NOTE 19—SEGMENT AND GEOGRAPHIC INFORMATION

Segment information is prepared on the same basis that our chief operating decision-maker (“CODM”), who is our chief executive officer, manages the segments, evaluates financial results, and makes key operating decisions, and for which discrete financial information is available. As of December 31, 2017, the Company had two reportable segments; Real Alloy North America (“RANA”) and Real Alloy Europe (“RAEU”), each of which is also an operating segment.

Measurement of segment income or loss and segment assets and liabilities

The accounting policies of the reportable segments are the same as those described in Note 4—Presentation, Summary of Significant Accounting Policies and Recent Accounting Standards Updates. Our measure of profitability for our reportable segments is earnings before interest, taxes, depreciation and amortization and excludes certain other items (“Segment Adjusted EBITDA”). Certain of the Company’s assets and liabilities have not been allocated to our reportable segments, including corporate cash, the common stock warrant liability, deferred income taxes, and long-term debt, none of which our CODM uses to evaluate the performance of our reportable segments. Additionally, certain of the Company’s corporate administrative expenses are not allocated to the reportable segments.

Reportable segment information

The following tables show segment revenues and Segment Adjusted EBITDA for the years ended December 31, 2017, 2016 and 2015 and a reconciliation of Segment Adjusted EBITDA to net loss (2015 figures reflect ten months of operations from the acquisition date).


	Year Ended December 31, 2017
(In millions)	RANA		RAEU		Corporate and Other		Total
Revenues	$	887.1	$	459.3	$	—	$	1,346.4
Segment Adjusted EBITDA	$	33.2	$	26.4			$	59.6


	Year Ended December 31, 2016
(In millions)	RANA		RAEU		Corporate and Other		Total
Revenues	$	821.0	$	428.6	$	0.1	$	1,249.7
Segment Adjusted EBITDA	$	44.0	$	23.9			$	67.9


	Year Ended December 31, 2015
(In millions)	RANA		RAEU		Corporate and Other		Total
Revenues	$	711.4	$	434.2	$	—	$	1,145.6
Segment Adjusted EBITDA	$	49.0	$	21.3			$	70.3

The following table provides a reconciliation of Segment Adjusted EBITDA to net loss for the years ended December 31, 2017, 2016 and 2015:


	Year Ended December 31,
(In millions)	2017		2016		2015
Segment Adjusted EBITDA	$	59.6	$	67.9	$	70.3
Unrealized gains (losses) on derivative financial instruments		(0.2)		1.0		(0.8)
Segment depreciation and amortization		(45.1)		(48.5)		(32.5)
Amortization of inventories and supplies purchase accounting adjustments		—		(1.1)		(9.2)
Corporate and Other selling, general and administrative expenses		(10.3)		(15.5)		(13.9)
Goodwill impairment		(33.6)		(61.8)		—
Identifiable intangible asset impairment		(10.1)		(0.1)		—
Property, plant and equipment impairment		(40.5)		—		—
Other, net		(4.3)		(6.6)		(3.7)
Operating profit (loss)		(84.5)		(64.7)		10.2
Interest expense, net		(41.7)		(37.3)		(34.9)
Change in fair value of common stock warrant liability		4.4		2.4		(1.5)
Acquisition-related costs and expenses		—		(1.0)		(14.8)
Foreign exchange gains (losses) on intercompany loans		2.4		(2.4)		(1.3)
Earnings (loss) from equity method investment		2.9		(1.1)		—
Reorganization items, net		(11.7)		—		—
Other nonoperating expense (income), net		(0.4)		0.3		1.5
Income tax benefit		7.8		0.6		9.1
Earnings (loss) from discontinued operations, net of income taxes		—		0.6		24.9
Net loss	$	(120.8)	$	(102.6)	$	(6.8)

The following tables present summarized balance sheet information for each of our reportable segments and a reconciliation to consolidated assets and liabilities as of December 31, 2017 and 2016:


	December 31, 2017				December 31, 2016
(In millions)	RANA		RAEU		RANA		RAEU
Segment Assets
Current assets:
Cash and cash equivalents	$	14.4	$	8.5	$	11.5	$	5.7
Trade accounts receivable, net		105.3		17.2		76.2		12.2
Financing receivable		—		16.5		—		28.4
Inventories		71.5		35.8		79.3		38.9
Prepaid expenses, supplies and other current assets		23.6		7.8		13.7		6.4
Total current assets		214.8		85.8		180.7		91.6
Property, plant and equipment, net		141.9		105.5		195.0		94.2
Equity method investment		7.9		—		5.0		—
Identifiable intangible assets, net		—		—		12.5		—
Goodwill		—		9.8		33.6		8.6
Other noncurrent assets		8.8		3.3		5.0		3.5
Total segment assets	$	373.4	$	204.4	$	431.8	$	197.9
Segment Liabilities
Current liabilities:
Trade payables	$	60.3	$	36.1	$	73.8	$	41.8
Accrued liabilities		15.1		12.2		30.0		13.4
Total current liabilities		75.4		48.3		103.8		55.2
Accrued pension benefits		—		46.9		—		42.0
Environmental liabilities		10.4		—		11.6		—
Other noncurrent liabilities		5.6		1.9		4.5		1.8
Segment liabilities not subject to compromise		91.4		97.1		119.9		99.0
Segment liabilities subject to compromise		337.6		—		—		—
Total segment liabilities	$	429.0	$	97.1	$	119.9	$	99.0


	December 31,
(In millions)	2017		2016
Assets:
Real Alloy North America	$	373.4	$	431.8
Real Alloy Europe		204.4		197.9
Cash and cash equivalents - Corporate and Other		2.0		9.9
Deferred income taxes, net		9.0		—
Other unallocated assets		3.3		5.9
Total consolidated assets	$	592.1	$	645.5
Liabilities:
Real Alloy North America	$	429.0	$	119.9
Real Alloy Europe		97.1		99.0
RA DIP Financing, net		103.9		—
Long-term debt, net		8.0		356.5
Common stock warrant liability		—		4.4
Deferred income taxes, net		2.7		2.5
Other unallocated liabilities		3.8		3.8
Total consolidated liabilities	$	644.5	$	586.1

Geographic Information

The following tables provide information about our consolidated revenues, based on customer location, for the years ended December 31, 2017, 2016 and 2015, and consolidated long-lived tangible assets, net of accumulated depreciation, as of December 31, 2017 and 2016:


	Year Ended December 31,
(In millions)	2017		2016		2015
United States	$	701.0	$	640.4	$	545.2
International:
Europe		459.3		427.6		434.2
Canada and Mexico		186.1		181.7		166.2
Total international		645.4		609.3		600.4
Total revenues	$	1,346.4	$	1,249.7	$	1,145.6


	December 31,
(In millions)	2017		2016
United States	$	112.7	$	164.5
International:
Europe		105.5		94.2
Canada and Mexico		29.3		30.5
Total international		134.8		124.7
Total long-lived tangible assets	$	247.5	$	289.2

During the years ended December 31, 2017 and 2016 capital expenditures were $12.2 million and $17.8 million, respectively, for RANA and $11.6 million and $13.0 million, respectively, for RAEU.