Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Aug. 08, 2018 | Dec. 31, 2017 | |
Document and Entity Information | |||
Entity Registrant Name | CARPENTER TECHNOLOGY CORP | ||
Entity Central Index Key | 17,843 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 47,260,079 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,391,170,747 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 2,157,700,000 | $ 1,797,600,000 | $ 1,813,400,000 |
Cost of sales | 1,775,500,000 | 1,513,300,000 | 1,535,000,000 |
Cost of sales - excess inventory write-down | 0 | 0 | 22,500,000 |
Gross profit | 382,200,000 | 284,300,000 | 255,900,000 |
Selling, general and administrative expenses | 195,100,000 | 183,900,000 | 173,800,000 |
Loss on divestiture of business | 0 | 3,200,000 | 0 |
Restructuring and asset impairment charges | 0 | 0 | 18,000,000 |
Goodwill impairment | 0 | 0 | 12,500,000 |
Operating income | 187,100,000 | 97,200,000 | 51,600,000 |
Interest expense | (28,300,000) | (29,800,000) | (28,000,000) |
Other income (expense), net | 1,400,000 | 2,800,000 | (2,100,000) |
Income before income taxes | 160,200,000 | 70,200,000 | 21,500,000 |
Income tax (benefit) expense | (28,300,000) | 23,200,000 | 10,200,000 |
Net income | $ 188,500,000 | $ 47,000,000 | $ 11,300,000 |
EARNINGS PER COMMON SHARE: | |||
Basic (in dollars per share) | $ 3.96 | $ 0.99 | $ 0.23 |
Diluted (in dollars per share) | $ 3.92 | $ 0.99 | $ 0.23 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||
Basic (in shares) | 47.2 | 47 | 48.1 |
Diluted (in shares) | 47.6 | 47.1 | 48.2 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 188.5 | $ 47 | $ 11.3 |
Other comprehensive income (loss), net of tax | |||
Pension and postretirement benefits gain (loss), net of tax of $(26.3), $(27.3) and $52.8, respectively | 78.6 | 45.3 | (87.5) |
Net gain on derivative instruments, net of tax of $(13.7), $(11.8) and $(4.0), respectively | 26.1 | 19.5 | 6.7 |
Foreign currency translation | (1.4) | 2 | (0.9) |
Other comprehensive income (loss), net of tax | 103.3 | 66.8 | (81.7) |
Comprehensive income (loss), net of tax | $ 291.8 | $ 113.8 | $ (70.4) |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Pension and post-retirement benefits gain (loss), tax (expense) benefit | $ (26.3) | $ (27.3) | $ 52.8 |
Net gain (loss) on derivative instruments, tax expense (benefit) | (13.7) | (11.8) | (4) |
Unrealized gain on marketable securities, net of tax expense (benefit) | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING ACTIVITIES | |||
Net income | $ 188,500,000 | $ 47,000,000 | $ 11,300,000 |
Adjustments to reconcile net income to net cash provided from operating activities: | |||
Depreciation and amortization | 116,600,000 | 117,800,000 | 119,300,000 |
Goodwill impairment charge | 0 | 0 | 12,500,000 |
Non-cash excess inventory write-down | 0 | 0 | 22,500,000 |
Non-cash restructuring and asset impairment charges | 0 | 0 | 7,600,000 |
Deferred income taxes | (61,100,000) | 41,600,000 | 800,000 |
Net pension expense | 14,200,000 | 48,400,000 | 53,800,000 |
Payments from qualified pension plan associated with restructuring charges | 0 | 0 | 9,400,000 |
Share-based compensation expense | 17,600,000 | 13,000,000 | 8,700,000 |
Net loss on disposal of property and equipment and assets held for sale | 2,500,000 | 2,500,000 | 600,000 |
Loss on divestiture of business | 0 | 3,200,000 | 0 |
Changes in working capital and other: | |||
Accounts receivable | (86,800,000) | (34,600,000) | 48,200,000 |
Inventories | 400,000 | (74,600,000) | 1,600,000 |
Other current assets | (9,600,000) | 2,800,000 | (2,100,000) |
Accounts payable | 10,700,000 | 42,500,000 | (7,600,000) |
Accrued liabilities | 28,700,000 | 26,600,000 | (13,500,000) |
Pension plan contributions | (6,700,000) | (100,000,000) | 0 |
Other postretirement plan contributions | (3,400,000) | (3,200,000) | (13,000,000) |
Other, net | (2,400,000) | (2,700,000) | (2,700,000) |
Net cash provided from operating activities | 209,200,000 | 130,300,000 | 257,400,000 |
INVESTING ACTIVITIES | |||
Purchases of property, equipment and software | (135,000,000) | (98,500,000) | (95,200,000) |
Proceeds from disposals of property and equipment and assets held for sale | 1,900,000 | 2,500,000 | 1,400,000 |
Acquisition of business | (13,300,000) | (35,300,000) | 0 |
Proceeds from sales and maturities of marketable securities | 700,000 | 900,000 | 900,000 |
Proceeds from divestiture of business | 0 | 12,000,000 | 0 |
Proceeds from note receivable from the sale of equity method investment | 6,300,000 | 6,300,000 | 0 |
Proceeds received from sale of equity method investment | 0 | 0 | 6,300,000 |
Other | 0 | 0 | 4,000,000 |
Net cash used for investing activities | (139,400,000) | (112,100,000) | (82,600,000) |
FINANCING ACTIVITIES | |||
Credit agreement borrowings | 0 | 122,100,000 | 77,000,000 |
Credit agreement repayments | 0 | (122,100,000) | (77,000,000) |
Dividends paid | (34,400,000) | (34,100,000) | (34,800,000) |
Payments of debt issue costs | 0 | (1,400,000) | 0 |
Purchases of treasury stock | 0 | 0 | (123,900,000) |
Payments on seller financed debt related to purchase of software | 0 | 0 | (4,900,000) |
Payments on long-term debt | (55,000,000) | 0 | 0 |
Tax benefits on share-based compensation | 0 | 500,000 | 0 |
Proceeds from stock options exercised | 12,900,000 | 2,200,000 | 500,000 |
Withholding tax payments on share-based compensation awards | (2,400,000) | (1,000,000) | (500,000) |
Net cash used for financing activities | (78,900,000) | (33,800,000) | (163,600,000) |
Effect of exchange rate changes on cash and cash equivalents | (1,000,000) | (100,000) | 800,000 |
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (10,100,000) | (15,700,000) | 12,000,000 |
Cash and cash equivalents at beginning of year | 66,300,000 | 82,000,000 | 70,000,000 |
Cash and cash equivalents at end of year | $ 56,200,000 | $ 66,300,000 | $ 82,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 56.2 | $ 66.3 |
Accounts receivable, net of allowance for doubtful accounts of $2.6 million and $2.6 million at June 30, 2018 and 2017, respectively | 378.5 | 290.4 |
Inventories | 689.2 | 690.4 |
Other current assets | 54.9 | 46.5 |
Total current assets | 1,178.8 | 1,093.6 |
Property, plant and equipment, net | 1,313.4 | 1,316.8 |
Goodwill | 268.7 | 263.4 |
Other intangibles, net | 63.3 | 64.9 |
Deferred income taxes | 4.3 | 7.6 |
Other assets | 178.5 | 131.8 |
Total assets | 3,007 | 2,878.1 |
Current liabilities: | ||
Current portion of long-term debt | 0 | 55 |
Accounts payable | 214.7 | 201.1 |
Accrued liabilities | 148.6 | 139.9 |
Total current liabilities | 363.3 | 396 |
Long-term debt, net of current portion | 545.7 | 550 |
Accrued pension liabilities | 288.8 | 378.3 |
Accrued postretirement benefits | 108.2 | 122.6 |
Deferred income taxes | 161.6 | 184.8 |
Other liabilities | 53.5 | 47.8 |
Total liabilities | 1,521.1 | 1,679.5 |
Contingencies and commitments (see Note 11) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock — authorized 100,000,000 shares; issued 55,712,229 shares at June 30, 2018 and 55,349,658 shares at June 30, 2017; outstanding 47,191,744 shares at June 30, 2018 and 46,753,180 shares at June 30, 2017 | 278.6 | 276.7 |
Capital in excess of par value | 310 | 284.8 |
Reinvested earnings | 1,475.9 | 1,321.8 |
Common stock in treasury (8,520,485 shares and 8,596,478 shares at June 30, 2018 and 2017, respectively), at cost | (338.8) | (341.6) |
Accumulated other comprehensive loss | (239.8) | (343.1) |
Total equity | 1,485.9 | 1,198.6 |
Total liabilities and equity | $ 3,007 | $ 2,878.1 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2.6 | $ 2.6 |
Common stock, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued shares (in shares) | 55,712,229 | 55,349,658 |
Common stock, outstanding shares (in shares) | 47,191,744 | 46,753,180 |
Common stock in treasury, shares (in shares) | 8,520,485 | 8,596,478 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Reinvested Earnings | Common Stock in Treasury | Accumulated Other Comprehensive (Loss) Income |
Balances, beginning of period at Jun. 30, 2015 | $ 1,325.9 | $ 276.2 | $ 266.6 | $ 1,332.4 | $ (221.1) | $ (328.2) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 11.3 | 11.3 | ||||
Pension and postretirement benefits loss, net of tax | (87.5) | (87.5) | ||||
Net gain on derivative instruments, net of tax | 6.7 | 6.7 | ||||
Foreign currency translation | (0.9) | (0.9) | ||||
Cash Dividends: | ||||||
Common @ $0.72 per share | (34.8) | (34.8) | ||||
Purchases of treasury stock | (123.9) | (123.9) | ||||
Share-based compensation plans | 8.8 | 7.7 | 1.1 | |||
Stock options exercised | 0.5 | 0.1 | 0.4 | |||
Tax shortfall on share-based compensation | (1.2) | (1.2) | ||||
Balances, end of period at Jun. 30, 2016 | $ 1,104.9 | $ 276.3 | 273.5 | 1,308.9 | $ (343.9) | (409.9) |
Balances, beginning of period (in shares) at Jun. 30, 2015 | 50,318,244 | 55,234,942 | (4,916,698) | |||
Common Shares | ||||||
Purchase of treasury stock (in shares) | (3,762,200) | (3,762,200) | ||||
Stock options exercised (in shares) | 19,627 | 19,627 | ||||
Share-based compensation plans (in shares) | 24,454 | 24,454 | ||||
Balances, end of period (in shares) at Jun. 30, 2016 | 46,600,125 | 55,254,569 | (8,654,444) | |||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | $ 47 | 47 | ||||
Pension and postretirement benefits loss, net of tax | 45.3 | 45.3 | ||||
Net gain on derivative instruments, net of tax | 19.5 | 19.5 | ||||
Foreign currency translation | 2 | 2 | ||||
Cash Dividends: | ||||||
Common @ $0.72 per share | (34.1) | (34.1) | ||||
Share-based compensation plans | 12.7 | 10.4 | $ 2.3 | |||
Stock options exercised | 2.2 | $ 0.4 | 1.8 | |||
Tax shortfall on share-based compensation | (0.9) | (0.9) | ||||
Balances, end of period at Jun. 30, 2017 | $ 1,198.6 | $ 276.7 | 284.8 | 1,321.8 | $ (341.6) | (343.1) |
Common Shares | ||||||
Purchase of treasury stock (in shares) | 0 | |||||
Stock options exercised (in shares) | 95,089 | 95,089 | ||||
Share-based compensation plans (in shares) | 57,966 | 57,966 | ||||
Balances, end of period (in shares) at Jun. 30, 2017 | 46,753,180 | 55,349,658 | (8,596,478) | |||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | $ 188.5 | 188.5 | ||||
Pension and postretirement benefits loss, net of tax | 78.6 | 78.6 | ||||
Net gain on derivative instruments, net of tax | 26.1 | 26.1 | ||||
Foreign currency translation | (1.4) | (1.4) | ||||
Cash Dividends: | ||||||
Common @ $0.72 per share | (34.4) | (34.4) | ||||
Share-based compensation plans | 17 | 14.2 | $ 2.8 | |||
Stock options exercised | 12.9 | $ 1.9 | 11 | |||
Balances, end of period at Jun. 30, 2018 | $ 1,485.9 | $ 278.6 | $ 310 | $ 1,475.9 | $ (338.8) | $ (239.8) |
Common Shares | ||||||
Purchase of treasury stock (in shares) | 0 | |||||
Stock options exercised (in shares) | 362,571 | 362,571 | ||||
Share-based compensation plans (in shares) | 75,993 | 75,993 | ||||
Balances, end of period (in shares) at Jun. 30, 2018 | 47,191,744 | 55,712,229 | (8,520,485) |
CONSOLIDATED STATEMENTS OF CHA9
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per common share (in dollars per share) | $ 0.72 | $ 0.72 | $ 0.72 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 | $ 5 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation The consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. All significant intercompany accounts and transactions are eliminated. Investments in companies in which the Company exercises significant influence, but which it does not control (generally a 20 to 50 percent ownership interest), are accounted for by the equity method of accounting and the Company’s share of their income or loss is included in other income(expense), net in the consolidated statements of income. During fiscal year 2016, the Company sold its only equity method investment in exchange for $6.3 million in cash and $12.6 million in a note receivable. During fiscal years 2018 and 2017 the Company received $6.3 million and $6.3 million , respectively, related to the note receivable. As of June 30, 2018, the note receivable was fully paid. Revenue Recognition Revenue, net of related discounts, rebates, returns and allowances of $26.5 million , $23.8 million and $29.8 million for the years ended June 30, 2018 , 2017 and 2016 , respectively, is recognized when persuasive evidence of arrangement exists, title and risk of loss has transferred to the customer, collectability is reasonably assured and pricing is fixed and determinable. These criteria are generally met upon shipment or delivery of the product based on the applicable shipping terms. Shipping terms may vary for products shipped outside the United States depending on the mode of transportation, the country where the material is shipped and any agreements made with the customers. Freight and Handling Fees and Costs Freight and handling costs billed separately to customers are included as part of net sales, and freight and handling costs expensed are included as part of cost of sales on the consolidated statements of income. Research and Development Research and development expenditures, which amounted to $19.3 million , $16.9 million and $16.3 million in fiscal years 2018 , 2017 and 2016 , respectively, are expensed as incurred and are generally reported in cost of sales in the consolidated statements of income. The research and development expenditures consist principally of salaries and benefits, building costs, utilities and administrative expenses. Substantially all development costs are related to developing new products or designing significant improvements to existing products or processes. Cash Equivalents Cash equivalents consist of highly liquid instruments with original maturities of three months or less. Cash equivalents are stated at cost, which approximates market. Accounts Receivable Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of outstanding amounts. Trade credit is extended based upon periodic evaluation of each customer’s ability to perform its obligations. The Company determines accounts receivable allowances based on an aging of accounts and a review of specific accounts identified as collection risks. The Company does not require collateral to secure accounts receivable. Inventories Inventories are valued at the lower of cost or market. Cost for inventories is principally determined by the LIFO method. The Company also uses the FIFO and average cost methods. As of June 30, 2018 and 2017, $138.6 million and $107.3 million of inventory, respectively, was accounted for using a method other than the LIFO method. Property, Plant and Equipment and Depreciation Fixed assets are stated at historical cost less accumulated depreciation. Depreciation for financial reporting purposes is computed by the straight-line method over the estimated useful lives of the assets. Upon disposal, assets and related depreciation are removed from the accounts and the differences between the net amounts and proceeds from disposal are generally included in cost of goods sold in the consolidated statements of income. Computer Software and Amortization Computer software is included in other assets on the consolidated balance sheets, and is amortized for financial reporting purposes on a straight-line basis over the respective estimated useful lives ranging from 3 to 7 years. Amortization expense charged to operations related to capitalized software amounted to $5.1 million , $5.2 million and $5.5 million for the years ended June 30, 2018 , 2017 and 2016 , respectively. The carrying value of computer software net of accumulated amortization at June 30, 2018 and 2017 was $101.8 million and $71.0 million , respectively. Goodwill Goodwill, net of accumulated impairment losses, representing the excess of the cost over the net tangible and identifiable intangible assets of acquired businesses, is stated at cost. Goodwill is not amortized but instead is annually tested for impairment as of June 30, or more frequently if events or circumstances indicate that the carrying amount of goodwill may be impaired. Such events or circumstances include a decline in general economic conditions, adverse changes in the industry and markets, poor financial performance effecting earnings and cash flows and a trend of negative or declining cash flows over multiple periods. Potential impairment is identified by comparing the fair value of a reporting unit to its carrying value, including goodwill. The fair value is estimated using discounted cash flows and the use of market multiples valuation techniques. These valuation techniques require the use of estimates and assumptions related to projected operating results, capital expenditures and working capital levels as well as the cost of capital. If the carrying value of the reporting unit exceeds its fair value, any impairment loss is measured by comparing the carrying value of the reporting unit’s goodwill to its implied fair value. Intangible assets The costs of intangible assets, consisting principally of trademarks, trade names, non-compete arrangements, technology and customer relationships are amortized on a straight-line basis over the estimated useful lives ranging from 5 to 30 years. Impairment of Long-Lived Assets Long-lived assets, including property, plant and equipment and intangible assets, subject to amortization are reviewed for impairment and written down to fair value whenever events or changes in circumstances indicate that the carrying value may not be recoverable through future undiscounted cash flows. The amount of the impairment loss is the excess of the carrying amount of the impaired assets over the fair value of the assets based upon discounted future cash flows. Environmental Expenditures Environmental expenditures that pertain to current operations or to future revenues are expensed or capitalized consistent with the Company’s capitalization policy for property, plant and equipment. Expenditures that result from the remediation of an existing condition caused by past operations and that do not contribute to current or future revenues are expensed. Liabilities are recognized for remedial activities when the remediation is probable and the cost can be reasonably estimated. Most estimated liabilities are not discounted to present value due to the uncertainty as to the timing and duration of expected costs. For one former operating facility site, due to the routine nature of the expected costs, the liability for future costs is discounted to present value over 20 years assuming a discount rate of approximately 3 percent as of June 30, 2018 and 2017. The liabilities, net of present value discount, for this former operating site were $11.0 million and $11.0 million , as of June 30, 2018 and 2017 , respectively. Derivative Financial Instruments All derivative financial instruments are recorded on the balance sheet at their fair value and changes in fair value are recorded each period in current earnings or other comprehensive income. The Company enters into derivative financial instruments to hedge certain anticipated transactions, firm commitments or assets and liabilities denominated in foreign currencies. In addition, the Company utilizes interest rate swaps to convert fixed rate debt to floating rate. At least quarterly, the Company determines hedge effectiveness utilizing regression analysis for measuring the probable high correlation of the expected future cash flows of the hedged item and the derivative hedging instrument. The ineffective portion of hedges is immediately recorded in the consolidated statements of income. If the hedging relationship ceases to be highly effective or it becomes probable that an expected transaction will no longer occur, future gains or losses on the derivative instrument are recorded in the consolidated statements of income. Foreign Currency Translation Assets and liabilities of most international operations are translated into U.S. dollars at exchange rates in effect at year-end, and their income statements are translated at the average monthly exchange rates prevailing during the year. The resulting translation gains and losses are recorded each period as a component of accumulated other comprehensive income (loss) until the international entity is sold or liquidated. Gains and losses from transactions denominated in foreign currencies are reported in other income (expense), net in the consolidated statements of income. Income Taxes Deferred income taxes are recognized by applying enacted statutory tax rates, applicable to future years, to temporary differences between the tax basis and financial statement carrying values of the Company’s assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets to amounts that are more likely than not to be realized. Significant judgments, estimates and assumptions are required in determining tax return reporting positions and in calculating provisions for income tax, which are based on interpretations of tax regulations and accounting pronouncements. Liabilities are established for uncertain tax positions when it is more likely than not that such positions, if challenged, would not be sustained upon review by taxing authorities. These liabilities are re-evaluated as tax regulations and facts and circumstances change, such as the closing of a tax audit or the expiration of the statute of limitations for a specific exposure. Earnings per Share The Company calculates basic and diluted earnings per share using the two class method. Under the two class method, earnings are allocated to common stock and participating securities (restricted stock units that receive non-forfeitable dividends) according to their participation rights in dividends and undistributed earnings. The earnings available to each class of stock are divided by the weighted average number of shares for the period in each class. Diluted earnings per share assume the issuance of common stock for all potentially dilutive share equivalents outstanding. Concentration of Credit Risk Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and cash equivalents, investments in marketable securities and trade receivables. Investment and cash management policies have been implemented that limit deposit concentrations and limit investments to investment grade securities. The risk with respect to trade receivables is mitigated by monitoring payment terms and periodic credit evaluations we perform on our customers, the short duration of our payment terms and by the diversification of our customer base. During fiscal years 2018, 2017 and 2016, one customer, Arconic, Inc., accounted for approximately 12 percent , 11 percent and 13 percent , respectively, of total net sales. No single customer accounted for 10 percent or more of accounts receivable outstanding at June 30, 2018 and 2017. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain amounts in the consolidated financial statement for prior years have been reclassified to conform to the fiscal year 2018 presentation. |
