v3.7.0.1
Segment and Geographical Data
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
Segment and Geographical Data

(22) Segment and Geographical Data

The Company is organized and operated as three operating segments: the HHI segment, the Metaldyne segment and the Grede segment.

The HHI segment manufactures highly-engineered metal-based products for the North American light vehicle market. These components are used in Powertrain and Safety-Critical applications, including transmission components, drive line components, wheel hubs, axle ring and pinion gears, sprockets, balance shaft gears, timing drive systems, VVT components, transfer case components and wheel bearings.

The Metaldyne segment manufactures highly-engineered metal-based Powertrain products for the global light vehicle markets. These components include connecting rods, VVT components, balance shaft systems, and crankshaft dampers, differential gears, pinions and assemblies, valve bodies, hollow and solid shafts, clutch modules and assembled end covers.

The Grede segment manufactures cast, machined and assembled components for the light, commercial and industrial (agriculture, construction, mining, rail, wind energy and oil field) vehicle and equipment end-markets. These components are used in Powertrain and Safety-Critical applications, including turbocharger housings, differential carriers and cases, scrolls and covers, brake calipers and housings, knuckles, control arms and axle components.

The Company evaluates the performance of its operating segments based on external sales and Adjusted EBITDA. Adjusted EBITDA is calculated as net income (loss) before tax adjusted to exclude depreciation and amortization expense, interest expense, net and other income and expenses that are either non-recurring or non-cash by nature, as well as management fees paid to American Securities (“sponsor management fees”). Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Segment information for 2016, 2015 and 2014 was as follows:

 

 

 

2016

 

 

December 31, 2016

 

 

 

External

Sales

 

 

Intersegment

Sales

 

 

Adjusted

EBITDA

 

 

Capital

Expenditures

 

 

Depreciation/

Amortization

 

 

Total

Assets

 

 

 

(In millions)

 

HHI

 

$

834.9

 

 

 

8.1

 

 

 

161.2

 

 

 

55.9

 

 

 

77.0

 

 

$

850.8

 

Metaldyne

 

 

1,168.5

 

 

 

1.3

 

 

 

220.5

 

 

 

100.2

 

 

 

74.6

 

 

 

1,286.2

 

Grede

 

 

787.3

 

 

 

0.4

 

 

 

111.3

 

 

 

36.8

 

 

 

69.2

 

 

 

945.5

 

Elimination and other

 

 

—

 

 

 

(9.8

)

 

 

—

 

 

 

1.6

 

 

 

0.5

 

 

 

108.0

 

Total

 

$

2,790.7

 

 

 

—

 

 

 

493.0

 

 

 

194.5

 

 

 

221.3

 

 

$

3,190.5

 

 

 

 

2015

 

 

December 31, 2015

 

 

 

External

Sales

 

 

Intersegment

Sales

 

 

Adjusted

EBITDA

 

 

Capital

Expenditures

 

 

Depreciation/

Amortization

 

 

Total

Assets

 

 

 

(In millions)

 

HHI

 

$

984.8

 

 

 

8.9

 

 

 

199.8

 

 

 

69.9

 

 

 

79.1

 

 

$

905.5

 

Metaldyne

 

 

1,155.7

 

 

 

1.2

 

 

 

205.7

 

 

 

85.4

 

 

 

78.2

 

 

 

1,243.8

 

Grede

 

 

906.8

 

 

 

0.3

 

 

 

132.7

 

 

 

69.0

 

 

 

72.4

 

 

 

954.6

 

Elimination and other

 

 

—

 

 

 

(10.4

)

 

 

—

 

 

 

2.0

 

 

 

0.1

 

 

 

53.7

 

Total

 

$

3,047.3

 

 

 

—

 

 

 

538.2

 

 

 

226.3

 

 

 

229.8

 

 

$

3,157.6

 

 

 

 

2014

 

 

December 31, 2014

 

 

 

External

Sales

 

 

Intersegment

Sales

 

 

Adjusted

EBITDA

 

 

Capital

Expenditures

 

 

Depreciation/

Amortization

 

 

Total

Assets

 

 

 

(In millions)

 

HHI

 

$

968.5

 

 

 

9.0

 

 

 

193.5

 

 

 

