Segment Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Information

Note 16 — 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. Therefore, for each segment, we have also reported disaggregated sales by end market.

The following table presents financial information on our segments as of December 31, 2015, 2014 and 2013, and for the years then ended.

(In millions)	Composite Materials		Engineered Products		Corporate & Other			Total
Third-Party Sales
2015	$	1,458.7	$	402.5	$	—		$	1,861.2
2014		1,420.9		434.6		—			1,855.5
2013		1,286.9		391.3		—			1,678.2
Intersegment sales
2015	$	70.4	$	8.5	$	(78.9	)	$	—
2014		66.7		1.8		(68.5	)		—
2013		68.0		1.8		(69.8	)		—
Operating income (loss)
2015	$	336.2	$	55.8	$	(59.6	)	$	332.4
2014		308.8		67.0		(70.0	)		305.8
2013		276.3		58.9		(64.3	)		270.9
Depreciation
2015	$	70.0	$	6.1	$	0.3		$	76.4
2014		65.5		5.5		0.2			71.2
2013		54.4		4.7		0.2			59.3
Equity in earnings from affiliated companies
2015	$	0.2	$	1.8	$	—		$	2.0
2014		—		1.4		—			1.4
2013		—		1.3		—			1.3
Other expense (income), net
2014		—		—		6.0			6.0
Segment assets
2015	$	1,892.0	$	239.4	$	56.0		$	2,187.4
2014		1,600.7		241.1		194.6			2,036.4
2013		1,479.2		244.0		112.9			1,836.1
Investments in affiliated companies
2015	$	10.1	$	20.3	$	—		$	30.4
2014		10.2		24.0		—			34.2
2013		—		23.3		—			23.3
Accrual basis additions to property, plant and equipment
2015	$	276.0	$	13.0	$	—		$	289.0
2014		260.1		10.1		—			270.2
2013		194.6		11.9		—			206.5

Geographic Data

Net sales and long-lived assets, by geographic area, consisted of the following for the three years ended December 31, 2015, 2014 and 2013:

(In millions)	2015		2014		2013
Net sales by Geography (a):
United States	$	955.4	$	933.2	$	871.0
International
France		320.6		346.9		321.1
Spain		217.8		183.4		164.8
United Kingdom		125.1		135.8		110.9
Austria		93.1		112.6		96.2
Other		149.2		143.6		114.2
Total international		905.8		922.3		807.2
Total consolidated net sales	$	1,861.2	$	1,855.5	$	1,678.2
Net Sales to External Customers (b):
United States	$	850.1	$	834.5	$	765.2
International
France		140.3		159.1		146.1
Spain		149.7		155.3		154.7
Germany		163.7		154.8		135.2
United Kingdom		84.2		95.6		81.4
Other		473.2		456.2		395.6
Total international		1,011.1		1,021.0		913.0
Total	$	1,861.2	$	1,855.5	$	1,678.2
Long-lived assets (c):
United States	$	1,109.9	$	990.1	$	854.6
International
United Kingdom		133.4		116.2		92.6
France		112.1		68.7		55.8
Spain		59.8		68.5		73.2
Other		69.3		88.8		75.5
Total international		374.6		342.2		297.1
Total consolidated long-lived assets	$	1,484.5	$	1,332.3	$	1,151.7

(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.

Significant Customers and Suppliers

Approximately 35%, 31% and 29% of our 2015, 2014 and 2013 net sales, respectively, were to Airbus Group and its subcontractors. Of the 35% of overall sales to Airbus Group and its subcontractors in 2015, 31% related to Commercial Aerospace market applications and 4% related to Space & Defense market applications. Approximately 31%, 32% and 34% of our 2015, 2014 and 2013 net sales, respectively, were to Boeing and related subcontractors. Of the 31% of overall sales to Boeing and its subcontractors in 2015, 29% related to Commercial Aerospace market applications and 2% related to Space & Defense market applications. In the Composite Materials segment approximately 21%, 20% and 24% of sales for 2015, 2014 and 2013, respectively, were to Boeing and its subcontractors. Approximately 42%, 39% and 35% of sales for 2015, 2014 and 2013, respectively were to Airbus Group and its subcontractors. In the Engineered Products segment approximately 71%, 71% and 68% of sales for 2015, 2014 and 2013, respectively were to Boeing and its subcontractors.

A significant decline in business with Airbus Group or Boeing could materially impact our business, operating results, prospects and financial condition.

Certain key raw materials we consume are available from relatively few sources, and in many cases the cost of product qualification makes it impractical to develop multiple sources of supply. The lack of availability of these materials could under certain circumstances materially impact our consolidated results of operations.