Goodwill

The Company conducts annual goodwill impairment testing at least annually as of June 30, or more often if events, changes or circumstances indicate that the carrying amount may not be recoverable. The Company’s Amega West Services (“Amega”) and Specialty Steel Supply (“SSS”) reporting units have been significantly impacted by the prolonged weakness in oil and gas drilling and exploration activity driven by depressed oil prices. In connection with the Company’s latest annual impairment testing date of June 30, 2015, the discounted cash flows analysis for these reporting units included assumptions regarding the duration of the low oil price environment, the timing of an anticipated increase in activity levels and the related impact on customer buying patterns. The Company anticipated an increase in sales for these reporting units beginning in the third quarter of fiscal year 2016. However, given current market conditions, customer orders remained depressed and the reporting units’ results were lower than expected. As a result of the current quarter’s results and outlook for the balance of the fiscal year, the Company determined that an interim impairment test should be performed during the third quarter of fiscal year 2016. In connection with the interim impairment test for Amega and SSS, the Company also performed an interim goodwill impairment test for the Latrobe Distribution reporting unit, for which results have been below expectations for the last several quarters. As a result of the goodwill impairment testing completed in the third quarter, the Company determined that the goodwill associated with Amega and SSS was impaired and recorded an impairment charge of $12.5 million which represents the entire balance of the goodwill recorded for these reporting units. No impairment was identified at the interim impairment testing date for Latrobe Distribution.

The changes in the carrying amount of goodwill by reportable segment for the nine months ended March 31, 2016 were as follows:



($ in millions)	June 30, 2015			Impairment Losses			Other			March 31, 2016
Goodwill	$	292.1		$	—		$	(0.1	)	$	292.0
Accumulated impairment losses	(34.7		)	(12.5		)	—			(47.2		)
Total goodwill	$	257.4		$	(12.5	)	$	(0.1	)	$	244.8

Specialty Alloys Operations	$	195.5		$	—		$	—		$	195.5
Performance Engineered Products	61.9			(12.5		)	(0.1		)	49.3
Total goodwill	$	257.4		$	(12.5	)	$	(0.1	)	$	244.8

The amounts included in “other” in the above table represent foreign exchange impacts on the amounts recorded in goodwill.