Quarterly report pursuant to Section 13 or 15(d)

Segment Information (Tables)

v3.10.0.1
Segment Information (Tables)
9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Reconciliation of Adjusted EBITDA to Income Before Provision for Income Taxes
Below is a reconciliation of adjusted EBITDA of segments to income before provision for income taxes:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
(in millions)
2018
 
2017
 
2018
 
2017
Net Sales, External Customers
 
 
 
 
 
 
 
Olin Brass
$
163.5

 
$
137.7

 
$
518.0

 
$
487.3

Chase Brass
149.0

 
144.8

 
480.1

 
439.9

A.J. Oster
117.4

 
76.9

 
363.0

 
226.5

Total net sales, external customers
$
429.9

 
$
359.4

 
$
1,361.1

 
$
1,153.7

Intersegment Net Sales
 
 
 
 
 
 
 
Olin Brass
$
22.4

 
$
17.6

 
$
66.2

 
$
61.6

Chase Brass

 

 

 
0.1

A.J. Oster

 

 
0.1

 
0.1

Total intersegment net sales
$
22.4

 
$
17.6

 
$
66.3

 
$
61.8

Adjusted EBITDA
 
 
 
 
 
 
 
Olin Brass
$
11.4

 
$
11.8

 
$
45.5

 
$
38.7

Chase Brass
16.0

 
18.3

 
53.0

 
56.6

A.J. Oster
6.3

 
3.6

 
18.1

 
10.4

Total adjusted EBITDA of operating segments
33.7

 
33.7

 
116.6

 
105.7

Corporate (a)
(4.1
)
 
(3.6
)
 
(13.4
)
 
(4.6
)
Depreciation expense
(5.3
)
 
(4.5
)
 
(15.6
)
 
(13.5
)
Amortization expense
(0.1
)
 
(0.1
)
 
(0.3
)
 
(0.1
)
Interest expense, net
(4.1
)
 
(4.2
)
 
(12.7
)
 
(13.6
)
Net income attributable to noncontrolling interest
0.1

 
0.1

 
0.3

 
0.4

Unrealized (loss) gain on derivative contracts (b)
(0.7
)
 
0.3

 
(1.3
)
 
(1.1
)
Refinancing costs (c)

 
(0.9
)
 
(1.6
)
 
(0.9
)
Specified legal / professional expenses (d)

 
(0.5
)
 

 
(0.5
)
Lower of cost or market adjustment to inventory (e)
(1.2
)
 
0.7

 
(0.1
)
 
0.8

Share-based compensation expense (f)
(1.5
)
 
(2.0
)
 
(4.6
)
 
(6.3
)
Step-up costs from acquisition accounting

 

 
(0.2
)
 

Income before provision for income taxes
$
16.8

 
$
19.0

 
$
67.1

 
$
66.3

(a)
The nine months ended September 30, 2017 includes $7.4 million 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 selected professional fees for accounting, tax, legal and consulting services for merger and acquisition activity.
(e)
Represents the impact of lower of cost or market adjustments to domestic metal inventory.
(f)
Represents compensation expense resulting from stock compensation awards to certain employees and our Board of Directors.