Business, Product and Geographical Area Information and Concentration of Risk

3 Months Ended

Mar. 31, 2019

Business, Product and Geographical Area Information and Concentration of Risk

Our primary line of business is the production of semi-fabricated specialty aluminum mill products, such as aluminum plate and sheet and extruded and drawn products, primarily used in Aero/HS products, Automotive Extrusions, GE products and Other products. We operate 12 focused production facilities in the United States and one in Canada. Our chief operating decision maker reviews and evaluates our business as a single operating segment. Prior to September 2018, we reported our consolidated financial statements based on one reportable segment, Fabricated Products (comprised primarily of our manufacturing operations), and presented the business unit All Other (comprised primarily of corporate general and administrative expenses) as a reconciling item between Fabricated Products and our consolidated financial statements. During the nine months ended September 30, 2018, we determined that the All Other business unit had decreased in materiality and relevance and was therefore immaterial to our consolidated financial statements. Therefore, we no longer separate All Other from Fabricated Products for all periods presented in this Report and on a prospective basis.

At March 31, 2019, approximately 62% of our employees were covered by collective bargaining agreements and approximately 1% of our employees were covered by collective bargaining agreements with expiration dates occurring within one year from March 31, 2019.

Net sales by end market applications and by timing of control transfer for each period presented were as follows (in millions of dollars):



	Quarter Ended
	March 31,
	2019		2018
Net sales:
Aero/HS products	$	198.5	$	170.2
Automotive Extrusions	53.0		60.5
GE products	130.0		143.3
Other products	13.7		14.0
Total net sales	$	395.2	$	388.0

Timing of revenue recognition:
Products transferred at a point in time	$	131.8	$	156.6
Products transferred over time	263.4		231.4
Total net sales	$	395.2	$	388.0

Geographic information for income taxes paid for each period presented was as follows (in millions of dollars):



	Quarter Ended
	March 31,
	2019		2018
Income taxes paid:
Domestic	$	0.1	$	0.2
Foreign	0.8		—
Total income taxes paid	$	0.9	$	0.2

Concentrations. For the quarter ended March 31, 2019, one customer represented 24% and another represented 14% of Net sales. For the quarter ended March 31, 2018, one customer represented 27% and another represented 13% of Net sales.

At March 31, 2019, one individual customer accounted for 29% and another individual customer accounted for 13% of the accounts receivable balance. One individual customer accounted for 31% and another individual customer accounted for 11% of the accounts receivable balance at December 31, 2018.

Information about primary aluminum supply from our major suppliers for each period presented was as follows:



	Quarter Ended
	March 31,
	2019		2018
Percentage of total primary aluminum supply (lbs):
Supply from our top five major suppliers	71	%	81	%
Supply from our largest supplier	20	%	39	%
Supply from our second and third largest suppliers combined	28	%	27	%