Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregation of Revenue

The Company operates in two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). Revenue is disaggregated within these two business segments by diversified global markets, primary geographical markets, and diversified products. Comparative information of the Company’s overall revenues (in millions) by global and geographical markets for the fiscal years ended December 31, 2022, 2021 and 2020 is as follows:

(in millions)	2022						2021						2020
	HPMC		AA&S		Total		HPMC		AA&S		Total		HPMC		AA&S		Total
Diversified Global Markets:
Aerospace & Defense:
Jet-Engines- Commercial	$	975.7	$	87.8	$	1,063.5	$	480.9	$	36.3	$	517.2	$	542.7	$	58.2	$	600.9
Airframes- Commercial	184.1		284.8		468.9		132.8		129.9		262.7		219.8		191.0		410.8
Defense	158.2		183.0		341.2		221.8		131.0		352.8		184.4		163.9		348.3
Total Aerospace & Defense	$	1,318.0	$	555.6	$	1,873.6	$	835.5	$	297.2	$	1,132.7	$	946.9	$	413.1	$	1,360.0
Energy:
Oil & Gas	35.0		441.7		476.7		42.2		290.1		332.3		37.3		328.5		365.8
Specialty Energy	113.6		163.0		276.6		136.1		123.5		259.6		68.9		184.2		253.1
Total Energy	148.6		604.7		753.3		178.3		413.6		591.9		106.2		512.7		618.9
Automotive	11.2		290.9		302.1		8.7		296.4		305.1		5.5		257.7		263.2
Electronics	2.4		197.6		200.0		1.2		213.9		215.1		0.9		176.8		177.7
Construction/Mining	34.1		142.3		176.4		24.0		98.2		122.2		18.6		123.4		142.0
Medical	73.2		89.9		163.1		60.3		71.2		131.5		47.7		71.4		119.1
Food Equipment & Appliances	0.2		158.3		158.5		0.1		153.0		153.1		—		159.2		159.2
Other	53.5		155.5		209.0		47.0		101.2		148.2		38.8		103.2		142.0
Total	$	1,641.2	$	2,194.8	$	3,836.0	$	1,155.1	$	1,644.7	$	2,799.8	$	1,164.6	$	1,817.5	$	2,982.1

(in millions)	2022						2021						2020
	HPMC		AA&S		Total		HPMC		AA&S		Total		HPMC		AA&S		Total
Primary Geographical Market:
United States	$	742.9	$	1,475.7	$	2,218.6	$	571.3	$	963.6	$	1,534.9	$	641.0	$	1,168.1	$	1,809.1
China	59.8		292.0		351.8		49.5		320.9		370.4		31.0		284.5		315.5
United Kingdom	165.7		52.0		217.7		136.7		17.2		153.9		101.9		24.6		126.5
Germany	148.4		52.5		200.9		74.1		47.2		121.3		76.6		48.8		125.4
France	125.7		31.5		157.2		48.7		9.8		58.5		66.5		18.4		84.9
Canada	46.2		41.2		87.4		36.3		39.6		75.9		28.3		40.6		68.9
Rest of World	352.5		249.9		602.4		238.5		246.4		484.9		219.3		232.5		451.8
Total	$	1,641.2	$	2,194.8	$	3,836.0	$	1,155.1	$	1,644.7	$	2,799.8	$	1,164.6	$	1,817.5	$	2,982.1

Comparative information of the Company’s major products based on their percentages of sales is included in the following table. The Company no longer reports standard stainless product sales as a separate product category. Prior period information includes these sales within the nickel-based alloys and specialty alloys category. HRPF conversion service sales in the AA&S segment are excluded from this presentation.

