Segment Information

12 Months Ended

Dec. 31, 2023

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, 2023, 2022 and 2021 and for the years then ended.

(In millions)	Composite Materials			Engineered Products		Corporate & Other			Total
Third-party sales
2023	$	1,474.2		$	314.8	$	—		$	1,789.0
2022		1,279.7			298.0		—			1,577.7
2021		1,019.4			305.3		—			1,324.7
Intersegment sales
2023	$	70.6		$	2.4	$	(73.0	)	$	—
2022		66.3			2.8		(69.1	)		—
2021		56.7			2.4		(59.1	)		—
Operating income (loss)
2023	$	237.9		$	32.8	$	(55.4	)	$	215.3
2022		178.2			36.6		(39.6	)		175.2
2021		88.1			20.2		(56.5	)		51.8
Depreciation and amortization
2023	$	110.4		$	14.4	$	—		$	124.8
2022		112.0			14.1		0.1			126.2
2021		123.4			14.5		0.1			138.0
Equity in earnings (losses) from affiliated companies
2023	$	—		$	8.1	$	—		$	8.1
2022		—			8.1		—			8.1
2021		(0.1	)		0.2		(0.1	)		—
Other operating (income) expense
2023	$	1.2		$	0.2	$	—		$	1.4
2022		7.5			—		(19.4	)		(11.9	)
2021		17.8			0.1		0.30			18.2
Segment assets
2023	$	2,309.3		$	543.1	$	66.1		$	2,918.5
2022		2,269.4			523.2		44.7			2,837.3
2021		2,258.2			475.6		85.6			2,819.4
Investments in affiliated companies
2023	$	—		$	—	$	5.0		$	5.0
2022		1.5			38.6		7.5			47.6
2021		1.7			35.3		7.6			44.6
Accrual basis additions to property, plant and equipment
2023	$	70.9		$	50.7	$	—		$	121.6
2022		58.3			11.4		0.1			69.8
2021		35.7			5.7		—			41.4

Geographic Data

Net sales and long-lived assets, by geographic area, consisted of the following for the three years ended December 31, 2023, 2022 and 2021:

(In millions)	2023		2022		2021
Net Sales by Geography (a):
United States	$	888.2	$	819.4	$	685.0
International
France		320.4		235.9		205.0
Spain		183.2		158.9		115.8
Germany		153.6		138.6		96.9
United Kingdom		150.4		119.0		91.3
Austria		56.1		72.8		72.9
Other		37.1		33.1		57.8
Total international		900.8		758.3		639.7
Total consolidated net sales	$	1,789.0	$	1,577.7	$	1,324.7
Net Sales to External Customers (b):
United States	$	737.5	$	667.7	$	546.1
International
Germany		141.2	122.3		107.3
France		174.7	143.4		113.1
Spain		138.1	124.7		91.4
United Kingdom		65.3		51.1		43.4
Other		532.2		468.5		423.4
Total international		1,051.5		910.0		778.6
Total consolidated net sales	$	1,789.0	$	1,577.7	$	1,324.7
Long-lived Assets (c):
United States	$	1,410.3	$	1,420.9	$	1,456.5
International
France	$	322.7	318.1		349.6
United Kingdom		107.2	107.5		130.9
Spain		45.5	45.8		51.5
Other		73.6	71.2		75.8
Total international		549.0		542.6		607.8
Total consolidated long-lived assets	$	1,959.3	$	1,963.5	$	2,064.3

(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, 2023, 2022 and 2021. Also included are right of use assets related to operating leases.

Significant Customers

Approximately 39%, 38% and 33% of our 2023, 2022 and 2021 net sales, respectively were to Airbus and its subcontractors and approximately 15%, 14% and 16% of our 2023, 2022 and 2021 net sales, respectively were to Boeing and its subcontractors.