Segment Information

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Segment Information

NOTE 13—SEGMENT INFORMATION

Segment information is prepared on the same basis that our chief operating decision-maker (“CODM”), who is our chief executive officer, manages the segments, evaluates financial results, and makes key operating decisions, and for which discrete financial information is available. As of September 30, 2015, the Company had two reportable segments: Real Alloy North America (“RANA”) and Real Alloy Europe (“RAEU”).

Measurement of segment income or loss and segment assets and liabilities

The accounting policies of the reportable segments are the same as those described in Note 2—Financial Statement Presentation and Significant Accounting Policies. Our measure of profitability for our reportable segments is earnings before interest, taxes, depreciation and amortization and excludes certain other items (“Adjusted EBITDA”). Certain of the Company’s assets and liabilities have not been allocated to our reportable segments, including corporate cash, the common stock warrant liability, deferred income taxes, intangible assets, including goodwill, and long-term debt, none of which our CODM uses to evaluate the performance of our reportable segments. Additionally, certain of the Company’s corporate administrative expenses are not allocated to the reportable segments.

Reportable segment information

The following tables show segment revenues and Adjusted EBITDA for the three and nine months ended September 30, 2015 and a reconciliation from Adjusted EBITDA to operating profit. For the three and nine months ended September 30, 2014, there were no reportable segments.

	Three Months Ended September 30, 2015
(In millions)	RANA		RAEU		Total
Revenues	$	205.2	$	133.4	$	338.6
Adjusted EBITDA	$	15.4	$	7.4	$	22.8

	Nine Months Ended September 30, 2015
(In millions)	RANA		RAEU		Total
Revenues	$	521.7	$	323.3	$	845.0
Adjusted EBITDA	$	36.3	$	16.9	$	53.2

(In millions)	Three Months Ended September 30, 2015			Nine Months Ended September 30, 2015
Adjusted EBITDA	$	22.8		$	53.2
Unrealized losses (gains) on derivative financial instruments		(0.5	)		0.8
Depreciation and amortization—excludes Corporate and Other		10.3			24.2
Impact of recording inventory at fair value through purchase accounting		1.3			8.5
Operating loss of Corporate and Other		3.2			10.5
Other		1.1			2.2
Operating profit	$	7.4		$	7.0

The following tables present summarized balance sheet information for each of our reportable segments and a reconciliation to consolidated assets and liabilities as of September 30, 2015:

(In millions)	RANA		RAEU
Segment Assets
Current assets:
Cash and cash equivalents	$	5.2	$	16.4
Trade accounts receivable, net		86.4		15.2
Financing receivable		—		47.6
Inventories		72.9		45.2
Other current assets		5.1		2.8
Total current assets		169.6		127.2
Property, plant and equipment, net		215.4		104.6
Other noncurrent assets		4.8		2.0
Total segment assets	$	389.8	$	233.8
Segment Liabilities
Current liabilities:
Trade payables	$	65.0	$	55.3
Accrued liabilities		22.3		13.1
Total current liabilities		87.3		68.4
Accrued pension benefits		—		46.3
Environmental liabilities		18.4		—
Other noncurrent liabilities		6.9		1.7
Total segment liabilities	$	112.6	$	116.4

(In millions)
Assets:
RANA	$	389.8
RAEU		233.8
Unallocated		139.6
Total consolidated assets	$	763.2
Liabilities:
RANA	$	112.6
RAEU		116.4
Unallocated		368.2
Total consolidated liabilities	$	597.2