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Segment and Geographical Area Information | 9 Months Ended
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Sep. 30, 2017
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, such as aluminum plate and sheet and extruded and drawn products, primarily used in Aero/HS products, Automotive Extrusions, GE products and 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. At September 30, 2017, approximately 64% of our employees were covered by collective bargaining agreements and approximately 12% of our employees were covered by collective bargaining agreements with expiration dates occurring within one year from September 30, 2017. 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,
| 2017 |  | 2016 |  | 2017 |  | 2016
Net sales: |  |  |  |  |  |  |
Fabricated Products | $ | 332.8 |  |  | $ | 320.6 |  |  | $ | 1,044.4 |  |  | $ | 998.7 |
Segment operating income (loss): |  |  |  |  |  |  |
Fabricated Products | $ | 53.7 |  |  | $ | 42.1 |  |  | $ | 149.9 |  |  | $ | 172.1 |
All Other | (13.9 | ) |  | (12.3 | ) |  | (39.2 | ) |  | (39.6 | )
Total operating income | $ | 39.8 |  |  | $ | 29.8 |  |  | $ | 110.7 |  |  | $ | 132.5 |
Interest expense | (5.3 | ) |  | (5.5 | ) |  | (16.4 | ) |  | (14.7 | )
Other income (expense), net | 1.5 |  |  | — |  |  | 3.1 |  |  | (10.4 | )
Income before income taxes | $ | 36.0 |  |  | $ | 24.3 |  |  | $ | 97.4 |  |  | $ | 107.4 |
Depreciation and amortization: |  |  |  |  |  |  |
Fabricated Products | $ | 10.1 |  |  | $ | 8.8 |  |  | $ | 28.9 |  |  | $ | 26.2 |
All Other | 0.1 |  |  | 0.2 |  |  | 0.4 |  |  | 0.5 |
Total depreciation and amortization | $ | 10.2 |  |  | $ | 9.0 |  |  | $ | 29.3 |  |  | $ | 26.7 |
Capital expenditures: |  |  |  |  |  |  |
Fabricated Products | $ | 16.3 |  |  | $ | 15.0 |  |  | $ | 55.7 |  |  | $ | 57.1 |
All Other | 0.1 |  |  | 0.1 |  |  | 0.4 |  |  | 0.3 |
Total capital expenditures | $ | 16.4 |  |  | $ | 15.1 |  |  | $ | 56.1 |  |  | $ | 57.4 |
| September 30, 2017 |  | December 31, 2016
Assets: |  |  |
Fabricated Products | $ | 1,007.9 |  |  | $ | 969.4 |
All Other 1 | 414.8 |  |  | 474.1 |
Total assets | $ | 1,422.7 |  |  | $ | 1,443.5 |
_____________________
1 | Assets in All Other represent primarily all of our cash and cash equivalents, short-term investments, financial derivative assets (see Note 9) and net deferred income tax assets.
Net sales for the Fabricated Products segment by end market applications were as follows (in millions of dollars):
| Quarter Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Net sales: |  |  |  |  |  |  |
Aero/HS products | $ | 150.2 |  |  | $ | 156.1 |  |  | $ | 483.2 |  |  | $ | 500.7 |
Automotive Extrusions | 52.7 |  |  | 46.5 |  |  | 161.6 |  |  | 143.6 |
GE products | 115.9 |  |  | 105.6 |  |  | 361.1 |  |  | 318.3 |
Other products | 14.0 |  |  | 12.4 |  |  | 38.5 |  |  | 36.1 |
Total net sales | $ | 332.8 |  |  | $ | 320.6 |  |  | $ | 1,044.4 |  |  | $ | 998.7 |
All income taxes are paid by the Fabricated Products reporting segment. Geographic information for income taxes paid was as follows (in millions of dollars):
| Quarter Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Income taxes paid: |  |  |  |  |  |  |
Domestic | $ | 0.3 |  |  | $ | 0.1 |  |  | $ | 0.7 |  |  | $ | 0.4 |
Foreign | — |  |  | — |  |  | 0.1 |  |  | 0.5 |
Total income taxes paid | $ | 0.3 |  |  | $ | 0.1 |  |  | $ | 0.8 |  |  | $ | 0.9 |
Concentrations. For the quarter ended September 30, 2017, one customer represented 27% and another represented 11% of Fabricated Products Net sales. For the quarter ended September 30, 2016, one customer represented 25% and another represented 11% of Fabricated Products Net Sales. For the nine months ended September 30, 2017, one customer represented 28% and another represented 10% of Fabricated Products Net sales. For the nine months ended September 30, 2016, one customer represented 26% and another represented 10% of Fabricated Products Net Sales. At September 30, 2017, one customer represented 17% and a second customer represented 16% of Trade receivables, net. One individual customer accounted for 18% and two individual customers each accounted for 12% of Trade receivables, net at December 31, 2016. Information for delivery of our primary aluminum supply from our major suppliers was as follows:
| Quarter Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Percentage of total primary aluminum supply (lbs): |  |  |  |  |  |  |
Supply from our top five major suppliers | 86 | % |  | 84 | % |  | 85 | % |  | 84 | %
Supply from our largest supplier | 35 | % |  | 28 | % |  | 36 | % |  | 32 | %
Supply from our second and third largest suppliers | 35 | % |  | 33 | % |  | 33 | % |  | 31 | %

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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