SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2019

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, 2019, 2018, and 2017 (amounts in thousands):



	2019			2018			2017
Revenues from external customers
Agricultural	$	652,558		$	694,268		$	690,238
Earthmoving/construction	648,753			741,733			608,894
Consumer	147,355			166,407			169,790
	$	1,448,666		$	1,602,408		$	1,468,922
Gross profit
Agricultural	$	55,971		$	94,217		$	85,482
Earthmoving/construction	57,678			80,056			49,556
Consumer	15,355			23,993			25,273
	$	129,004		$	198,266		$	160,311
Income (loss) from operations
Agricultural	$	10,991		$	62,065		$	50,188
Earthmoving/construction	(1,892		)	31,141			2,028
Consumer	1,849			11,994			11,463
Corporate & Unallocated	(39,380		)	(62,956		)	(74,830		)
Loss from operations	(28,432		)	42,244			(11,151		)

Interest expense	(33,137		)	(30,456		)	(30,229		)
Loss on senior note repurchase	—			—			(18,646		)
Foreign exchange gain (loss)	3,999			(11,179		)	(1,958		)
Other income, net	9,526			19,198			9,108
Income (loss) before income taxes	$	(48,044	)	$	19,807		$	(52,876	)

Capital expenditures
Agricultural	$	16,500		$	15,770		$	15,392
Earthmoving/construction	16,229			19,889			15,282
Consumer	3,685			3,334			2,453
Corporate & Unallocated	—			7			(501		)
	$	36,414		$	39,000		$	32,626

Depreciation & amortization
Agricultural	$	24,469		$	26,299		$	27,623
Earthmoving/construction	24,251			23,823			20,307
Consumer	5,508			5,129			5,559
Corporate & Unallocated	148			2,367			4,955
	$	54,376		$	57,618		$	58,444

Total assets
Agricultural	$	423,955		$	464,828		$	444,783
Earthmoving/construction	496,988			543,927			537,855
Consumer	123,320			129,994			157,133
Corporate & Unallocated (a)	70,044			112,507			150,341
	$	1,114,307		$	1,251,256		$	1,290,112

(a) Unallocated assets included cash of approximately $9 million, $32 million, and $72 million at year-end 2019, 2018, and 2017, 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, 2019, 2018, and 2017 was as follows (amounts in thousands):



	2019		2018		2017
Net Sales
United States	$	672,556	$	711,887	$	642,743
Europe / CIS	400,059		469,322		411,570
Latin America	254,375		271,374		282,692
Other international	121,676		149,825		131,917
	$	1,448,666	$	1,602,408	$	1,468,922
Long-Lived Assets
United States	$	128,225	$	137,410	$	151,841
Europe / CIS	162,817		165,827		176,923
Latin America	50,358		52,393		62,543
Other international	33,398		29,242		29,941
	$	374,798	$	384,872	$	421,248