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Segment reporting | 12 Months Ended
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Dec. 31, 2018
Disclosure of operating segments [abstract] |
Segment reporting | 6. Segment reporting Operating segments are based upon the Company’s management reporting structure. The Company’s operating segments are primarily at a country level as this is how the Chief Operating Decision Maker (CODM) assesses performance and makes decisions about resource allocation. This is due to the integrated operations within each country and the ability to reallocate production based on the individual capacity of each plant. Additionally, economic factors that may impact our results of operations, such as currency fluctuations and energy costs, are also assessed at a country level. The Company’s North America reportable segment is the result of the aggregation of the operating segments of the United States and Canada. These operating segments have been aggregated as they have similar long-term economic characteristics and there is similarity of competitive and operating risks and the political environment in the United States and Canada. The Company’s Europe reportable segment is the result of the aggregation of the operating segments of Spain, France and Norway. Similar to our United States and Canada operating segments, our Spain, France and Norway operating segments are grouped together based on the relative similarity of the EBITDA margins, competitive risks, currency risks (i.e. risks relating to the Euro), operating risks and, given they are each part of the European Union and the European Economic Community, the political and economic environment. During 2017, upon further evaluation of the management reporting structure, it was concluded that our reportable segments would be amended to no longer reflect Venezuela as a separate reportable segment. The decision was taken as a result of on-going economic, political and social instability in the region which has resulted in uncertainty surrounding the cash flow generation capacity of our operations. During the year-ended December 31, 2016, due to the uncertainty in Venezuela substantially all assets were impaired. The segment previously recognized ‘Electrometallurgy – Venezuela’ now forms part of our ‘Other segments’. The comparative periods have been restated to conform to the 2018 and 2017 reportable segment presentation. The consolidated income statements at December 31, 2018, 2017 and 2016, by reportable segment, are as follows:
|  | 2018
|  | Electrometallurgy - |  | Electrometallurgy - |  | Electrometallurgy - |  |  |  | Adjustments/ |  |
|  | North America |  | Europe |  | South Africa |  | Other segments |  | Eliminations (**) |  | Total
|  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000
Sales |  | 710,716 |  | 1,447,973 |  | 208,543 |  | 94,111 |  | (187,305) |  | 2,274,038
Cost of sales |  | (394,044) |  | (1,059,474) |  | (137,177) |  | (43,871) |  | 187,212 |  | (1,447,354)
Other operating income |  | 4,943 |  | 39,817 |  | 3,420 |  | 16,859 |  | (19,002) |  | 46,037
Staff costs |  | (115,555) |  | (177,047) |  | (23,735) |  | (24,727) |  | — |  | (341,064)
Other operating expense |  | (77,670) |  | (146,143) |  | (26,353) |  | (52,859) |  | 19,095 |  | (283,930)
Depreciation and amortization charges, operating allowances and write-downs |  | (69,009) |  | (34,974) |  | (5,526) |  | (9,628) |  | — |  | (119,137)
Impairment losses |  | — |  | — |  | — |  | (58,919) |  | — |  | (58,919)
Net loss due to changes in the value of assets |  | — |  | (7) |  | (7,616) |  | — |  | — |  | (7,623)
(Loss) gain on disposal of non-current assets |  | (208) |  | (8,369) |  | (261) |  | 23,402 |  | — |  | 14,564
