Business Segments

6 Months Ended

Dec. 31, 2011

Business Segments [Abstract]

Business Segments

14. Business Segments

In January 2012, the Company announced a change to its reportable segments. The Company now 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, 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 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, there were no significant customers that accounted for more than 10 percent of the total net sales during the three months and six months ended December 31, 2011 and December 31, 2010.

The historical segment information below for the three months and six months ended December 31, 2010 below was recast to conform to the fiscal 2012 presentation.

Segment Data	Three Months Ended December 31,						Six Months Ended December 31,
($ in millions)	2011			2010			2011			2010
Net Sales:
Specialty Alloys Operations	$	360.5		$	325.8		$	696.3		$	623.0
Performance Engineered Products		82.3			45.4			166.5			94.6
Other		9.5			9.2			19.6			18.5
Intersegment		(21.2	)		(4.8	)		(37.2	)		(8.8	)
Consolidated net sales	$	431.1		$	375.6		$	845.2		$	727.3
Operating Income:
Specialty Alloys Operations	$	50.9		$	26.7		$	97.2		$	52.7
Performance Engineered Products		10.4			4.7			22.2			11.4
Other		0.7			0.2			1.2			0.4
Corporate costs		(12.6	)		(10.6	)		(22.8	)		(20.5	)
Pension earnings, interest & deferrals		(3.6	)		(8.8	)		(7.2	)		(17.6	)
Intersegment		(1.9	)		(0.1	)		(2.7	)		(0.2	)
Consolidated operating income	$	43.9		$	12.1		$	87.9		$	26.2
Depreciation and Amortization:
Specialty Alloys Operations	$	13.0		$	12.4		$	26.1		$	24.8
Performance Engineered Products		4.3			1.4			8.5			2.8
Other		0.1			0.1			0.2			0.2
Corporate		1.3			1.2			2.6			2.3
Intersegment		(0.1	)		—			(0.2	)		—
Consolidated depreciation and amortization	$	18.6		$	15.1		$	37.2		$	30.1
Capital Expenditures:
Specialty Alloys Operations	$	22.0		$	7.1		$	39.6		$	13.7
Performance Engineered Products		10.2			1.7			18.8			2.7
Other		—			0.2			—			0.2
Corporate		1.5			0.6			3.3			1.1
Intersegment		(0.7	)		—			(1.4	)		—
Consolidated capital expenditures	$	33.0		$	9.6		$	60.3		$	17.7

	December 31, 2011			June 30, 2011
Total Assets:
Specialty Alloys Operations	$	1,229.6		$	1,186.2
Performance Engineered Products		341.2			319.6
Other		29.9			29.9
Corporate		283.1			471.7
Intersegment		(9.0	)		(15.5	)
Consolidated total assets	$	1,874.8		$	1,991.9