XML 31 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment and Geographical Area Information
 6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment and Geographical Area Information
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 June 30, 2018, approximately 62% of our employees were covered by collective bargaining agreements and none of our employees were covered by collective bargaining agreements with expiration dates occurring within one year from June 30, 2018.
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):
 
Quarter Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Net sales:
 
 
 
 
 
 
 
Fabricated Products
$
415.4

 
$
356.3

 
$
803.4

 
$
711.6

Segment operating income (loss):
 
 
 
 
 
 
 
Fabricated Products
$
48.3

 
$
25.6

 
$
97.8

 
$
96.2

All Other
(13.6
)
 
(13.1
)
 
(26.0
)
 
(24.4
)
Total operating income
34.7

 
12.5

 
71.8

 
71.8

Interest expense
(5.7
)
 
(5.5
)
 
(11.3
)
 
(11.1
)
Other (expense) income, net
(0.5
)
 
(0.1
)
 
(0.4
)
 
0.7

Income before income taxes
$
28.5

 
$
6.9

 
$
60.1

 
$
61.4

Depreciation and amortization:
 
 
 
 
 
 
 
Fabricated Products
$
10.8

 
$
9.4

 
$
21.1

 
$
18.8

All Other
0.1

 
0.1

 
0.3

 
0.3

Total depreciation and amortization
$
10.9

 
$
9.5

 
$
21.4

 
$
19.1

Capital expenditures:
 
 
 
 
 
 
 
Fabricated Products
$
16.0

 
$
24.8

 
$
35.6

 
$
39.4

All Other
0.1

 
0.1

 
0.2

 
0.3

Total capital expenditures
$
16.1

 
$
24.9

 
$
35.8

 
$
39.7


 
June 30, 2018
 
December 31, 2017
Assets:
 
 
 
Fabricated Products
$
1,097.6

 
$
1,046.8

All Other1
326.2

 
338.4

Total assets
$
1,423.8

 
$
1,385.2


____________________
1 
Assets in All Other represent primarily all of our cash, cash equivalents and restricted cash, short-term investments, deferred compensation program assets and net deferred income tax assets.
Net sales by end market applications and by timing of transfer for the Fabricated Products segment were as follows (in millions of dollars):
 
Quarter Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Net sales:
 
 
 
 
 
 
 
Aero/HS products
$
185.0

 
$
165.5

 
$
355.2

 
$
333.0

Automotive Extrusions
67.3

 
55.9

 
127.8

 
108.9

GE products
147.9

 
122.0

 
291.2

 
245.2

Other products
15.2

 
12.9

 
29.2

 
24.5

Total net sales
$
415.4

 
$
356.3

 
$
803.4

 
$
711.6

 
 
 
 
 
 
 
 
Timing of revenue recognition – Note 8:
 
 
 
 
 
 
 
Products transferred at a point in time
$
140.8

 
n/a

 
$
297.4

 
n/a

Products transferred over time
274.6

 
n/a

 
506.0

 
n/a

Total net sales
$
415.4

 
 
 
$
803.4

 
 

Geographic information for income taxes paid was as follows (in millions of dollars):
 
Quarter Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Income taxes paid:
 
 
 
 
 
 
 
Fabricated Products –
 
 
 
 
 
 
 
Domestic
$
0.7

 
$
0.3

 
$
0.9

 
$
0.4

Foreign
2.0

 
—

 
2.0

 
0.1

Total income taxes paid
$
2.7

 
$
0.3

 
$
2.9

 
$
0.5


Concentrations. For the quarter ended June 30, 2018, one customer represented 27% and another represented 11% of Fabricated Products Net sales. For the quarter ended June 30, 2017, one customer represented 28% and another represented 12% of Fabricated Products Net Sales. For the six months ended June 30, 2018, one customer represented 27% and another represented 12% of Fabricated Products Net sales. For the six months ended June 30, 2017, one customer represented 29% and another represented 11% of Fabricated Products Net Sales.
At June 30, 2018, one individual customer accounted for 22% and another individual customer accounted for 15% of Trade receivables, net. One individual customer accounted for 22% and another individual customer accounted for 14% of Trade receivables, net at December 31, 2017.
Information for delivery of our primary aluminum supply from our major suppliers was as follows:
 
Quarter Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Percentage of total primary aluminum supply (lbs):
 
 
 
 
 
 
 
Supply from our top five major suppliers
83
%
 
80
%
 
82
%
 
80
%
Supply from our largest supplier
35
%
 
24
%
 
37
%
 
25
%
Supply from our second and third largest suppliers combined
34
%
 
35
%
 
30
%
 
33
%