Bargain purchase gain |  | — |  | 40,142 |  | — |  | — |  | — |  | 40,142
Operating profit (loss) |  | 59,173 |  | 101,918 |  | 11,295 |  | (55,632) |  | — |  | 116,754
Finance income |  | 804 |  | 11,035 |  | 199 |  | 32,556 |  | (39,220) |  | 5,374
Finance costs |  | (4,109) |  | (40,831) |  | (5,298) |  | (51,004) |  | 39,220 |  | (62,022)
Financial derivative gain |  | — |  | — |  | — |  | 2,838 |  | — |  | 2,838
Exchange differences |  | (1,194) |  | (10,561) |  | 2,284 |  | (4,665) |  | — |  | (14,136)
Profit (loss) before tax |  | 54,674 |  | 61,561 |  | 8,480 |  | (75,907) |  | — |  | 48,808
Income tax (expense) benefit |  | 4,949 |  | (15,048) |  | (3,582) |  | (10,554) |  | — |  | (24,235)
Profit (loss) for the year |  | 59,623 |  | 46,513 |  | 4,898 |  | (86,461) |  | — |  | 24,573
Loss (profit) attributable to non-controlling interests |  | 4,785 |  | (332) |  | 358 |  | 14,277 |  | — |  | 19,088
Profit (loss) attributable to the Parent |  | 64,408 |  | 46,181 |  | 5,256 |  | (72,184) |  | — |  | 43,661
|  | 2017
|  | Electrometallurgy - |  | Electrometallurgy - |  | Electrometallurgy - |  |  |  | Adjustments/ |  |
|  | North America |  | Europe |  | South Africa |  | Other segments |  | Eliminations (**) |  | Total
|  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000
Sales |  | 541,143 |  | 1,083,200 |  | 122,504 |  | 60,199 |  | (65,353) |  | 1,741,693
Cost of sales |  | (303,096) |  | (690,589) |  | (81,744) |  | (33,616) |  | 65,650 |  | (1,043,395)
Other operating income |  | 2,701 |  | 12,681 |  | 2,868 |  | 15,619 |  | (15,670) |  | 18,199
Staff costs |  | (90,802) |  | (147,595) |  | (23,495) |  | (39,851) |  | (220) |  | (301,963)
Other operating expense |  | (68,537) |  | (107,130) |  | (24,462) |  | (55,955) |  | 16,158 |  | (239,926)
Depreciation and amortization charges, operating allowances and write-downs |  | (66,789) |  | (27,404) |  | (5,788) |  | (4,557) |  | 9 |  | (104,529)
Impairment losses |  | (30,618) |  | — |  | — |  | (323) |  | (16) |  | (30,957)
Net gain due to changes in the value of assets |  | — |  | — |  | 7,222 |  | — |  | 282 |  | 7,504
(Loss) gain on disposal of non-current assets |  | (3,718) |  | 301 |  | (138) |  | (818) |  | 57 |  | (4,316)
Other (loss) gain |  | — |  | (13,604) |  | — |  | (2,625) |  | 13,616 |  | (2,613)
Operating (loss) profit |  | (19,716) |  | 109,860 |  | (3,033) |  | (61,927) |  | 14,513 |  | 39,697
Finance income |  | 448 |  | 6,733 |  | 404 |  | 191,261 |  | (195,138) |  | 3,708
Finance costs |  | (4,567) |  | (40,106) |  | (7,361) |  | (48,486) |  | 35,108 |  | (65,412)
Financial derivative loss |  | — |  | — |  | — |  | (6,850) |  | — |  | (6,850)
Exchange differences |  | (191) |  | 5,938 |  | (1,197) |  | 3,730 |  | (66) |  | 8,214
(Loss) profit before tax |  | (24,026) |  | 82,425 |  | (11,187) |  | 77,728 |  | (145,583) |  | (20,643)
Income tax (expense) benefit |  | 29,386 |  | (26,031) |  | 2,068 |  | 9,692 |  | (294) |  | 14,821
Profit (loss) for the year |  | 5,360 |  | 56,394 |  | (9,119) |  | 87,420 |  | (145,877) |  | (5,822)
Loss (profit) attributable to non-controlling interests |  | 4,734 |  | (370) |  | (147) |  | 951 |  | (24) |  | 5,144
Profit (loss) attributable to the Parent |  | 10,094 |  | 56,024 |  | (9,266) |  | 88,371 |  | (145,901) |  | (678)
|  | 2016 (*)
|  | Electrometallurgy - |  | Electrometallurgy - |  | Electrometallurgy - |  |  |  | Adjustments/ |  |
|  | North America |  | Europe |  | South Africa |  | Other segments |  | Eliminations (**) |  | Total
|  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000
Sales |  | 521,192 |  | 949,547 |  | 142,160 |  | 90,337 |  | (127,199) |  | 1,576,037
Cost of sales |  | (325,254) |  | (672,026) |  | (99,124) |  | (79,912) |  | 132,904 |  | (1,043,412)