	2022						2021						2020
	HPMC		AA&S		Total		HPMC		AA&S		Total		HPMC		AA&S		Total
Diversified Products:
Nickel-based alloys and specialty alloys	49	%	54	%	52	%	43	%	44	%	43	%	38	%	49	%	45	%
Precision forgings, castings and components	34	%	—	%	15	%	38	%	—	%	16	%	34	%	—	%	14	%
Precision rolled strip	—	%	25	%	14	%	—	%	33	%	19	%	—	%	25	%	15	%
Titanium and titanium-based alloys	17	%	7	%	11	%	19	%	6	%	12	%	28	%	11	%	17	%
Zirconium and related alloys	—	%	14	%	8	%	—	%	17	%	10	%	—	%	15	%	9	%
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

The Company maintains a backlog of confirmed orders totaling $2.9 billion, $2.1 billion and $1.4 billion at December 31, 2022, 2021 and 2020, respectively. Due to the structure of the Company’s LTAs, 80% of this backlog at December 31, 2022 represented booked orders with performance obligations that will be satisfied within the next twelve months. The backlog does not reflect any elements of variable consideration.

Accounts Receivable

As of December 31, 2022 and 2021, accounts receivable with customers were $586.9 million and $473.8 million, respectively. The following represents the rollforward of accounts receivable - reserve for doubtful accounts for the fiscal years ended December 31, 2022, 2021 and 2020:

(in millions)
Accounts Receivable - Reserve for Doubtful Accounts
Balance as of December 31, 2019	4.6
Expense to increase the reserve	0.2
Write-off of uncollectible accounts	(0.5)
Balance as of December 31, 2020	4.3
Expense to increase the reserve	0.3
Write-off of uncollectible accounts	(0.8)
Balance as of December 31, 2021	3.8
Expense to increase the reserve	4.6
Write-off of uncollectible accounts	(0.7)
Balance as of December 31, 2022	$	7.7

Contract balances

The following represents the rollforward of contract assets and liabilities for the fiscal years ended December 31, 2022, 2021 and 2020:

(in millions)
Contract Assets
Short-term	2022		2021		2020
Balance as of beginning of fiscal year	$	53.9	$	38.9	$	38.5
Recognized in current year	105.0		93.8		84.2
Reclassified to accounts receivable	(88.0)		(76.2)		(83.9)
Reclassification to/from long-term and contract liability	(6.8)		(2.6)		0.1
Balance as of period end	$	64.1	$	53.9	$	38.9
Long-term (a)	2022		2021		2020
Balance as of beginning of fiscal year	$	—	$	—	$	0.1
Reclassification to/from short-term	—		—		(0.1)
Balance as of period end	$	—	$	—	$	—

(in millions)
Contract Liabilities
Short-term	2022		2021		2020
Balance as of beginning of fiscal year	$	116.2	$	111.8	$	78.7
Recognized in current year	183.1		161.5		170.3
Amounts in beginning balance reclassified to revenue	(99.8)		(85.1)		(55.9)
Current year amounts reclassified to revenue	(72.3)		(72.9)		(90.1)
Divestiture	—		(0.8)		—
Other	0.7		0.1		—
Reclassification to/from long-term and contract asset	21.2		1.6		8.8
Balance as of period end	$	149.1	$	116.2	$	111.8
Long-term (a)	2022		2021		2020
Balance as of beginning of fiscal year	$	84.4	$	32.0	$	25.9
Recognized in current year	10.4		56.6		14.9
Reclassification to/from short-term	(28.0)		(4.2)		(8.8)
Balance as of period end	$	66.8	$	84.4	$	32.0

(a) Long-term contract assets are included in Other long-term assets and long-term contract liabilities are included in Other long-term liabilities on the consolidated balance sheets.

Contract costs for obtaining and fulfilling a contract were $7.3 million and $5.2 million as of December 31, 2022 and 2021, respectively, which are reported in other long-term assets on the consolidated balance sheets. Amortization expense for the fiscal years ended December 31, 2022, 2021 and 2020 of these contract costs was $1.0 million, $1.0 million, and $1.4 million, respectively.