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Business Segments
 6 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
Business Segments
Business Segments
 
The Company 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 and Latrobe and surrounding areas in Pennsylvania, South Carolina and Alabama. The combined assets of the SAO operations are being 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 segment includes the Dynamet titanium business, the Carpenter Powder Products business, the Amega West business, the Specialty Steel Supply business, the Latrobe Special Metals Distribution business and Aceros Fortuna based in Mexico. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics.  It is our belief this model will ultimately drive overall revenue and profit growth.
 
The Company’s executive management evaluates the performance of these operating segments based on sales, operating income and cash flow generation. Segment operating profit excludes general corporate costs, which include executive and director compensation, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that management considers not representative of ongoing operations, such as restructuring related charges, transaction costs associated with acquisitions and other specifically-identified income or expense items.
 
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 and deferrals”.
 
On a consolidated basis, there were no significant individual customers that accounted for 10 percent or more of the Company’s net sales for the three and six months ended December 31, 2014 and 2013, respectively.

Segment Data
 
Three Months Ended
December 31,
 
Six Months Ended
December 31,
($ in millions)
 
2014
 
2013
 
2014
 
2013
Net Sales:
 
 

 
 

 
 

 
 

Specialty Alloys Operations
 
$
438.3

 
$
407.5

 
$
874.2

 
$
802.5

Performance Engineered Products
 
133.7

 
113.7

 
263.7

 
232.2

Intersegment
 
(23.6
)
 
(17.7
)
 
(39.7
)
 
(32.6
)
Consolidated net sales
 
$
548.4

 
$
503.5

 
$
1,098.2

 
$
1,002.1

 
 
 
 
 
 
 
 
 
Operating Income:
 
 

 
 

 
 

 
 

Specialty Alloys Operations
 
$
43.4

 
$
54.4

 
$
68.0

 
$
118.1

Performance Engineered Products
 
12.6

 
8.6

 
22.2

 
20.2

Corporate costs
 
(7.0
)
 
(11.3
)
 
(17.3
)
 
(24.2
)
Pension earnings, interest and deferrals
 
(2.4
)
 
(3.8
)
 
(4.7
)
 
(9.8
)
Intersegment
 
(1.6
)
 
(0.4
)
 
(1.0
)
 
(1.0
)
Consolidated operating income
 
$
45.0

 
$
47.5

 
$
67.2

 
$
103.3

 
 
 
 
 
 
 
 
 
Depreciation and Amortization:
 
 

 
 

 
 

 
 

Specialty Alloys Operations
 
$
23.2

 
$
19.6

 
$
46.8

 
$
39.1

Performance Engineered Products
 
5.9

 
5.9

 
12.0

 
11.7

Corporate
 
1.2

 
1.5

 
2.3

 
3.0

Intersegment
 
(0.2
)
 
(0.2
)
 
(0.5
)
 
(0.3
)
Consolidated depreciation and amortization
 
$
30.1

 
$
26.8

 
$
60.6

 
$
53.5

 
 
 
 
 
 
 
 
 
Capital Expenditures:
 
 

 
 

 
 

 
 

Specialty Alloys Operations
 
$
52.7

 
$
106.7

 
$
104.3

 
$
189.7

Performance Engineered Products
 
16.1

 
5.1

 
22.9

 
12.1

Corporate
 
0.3

 
2.6

 
1.3

 
3.1

Intersegment
 
(0.7
)
 
(0.2
)
 
(1.1
)
 
(0.4
)
Consolidated capital expenditures
 
$
68.4

 
$
114.2

 
$
127.4

 
$
204.5

 
 
 
December 31,
2014
 
June 30,
2014
Total Assets:
 
 

 
 

Specialty Alloys Operations
 
$
2,437.5

 
$
2,454.8

Performance Engineered Products
 
510.8

 
491.7

Corporate
 
140.7

 
144.9

Intersegment
 
(34.0
)
 
(33.9
)
Consolidated total assets
 
$
3,055.0

 
$
3,057.5