Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.10.0.1
Segment Information
9 Months Ended
Sep. 30, 2018
Segment Information  
Segment Information

6. SEGMENT INFORMATION

 

The following table sets forth our net sales and operating results by segment, in thousands:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended September 30, 

 

 

2018

 

2017

 

2018

 

2017

 

 

Net Sales

 

Operating Profit (b)

Our operations by segment were (a):

 

 

 

 

 

 

 

 

 

 

 

 

Installation

 

$

464,540

 

$

333,238

 

$

61,004

 

$

40,862

Distribution

 

 

212,948

 

 

181,146

 

 

19,229

 

 

18,300

Intercompany eliminations

 

 

(30,199)

 

 

(25,340)

 

 

(5,658)

 

 

(4,413)

Total

 

$

647,289

 

$

489,044

 

 

74,575

 

 

54,749

General corporate expense, net (d)

 

 

 

 

 

 

 

 

(8,358)

 

 

(5,187)

Operating profit, as reported

 

 

 

 

 

 

 

 

66,217

 

 

49,562

Other expense, net

 

 

 

 

 

 

 

 

(9,203)

 

 

(2,452)

Income before income taxes

 

 

 

 

 

 

 

$

57,014

 

$

47,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 

 

 

2018

 

2017

 

2018

 

2017

 

 

Net Sales

 

Operating Profit (b)

Our operations by segment were (a):

 

 

 

 

 

 

 

 

 

 

 

 

Installation (exclusive of significant legal settlement, shown separately below)

 

$

1,223,357

 

$

945,109

 

$

139,969

 

$

96,985

Significant legal settlement (Installation segment) (c)

 

 

 —

 

 

 —

 

 

 —

 

 

(30,000)

Distribution

 

 

606,335

 

 

526,452

 

 

57,141

 

 

50,806

Intercompany eliminations

 

 

(84,990)

 

 

(66,696)

 

 

(15,382)

 

 

(11,393)

Total

 

$

1,744,702

 

$

1,404,865

 

 

181,728

 

 

106,398

General corporate expense, net (d)

 

 

 

 

 

 

 

 

(37,937)

 

 

(19,503)

Operating profit, as reported

 

 

 

 

 

 

 

 

143,791

 

 

86,895

Other expense, net

 

 

 

 

 

 

 

 

(18,734)

 

 

(6,614)

Income before income taxes

 

 

 

 

 

 

 

$

125,057

 

$

80,281


(a)

All of our operations are located in the U.S.

(b)

Segment operating profit for the three and nine months ended September 30, 2018 and 2017, includes an allocation of general corporate expenses attributable to the operating segments which is based on direct benefit or usage (such as salaries of corporate employees who directly support the segment).

(c)

Significant legal settlement expense of $30.0 million incurred during the nine months ended September 30, 2017, related to the settlement agreement with Owens Corning.  For more information see Note 7 – Other Commitments and Contingencies.

(d)

General corporate expense, net includes expenses not specifically attributable to our segments for functions such as corporate human resources, finance, and legal, including salaries, benefits, and other related costs.