Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Information

Note 16 — Segment Information

The financial results for our segments are prepared using a management approach, which is consistent with the basis and manner in which we internally segregate financial information for the purpose of assisting in making internal operating decisions. We evaluate the performance of our segments based on operating income, and generally account for intersegment sales based on arm’s length prices. We report two segments, Composite Materials and Engineered Products. Corporate and certain other expenses are not allocated to the segments, except to the extent that the expense can be directly attributable to the segment. Corporate & Other is shown to reconcile to Hexcel’s consolidated results.

In addition to the product line-based segmentation of our business, we also monitor sales into our principal end markets as a means to understanding demand for our products. Therefore, for each segment, we have also reported disaggregated sales by end market.

The following table presents financial information on our segments as of December 31, 2014, 2013 and 2012, and for the years then ended.

(In millions)	Composite Materials			Engineered Products		Corporate & Other			Total
Third-Party Sales
2014	$	1,420.9		$	434.6	$	—		$	1,855.5
2013		1,286.9			391.3		—			1,678.2
2012		1,230.9			347.3		—			1,578.2
Intersegment sales
2014	$	66.7		$	1.8	$	(68.5	)	$	—
2013		68.0			1.8		(69.8	)		—
2012		56.8			2.0		(58.8	)		—
Operating income (loss)
2014	$	308.8		$	67.0	$	(70.0	)	$	305.8
2013		276.3			58.9		(64.3	)		270.9
2012		257.3			50.6		(59.1	)		248.8
Depreciation
2014	$	65.5		$	5.5	$	0.2		$	71.2
2013		54.4			4.7		0.2			59.3
2012		52.6			4.5		0.1			57.2
Equity in earnings from affiliated companies
2014	$	—		$	1.4	$	—		$	1.4
2013		—			1.3		—			1.3
2012		—			0.7		—			0.7
Other expense (income), net
2014		—			—		6.0			6.0
2012		(14.5	)		—		5.0			(9.5	)
Segment assets
2014	$	1,600.7		$	241.1	$	194.6		$	2,036.4
2013		1,479.2			244.0		112.9			1,836.1
2012		1,295.4			215.2		92.5			1,603.1
Investments in affiliated companies
2014	$	10.2		$	24.0	$	—		$	34.2
2013		—			23.3		—			23.3
2012		—			22.6		—			22.6
Accrual basis additions to property, plant and equipment
2014	$	260.1		$	10.1	$	—		$	270.2
2013		194.6			11.9		—			206.5
2012		228.6			12.5		0.2			241.3

Geographic Data

Net sales and long-lived assets, by geographic area, consisted of the following for the three years ended December 31, 2014, 2013 and 2012:

(In millions)	2014		2013		2012
Net sales by Geography (a):
United States	$	933.2	$	871.0	$	801.4
International
France		346.9		321.1		302.9
Spain		183.4		164.8		150.6
United Kingdom		135.8		110.9		114.7
Austria		112.6		96.2		105.0
Other		143.6		114.2		103.6
Total international		922.3		807.2		776.8
Total consolidated net sales	$	1,855.5	$	1,678.2	$	1,578.2
Net Sales to External Customers (b):
United States	$	834.5	$	765.2	$	719.4
International
France		159.1		146.1		144.4
Spain		155.3		154.7		123.9
Germany		154.8		135.2		128.2
United Kingdom		95.6		81.4		82.2
Other		456.2		395.6		380.1
Total international		1,021.0		913.0		858.8
Total	$	1,855.5	$	1,678.2	$	1,578.2
Long-lived assets (c):
United States	$	990.1	$	854.6	$	733.5
International
United Kingdom		116.2		92.6		83.8
France		68.7		55.8		37.9
Spain		68.5		73.2		68.2
Other		88.8		75.5		48.8
Total international		342.2		297.1		238.7
Total consolidated long-lived assets	$	1,332.3	$	1,151.7	$	972.2

(a) Net sales by geography based on the location in which the product sold was manufactured.

(b) Net sales to external customers based on the location to which the product sold was delivered.

(c) Long-lived assets primarily consist of property, plant and equipment, net and goodwill.

Significant Customers and Suppliers

Boeing and its subcontractors accounted for approximately 32%, 34% and 29% of 2014, 2013 and 2012 net sales, respectively. Similarly, Airbus Group, including Airbus and its subcontractors, accounted for approximately 31%, 29% and 28% of 2014, 2013 and 2012 net sales, respectively. In the Composite Materials segment approximately 20%, 24% and 19% of sales for 2014, 2013 and 2012, respectively, were to Boeing and its subcontractors. Approximately 39%, 35% and 34% of sales for 2014, 2013 and 2012, respectively were to Airbus Group and its subcontractors. In the Engineered Products segment approximately 71%, 68% and 66% of sales for 2014, 2013 and 2012, respectively were to Boeing and its subcontractors.

A significant decline in business with Boeing or Airbus Group could materially impact our business, operating results, prospects and financial condition.

Certain key raw materials we consume are available from relatively few sources, and in many cases the cost of product qualification makes it impractical to develop multiple sources of supply. The lack of availability of these materials could under certain circumstances materially impact our consolidated results of operations.