Segment Information, Geographic and Product Data

12 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Segment Information, Geographic and Product Data

Segment Information, Geographic and Product Data

The Company has two reportable segments, Specialty Alloys Operations (“SAO”) and Performance Engineered Products (“PEP”).

The SAO segment is comprised of the Company’s major premium alloy and stainless steel manufacturing operations. This includes operations performed at mills primarily in Reading and Latrobe and surrounding areas in Pennsylvania, South Carolina and Alabama. The combined assets of the SAO operations are being managed in an integrated manner to optimize efficiency and profitability across the total system.

The PEP segment is comprised of the Company’s differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Powder Products business, the Amega West business, the Specialty Steel Supply business, the Latrobe and Mexico distribution business. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics.

The Company's executive management evaluates the performance of these operating segments based on sales, operating income and cash flow generation. Segment operating profit excludes general corporate costs, which include executive and director compensation, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that management considers not representative of ongoing operations, such as restructuring related charges, and other specifically-identified income or expense items.

The service cost component of the Company’s net pension expense, which represents the estimated cost of future pension liabilities earned associated with active employees, is included in the operating income of the business segments.  The residual net pension expense, which is comprised of the expected return on plan assets, interest costs on the projected benefit obligations of the plans and amortization of actuarial gains and losses and prior service costs, is included under the heading “Pension earnings, interest and deferrals.”

On a consolidated basis, no single customer accounted for 10 percent or more of the Company’s net sales for the years ended June 30, 2015, 2014 and 2013.

Segment Data	Years Ended June 30,
($ in millions)	2015			2014			2013
Net Sales:
Specialty Alloys Operations	$	1,796.6		$	1,741.6		$	1,823.5
Performance Engineered Products	497.7			498.6			520.1
Intersegment	(67.6		)	(67.2		)	(71.9		)
Consolidated net sales	$	2,226.7		$	2,173.0		$	2,271.7
	Years Ended June 30,
($ in millions)	2015			2014			2013
Operating Income:
Specialty Alloys Operations	$	155.2		$	232.7		$	268.5
Performance Engineered Products	39.1			45.5			45.2
Corporate costs (including restructuring charges)	(72.0		)	(43.8		)	(47.7		)
Pension EID	(9.4		)	(21.8		)	(31.9		)
Intersegment	(1.4		)	(0.6		)	(1.4		)
Consolidated operating income	$	111.5		$	212.0		$	232.7
	Years Ended June 30,
($ in millions)	2015			2014			2013
Depreciation and Amortization:
Specialty Alloys Operations	$	95.0		$	83.4		$	76.7
Performance Engineered Products	23.3			23.8			22.1
Corporate	4.6			5.5			5.9
Intersegment	(0.6		)	(0.8		)	(0.6		)
Consolidated depreciation and amortization	$	122.3		$	111.9		$	104.1
	Years Ended June 30,
($ in millions)	2015			2014			2013
Capital Expenditures:
Specialty Alloys Operations	$	129.0		$	319.9		$	283.5
Performance Engineered Products	38.1			24.7			24.1
Corporate	4.3			5.4			4.1
Intersegment	(0.9		)	(0.8		)	(1.5		)
Consolidated capital expenditures	$	170.5		$	349.2		$	310.2
	June 30,
($ in millions)	2015			2014
Total Assets:
Specialty Alloys Operations	$	2,323.0		$	2,454.8
Performance Engineered Products	499.2			491.7
Corporate	125.0			144.9
Intersegment	(41.3		)	(33.9		)
Consolidated total assets	$	2,905.9		$	3,057.5

Geographic Data	Years Ended June 30,
($ in millions)	2015		2014		2013
Net Sales: (a)
United States	$	1,579.9	$	1,537.9	$	1,575.3
Europe	359.6		349.5		382.1
Asia Pacific	141.8		137.1		153.6
Canada	61.2		65.3		59.8
Mexico	59.2		59.2		66.6
Other	25.0		24.0		34.3
Consolidated net sales	$	2,226.7	$	2,173.0	$	2,271.7

(a) Net sales were attributed to countries based on the location of the customer.

	June 30,
($ in millions)	2015		2014
Long-lived assets:
United States	$	1,367.0	$	1,379.5
Asia Pacific	18.1		11.6
Canada	6.5		8.4
Europe	4.5		6.1
Mexico	0.9		1.4
Consolidated long-lived assets	$	1,397.0	$	1,407.0

Product Data	Years Ended June 30,
($ in millions)	2015		2014		2013
Special alloys	$	991.2	$	917.0	$	989.9
Stainless steel	619.2		643.6		638.8
Alloy and tool steel	218.8		240.4		255.7
Titanium products	164.8		157.7		155.0
Powder metals	61.8		48.6		60.4
Distribution and other	170.9		165.7		171.9
Total net sales	$	2,226.7	$	2,173.0	$	2,271.7