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Segment and Geographic Information | 12 Months Ended
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Dec. 31, 2019
Segments, Geographical Areas [Abstract] |
Segment Reporting Disclosure [Text Block] | 17. SEGMENT AND GEOGRAPHIC INFORMATION In the first quarter of 2019, we reorganized our business to disaggregate our former Powertrain segment, with a portion moving to our Driveline segment and a portion moving to our Metal Forming segment. The Powertrain amounts previously reported for the years ended December 31, 2018 and 2017 have been reclassified to Driveline and Metal Forming accordingly. Additionally, in the fourth quarter of 2019, we completed the Casting Sale. The Casting Sale did not include the entities that conduct AAM's casting operations in El Carmen, Mexico, which are now included in our Driveline segment. The Casting Sale did not qualify for classification as discontinued operations, as it did not represent a strategic shift in our business that has had, or will have, a major effect on our operations and financial results. As such, we continue to present Casting as a segment in the tables below, which is now comprised entirely of the U.S. casting operations that were included in the Casting Sale. The amounts previously reported in our Casting segment for the retained operations in El Carmen, Mexico have been reclassified to our Driveline segment for the years presented. As a result of these activities, our business is now organized into Driveline and Metal Forming segments, with each representing a reportable segment under ASC 280 Segment Reporting. The results of each segment are regularly reviewed by the chief operating decision maker to assess the performance of the segment and make decisions regarding the allocation of resources. Our product offerings by segment are as follows:
• | Driveline products consist primarily of front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles (SUVs), crossover vehicles, passenger cars and commercial vehicles;
• | Metal Forming products consist primarily of axle and transmission shafts, ring and pinion gears, differential gears and assemblies, connecting rods and variable valve timing products for Original Equipment Manufacturers and Tier 1 automotive suppliers; and
• | Prior to the Casting Sale, the Casting segment produced both thin wall castings and high strength ductile iron castings, as well as transmission pump bodies, steering knuckles, control arms, brake anchors and calipers, and ball joint housings for the global light vehicle, commercial and industrial markets.
We use Segment Adjusted EBITDA as the measure of earnings to assess the performance of each segment and determine the resources to be allocated to the segments. Segment Adjusted EBITDA is defined as earnings before interest expense, income taxes, depreciation and amortization for our reportable segments, excluding the impact of restructuring and acquisition-related costs, debt refinancing and redemption costs, gain (loss) on the sale of a business, impairment charges, pension settlements, and non-recurring items.
|  | Year Ended December 31, 2019
|  | Driveline |  | Metal Forming |  | Casting |  | Corporate and Eliminations |  | Total
|  | (in millions)
Sales |  | $ | 4,550.2 |  |  | $ | 1,845.2 |  |  | $ | 669.2 |  |  | $ | — |  |  | $ | 7,064.6 |
Less: Intersegment sales |  | 100.5 |  |  | 391.7 |  |  | 41.5 |  |  | — |  |  | 533.7 |
Net external sales |  | $ | 4,449.7 |  |  | $ | 1,453.5 |  |  | $ | 627.7 |  |  | $ | — |  |  | $ | 6,530.9 |
Segment adjusted EBITDA |  | $ | 610.8 |  |  | $ | 316.5 |  |  | $ | 43.0 |  |  | $ | — |  |  | $ | 970.3 |
Depreciation and amortization |  | $ | 307.7 |  |  | $ | 186.9 |  |  | $ | 42.3 |  |  | $ | — |  |  | $ | 536.9 |
Capital expenditures |  | $ | 283.8 |  |  | $ | 105.5 |  |  | $ | 28.5 |  |  | $ | 15.5 |  |  | $ | 433.3 |
Total assets |  | $ | 3,778.8 |  |  | $ | 1,900.0 |  |  | $ | — |  |  | $ | 965.8 |  |  | $ | 6,644.6 |
|  | Year Ended December 31, 2018
|  | Driveline |  | Metal Forming |  | Casting |  | Corporate and Eliminations |  | Total
Sales |  | $ | 5,001.2 |  |  | $ | 2,046.0 |  |  | $ | 780.6 |  |  | $ | — |  |  | $ | 7,827.8 |
