Segment Information

12 Months Ended

Dec. 31, 2022

Segment Reporting [Abstract]

Segment Information

Note 18 — Segment Information

The financial results for our segments are prepared using a management approach, which is consistent with the basis and manner in which we internally segregate financial information for the purpose of assisting in making internal operating decisions. We evaluate the performance of our segments based on operating income, and generally account for intersegment sales based on arm’s length prices. We report two segments, Composite Materials and Engineered Products. Corporate and certain other expenses are not allocated to the segments, except to the extent that the expense can be directly attributable to the segment. Corporate & Other is shown to reconcile to Hexcel’s consolidated results.

In addition to the product line-based segmentation of our business, we also monitor sales into our principal end markets as a means to understanding demand for our products.

The following table presents financial information on our segments as of December 31, 2022, 2021 and 2020 and for the years then ended.

(In millions)	Composite Materials			Engineered Products			Corporate & Other			Total
Third-party sales
2022	$	1,279.7		$	298.0		$	—		$	1,577.7
2021		1,019.4			305.3			—			1,324.7
2020		1,185.9			316.5			—			1,502.4
Intersegment sales
2022	$	66.3		$	2.8		$	(69.1	)	$	—
2021		56.7			2.4			(59.1	)		—
2020		53.9			2.5			(56.4	)		—
Operating income (loss)
2022	$	178.2		$	36.6		$	(39.6	)	$	175.2
2021		88.1			20.2			(56.5	)		51.8
2020		60.7			9.4			(56.0	)		14.1
Depreciation and amortization
2022	$	112.0		$	14.1		$	0.1		$	126.2
2021		123.4			14.5			0.1			138.0
2020		125.5			15.3			0.1			140.9
Equity in earnings (losses) from affiliated companies
2022	$	—		$	8.1		$	—		$	8.1
2021		(0.1	)		0.2			(0.1	)		-
2020		(0.3	)		(1.1	)		(0.2	)		(1.6	)
Other operating (income) expense
2022	$	7.5		$	—		$	(19.4	)	$	(11.9	)
2021		17.8			0.1			0.3			18.2
2020		32.10			9.8			16.00			57.9
Segment assets
2022	$	2,269.4		$	523.2		$	44.7		$	2,837.3
2021		2,258.2			475.6			85.6			2,819.4
2020		2,382.3			473.8			61.7			2,917.8
Investments in affiliated companies
2022	$	1.5		$	38.6		$	7.5		$	47.6
2021		1.7			35.3			7.6			44.6
2020		2.0			35.0			7.7			44.7
Accrual basis additions to property, plant and equipment
2022	$	58.3		$	11.4		$	0.1		$	69.8
2021		35.7			5.7			—			41.4
2020		38.6			3.9			—			42.5

Geographic Data

Net sales and long-lived assets, by geographic area, consisted of the following for the three years ended December 31, 2022, 2021 and 2020:

(In millions)	2022		2021		2020
Net Sales by Geography (a):
United States	$	819.4	$	685.0	$	792.6
International
France		235.9		205.0		226.1
Spain		158.9		115.8		101.5
Germany		138.6		96.9		127.1
United Kingdom		119.0		91.3		104.8
Austria		72.8		72.9		83.6
Other		33.1		57.8		66.7
Total international		758.3		639.7		709.8
Total consolidated net sales	$	1,577.7	$	1,324.7	$	1,502.4
Net Sales to External Customers (b):
United States	$	667.7	$	546.1	$	703.5
International
Germany		122.3	107.3		124.6
France		143.4	113.1		106.7
Spain		124.7	91.4		107.4
United Kingdom		51.1		43.4		37.7
Other		468.5		423.4		422.5
Total international		910.0		778.6		798.9
Total consolidated net sales	$	1,577.7	$	1,324.7	$	1,502.4
Long-lived Assets (c):
United States	$	1,420.9	$	1,456.5	$	1,523.3
International
France	$	318.1	349.6		398.5
United Kingdom		107.5	130.9		144.4
Spain		45.8	51.5		57.7
Other		71.2	75.8		86.6
Total international		542.6		607.8		687.2
Total consolidated long-lived assets	$	1,963.5	$	2,064.3	$	2,210.5

(a)Net sales by geography based on the location in which the product sold was manufactured.

(b)Net sales to external customers based on the location to which the product sold was delivered.

(c)Long-lived assets primarily consist of property, plant and equipment, net and goodwill at December 31, 2022, 2021 and 2020. Also included are right of use assets related to operating leases.

Significant Customers

Approximately 38%, 33% and 33% of our 2022, 2021 and 2020 net sales, respectively were to Airbus and its subcontractors and approximately 14%, 16% and 19% of our 2022, 2021 and 2020 net sales, respectively were to Boeing and its subcontractors.