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SEC Filings

10-Q
FORTERRA, INC. filed this Form 10-Q on 11/09/2017
Entire Document
 
FORTERRA, INC.
Notes to Unaudited Condensed Consolidated Financial Statements



18.    Segment reporting

Segment information is presented in accordance with ASC 280, Segment Reporting, which establishes standards for reporting information about operating segments. It also establishes standards for related disclosures about products and geographic areas. Operating segments are defined as components of an enterprise that engage in business activities that earn revenues, incur expenses and prepare separate financial information that is evaluated regularly by the Company’s chief operating decision maker (CODM) in order to allocate resources and assess performance. The Corporate and Other segment includes expenses related to certain executive salaries, interest costs related to the Company's credit agreements, acquisition related costs, and other corporate costs that are not directly attributable to the Company's operating segments. The Company's segments follow the same accounting policies as the Company.

Net sales from the major products sold to external customers include drainage pipe and precast products and concrete and steel water transmission pipe.

The Company’s three geographic areas consist of the United States, Canada and Mexico for which it reports net sales, fixed assets and total assets. For purposes of evaluating segment profit, the CODM reviews EBITDA as a basis for making the decisions to allocate resources and assess performance.
    
The following tables set forth reportable segment information with respect to net sales and other financial information attributable to the Company's reportable segments for the three and nine months ended September 30, 2017 and 2016 (in thousands):

For the three months ended September 30, 2017:
 
Drainage Pipe & Products
Water Pipe & Products
Corporate and Other
Total
Net Sales
$
248,231

$
195,987

$
39

$
444,257

Income (loss) from continuing operations before income taxes
35,529

(21,294
)
(34,191
)
(19,956
)
Depreciation and amortization
11,703

17,136

319

29,158

Interest expense
110

14

15,458

15,582

EBITDA
$
47,342

$
(4,144
)
$
(18,414
)
$
24,784

 
 
 
 
 
Capital expenditures
$
4,696

$
2,774

$
68

$
7,538



For the three months ended September 30, 2016:
 
Drainage Pipe & Products
Water Pipe & Products
Corporate and Other
Total
Net Sales
$
215,486

$
225,645

$
1

$
441,132

Income (loss) from continuing operations before income taxes
37,994

24,478

(49,950
)
12,522

Depreciation and amortization
10,057

18,351

82

28,490

Interest expense
3,451

805

27,500

31,756

EBITDA
$
51,502

$
43,634

$
(22,368
)
$
72,768

 
 
 
 
 
Capital expenditures
$
6,351

$
6,632

$

$
12,983




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