Less: Intersegment sales |  | 89.8 |  |  | 428.3 |  |  | 39.3 |  |  | — |  |  | 557.4 |
Net external sales |  | $ | 4,911.4 |  |  | $ | 1,617.7 |  |  | $ | 741.3 |  |  | $ | — |  |  | $ | 7,270.4 |
Segment adjusted EBITDA |  | $ | 754.5 |  |  | $ | 376.5 |  |  | $ | 52.9 |  |  | $ | — |  |  | $ | 1,183.9 |
Depreciation and amortization |  | $ | 272.0 |  |  | $ | 192.6 |  |  | $ | 64.2 |  |  | $ | — |  |  | $ | 528.8 |
Capital expenditures |  | $ | 339.4 |  |  | $ | 138.3 |  |  | $ | 35.0 |  |  | $ | 12.0 |  |  | $ | 524.7 |
Total assets |  | $ | 3,796.6 |  |  | $ | 2,607.2 |  |  | $ | 521.5 |  |  | $ | 585.4 |  |  | $ | 7,510.7 |
|  | Year Ended December 31, 2017
|  | Driveline |  | Metal Forming |  | Casting |  | Corporate and Eliminations |  | Total
Sales |  | $ | 4,567.8 |  |  | $ | 1,634.9 |  |  | $ | 576.1 |  |  | $ | — |  |  | $ | 6,778.8 |
Less: Intersegment sales |  | 65.9 |  |  | 417.7 |  |  | 29.2 |  |  | — |  |  | 512.8 |
Net external sales |  | $ | 4,501.9 |  |  | $ | 1,217.2 |  |  | $ | 546.9 |  |  | $ | — |  |  | $ | 6,266.0 |
Segment adjusted EBITDA |  | $ | 762.3 |  |  | $ | 305.7 |  |  | $ | 34.7 |  |  | $ | — |  |  | $ | 1,102.7 |
Depreciation and amortization |  | $ | 237.3 |  |  | $ | 147.8 |  |  | $ | 43.4 |  |  | $ | — |  |  | $ | 428.5 |
Capital expenditures |  | $ | 340.2 |  |  | $ | 97.7 |  |  | $ | 24.7 |  |  | $ | 15.1 |  |  | $ | 477.7 |
Total assets |  | $ | 3,507.0 |  |  | $ | 2,731.1 |  |  | $ | 926.0 |  |  | $ | 718.7 |  |  | $ | 7,882.8 |
Assets included in the Corporate and Eliminations column of the tables above represent AAM corporate assets, as well as eliminations of intercompany assets. The following table represents a reconciliation of Segment Adjusted EBITDA to consolidated income (loss) before income taxes for the years ended December 31, 2019, 2018 and 2017:
|  | Year Ended December 31,
|  | 2019 |  | 2018 |  | 2017
|  | (in millions)
Segment adjusted EBITDA |  | $ | 970.3 |  |  | $ | 1,183.9 |  |  | $ | 1,102.7 |
Interest expense |  | (217.3 | ) |  | (216.3 | ) |  | (195.6 | )
Depreciation and amortization |  | (536.9 | ) |  | (528.8 | ) |  | (428.5 | )
Impairment charges |  | (665.0 | ) |  | (485.5 | ) |  | — |
Restructuring and acquisition-related costs |  | (57.8 | ) |  | (78.9 | ) |  | (110.7 | )
Pension settlement |  | (9.8 | ) |  | — |  |  | (3.2 | )
Gain (loss) on sale of business |  | (21.3 | ) |  | 15.5 |  |  | — |
Gain on bargain purchase of business |  | 10.8 |  |  | — |  |  | — |
Gain on settlement of capital lease |  | — |  |  | 15.6 |  |  | — |
Acquisition-related fair value inventory adjustment |  | — |  |  | — |  |  | (24.9 | )
Impact of change in accounting principle |  | — |  |  | — |  |  | 3.7 |
Debt refinancing and redemption costs |  | (8.4 | ) |  | (19.4 | ) |  | (3.5 | )
Other |  | 2.4 |  |  | — |  |  | — |
Income (loss) before income taxes |  | $ | (533.0 | ) |  | $ | (113.9 | ) |  | $ | 340.0 |
Financial information relating to our operations by geographic area is presented in the following table. Net sales are attributed to countries based upon location of production. Long-lived assets exclude deferred income taxes.
| December 31,
| 2019 |  | 2018 |  | 2017
| (in millions)
Net sales |  |  |  |  |
United States | $ | 2,894.0 |  |  | $ | 3,293.2 |  |  | $ | 2,742.7 |
Mexico | 2,353.1 |  |  | 2,547.1 |  |  | 2,456.1 |
South America | 105.3 |  |  | 129.7 |  |  | 133.2 |
China | 315.4 |  |  | 373.4 |  |  | 318.6 |
All other Asia | 255.8 |  |  | 304.9 |  |  | 193.9 |
Europe | 607.3 |  |  | 622.1 |  |  | 421.5 |
Total net sales | $ | 6,530.9 |  |  | $ | 7,270.4 |  |  | $ | 6,266.0 |
Long-lived assets |  |  |  |  |
United States | $ | 2,805.8 |  |  | $ | 3,612.3 |  |  | $ | 4,253.8 |
Mexico | 1,117.4 |  |  | 1,117.9 |  |  | 993.8 |
South America | 61.9 |  |  | 70.6 |  |  | 61.4 |
China | 191.4 |  |  | 177.6 |  |  | 180.9 |
All other Asia | 106.8 |  |  | 101.0 |  |  | 103.4 |
Europe | 439.4 |  |  | 356.0 |  |  | 307.4 |
Total long-lived assets | $ | 4,722.7 |  |  | $ | 5,435.4 |  |  | $ | 5,900.7 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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- References No definition available. + Details
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