated to the reported segments for the years ended December 31, 2019, 2018 and 2017:
 
 
Year Ended 
 December 31,
 
 
2019
 
2018
 
2017
Sales:
 
 
 
 
 
 
Oil & Gas Proppants
 
$
1,010,521

 
$
1,182,991

 
$
1,020,365

Industrial & Specialty Products
 
463,956

 
394,307

 
220,486

Total sales
 
1,474,477

 
1,577,298

 
1,240,851

Segment contribution margin:
 
 
 
 
 
 
Oil & Gas Proppants
 
248,594

 
357,846

 
301,972

Industrial & Specialty Products
 
178,215

 
155,084

 
88,781

Total segment contribution margin
 
426,809

 
512,930

 
390,753

Operating activities excluded from segment cost of sales(1)
 
(85,625
)
 
(98,761
)
 
(16,722
)
Selling, general and administrative
 
(150,848
)
 
(146,971
)
 
(107,056
)
Depreciation, depletion and amortization
 
(179,444
)
 
(148,832
)
 
(97,233
)
Goodwill and other asset impairments
 
(363,847
)
 
(281,899
)
 

Interest expense
 
(95,472
)
 
(70,564
)
 
(31,342
)
Other income (expense), net, including interest income
 
19,519

 
4,144

 
(1,874
)
Income tax benefit
 
99,151

 
29,132

 
8,680

Net (loss) income
 
$
(329,757
)
 
$
(200,821
)
 
$
145,206

Less: Net loss attributable to non-controlling interest
 
(675
)
 
(13
)
 

Net (loss) income attributable to U.S. Silica Holdings, Inc.
 
$
(329,082
)
 
$
(200,808
)
 
$
145,206


(1)
2019 and 2018 mainly driven by plant capacity expansion expenses, amortization of purchase accounting inventory fair value step-up, and facility closure costs.

Asset information, including capital expenditures and depreciation, depletion, and amortization, by segment is not included in reports used by management in its monitoring of performance and, therefore, is not reported by segment. At December 31, 2019, goodwill of $273.5 million has been allocated to these segments with $86.1 million assigned to Oil & Gas Proppants and $187.4 million to Industrial & Specialty Products. At December 31, 2018, goodwill of $261.3 million had been allocated to these segments with $86.1 million assigned to Oil & Gas Proppants and $175.2 million to Industrial & Specialty Products.