XML 32 R22.htm IDEA: XBRL DOCUMENT v3.20.1
Segment Reporting (Notes)
 3 Months Ended
Mar. 31, 2020
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
14. SEGMENT REPORTING

Our business is organized into Driveline and Metal Forming segments, with each representing a reportable segment under ASC 280 Segment Reporting. In the fourth quarter of 2019, we completed the Casting Sale, which 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 table below for the three months ended March 31, 2019, and the reported amounts are now comprised entirely of the U.S. casting operations that were included in the 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 three months ended March 31, 2019.

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 to the segments.

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; and
•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.

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. We define EBITDA to be earnings before interest expense, income taxes, depreciation and amortization. Segment Adjusted EBITDA is defined as EBITDA 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.
The following tables represent information by reportable segment for the three months ended March 31, 2020 and 2019 (in millions):
Three Months Ended March 31, 2020
DrivelineMetal FormingCastingTotal
Sales$1,031.7  $422.3  $—  $1,454.0  
Less: intersegment sales19.7  90.8  —  110.5  
Net external sales$1,012.0  $331.5  $—  $1,343.5  
Segment Adjusted EBITDA$139.3  $74.0  $—  $213.3  
Three Months Ended March 31, 2019
DrivelineMetal FormingCastingTotal
Sales$1,166.3  $483.3  $193.7  $1,843.3  
Less: intersegment sales17.6  95.2  11.3  124.1  
Net external sales$1,148.7  $388.1  $182.4  $1,719.2  
Segment Adjusted EBITDA$142.8  $84.4  $17.8  $245.0  
The following table represents a reconciliation of Total Segment Adjusted EBITDA to consolidated income (loss) before income taxes for the three months ended March 31, 2020 and 2019 (in millions):
Three Months Ended March 31,
20202019
Total segment adjusted EBITDA$213.3  $245.0  
Interest expense(51.5) (53.4) 
Depreciation and amortization(129.6) (140.8) 
Restructuring and acquisition-related costs(17.6) (12.1) 
Loss on sale of business(1.0) —  
Debt refinancing and redemption costs(1.5) —  
Impairment charge(510.0) —  
Income (loss) before income taxes$(497.9) $38.7