XML 122 R27.htm IDEA: XBRL DOCUMENT v2.4.0.6
Segment Information, Geographic and Product Data
12 Months Ended
Jun. 30, 2012
Segment Information, Geographic and Product Data  
Segment Information, Geographic and Product Data

18.          Segment Information, Geographic and Product Data

 

In January 2012, the Company announced a change to its reportable segments, beginning with the second quarter results of fiscal year 2012, to align with a new operating model in which the integrated steel mill operations will be managed distinctly from the collection of other differentiated business unit operations. The Company now has three reportable segments, Specialty Alloys Operations (“SAO”), Latrobe, and Performance Engineered Products (“PEP”).  Previously, the Company’s reportable segments consisted of Premium Alloys Operations, Advanced Metals Operations and Emerging Ventures.

 

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, Pennsylvania and the surrounding area, South Carolina, and the new premium products manufacturing facility being built in Limestone County, Alabama.  The combined assets of the SAO operations will be managed in an integrated manner to optimize efficiency and profitability across the total system.

 

The Latrobe segment is comprised of the operations of the Latrobe business acquired effective February 29, 2012. The Latrobe segment provides management with the focus and visibility into the business performance of these newly acquired operations. The Latrobe segment also includes the results of Carpenter’s distribution business in Mexico.

 

The PEP segment is comprised of the Company’s differentiated operations.  This includes the Dynamet titanium business, the Carpenter Powder Products business, and the Amega West business.  The businesses in the PEP segment will be managed with an entrepreneurial structure to promote speed and flexibility and drive overall revenue and profit growth.

 

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 & deferrals.”

 

On a consolidated basis, no single customer accounted for 10% or more of the Company’s sales. On a consolidated basis one customer, Precision Castparts Corporation, accounted for 10% ($161.7 million and $116.1 million) of the Company’s sales for the years ended June 30, 2011 and 2010, respectively.

 

The accounting policies of our reportable segments are the same as those described in the Summary of Significant Accounting Policies.

 

Segment Data

 

Year Ended June 30,

 

($ in millions)

 

2012

 

2011

 

2010

 

Net Sales:

 

 

 

 

 

 

 

Specialty Alloys Operations

 

$

1,566.6

 

$

1,431.3

 

$

1,017.6

 

Performance Engineered Products

 

347.0

 

248.3

 

157.7

 

Latrobe

 

217.7

 

38.7

 

32.6

 

Intersegment

 

(102.6

)

(43.2

)

(9.3

)

Consolidated net sales

 

$

2,028.7

 

$

1,675.1

 

$

1,198.6

 

Operating Income:

 

 

 

 

 

 

 

Specialty Alloys Operations

 

$

229.4

 

$

139.3

 

$

65.2

 

Performance Engineered Products

 

41.7

 

35.0

 

17.1

 

Latrobe

 

13.3

 

2.2

 

0.7

 

Corporate costs

 

(53.2

)

(42.0

)

(33.4

)

Pension earnings, interest & deferrals

 

(15.3

)

(35.2

)

(38.0

)

Intersegment

 

(5.8

)

(2.9

)

0.1

 

Consolidated operating income

 

$

210.1

 

$

96.4

 

$

11.7

 

 

 

 

Year Ended June 30,

 

($ in millions)

 

2012

 

2011

 

2010

 

Depreciation and Amortization:

 

 

 

 

 

 

 

Specialty Alloys Operations

 

$

53.2

 

$

51.1

 

$

47.8

 

Performance Engineered Products

 

17.7

 

10.2

 

5.5

 

Latrobe

 

7.7

 

0.4

 

0.3

 

Corporate

 

5.6

 

4.9

 

5.5

 

Intersegment

 

(0.4

)

(0.1

)

 

Consolidated depreciation and amortization

 

$

83.8

 

$

66.5

 

$

59.1

 

 

 

 

Year Ended June 30,

 

($ in millions)

 

2012

 

2011

 

2010

 

Capital Expenditures:

 

 

 

 

 

 

 

Specialty Alloys Operations

 

$

121.1

 

$

51.6

 

$

38.1

 

Performance Engineered Products

 

40.0

 

24.8

 

3.2

 

Latrobe

 

7.6

 

0.4

 

0.2

 

Corporate

 

5.3

 

3.9

 

2.7

 

Intersegment

 

(2.1

)

(1.1

)

 

Consolidated capital expenditures

 

$

171.9

 

$

79.6

 

$

44.2

 

 

 

 

Year Ended June 30,

 

 

 

 

($ in millions)

 

2012

 

2011

 

 

 

 

Total Assets:

 

 

 

 

 

 

 

 

Specialty Alloys Operations

 

$

1,293.3

 

$

1,186.2

 

 

 

 

Performance Engineered Products

 

358.6

 

319.6

 

 

 

 

Latrobe

 

843.1

 

29.9

 

 

 

 

Corporate

 

151.0

 

471.7

 

 

 

 

Intersegment

 

(18.2

)

(15.5

)

 

 

 

Consolidated total assets

 

$

2,627.8

 

$

1,991.9

 

 

 

 

 

Geographic Data

 

Year Ended June 30,

 

($ in millions)

 

2012

 

2011

 

2010

 

Net Sales:(a)

 

 

 

 

 

 

 

United States

 

$

1,364.2

 

$

1,163.7

 

$

829.5

 

Europe

 

375.9

 

277.4

 

194.6

 

Asia Pacific

 

142.1

 

110.7

 

82.9

 

Mexico

 

68.8

 

67.1

 

49.3

 

Canada

 

52.1

 

36.6

 

31.6

 

Other

 

25.6

 

19.6

 

10.7

 

Consolidated net sales

 

$

2,028.7

 

$

1,675.1

 

$

1,198.6

 

 

 

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

 

Long-lived assets:

 

June 30,

 

($ in millions)

 

2012

 

2011

 

United States

 

$

901.7

 

$

646.8

 

Canada

 

9.8

 

6.9

 

Europe

 

6.9

 

5.9

 

Mexico

 

1.6

 

1.6

 

Asia Pacific

 

4.6

 

1.7

 

Consolidated long-lived assets

 

$

924.6

 

$

662.9

 

 

Product Data

 

Year Ended June 30,

 

($ in millions)

 

2012

 

2011

 

2010

 

Special alloys

 

$

931.4

 

$

831.8

 

$

611.6

 

Stainless steel

 

637.3

 

564.9

 

373.4

 

Titanium products

 

156.6

 

135.3

 

108.0

 

Powder metals

 

64.3

 

61.4

 

33.8

 

Alloy and tool steel

 

108.6

 

27.2

 

29.9

 

Other materials

 

130.5

 

54.5

 

41.9

 

Total net sales

 

$

2,028.7

 

$

1,675.1

 

$

1,198.6