Annual report pursuant to Section 13 and 15(d)

Segment Information (Tables)

v3.10.0.1
Segment Information (Tables)
12 Months Ended
Dec. 31, 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 operating segments to income before provision for income taxes and equity income:
 
Year Ended December 31,
(in millions)
2018
 
2017
 
2016
Net Sales, External Customers
 
 
 
 
 
Olin Brass
$
679.8

 
$
664.1

 
$
553.9

Chase Brass
612.1

 
591.0

 
501.7

A.J. Oster
473.5

 
323.5

 
282.7

Total net sales, external customers
$
1,765.4

 
$
1,578.6

 
$
1,338.3

Intersegment Net Sales
 
 
 
 
 
Olin Brass
$
87.5

 
$
79.0

 
$
75.5

Chase Brass

 
0.1

 
1.0

A.J. Oster
0.2

 
0.1

 

Total intersegment net sales
$
87.7

 
$
79.2

 
$
76.5

Adjusted EBITDA
 
 
 
 
 
Olin Brass
$
57.2

 
$
51.2

 
$
49.9

Chase Brass
66.3

 
73.2

 
68.0

A.J. Oster
23.1

 
14.8

 
18.4

Total adjusted EBITDA of operating segments
146.6

 
139.2

 
136.3

Corporate (a)
(18.1
)
 
(8.7
)
 
(17.7
)
Depreciation expense
(21.1
)
 
(18.5
)
 
(14.8
)
Amortization of intangible assets
(0.4
)
 
(0.1
)
 
(0.1
)
Interest expense, net
(16.8
)
 
(17.6
)
 
(26.2
)
Net income attributable to noncontrolling interest
0.4

 
0.6

 
0.6

Unrealized gain (loss) on derivative contracts (b)
(2.8
)
 
(0.8
)
 
3.1

LIFO liquidation (loss) gain (c)
(0.1
)
 
(1.0
)
 
(1.9
)
Refinancing costs (d)
(1.6
)
 
(0.9
)
 
(23.4
)
Specified legal / professional expenses (e)
(0.4
)
 
(1.3
)
 
(1.2
)
Lower of cost or market adjustment to inventory (f)
(2.9
)
 
3.6

 
1.7

Share-based compensation expense (g)
(6.7
)
 
(8.2
)
 
(6.9
)
Restructuring and other business transformation charges (h)

 
(0.4
)
 

Inventory step-up costs from acquisition accounting
(0.2
)
 
(0.3
)
 

Income before provision for income taxes
$
75.9

 
$
85.6

 
$
49.5

(a)
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)
Calculated based on the difference between the base year LIFO carrying value and the metal prices prevailing in the market at the time of inventory depletion.
(d)
Represents the loss on extinguishment of debt and other expenses associated with our refinancing activities.
(e)
Represents selected professional fees for accounting, tax, legal, and consulting services for merger and acquisition activity or incurred as a public company that exceed our expected long-term requirements.
(f)
Represents the impact of lower of cost or market adjustments to domestic metal inventory. This impact is included in the Corporate entity results.
(g)
Represents compensation expense resulting from stock compensation awards to certain employees and our Board of Directors.
(h)
Restructuring and other business transformation charges in 2017 represent severance charges at Olin Brass.

 
Year Ended December 31,
(in millions)
2018
 
2017
 
2016
Depreciation and amortization
 
 
 
 
 
Olin Brass
$
11.4

 
$
10.8

 
$
9.2

Chase Brass
6.2

 
5.7

 
4.9

A.J. Oster
3.8

 
2.0

 
0.5

Corporate
0.1

 
0.1

 
0.3

Total depreciation and amortization
$
21.5

 
$
18.6

 
$
14.9

 
 
 
 
 
 
LIFO liquidation (loss)/gain
 
 
 
 
 
Olin Brass
$
(0.2
)
 
$
(1.0
)
 
$
(1.6
)
Chase Brass

 

 
(0.3
)
A.J. Oster
0.1

 

 
0.1

Corporate

 

 
(0.1
)
Total LIFO liquidation (loss)/gain
$
(0.1
)
 
$
(1.0
)
 
$
(1.9
)
 
 
 
 
 
 
Interest expense, net
 
 
 
 
 
Olin Brass
$
0.1

 
$
0.3

 
$
0.3

A.J. Oster
0.1

 

 

Corporate
16.6

 
17.3

 
25.9

Total interest expense, net
$
16.8

 
$
17.6

 
$
26.2

 
 
 
 
 
 
Capital expenditures
 
 
 
 
 
Olin Brass
$
12.3

 
$
13.5

 
$
15.1

Chase Brass
9.2

 
6.7

 
10.0

A.J. Oster
3.6

 
4.3

 
9.3

Corporate
1.1

 
0.2

 

Total capital expenditures
$
26.2

 
$
24.7

 
$
34.4


 
As of December 31,
(in millions)
2018
 
2017
Total Assets
 
  
 
Olin Brass
$
242.0

  
$
263.2

Chase Brass
134.4

  
142.9

A.J. Oster
178.3

  
171.9

Corporate
136.3

  
74.2

Total assets
$
691.0

 
$
652.2

Summarized Geographic Information
Summarized geographic information is shown in the following table. Net sales are attributed to individual countries based on the location from which the products are shipped.
 
Year Ended December 31,
(in millions)
2018
 
2017
 
2016
Net sales:
 
 
 
 
 
United States
$
1,680.6

  
$
1,489.8

  
$
1,261.4

Asia Pacific
40.7

  
44.0

  
37.1

Mexico
44.1

  
44.8

  
39.8

Total net sales
$
1,765.4

  
$
1,578.6

  
$
1,338.3