Acquisitions and Divestiture
Acquisitions and Divestiture | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and Divestiture | Acquisitions and Divestiture On February 21, 2018, the Company acquired all of the outstanding membership interests of MB CalRAM LLC (“CalRAM”), for a cash purchase price of $13.3 million . The acquisition provides the Company with immediate entry into the rapidly expanding part production segment of the additive manufacturing value chain. The purchase price allocation was completed in the fourth quarter of fiscal year 2018 and resulted in the purchase price being allocated to $0.2 million of working capital, $2.6 million of property and equipment, $5.2 million of identifiable intangible assets and $5.3 million of goodwill. On February 28, 2017, the Company acquired substantially all the assets of Puris LLC (“Puris”), for a cash purchase price of $35.3 million . The acquisition provides the Company with immediate entry into the rapidly growing titanium powder market, an expanded presence in additive manufacturing and strengthens the Company’s capabilities as a solutions provider for customers across its end-use markets. The purchase price allocation was completed in the fourth quarter of fiscal year 2017 and resulted in the purchase price being allocated to $1.7 million of working capital, $6.5 million of property and equipment, $8.5 million of identifiable intangible assets and $18.6 million of goodwill. On June 29, 2017, the Company divested the Specialty Steel Supply (“SSS”) business. The divestiture was completed in two separate transactions for total cash proceeds of $12.0 million . In connection with the divestiture, the Company recorded a pretax loss of $3.2 million . The operations of the SSS business were historically included in our Performance Engineered Products (“PEP”) segment. The Company does not have any significant continuing involvement in the operations of SSS after the divestiture. |
Restructuring Charges and Asset
Restructuring Charges and Asset Impairment Charges | 12 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges and Asset Impairment Charges | Restructuring Charges and Asset Impairment Charges There were no restructuring or asset impairment charges during fiscal years 2018 and 2017. Restructuring and asset impairment charges for the year ended June 30, 2016 were $18.0 million . During the year ended June 30, 2016, the Company recorded $10.4 million of pre-tax charges, consisting of $9.4 million associated with an early retirement incentive funded by the Company’s qualified pension plan, $0.7 million of other severance costs paid by the Company in fiscal year 2016 and $0.3 million of other severance related costs paid by the Company in fiscal year 2017. At this time, the Company does not expect any additional charges related to these restructuring actions in the future. As a result of the prolonged weakness in oil and gas drilling and exploration activities and the impact this weakness had on certain reporting units in the PEP segment, the Company recognized non-cash impairment pre-tax charges of $7.6 million on certain long-lived assets, including $6.5 million related to property, plant and equipment and $1.1 million associated with certain definite lived intangible assets during the year ended June 30, 2016. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share The calculations of basic and diluted earnings per common share for the years ended June 30, 2018 , 2017 and 2016 were as follows: Years Ended June 30, (in millions, except per share data) 2018 2017 2016 Net income $ 188.5 $ 47.0 $ 11.3 Less: earnings and dividends allocated to participating securities (1.7 ) (0.3 ) (0.1 ) Earnings available for common shareholders used in calculation of basic earnings per share $ 186.8 $ 46.7 $ 11.2 Weighted average number of common shares outstanding, basic 47.2 47.0 48.1 Basic earnings per common share $ 3.96 $ 0.99 $ 0.23 Net income $ 188.5 $ 47.0 $ 11.3 Less: earnings and dividends allocated to participating securities (1.7 ) (0.3 ) (0.1 ) Earnings available for common shareholders used in calculation of diluted earnings per share $ 186.8 $ 46.7 $ 11.2 Weighted average number of common shares outstanding, basic 47.2 47.0 48.1 Effect of shares issuable under share-based compensation plans 0.4 0.1 0.1 Weighted average number of common shares outstanding, diluted 47.6 47.1 48.2 Diluted earnings per common share $ 3.92 $ 0.99 $ 0.23 The following awards issued under share-based compensation plans were excluded from the calculations of diluted earnings per share above because their effects were anti-dilutive: Years Ended June 30, (in millions) 2018 2017 2016 Stock options 0.7 1.9 1.5 |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following components at June 30, 2018 and 2017 : June 30, ($ in millions) 2018 2017 Raw materials and supplies $ 157.5 $ 152.8 Work in process 372.5 365.6 Finished and purchased products 159.2 172.0 Total inventory $ 689.2 $ 690.4 If the FIFO method of inventory had been used instead of the LIFO method, inventories would have been $210.3 million and $106.1 million higher as of June 30, 2018 and 2017 , respectively. Current cost of LIFO-valued inventories was $760.8 million at June 30, 2018 and $689.2 million at June 30, 2017 . The reductions in LIFO-valued inventories decreased cost of sales by $0.6 million during fiscal year 2018 and $0.0 million during fiscal year 2017 and $0.0 million during fiscal year 2016 . During fiscal year 2016, the Company recorded a $22.5 million charge for excess inventory adjustments in certain reporting units in the PEP segment due to the prolonged weakness in oil and gas businesses. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following components at June 30, 2018 and 2017 : June 30, ($ in millions) 2018 2017 Land $ 34.8 $ 34.1 Buildings and building equipment 500.0 495.7 Machinery and equipment 2,129.0 2,082.4 Construction in progress 83.6 56.3 Total at cost 2,747.4 2,668.5 Less: accumulated depreciation and amortization 1,434.0 1,351.7 Total property, plant, and equipment $ 1,313.4 $ 1,316.8 The estimated useful lives of depreciable assets are as follows: Asset Category Useful Life Buildings and building equipment 10 – 45 Machinery and equipment 3 – 30 As a result of the prolonged weakness in oil and gas drilling and exploration activities and the impact this weakness had on certain reporting units in the PEP segment, the Company recorded an impairment charge related to property, plant and equipment of $6.5 million during fiscal year 2016. Depreciation for the years ended June 30, 2018 , 2017 and 2016 was $104.7 million , $105.8 million and $106.5 million , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net Goodwill The Company conducts goodwill impairment testing at least annually as of June 30, or more often if events, changes or circumstances indicate that the carrying amount may not be recoverable. The Company has determined there was no goodwill impairment for the years ended June 30, 2018 and 2017. As a result of prolonged weakness in oil and gas drilling and exploration activity, the Company determined that the goodwill associated with 2 reporting units was impaired and recorded an impairment charge of $12.5 million during the year ended June 30, 2016 which represented the entire balance of the goodwill recorded for these reporting units. The changes in the carrying amount of goodwill by reportable segment for fiscal years 2018 and 2017 were as follows: ($ in millions) June 30, 2016 Acquisition June 30, 2017 Acquisition June 30, 2018 Goodwill $ 292.0 $ 18.6 $ 310.6 $ 5.3 $ 315.9 Accumulated impairment losses (47.2 ) — (47.2 ) — (47.2 ) Total goodwill $ 244.8 $ 18.6 $ 263.4 $ 5.3 $ 268.7 Specialty Alloys Operations $ 195.5 $ — $ 195.5 $ — $ 195.5 Performance Engineered Products 49.3 18.6 67.9 5.3 73.2 Total goodwill $ 244.8 $ 18.6 $ 263.4 $ 5.3 $ 268.7 Other Intangible Assets, Net June 30, 2018 June 30, 2017 ($ in millions) Useful Life Gross Accumulated Net Carrying Gross Accumulated Net Carrying Trademarks and trade names 15 - 30 $ 33.5 $ (23.2 ) $ 10.3 $ 33.5 $ (21.9 ) $ 11.6 Customer relationships 10 - 15 76.9 (30.8 ) 46.1 73.3 (25.8 ) 47.5 Non-compete agreements 5 0.2 (0.1 ) 0.1 0.2 — 0.2 Technology 15 7.3 (0.5 ) 6.8 5.7 (0.1 ) 5.6 Total $ 117.9 $ (54.6 ) $ 63.3 $ 112.7 $ (47.8 ) $ 64.9 As a result of the prolonged weakness in oil and gas drilling and exploration activities and the impact this weakness had on certain reporting units in the PEP segment, the Company recorded an impairment charge of $1.1 million related to definite lived intangible assets during fiscal year 2016. The Company recorded $6.8 million of amortization expense related to intangible assets during fiscal year 2018 , $6.8 million during fiscal year 2017 and $7.3 million during fiscal year 2016 . The estimated annual amortization expense related to intangible assets for each of the succeeding five fiscal years is $6.9 million in fiscal years 2019 , 2020 , 2021 , 2022 and 2023 . |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Jun. 30, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following as of June 30, 2018 and 2017 : June 30, ($ in millions) 2018 2017 Accrued compensation and benefits $ 83.3 $ 59.1 Accrued postretirement benefits 15.4 15.5 Accrued interest expense 10.4 11.2 Deferred revenue 10.4 9.8 Accrued pension liabilities 3.3 3.3 Accrued income taxes 1.4 5.1 Derivative financial instruments — 13.1 Other 24.4 22.8 Total accrued liabilities $ 148.6 $ 139.9 |
Debt
Debt | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt On March 31, 2017, the Company entered into a $400.0 million syndicated credit facility (“Credit Agreement”) that extends to March 2022. Interest on the borrowings under the Credit Agreement accrue at variable rates, based upon LIBOR or a defined “ Base Rate ,” both determined based upon the rating of the Company’s senior unsecured long-term debt (the “Debt Rating”). The applicable margin to be added to LIBOR ranges from 1.00% to 1.75% ( 1.50% as of June 30, 2018 ), and for Base Rate-determined loans, from 0.00% to 0.75% ( 0.50% as of June 30, 2018 ). The Company also pays a quarterly commitment fee ranging from 0.125% to 0.400% ( 0.275% as of June 30, 2018 ), determined based upon the Debt Rating, of the unused portion of the $400.0 million commitment under the Credit Agreement. In addition, the Company must pay certain letter of credit fees, ranging from 1.00% to 1.75% ( 1.50% as of June 30, 2018 ), with respect to letters of credit issued under the Credit Agreement. The Company has the right to voluntarily prepay and re-borrow loans and to terminate or reduce the commitments under the facility. As of June 30, 2018 , the Company had $6.0 million of issued letters of credit under the Credit Agreement, with the balance of $394.0 million available to the Company. The Company is subject to certain financial and restrictive covenants under the Credit Agreement, which, among other things, require the maintenance of a minimum interest coverage ratio of 3.50 to 1.00 . The interest coverage ratio is defined in the Credit Agreement as, for any period, the ratio of consolidated earnings before interest, taxes, depreciation and amortization and non-cash net pension expense (“EBITDA”) to consolidated interest expense for such period. The Credit Agreement also requires the Company to maintain a debt to capital ratio of less than 55 percent. The debt to capital ratio is defined in the Credit Agreement as the ratio of consolidated indebtedness, as defined therein, to consolidated capitalization, as defined therein. As of June 30, 2018 , the Company was in compliance with all of the covenants of the Credit Agreement. Long-term debt outstanding as of June 30, 2018 and 2017 consisted of the following: June 30, ($ in millions) 2018 2017 Medium-term notes, Series B at 6.97% to 7.10% due from April 2018 to May 2018 (face value of $0.0 and $55.0 million at June 30, 2018 and 2017, respectively) $ — $ 55.0 Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at June 30, 2018 and 2017) 246.6 251.2 Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at June 30, 2018 and 2017) 299.1 298.8 Total 545.7 605.0 Less: amounts due within one year — (55.0 ) Long-term debt, net of current portion $ 545.7 $ 550.0 Aggregate maturities of long-term debt for the five years subsequent to June 30, 2018 , are $0.0 million in fiscal years 2019 , 2020 , 2021, $250.0 million in 2022, and $300.0 million in 2023. For the years ended June 30, 2018 , 2017 and 2016 , interest costs totaled $31.1 million , $31.1 million and $29.9 million , respectively, of which $2.8 million , $1.3 million and $1.9 million , respectively, were capitalized as part of the cost of property, plant, equipment and software. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The Company provides several noncontributory defined benefit pension plans to certain employees. The plans provide defined benefits based on years of service and final average salary. In September 2016, the Company announced changes to retirement plans it offers to certain employees. The Company froze benefits accrued to eligible participants of its largest qualified defined benefit pension plan and certain non-qualified benefit plans effective December 31, 2016. The Company recognized the plan freeze during fiscal year 2017 as a curtailment, since it eliminated the accrual of defined benefits for future services for a significant number of participants. The impact of the curtailment included a one-time accelerated recognition of outstanding unamortized prior service costs of $0.5 million . The curtailment event triggered a re-measurement for the affected benefit plans as of August 31, 2016 using a weighted average discount rate of 3.57 percent . The re-measurement resulted in a reduction of accrued pension liabilities of $18.7 million . The Company made a minimum required contribution of $6.7 million and a voluntary contribution of $ 100.0 million during fiscal years 2018 and 2017, respectively, to its qualified defined benefit pension plans. The Company also provides other postretirement benefit plans to certain of its employees. The postretirement benefit plans consist of health care and life insurance plans. Plan assets are maintained in a Voluntary Employee Benefit Association (“VEBA”) Trust. During fiscal years 2018 and 2017, the Company funded benefit payments using assets in the VEBA Trust. In fiscal year 2016, benefit payments for these plans were funded by the Company assets. The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans: Pension Plans Other Postretirement Plans ($ in millions) 2018 2017 2018 2017 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 1,369.1 $ 1,404.4 $ 255.1 $ 246.0 Service cost 9.5 20.5 2.6 3.6 Interest cost 52.1 50.3 9.5 9.2 Benefits paid (89.8 ) (92.0 ) (13.0 ) (12.7 ) Actuarial (gains) loss (76.6 ) 39.3 (12.7 ) (1.7 ) Special termination benefits 0.2 0.6 — — Curtailment gain — (72.6 ) — — Plan amendments — 18.6 — 10.7 Projected benefit obligation at end of year 1,264.5 1,369.1 241.5 255.1 Change in plan assets: Fair value of plan assets at beginning of year 987.6 885.1 117.0 115.6 Actual return 64.7 91.1 10.6 10.9 Benefits paid (89.8 ) (92.0 ) (13.0 ) (12.7 ) Contributions 10.0 103.4 3.3 3.2 Fair value of plan assets at end of year 972.5 987.6 117.9 117.0 Funded status of the plans $ (292.0 ) $ (381.5 ) $ (123.6 ) $ (138.1 ) Amounts recognized in the consolidated balance sheets: Other assets - noncurrent $ 0.1 $ 0.1 $ — $ — Accrued liabilities - current (3.3 ) (3.3 ) (15.4 ) (15.5 ) Accrued pension liabilities - noncurrent (288.8 ) (378.3 ) — — Accrued postretirement benefits - noncurrent — — (108.2 ) (122.6 ) $ (292.0 ) $ (381.5 ) $ (123.6 ) $ (138.1 ) Pension Plans Other Postretirement Plans ($ in millions) 2018 2017 2018 2017 Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 362.1 $ 451.3 $ 32.9 $ 52.2 Prior service cost (credit) 16.2 18.3 (23.1 ) (28.2 ) Total $ 378.3 $ 469.6 $ 9.8 $ 24.0 Other changes in plan assets and benefit obligations recognized in other comprehensive loss consist of: Net actuarial gain $ (75.0 ) $ (59.1 ) $ (16.3 ) $ (5.7 ) Amortization of net loss (13.5 ) (37.8 ) (2.9 ) (3.2 ) Prior service cost — 18.6 — 10.7 Amortization of prior service (cost) benefit (2.1 ) (1.8 ) 5.2 6.5 Total, before tax effect $ (90.6 ) $ (80.1 ) $ (14.0 ) $ 8.3 Additional information: Accumulated benefit obligation for all pension plans $ 1,257.8 $ 1,362.8 N/A N/A The following is additional information related to plans with projected benefit obligations in excess of plan assets as of June 30, 2018 and 2017 : Pension Plans Other Postretirement Plans ($ in millions) 2018 2017 2018 2017 Projected benefit obligation $ 1,264.4 $ 1,369.0 $ 241.5 $ 255.1 Fair value of plan assets $ 972.4 $ 987.4 $ 117.9 $ 117.0 The following additional information is for plans with accumulated benefit obligations in excess of plan assets as of June 30, 2018 and 2017 : Pension Plans Other Postretirement Plans ($ in millions) 2018 2017 2018 2017 Accumulated benefit obligation $ 1,257.7 $ 1,362.7 $ 241.5 $ 255.1 Fair value of plan assets $ 972.4 $ 987.4 $ 117.9 $ 117.0 The components of the net periodic benefit cost related to the Company’s pension and other postretirement benefits for the years ended June 30, 2018 , 2017 and 2016 are as follows: Pension Plans Other Postretirement Plans ($ in millions) 2018 2017 2016 2018 2017 2016 Service cost $ 9.5 $ 20.5 $ 31.2 $ 2.6 $ 3.6 $ 3.3 Interest cost 52.1 50.3 58.0 9.5 9.2 10.4 Expected return on plan assets (65.9 ) (65.1 ) (66.1 ) (6.9 ) (6.9 ) (7.0 ) Amortization of net loss 13.5 37.8 27.4 2.9 3.2 2.7 Amortization of prior service cost (benefit) 2.1 1.8 0.4 (5.2 ) (6.5 ) (6.5 ) Curtailment loss — 0.5 — — — — Net periodic benefit costs $ 11.3 $ 45.8 $ 50.9 $ 2.9 $ 2.6 $ 2.9 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” in the segment data presented in Note 19 . During the year ended June 30, 2016, the Company offered an early retirement incentive to certain employees. As a result of the incentive, $9.4 million was paid from the Company’s qualified pension plan consisting of various personnel-related costs to cover severance payments. Weighted-average assumptions used to determine benefit obligations at fiscal year end Pension Plans Other Postretirement Plans 2018 2017 2018 2017 Discount rate 4.32 % 3.92 % 4.32 % 3.89 % Rate of compensation increase 3.44 % 3.50 % N/A N/A Weighted-average assumptions used to determine net periodic benefit cost for the fiscal year Pension Plans Other Postretirement Plans 2018 2017 2016 2018 2017 2016 Discount rate 3.92 % 3.91 % 4.50 % 3.89 % 3.86 % 4.50 % Expected long-term rate of return on plan assets 6.87 % 6.88 % 6.92 % 6.25 % 6.25 % 6.25 % Long-term rate of compensation increase 3.44 % 3.50 % 3.49 % N/A N/A N/A The following table shows the expected health care rate increase and the future rate and time at which it is expected to remain constant: June 30, 2018 2017 Assumed health care cost trend rate 6.50 % 7.00 % Rate to which the cost trend rate is assumed to decline and remain (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2022 2022 Assumed health care cost trend rates have an effect on the amounts reported for other postretirement benefits. A one percentage point increase in the assumed health care cost trend rate would increase service and interest cost by $0.1 million and increase the postretirement benefit obligation by $2.6 million . A one percentage point decrease in the assumed health care cost trend rate would decrease service and interest cost by $0.1 million and decrease the postretirement benefit obligation by $2.3 million . Amounts in other comprehensive loss (gain) that are expected to be recognized as components of net periodic benefit cost in the year ended June 30, 2019 are: ($ in millions) Pension Plans Other Postretirement Plans Total Amortization of prior service cost (benefit) $ 2.1 $ (5.2 ) $ (3.1 ) Amortization of net actuarial loss 10.4 1.7 12.1 Amortization of accumulated other comprehensive loss (gain) $ 12.5 $ (3.5 ) $ 9.0 The Company’s U.S. pension plans’ weighted-average asset allocations at June 30, 2018 and 2017 , by asset category are as follows: 2018 2017 Equity securities 55.7 % 55.0 % Fixed income securities 44.3 45.0 Total 100.0 % 100.0 % The Company’s policy for developing a pension plan investment strategy includes the periodic development of an asset and liability study by an independent investment consultant. Management considers this study in establishing an asset allocation that is presented to and approved by the Company’s Retirement Plan Committee. Based on the current funding level, the allocation policy for the Company’s largest pension plan assets is to have approximately 60 percent in return seeking assets and 40 percent in liability matching assets. Return seeking assets include domestic and international equities and diversified loan funds. Liability matching assets include long duration bond funds. As the funding level of the plans improves in increments of 5 percent , assets will be shifted from return seeking to liability matching in increments of 4 percent as a de-risking strategy. The assets related to the Company’s other postretirement benefit plans were invested in approximately 87 percent U.S. equities and 13 percent fixed income securities as of June 30, 2018 . Management establishes the expected long-term rate of return assumption by reviewing historical trends and analyzing the current and projected market conditions in relation to the plan’s asset allocation and risk management objectives. In determining the expected long-term rate of return, the Company considered historical returns for individual asset classes and the impact of active portfolio management. The fair values of the Company’s pension plan assets as of June 30, 2018 and 2017 , by asset category and by the levels of inputs used to determine fair value were as follows: June 30, 2018 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Short-term investments $ 2.5 $ 14.6 $ — $ 17.1 Domestic and international equities 156.4 — — 156.4 Commingled funds — — 365.3 365.3 Limited partnerships — — 43.3 43.3 Government agency bonds 3.5 151.6 — 155.1 Corporate bonds — 226.3 — 226.3 Mutual funds — — 1.8 1.8 Mortgage/asset backed securities and other — 7.2 — 7.2 $ 162.4 $ 399.7 $ 410.4 $ 972.5 June 30, 2017 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Short-term investments $ 9.4 $ 14.6 $ — $ 24.0 Domestic and international equities 148.3 — — 148.3 Commingled funds — — 376.6 376.6 Limited partnerships — — 42.3 42.3 Government agency bonds 3.4 151.0 — 154.4 Corporate bonds — 236.2 — 236.2 Mutual funds — — 1.8 1.8 Mortgage/asset backed securities and other — 4.0 — 4.0 $ 161.1 $ 405.8 $ 420.7 $ 987.6 The fair values of the Company’s other postretirement benefit plans as of June 30, 2018 and 2017 , by asset category and by the level of inputs used to determine fair value, were as follows: June 30, 2018 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Commingled fund $ — $ — $ 80.3 $ 80.3 Short-term investments — 23.0 — 23.0 Government agency bonds — 8.7 — 8.7 Corporate bonds and other — 5.4 — 5.4 Mortgage backed securities — 0.5 — 0.5 $ — $ 37.6 $ 80.3 $ 117.9 June 30, 2017 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Commingled fund $ — $ — $ 73.0 $ 73.0 Short-term investments — 22.4 — 22.4 Government agency bonds — 12.2 — 12.2 Corporate bonds and other — 8.2 — 8.2 Mortgage backed securities — 1.2 — 1.2 $ — $ 44.0 $ 73.0 $ 117.0 A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Investments in domestic and international equities are generally valued at the closing price reported on the active market on which they are traded. Commingled funds, limited partnerships and mutual funds are valued based on the net asset value (“NAV”) established for the fund at each valuation date. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units/shares outstanding. Corporate and government agency bonds and other fixed income securities are valued using closing bid prices on an active market when possible, otherwise using evaluated bid prices. Cash Flows — Employer Contributions The Company made contributions to the qualified U.S. pension plans of $6.7 million , $100.0 million and $0.0 million during fiscal years 2018 , 2017 and 2016 , respectively. The Company currently expects to make $5.5 million in required cash pension contributions to the qualified defined benefit pension plans during fiscal year 2019 . During the years ended June 30, 2018 , 2017 and 2016 , the Company made contributions of $3.3 million , $3.5 million and $3.2 million to other non-qualified pension plans, respectively. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid. Pension benefits are currently paid from plan assets and other benefits are currently paid from corporate assets. ($ in millions) Pension Other 2019 $ 83.8 $ 15.4 2020 $ 84.6 $ 15.4 2021 $ 85.3 $ 15.4 2022 $ 85.9 $ 15.4 2023 $ 86.3 $ 15.3 2024-2028 $ 423.7 $ 74.6 Other Benefit Plans Carpenter also maintains defined contribution retirement and savings plans for substantially all domestic employees. Company contributions to the plans were $22.6 million in fiscal year 2018 , $16.7 million in fiscal year 2017 and $11.8 million in fiscal year 2016 . |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments Environmental The Company is subject to various federal, state, local and international environmental laws and regulations relating to pollution, protection of public health and the environment, natural resource damages and occupational safety and health. Although compliance with these laws and regulations may affect the costs of the Company’s operations, compliance costs to date have not been material. The Company has environmental remediation liabilities at some of its owned operating facilities and has been designated as a potentially responsible party (“PRP”) with respect to certain third party Superfund waste-disposal sites and other third party-owned sites. Additionally, the Company has been notified that it may be a PRP with respect to other Superfund sites as to which no proceedings have been instituted against the Company. Neither the exact amount of remediation costs nor the final method of their allocation among all designated PRPs at these Superfund sites have been determined. Accordingly, at this time, we cannot reasonably estimate expected costs for such matters. The liability for future environmental remediation costs that can be reasonably estimated is evaluated by management on a quarterly basis. The Company accrues amounts for environmental remediation costs that represent management’s best estimate of the probable and reasonably estimable future costs related to environmental remediation. For fiscal year 2018 , the Company had no change to the liability for a company-owned former operating site. During fiscal year 2017 , the Company decreased the liability for a company-owned former operating site by $0.1 million . During fiscal year 2016 , the Company increased the liability for a company-owned former operating site by $0.3 million . The liabilities recorded for environmental remediation costs at Superfund sites, other third party-owned sites and Carpenter-owned current or former operating facilities remaining at June 30, 2018 and 2017 were $16.1 million and $16.1 million , respectively. Other The Company is defending various routine claims and legal actions that are incidental to its business and common to its operations, including those pertaining to product claims, commercial disputes, patent infringement, employment actions, employee benefits, compliance with domestic and foreign laws, personal injury claims and tax issues. Like many other manufacturing companies in recent years, the Company, from time to time, has been named as a defendant in lawsuits alleging personal injury as a result of exposure to chemicals and substances in the workplace. The Company provides for costs relating to these matters when a loss is probable and the amount of the loss is reasonably estimable. The effect of the outcome of these matters on the Company’s future results of operations and liquidity cannot be predicted because any such effect depends on future results of operations and the amount and timing (both as to recording future charges to operations and cash expenditures) of the resolution of such matters. While it is not feasible to determine the outcome of these matters, management believes that the total liability from these matters will not have a material effect on the Company’s financial position, results of operations or cash flows over the long-term. However, there can be no assurance that an increase in the scope of pending matters or that any future lawsuits, claims, proceedings or investigations will not be material to the Company’s financial position, results of operations or cash flows in a particular future quarter or year. The Company has entered into purchase agreements primarily for various key raw materials at market related prices, all made in the normal course of business. The commitments include both fixed and variable price provisions. Raw material prices as of June 30, 2018 were used for commitments with variable pricing. The purchase commitments covered by these agreements aggregate to $172.2 million as of June 30, 2018 . Of this amount $170.7 million relates to fiscal year 2019 and $1.5 million to fiscal year 2020. |
Share Repurchase Program
Share Repurchase Program | 12 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Share Repurchase Program | Share Repurchase Program In October 2014, the Company’s Board of Directors authorized a share repurchase program. The program authorized the purchase of up to $500.0 million of the Company’s outstanding common stock and expired in October 2016. The shares were repurchased from time to time at the Company’s discretion based on capital needs of the business, general market conditions and market price of the stock. During the years ended June 30, 2018 and 2017, the Company did not purchase shares of its common stock on the open market. |
Operating Leases
Operating Leases | 12 Months Ended |
Jun. 30, 2018 | |
Leases, Operating [Abstract] | |
Operating Leases | Operating Leases The Company leases certain facilities and equipment under operating leases. Total rent expense was $13.4 million , $13.2 million and $11.3 million for the fiscal years ended June 30, 2018 , 2017 and 2016 , respectively. Future minimum payments for non-cancellable operating leases in effect at June 30, 2018 are: $9.1 million in fiscal year 2019 , $7.0 million in fiscal year 2020 , $3.9 million in fiscal year 2021 , $2.9 million in fiscal year 2022 , $2.7 million in fiscal year 2023 and $2.9 million thereafter. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value hierarchy has three levels based on the inputs used to determine fair value. Level 1 refers to quoted prices in active markets for identical assets or liabilities. Level 2 refers to observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 refers to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: June 30, 2018 Fair Value Measurements ($ in millions) Level 2 Total Assets: Marketable securities +C5 Municipal auction rate securities $ 2.9 $ 2.9 Derivative financial instruments 35.2 35.2 Total assets $ 38.1 $ 38.1 Liabilities: Derivative financial instruments $ 3.4 $ 3.4 June 30, 2017 Fair Value Measurements ($ in millions) Level 2 Total Assets: Marketable securities Municipal auction rate securities $ 3.4 $ 3.4 Derivative financial instruments 14.5 14.5 Total assets $ 17.9 $ 17.9 Liabilities: Derivative financial instruments $ 19.1 $ 19.1 The Company’s derivative financial instruments consist of commodity forward contracts, foreign currency forward contracts, interest rate swaps and forward interest rate swaps. These instruments are measured at fair value using the market method valuation technique. The inputs to this technique utilize information related to foreign exchange rates, commodity prices and interest rates published by third party leading financial news and data providers. This is observable data; however, the valuation of these instruments is not based on actual transactions for the same instruments and, as such, they are classified as Level 2. The Company’s use of derivatives and hedging policies are more fully discussed in Note 16 . The Company has currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with accounting principles generally accepted in the United States of America. The carrying amounts of other financial instruments not listed in the table below approximate fair value due to the short-term nature of these items. The carrying amounts and estimated fair values of the Company’s financial instruments not recorded at fair value in the financial statements were as follows: June 30, 2018 June 30, 2017 ($ in millions) Carrying Fair Carrying Fair Long-term debt, including current portion $ 545.7 $ 558.3 $ 605.0 $ 622.5 Company-owned life insurance $ 16.4 $ 16.4 $ 15.9 $ 15.9 The fair values of long-term debt as of June 30, 2018 and June 30, 2017 were determined by using current interest rates for debt with terms and maturities similar to the Company’s existing debt arrangements and accordingly would be classified as Level 2 inputs in the fair value hierarchy. The carrying amount of company-owned life insurance reflects cash surrender values based upon the market values of underlying securities, using Level 2 inputs, net of any outstanding policy loans. The carrying value associated with the cash surrender value of these policies is recorded in other assets in the accompanying consolidated balance sheets. For purposes of performing Step 1 of goodwill impairment testing, the Company uses certain nonrecurring fair value measurements using significant unobservable inputs (Level 3). Fair value of each reporting unit for purposes of the goodwill impairment test is based on a weighting of an income approach and a market approach. Under the income approach, fair value is determined based on a discounted cash flow analysis that uses estimates of cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. Under the market approach, a market-based value is derived by relating multiples for earnings and cash flow measures for a group of comparable public companies to the same measure for each reporting unit to estimate fair value. The assumptions used by the Company to determine fair value of the reporting units are similar to those that would be used by market participants performing valuations. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company has two share-based compensation plans: Amended and Restated Stock-Based Incentive Compensation Plan for Officers and Key Employees (the “Omnibus Plan”) and the Stock-Based Compensation Plan for Non-Employee Directors (“Director's Plan”). The Company recognizes compensation cost based on the fair value of the awards on the date of grant. The compensation cost is recognized over the requisite service period of the award, which is generally the shorter of the vesting period that the holder is required to provide service, or the period from the grant date to the date on which the employee is eligible to retire. Upon retirement, as defined in the Company’s share-based compensation plans, outstanding awards are subject to certain accelerated vesting terms. Awards granted under the share-based compensation plans are paid from shares held in treasury and newly issued shares. The total compensation cost that has been charged against income related to these share-based compensation plans was $17.6 million , $13.0 million and $8.7 million for the years ended June 30, 2018 , 2017 and 2016 , respectively. Omnibus Plan The Omnibus Plan provides that the Board of Directors or a designated committee may grant stock options, restricted stock and restricted stock units, and determine the terms and conditions of each grant. The Omnibus Plan provides the Chief Executive Officer with limited authority to grant awards. As of June 30, 2018 , 2,567,536 shares were available for awards which may be granted under this plan. Director’s Plan The Director’s Plan provides for the granting of stock options and stock units to non-employee directors. As of June 30, 2018 , 572,104 shares were available for awards which may be granted under this plan. Stock Options (all plans) Stock options granted under the plans above are granted with an exercise price equal to at least the fair market value of the Company’s common stock on the date of grant. The options are typically exercisable after one to three years of service and expire no longer than ten years from the grant date. The fair value of stock options awarded in fiscal years 2018 , 2017 and 2016 was estimated on the date of each grant using a Black-Scholes option pricing model with the following weighted-average assumptions: Years Ended June 30, 2018 2017 2016 Expected volatility 35 % 37 % 33 % Dividend yield 1.8 % 1.8 % 2.0 % Risk-free interest rate 1.8 % 1.1 % 1.5 % Expected term (in years) 5.0 5.0 5.0 The assumptions are based on multiple factors, including historical exercise patterns of employees in relatively homogeneous groups with respect to exercise and post-vesting employment termination behaviors, expected future exercising patterns for these same homogeneous groups and the implied volatility of our stock price based on historical performance for the same expected term of the options granted. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of each grant. Number of Weighted Weighted Aggregate Outstanding at June 30, 2015 1,507,878 $ 44.61 Granted 277,769 $ 36.31 Exercised (19,627 ) $ 25.12 Forfeited (64,518 ) $ 47.98 Outstanding at June 30, 2016 1,701,502 $ 43.35 Granted 907,141 $ 38.98 Exercised (95,289 ) $ 23.21 Forfeited (80,926 ) $ 44.35 Expired (40,000 ) $ 55.12 Outstanding at June 30, 2017 2,392,428 $ 42.27 Granted 252,545 $ 41.27 Exercised (362,571 ) $ 35.70 Forfeited (25,915 ) $ 45.27 Expired (33,226 ) $ 63.12 Outstanding at June 30, 2018 2,223,261 $ 42.88 6.9 years $ 22.3 Exercisable at June 30, 2018 1,135,224 $ 46.26 5.6 years $ 8.0 Outstanding and Exercisable Options Exercise Price Number Outstanding at June 30, 2018 Weighted Weighted Number Exercisable at June 30, 2018 Weighted $14.17 - $20.00 25,407 1.1 $ 17.30 25,407 $ 17.30 $20.01 - $30.00 8,267 0.3 $ 22.39 8,267 $ 22.39 $30.01 - $40.00 1,043,789 7.7 $ 38.42 202,240 $ 36.88 $40.01 - $50.00 548,986 7.4 $ 41.91 302,498 $ 42.41 $50.01 - $63.54 596,812 5.5 $ 52.95 596,812 $ 52.95 2,223,261 $ 42.88 1,135,224 $ 46.26 The weighted average grant date fair value of options awarded during fiscal years 2018 , 2017 and 2016 was $11.65 , $10.81 and $9.27 , respectively. Share-based compensation charged against income related to stock options for the years ended June 30, 2018 , 2017 and 2016 was $5.0 million , $4.7 million and $3.1 million , respectively. As of June 30, 2018 , $4.1 million of compensation cost related to nonvested stock options will be recognized over a weighted average remaining life of 1.2 years. Of the options outstanding at June 30, 2018 , 2,031,795 relate to the Omnibus Plan and 191,466 relate to the Directors’ Plan. Restricted Stock Unit Awards (Omnibus Plan) Restricted stock unit awards are granted to employees with performance and/or service conditions. Earned restricted stock unit awards receive non-forfeitable cash dividends during the restriction period. The fair value of the restricted stock unit awards is determined based on the close price of the Company’s stock on the grant date. Performance-based restricted stock unit awards are earned dependent upon how certain performance goals are achieved during a specified performance period according to the terms determined at the date of the grant. These shares typically vest zero to two years from the date of the attainment of the specified performance goals. Compensation cost is determined and charged to expense beginning in the performance period through the vesting period. Time-based restricted stock unit awards typically vest three years from the date of grant. Compensation cost related to time-based stock unit awards is recognized over the vesting period of the award. Amounts charged to compensation expense for restricted stock unit awards were $8.8 million , $5.0 million and $2.4 million for the years ended June 30, 2018 , 2017 and 2016 , respectively. As of June 30, 2018 , $11.0 million of compensation cost related to restricted stock unit awards remains to be recognized over a weighted average remaining life of 1.3 years. Number of Awards Weighted Average Grant Date Fair Value Restricted Balance at June 30, 2015 127,409 $ 45.09 Time-based granted 130,742 $ 35.96 Performance-based granted 49,529 $ 31.11 Vested (36,057 ) $ 48.85 Forfeited (83,154 ) $ 42.14 Restricted Balance at June 30, 2016 188,469 $ 35.69 Time-based granted 231,195 $ 38.82 Performance-based granted 55,478 $ 36.18 Vested (44,873 ) $ 34.24 Forfeited (37,792 ) $ 38.80 Restricted Balance at June 30, 2017 392,477 $ 37.47 Time-based granted 138,718 $ 41.49 Performance-based granted 124,432 $ 50.99 Vested (62,215 ) $ 35.35 Forfeited (21,384 ) $ 39.48 Restricted Balance at June 30, 2018 572,028 $ 41.54 Total Stockholder Return Awards The Company granted Total Stockholder Return (“TSR”) awards in fiscal years 2018 , 2017 and 2016 . The TSR awards are granted at a target number of shares. The TSR awards are earned based on the Company’s total stockholder return compared to the total stockholder returns of the Russell RSCC Materials & Processing Growth Index at the end of a three -year period. The actual number of shares awarded may range from a minimum of 0 percent of the target shares to a maximum of 200 percent of the target shares. Participants do not have any rights to dividends (or equivalents) during the performance period. The fair value of the TSR awards was estimated using Monte Carlo valuation models. Compensation cost related to TSR awards recognized in fiscal years 2018 , 2017 and 2016 was $2.8 million , $2.0 million and $2.0 million , respectively. Director Stock Units According to the provisions of the Director’s Plan, on the date of each annual stockholders’ meeting or on such other regularly scheduled date as the Board of Directors may determine from time to time in light of the Company’s prevailing practices for the grant of equity awards to employees, each Director shall be granted, in place of cash compensation, a number of stock units determined by dividing 50 percent of the Director’s annual retainer by the fair market value of the Company’s common stock on that date. These stock units vest as to one-quarter of the units for every three months of service following the grant date and are fully vested on the first anniversary of the grant date. At the Director’s election, the remaining 50 percent of the annual retainer and 100 percent of committee chair fees may be paid in stock units in lieu of cash. These units are immediately vested. In addition to the grant of retainer stock units described above, each Director may be granted annually an additional award of stock units as the Board may determine by resolution. These stock units vest as to one-quarter of the units for every three months of service following the grant date and are fully vested on the first anniversary of the grant date. Additional units are credited to each Director on a quarterly basis to reflect dividend equivalents on the Company’s common stock. In the case of separation from service due to death or disability, all stock units shall immediately vest. Following a Director’s separation from service, or such other elected distribution date or event, the number of stock units credited to the Director’s account will be converted to an equivalent number of the Company’s common stock. Number of Units Weighted Average Grant Date Fair Value Outstanding at June 30, 2015 287,436 $ 35.48 Granted 40,323 $ 32.54 Dividend equivalents 7,184 $ — Outstanding at June 30, 2016 334,943 $ 38.64 Granted 27,285 $ 39.69 Distributed (30,022 ) $ 34.19 Dividend equivalents 6,347 $ — Outstanding at June 30, 2017 338,553 $ 42.47 Granted 21,813 $ 49.14 Distributed (35,489 ) $ 35.22 Dividend equivalents 4,869 $ — Outstanding at June 30, 2018 329,746 $ 33.05 Compensation cost is determined using the grant date fair value and charged to expense over the vesting period of one year and amounted to $1.0 million , $1.2 million and $1.2 million for the years ended June 30, 2018 , 2017 and 2016 , respectively. As of June 30, 2018 , $0.3 million of compensation cost related to director stock units remains to be recognized over a weighted average remaining life of 0.3 years. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company uses commodity forwards, interest rate swaps, forward interest rate swaps and foreign currency forwards to manage risks generally associated with commodity price, interest rate and foreign currency rate fluctuations. The following explains the various types of derivatives and includes a recap about the impact the derivative instruments had on the Company’s financial position, results of operations and cash flows. Cash Flow Hedging — Commodity forward contracts: The Company enters into commodity forward contracts to fix the price of a portion of anticipated future purchases of certain critical raw materials and energy to manage the risk of cash flow variability associated with volatile commodity prices. The commodity forward contracts have been designated as cash flow hedges. The qualifying hedge contracts are marked-to-market at each reporting date and any unrealized gains or losses are included in accumulated other comprehensive income (“AOCI”) to the extent effective, and reclassified to cost of sales in the period during which the hedged transaction affects earnings or it becomes probable that the forecasted transaction will not occur. As of June 30, 2018 , the Company had forward contracts to purchase 23.2 million pounds of certain raw materials with settlement dates through December 2023. Cash Flow Hedging — Forward interest rate swaps: Historically, the Company has entered into forward interest rate swap contracts to manage the risk of cash flow variability associated with fixed interest debt expected to be issued. The forward interest rate swaps were designated as cash flow hedges. The qualifying hedge contracts were marked-to-market at each reporting date and any unrealized gains or losses were included in AOCI to the extent effective, and reclassified to interest expense in the period during which the hedged transaction affects earnings or it becomes probable that the forecasted transaction will not occur. For the years ended June 30, 2018 , 2017 and 2016 net gains of $0.3 million , $0.3 million , $0.3 million , respectively, were recorded as a reduction to interest expense. These amounts represent the impact of previously terminated swaps which are being amortized over the remaining term of the underlying debt. Cash Flow Hedging — Foreign currency forward contracts: The Company uses foreign currency forward contracts to hedge a portion of anticipated future sales denominated in foreign currencies, principally the Euro and Pound Sterling, in order to offset the effect of changes in exchange rates. The qualifying hedge contracts are marked-to-market at each reporting date and any unrealized gains or losses are included in AOCI to the extent effective, and reclassified to net sales in the period during which the transaction affects earnings or it becomes probable that the forecasted transaction will not occur. The Company also uses foreign currency forward contracts to protect certain short-term asset positions denominated in foreign currencies against the effect of changes in exchange rates. These positions do not qualify for hedge accounting and accordingly are marked-to-market at each reporting date through charges to other income and expense. As of June 30, 2018 , the fair value of the outstanding foreign currency forwards not designated as hedging instruments and the charges to income for changes in fair value for these contracts were not material. Fair Value Hedging — Interest rate swaps: The Company uses interest rate swaps to achieve a level of floating rate debt relative to fixed rate debt. The Company has designated fixed to floating interest rate swaps as fair value hedges. Accordingly, the changes in the fair value of these instruments are immediately recorded in earnings. The mark-to-market values of both the fair value hedging instruments and the underlying debt obligations are recorded as equal and offsetting gains and losses in interest expense in the consolidated statements of income. As of June 30, 2018 and 2017 , the total notional amount of floating interest rate contracts was $150.0 million and $150.0 million , respectively. For the years ended June 30, 2018 , 2017 and 2016 , net gains of $0.4 million , $1.8 million and $2.6 million , respectively, were recorded as a reduction to interest expense. The fair value and location of outstanding derivative contracts recorded in the accompanying consolidated balance sheets were as follows as of June 30, 2018 and 2017 : June 30, 2018 Interest Rate Swaps Foreign Currency Contracts Commodity Contracts Total Derivatives Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 0.1 $ 0.4 $ 15.3 $ 15.8 Other assets — — 19.4 19.4 Total asset derivatives $ 0.1 $ 0.4 $ 34.7 $ 35.2 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ 0.1 $ — $ 0.1 Other liabilities 2.9 — 0.4 3.3 Total liability derivatives $ 2.9 $ 0.1 $ 0.4 $ 3.4 June 30, 2017 Interest Rate Swaps Foreign Currency Contracts Commodity Contracts Total Derivatives Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 0.6 $ 0.2 $ 6.4 $ 7.2 Other assets 1.6 — 5.7 7.3 Total asset derivatives $ 2.2 $ 0.2 $ 12.1 $ 14.5 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ 1.0 $ 12.1 $ 13.1 Other liabilities — — 6.0 6.0 Total liability derivatives $ — $ 1.0 $ 18.1 $ 19.1 Substantially all of the Company’s derivative contracts are subject to master netting arrangements, or similar agreements with each counterparty, which provide for the option to settle contracts on a net basis when they settle on the same day and in the same currency. In addition, these arrangements provide for a net settlement of all contracts with a given counterparty in the event that the arrangement is terminated due to the occurrence of default or a termination event. The Company presents the outstanding derivative contracts on a net basis by counterparty in the consolidated balance sheets. If the Company had chosen to present the derivative contracts on a gross basis, the total asset derivatives would have been $41.7 million and total liability derivatives would have been $9.9 million as of June 30, 2018. According to the provisions of the Company’s derivative arrangements, in the event that the fair value of outstanding derivative positions with certain counterparties exceeds certain thresholds, the Company may be required to issue cash collateral to the counterparties. As of June 30, 2018 the Company had no cash collateral held by counterparties. The Company is exposed to credit loss in the event of nonperformance by counterparties on its derivative instruments as well as credit or performance risk with respect to its customer commitments to perform. Although nonperformance is possible, the Company does not anticipate nonperformance by any of the parties. In addition, various master netting arrangements are in place with counterparties to facilitate settlements of gains and losses on these contracts. Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings or it becomes probable the forecasted transactions will not occur. The following is a summary of the gains (losses) related to cash flow hedges recognized during the years ended June 30, 2018 , 2017 and 2016 : Amount of Gain (Loss) Recognized in AOCI on Derivatives ($ in millions) 2018 2017 2016 Derivatives in Cash Flow Hedging Relationship: Commodity contracts $ 41.4 $ 9.4 $ (34.0 ) Foreign exchange contracts (0.4 ) (0.1 ) 0.7 Total $ 41.0 $ 9.3 $ (33.3 ) Location of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income ($ in millions) (Effective Portion) 2018 2017 2016 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ 3.8 $ (22.8 ) $ (44.6 ) Foreign exchange contracts Net sales (1.0 ) 0.5 0.2 Forward interest rate swaps Interest expense 0.4 0.4 0.4 Total $ 3.2 $ (21.9 ) $ (44.0 ) Location of (Loss) Gain Amount of (Loss) Gain Reclassified from AOCI into Income ($ in millions) (Ineffective Portion) 2018 2017 2016 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ (2.0 ) $ 2.0 $ 1.5 The Company estimates that $15.4 million of net derivative gains included in AOCI as of June 30, 2018 will be reclassified into earnings within the next twelve months. No significant cash flow hedges were discontinued during the year ended June 30, 2018 . The changes in AOCI associated with derivative hedging activities during the years ended June 30, 2018 , 2017 and 2016 were as follows: ($ in millions) 2018 2017 2016 Balance, beginning $ (2.3 ) $ (21.8 ) $ (28.5 ) Current period changes in fair value, net of tax 26.9 5.8 (20.8 ) Reclassification to earnings, net of tax (0.8 ) 13.7 27.5 Balance, ending $ 23.8 $ (2.3 ) $ (21.8 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In December 2017, an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (the “Act”) was enacted. The Act includes provisions that reduce the federal statutory income tax rate from 35 percent to 21 percent, create a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings (i.e. transition tax), and change certain business deductions including allowing for immediate expensing of certain qualified capital expenditures and limitation on deductions of interest expense. Given the Company’s fiscal year ends on June 30, the lower U.S. statutory federal income tax rate is a blended U.S. federal statutory rate of 28.1 percent for our fiscal year ending June 30, 2018. Income before income taxes for the Company’s domestic and foreign operations was as follows: Years Ended June 30, ($ in millions) 2018 2017 2016 Domestic $ 140.3 $ 56.0 $ 17.3 Foreign 19.9 14.2 4.2 Income before income taxes $ 160.2 $ 70.2 $ 21.5 The (benefit) provision for income taxes from continuing operations consisted of the following: Years Ended June 30, ($ in millions) 2018 2017 2016 Current: Federal $ 22.6 $ (24.5 ) $ 4.7 State 3.5 (1.1 ) 0.4 Foreign 6.7 7.2 4.3 Total current 32.8 (18.4 ) 9.4 Deferred: Federal (66.0 ) 38.7 0.1 State 4.8 3.5 0.5 Foreign 0.1 (0.6 ) 0.2 Total deferred (61.1 ) 41.6 0.8 Total income tax (benefit) expense $ (28.3 ) $ 23.2 $ 10.2 The following is a reconciliation of income taxes computed at the U.S. Federal income tax rate to the Company’s effective income tax rates: Years Ended June 30, (% of pre-tax income) 2018 2017 2016 Statutory federal income tax rate 28.1 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 2.6 2.0 2.2 Foreign tax rate differential (0.1 ) (1.5 ) 5.5 Domestic manufacturing deduction (1.5 ) (3.0 ) (7.0 ) Research and development tax credit (1.4 ) (3.9 ) (8.4 ) Law changes 0.1 0.9 (3.8 ) Increases in valuation allowances 0.8 1.1 2.1 Adjustments of prior years' income taxes 0.2 3.3 1.3 Unremitted earnings of foreign subsidiaries (0.2 ) (1.2 ) 12.7 Non-deductible goodwill impairment — — 5.1 Re-measurement of U.S. deferred taxes (49.3 ) — — Transition tax on foreign earnings 3.1 — — Other, net (0.1 ) 0.3 2.7 Effective income tax rate (17.7 )% 33.0 % 47.4 % Deferred taxes are recorded for temporary differences between the carrying amounts of assets and liabilities and their tax bases. In connection with the Act, during fiscal year 2018 the Company recorded a provisional net benefit of $78.9 million for the re-measurement of deferred tax assets and liabilities at the lower U.S. federal tax rate. Although the Company believes the net benefit recorded is a reasonable estimate of the deferred tax impact of the Act, the re-measurement of deferred tax assets and liabilities at the lower federal corporate income tax rate is provisional until such time that the underlying temporary differences are known rather than estimated. The significant components of deferred tax assets and liabilities that are recorded in the consolidated balance sheets are summarized in the table below. June 30, ($ in millions) 2018 2017 Deferred tax assets: Pensions $ 66.8 $ 139.8 Postretirement provisions 33.7 54.4 Net operating loss carryforwards 26.5 23.1 Derivatives and hedging activities — 2.4 Other 29.4 44.8 Gross deferred tax assets 156.4 264.5 Valuation allowances (23.9 ) (18.5 ) Total deferred tax assets 132.5 246.0 Deferred tax liabilities: Depreciation (235.2 ) (347.5 ) Intangible assets (11.9 ) (19.4 ) Inventories (30.5 ) (50.1 ) Derivatives and hedging activities (8.7 ) — Other (3.5 ) (6.2 ) Total deferred tax liabilities (289.8 ) (423.2 ) Deferred tax liabilities, net $ (157.3 ) $ (177.2 ) A valuation allowance is required when it is more likely than not that all or a portion of a deferred tax asset will not be realized. As of June 30, 2018, the Company had state net operating loss carryforwards of $339.9 million expiring between 2019 and 2038. A significant portion of the state net operating loss carryforwards are subject to an annual limitation that under current law is likely to limit future tax benefits to approximately $3 million . Valuation allowances increased by $5.4 million during fiscal year 2018 primarily due to the re-measurement of deferred tax assets and corresponding valuation allowances due to the Act as well as the impact of a state tax law change that will limit the Company's ability to utilize the state net operating loss carryforwards in future years. Prior to the Act, undistributed earnings of foreign subsidiaries, totaling $93.8 million were considered permanently reinvested. Upon enactment of the provisions of the Act, the Company recorded a $5.0 million accrual for the anticipated one-time mandatory tax on previously deferred foreign earnings (i.e. transition tax). The Company is still in the process of evaluating our assertion for indefinite reinvestment. The amounts recorded for the transition tax are provisional due to various components of the computation not yet finalized as of June 30, 2018, including the following significant items: (i.) the actual aggregate foreign cash position and the earnings and profits of the foreign entities as of June 30, 2018, (ii.) the interpretation and identification of cash positions as of June 30, 2018, and (iii.) computations of accumulated earnings and profits balances as of November 2, 2017 and December 31, 2017. Under the Act, the transition tax will be paid over an eight year period beginning in fiscal year 2019. The Act also established new tax provisions that become effective in future periods, including but not limited to eliminating the corporate alternative minimum tax, creating the base erosion anti-abuse tax (“BEAT”), establishing new limitations on deductible interest expense and certain executive compensation, creating a new provision designed to tax global intangible low-tax income (“GILTI”) and generally eliminating U.S. Federal income taxes on dividends from foreign subsidiaries. Regarding the new GILTI tax rules, which apply to fiscal years beginning after December 31, 2017, an accounting policy election must be made to either treat taxes due on future GILTI inclusions in U.S. taxable income as a current period expense when incurred or reflect such portion of the future GILTI inclusions in U.S. taxable income that relate to existing basis differences in the Company’s current measurement of deferred taxes. The Company’s analysis of the new GILTI rules and its impacts is currently incomplete. Accordingly, the Company has not yet made a policy election regarding the treatment of the GILTI tax. The Company does not have unrecognized tax benefits as of June 30, 2018, 2017 and 2016. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as of a component of income tax expense. All years prior to fiscal year 2013 have been settled with the Internal Revenue Service and with most significant state, local and foreign tax jurisdictions. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net consists of the following: Years Ended June 30, ($ in millions) 2018 2017 2016 Unrealized gains (losses) on company owned life insurance contracts and investments held in rabbi trusts $ 1.5 $ 1.7 $ (0.5 ) Interest income 0.3 0.3 0.2 Equity in earnings of unconsolidated subsidiaries — — 0.6 Foreign exchange (0.6 ) (0.4 ) (2.4 ) Other 0.2 1.2 — Total other income (expense), net $ 1.4 $ 2.8 $ (2.1 ) |
