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Revenue from Contracts with Customers
 6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Disaggregation of Revenue
The Company operates in two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). Revenue is disaggregated within these two business segments by diversified global markets, primary geographical markets and diversified products. Comparative information of the Company’s overall revenues (in millions) by global and geographical markets for the second quarters and six months ended June 30, 2020 and 2019 were as follows:
(in millions)Second quarter ended
June 30, 2020June 30, 2019
HPMCAA&STotalHPMCAA&STotal
Diversified Global Markets:
Aerospace & Defense$252.3  $113.3  $365.6  $444.8  $127.4  $572.2  
Energy*22.8  144.7  167.5  33.4  180.0  213.4  
Automotive1.0  49.8  50.8  3.1  70.5  73.6  
Food Equipment & Appliances0.1  47.1  47.2  —  49.6  49.6  
Electronics/Computers/Communications0.2  39.3  39.5  0.3  37.8  38.1  
Construction/Mining5.0  29.8  34.8  13.4  39.2  52.6  
Medical10.3  19.6  29.9  21.1  21.3  42.4  
Other9.0  26.0  35.0  17.0  21.5  38.5  
Total$300.7  $469.6  $770.3  $533.1  $547.3  $1,080.4  
(in millions)Six Months Ended
June 30, 2020June 30, 2019
HPMCAA&STotalHPMCAA&STotal
Diversified Global Markets:
Aerospace & Defense$611.1  $247.0  $858.1  $845.4  $252.4  $1,097.8  
Energy*46.9  291.2  338.1  61.5  320.4  381.9  
Automotive3.0  124.3  127.3  6.7  143.8  150.5  
Food Equipment & Appliances0.1  97.5  97.6  0.1  102.7  102.8  
Construction/Mining10.3  68.1  78.4  31.9  78.6  110.5  
Electronics/Computers/Communications0.5  72.2  72.7  0.3  71.9  72.2  
Medical27.3  41.2  68.5  45.8  42.7  88.5  
Other21.8  63.3  85.1  38.0  43.0  81.0  
Total$721.0  $1,004.8  $1,725.8  $1,029.7  $1,055.5  $2,085.2  
*Includes the oil & gas, hydrocarbon and chemical processing, and electrical energy markets.
(in millions)Second quarter ended
June 30, 2020June 30, 2019
HPMCAA&STotalHPMCAA&STotal
Primary Geographical Market:
United States$166.2  $311.0  $477.2  $290.2  $350.3  $640.5  
Europe92.0  32.4  124.4  160.9  46.3  207.2  
Asia27.6  91.1  118.7  49.4  122.5  171.9  
Canada5.1  11.1  16.2  14.9  14.5  29.4  
South America, Middle East and other9.8  24.0  33.8  17.7  13.7  31.4  
Total$300.7  $469.6  $770.3  $533.1  $547.3  $1,080.4  
(in millions)Six Months Ended
June 30, 2020June 30, 2019
HPMCAA&STotalHPMCAA&STotal
Primary Geographical Market:
United States$393.5  $689.8  $1,083.3  $559.2  $702.4  $1,261.6  
Europe225.5  70.0  295.5  319.5  98.7  418.2  
Asia52.7  185.3  238.0  92.1  203.0  295.1  
Canada16.7  21.5  38.2  26.3  29.5  55.8  
South America, Middle East and other32.6  38.2  70.8  32.6  21.9  54.5  
Total$721.0  $1,004.8  $1,725.8  $1,029.7  $1,055.5  $2,085.2  
Comparative information of the Company’s major high-value and standard products based on their percentages of sales is included in the following table. Hot-Rolling and Processing Facility (HRPF) conversion service sales in the AA&S segment are excluded from this presentation.