Other operating income |  | 362 |  | 25,908 |  | 3,422 |  | 4,713 |  | (8,190) |  | 26,215
Staff costs |  | (82,032) |  | (132,440) |  | (23,589) |  | (58,577) |  | 239 |  | (296,399)
Other operating expense |  | (64,606) |  | (118,269) |  | (28,834) |  | (37,964) |  | 5,727 |  | (243,946)
Depreciation and amortization charges, operating allowances and write-downs |  | (73,530) |  | (31,730) |  | (4,732) |  | (12,818) |  | (2,867) |  | (125,677)
Impairment losses |  | (193,000) |  | (1,077) |  | (8,147) |  | (59,248) |  | (6,617) |  | (268,089)
Net gain (loss) due to changes in the value of assets |  | — |  | — |  | 1,896 |  | — |  | (5) |  | 1,891
Gain (loss) on disposal of non-current assets |  | — |  | — |  | 21 |  | 446 |  | (127) |  | 340
Other (loss) gain |  | — |  | (32,655) |  | — |  | (2,514) |  | 35,129 |  | (40)
Operating (loss) profit |  | (216,868) |  | (12,742) |  | (16,927) |  | (155,537) |  | 28,994 |  | (373,080)
Finance income |  | 1 |  | 11,551 |  | 744 |  | 6,639 |  | (17,399) |  | 1,536
Finance costs |  | (3,249) |  | (16,540) |  | (6,038) |  | (13,629) |  | 9,205 |  | (30,251)
Exchange differences |  | (438) |  | 2,436 |  | (2,164) |  | (3,290) |  | (57) |  | (3,513)
(Loss) profit before tax |  | (220,554) |  | (15,295) |  | (24,385) |  | (165,817) |  | 20,743 |  | (405,308)
Income tax benefit (expense) |  | 9,982 |  | (10,505) |  | 4,433 |  | 40,160 |  | 2,625 |  | 46,695
(Loss) profit for the year |  | (210,572) |  | (25,800) |  | (19,952) |  | (125,657) |  | 23,368 |  | (358,613)
Loss (profit) attributable to non-controlling interests |  | 6,044 |  | (93) |  | 856 |  | 11,827 |  | 1,552 |  | 20,186
(Loss) profit attributable to the Parent |  | (204,528) |  | (25,893) |  | (19,096) |  | (113,830) |  | 24,920 |  | (338,427)
(*)The consolidated Income Statement for the period ended December 31, 2016 has been re-presented to show the results of the Spanish energy business within income from continuing operations as part of the Other segments, as described in Note 1 to the consolidated financial statements. In addition, the Venezuela segment is reflected as part of the Other segments. (**)The amounts correspond to transactions between segments that are eliminated in the consolidation process. The consolidated statements of financial position at December 31, 2018 and 2017, by reportable segment are as follows:
|  | 2018
|  |  |  |  |  |  |  |  |  | Consolidation |  |
|  | Electrometallurgy - |  | Electrometallurgy - |  | Electrometallurgy - |  |  |  | Adjustments/ |  |
|  | North America |  | Europe |  | South Africa |  | Other segments |  | Eliminations (*) |  | Total
|  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000
Goodwill |  | 202,848 |  | — |  | — |  | — |  | — |  | 202,848
Other intangible assets |  | 22,798 |  | 26,476 |  | 1,292 |  | 1,256 |  | — |  | 51,822
Property, plant and equipment |  | 467,616 |  | 219,520 |  | 56,679 |  | 145,047 |  | — |  | 888,862
Inventories |  | 113,673 |  | 288,669 |  | 35,944 |  | 18,684 |  | — |  | 456,970
Trade and other receivables (**) |  | 267,974 |  | 274,291 |  | 50,665 |  | 834,515 |  | (1,254,935) |  | 172,510
Cash and cash equivalents |  | 76,791 |  | 110,523 |  | 19,483 |  | 9,850 |  | — |  | 216,647
Other |  | 15,341 |  | 85,905 |  | 8,692 |  | 24,220 |  | — |  | 134,158
Total assets |  | 1,167,041 |  | 1,005,384 |  | 172,755 |  | 1,033,572 |  | (1,254,935) |  | 2,123,817
Equity |  | 646,851 |  | 206,781 |  | 58,294 |  | (27,554) |  | — |  | 884,372
Provisions |  | 29,644 |  | 71,163 |  | 7,889 |  | 7,661 |  | — |  | 116,357
Bank borrowings |  | — |  | 6,914 |  | — |  | 134,098 |  | — |  | 141,012
Obligations under finance leases |  | 1,466 |  | — |  | — |  | 65,005 |  | — |  | 66,471
Debt instruments |  | — |  | — |  | — |  | 352,594 |  | — |  | 352,594