Segment Information, Geographic
Segment Information, Geographic and Product Data | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information, Geographic and Product Data | Segment Information, Geographic and Product Data 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, Pennsylvania and surrounding areas as well as 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 CalRAM business, and the Latrobe and Mexico distribution businesses. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics. 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 loss on divestiture of business, restructuring and asset impairment charges, 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, one customer, Arconic, Inc., accounted for approximately 12 percent , 11 percent and 13 percent of net sales for the years ended June 30, 2018, 2017 and 2016, respectively. No single customer accounted for 10 percent or more of the accounts receivable outstanding at June 30, 2018 and 2017. Segment Data Years Ended June 30, ($ in millions) 2018 2017 2016 Net Sales: Specialty Alloys Operations $ 1,803.8 $ 1,461.6 $ 1,481.0 Performance Engineered Products 429.7 366.6 358.7 Intersegment (75.8 ) (30.6 ) (26.3 ) Consolidated net sales $ 2,157.7 $ 1,797.6 $ 1,813.4 Years Ended June 30, ($ in millions) 2018 2017 2016 Operating Income: Specialty Alloys Operations $ 232.4 $ 172.3 $ 176.9 Performance Engineered Products 26.1 8.5 (5.5 ) Corporate costs (including loss on divestiture of business, restructuring and impairment charges) (66.4 ) (61.3 ) (103.0 ) Pension earnings, interest and deferrals (2.1 ) (23.8 ) (19.3 ) Intersegment (2.9 ) 1.5 2.5 Consolidated operating income $ 187.1 $ 97.2 $ 51.6 Years Ended June 30, ($ in millions) 2018 2017 2016 Depreciation and Amortization: Specialty Alloys Operations $ 93.3 $ 94.0 $ 94.4 Performance Engineered Products 20.2 20.6 21.9 Corporate 3.9 4.0 3.8 Intersegment (0.8 ) (0.8 ) (0.8 ) Consolidated depreciation and amortization $ 116.6 $ 117.8 $ 119.3 Years Ended June 30, ($ in millions) 2018 2017 2016 Capital Expenditures: Specialty Alloys Operations $ 63.6 $ 52.2 $ 67.0 Performance Engineered Products 31.6 17.0 19.8 Corporate 41.6 29.7 8.6 Intersegment (1.8 ) (0.4 ) (0.2 ) Consolidated capital expenditures $ 135.0 $ 98.5 $ 95.2 June 30, ($ in millions) 2018 2017 Total Assets: Specialty Alloys Operations $ 2,312.1 $ 2,292.1 Performance Engineered Products 513.6 434.3 Corporate 193.2 167.2 Intersegment (11.9 ) (15.5 ) Consolidated total assets $ 3,007.0 $ 2,878.1 Geographic Data Years Ended June 30, ($ in millions) 2018 2017 2016 Net Sales: (a) United States $ 1,429.4 $ 1,198.3 $ 1,243.5 Europe 383.0 349.6 321.4 Asia Pacific 174.8 127.2 129.5 Canada 65.7 47.7 44.9 Mexico 61.7 48.5 46.7 Other 43.1 26.3 27.4 Consolidated net sales $ 2,157.7 $ 1,797.6 $ 1,813.4 (a) Net sales were attributed to countries based on the location of the customer. June 30, ($ in millions) 2018 2017 Long-lived assets: United States $ 1,286.4 $ 1,290.7 Asia Pacific 15.4 15.3 Canada 6.3 5.6 Europe 3.9 4.0 Mexico 1.4 1.2 Consolidated long-lived assets $ 1,313.4 $ 1,316.8 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements - Adopted in current period In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting, which outlines new provisions intended to simplify various aspects related to accounting for share-based payments and their presentation in the financial statements. The update revised requirements in the following areas: income tax consequences, forfeitures and classification on the statement of cash flows. The Company adopted this standard in the quarter ended September 30, 2017. The standard did not have a material impact on the consolidated financial statements of the Company. The inclusion of excess tax benefits and deficiencies as a component of income tax expense will increase volatility of the provision for income taxes as the amount of excess tax benefits or deficiencies from share-based compensation awards are dependent on the stock price at the date the awards are exercised or vested. The Company does not expect the impact to be material to the Company’s consolidated results of operations; however, such determination is subject to change based on facts and circumstances at the time when awards vest or settle. The Company accounts for forfeitures of share-based awards when they occur. The Company applied the amendments related to the presentation of excess tax benefits on the consolidated statements of cash flows using a prospective transition method, and as a result, excess tax benefits related to share-based awards are reported as cash flows from operating activities. The Company applied the amendments related to the presentation of statutory tax withholding on the consolidated statements of cash flows using a retrospective transition method as required, and as a result, statutory tax withholding related to share-based awards which had been previously classified as cash flows used for operating activities has been be reclassified as cash flows used for financing activities. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments, which outlines new provisions intended to reduce the existing diversity in practice related to accounting for the cash flow and its presentation in the financial statements. ASU 2016-15 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company adopted the provisions of ASU 2016-15 in the quarter ended September 30, 2017. The adoption of ASU 2016-15 did not materially impact the Company’s consolidated statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash, which outlines that a statement of cash flows explains the change during the period in total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company adopted the provisions of ASU 2016-18 in the quarter ended September 30, 2017. The adoption of ASU 2016-18 did not materially impact the Company’s consolidated statement of cash flows. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment, which outlines updates to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU 2017-04 in the quarter ended September 30, 2017. The adoption of ASU 2017-04 did not have an impact on the Company’s financial statements. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. The amendment provides guidance on accounting for the impact of the Act and allows entities to complete the accounting under ASC 740 within a one-year measurement period from the Act enactment date. This standard is effective upon issuance. The Company will continue to assess the impact that various provisions will have on its business. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of fiscal year 2019 when the analysis is complete. Recently Issued Accounting Pronouncements - Pending Adoption In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). Topic 606, as further amended by subsequent Accounting Standard Updates, affects all aspects of an entity’s revenue recognition, including determining the measurement of revenue and the timing of when it is recognized for the transfer of goods or services to customers. Currently, the Company is in the process of finalizing the assessment phase of its evaluation. The assessment phase included conducting and evaluating the results of internal surveys of its businesses, holding revenue recognition workshops with commercial and business unit finance leadership and reviewing revenue arrangements across all businesses to initially identify a set of applicable qualitative revenue recognition changes related to the standards update. The Company also is evaluating the expanded disclosure requirements included in the guidance. Additionally, as part of the overall evaluation for implementing the guidance, the Company is identifying and preparing to implement changes to its accounting policies, practices, and internal controls over financial reporting. The Company plans to adopt the guidance in Topic 606 effective July 1, 2018 under the modified retrospective method. In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842). ASU 2016-02 improves transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. ASU 2016-02 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2016-02 on the consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory, which outlines updates to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. ASU 2016-16 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2016-16 on the consolidated financial statements. The Company's effective date for the adoption of ASU 2016-16 is July 1, 2018. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which outlines updates to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. ASU 2017-07 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2017-07 on the consolidated financial statements. The Company's effective date for the adoption of ASU 2017-07 is July 1, 2018. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities, which expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. ASU 2017-12 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2017-12 on the consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for standard tax effects resulting from the Act. ASU 2018-02 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2018-02 on the consolidated financial statements. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Reclassifications from Accumulated Other Comprehensive (Loss) Income | Reclassifications from Accumulated Other Comprehensive (Loss) Income The changes in AOCI by component, net of tax, for the years ended June 30, 2018 and 2017 were as follows: ($ in millions) (a) Cash flow hedging items Pension and other postretirement benefit plan items Unrealized losses on available-for-sale securities Foreign currency items Total Balance at June 30, 2017 $ (2.3 ) $ (299.0 ) $ (0.3 ) $ (41.5 ) $ (343.1 ) Other comprehensive income (loss) before reclassifications 26.9 69.7 — (1.4 ) 95.2 Amounts reclassified from AOCI (b) (0.8 ) 8.9 — — 8.1 Net current-period other comprehensive income (loss) 26.1 78.6 — (1.4 ) 103.3 Balance at June 30, 2018 $ 23.8 $ (220.4 ) $ (0.3 ) $ (42.9 ) $ (239.8 ) ($ in millions) (a) Cash flow hedging items Pension and other postretirement benefit plan items Unrealized losses on available-for-sale securities Foreign currency items Total Balance at June 30, 2016 $ (21.8 ) $ (344.3 ) $ (0.3 ) $ (43.5 ) $ (409.9 ) Other comprehensive income before reclassifications 5.7 22.4 — 2.0 30.1 Amounts reclassified from AOCI (b) 13.8 22.9 — — 36.7 Net current-period other comprehensive income 19.5 45.3 — 2.0 66.8 Balance at June 30, 2017 $ (2.3 ) $ (299.0 ) $ (0.3 ) $ (41.5 ) $ (343.1 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits. (b) See separate table below for further details. The following is a summary of amounts reclassified from AOCI for the years ended June 30, 2018 and 2017 : Amount Reclassified from AOCI Years Ended June 30, ($ in millions) (a) Location of gain 2018 2017 Details about AOCI Components Cash flow hedging items Commodity contracts Cost of sales $ 1.8 $ (22.8 ) Foreign exchange contracts Net sales (1.0 ) 0.5 Forward interest rate swaps Interest expense 0.4 0.4 Total before tax 1.2 (21.9 ) Tax (expense) benefit (0.4 ) 8.1 Net of tax $ 0.8 $ (13.8 ) Amortization of pension and other postretirement benefit plan items Net actuarial loss (b) $ (16.4 ) $ (41.0 ) Prior service cost (b) 3.1 4.7 Total before tax (13.3 ) (36.3 ) Tax benefit 4.4 13.4 Net of tax $ (8.9 ) $ (22.9 ) (a) Amounts in parentheses indicate debits to income/loss. (b) These AOCI components are included in the computation of net periodic benefit cost (see Note 10 for additional details). |
Supplemental Data
Supplemental Data | 12 Months Ended |
Jun. 30, 2018 | |
Supplemental Data | |
Supplemental Data | Supplemental Data The following are additional required disclosures and other material items: Years Ended June 30, ($ in millions) 2018 2017 2016 Cost Data: Repairs and maintenance costs $ 108.0 $ 99.1 $ 101.8 Cash Flow Data: Noncash investing and financing activities: Sale of equity method investment $ — $ — $ 12.6 Noncash purchases of property, equipment and software $ 16.5 $ 13.7 $ 15.1 Cash paid (received) during the year for: Interest payments, net $ 29.5 $ 27.7 $ 27.5 Income tax payments (refunds), net $ 33.7 $ (33.3 ) $ 27.9 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | SUPPLEMENTARY DATA Quarterly Financial Data (Unaudited) Quarterly sales and earnings results are normally influenced by seasonal factors. Historically, the first two fiscal quarters (three months ending September 30 and December 31) are typically the lowest principally because of annual plant vacation and maintenance shutdowns by the Company and by many of its customers. However, the timing of major changes in the general economy or the markets for certain products can alter this pattern. ($ in millions) First Second Third Fourth Results of Operations Fiscal Year 2018 Net sales $ 479.8 $ 487.8 $ 572.2 $ 618.0 Gross profit $ 85.6 $ 85.7 $ 96.0 $ 114.9 Operating income $ 41.7 $ 40.8 $ 45.2 $ 59.4 Net income $ 23.4 $ 92.1 $ 30.2 $ 42.8 Fiscal Year 2017 Net sales $ 389.0 $ 427.4 $ 473.6 $ 507.7 Gross profit $ 46.0 $ 62.5 $ 83.1 $ 92.7 Operating income $ 1.4 $ 15.4 $ 35.8 $ 44.6 Net income (loss) $ (6.2 ) $ 7.0 $ 20.7 $ 25.5 During the quarter ended December 31, 2017, the Company recorded an income tax benefit. See Note 17, Income Taxes to Notes to Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data”. During the quarter ended June 30, 2017, the Company recorded a loss on divestiture of business. See Note 2, Acquisitions and Divestiture to Notes to Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data”. (per share amount) First Quarter Second Quarter Third Quarter Fourth Quarter Earnings (Loss) per common share Fiscal Year 2018 Basic earnings $ 0.49 $ 1.93 $ 0.63 $ 0.90 Diluted earnings $ 0.49 $ 1.92 $ 0.63 $ 0.88 Fiscal Year 2017 Basic earnings $ (0.13 ) $ 0.15 $ 0.44 $ 0.54 Diluted earnings $ (0.13 ) $ 0.15 $ 0.44 $ 0.54 (shares in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Weighted average common shares outstanding Fiscal Year 2018 Basic 47.1 47.2 47.2 47.4 Diluted 47.3 47.6 47.7 48.0 Fiscal Year 2017 Basic 46.9 47.0 47.0 47.1 Diluted 46.9 47.1 47.1 47.1 |
SCHEDULE II. VALUATION AND QUAL
SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jun. 30, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS ($ in millions) Column A Column B Column C Additions Column D Column E Description Balance at Beginning of Period Charged to Costs & Expenses Charged to Other Accounts Deductions Balance at End of Period Year Ended June 30, 2018 Allowance for doubtful accounts receivable $ 2.6 $ 0.1 $ (0.1 ) $ — $ 2.6 Deferred tax valuation allowance $ 18.5 $ 4.9 $ 0.5 $ — $ 23.9 Year Ended June 30, 2017 Allowance for doubtful accounts receivable $ 4.1 $ (1.0 ) $ — $ (0.5 ) $ 2.6 Deferred tax valuation allowance $ 17.7 $ 0.8 $ — $ — $ 18.5 Year Ended June 30, 2016 Allowance for doubtful accounts receivable $ 3.8 $ 1.2 $ — $ (0.9 ) $ 4.1 Deferred tax valuation allowance $ 17.5 $ 0.2 $ — $ — $ 17.7 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. All significant intercompany accounts and transactions are eliminated. Investments in companies in which the Company exercises significant influence, but which it does not control (generally a 20 to 50 percent ownership interest), are accounted for by the equity method of accounting and the Company’s share of their income or loss is included in other income(expense), net in the consolidated statements of income. |
Revenue Recognition | Revenue Recognition Revenue, net of related discounts, rebates, returns and allowances of $26.5 million , $23.8 million and $29.8 million for the years ended June 30, 2018 , 2017 and 2016 , respectively, is recognized when persuasive evidence of arrangement exists, title and risk of loss has transferred to the customer, collectability is reasonably assured and pricing is fixed and determinable. These criteria are generally met upon shipment or delivery of the product based on the applicable shipping terms. Shipping terms may vary for products shipped outside the United States depending on the mode of transportation, the country where the material is shipped and any agreements made with the customers. |
Freight and Handling Fees and Costs | Freight and Handling Fees and Costs Freight and handling costs billed separately to customers are included as part of net sales, and freight and handling costs expensed are included as part of cost of sales on the consolidated statements of income. |
Research and Development | Research and Development Research and development expenditures, which amounted to $19.3 million , $16.9 million and $16.3 million in fiscal years 2018 , 2017 and 2016 , respectively, are expensed as incurred and are generally reported in cost of sales in the consolidated statements of income. The research and development expenditures consist principally of salaries and benefits, building costs, utilities and administrative expenses. Substantially all development costs are related to developing new products or designing significant improvements to existing products or processes. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of highly liquid instruments with original maturities of three months or less. Cash equivalents are stated at cost, which approximates market. |
Accounts Receivable | Accounts Receivable Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of outstanding amounts. Trade credit is extended based upon periodic evaluation of each customer’s ability to perform its obligations. The Company determines accounts receivable allowances based on an aging of accounts and a review of specific accounts identified as collection risks. The Company does not require collateral to secure accounts receivable. |
