Business Segments

6 Months Ended

Jun. 30, 2011

Segment Reporting Disclosure [Abstract]

Note 10. Business Segments

Following is certain financial information with respect to the Company's business segments for the periods
indicated (in millions):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Total sales:
High Performance Metals	$	524.6	$	357.8	$	957.7	$	673.5
Flat-Rolled Products		735.8		620.4		1,454.8		1,141.3
Engineered Products		137.9		106.1		267.1		196.0
		1,398.3		1,084.3		2,679.6		2,010.8
Intersegment sales:
High Performance Metals		27.4		16.0		61.1		29.4
Flat-Rolled Products		8.5		5.1		16.9		9.4
Engineered Products		10.8		11.2		22.6		20.6
		46.7		32.3		100.6		59.4
Sales to external customers:
High Performance Metals		497.2		341.8		896.6		644.1
Flat-Rolled Products		727.3		615.3		1,437.9		1,131.9
Engineered Products		127.1		94.9		244.5		175.4
	$	1,351.6	$	1,052.0	$	2,579.0	$	1,951.4

Operating profit:
High Performance Metals	$	92.9	$	67.3	$	178.5	$	122.3
Flat-Rolled Products		73.7		42.1		137.1		73.5
Engineered Products		6.8		7.9		20.2		9.7
Total operating profit		173.4		117.3		335.8		205.5

Corporate expenses		(25.8)		(15.0)		(51.6)		(27.3)
Interest expense, net		(23.7)		(15.4)		(46.7)		(30.0)
Other expense, net of gains on asset sales		(4.2)		(3.9)		(4.7)		(9.7)
Retirement benefit expense		(19.4)		(22.4)		(38.7)		(44.9)
Income before income taxes	$	100.3	$	60.6	$	194.1	$	93.6

The operating results of ATI Ladish are included in the High Performance Metals segment from the May 9, 2011 acquisition date. Assets in the High Performance Metals segment, including goodwill and identifiable intangible assets, increased by approximately $1.2 billion as a result of the Ladish acquisition.

Retirement benefit expense represents defined benefit plan pension expense, and other postretirement benefit expense for both defined benefit and defined contribution plans. Operating profit with respect to the Company's business segments excludes any retirement benefit expense.

Corporate expenses for the three months ended June 30, 2011 were $25.8 million compared to $15.0 million for the three months ended June 30, 2010. The increase in corporate expenses was primarily related to Ladish transaction costs, and higher incentive compensation expenses associated with long-term performance plans.

Other expense, net of gains on asset sales, primarily includes charges incurred in connection with closed operations and other non-operating income or expense. These items are presented primarily in selling and administrative expenses and in other expense in the statement of operations. These items resulted in net charges of $4.2 million for the three months ended June 30, 2011 and $3.9 million for the three months ended June 30, 2010. This increase was primarily related to greater legal and other expenses at closed operations.