SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2018

SEGMENT AND GEOGRAPHICAL INFORMATION

The Company has aggregated its operating units into reportable segments based on its three customer markets: agricultural, earthmoving/construction, and consumer. These segments are based on the information used by the chief executive officer to make certain operating decisions, allocate portions of capital expenditures and assess segment performance. The accounting policies of the segments are the same as those described in Note 1, “Description of Business and Significant Accounting Policies.” Segment external revenues, expenses, and income from operations are determined on the basis of the results of operations of operating units of manufacturing facilities. Segment assets are generally determined on the basis of the tangible assets located at such operating units’ manufacturing facilities and the intangible assets associated with the acquisitions of such operating units. However, certain operating units’ goodwill and property, plant, and equipment balances are carried at the corporate level.

Titan is organized primarily on the basis of products being included in three marketing segments, with each reportable segment including wheels, tires, wheel/tire assemblies, and undercarriage systems and components.

The table below presents information about certain operating results of segments as reviewed by the chief operating decision maker of the Company as of and for the years ended December 31, 2018, 2017, and 2016 (amounts in thousands):



	2018			2017			2016
Revenues from external customers
Agricultural	$	694,268		$	690,238		$	583,324
Earthmoving/construction	741,733			608,894			524,289
Consumer	166,407			169,790			157,884
	$	1,602,408		$	1,468,922		$	1,265,497
Gross profit
Agricultural	$	94,217		$	85,482		$	76,330
Earthmoving/construction	80,056			49,556			47,355
Consumer	23,993			25,273			17,730
	$	198,266		$	160,311		$	141,415
Income (loss) from operations
Agricultural	$	62,065		$	50,188		$	41,999
Earthmoving/construction	31,141			2,028			4,701
Consumer	11,994			11,463			2,998
Corporate & Unallocated	(62,956		)	(74,830		)	(72,098		)
Loss from operations	42,244			(11,151		)	(22,400		)

Interest expense	(30,456		)	(30,229		)	(32,539		)
Loss on senior note repurchase	—			(18,646		)	—
Foreign exchange gain (loss)	(11,179		)	(1,958		)	8,550
Other income, net	19,198			9,108			9,915
Income (loss) before income taxes	$	19,807		$	(52,876	)	$	(36,474	)

Capital expenditures
Agricultural	$	15,770		$	15,392		$	16,260
Earthmoving/construction	19,889			15,282			22,028
Consumer	3,334			2,453			2,483
Corporate & Unallocated	7			(501		)	1,177
	$	39,000		$	32,626		$	41,948

Depreciation & amortization
Agricultural	$	26,299		$	27,623		$	27,888
Earthmoving/construction	23,823			20,307			20,566
Consumer	5,129			5,559			6,145
Corporate & Unallocated	2,367			4,955			5,169
	$	57,618		$	58,444		$	59,768

Total assets
Agricultural	$	464,828		$	444,783		$	439,371
Earthmoving/construction	543,927			537,855			443,879
Consumer	129,994			157,133			140,293
Corporate & Unallocated (a)	112,507			150,341			242,353
	$	1,251,256		$	1,290,112		$	1,265,896

(a) Unallocated assets included cash of approximately $32 million, $72 million, and $96 million at year-end 2018, 2017, and 2016, respectively.

The table below presents information by geographic area. Revenues from external customers were determined based on the location of the selling subsidiary. Geographic information as of and for the years ended December 31, 2018, 2017, and 2016 was as follows (amounts in thousands):



	2018		2017		2016
Net Sales
United States	$	711,887	$	642,743	$	558,278
Europe / CIS	469,322		411,570		354,117
Latin America	271,374		282,692		248,019
Other international	149,825		131,917		105,083
	$	1,602,408	$	1,468,922	$	1,265,497
Long-Lived Assets
United States	$	137,410	$	151,841	$	171,587
Europe / CIS	165,827		176,923		156,505
Latin America	52,393		62,543		68,187
Other international	29,242		29,941		40,922
	$	384,872	$	421,248	$	437,201