Inventories | Inventories Inventories are valued at the lower of cost or market. Cost for inventories is principally determined by the LIFO method. The Company also uses the FIFO and average cost methods. |
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation Fixed assets are stated at historical cost less accumulated depreciation. Depreciation for financial reporting purposes is computed by the straight-line method over the estimated useful lives of the assets. Upon disposal, assets and related depreciation are removed from the accounts and the differences between the net amounts and proceeds from disposal are generally included in cost of goods sold in the consolidated statements of income. |
Computer Software and Amortization | Computer Software and Amortization Computer software is included in other assets on the consolidated balance sheets, and is amortized for financial reporting purposes on a straight-line basis over the respective estimated useful lives ranging from 3 to 7 years. |
Goodwill | Goodwill Goodwill, net of accumulated impairment losses, representing the excess of the cost over the net tangible and identifiable intangible assets of acquired businesses, is stated at cost. Goodwill is not amortized but instead is annually tested for impairment as of June 30, or more frequently if events or circumstances indicate that the carrying amount of goodwill may be impaired. Such events or circumstances include a decline in general economic conditions, adverse changes in the industry and markets, poor financial performance effecting earnings and cash flows and a trend of negative or declining cash flows over multiple periods. Potential impairment is identified by comparing the fair value of a reporting unit to its carrying value, including goodwill. The fair value is estimated using discounted cash flows and the use of market multiples valuation techniques. These valuation techniques require the use of estimates and assumptions related to projected operating results, capital expenditures and working capital levels as well as the cost of capital. If the carrying value of the reporting unit exceeds its fair value, any impairment loss is measured by comparing the carrying value of the reporting unit’s goodwill to its implied fair value. For purposes of performing Step 1 of goodwill impairment testing, the Company uses certain nonrecurring fair value measurements using significant unobservable inputs (Level 3). Fair value of each reporting unit for purposes of the goodwill impairment test is based on a weighting of an income approach and a market approach. Under the income approach, fair value is determined based on a discounted cash flow analysis that uses estimates of cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. Under the market approach, a market-based value is derived by relating multiples for earnings and cash flow measures for a group of comparable public companies to the same measure for each reporting unit to estimate fair value. The assumptions used by the Company to determine fair value of the reporting units are similar to those that would be used by market participants performing valuations. |
Intangible assets | Intangible assets The costs of intangible assets, consisting principally of trademarks, trade names, non-compete arrangements, technology and customer relationships are amortized on a straight-line basis over the estimated useful lives ranging from 5 to 30 years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including property, plant and equipment and intangible assets, subject to amortization are reviewed for impairment and written down to fair value whenever events or changes in circumstances indicate that the carrying value may not be recoverable through future undiscounted cash flows. The amount of the impairment loss is the excess of the carrying amount of the impaired assets over the fair value of the assets based upon discounted future cash flows. |
Environmental Expenditures | Environmental Expenditures Environmental expenditures that pertain to current operations or to future revenues are expensed or capitalized consistent with the Company’s capitalization policy for property, plant and equipment. Expenditures that result from the remediation of an existing condition caused by past operations and that do not contribute to current or future revenues are expensed. Liabilities are recognized for remedial activities when the remediation is probable and the cost can be reasonably estimated. Most estimated liabilities are not discounted to present value due to the uncertainty as to the timing and duration of expected costs. |
Derivative Financial Instruments | Derivative Financial Instruments All derivative financial instruments are recorded on the balance sheet at their fair value and changes in fair value are recorded each period in current earnings or other comprehensive income. The Company enters into derivative financial instruments to hedge certain anticipated transactions, firm commitments or assets and liabilities denominated in foreign currencies. In addition, the Company utilizes interest rate swaps to convert fixed rate debt to floating rate. At least quarterly, the Company determines hedge effectiveness utilizing regression analysis for measuring the probable high correlation of the expected future cash flows of the hedged item and the derivative hedging instrument. The ineffective portion of hedges is immediately recorded in the consolidated statements of income. If the hedging relationship ceases to be highly effective or it becomes probable that an expected transaction will no longer occur, future gains or losses on the derivative instrument are recorded in the consolidated statements of income. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of most international operations are translated into U.S. dollars at exchange rates in effect at year-end, and their income statements are translated at the average monthly exchange rates prevailing during the year. The resulting translation gains and losses are recorded each period as a component of accumulated other comprehensive income (loss) until the international entity is sold or liquidated. Gains and losses from transactions denominated in foreign currencies are reported in other income (expense), net in the consolidated statements of income. |
Income Taxes | Income Taxes Deferred income taxes are recognized by applying enacted statutory tax rates, applicable to future years, to temporary differences between the tax basis and financial statement carrying values of the Company’s assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets to amounts that are more likely than not to be realized. Significant judgments, estimates and assumptions are required in determining tax return reporting positions and in calculating provisions for income tax, which are based on interpretations of tax regulations and accounting pronouncements. Liabilities are established for uncertain tax positions when it is more likely than not that such positions, if challenged, would not be sustained upon review by taxing authorities. These liabilities are re-evaluated as tax regulations and facts and circumstances change, such as the closing of a tax audit or the expiration of the statute of limitations for a specific exposure. |
Earnings per Share | Earnings per Share The Company calculates basic and diluted earnings per share using the two class method. Under the two class method, earnings are allocated to common stock and participating securities (restricted stock units that receive non-forfeitable dividends) according to their participation rights in dividends and undistributed earnings. The earnings available to each class of stock are divided by the weighted average number of shares for the period in each class. Diluted earnings per share assume the issuance of common stock for all potentially dilutive share equivalents outstanding. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and cash equivalents, investments in marketable securities and trade receivables. Investment and cash management policies have been implemented that limit deposit concentrations and limit investments to investment grade securities. The risk with respect to trade receivables is mitigated by monitoring payment terms and periodic credit evaluations we perform on our customers, the short duration of our payment terms and by the diversification of our customer base. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Reclassification | Reclassifications Certain amounts in the consolidated financial statement for prior years have been reclassified to conform to the fiscal year 2018 presentation. |
Fair Value Measurement | The fair value hierarchy has three levels based on the inputs used to determine fair value. Level 1 refers to quoted prices in active markets for identical assets or liabilities. Level 2 refers to observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 refers to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
Fair Value of Financial Instruments | The Company’s derivative financial instruments consist of commodity forward contracts, foreign currency forward contracts, interest rate swaps and forward interest rate swaps. These instruments are measured at fair value using the market method valuation technique. The inputs to this technique utilize information related to foreign exchange rates, commodity prices and interest rates published by third party leading financial news and data providers. This is observable data; however, the valuation of these instruments is not based on actual transactions for the same instruments and, as such, they are classified as Level 2. The Company’s use of derivatives and hedging policies are more fully discussed in Note 16 . The Company has currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with accounting principles generally accepted in the United States of America. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements - Adopted in current period In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting, which outlines new provisions intended to simplify various aspects related to accounting for share-based payments and their presentation in the financial statements. The update revised requirements in the following areas: income tax consequences, forfeitures and classification on the statement of cash flows. The Company adopted this standard in the quarter ended September 30, 2017. The standard did not have a material impact on the consolidated financial statements of the Company. The inclusion of excess tax benefits and deficiencies as a component of income tax expense will increase volatility of the provision for income taxes as the amount of excess tax benefits or deficiencies from share-based compensation awards are dependent on the stock price at the date the awards are exercised or vested. The Company does not expect the impact to be material to the Company’s consolidated results of operations; however, such determination is subject to change based on facts and circumstances at the time when awards vest or settle. The Company accounts for forfeitures of share-based awards when they occur. The Company applied the amendments related to the presentation of excess tax benefits on the consolidated statements of cash flows using a prospective transition method, and as a result, excess tax benefits related to share-based awards are reported as cash flows from operating activities. The Company applied the amendments related to the presentation of statutory tax withholding on the consolidated statements of cash flows using a retrospective transition method as required, and as a result, statutory tax withholding related to share-based awards which had been previously classified as cash flows used for operating activities has been be reclassified as cash flows used for financing activities. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments, which outlines new provisions intended to reduce the existing diversity in practice related to accounting for the cash flow and its presentation in the financial statements. ASU 2016-15 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company adopted the provisions of ASU 2016-15 in the quarter ended September 30, 2017. The adoption of ASU 2016-15 did not materially impact the Company’s consolidated statement of cash flows. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash, which outlines that a statement of cash flows explains the change during the period in total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company adopted the provisions of ASU 2016-18 in the quarter ended September 30, 2017. The adoption of ASU 2016-18 did not materially impact the Company’s consolidated statement of cash flows. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment, which outlines updates to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU 2017-04 in the quarter ended September 30, 2017. The adoption of ASU 2017-04 did not have an impact on the Company’s financial statements. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740) - Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. The amendment provides guidance on accounting for the impact of the Act and allows entities to complete the accounting under ASC 740 within a one-year measurement period from the Act enactment date. This standard is effective upon issuance. The Company will continue to assess the impact that various provisions will have on its business. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of fiscal year 2019 when the analysis is complete. Recently Issued Accounting Pronouncements - Pending Adoption In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). Topic 606, as further amended by subsequent Accounting Standard Updates, affects all aspects of an entity’s revenue recognition, including determining the measurement of revenue and the timing of when it is recognized for the transfer of goods or services to customers. Currently, the Company is in the process of finalizing the assessment phase of its evaluation. The assessment phase included conducting and evaluating the results of internal surveys of its businesses, holding revenue recognition workshops with commercial and business unit finance leadership and reviewing revenue arrangements across all businesses to initially identify a set of applicable qualitative revenue recognition changes related to the standards update. The Company also is evaluating the expanded disclosure requirements included in the guidance. Additionally, as part of the overall evaluation for implementing the guidance, the Company is identifying and preparing to implement changes to its accounting policies, practices, and internal controls over financial reporting. The Company plans to adopt the guidance in Topic 606 effective July 1, 2018 under the modified retrospective method. In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842). ASU 2016-02 improves transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. ASU 2016-02 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2016-02 on the consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory, which outlines updates to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. ASU 2016-16 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2016-16 on the consolidated financial statements. The Company's effective date for the adoption of ASU 2016-16 is July 1, 2018. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which outlines updates to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. ASU 2017-07 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2017-07 on the consolidated financial statements. The Company's effective date for the adoption of ASU 2017-07 is July 1, 2018. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities, which expands and refines hedge accounting for both financial and non-financial risk components, aligns the recognition and presentation of the effects of hedging instruments and hedge items in the financial statements, and includes certain targeted improvements to ease the application of current guidance related to the assessment of hedge effectiveness. ASU 2017-12 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2017-12 on the consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income to retained earnings for standard tax effects resulting from the Act. ASU 2018-02 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company is evaluating the impact of the adoption of ASU 2018-02 on the consolidated financial statements. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of calculations of basic and diluted earnings from continuing operations per common share | The calculations of basic and diluted earnings per common share for the years ended June 30, 2018 , 2017 and 2016 were as follows: Years Ended June 30, (in millions, except per share data) 2018 2017 2016 Net income $ 188.5 $ 47.0 $ 11.3 Less: earnings and dividends allocated to participating securities (1.7 ) (0.3 ) (0.1 ) Earnings available for common shareholders used in calculation of basic earnings per share $ 186.8 $ 46.7 $ 11.2 Weighted average number of common shares outstanding, basic 47.2 47.0 48.1 Basic earnings per common share $ 3.96 $ 0.99 $ 0.23 Net income $ 188.5 $ 47.0 $ 11.3 Less: earnings and dividends allocated to participating securities (1.7 ) (0.3 ) (0.1 ) Earnings available for common shareholders used in calculation of diluted earnings per share $ 186.8 $ 46.7 $ 11.2 Weighted average number of common shares outstanding, basic 47.2 47.0 48.1 Effect of shares issuable under share-based compensation plans 0.4 0.1 0.1 Weighted average number of common shares outstanding, diluted 47.6 47.1 48.2 Diluted earnings per common share $ 3.92 $ 0.99 $ 0.23 |
Schedule of awards issued under share-based compensation plans excluded from the calculations of diluted earnings per share | The following awards issued under share-based compensation plans were excluded from the calculations of diluted earnings per share above because their effects were anti-dilutive: Years Ended June 30, (in millions) 2018 2017 2016 Stock options 0.7 1.9 1.5 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following components at June 30, 2018 and 2017 : June 30, ($ in millions) 2018 2017 Raw materials and supplies $ 157.5 $ 152.8 Work in process 372.5 365.6 Finished and purchased products 159.2 172.0 Total inventory $ 689.2 $ 690.4 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment | Property, plant and equipment consisted of the following components at June 30, 2018 and 2017 : June 30, ($ in millions) 2018 2017 Land $ 34.8 $ 34.1 Buildings and building equipment 500.0 495.7 Machinery and equipment 2,129.0 2,082.4 Construction in progress 83.6 56.3 Total at cost 2,747.4 2,668.5 Less: accumulated depreciation and amortization 1,434.0 1,351.7 Total property, plant, and equipment $ 1,313.4 $ 1,316.8 |
Schedule of estimated useful lives of depreciable assets | The estimated useful lives of depreciable assets are as follows: Asset Category Useful Life Buildings and building equipment 10 – 45 Machinery and equipment 3 – 30 |
Goodwill and Other Intangible38
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in carrying amount of goodwill by reportable segment | The changes in the carrying amount of goodwill by reportable segment for fiscal years 2018 and 2017 were as follows: ($ in millions) June 30, 2016 Acquisition June 30, 2017 Acquisition June 30, 2018 Goodwill $ 292.0 $ 18.6 $ 310.6 $ 5.3 $ 315.9 Accumulated impairment losses (47.2 ) — (47.2 ) — (47.2 ) Total goodwill $ 244.8 $ 18.6 $ 263.4 $ 5.3 $ 268.7 Specialty Alloys Operations $ 195.5 $ — $ 195.5 $ — $ 195.5 Performance Engineered Products 49.3 18.6 67.9 5.3 73.2 Total goodwill $ 244.8 $ 18.6 $ 263.4 $ 5.3 $ 268.7 |
