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Segment Information | 12 Months Ended
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Dec. 31, 2019
Segment Reporting [Abstract] |
Segment Information | Note 18 — Segment Information The financial results for our segments are prepared using a management approach, which is consistent with the basis and manner in which we internally segregate financial information for the purpose of assisting in making internal operating decisions. We evaluate the performance of our segments based on operating income, and generally account for intersegment sales based on arm’s length prices. We report two segments, Composite Materials and Engineered Products. Corporate and certain other expenses are not allocated to the segments, except to the extent that the expense can be directly attributable to the segment. Corporate & Other is shown to reconcile to Hexcel’s consolidated results. In addition to the product line-based segmentation of our business, we also monitor sales into our principal end markets as a means to understanding demand for our products. The following table presents financial information on our segments as of December 31, 2019, 2018 and 2017, and for the years then ended.
(In millions) |  | Composite Materials |  |  | Engineered Products |  |  | Corporate & Other |  |  | Total |
Third-party sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2019 |  | $ | 1,863.1 |  |  | $ | 492.6 |  |  | $ | — |  |  | $ | 2,355.7 |
2018 |  |  | 1,770.5 |  |  | 418.6 |  |  | — |  |  |  | 2,189.1 |
2017 |  |  | 1,597.1 |  |  | 376.2 |  |  | — |  |  |  | 1,973.3 |
Intersegment sales |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2019 |  | $ | 83.4 |  |  | $ | 0.8 |  |  | $ | (84.2 | ) |  | $ | — |
2018 |  | 74.6 |  |  | 0.1 |  |  |  | (74.7 | ) |  | — |
2017 |  | 63.6 |  |  | 0.4 |  |  |  | (64.0 | ) |  | — |
Operating income (loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2019 |  | $ | 411.3 |  |  | $ | 72.0 |  |  | $ | (58.1 | ) |  | $ | 425.2 |
2018 |  | 373.8 |  |  |  | 50.6 |  |  |  | (53.2 | ) |  | 371.2 |
2017 |  | 359.4 |  |  |  | 48.7 |  |  |  | (57.5 | ) |  | 350.6 |
Depreciation and amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2019 |  | $ | 126.5 |  |  | $ | 15.1 |  |  | $ | 0.1 |  |  | $ | 141.7 |
2018 |  |  | 113.9 |  |  | 9.1 |  |  | 0.1 |  |  |  | 123.1 |
2017 |  |  | 96.8 |  |  | 7.5 |  |  | 0.2 |  |  |  | 104.5 |
Equity in earnings from affiliated companies |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2019 |  | $ | (0.3 | ) |  | $ | 4.3 |  |  | $ | (0.3 | ) |  | $ | 3.7 |
2018 |  | — |  |  | 5.6 |  |  | — |  |  |  | 5.6 |
2017 |  | — |  |  | 3.3 |  |  | — |  |  | 3.3 |
Other expense (income), net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2018 |  | $ | — |  |  | $ | 7.7 |  |  | $ | — |  |  | $ | 7.7 |
Segment assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2019 |  | $ | 2,669.6 |  |  | $ | 465.2 |  |  | $ | (6.2 | ) |  | $ | 3,128.6 |
2018 |  |  | 2,501.9 |  |  | 272.9 |  |  |  | 49.3 |  |  |  | 2,824.1 |
2017 |  |  | 2,415.5 |  |  | 279.1 |  |  | 86.3 |  |  |  | 2,780.9 |
Investments in affiliated companies |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2019 |  | $ | 2.2 |  |  | $ | 36.1 |  |  | $ | 8.2 |  |  | $ | 46.5 |
2018 |  | 2.4 |  |  | 32.1 |  |  |  | 14.2 |  |  |  | 48.7 |
2017 |  | — |  |  | 26.5 |  |  |  | 21.2 |  |  | 47.7 |
Accrual basis additions to property, plant and equipment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2019 |  | $ | 185.8 |  |  | $ | 5.2 |  |  | $ | — |  |  | $ | 191.0 |
2018 |  | 173.5 |  |  | 5.6 |  |  | — |  |  |  | 179.1 |
2017 |  |  | 270.3 |  |  |  | 14.1 |  |  | — |  |  |  | 284.4 |
Geographic Data Net sales and long-lived assets, by geographic area, consisted of the following for the three years ended December 31, 2019, 2018 and 2017:
