XML 68 R19.htm IDEA: XBRL DOCUMENT
v3.3.0.814

Segment Information | 9 Months Ended
--- | ---
Sep. 30, 2015
Segment Reporting [Abstract] |
Segment and Geographical Area Information | Segment and Geographical Area Information Our primary line of business is the production of semi-fabricated specialty aluminum products for the following end market applications: aerospace and high strength products ("Aero/HS products"); extrusions for automotive applications ("Automotive Extrusions"); general engineering products ("GE products"); and other industrial products ("Other products"). We operate 11 focused production facilities in the United States and one in Canada. Consistent with the manner in which our chief operating decision maker reviews and evaluates our business, the Fabricated Products business is treated as a single operating segment. In addition to the Fabricated Products segment, we have a business unit, All Other, which provides general and administrative support for our operations. For purposes of segment reporting under GAAP, we treat the Fabricated Products segment as a reportable segment. All Other is not considered a reportable segment. The accounting policies of the Fabricated Products segment are the same as those described in Note 1. Segment results are evaluated internally by management before any allocation of corporate overhead and without any charge for income taxes, interest expense, or other net operating charges. The following tables provide financial information by reporting segment and business unit for each period or as of each period-end, as applicable (in millions of dollars):
| Quarter Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Net sales: |  |  |  |  |  |  |
Fabricated Products | $ | 336.4 |  |  | $ | 338.9 |  |  | $ | 1,075.3 |  |  | $ | 1,018.1 |
Segment operating income (loss): |  |  |  |  |  |  |
Fabricated Products 1 | $ | 47.3 |  |  | $ | 35.6 |  |  | $ | 142.8 |  |  | $ | 121.2 |
All Other 2 | (6.8 | ) |  | (3.0 | ) |  | (523.9 | ) |  | (10.1 | )
Total operating income (loss) | $ | 40.5 |  |  | $ | 32.6 |  |  | $ | (381.1 | ) |  | $ | 111.1 |
Interest expense | (4.9 | ) |  | (9.7 | ) |  | (19.9 | ) |  | (27.7 | )
Other (expense) income, net | (0.9 | ) |  | 2.2 |  |  | (0.1 | ) |  | 5.9 |
Income (loss) before income taxes | $ | 34.7 |  |  | $ | 25.1 |  |  | $ | (401.1 | ) |  | $ | 89.3 |
Depreciation and amortization: |  |  |  |  |  |  |
Fabricated Products | $ | 7.9 |  |  | $ | 7.8 |  |  | $ | 23.8 |  |  | $ | 22.7 |
All Other | 0.2 |  |  | 0.2 |  |  | 0.4 |  |  | 0.4 |
Total depreciation and amortization | $ | 8.1 |  |  | $ | 8.0 |  |  | $ | 24.2 |  |  | $ | 23.1 |
Capital expenditures: |  |  |  |  |  |  |
Fabricated Products | $ | 15.1 |  |  | $ | 9.3 |  |  | $ | 37.8 |  |  | $ | 38.8 |
All Other | 0.4 |  |  | 0.2 |  |  | 0.6 |  |  | 0.8 |
Total capital expenditures | $ | 15.5 |  |  | $ | 9.5 |  |  | $ | 38.4 |  |  | $ | 39.6 |
_____________________
1 | Fabricated Products segment operating income included non-cash mark-to-market losses on primary aluminum, natural gas, electricity and foreign currency hedging activities, which totaled $1.7 million and $3.5 million for the quarters ended September 30, 2015 and September 30, 2014, respectively. There was a $7.7 million non-cash mark-to-market loss on primary aluminum, natural gas, electricity and foreign currency hedging activities for the nine months ended September 30, 2015 and none for the nine months ended September 30, 2014. For further discussion regarding mark-to-market matters, see Note 8.
2 | Operating loss in All Other included Net periodic postretirement benefit cost (income) of $0.6 million and $(6.0) million for the quarters ended September 30, 2015 and September 30, 2014, respectively, and $1.8 million and $(17.7) million for the nine months ended September 30, 2015 and September 30, 2014, respectively. Additionally, operating loss in All Other included (gain) loss on removal of Union VEBA net assets of $(2.9) million and $490.9 million during the quarter and nine months ended September 30, 2015, respectively. See Note 5 for further details.
| September 30, 2015 |  | December 31, 2014
Assets: |  |  |
Fabricated Products | $ | 897.3 |  |  | $ | 878.9 |
All Other 1 | 365.8 |  |  | 864.8 |
Total assets | $ | 1,263.1 |  |  | $ | 1,743.7 |
_____________________
1 | Assets in All Other represent primarily all of our cash and cash equivalents, short-term investments, financial derivative assets, net assets of VEBAs (see Note 5 and Note 9) and net deferred income tax assets.
Net sales by product categories based on end market applications for the Fabricated Products segment were as follows (in millions of dollars):
| Quarter Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Net sales: |  |  |  |  |  |  |
Aero/HS products | $ | 170.0 |  |  | $ | 172.5 |  |  | $ | 531.4 |  |  | $ | 509.1 |
Automotive Extrusions | 49.5 |  |  | 44.0 |  |  | 153.3 |  |  | 129.5 |
GE products | 100.4 |  |  | 103.6 |  |  | 331.5 |  |  | 323.1 |
Other products | 16.5 |  |  | 18.8 |  |  | 59.1 |  |  | 56.4 |
Total net sales | $ | 336.4 |  |  | $ | 338.9 |  |  | $ | 1,075.3 |  |  | $ | 1,018.1 |
Geographic information for income taxes paid were as follows (in millions of dollars):
| Quarter Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Income taxes paid: |  |  |  |  |  |  |
Fabricated Products — |  |  |  |  |  |  |
United States | $ | 0.1 |  |  | $ | 1.4 |  |  | $ | 0.4 |  |  | $ | 1.6 |
Canada | 0.2 |  |  | 0.2 |  |  | 1.5 |  |  | 1.1 |
Total income taxes paid | $ | 0.3 |  |  | $ | 1.6 |  |  | $ | 1.9 |  |  | $ | 2.7 |
The aggregate foreign currency transaction gains (losses) included in determining net income were immaterial for the quarters and nine months ended September 30, 2015 and September 30, 2014. For both quarters ended September 30, 2015 and September 30, 2014, one customer represented 25% of Fabricated Products Net sales. For the nine months ended September 30, 2015 and September 30, 2014, one customer represented 25% and 26%, respectively, of Fabricated Products Net sales. No other individual customer accounted for more than 10% of Fabricated Products Net sales during the quarters and nine months ended September 30, 2015 and September 30, 2014. At September 30, 2015, one customer represented 17% and no other individual customers accounted for 10% or more of the trade receivables balance. Two individual customers accounted for 10% and 12% of the trade receivables balance at December 31, 2014. Information for contractual delivery of our primary aluminum supply from our major suppliers were as follows:
| Quarter Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2015 |  | 2014 |  | 2015 |  | 2014
Percentage of total annual primary aluminum supply (lbs): |  |  |  |  |  |  |
Supply from the Company's top five major suppliers | 84 | % |  | 82 | % |  | 86 | % |  | 79 | %
Supply from the Company's largest supplier | 28 | % |  | 31 | % |  | 28 | % |  | 30 | %
Supply from the Company's second and third largest suppliers | 45 | % |  | 34 | % |  | 36 | % |  | 32 | %

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&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=51669610&loc=d3e8906-108599 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration