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SEGMENT INFORMATION | 12 Months Ended
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Dec. 31, 2017
Disclosure of entity's operating segments [Abstract] |
SEGMENT INFORMATION | PORTABLE OPERATING SEGMENTS The Company is organized in two reportable segments: Steel and Mining. The Steel segment includes the sales of steel products, which comprises slabs, hot rolled coils and sheets, cold rolled coils and sheets, tin plate, welded pipes, hot dipped galvanized and electro-galvanized sheets, pre-painted sheets, billets (steel in its basic, semi-finished state), wire rod and bars and other tailor-made products to serve its customers’ requirements. It also includes the sales of energy. The Steel segment comprises three operating segments: Mexico, Southern Region and Other markets. These three segments have been aggregated considering the economic characteristics and financial effects of each business activity in which the entity engages; the related economic environment in which it operates; the type or class of customer for the products; the nature of the products; and the production processes. The Mexico operating segment comprises the Company’s businesses in Mexico. The Southern region operating segment manages the businesses in Argentina, Paraguay, Chile, Bolivia and Uruguay. The Other markets operating segment includes businesses mainly in Brazil, United States, Colombia, Guatemala, Costa Rica, Honduras, El Salvador and Nicaragua. The Mining segment includes the sales of mining products, mainly iron ore and pellets, and comprises the mining activities of Las Encinas, an iron ore mining company in which Ternium holds a 100% equity interest and the 50% of the operations and results performed by Peña Colorada, another iron ore mining company in which Ternium maintains that same percentage over its equity interest. Both mining operations are located in Mexico. For Peña Colorada, the Company recognizes its assets, liabilities, revenue and expenses in relation to its interest in the joint operation. Ternium’s Chief Operating Decision Maker (CEO) holds monthly meetings with senior management, in which operating and financial performance information is reviewed, including financial information that differs from IFRS principally as follows:
- | The use of direct cost methodology to calculate the inventories, while under IFRS is at full cost, including absorption of production overheads and depreciation.
- | The use of costs based on previously internally defined cost estimates, while, under IFRS, costs are calculated at historical cost (with the FIFO method).
- | Other timing and non-significant differences.
Most information on segment assets is not disclosed as it is not reviewed by the CODM.
| Year ended December 31, 2017
| Steel |  | Mining |  | Inter- segment eliminations |  | Total
IFRS |  |  |  |  |  |  |
Net sales | 9,700,260 |  |  | 271,477 |  |  | (271,441 | ) |  | 9,700,296 |
Cost of sales | (7,465,751 | ) |  | (212,860 | ) |  | 275,586 |  |  | (7,403,025 | )
Gross profit | 2,234,509 |  |  | 58,617 |  |  | 4,145 |  |  | 2,297,271 |
Selling, general and administrative expenses | (811,487 | ) |  | (12,760 | ) |  | — |  |  | (824,247 | )
Other operating income, net | (17,011 | ) |  | 771 |  |  | — |  |  | (16,240 | )
Operating income - IFRS | 1,406,011 |  |  | 46,628 |  |  | 4,145 |  |  | 1,456,784 |
Management view |  |  |  |  |  |  |
Net sales | 9,700,260 |  |  | 287,152 |  |  | (287,116 | ) |  | 9,700,296 |
Operating income | 1,065,605 |  |  | 66,694 |  |  | (1,291 | ) |  | 1,131,008 |
Reconciliation items: |  |  |  |  |  |  |
Differences in Cost of sales |  |  |  |  |  |  | 325,776 |
Operating income - IFRS |  |  |  |  |  |  | 1,456,784 |
Financial income (expense), net |  |  |  |  |  |  | (165,090 | )
Equity in (losses) earnings of non-consolidated companies |  |  |  |  |  |  | 68,115 |
Income before income tax expense - IFRS |  |  |  |  |  |  | 1,359,809 |
Depreciation and amortization - IFRS | (424,529 | ) |  | (49,770 | ) |  | — |  |  | (474,299 | )
| Year ended December 31, 2016
| Steel |  | Mining |  | Inter- segment eliminations |  | Total
IFRS |  |  |  |  |  |  |
Net sales | 7,221,751 |  |  | 204,894 |  |  | (202,670 | ) |  | 7,223,975 |
Cost of sales | (5,391,038 | ) |  | (192,038 | ) |  | 198,686 |  |  | (5,384,390 | )
Gross profit | 1,830,713 |  |  | 12,856 |  |  | (3,984 | ) |  | 1,839,585 |
Selling, general and administrative expenses | (677,007 | ) |  | (10,935 | ) |  | — |  |  | (687,942 | )
