Business, Product and Geographical Area Information and Concentration of Risk

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Business, Product and Geographical Area Information and Concentration of Risk

17. 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 plate and sheet, bare and coated coils and extruded and drawn products, primarily used in our Aero/HS products, Packaging, GE products, Automotive Extrusions and Other products end markets. We operate 13 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, 2023, approximately 65% of our employees were covered by collective bargaining agreements and 4% of those employees were covered by collective bargaining agreements with expiration dates occurring within one year from December 31, 2023.

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

	Year Ended December 31,
	2023		2022		2021
Net sales:
Aero/HS products	$	899.3	$	676.1	$	533.7
Packaging		1,315.2		1,585.3		1,119.3
GE products		596.5		883.8		706.1
Automotive Extrusions		254.9		254.8		225.0
Other products		21.1		27.9		37.9
Total net sales	$	3,087.0	$	3,427.9	$	2,622.0
Timing of revenue recognition:
Products transferred at a point in time	$	2,394.8	$	2,782.9	$	2,067.9
Products transferred over time		692.2		645.0		554.1
Total net sales	$	3,087.0	$	3,427.9	$	2,622.0

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

	Year Ended December 31,
	2023		2022		2021
Net sales to unaffiliated customers:
Domestic	$	2,986.0	$	3,328.2	$	2,545.0
Foreign1		101.0		99.7		77.0
Total net sales	$	3,087.0	$	3,427.9	$	2,622.0
Income taxes paid:
Domestic	$	0.3	$	3.1	$	4.5
Foreign		0.2		3.2		1.1
Total income taxes paid	$	0.5	$	6.3	$	5.6

	As of December 31,
	2023		2022		2021
Long-lived assets:2
Domestic	$	1,025.3	$	984.8	$	925.3
Foreign1		26.8		28.4		29.9
Total long-lived assets	$	1,052.1	$	1,013.2	$	955.2

1.Foreign reflects our London, Ontario production facility.

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

The aggregate foreign currency transaction gain included in determining Net income was immaterial for 2023. The aggregate foreign currency transaction loss included in determining Net loss was $0.5 million for 2022 and immaterial for 2021.

Concentrations. For the years ended December 31, 2023, December 31, 2022 and December 31, 2021, one customer represented 18%, 19% and 16%, respectively, of Net sales, and a second customer represented 16%, 14% and 15%, respectively, of Net sales.

One customer accounted for 20%, a second customer accounted for 13% and a third customer accounted for 12% of the accounts receivable balance at December 31, 2023. One customer accounted for 17%, a second customer accounted for 14% and a third customer accounted for 13% of the accounts receivable balance at December 31, 2022.

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

	Year Ended December 31,
	2023			2022			2021
Percentage of Net sales:
Export sales		10	%		10	%		10	%
Percentage of total annual primary aluminum supply (lbs):
Supply from our top five major suppliers		83	%		81	%		78	%
Supply from our largest supplier		37	%		48	%		47	%
Supply from our second and third largest suppliers combined		28	%		20	%		20	%