Schedule of other intangible assets, net | June 30, 2018 June 30, 2017 ($ in millions) Useful Life Gross Accumulated Net Carrying Gross Accumulated Net Carrying Trademarks and trade names 15 - 30 $ 33.5 $ (23.2 ) $ 10.3 $ 33.5 $ (21.9 ) $ 11.6 Customer relationships 10 - 15 76.9 (30.8 ) 46.1 73.3 (25.8 ) 47.5 Non-compete agreements 5 0.2 (0.1 ) 0.1 0.2 — 0.2 Technology 15 7.3 (0.5 ) 6.8 5.7 (0.1 ) 5.6 Total $ 117.9 $ (54.6 ) $ 63.3 $ 112.7 $ (47.8 ) $ 64.9 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following as of June 30, 2018 and 2017 : June 30, ($ in millions) 2018 2017 Accrued compensation and benefits $ 83.3 $ 59.1 Accrued postretirement benefits 15.4 15.5 Accrued interest expense 10.4 11.2 Deferred revenue 10.4 9.8 Accrued pension liabilities 3.3 3.3 Accrued income taxes 1.4 5.1 Derivative financial instruments — 13.1 Other 24.4 22.8 Total accrued liabilities $ 148.6 $ 139.9 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt outstanding | Long-term debt outstanding as of June 30, 2018 and 2017 consisted of the following: June 30, ($ in millions) 2018 2017 Medium-term notes, Series B at 6.97% to 7.10% due from April 2018 to May 2018 (face value of $0.0 and $55.0 million at June 30, 2018 and 2017, respectively) $ — $ 55.0 Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at June 30, 2018 and 2017) 246.6 251.2 Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at June 30, 2018 and 2017) 299.1 298.8 Total 545.7 605.0 Less: amounts due within one year — (55.0 ) Long-term debt, net of current portion $ 545.7 $ 550.0 |
Pension and Other Postretirem41
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of reconciliation of benefit obligations, plan assets and funded status of the plans | The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans: Pension Plans Other Postretirement Plans ($ in millions) 2018 2017 2018 2017 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 1,369.1 $ 1,404.4 $ 255.1 $ 246.0 Service cost 9.5 20.5 2.6 3.6 Interest cost 52.1 50.3 9.5 9.2 Benefits paid (89.8 ) (92.0 ) (13.0 ) (12.7 ) Actuarial (gains) loss (76.6 ) 39.3 (12.7 ) (1.7 ) Special termination benefits 0.2 0.6 — — Curtailment gain — (72.6 ) — — Plan amendments — 18.6 — 10.7 Projected benefit obligation at end of year 1,264.5 1,369.1 241.5 255.1 Change in plan assets: Fair value of plan assets at beginning of year 987.6 885.1 117.0 115.6 Actual return 64.7 91.1 10.6 10.9 Benefits paid (89.8 ) (92.0 ) (13.0 ) (12.7 ) Contributions 10.0 103.4 3.3 3.2 Fair value of plan assets at end of year 972.5 987.6 117.9 117.0 Funded status of the plans $ (292.0 ) $ (381.5 ) $ (123.6 ) $ (138.1 ) Amounts recognized in the consolidated balance sheets: Other assets - noncurrent $ 0.1 $ 0.1 $ — $ — Accrued liabilities - current (3.3 ) (3.3 ) (15.4 ) (15.5 ) Accrued pension liabilities - noncurrent (288.8 ) (378.3 ) — — Accrued postretirement benefits - noncurrent — — (108.2 ) (122.6 ) $ (292.0 ) $ (381.5 ) $ (123.6 ) $ (138.1 ) |
Schedule of amounts recognized in the consolidated balance sheets | Pension Plans Other Postretirement Plans ($ in millions) 2018 2017 2018 2017 Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 362.1 $ 451.3 $ 32.9 $ 52.2 Prior service cost (credit) 16.2 18.3 (23.1 ) (28.2 ) Total $ 378.3 $ 469.6 $ 9.8 $ 24.0 Other changes in plan assets and benefit obligations recognized in other comprehensive loss consist of: Net actuarial gain $ (75.0 ) $ (59.1 ) $ (16.3 ) $ (5.7 ) Amortization of net loss (13.5 ) (37.8 ) (2.9 ) (3.2 ) Prior service cost — 18.6 — 10.7 Amortization of prior service (cost) benefit (2.1 ) (1.8 ) 5.2 6.5 Total, before tax effect $ (90.6 ) $ (80.1 ) $ (14.0 ) $ 8.3 Additional information: Accumulated benefit obligation for all pension plans $ 1,257.8 $ 1,362.8 N/A N/A |
Schedule of amounts recognized in the accumulated other comprehensive loss | The following is additional information related to plans with projected benefit obligations in excess of plan assets as of June 30, 2018 and 2017 : Pension Plans Other Postretirement Plans ($ in millions) 2018 2017 2018 2017 Projected benefit obligation $ 1,264.4 $ 1,369.0 $ 241.5 $ 255.1 Fair value of plan assets $ 972.4 $ 987.4 $ 117.9 $ 117.0 |
Schedule of projected benefit obligations in excess of plan assets | The following additional information is for plans with accumulated benefit obligations in excess of plan assets as of June 30, 2018 and 2017 : Pension Plans Other Postretirement Plans ($ in millions) 2018 2017 2018 2017 Accumulated benefit obligation $ 1,257.7 $ 1,362.7 $ 241.5 $ 255.1 Fair value of plan assets $ 972.4 $ 987.4 $ 117.9 $ 117.0 |
Schedule of accumulated benefit obligations in excess of plan assets | The components of the net periodic benefit cost related to the Company’s pension and other postretirement benefits for the years ended June 30, 2018 , 2017 and 2016 are as follows: Pension Plans Other Postretirement Plans ($ in millions) 2018 2017 2016 2018 2017 2016 Service cost $ 9.5 $ 20.5 $ 31.2 $ 2.6 $ 3.6 $ 3.3 Interest cost 52.1 50.3 58.0 9.5 9.2 10.4 Expected return on plan assets (65.9 ) (65.1 ) (66.1 ) (6.9 ) (6.9 ) (7.0 ) Amortization of net loss 13.5 37.8 27.4 2.9 3.2 2.7 Amortization of prior service cost (benefit) 2.1 1.8 0.4 (5.2 ) (6.5 ) (6.5 ) Curtailment loss — 0.5 — — — — Net periodic benefit costs $ 11.3 $ 45.8 $ 50.9 $ 2.9 $ 2.6 $ 2.9 |
Schedule of components of the net periodic benefit cost | Weighted-average assumptions used to determine benefit obligations at fiscal year end Pension Plans Other Postretirement Plans 2018 2017 2018 2017 Discount rate 4.32 % 3.92 % 4.32 % 3.89 % Rate of compensation increase 3.44 % 3.50 % N/A N/A |
Schedule of weighted-average assumptions used to determine benefit obligations and net periodic benefit cost | Weighted-average assumptions used to determine net periodic benefit cost for the fiscal year Pension Plans Other Postretirement Plans 2018 2017 2016 2018 2017 2016 Discount rate 3.92 % 3.91 % 4.50 % 3.89 % 3.86 % 4.50 % Expected long-term rate of return on plan assets 6.87 % 6.88 % 6.92 % 6.25 % 6.25 % 6.25 % Long-term rate of compensation increase 3.44 % 3.50 % 3.49 % N/A N/A N/A |
Schedule of expected health care cost trend rates | The following table shows the expected health care rate increase and the future rate and time at which it is expected to remain constant: June 30, 2018 2017 Assumed health care cost trend rate 6.50 % 7.00 % Rate to which the cost trend rate is assumed to decline and remain (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2022 2022 |
Schedule of amounts in other comprehensive loss that are expected to be recognized as components of net periodic benefit cost | Amounts in other comprehensive loss (gain) that are expected to be recognized as components of net periodic benefit cost in the year ended June 30, 2019 are: ($ in millions) Pension Plans Other Postretirement Plans Total Amortization of prior service cost (benefit) $ 2.1 $ (5.2 ) $ (3.1 ) Amortization of net actuarial loss 10.4 1.7 12.1 Amortization of accumulated other comprehensive loss (gain) $ 12.5 $ (3.5 ) $ 9.0 |
Schedule of weighted-average asset allocations by asset category | The Company’s U.S. pension plans’ weighted-average asset allocations at June 30, 2018 and 2017 , by asset category are as follows: 2018 2017 Equity securities 55.7 % 55.0 % Fixed income securities 44.3 45.0 Total 100.0 % 100.0 % |
Schedule of fair values of pension plan by assets category | The fair values of the Company’s pension plan assets as of June 30, 2018 and 2017 , by asset category and by the levels of inputs used to determine fair value were as follows: June 30, 2018 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Short-term investments $ 2.5 $ 14.6 $ — $ 17.1 Domestic and international equities 156.4 — — 156.4 Commingled funds — — 365.3 365.3 Limited partnerships — — 43.3 43.3 Government agency bonds 3.5 151.6 — 155.1 Corporate bonds — 226.3 — 226.3 Mutual funds — — 1.8 1.8 Mortgage/asset backed securities and other — 7.2 — 7.2 $ 162.4 $ 399.7 $ 410.4 $ 972.5 June 30, 2017 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Short-term investments $ 9.4 $ 14.6 $ — $ 24.0 Domestic and international equities 148.3 — — 148.3 Commingled funds — — 376.6 376.6 Limited partnerships — — 42.3 42.3 Government agency bonds 3.4 151.0 — 154.4 Corporate bonds — 236.2 — 236.2 Mutual funds — — 1.8 1.8 Mortgage/asset backed securities and other — 4.0 — 4.0 $ 161.1 $ 405.8 $ 420.7 $ 987.6 |
Schedule of fair values of other postretirement benefit plans by asset category | The fair values of the Company’s other postretirement benefit plans as of June 30, 2018 and 2017 , by asset category and by the level of inputs used to determine fair value, were as follows: June 30, 2018 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Commingled fund $ — $ — $ 80.3 $ 80.3 Short-term investments — 23.0 — 23.0 Government agency bonds — 8.7 — 8.7 Corporate bonds and other — 5.4 — 5.4 Mortgage backed securities — 0.5 — 0.5 $ — $ 37.6 $ 80.3 $ 117.9 June 30, 2017 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Commingled fund $ — $ — $ 73.0 $ 73.0 Short-term investments — 22.4 — 22.4 Government agency bonds — 12.2 — 12.2 Corporate bonds and other — 8.2 — 8.2 Mortgage backed securities — 1.2 — 1.2 $ — $ 44.0 $ 73.0 $ 117.0 |
Schedule of estimated future benefit payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid. Pension benefits are currently paid from plan assets and other benefits are currently paid from corporate assets. ($ in millions) Pension Other 2019 $ 83.8 $ 15.4 2020 $ 84.6 $ 15.4 2021 $ 85.3 $ 15.4 2022 $ 85.9 $ 15.4 2023 $ 86.3 $ 15.3 2024-2028 $ 423.7 $ 74.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities measured on a recurring basis | The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: June 30, 2018 Fair Value Measurements ($ in millions) Level 2 Total Assets: Marketable securities +C5 Municipal auction rate securities $ 2.9 $ 2.9 Derivative financial instruments 35.2 35.2 Total assets $ 38.1 $ 38.1 Liabilities: Derivative financial instruments $ 3.4 $ 3.4 June 30, 2017 Fair Value Measurements ($ in millions) Level 2 Total Assets: Marketable securities Municipal auction rate securities $ 3.4 $ 3.4 Derivative financial instruments 14.5 14.5 Total assets $ 17.9 $ 17.9 Liabilities: Derivative financial instruments $ 19.1 $ 19.1 |
Schedule of carrying amounts and estimated fair values of financial instruments not recorded at fair value in the financial statements | The carrying amounts and estimated fair values of the Company’s financial instruments not recorded at fair value in the financial statements were as follows: June 30, 2018 June 30, 2017 ($ in millions) Carrying Fair Carrying Fair Long-term debt, including current portion $ 545.7 $ 558.3 $ 605.0 $ 622.5 Company-owned life insurance $ 16.4 $ 16.4 $ 15.9 $ 15.9 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of weighted-average assumptions of fair value of stock options | The fair value of stock options awarded in fiscal years 2018 , 2017 and 2016 was estimated on the date of each grant using a Black-Scholes option pricing model with the following weighted-average assumptions: Years Ended June 30, 2018 2017 2016 Expected volatility 35 % 37 % 33 % Dividend yield 1.8 % 1.8 % 2.0 % Risk-free interest rate 1.8 % 1.1 % 1.5 % Expected term (in years) 5.0 5.0 5.0 |
Summary of stock option activity | Number of Weighted Weighted Aggregate Outstanding at June 30, 2015 1,507,878 $ 44.61 Granted 277,769 $ 36.31 Exercised (19,627 ) $ 25.12 Forfeited (64,518 ) $ 47.98 Outstanding at June 30, 2016 1,701,502 $ 43.35 Granted 907,141 $ 38.98 Exercised (95,289 ) $ 23.21 Forfeited (80,926 ) $ 44.35 Expired (40,000 ) $ 55.12 Outstanding at June 30, 2017 2,392,428 $ 42.27 Granted 252,545 $ 41.27 Exercised (362,571 ) $ 35.70 Forfeited (25,915 ) $ 45.27 Expired (33,226 ) $ 63.12 Outstanding at June 30, 2018 2,223,261 $ 42.88 6.9 years $ 22.3 Exercisable at June 30, 2018 1,135,224 $ 46.26 5.6 years $ 8.0 |
Summary of outstanding and exercisable options by exercise price range | Exercise Price Number Outstanding at June 30, 2018 Weighted Weighted Number Exercisable at June 30, 2018 Weighted $14.17 - $20.00 25,407 1.1 $ 17.30 25,407 $ 17.30 $20.01 - $30.00 8,267 0.3 $ 22.39 8,267 $ 22.39 $30.01 - $40.00 1,043,789 7.7 $ 38.42 202,240 $ 36.88 $40.01 - $50.00 548,986 7.4 $ 41.91 302,498 $ 42.41 $50.01 - $63.54 596,812 5.5 $ 52.95 596,812 $ 52.95 2,223,261 $ 42.88 1,135,224 $ 46.26 |
Summary of nonvested stock awards activity | Number of Awards Weighted Average Grant Date Fair Value Restricted Balance at June 30, 2015 127,409 $ 45.09 Time-based granted 130,742 $ 35.96 Performance-based granted 49,529 $ 31.11 Vested (36,057 ) $ 48.85 Forfeited (83,154 ) $ 42.14 Restricted Balance at June 30, 2016 188,469 $ 35.69 Time-based granted 231,195 $ 38.82 Performance-based granted 55,478 $ 36.18 Vested (44,873 ) $ 34.24 Forfeited (37,792 ) $ 38.80 Restricted Balance at June 30, 2017 392,477 $ 37.47 Time-based granted 138,718 $ 41.49 Performance-based granted 124,432 $ 50.99 Vested (62,215 ) $ 35.35 Forfeited (21,384 ) $ 39.48 Restricted Balance at June 30, 2018 572,028 $ 41.54 |
Summary Of Director stock units activity | Number of Units Weighted Average Grant Date Fair Value Outstanding at June 30, 2015 287,436 $ 35.48 Granted 40,323 $ 32.54 Dividend equivalents 7,184 $ — Outstanding at June 30, 2016 334,943 $ 38.64 Granted 27,285 $ 39.69 Distributed (30,022 ) $ 34.19 Dividend equivalents 6,347 $ — Outstanding at June 30, 2017 338,553 $ 42.47 Granted 21,813 $ 49.14 Distributed (35,489 ) $ 35.22 Dividend equivalents 4,869 $ — Outstanding at June 30, 2018 329,746 $ 33.05 |
Derivatives and Hedging Activ44
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value and location of outstanding derivative contracts recorded in consolidated balance sheets | The fair value and location of outstanding derivative contracts recorded in the accompanying consolidated balance sheets were as follows as of June 30, 2018 and 2017 : June 30, 2018 Interest Rate Swaps Foreign Currency Contracts Commodity Contracts Total Derivatives Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 0.1 $ 0.4 $ 15.3 $ 15.8 Other assets — — 19.4 19.4 Total asset derivatives $ 0.1 $ 0.4 $ 34.7 $ 35.2 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ 0.1 $ — $ 0.1 Other liabilities 2.9 — 0.4 3.3 Total liability derivatives $ 2.9 $ 0.1 $ 0.4 $ 3.4 June 30, 2017 Interest Rate Swaps Foreign Currency Contracts Commodity Contracts Total Derivatives Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 0.6 $ 0.2 $ 6.4 $ 7.2 Other assets 1.6 — 5.7 7.3 Total asset derivatives $ 2.2 $ 0.2 $ 12.1 $ 14.5 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ 1.0 $ 12.1 $ 13.1 Other liabilities — — 6.0 6.0 Total liability derivatives $ — $ 1.0 $ 18.1 $ 19.1 |
Summary of the gains (losses) related to cash flow hedges | The following is a summary of the gains (losses) related to cash flow hedges recognized during the years ended June 30, 2018 , 2017 and 2016 : Amount of Gain (Loss) Recognized in AOCI on Derivatives ($ in millions) 2018 2017 2016 Derivatives in Cash Flow Hedging Relationship: Commodity contracts $ 41.4 $ 9.4 $ (34.0 ) Foreign exchange contracts (0.4 ) (0.1 ) 0.7 Total $ 41.0 $ 9.3 $ (33.3 ) Location of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income ($ in millions) (Effective Portion) 2018 2017 2016 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ 3.8 $ (22.8 ) $ (44.6 ) Foreign exchange contracts Net sales (1.0 ) 0.5 0.2 Forward interest rate swaps Interest expense 0.4 0.4 0.4 Total $ 3.2 $ (21.9 ) $ (44.0 ) Location of (Loss) Gain Amount of (Loss) Gain Reclassified from AOCI into Income ($ in millions) (Ineffective Portion) 2018 2017 2016 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ (2.0 ) $ 2.0 $ 1.5 |
Schedule of changes in AOCI associated with derivative hedging activities | The changes in AOCI associated with derivative hedging activities during the years ended June 30, 2018 , 2017 and 2016 were as follows: ($ in millions) 2018 2017 2016 Balance, beginning $ (2.3 ) $ (21.8 ) $ (28.5 ) Current period changes in fair value, net of tax 26.9 5.8 (20.8 ) Reclassification to earnings, net of tax (0.8 ) 13.7 27.5 Balance, ending $ 23.8 $ (2.3 ) $ (21.8 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income taxes for the Company's domestic and foreign operations | Income before income taxes for the Company’s domestic and foreign operations was as follows: Years Ended June 30, ($ in millions) 2018 2017 2016 Domestic $ 140.3 $ 56.0 $ 17.3 Foreign 19.9 14.2 4.2 Income before income taxes $ 160.2 $ 70.2 $ 21.5 |
Schedule of provision (benefit) for income taxes from continuing operations | The (benefit) provision for income taxes from continuing operations consisted of the following: Years Ended June 30, ($ in millions) 2018 2017 2016 Current: Federal $ 22.6 $ (24.5 ) $ 4.7 State 3.5 (1.1 ) 0.4 Foreign 6.7 7.2 4.3 Total current 32.8 (18.4 ) 9.4 Deferred: Federal (66.0 ) 38.7 0.1 State 4.8 3.5 0.5 Foreign 0.1 (0.6 ) 0.2 Total deferred (61.1 ) 41.6 0.8 Total income tax (benefit) expense $ (28.3 ) $ 23.2 $ 10.2 |
Schedule of reconciliation of income taxes computed at the U.S. Federal income tax rate to the Company's effective income tax rate | The following is a reconciliation of income taxes computed at the U.S. Federal income tax rate to the Company’s effective income tax rates: Years Ended June 30, (% of pre-tax income) 2018 2017 2016 Statutory federal income tax rate 28.1 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 2.6 2.0 2.2 Foreign tax rate differential (0.1 ) (1.5 ) 5.5 Domestic manufacturing deduction (1.5 ) (3.0 ) (7.0 ) Research and development tax credit (1.4 ) (3.9 ) (8.4 ) Law changes 0.1 0.9 (3.8 ) Increases in valuation allowances 0.8 1.1 2.1 Adjustments of prior years' income taxes 0.2 3.3 1.3 Unremitted earnings of foreign subsidiaries (0.2 ) (1.2 ) 12.7 Non-deductible goodwill impairment — — 5.1 Re-measurement of U.S. deferred taxes (49.3 ) — — Transition tax on foreign earnings 3.1 — — Other, net (0.1 ) 0.3 2.7 Effective income tax rate (17.7 )% 33.0 % 47.4 % |
Summary of components of deferred tax assets and liabilities | The significant components of deferred tax assets and liabilities that are recorded in the consolidated balance sheets are summarized in the table below. June 30, ($ in millions) 2018 2017 Deferred tax assets: Pensions $ 66.8 $ 139.8 Postretirement provisions 33.7 54.4 Net operating loss carryforwards 26.5 23.1 Derivatives and hedging activities — 2.4 Other 29.4 44.8 Gross deferred tax assets 156.4 264.5 Valuation allowances (23.9 ) (18.5 ) Total deferred tax assets 132.5 246.0 Deferred tax liabilities: Depreciation (235.2 ) (347.5 ) Intangible assets (11.9 ) (19.4 ) Inventories (30.5 ) (50.1 ) Derivatives and hedging activities (8.7 ) — Other (3.5 ) (6.2 ) Total deferred tax liabilities (289.8 ) (423.2 ) Deferred tax liabilities, net $ (157.3 ) $ (177.2 ) |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Income and Expenses [Abstract] | |
Schedule of other income, net | Other income (expense), net consists of the following: Years Ended June 30, ($ in millions) 2018 2017 2016 Unrealized gains (losses) on company owned life insurance contracts and investments held in rabbi trusts $ 1.5 $ 1.7 $ (0.5 ) Interest income 0.3 0.3 0.2 Equity in earnings of unconsolidated subsidiaries — — 0.6 Foreign exchange (0.6 ) (0.4 ) (2.4 ) Other 0.2 1.2 — Total other income (expense), net $ 1.4 $ 2.8 $ (2.1 ) |
Segment Information, Geograph47
Segment Information, Geographic and Product Data (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of results of operation, depreciation and amortization, capital expenditures and total assets by reportable segments | Segment Data Years Ended June 30, ($ in millions) 2018 2017 2016 Net Sales: Specialty Alloys Operations $ 1,803.8 $ 1,461.6 $ 1,481.0 Performance Engineered Products 429.7 366.6 358.7 Intersegment (75.8 ) (30.6 ) (26.3 ) Consolidated net sales $ 2,157.7 $ 1,797.6 $ 1,813.4 Years Ended June 30, ($ in millions) 2018 2017 2016 Operating Income: Specialty Alloys Operations $ 232.4 $ 172.3 $ 176.9 Performance Engineered Products 26.1 8.5 (5.5 ) Corporate costs (including loss on divestiture of business, restructuring and impairment charges) (66.4 ) (61.3 ) (103.0 ) Pension earnings, interest and deferrals (2.1 ) (23.8 ) (19.3 ) Intersegment (2.9 ) 1.5 2.5 Consolidated operating income $ 187.1 $ 97.2 $ 51.6 Years Ended June 30, ($ in millions) 2018 2017 2016 Depreciation and Amortization: Specialty Alloys Operations $ 93.3 $ 94.0 $ 94.4 Performance Engineered Products 20.2 20.6 21.9 Corporate 3.9 4.0 3.8 Intersegment (0.8 ) (0.8 ) (0.8 ) Consolidated depreciation and amortization $ 116.6 $ 117.8 $ 119.3 Years Ended June 30, ($ in millions) 2018 2017 2016 Capital Expenditures: Specialty Alloys Operations $ 63.6 $ 52.2 $ 67.0 Performance Engineered Products 31.6 17.0 19.8 Corporate 41.6 29.7 8.6 Intersegment (1.8 ) (0.4 ) (0.2 ) Consolidated capital expenditures $ 135.0 $ 98.5 $ 95.2 June 30, ($ in millions) 2018 2017 Total Assets: Specialty Alloys Operations $ 2,312.1 $ 2,292.1 Performance Engineered Products 513.6 434.3 Corporate 193.2 167.2 Intersegment (11.9 ) (15.5 ) Consolidated total assets $ 3,007.0 $ 2,878.1 |