Other operating income, net | (9,543 | ) |  | (382 | ) |  | — |  |  | (9,925 | )
Operating income - IFRS | 1,144,163 |  |  | 1,539 |  |  | (3,984 | ) |  | 1,141,718 |
Management view |  |  |  |  |  |  |
Net sales | 7,221,751 |  |  | 208,230 |  |  | (206,006 | ) |  | 7,223,975 |
Operating income | 936,164 |  |  | 3,871 |  |  | 269 |  |  | 940,303 |
Reconciliation items: |  |  |  |  |  |  |
Differences in Cost of sales |  |  |  |  |  |  | 201,415 |
Operating income - IFRS |  |  |  |  |  |  | 1,141,718 |
Financial income (expense), net |  |  |  |  |  |  | (37,885 | )
Equity in (losses) earnings of non-consolidated companies |  |  |  |  |  |  | 14,624 |
Income before income tax expense - IFRS |  |  |  |  |  |  | 1,118,457 |
Depreciation and amortization - IFRS | (361,685 | ) |  | (45,205 | ) |  | — |  |  | (406,890 | )
| Year ended December 31, 2015
| Steel |  | Mining |  | Inter- segment eliminations |  | Total
IFRS |  |  |  |  |  |  |
Net sales | 7,875,161 |  |  | 203,105 |  |  | (200,817 | ) |  | 7,877,449 |
Cost of sales | (6,456,584 | ) |  | (214,651 | ) |  | 193,963 |  |  | (6,477,272 | )
Gross profit | 1,418,577 |  |  | (11,546 | ) |  | (6,854 | ) |  | 1,400,177 |
Selling, general and administrative expenses | (757,078 | ) |  | (13,214 | ) |  | — |  |  | (770,292 | )
Other operating income, net | 9,151 |  |  | 303 |  |  | — |  |  | 9,454 |
Operating income - IFRS | 670,650 |  |  | (24,457 | ) |  | (6,854 | ) |  | 639,339 |
Management view |  |  |  |  |  |  |
Net sales | 7,875,161 |  |  | 216,095 |  |  | (213,807 | ) |  | 7,877,449 |
Operating income | 1,012,282 |  |  | (3,490 | ) |  | (640 | ) |  | 1,008,152 |
Reconciliation items: |  |  |  |  |  |  |
Differences in Cost of sales |  |  |  |  |  |  | (368,813 | )
Operating income - IFRS |  |  |  |  |  |  | 639,339 |
Financial income (expense), net |  |  |  |  |  |  | (99,430 | )
Equity in (losses) earnings of non-consolidated companies |  |  |  |  |  |  | (272,810 | )
Income before income tax expense - IFRS |  |  |  |  |  |  | 267,099 |
Depreciation and amortization - IFRS | (384,380 | ) |  | (49,408 | ) |  | — |  |  | (433,788 | )
GEOGRAPHICAL INFORMATION The Company has revenues attributable to the Company’s country of incorporation (Luxembourg), related to a contract acquired as a part of the business combination disclosed in note 3 (a). For purposes of reporting geographical information, net sales are allocated based on the customer’s location. Allocation of depreciation and amortization is based on the geographical location of the underlying assets.
| Year ended December 31, 2017
| Mexico |  | Southern region |  | Other markets (2) |  | Total
Net sales | 5,629,267 |  |  | 2,316,444 |  |  | 1,754,585 |  |  | 9,700,296 |
Non-current assets (1) | 4,042,914 |  |  | 643,411 |  |  | 1,756,007 |  |  | 6,442,332 |
| Year ended December 31, 2016
| Mexico |  | Southern region |  | Other markets |  | Total
Net sales | 4,491,761 |  |  | 1,867,622 |  |  | 864,592 |  |  | 7,223,975 |
Non-current assets (1) | 4,108,539 |  |  | 634,048 |  |  | 235,947 |  |  | 4,978,534 |
| Year ended December 31, 2015
| Mexico |  | Southern region |  | Other markets |  | Total
Net sales | 4,395,273 |  |  | 2,572,723 |  |  | 909,453 |  |  | 7,877,449 |
Non-current assets (1) | 4,166,148 |  |  | 682,705 |  |  | 246,919 |  |  | 5,095,772 |
(1) Includes Property, plant and equipment and Intangible assets. (2) Includes the assets related to the business acquisition disclosed in note 3 (a). REVENUES BY PRODUCT
| Year ended December 31,
| 2017 |  | 2016 |  | 2015
Semi-finished (1) | 123,752 |  |  | 19,878 |  |  | 88,264 |
Slabs | 715,513 |  |  | — |  |  | — |
Hot rolled (2) | 3,366,697 |  |  | 2,763,403 |  |  | 3,049,433 |
Cold rolled | 1,321,663 |  |  | 1,110,671 |  |  | 1,176,019 |
Coated (3) | 3,391,328 |  |  | 2,900,009 |  |  | 3,004,700 |
Roll-formed and tubular (4) | 472,253 |  |  | 413,991 |  |  | 509,034 |
Other products (5) | 309,090 |  |  | 16,023 |  |  | 49,999 |
TOTAL SALES | 9,700,296 |  |  | 7,223,975 |  |  | 7,877,449 |
(1) | Semi-finished includes billets and round bars.
(2) | Hot rolled includes hot rolled flat products, merchant bars, reinforcing bars, stirrups and rods.
(3) | Coated includes tin plate and galvanized products.
(4) | Roll-formed and tubular includes tubes, beams, insulated panels, roofing and cladding, roof tiles, steel decks and pre-engineered metal building systems.
(5) | Other products include mainly sales of energy and pig iron.

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