XML 30 R20.htm IDEA: XBRL DOCUMENT v3.22.2
Business Segments Information
3 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Business Segments Information BUSINESS SEGMENTS INFORMATION
The Company operates its business in three distinct reportable segments: “Pipe”, “International” and “Infiltrator.” “Allied Products & Other” represents the Company’s Allied Products and all other business segments. The Chief Operating Decision Maker (the “CODM”) evaluates segment reporting based on Net Sales and Segment Adjusted Gross Profit. The Company calculated Segment Adjusted Gross Profit as net sales less costs of goods sold, depreciation and amortization, stock-based compensation and non-cash charges. A measure of assets is not applicable, as segment assets are not regularly reviewed by the CODM for evaluating performance or allocating resources.
Pipe – The Pipe segment manufactures and markets high performance thermoplastic corrugated pipe throughout the United States. The Company maintains and serves these markets through product distribution relationships with many of the largest national and independent waterworks distributors, buying groups and co-ops, major national retailers as well as an extensive network of hundreds of small to medium-sized distributors across the United States.
Products include single wall pipe, N-12 HDPE pipe sold into the Storm sewer, Infrastructure and Agriculture markets, High Performance polypropylene pipe sold into the Storm sewer, Infrastructure and sanitary sewer markets. Products are designed primarily for storm water management in the construction and infrastructure marketplace across a broad range of end markets and applications, including non-residential, residential, agriculture and infrastructure. Products are manufactured using HDPE and polypropylene plastic material.
Infiltrator – Infiltrator is a leading national provider of plastic leach field chambers and systems, septic tanks and accessories, primarily for use in residential applications. Infiltrator products are used in onsite septic wastewater treatment systems in the United States and Canada.
International – The International segment manufactures and markets pipe and allied products in certain regions outside of the United States, including Company owned facilities in Canada, subsidiaries that distribute to Europe and the Middle East, exports and through the Company’s joint ventures with local partners in Mexico and South America. The Company’s Mexican joint venture, ADS Mexicana, primarily serves the Mexican and Central American markets, while its South American Joint Venture, Tigre-ADS, is the primary channel to serve the South American markets. The Company’s International product lines include single wall pipe, N-12 HDPE pipe, high performance PP pipe and certain geographies also sell our broad line of Allied Products.
Allied Products & Other – Allied Products and Other manufactures and markets products throughout the United States. Products include StormTech, Nyloplast, ARC Septic Chambers, Inserta Tee, BaySaver filters and water quality structures, Fittings, Cultec and FleXstorm. The Company maintains and serves these markets through product distribution relationships with many of the largest national and independent waterworks distributors, major national retailers as well as an extensive network of hundreds of small to medium-sized distributors across the United States. The Company also sells through a broad variety of buying groups and co-ops in the United States. The Company aggregates operating segments within the Allied Products & Other segment disclosure. None of the operating segments within the Allied Products & Other businesses segment disclosure exceeds the quantitative thresholds for separate segment reporting.
The following table sets forth reportable segment information with respect to the amount of Net sales contributed by each class of similar products for the periods presented:
 Three Months Ended
 June 30, 2022June 30, 2021
(In thousands)Net Sales  Intersegment Net Sales  Net Sales from External Customers Net Sales  Intersegment Net Sales  Net Sales from External Customers
Pipe$524,857 $(9,874)$514,983 $374,010 $(1,903)$372,107 
Infiltrator166,290 (28,906)137,384 126,742 (19,037)107,705 
International
International - Pipe53,419 (5,859)47,560 50,838 (2,914)47,924 
International - Allied Products & Other18,095 — 18,095 14,528 — 14,528 
Total International71,514 (5,859)65,655 65,366 (2,914)62,452 
Allied Products & Other198,909 (2,745)196,164 127,036 — 127,036 
Intersegment Eliminations(47,384)47,384 — (23,854)23,854 — 
Total Consolidated$914,186 $ $914,186 $669,300 $ $669,300 
The following sets forth certain financial information attributable to the reportable segments for the periods presented:
 Three Months Ended
June 30,
 20222021
 (In thousands)
Segment Adjusted Gross Profit  
Pipe$168,579 $84,143 
Infiltrator75,794 59,402 
International20,484 21,378 
Allied Products & Other109,041 63,299 
Intersegment Eliminations(815)(14)
Total$373,083 $228,208 
Depreciation and Amortization
Pipe$12,865 $12,035 
Infiltrator4,867 3,436 
International1,371 1,458 
Allied Products & Other(a)
16,475 17,727 
Total$35,578 $34,656 
Capital Expenditures
Pipe$20,274 $9,830 
Infiltrator12,532 13,026 
International913 250 
Allied Products & Other(a)
2,470 2,440 
Total$36,189 $25,546 
(a)Includes depreciation, amortization and capital expenditures not allocated to a reportable segment. The amortization expense of Infiltrator intangible assets acquired is included in Allied Products & Other.
Reconciliation of Gross Profit to Segment Adjusted Gross Profit
 Three Months Ended
June 30,
 20222021
 (In thousands)
Reconciliation of Segment Adjusted Gross Profit:  
Total Gross Profit$352,107 $201,121 
Depreciation and Amortization20,30217,532
ESOP and stock-based compensation expense6749,555
Total Segment Adjusted Gross Profit$373,083 $228,208