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, 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, the CalRAM 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. Also excluded are items that management considers not representative of ongoing operations, such as loss on divestiture of business, restructuring and asset impairment 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, one customer, Arconic, Inc., accounted for approximately 12 percent, 11 percent and 13 percent of net sales for the years ended June 30, 2018, 2017 and 2016, respectively. No single customer accounted for 10 percent or more of the accounts receivable outstanding at June 30, 2018 and 2017.



Segment Data	Years Ended June 30,
($ in millions)	2018			2017			2016
Net Sales:
Specialty Alloys Operations	$	1,803.8		$	1,461.6		$	1,481.0
Performance Engineered Products	429.7			366.6			358.7
Intersegment	(75.8		)	(30.6		)	(26.3		)
Consolidated net sales	$	2,157.7		$	1,797.6		$	1,813.4

	Years Ended June 30,
($ in millions)	2018			2017			2016
Operating Income:
Specialty Alloys Operations	$	232.4		$	172.3		$	176.9
Performance Engineered Products	26.1			8.5			(5.5		)
Corporate costs (including loss on divestiture of business, restructuring and impairment charges)	(66.4		)	(61.3		)	(103.0		)
Pension earnings, interest and deferrals	(2.1		)	(23.8		)	(19.3		)
Intersegment	(2.9		)	1.5			2.5
Consolidated operating income	$	187.1		$	97.2		$	51.6

	Years Ended June 30,
($ in millions)	2018			2017			2016
Depreciation and Amortization:
Specialty Alloys Operations	$	93.3		$	94.0		$	94.4
Performance Engineered Products	20.2			20.6			21.9
Corporate	3.9			4.0			3.8
Intersegment	(0.8		)	(0.8		)	(0.8		)
Consolidated depreciation and amortization	$	116.6		$	117.8		$	119.3

	Years Ended June 30,
($ in millions)	2018			2017			2016
Capital Expenditures:
Specialty Alloys Operations	$	63.6		$	52.2		$	67.0
Performance Engineered Products	31.6			17.0			19.8
Corporate	41.6			29.7			8.6
Intersegment	(1.8		)	(0.4		)	(0.2		)
Consolidated capital expenditures	$	135.0		$	98.5		$	95.2

				June 30,
($ in millions)				2018			2017
Total Assets:
Specialty Alloys Operations				$	2,312.1		$	2,292.1
Performance Engineered Products				513.6			434.3
Corporate				193.2			167.2
Intersegment				(11.9		)	(15.5		)
Consolidated total assets				$	3,007.0		$	2,878.1



Geographic Data	Years Ended June 30,
($ in millions)	2018		2017		2016
Net Sales: (a)
United States	$	1,429.4	$	1,198.3	$	1,243.5
Europe	383.0		349.6		321.4
Asia Pacific	174.8		127.2		129.5
Canada	65.7		47.7		44.9
Mexico	61.7		48.5		46.7
Other	43.1		26.3		27.4
Consolidated net sales	$	2,157.7	$	1,797.6	$	1,813.4

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



	June 30,
($ in millions)	2018		2017
Long-lived assets:
United States	$	1,286.4	$	1,290.7
Asia Pacific	15.4		15.3
Canada	6.3		5.6
Europe	3.9		4.0
Mexico	1.4		1.2
Consolidated long-lived assets	$	1,313.4	$	1,316.8