(In millions) |  | 2019 |  |  | 2018 |  |  | 2017 |
Net Sales by Geography (a): |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 1,246.9 |  |  | $ | 1,055.9 |  |  | $ | 937.3 |
International |  |  |  |  |  |  |  |  |  |  |  |
France |  | 364.3 |  |  | 369.8 |  |  | 335.7 |
Spain |  | 166.6 |  |  | 189.5 |  |  |  | 187.0 |
Germany |  |  | 221.3 |  |  |  | 216.0 |  |  |  | 206.0 |
United Kingdom |  | 168.9 |  |  | 167.3 |  |  | 160.4 |
Austria |  | 110.1 |  |  | 111.4 |  |  | 86.1 |
Other |  | 77.6 |  |  | 79.2 |  |  | 60.8 |
Total international |  |  | 1,108.8 |  |  |  | 1,133.2 |  |  |  | 1,036.0 |
Total consolidated net sales |  | $ | 2,355.7 |  |  | $ | 2,189.1 |  |  | $ | 1,973.3 |
Net Sales to External Customers (b): |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 1,083.3 |  |  | $ | 909.8 |  |  | $ | 806.6 |
International |  |  |  |  |  |  |  |  |  |  |  |
Germany |  | 212.8 |  |  | 233.1 |  |  | 217.7 |
France |  |  | 191.9 |  |  | 201.7 |  |  | 161.5 |
Spain |  |  | 188.0 |  |  | 194.1 |  |  | 199.4 |
United Kingdom |  |  | 77.4 |  |  |  | 79.0 |  |  | 80.1 |
Other |  |  | 602.3 |  |  |  | 571.4 |  |  |  | 508.0 |
Total international |  |  | 1,272.4 |  |  |  | 1,279.3 |  |  |  | 1,166.7 |
Total |  | $ | 2,355.7 |  |  | $ | 2,189.1 |  |  | $ | 1,973.3 |
Long-lived Assets (c): |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 1,609.2 |  |  | $ | 1,332.1 |  |  | $ | 1,304.4 |
International |  |  |  |  |  |  |  |  |  |  |  |
France |  | 387.1 |  |  | 397.7 |  |  | 402.7 |
United Kingdom |  | 151.9 |  |  | 146.1 |  |  | 151.6 |
Spain |  | 57.2 |  |  | 56.6 |  |  | 61.7 |
Other |  | 84.3 |  |  | 86.3 |  |  | 94.6 |
Total international |  | 680.5 |  |  |  | 686.7 |  |  |  | 710.6 |
Total consolidated long-lived assets |  | $ | 2,289.7 |  |  | $ | 2,018.8 |  |  | $ | 2,015.0 |
(a) | Net sales by geography based on the location in which the product sold was manufactured.
(b) | Net sales to external customers based on the location to which the product sold was delivered.
(c) | Long-lived assets primarily consist of property, plant and equipment, net and goodwill at December 31, 2019, 2018 and 2017. Also included at December 31, 2019 are right of use assets related to operating leases.
Significant Customers and Suppliers Approximately 39%, 41% and 44% of our 2019, 2018 and 2017 net sales, respectively, were to Airbus and its subcontractors. Of the 39% of overall sales to Airbus and its subcontractors in 2019, 36% related to Commercial Aerospace market applications and 3% related to Space & Defense market applications. Approximately 25% of our net sales for 2019, 2018 and 2017 were to Boeing and related subcontractors. Of the 25% of overall sales to Boeing and its subcontractors in 2019, 23% related to Commercial Aerospace market applications and 2% related to Space & Defense market applications. In the Composite Materials segment approximately 17% of sales for 2019 and 16% for 2018 and 2017, were to Boeing and its subcontractors. Approximately 44%, 46% and 50% of sales for 2019, 2018 and 2017, respectively were to Airbus and its subcontractors. In the Engineered Products segment approximately 55%, 63% and 64% of sales for 2019, 2018 and 2017, respectively were to Boeing and its subcontractors. A significant decline in business with Airbus or Boeing could materially impact our business, operating results, prospects and financial condition. Certain key raw materials we consume are available from relatively few sources, and in many cases the cost of product qualification makes it impractical to develop multiple sources of supply. The lack of availability of these materials could under certain circumstances materially impact our consolidated results of operations.

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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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