| Segment Information |
6. SEGMENT INFORMATION
The following table sets forth our net sales and operating results by segment, in thousands:
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Three Months Ended September 30,
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2018
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2017
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2018
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2017
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Net Sales
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Operating Profit (b)
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Our operations by segment were (a):
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Installation
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$
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464,540
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$
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333,238
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$
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61,004
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$
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40,862
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Distribution
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212,948
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181,146
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19,229
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18,300
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Intercompany eliminations
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(30,199)
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(25,340)
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(5,658)
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(4,413)
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Total
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$
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647,289
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$
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489,044
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74,575
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54,749
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General corporate expense, net (d)
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(8,358)
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(5,187)
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Operating profit, as reported
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66,217
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49,562
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Other expense, net
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(9,203)
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(2,452)
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Income before income taxes
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$
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57,014
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$
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47,110
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Nine Months Ended September 30,
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2018
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2017
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2018
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2017
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Net Sales
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Operating Profit (b)
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Our operations by segment were (a):
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Installation (exclusive of significant legal settlement, shown separately below)
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$
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1,223,357
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$
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945,109
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$
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139,969
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$
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96,985
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Significant legal settlement (Installation segment) (c)
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—
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—
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—
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(30,000)
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Distribution
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606,335
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526,452
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57,141
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50,806
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Intercompany eliminations
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(84,990)
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(66,696)
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(15,382)
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(11,393)
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Total
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$
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1,744,702
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$
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1,404,865
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181,728
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106,398
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General corporate expense, net (d)
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(37,937)
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(19,503)
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Operating profit, as reported
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143,791
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86,895
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Other expense, net
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(18,734)
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(6,614)
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Income before income taxes
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$
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125,057
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$
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80,281
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(a)
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All of our operations are located in the U.S.
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(b)
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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).
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(c)
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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.
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(d)
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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.
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