Business Segments

9 Months Ended

Mar. 31, 2012

Business Segments [Abstract]

Business Segments

14. Business Segments

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 Company's 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, there were no significant individual customers that accounted for more than 10 percent of the total net sales during the three months ended March 31, 2012. For the three months ended March 31, 2011, on a consolidated basis, one customer accounted for 10 percent of the Company's net sales. For the nine months ended March 31, 2012 and 2011 respectively, no single customer accounted for more than 10 percent of the Company's net sales.

The historical segment information below for the three months and nine months ended March 31, 2011 below was recast to conform to the fiscal year 2012 presentation.

	Three Months Ended						Nine Months Ended
Segment Data	March 31,						March 31,
($ in millions)	2012			2011			2012			2011
Net Sales:
Specialty Alloys Operations	$	426.0		$	400.1		$	1,122.2		$	1,023.1
Performance Engineered Products		85.6			71.4			252.1			166.0
Latrobe		56.3			10.0			75.9			28.5
Intersegment		(28.0	)		(17.3	)		(65.1	)		(26.1	)
Consolidated net sales	$	539.9		$	464.2		$	1,385.1		$	1,191.5
Operating Income:
Specialty Alloys Operations	$	66.7		$	42.1		$	163.9		$	94.8
Performance Engineered Products		9.8			11.4			32.0			22.8
Latrobe		2.9			1.2			4.2			1.6
Corporate costs		(18.5	)		(9.0	)		(41.2	)		(29.5	)
Pension earnings, interest & deferrals		(3.8	)		(8.8	)		(11.1	)		(26.4	)
Intersegment		(1.4	)		(1.7	)		(4.2	)		(1.9	)
Consolidated operating income	$	55.7		$	35.2		$	143.6		$	61.4
Depreciation and Amortization:
Specialty Alloys Operations	$	13.4		$	13.0		$	39.5		$	37.8
Performance Engineered Products		4.5			3.5			13.0			6.3
Latrobe		2.0			0.1			2.2			0.2
Corporate		1.4			1.2			4.0			3.7
Intersegment		—			—			(0.2	)		—
Consolidated depreciation and amortization	$	21.3		$	17.8		$	58.5		$	48.0
Capital Expenditures:
Specialty Alloys Operations	$	34.9		$	9.9		$	74.5		$	23.6
Performance Engineered Products		7.9			8.2			26.7			10.8
Latrobe		1.9			—			1.9			0.3
Corporate		2.7			0.4			6.0			1.5
Intersegment		(0.4	)		(0.6	)		(1.8	)		(0.6	)
Consolidated capital expenditures	$	47.0		$	17.9		$	107.3		$	35.6

	March 31, 2012			June 30, 2011
Total Assets:
Specialty Alloys Operations	$	1,265.0		$	1,186.2
Performance Engineered Products		359.1			319.6
Latrobe		837.6			29.9
Corporate		149.8			471.7
Intersegment		(15.2	)		(15.5	)
Consolidated total assets	$	2,596.3		$	1,991.9