Other financial liabilities |  | — |  | 3,841 |  | — |  | 81,471 |  | — |  | 85,312
Trade and other payables (***) |  | 414,022 |  | 662,667 |  | 93,970 |  | 379,468 |  | (1,282,176) |  | 267,951
Other |  | 75,058 |  | 54,018 |  | 12,602 |  | 40,829 |  | 27,241 |  | 209,748
Total equity and liabilities |  | 1,167,041 |  | 1,005,384 |  | 172,755 |  | 1,033,572 |  | (1,254,935) |  | 2,123,817
|  | 2017
|  |  |  |  |  |  |  |  |  | Consolidation |  |
|  | Electrometallurgy - |  | Electrometallurgy - |  | Electrometallurgy - |  |  |  | Adjustments/ |  |
|  | North America |  | Europe |  | South Africa |  | Other segments |  | Eliminations (*) |  | Total
|  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000 |  | US$'000
Goodwill |  | 205,287 |  | — |  | — |  | — |  | — |  | 205,287
Other intangible assets |  | 26,724 |  | 20,381 |  | 1,505 |  | 10,048 |  | — |  | 58,658
Property, plant and equipment |  | 512,003 |  | 167,314 |  | 64,331 |  | 174,326 |  | — |  | 917,974
Inventories |  | 100,856 |  | 204,240 |  | 42,478 |  | 13,657 |  | — |  | 361,231
Trade and other receivables (**) |  | 165,006 |  | 260,612 |  | 35,330 |  | 833,243 |  | (1,175,756) |  | 118,435
Cash and cash equivalents |  | 10,886 |  | 153,967 |  | 6,912 |  | 12,707 |  | — |  | 184,472
Other |  | 36,554 |  | 92,322 |  | 41,008 |  | 29,528 |  | (45,212) |  | 154,200
Total assets |  | 1,057,316 |  | 898,836 |  | 191,564 |  | 1,073,509 |  | (1,220,968) |  | 2,000,257
Equity |  | 521,819 |  | 198,059 |  | 62,933 |  | 154,947 |  | — |  | 937,758
Provisions |  | 28,602 |  | 56,654 |  | 11,080 |  | 19,156 |  | — |  | 115,492
Bank borrowings |  | — |  | — |  | — |  | 1,003 |  | — |  | 1,003
Obligations under finance leases |  | 1,994 |  | — |  | — |  | 80,639 |  | — |  | 82,633
Debt instruments |  | — |  | — |  | — |  | 350,270 |  | — |  | 350,270
Other financial liabilities |  | — |  | 4,918 |  | — |  | 132,513 |  | — |  | 137,431
Trade and other payables (***) |  | 321,710 |  | 584,542 |  | 95,082 |  | 380,834 |  | (1,176,336) |  | 205,832
Other |  | 183,191 |  | 54,663 |  | 22,469 |  | (45,853) |  | (44,632) |  | 169,838
Total equity and liabilities |  | 1,057,316 |  | 898,836 |  | 191,564 |  | 1,073,509 |  | (1,220,968) |  | 2,000,257
(*) These amounts correspond to balances between segments that are eliminated at consolidation. (**) Trade and other receivables includes non-current and current receivables from group and related parties. (***) Trade and other payables includes non-current and current payables from group and related parties. Other disclosures Sales by product line Sales by product line are as follows:
|  | 2018 |  | 2017 |  | 2016
|  | US$'000 |  | US$'000 |  | US$'000
Silicon metal |  | 933,366 |  | 739,618 |  | 751,508
Manganese-based alloys |  | 527,757 |  | 363,644 |  | 223,451
Ferrosilicon |  | 359,374 |  | 266,862 |  | 242,788
Other silicon-based alloys |  | 215,697 |  | 188,183 |  | 173,901
Silica fume |  | 37,061 |  | 36,338 |  | 37,480
Energy |  | 44,185 |  | 16,661 |  | 20,380
Other |  | 156,598 |  | 130,387 |  | 126,529
Total |  | 2,274,038 |  | 1,741,693 |  | 1,576,037
Information about major customers Total sales of $758,894 thousand, $820,897 thousand, and $656,907 thousand were attributable to the Company’s top ten customers in 2018, 2017, and 2016 respectively. During 2018, there was no single customer representing greater than 10% of the Company’s sales. During 2017 and 2016, sales corresponding to Dow Corning Corporation represented 12.2% and 13.7% of the Company’s sales, respectively. Sales to Dow Corning Corporation are included partially in the Electrometallurgy - North America segment and partially in the Electrometallurgy - Europe segment.

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