61.6

 

 

 

76.9

 

 

$

944.1

 

Metaldyne

 

 

1,176.4

 

 

 

1.2

 

 

 

202.3

 

 

 

70.5

 

 

 

92.4

 

 

 

1,216.4

 

Grede

 

 

572.1

 

 

 

—

 

 

 

82.8

 

 

 

24.3

 

 

 

41.5

 

 

 

982.0

 

Elimination and other

 

 

—

 

 

 

(10.2

)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

60.9

 

Total

 

$

2,717.0

 

 

 

—

 

 

 

478.6

 

 

 

156.4

 

 

 

210.8

 

 

$

3,203.4

 

 

Elimination and other above reflects the elimination of intercompany sales, payables and receivables and assets held by the parent company. Assets held by the parent company primarily consist of cash and cash equivalents, and deferred tax assets.

Reconciliation of Adjusted EBITDA to income before tax follows:

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

(In millions)

 

Adjusted EBITDA

 

$

493.0

 

 

 

538.2

 

 

 

478.6

 

Interest expense, net

 

 

(103.5

)

 

 

(107.5

)

 

 

(99.9

)

Depreciation and amortization

 

 

(221.3

)

 

 

(229.8

)

 

 

(210.8

)

Loss on debt extinguishment

 

 

—

 

 

 

(0.4

)

 

 

(60.7

)

Gain (loss) on foreign currency

 

 

14.6

 

 

 

20.2

 

 

 

15.7

 

Loss on fixed assets

 

 

(5.3

)

 

 

(2.8

)

 

 

(2.1

)

Debt transaction expenses

 

 

—

 

 

 

(1.7

)

 

 

(3.0

)

Stock-based compensation

 

 

(17.5

)

 

 

(27.7

)

 

 

(17.3

)

Sponsor management fees

 

 

—

 

 

 

—

 

 

 

(5.1

)

Non-recurring acquisition and purchase accounting

   items

 

 

(8.2

)

 

 

(3.0

)

 

 

(23.0

)

Non-recurring operational items

 

 

(16.5

)

 

 

(11.6

)

 

 

(18.2

)

Income before tax

 

$

135.3

 

 

 

173.9

 

 

 

54.2

 

 

The following table presents total assets, long-lived assets and net assets by geographic area, attributed to each subsidiary’s continent of domicile as of December 31, 2016 and 2015.

 

 

 

2016

 

 

2015

 

 

 

Total

assets

 

 

Noncurrent

assets

 

 

Net assets

 

 

Total

assets

 

 

Noncurrent

assets

 

 

Net assets

 

 

 

(In millions)

 

United States of America

 

 

2,571.7

 

 

 

2,076.8

 

 

 

258.0

 

 

 

2,592.4

 

 

 

2,111.1

 

 

 

264.4

 

Europe

 

 

313.5

 

 

 

171.6

 

 

 

213.1

 

 

 

304.9

 

 

 

173.4

 

 

 

211.2

 

Other foreign

 

 

305.3

 

 

 

150.4

 

 

 

208.1

 

 

 

260.3

 

 

 

137.1

 

 

 

163.4

 

Total foreign

 

 

618.8

 

 

 

322.0

 

 

 

421.2

 

 

 

565.2

 

 

 

310.5

 

 

 

374.6

 

Total

 

 

3,190.5

 

 

 

2,398.8

 

 

 

679.2

 

 

 

3,157.6

 

 

 

2,421.6

 

 

 

639.0

 

 

The following table presents the net sales by geographic area, attributed to each subsidiary’s continent of domicile:

 

 

 

2016

 

 

2015

 

 

2014

 

 

 

(In millions)

 

United States of America

 

$

2,082.2

 

 

 

2,349.7

 

 

 

2,035.9

 

Europe

 

 

378.1

 

 

 

365.3

 

 

 

403.5

 

Other foreign

 

 

330.4

 

 

 

332.3

 

 

 

277.6

 

Total foreign

 

 

708.5

 

 

 

697.6

 

 

 

681.1

 

Total

 

$

2,790.7

 

 

 

3,047.3

 

 

 

2,717.0

 

 

During 2016, direct sales to two customers accounted for 25% and 21% of net sales, respectively.