Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2022

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 quarters ended March 31, 2022 and 2021 were as follows:

(in millions)	First quarter ended
	March 31, 2022						March 31, 2021
	HPMC		AA&S		Total		HPMC		AA&S		Total
Diversified Global Markets:
Aerospace & Defense:
Jet Engines- Commercial	$	179.0	$	17.6	$	196.6	$	95.9	$	10.2	$	106.1
Airframes- Commercial	37.2		56.5		93.7		26.5		31.7		58.2
Defense	41.4		35.1		76.5		57.4		32.5		89.9
Total Aerospace & Defense	257.6		109.2		366.8		179.8		74.4		254.2
Energy:
Oil & Gas	17.1		86.0		103.1		8.3		74.2		82.5
Specialty Energy	30.1		26.5		56.6		22.2		44.4		66.6
Total Energy	47.2		112.5		159.7		30.5		118.6		149.1
Automotive	2.9		88.1		91.0		2.0		89.5		91.5
Construction/Mining	8.4		43.6		52.0		5.1		37.4		42.5
Electronics	0.5		51.1		51.6		0.3		55.3		55.6
Medical	13.2		23.0		36.2		11.2		17.8		29.0
Food Equipment & Appliances	—		34.0		34.0		—		35.4		35.4
Other	11.8		31.0		42.8		12.0		23.2		35.2
Total	$	341.6	$	492.5	$	834.1	$	240.9	$	451.6	$	692.5

(in millions)	First quarter ended
	March 31, 2022						March 31, 2021
	HPMC		AA&S		Total		HPMC		AA&S		Total
Primary Geographical Market:
United States	$	156.4	$	321.3	$	477.7	$	128.3	$	271.6	$	399.9
Europe	121.3		38.6		159.9		79.1		34.0		113.1
Asia	44.2		115.1		159.3		20.1		122.6		142.7
Canada	10.3		8.7		19.0		8.2		9.1		17.3
South America, Middle East and other	9.4		8.8		18.2		5.2		14.3		19.5
Total	$	341.6	$	492.5	$	834.1	$	240.9	$	451.6	$	692.5

Comparative information of the Company’s major products based on their percentages of sales is included in the following table. The Company has nearly completed its previously-announced exit from standard stainless products, and therefore no longer presents these sales as a separate product category. Prior period information includes these sales within the nickel-based alloys and specialty alloys category. Hot-Rolling and Processing Facility (HRPF) conversion service sales in the AA&S segment are excluded from this presentation.

	First quarter ended
	March 31, 2022						March 31, 2021
	HPMC		AA&S		Total		HPMC		AA&S		Total
Diversified Products and Services:
Nickel-based alloys and specialty alloys	48	%	52	%	50	%	36	%	47	%	43	%
Precision rolled strip products	—	%	29	%	17	%	—	%	31	%	20	%
Precision forgings, castings and components	36	%	—	%	15	%	43	%	—	%	15	%
Titanium and titanium-based alloys	16	%	5	%	10	%	21	%	7	%	12	%
Zirconium and related alloys	—	%	14	%	8	%	—	%	15	%	10	%
Total	100	%	100	%	100	%	100	%	100	%	100	%

The Company maintained a backlog of confirmed orders totaling $2.4 billion and $1.5 billion at March 31, 2022 and 2021, respectively. Due to the structure of the Company’s long-term agreements, approximately 80% of this backlog at March 31, 2022 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 March 31, 2022 and December 31, 2021, accounts receivable with customers were $562.0 million and $473.8 million, respectively. The following represents the rollforward of accounts receivable - reserve for doubtful accounts and contract assets and liabilities for the three months ended March 31, 2022 and 2021:

(in millions)
Accounts Receivable - Reserve for Doubtful Accounts	March 31, 2022		March 31, 2021
Balance as of beginning of fiscal year	$	3.8	$	4.3
Expense to increase the reserve	0.3		0.2
Write-off of uncollectible accounts	(0.1)		(0.3)
Balance as of period end	$	4.0	$	4.2

(in millions)
Contract Assets
Short-term	March 31, 2022		March 31, 2021
Balance as of beginning of fiscal year	$	53.9	$	38.9
Recognized in current year	18.9		25.7
Reclassified to accounts receivable	(22.0)		(19.1)
Reclassification to/from long-term and contract liability	—		(3.5)
Balance as of period end	$	50.8	$	42.0

(in millions)
Contract Liabilities
Short-term	March 31, 2022		March 31, 2021
Balance as of beginning of fiscal year	$	116.2	$	111.8
Recognized in current year	40.5		57.1
Amounts in beginning balance reclassified to revenue	(28.1)		(43.0)
Current year amounts reclassified to revenue	(5.5)		(4.0)
Other	1.3		—
Reclassification to/from long-term and contract asset	8.9		(3.2)
Balance as of period end	$	133.3	$	118.7
Long-term	March 31, 2022		March 31, 2021
Balance as of beginning of fiscal year	$	84.4	$	32.0
Recognized in current year	5.5		24.3
Amounts in beginning balance reclassified to revenue	(0.3)		(0.3)
Current year amounts reclassified to revenue	—		—
Reclassification to/from short-term	(8.9)		(0.3)
Balance as of period end	$	80.7	$	55.7

Contract costs for obtaining and fulfilling a contract were $5.0 million and $5.2 million as of March 31, 2022 and December 31, 2021, respectively, and are reported in other long-term assets on the consolidated balance sheet. Contract cost amortization expense for both the three months ended March 31, 2022 and 2021 was $0.2 million.