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Segment Information | 12 Months Ended
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Dec. 31, 2017
Segment Information |
Segment Information | 7. SEGMENT INFORMATION Our reportable segments are Installation (TruTeam) and Distribution (Service Partners). Our Installation segment installs insulation and other building products. We sell primarily to the residential new construction market, with increasing activity in both the commercial construction industry and repair/remodel of residential housing. In addition to insulation, our installed product lines include rain gutters, fireproofing and firestopping products, garage doors, fireplaces, shower enclosures, closet shelving, and other building products. Our Distribution segment sells and distributes insulation and other building products. Our distributed products include insulation, insulation accessories, rain gutters, and roofing, among others. Distributed products are sold primarily to contractors and dealers (including lumber yards) from distribution centers in various parts of the United States. Our segments are based on our operating units, for which financial information is regularly evaluated by our corporate operating executives in determining resource allocation and assessing performance. Accounting policies for the segments are generally the same as those for the Company. The key performance metric we use to evaluate our businesses is segment operating profit. Operating profit for the individual segments includes corporate costs which are allocated to the segments based on various metrics including sales and headcount. Intercompany sales from the Distribution segment to the Installation segment are recorded by the Distribution segment with a profit margin and by our Installation segment at cost. The following table is a summary of the annual percentage of net sales by product category for the years ended December 31:
|  | 2017 |  |  | 2016 |  |  | 2015 |
Insulation |  | 72 | % |  | 71 | % |  | 72 | %
Rain gutters |  | 7 |  |  | 7 |  |  | 7 |
Accessories |  | 5 |  |  | 5 |  |  | 4 |
Afterpaint (shower enclosures, closet shelving, mirrors/glass, bath accessories, etc.) |  | 4 |  |  | 3 |  |  | 4 |
Fireproofing and firestopping |  | 3 |  |  | 2 |  |  | 2 |
Garage doors |  | 2 |  |  | 2 |  |  | 3 |
Fireplaces |  | 2 |  |  | 2 |  |  | 2 |
Roofing materials |  | 1 |  |  | 2 |  |  | 2 |
Other |  | 4 |  |  | 6 |  |  | 4 |
|  | 100 | % |  | 100 | % |  | 100 | %
Information about us by segment is as follows, for the years ended December 31, in thousands:
|  | Net Sales |  | Operating Profit (b)
|  |  | 2017 |  |  | 2016 |  |  | 2015 |  |  | 2017 |  |  | 2016 |  |  | 2015
Our operations by segment were (a): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Installation (exclusive of significant legal settlement, shown separately below) |  | $ | 1,281,296 |  | $ | 1,150,168 |  | $ | 1,057,553 |  | $ | 139,316 |  | $ | 97,140 |  | $ | 55,232
Significant legal settlement (Installation segment) (c) |  |  | — |  |  | — |  |  | — |  |  | (30,000) |  |  | — |  |  | —
Distribution |  |  | 719,759 |  |  | 676,672 |  |  | 646,441 |  |  | 68,733 |  |  | 59,654 |  |  | 55,700
Intercompany eliminations and other adjustments |  |  | (94,789) |  |  | (83,990) |  |  | (87,414) |  |  | (16,463) |  |  | (14,388) |  |  | (4,796)
Total |  | $ | 1,906,266 |  | $ | 1,742,850 |  | $ | 1,616,580 |  |  | 161,586 |  |  | 142,406 |  |  | 106,136
General corporate expense, net (d) |  |  |  |  |  |  |  |  |  |  |  | (24,722) |  |  | (20,802) |  |  | (22,605)
Operating profit, as reported |  |  |  |  |  |  |  |  |  |  |  | 136,864 |  |  | 121,604 |  |  | 83,531
Other expense, net |  |  |  |  |  |  |  |  |  |  |  | (8,824) |  |  | (5,331) |  |  | (9,416)
Income from continuing operations before income taxes |  |  |  |  |  |  |  |  |  |  | $ | 128,040 |  | $ | 116,273 |  | $ | 74,115
|  | Property Additions |  | Depreciation and Amortization |  | Total Assets
|  | 2017 |  | 2016 |  | 2015 |  | 2017 |  | 2016 |  | 2015 |  | 2017 |  | 2016
Our operations by segment were (a): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Installation |  | $ | 21,956 |  | $ | 7,584 |  | $ | 9,802 |  | $ | 12,208 |  | $ | 8,149 |  | $ | 8,371 |  | $ | 1,061,418 |  | $ | 934,499
Distribution |  |  | 5,845 |  |  | 3,348 |  |  | 3,123 |  |  | 3,561 |  |  | 3,604 |  |  | 3,699 |  |  | 599,503 |  |  | 584,421
Corporate |  |  | 1,620 |  |  | 3,433 |  |  | 1,302 |  |  | 684 |  |  | 258 |  |  | 38 |  |  | 88,628 |  |  | 171,199
Total, as reported |  | $ | 29,421 |  | $ | 14,365 |  | $ | 14,227 |  | $ | 16,453 |  | $ | 12,011 |  | $ | 12,108 |  | $ | 1,749,549 |  | $ | 1,690,119
(a) | All of our operations are located in the U.S.
(b) | Segment operating profit for years ended December 31, 2017 and 2016, includes an allocation of general corporate expenses attributable to the operating segments which is based on direct benefit or usage (such as salaries of corporate employees who directly support the segment). Segment operating profit for year ended December 31, 2015, includes an estimate of general corporate expense calculated based on a percentage of sales. For the year ended December 31, 2015, the $7.2 million difference between estimated expense and actual corporate expense, is recorded in intercompany eliminations and other adjustments.
(c) | Significant legal settlement expense of $30 million incurred for the twelve months ended December 31, 2017, related to the settlement agreement with Owens Corning. For more information see Note 11 – Other Commitments and Contingencies.
(d) | General corporate expense, net included expenses not specifically attributable to our segments for functions such as corporate human resources, finance, and legal, including salaries, benefits, and other related costs.

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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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