Segment and Geographical Area Information

Our primary line of business is the production of semi-fabricated specialty aluminum products, such as aluminum plate and sheet and extruded and drawn products, primarily used in Aero/HS products, Automotive Extrusions, GE products and Other products. We operate 11 focused production facilities in the United States and one in Canada. Consistent with the manner in which our chief operating decision maker reviews and evaluates our business, the Fabricated Products business is treated as a single operating segment. At December 31, 2017, approximately 63% of our employees were covered by collective bargaining agreements and approximately 12% of our employees were covered by collective bargaining agreements with expiration dates occurring within one year from December 31, 2017.

In addition to the Fabricated Products segment, we have a business unit, All Other, which provides general and administrative support for our operations. For purposes of segment reporting under GAAP, we treat the Fabricated Products segment as a reportable segment. All Other is not considered a reportable segment.

The accounting policies of our Fabricated Products segment are the same as those described in Note 1. Segment results are evaluated internally by management before any allocation of corporate overhead and without any charge for income taxes, interest expense or other net operating charges.

The following tables provide financial information by reporting segment and business unit for each period or as of each period end, as applicable (in millions of dollars):



	Year Ended December 31,
	2017			2016			2015
Net sales:
Fabricated Products	$	1,397.5		$	1,330.6		$	1,391.9
Segment operating income (loss):
Fabricated Products	201.3			229.6			190.8
All Other	(50.6		)	(51.8		)	(536.7		)
Total operating income (loss)	150.7			177.8			(345.9		)
Interest expense	(22.2		)	(20.3		)	(24.1		)
Other income (expense) , net	4.5			(10.3		)	(1.8		)
Income (loss) before income taxes	$	133.0		$	147.2		$	(371.8	)
Depreciation and amortization:
Fabricated Products	$	39.0		$	35.4		$	31.9
All Other	0.7			0.6			0.5
Total depreciation and amortization	$	39.7		$	36.0		$	32.4
Capital expenditures:
Fabricated Products	$	75.3		$	75.6		$	62.4
All Other	0.2			0.5			0.7
Total capital expenditures	$	75.5		$	76.1		$	63.1



	December 31,
	2017		2016		2015
Assets:
Fabricated Products	$	1,046.8	$	969.4	$	904.7
All Other¹	338.4		474.1		342.2
Total assets	$	1,385.2	$	1,443.5	$	1,246.9

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^1.	Assets in All Other represent primarily all of our cash, cash equivalents and restricted cash, short-term investments, financial derivative assets, deferred compensation program assets and net deferred income tax assets.

Net sales by end market applications for the Fabricated Products segment were as follows (in millions of dollars):



	Year Ended December 31,
	2017		2016		2015
Net sales:
Aero/HS products	$	653.7	$	675.4	$	695.5
Automotive Extrusions	217.3		188.8		199.2
GE products	476.2		420.1		426.1
Other products	50.3		46.3		71.1
Total net sales	$	1,397.5	$	1,330.6	$	1,391.9

Geographic information for net sales based on country of origin, income taxes paid and long-lived assets were as follows (in millions of dollars):



	Year Ended December 31,
	2017		2016		2015
Net sales to unaffiliated customers:
Fabricated Products –
Domestic	$	1,337.3	$	1,278.6	$	1,321.3
Foreign¹	60.2		52.0		70.6
Total net sales	$	1,397.5	$	1,330.6	$	1,391.9
Income taxes paid:
Fabricated Products –
Domestic	$	1.2	$	0.7	$	0.6
Foreign	0.1		0.5		1.7
Total income taxes paid	$	1.3	$	1.2	$	2.3



	December 31,
	2017		2016		2015
Long-lived assets:²
Fabricated Products –
Domestic	$	536.6	$	494.7	$	459.6
Foreign	30.2		31.4		30.9
Total Fabricated Products long-lived assets	566.8		526.1		490.5
All Other –
Domestic	4.6		4.8		4.9
Total All Other long-lived assets	4.6		4.8		4.9
Total long-lived assets	$	571.4	$	530.9	$	495.4

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^1.	Foreign net sales reflect sales shipped from our London, Ontario production facility.


^2.	Long-lived assets represent Property, plant and equipment, net.

The aggregate foreign currency transaction gain (loss) included in determining net income (loss) were immaterial for 2017, 2016 and 2015.

For the years ended December 31, 2017, December 31, 2016 and December 31, 2015, one customer represented 27%, 26% and 25%, respectively, of Fabricated Products Net sales. For the year ended December 31, 2017, a second customer represented 12% of Fabricated Products Net sales. For each of the years ended December 31, 2016, and December 31, 2015, a second customer represented 10% of Fabricated Products Net sales.

One individual customer accounted for 22% and another individual customer accounted for 14% of the trade receivables balance at December 31, 2017. One individual customer accounted for 18% and two individual customers each accounted for 14% of the trade receivables balance at December 31, 2016.

Information for export sales and primary aluminum supply from our major suppliers were as follows:



	Year Ended December 31,
	2017		2016		2015
Percentage of Net sales:
Export sales	18	%	19	%	19	%

Percentage of total annual primary aluminum supply (lbs):
Supply from our top five major suppliers	85	%	84	%	86	%
Supply from our largest supplier	36	%	32	%	28	%
Supply from our second and third largest suppliers combined	33	%	32	%	36	%