James Hardie Industries plc Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

Operating Segment Information and Concentrations of Risk (Tables)

Operating Segment Information and Concentrations of Risk (Tables)

12 Months Ended

Mar. 31, 2014

Operating Segments and Geographical Information

The following are the Company’s operating segments and geographical information:


	Net Sales to Customers¹ Years Ended 31 March
(Millions of US dollars)	2014		2013		2012

USA & Europe Fibre Cement	$	1,127.6	$	951.4	$	862.0
Asia Pacific Fibre Cement		366.2		369.9		375.5

Worldwide total	$	1,493.8	$	1,321.3	$	1,237.5


	Income Before Income Taxes Years Ended 31 March
(Millions of US dollars)		2014			2013			2012

USA & Europe Fibre Cement^2, ³	$	237.0		$	145.6		$	148.4
Asia Pacific Fibre Cement^2, ⁸		81.1			61.7			80.3
Research and Development²		(24.4	)		(26.0	)		(20.7	)

Segments total		293.7			181.3			208.0
General Corporate⁴		(240.6	)		(151.8	)		(52.5	)

Total operating income		53.1			29.5			155.5
Net interest expense⁵		(1.1	)		2.4			(7.4	)
Other income		2.6			1.8			3.0

Worldwide total	$	54.6		$	33.7		$	151.1


	Total Identifiable Assets 31 March
(Millions of US dollars)	2014		2013

USA & Europe Fibre Cement	$	782.6	$	730.6
Asia Pacific Fibre Cement		237.6		230.7
Research and Development		19.7		20.9

Segments total		1,039.9		982.2
General Corporate^6, ⁷		1,066.6		1,131.0

Worldwide total	$	2,106.5	$	2,113.2


	Net Sales to Customers¹ Years Ended 31 March
(Millions of US dollars)		2014		2013		2012

USA	$	1,094.6	$	923.8	$	833.9
Australia		259.2		272.0		282.4
New Zealand		63.0		56.1		54.4
Other Countries		77.0		69.4		66.8

Worldwide total	$	1,493.8	$	1,321.3	$	1,237.5


	Total Identifiable Assets 31 March
(Millions of US dollars)	2014		2013

USA	$	785.8	$	739.8
Australia		176.3		156.3
New Zealand		29.4		39.8
Other Countries		48.4		46.3

Segments total		1,039.9		982.2
General Corporate^6, ⁷		1,066.6		1,131.0

Worldwide total	$	2,106.5	$	2,113.2

¹	Export sales and inter-segmental sales are not significant.

Research and development costs of US$9.6 million, US$11.9 million and US$10.1 million in fiscal years 2014, 2013 and 2012, respectively, were expensed in the USA and Europe Fibre Cement segment. Research and development costs of US$1.3 million, US$1.7 million and US$1.6 million in fiscal years 2014, 2013 and 2012, respectively, were expensed in the Asia Pacific Fibre Cement segment. Research and development costs of US$22.2 million, US$23.6 million and US$18.7 million in fiscal years 2014, 2013 and 2012, respectively, were expensed in the Research and Development segment. The Research and Development segment also included selling, general and administrative expenses of US$2.2 million, US$2.4 million and US$2.0 million in fiscal years 2014, 2013 and 2012, respectively.

Research and development expenditures are expensed as incurred and in total amounted to US$33.1 million, US$37.2 million and US$30.4 million for the years ended 31 March 2014, 2013 and 2012, respectively.

³	Included in the USA and Europe Fibre Cement segment for the years ended 31 March 2014, 2013 and 2012 are asset impairment charges of nil, US$16.9 million and US$14.3 million, respectively. See Note 7 for further information.

⁴

The principal components of the General Corporate segment are officer and employee compensation and related benefits, professional and legal fees, administrative costs, and rental expense on the Company’s corporate offices. Included in the General Corporate segment for the year ended 31 March 2014 are unfavourable asbestos adjustments of US$195.8 million and AICF SG&A expenses of US$2.1 million. Included in the General Corporate segment for the year ended 31 March 2013 are unfavourable asbestos adjustments of US$117.1 million, AICF SG&A expenses of US$1.7 million and ASIC expenses of US$2.6 million. Included in the General Corporate segment for the year ended 31 March 2012 are unfavourable asbestos adjustments of US$15.8 million, AICF SG&A expenses of US$2.8 million and ASIC expenses of US$1.1 million.

⁵

The Company does not report net interest expense for each operating segment as operating segments are not held directly accountable for interest expense. Included in net interest (expense) income is AICF interest income of US$2.9 million, US$7.0 million and US$3.3 million in fiscal years 2014, 2013 and 2012, respectively. See Note 11 for more information.

⁶	The Company does not report deferred tax assets and liabilities for each operating segment as operating segments are not held directly accountable for deferred income taxes. All deferred income taxes are included in the General Corporate segment.

⁷	Asbestos-related assets at 31 March 2014 and 2013 are US$812.4 million and US$882.8 million, respectively, and are included in the General Corporate segment.

⁸	Included in the Asia Pacific Fibre Cement segment for the years ended 31 March 2014, 2013 and 2012 are expenses related to the legacy New Zealand product liability claims of US$1.7 million, US$13.2 million and US$5.4 million, respectively. See Note 13 for more information.

Summary of Gross Sales by Major Customers

The following are gross sales generated by these two customers, which are all from the USA and Europe Fibre Cement segment:


	Years Ended 31 March
(Millions of US dollars)	2014					2013					2012
			%					%					%
Customer A	$	174.2		11.7	%	$	223.0		16.9	%	$	207.4		16.8	%
Customer B		139.6		9.3	%		137.7		10.4	%		135.7		11.0	%

	$	313.8				$	360.7				$	343.1

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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