Business, Product and Geographical Area Information and Concentration of Risk

12 Months Ended

Dec. 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, for the following end market applications: 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. At December 31, 2019, approximately 62% of our employees were covered by collective bargaining agreements and 8% of those employees were covered by collective bargaining agreements with expiration dates occurring within one year from December 31, 2019.

The following table presents Net sales by end market applications and by timing of control transfer for the periods presented (in millions of dollars):



	Year Ended December 31,
	2019		2018			2017
Net sales:
Aero/HS products	$	803.2	$	739.4		$	653.7
Automotive Extrusions	190.5		239.3			217.3
GE products	480.1		546.0			476.2
Other products	40.3		61.2			50.3
Total net sales	$	1,514.1	$	1,585.9		$	1,397.5

Timing of revenue recognition:
Products transferred at a point in time	$	866.9	$	912.7	¹	n/a
Products transferred over time	647.2		673.2		¹	n/a
Total net sales	$	1,514.1	$	1,585.9

__________________


^1.	As corrected from $543.0 million of products transferred at a point in time and $1,042.9 million of products transferred over time.

The following table presents geographic information for net sales based on country of origin, income taxes paid and long-lived assets for the periods presented (in millions of dollars):



	Year Ended December 31,
	2019		2018		2017
Net sales to unaffiliated customers:
Domestic	$	1,461.4	$	1,509.6	$	1,337.3
Foreign¹	52.7		76.3		60.2
Total net sales	$	1,514.1	$	1,585.9	$	1,397.5
Income taxes paid:
Domestic	$	3.5	$	1.6	$	1.2
Foreign	2.0		2.0		0.1
Total income taxes paid	$	5.5	$	3.6	$	1.3



	December 31,
	2019		2018		2017
Long-lived assets:²
Domestic	$	592.9	$	581.7	$	541.2
Foreign¹	29.1		30.1		30.2
Total long-lived assets	$	622.0	$	611.8	$	571.4

__________________


^1.	Foreign reflects our London, Ontario production facility.


^2.	Long-lived assets represent Property, plant and equipment, net.

The aggregate foreign currency transaction gain (loss) included in determining net income were immaterial for 2019, 2018 and 2017.

Concentrations. For the years ended December 31, 2019, December 31, 2018 and December 31, 2017, one customer represented 25%, 25% and 27%, respectively, of Net sales and a second customer represented 17%, 15% and 12%, respectively, of Net sales.

One individual customer accounted for 41% and another individual customer accounted for 10% of the accounts receivable balance at December 31, 2019. One individual customer accounted for 31% and another individual customer accounted for 11% of the accounts receivable balance at December 31, 2018.

The following table presents information about export sales and primary aluminum supply from our major suppliers for the periods presented:



	Year Ended December 31,
	2019		2018		2017
Percentage of Net sales:
Export sales	14	%	15	%	18	%

Percentage of total annual primary aluminum supply (lbs):
Supply from our top five major suppliers	74	%	81	%	85	%
Supply from our largest supplier	22	%	22	%	36	%
Supply from our second and third largest suppliers combined	32	%	38	%	33	%