Business, Product and Geographical Area Information and Concentration of Risk

9 Months Ended

Sep. 30, 2019

Business, Product and Geographical Area Information and Concentration of Risk

Our primary line of business is the production of semi-fabricated specialty aluminum mill 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 12 focused production facilities in the United States and one in Canada. Our chief operating decision maker reviews and evaluates our business as a single operating segment.

At September 30, 2019, approximately 62% of our employees were covered by collective bargaining agreements and approximately 35% of our employees were covered by collective bargaining agreements with expiration dates occurring within one year from September 30, 2019.

Net sales by end market applications and by timing of control transfer for the periods presented were as follows (in millions of dollars):



	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Net sales:
Aero/HS products	$	198.9	$	185.7	$	586.8	$	540.9
Automotive Extrusions	47.5		56.1		146.0		183.9
GE products	117.1		133.9		375.3		425.1
Other products	11.4		17.4		37.3		46.6
Total net sales	$	374.9	$	393.1	$	1,145.4	$	1,196.5

Timing of revenue recognition:
Products transferred at a point in time	$	115.9	$	127.8	$	378.7	$	425.2
Products transferred over time	259.0		265.3		766.7		771.3
Total net sales	$	374.9	$	393.1	$	1,145.4	$	1,196.5

Geographic information for income taxes paid for the periods presented was as follows (in millions of dollars):



	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Income taxes paid:
Domestic	$	0.1	$	0.4	$	2.0	$	1.3
Foreign	0.4		—		1.6		2.0
Total income taxes paid	$	0.5	$	0.4	$	3.6	$	3.3

Concentrations. For the quarter ended September 30, 2019, one customer represented 24% and another represented 19% of Net sales. For the quarter ended September 30, 2018, one customer represented 26% and another represented 15% of Net sales. For the nine months ended September 30, 2019, one customer represented 25% and another represented 16% of Net sales. For the nine months ended September 30, 2018, one customer represented 26% and another represented 13% of Net sales.

At September 30, 2019, one individual customer accounted for 33% and another individual customer accounted for 12% of the accounts receivable balance. One individual customer accounted for 31% and another individual customer accounted for 11% of the accounts receivable balance at December 31, 2018.

Information about primary aluminum supply from our major suppliers for the periods presented was as follows:



	Quarter Ended				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Percentage of total primary aluminum supply (lbs):
Supply from our top five major suppliers	81	%	83	%	74	%	82	%
Supply from our largest supplier	23	%	33	%	21	%	36	%
Supply from our second and third largest suppliers combined	38	%	36	%	33	%	32	%