Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.10.0.1
Segment Information (Tables)
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Reconciliation of Adjusted EBITDA to Income Before Provision for Income Taxes and Equity Income
Below is a reconciliation of adjusted EBITDA of segments to income before provision for income taxes:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
(in millions)
2018
 
2017
 
2018
 
2017
Net Sales, External Customers
 
 
 
 
 
 
 
Olin Brass
$
175.8

 
$
158.8

 
$
354.5

 
$
349.6

Chase Brass
159.5

 
141.1

 
331.1

 
295.1

A.J. Oster
124.1

 
74.9

 
245.6

 
149.6

Total net sales, external customers
$
459.4

 
$
374.8

 
$
931.2

 
$
794.3

Intersegment Net Sales
 
 
 
 
 
 
 
Olin Brass
$
22.4

 
$
20.0

 
$
43.8

 
$
44.0

Chase Brass

 

 

 
0.1

A.J. Oster
0.1

 
0.1

 
0.1

 
0.1

Total intersegment net sales
$
22.5

 
$
20.1

 
$
43.9

 
$
44.2

Adjusted EBITDA
 
 
 
 
 
 
 
Olin Brass
$
20.1

 
$
14.4

 
$
34.1

 
$
26.9

Chase Brass
18.4

 
17.9

 
37.0

 
38.3

A.J. Oster
6.1

 
4.3

 
11.8

 
6.8

Total adjusted EBITDA of operating segments
44.6

 
36.6

 
82.9

 
72.0

Corporate (a)
(5.0
)
 
0.2

 
(9.3
)
 
(1.0
)
Depreciation expense
(5.2
)
 
(4.5
)
 
(10.3
)
 
(9.0
)
Amortization expense
(0.1
)
 

 
(0.2
)
 

Interest expense, net
(4.3
)
 
(4.7
)
 
(8.6
)
 
(9.4
)
Net income attributable to noncontrolling interest
0.1

 
0.1

 
0.2

 
0.3

Unrealized (loss) gain on derivative contracts (b)
1.8

 
(0.6
)
 
(0.6
)
 
(1.4
)
Refinancing costs (c)
(1.6
)
 

 
(1.6
)
 

Lower of cost or market adjustment to inventory (d)
0.2

 
(0.7
)
 
1.1

 
0.1

Share-based compensation expense (e)
(1.4
)
 
(1.8
)
 
(3.1
)
 
(4.3
)
Step-up costs from acquisition accounting

 

 
(0.2
)
 

Income before provision for income taxes
$
29.1

 
$
24.6

 
$
50.3

 
$
47.3

(a)
The three and six months ended June 30, 2017 include $4.4 million and $7.4 million, respectively, of insurance proceeds recoveries relating to a production outage in 2016.
(b)
Represents unrealized gains / losses on derivative contracts.
(c)
Represents the loss on extinguishment of debt and other expenses associated with our refinancing activities.
(d)
Represents the impact of lower of cost or market adjustments to domestic metal inventory.
(e)
Represents compensation expense resulting from stock compensation awards to certain employees and our Board of Directors.