Second quarter ended
June 30, 2020June 30, 2019
HPMCAA&STotalHPMCAA&STotal
Diversified Products and Services:
High-Value Products
     Nickel-based alloys and specialty alloys36 %26 %30 %37 %30 %33 %
     Titanium and titanium-based alloys29 %13 %19 %25 %10 %18 %
     Precision forgings, castings and components35 %— %14 %38 %— %19 %
     Precision rolled strip products— %19 %12 %— %21 %10 %
     Zirconium and related alloys— %14 %8 %— %11 %6 %
Total High-Value Products100 %72 %83 %100 %72 %86 %
Standard Products
     Standard stainless products— %28 %17 %— %28 %14 %
Total100 %100 %100 %100 %100 %100 %
Six Months Ended
June 30, 2020June 30, 2019
HPMCAA&STotalHPMCAA&STotal
Diversified Products and Services:
High-Value Products
     Nickel-based alloys and specialty alloys38 %25 %31 %37 %26 %32 %
     Titanium and titanium-based alloys27 %12 %18 %25 %11 %18 %
     Precision forgings, castings and components35 %— %15 %38 %— %19 %
     Precision rolled strip products— %21 %12 %— %22 %11 %
     Zirconium and related alloys— %13 %8 %— %12 %6 %
Total High-Value Products100 %71 %84 %100 %71 %86 %
Standard Products
     Standard stainless products— %29 %16 %— %29 %14 %
Total100 %100 %100 %100 %100 %100 %
The Company maintained a backlog of confirmed orders totaling $1.51 billion and $2.38 billion at June 30, 2020 and 2019, respectively. Due to the structure of the Company’s long-term agreements, approximately 70% of this backlog at June 30, 2020 represented booked orders with performance obligations that will be satisfied within the next 12 months. The backlog does not reflect any elements of variable consideration.
Contract balances
As of June 30, 2020 and December 31, 2019, accounts receivable with customers were $488.1 million and $558.7 million, respectively. The following represents the rollforward of accounts receivable - reserve for doubtful accounts and contract assets and liabilities for the six months ended June 30, 2020 and 2019:
(in millions)
Accounts Receivable - Reserve for Doubtful AccountsJune 30,
2020		June 30,
2019
Balance as of beginning of fiscal year$4.6  $6.0  
Expense to increase the reserve0.2  0.2  
Write-off of uncollectible accounts(0.3) (1.0) 
Reclassification to held for sale —  (0.2) 
Balance as of period end$4.5  $5.0  
(in millions)
Contract Assets
Short-termJune 30,
2020		June 30,
2019
Balance as of beginning of fiscal year$38.5  $51.2  
Recognized in current year37.5  45.1  
Reclassified to accounts receivable(34.5) (48.0) 
Impairment—  —  
Reclassification to/from long-term0.1  —  
Reclassification to held for sale —  (7.4) 
Balance as of period end$41.6  $40.9  
Long-termJune 30,
2020		June 30,
2019
Balance as of beginning of fiscal year$0.1  $0.1  
Recognized in current year—  —  
Reclassified to accounts receivable—  —  
Impairment—  —  
Reclassification to/from short-term(0.1) —  
Balance as of period end$—  $0.1  
(in millions)
Contract Liabilities
Short-termJune 30,
2020		June 30,
2019
Balance as of beginning of fiscal year$78.7  $71.4  
Recognized in current year97.9  57.1  
Amounts in beginning balance reclassified to revenue(33.9) (44.8) 
Current year amounts reclassified to revenue(38.5) (14.4) 
Other(0.2) —  
Reclassification to/from long-term5.8  —  
Balance as of period end$109.8  $69.3  
Long-termJune 30,
2020		June 30,
2019
Balance as of beginning of fiscal year$25.9  $7.3  
Recognized in current year12.4  0.5  
Amounts in beginning balance reclassified to revenue(0.5) (0.5) 
Current year amounts reclassified to revenue—  —  
Other—  —  
Reclassification to/from short-term(5.8) —  
Balance as of period end$32.0  $7.3  
Contract costs for obtaining and fulfilling a contract were $6.1 million and $6.5 million as of June 30, 2020 and December 31, 2019, respectively, and are reported in other long-term assets on the consolidated balance sheet. Contract cost amortization expense for the three and six months ended June 30, 2020 was $0.4 million and $0.7 million, respectively. Contract cost amortization expense for the three and six months ended June 30, 2019 was $0.3 million and $0.6 million, respectively.