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Business Segments
 6 Months Ended
Dec. 31, 2017
Segment Reporting [Abstract]  
Business Segments
Business Segments
 
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, Pennsylvania and surrounding areas as well as 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, and the Latrobe and Mexico distribution businesses. 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.
 
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, one customer, Arconic Inc., accounted for approximately 10 percent of the net sales for both the three and six months ended December 31, 2017. On a consolidated basis, one customer, Arconic Inc., accounted for approximately 17 percent and 15 percent of the net sales for the three and six months ended December 31, 2016, respectively. Approximately 22 percent of the accounts receivable outstanding at December 31, 2017 is due from two customers, Arconic Inc. and Precision Castparts Corporation. No single customer accounted for 10 percent or more of the accounts receivable outstanding at June 30, 2017.
Segment Data
 
Three Months Ended
December 31,
 
Six Months Ended
December 31,
($ in millions)
 
2017
 
2016
 
2017
 
2016
Net Sales:
 
 

 
 

 
 

 
 

Specialty Alloys Operations
 
$
406.3

 
$
348.6

 
$
803.1

 
$
663.7

Performance Engineered Products
 
104.8

 
83.2

 
205.5

 
161.7

Intersegment
 
(23.3
)
 
(4.4
)
 
(41.1
)
 
(9.1
)
Consolidated net sales
 
$
487.8

 
$
427.4

 
$
967.5

 
$
816.3

Segment Data
 
Three Months Ended
December 31,
 
Six Months Ended
December 31,
($ in millions)
 
2017
 
2016
 
2017
 
2016
Operating Income:
 
 

 
 

 
 
 
 
Specialty Alloys Operations
 
$
49.8

 
$
35.6

 
$
100.3

 
$
60.6

Performance Engineered Products
 
7.5

 
0.8

 
12.8

 
(2.0
)
Corporate costs
 
(13.9
)
 
(16.0
)
 
(26.9
)
 
(29.8
)
     Pension earnings, interest and deferrals
 
(0.5
)
 
(5.6
)
 
(1.1
)
 
(12.7
)
Intersegment
 
(2.1
)
 
0.6

 
(2.6
)
 
0.7

Consolidated operating income
 
$
40.8

 
$
15.4

 
$
82.5

 
$
16.8

Segment Data
 
Three Months Ended
December 31,
 
Six Months Ended
December 31,
($ in millions)
 
2017
 
2016
 
2017
 
2016
Depreciation and Amortization:
 
 

 
 

 
 
 
 
Specialty Alloys Operations
 
$
23.4

 
$
23.7

 
$
46.5

 
$
47.2

Performance Engineered Products
 
5.1

 
5.2

 
10.1

 
10.3

Corporate
 
0.9

 
0.9

 
1.8

 
1.7

Intersegment
 
(0.2
)
 
0.1

 
(0.4
)
 
(0.5
)
Consolidated depreciation and amortization
 
$
29.2

 
$
29.9

 
$
58.0

 
$
58.7

Segment Data
 
Three Months Ended
December 31,
 
Six Months Ended
December 31,
($ in millions)
 
2017
 
2016
 
2017
 
2016
Capital Expenditures:
 
 

 
 

 
 
 
 
Specialty Alloys Operations
 
$
11.2

 
$
8.3

 
$
28.4

 
$
23.0

Performance Engineered Products
 
6.3

 
2.5

 
11.1

 
7.0

Corporate
 
9.6

 
7.7

 
16.7

 
15.2

Intersegment
 
(0.3
)
 
—

 
(0.5
)
 
(0.1
)
Consolidated capital expenditures
 
$
26.8

 
$
18.5

 
$
55.7

 
$
45.1

Segment Data
 
December 31,
2017
 
June 30,
2017
($ in millions)
 
 
Total Assets:
 
 

 
 

Specialty Alloys Operations
 
$
2,337.9

 
$
2,292.1

Performance Engineered Products
 
475.7

 
434.3

Corporate
 
148.4

 
167.2

Intersegment
 
(17.9
)
 
(15.5
)
Consolidated total assets
 
$
2,944.1

 
$
2,878.1