Schedule of net sales by geographic segment | Geographic Data Years Ended June 30, ($ in millions) 2018 2017 2016 Net Sales: (a) United States $ 1,429.4 $ 1,198.3 $ 1,243.5 Europe 383.0 349.6 321.4 Asia Pacific 174.8 127.2 129.5 Canada 65.7 47.7 44.9 Mexico 61.7 48.5 46.7 Other 43.1 26.3 27.4 Consolidated net sales $ 2,157.7 $ 1,797.6 $ 1,813.4 (a) Net sales were attributed to countries based on the location of the customer. |
Schedule of long-lived assets by geographic segment | June 30, ($ in millions) 2018 2017 Long-lived assets: United States $ 1,286.4 $ 1,290.7 Asia Pacific 15.4 15.3 Canada 6.3 5.6 Europe 3.9 4.0 Mexico 1.4 1.2 Consolidated long-lived assets $ 1,313.4 $ 1,316.8 |
Reclassifications from Accumu48
Reclassifications from Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in AOCI by component, net of tax | The changes in AOCI by component, net of tax, for the years ended June 30, 2018 and 2017 were as follows: ($ in millions) (a) Cash flow hedging items Pension and other postretirement benefit plan items Unrealized losses on available-for-sale securities Foreign currency items Total Balance at June 30, 2017 $ (2.3 ) $ (299.0 ) $ (0.3 ) $ (41.5 ) $ (343.1 ) Other comprehensive income (loss) before reclassifications 26.9 69.7 — (1.4 ) 95.2 Amounts reclassified from AOCI (b) (0.8 ) 8.9 — — 8.1 Net current-period other comprehensive income (loss) 26.1 78.6 — (1.4 ) 103.3 Balance at June 30, 2018 $ 23.8 $ (220.4 ) $ (0.3 ) $ (42.9 ) $ (239.8 ) ($ in millions) (a) Cash flow hedging items Pension and other postretirement benefit plan items Unrealized losses on available-for-sale securities Foreign currency items Total Balance at June 30, 2016 $ (21.8 ) $ (344.3 ) $ (0.3 ) $ (43.5 ) $ (409.9 ) Other comprehensive income before reclassifications 5.7 22.4 — 2.0 30.1 Amounts reclassified from AOCI (b) 13.8 22.9 — — 36.7 Net current-period other comprehensive income 19.5 45.3 — 2.0 66.8 Balance at June 30, 2017 $ (2.3 ) $ (299.0 ) $ (0.3 ) $ (41.5 ) $ (343.1 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits. (b) See separate table below for further details. |
Schedule of amounts reclassified from AOCI | The following is a summary of amounts reclassified from AOCI for the years ended June 30, 2018 and 2017 : Amount Reclassified from AOCI Years Ended June 30, ($ in millions) (a) Location of gain 2018 2017 Details about AOCI Components Cash flow hedging items Commodity contracts Cost of sales $ 1.8 $ (22.8 ) Foreign exchange contracts Net sales (1.0 ) 0.5 Forward interest rate swaps Interest expense 0.4 0.4 Total before tax 1.2 (21.9 ) Tax (expense) benefit (0.4 ) 8.1 Net of tax $ 0.8 $ (13.8 ) Amortization of pension and other postretirement benefit plan items Net actuarial loss (b) $ (16.4 ) $ (41.0 ) Prior service cost (b) 3.1 4.7 Total before tax (13.3 ) (36.3 ) Tax benefit 4.4 13.4 Net of tax $ (8.9 ) $ (22.9 ) (a) Amounts in parentheses indicate debits to income/loss. (b) These AOCI components are included in the computation of net periodic benefit cost (see Note 10 for additional details). |
Supplemental Data (Tables)
Supplemental Data (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Supplemental Data | |
Additional supplemental disclosures | The following are additional required disclosures and other material items: Years Ended June 30, ($ in millions) 2018 2017 2016 Cost Data: Repairs and maintenance costs $ 108.0 $ 99.1 $ 101.8 Cash Flow Data: Noncash investing and financing activities: Sale of equity method investment $ — $ — $ 12.6 Noncash purchases of property, equipment and software $ 16.5 $ 13.7 $ 15.1 Cash paid (received) during the year for: Interest payments, net $ 29.5 $ 27.7 $ 27.5 Income tax payments (refunds), net $ 33.7 $ (33.3 ) $ 27.9 |
Quarterly Financial Data (Una50
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Data [Abstract] | |
Quarterly financial data by results of operations | ($ in millions) First Second Third Fourth Results of Operations Fiscal Year 2018 Net sales $ 479.8 $ 487.8 $ 572.2 $ 618.0 Gross profit $ 85.6 $ 85.7 $ 96.0 $ 114.9 Operating income $ 41.7 $ 40.8 $ 45.2 $ 59.4 Net income $ 23.4 $ 92.1 $ 30.2 $ 42.8 Fiscal Year 2017 Net sales $ 389.0 $ 427.4 $ 473.6 $ 507.7 Gross profit $ 46.0 $ 62.5 $ 83.1 $ 92.7 Operating income $ 1.4 $ 15.4 $ 35.8 $ 44.6 Net income (loss) $ (6.2 ) $ 7.0 $ 20.7 $ 25.5 During the quarter ended December 31, 2017, the Company recorded an income tax benefit. See Note 17, Income Taxes to Notes to Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data”. During the quarter ended June 30, 2017, the Company recorded a loss on divestiture of business. See Note 2, Acquisitions and Divestiture to Notes to Consolidated Financial Statements included in Item 8, “Financial Statements and Supplementary Data”. (per share amount) First Quarter Second Quarter Third Quarter Fourth Quarter Earnings (Loss) per common share Fiscal Year 2018 Basic earnings $ 0.49 $ 1.93 $ 0.63 $ 0.90 Diluted earnings $ 0.49 $ 1.92 $ 0.63 $ 0.88 Fiscal Year 2017 Basic earnings $ (0.13 ) $ 0.15 $ 0.44 $ 0.54 Diluted earnings $ (0.13 ) $ 0.15 $ 0.44 $ 0.54 (shares in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Weighted average common shares outstanding Fiscal Year 2018 Basic 47.1 47.2 47.2 47.4 Diluted 47.3 47.6 47.7 48.0 Fiscal Year 2017 Basic 46.9 47.0 47.0 47.1 Diluted 46.9 47.1 47.1 47.1 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018USD ($)facility | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Summary of significant accounting policies | |||
Proceeds received from sale of equity method investment | $ 0 | $ 0 | $ 6.3 |
Note receivables recorded from sale of equity method investment | 12.6 | ||
Proceeds from note receivable from the sale of equity method investment | 6.3 | 6.3 | 0 |
Discounts, rebates, returns and allowances | 26.5 | 23.8 | 29.8 |
Research and development expenditures | 19.3 | 16.9 | 16.3 |
Inventory accounted under method other than LIFO | 138.6 | 107.3 | |
Capitalized software amortization expense | 5.1 | 5.2 | $ 5.5 |
Carrying value of computer software | $ 101.8 | $ 71 | |
Number of former operating facility site that the liability for future costs is discounted to present value (facility) | facility | 1 | ||
Liability for future costs discount amortization period | 20 years | ||
Environmental expenditures, discount rate | 3.00% | 3.00% | |
Environmental expenditures, liability | $ 11 | $ 11 | |
Customer | Sales Revenue | Arconic | |||
Summary of significant accounting policies | |||
Concentration risk | 12.00% | 11.00% | 13.00% |
Minimum | Computer software | |||
Summary of significant accounting policies | |||
Estimated useful life | 3 years | ||
Minimum | Intangible Assets | |||
Summary of significant accounting policies | |||
Estimated useful life | 5 years | ||
Maximum | Computer software | |||
Summary of significant accounting policies | |||
Estimated useful life | 7 years | ||
Maximum | Intangible Assets | |||
Summary of significant accounting policies | |||
Estimated useful life | 30 years |
Acquisitions and Divestiture -
Acquisitions and Divestiture - Narrative (Details) $ in Millions | Feb. 21, 2018USD ($) | Jun. 29, 2017USD ($)transaction | Feb. 28, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 268.7 | $ 263.4 | $ 244.8 | |||
Proceeds from sale of business | $ 0 | 12 | $ 0 | |||
Discontinued Operations, Disposed of by Sale | Specialty Steel Supply | ||||||
Business Acquisition [Line Items] | ||||||
Number of separate transactions to complete the divestiture | transaction | 2 | |||||
Proceeds from sale of business | $ 12 | |||||
Pre tax loss from divestiture | $ 3.2 | |||||
MB CalRAM LLC | ||||||
Business Acquisition [Line Items] | ||||||
Asset purchase price | $ 13.3 | |||||
Business combination, working capital | 0.2 | |||||
Business combination, property, plant, and equipment | 2.6 | |||||
Identifiable intangible assets | 5.2 | |||||
Goodwill | $ 5.3 | |||||
Puris LLC | ||||||
Business Acquisition [Line Items] | ||||||
Asset purchase price | $ 35.3 | |||||
Business combination, working capital | 1.7 | |||||
Business combination, property, plant, and equipment | 6.5 | |||||
Identifiable intangible assets | 8.5 | |||||
Goodwill | $ 18.6 |
Restructuring Charges and Ass53
Restructuring Charges and Asset Impairment Charges - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and asset impairment charges | $ 0 | $ 0 | $ 18,000,000 |
Restructuring charges and asset impairment charges | 10,400,000 | ||
Non-cash impairment charges | 7,600,000 | ||
Impairment of property plant and equipment | 6,500,000 | ||
Impairment of intangible assets | 1,100,000 | ||
Special Termination Benefits | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairment charges | 9,400,000 | ||
Employee Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges and asset impairment charges | $ 700,000 | ||
Other restructuring charges to be paid in future periods | $ 300,000 |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of Calculations of Basic and Diluted Earnings from Continuing Operations per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |||||||||||
Net income | $ 188.5 | $ 47 | $ 11.3 | ||||||||
Less: earnings and dividends allocated to participating securities | (1.7) | (0.3) | (0.1) | ||||||||
Earnings available for common shareholders used in calculation of basic earnings per share | $ 186.8 | $ 46.7 | $ 11.2 | ||||||||
Weighted average number of common shares outstanding, basic (in shares) | 47.4 | 47.2 | 47.2 | 47.1 | 47.1 | 47 | 47 | 46.9 | 47.2 | 47 | 48.1 |
Basic earnings per common share (in dollars per share) | $ 0.90 | $ 0.63 | $ 1.93 | $ 0.49 | $ 0.54 | $ 0.44 | $ 0.15 | $ (0.13) | $ 3.96 | $ 0.99 | $ 0.23 |
Earnings available for common shareholders used in calculation of diluted earnings per share | $ 186.8 | $ 46.7 | $ 11.2 | ||||||||
Effect of shares issuable under share-based compensation plans (in shares) | 0.4 | 0.1 | 0.1 | ||||||||
Weighted average number of common shares outstanding, diluted (in shares) | 48 | 47.7 | 47.6 | 47.3 | 47.1 | 47.1 | 47.1 | 46.9 | 47.6 | 47.1 | 48.2 |
Diluted earnings per common share (in dollars per share) | $ 0.88 | $ 0.63 | $ 1.92 | $ 0.49 | $ 0.54 | $ 0.44 | $ 0.15 | $ (0.13) | $ 3.92 | $ 0.99 | $ 0.23 |
Earnings per Common Share - S55
Earnings per Common Share - Schedule of Awards Issued Under Share-based Compensation Plans Excluded from the Calculations of Diluted Earnings per Share (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock options | |||
Awards issued under share-based compensation plans that were excluded from calculations of diluted earnings per share because their effects were anti-dilutive | |||
Stock options (in shares) | 0.7 | 1.9 | 1.5 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 157.5 | $ 152.8 |
Work in process | 372.5 | 365.6 |
Finished and purchased products | 159.2 | 172 |
Total inventory | $ 689.2 | $ 690.4 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Inventory Disclosure [Abstract] | |||
Inventory LIFO reserve | $ 210.3 | $ 106.1 | |
Current cost of LIFO inventory | 760.8 | 689.2 | |
Decrease in cost of sales | 0.6 | 0 | $ 0 |
Non-cash excess inventory write-down | $ 0 | $ 0 | $ 22.5 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment(Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total at cost | $ 2,747.4 | $ 2,668.5 |
Less: accumulated depreciation and amortization | 1,434 | 1,351.7 |
Total property, plant, and equipment | 1,313.4 | 1,316.8 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total at cost | 34.8 | 34.1 |
Buildings and building equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total at cost | 500 | 495.7 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total at cost | 2,129 | 2,082.4 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total at cost | $ 83.6 | $ 56.3 |
Property, Plant and Equipment59
Property, Plant and Equipment - Schedule of Estimated Useful Lives of Depreciable Assets (Details) | 12 Months Ended |
Jun. 30, 2018 | |
Buildings and building equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Life (in Years) | 10 years |
Buildings and building equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Life (in Years) | 45 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Life (in Years) | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Life (in Years) | 30 years |
Property, Plant and Equipment60
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Certain reporting units impairment charges | $ 6.5 | ||
Depreciation | $ 104.7 | $ 105.8 | $ 106.5 |
Goodwill and Other Intangible61
Goodwill and Other Intangible Assets, Net - Narrative (Details) | 12 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($)reporting_unit | |
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | $ 12,500,000 |
Number of reporting units (reporting unit) | reporting_unit | 2 | ||
Impairment of intangible assets | $ 1,100,000 | ||
Amortization expense | 6,800,000 | $ 6,800,000 | 7,300,000 |
Estimated annual amortization expense for 2019 | 6,900,000 | ||
Estimated annual amortization expense for 2020 | 6,900,000 | ||
Estimated annual amortization expense for 2021 | 6,900,000 | ||
Estimated annual amortization expense for 2022 | 6,900,000 | ||
Estimated annual amortization expense for 2023 | $ 6,900,000 | ||
Performance Engineered Products | |||
Goodwill [Line Items] | |||
Impairment of intangible assets | $ 1,100,000 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets, Net - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Changes in the carrying amount of goodwill by reportable segment | ||
Goodwill gross, beginning balance | $ 310.6 | $ 292 |
Accumulated impairment losses, beginning balance | (47.2) | (47.2) |
Total goodwill net, beginning balance | 263.4 | 244.8 |
Acquisition | 5.3 | 18.6 |
Goodwill gross, ending balance | 315.9 | 310.6 |
Accumulated impairment losses, ending balance | (47.2) | (47.2) |
Total goodwill net, ending balance | 268.7 | 263.4 |
Specialty Alloys Operations | ||
Changes in the carrying amount of goodwill by reportable segment | ||
Total goodwill net, beginning balance | 195.5 | 195.5 |
Acquisition | 0 | 0 |
Total goodwill net, ending balance | 195.5 | 195.5 |
Performance Engineered Products | ||
Changes in the carrying amount of goodwill by reportable segment | ||
Total goodwill net, beginning balance | 67.9 | 49.3 |
Acquisition | 5.3 | 18.6 |
Total goodwill net, ending balance | $ 73.2 | $ 67.9 |
Goodwill and Other Intangible63
Goodwill and Other Intangible Assets, Net - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Other intangible assets | ||
Gross Carrying Amount | $ 117.9 | $ 112.7 |
Accumulated Amortization | (54.6) | (47.8) |
Total intangible assets, net | 63.3 | 64.9 |
Trademarks and trade names | ||
Other intangible assets | ||
Gross Carrying Amount | 33.5 | 33.5 |
Accumulated Amortization | (23.2) | (21.9) |
Total intangible assets, net | $ 10.3 | 11.6 |
Trademarks and trade names | Minimum | ||
Other intangible assets | ||
Useful Life (in Years) | 15 years | |
Trademarks and trade names | Maximum | ||
Other intangible assets | ||
Useful Life (in Years) | 30 years | |
Customer relationships | ||
Other intangible assets | ||
Gross Carrying Amount | $ 76.9 | 73.3 |
Accumulated Amortization | (30.8) | (25.8) |
Total intangible assets, net | $ 46.1 | 47.5 |
Customer relationships | Minimum | ||
Other intangible assets | ||
Useful Life (in Years) | 10 years | |
Customer relationships | Maximum | ||
Other intangible assets | ||
Useful Life (in Years) | 15 years | |
Non-compete agreements | ||
Other intangible assets | ||
Useful Life (in Years) | 5 years | |
Gross Carrying Amount | $ 0.2 | 0.2 |
Accumulated Amortization | (0.1) | 0 |
Total intangible assets, net | $ 0.1 | 0.2 |
Technology | ||
Other intangible assets | ||
Useful Life (in Years) | 15 years | |
Gross Carrying Amount | $ 7.3 | 5.7 |
Accumulated Amortization | (0.5) | (0.1) |
Total intangible assets, net | $ 6.8 | $ 5.6 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and benefits | $ 83.3 | $ 59.1 |
Accrued postretirement benefits | 15.4 | 15.5 |
Accrued interest expense | 10.4 | 11.2 |
Deferred revenue | 10.4 | 9.8 |
Accrued pension liabilities | 3.3 | 3.3 |
Accrued income taxes | 1.4 | 5.1 |
Derivative financial instruments | 0 | 13.1 |
Other | 24.4 | 22.8 |
Total accrued liabilities | $ 148.6 | $ 139.9 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2018 |
Long-term debt outstanding | |||||
Aggregate maturities of long-term debt, 2019 | $ 0 | ||||
Aggregate maturities of long-term debt, 2020 | 0 | ||||
Aggregate maturities of long-term debt, 2021 | 0 | ||||
Aggregate maturities of long-term debt, 2022 | 250,000,000 | ||||
Aggregate maturities of long-term debt, 2023 | 300,000,000 | ||||
Interest costs | 31,100,000 | $ 31,100,000 | $ 29,900,000 | ||
Interest costs, capitalized | 2,800,000 | $ 1,300,000 | $ 1,900,000 | ||
Credit Agreement | |||||
Long-term debt outstanding | |||||
Maximum borrowing capacity | $ 400,000,000 | ||||
Letters of credit issued | 6,000,000 | ||||
Credit Agreement available for future borrowings | $ 394,000,000 | ||||
Credit Agreement | LIBOR | |||||
Long-term debt outstanding | |||||
Interest rate margin | 1.50% | ||||
Credit Agreement | LIBOR | Minimum | |||||
Long-term debt outstanding | |||||
Interest rate margin | 1.00% | ||||
Credit Agreement | LIBOR | Maximum | |||||
Long-term debt outstanding | |||||
Interest rate margin | 1.75% | ||||
Credit Agreement | Base Rate | |||||
Long-term debt outstanding | |||||
Interest rate margin | 0.50% | ||||
Credit Agreement | Base Rate | Minimum | |||||
Long-term debt outstanding | |||||
Interest rate margin | 0.00% | ||||
Credit Agreement | Base Rate | Maximum | |||||
Long-term debt outstanding | |||||
Interest rate margin | 0.75% | ||||
Letter of Credit | |||||
Long-term debt outstanding | |||||
Commitment fee rate | 0.275% | ||||
Letter of credit fees | 1.50% | ||||
Required interest coverage ratio | 3.50 | ||||
Letter of Credit | Minimum | |||||
Long-term debt outstanding | |||||
Commitment fee rate | 0.125% | ||||
Letter of credit fees | 1.00% | ||||
Letter of Credit | Maximum | |||||
Long-term debt outstanding | |||||
Commitment fee rate | 0.40% | ||||
Letter of credit fees | 1.75% | ||||
Required debt to capital ratio | 0.55 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt Outstanding (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
Revolving Credit Agreement | ||
Total | $ 545,700,000 | $ 605,000,000 |
Less: amounts due within one year | 0 | (55,000,000) |
Long-term debt, net of current portion | 545,700,000 | 550,000,000 |
Medium-term notes, Series B at 6.97% to 7.10% due from April 2018 to May 2018 (face value of $0.0 and $55.0 million at June 30, 2018 and 2017, respectively) | ||
Revolving Credit Agreement | ||
Face amount | 0 | 55,000,000 |
Total | $ 0 | 55,000,000 |
Medium-term notes, Series B at 6.97% to 7.10% due from April 2018 to May 2018 (face value of $0.0 and $55.0 million at June 30, 2018 and 2017, respectively) | Minimum | ||
Revolving Credit Agreement | ||
Interest rate | 6.97% | |
Medium-term notes, Series B at 6.97% to 7.10% due from April 2018 to May 2018 (face value of $0.0 and $55.0 million at June 30, 2018 and 2017, respectively) | Maximum | ||
Revolving Credit Agreement | ||
Interest rate | 7.10% | |
Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at June 30, 2018 and 2017) | ||
Revolving Credit Agreement | ||
Interest rate | 5.20% | |
Face amount | $ 250,000,000 | 250,000,000 |
Total | $ 246,600,000 | 251,200,000 |
Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at June 30, 2018 and 2017) | ||
Revolving Credit Agreement | ||
Interest rate | 4.45% | |
Face amount | $ 300,000,000 | 300,000,000 |
Total | $ 299,100,000 | $ 298,800,000 |
Pension and Other Postretirem67
Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions | Aug. 31, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment charge | $ 0.5 | |||
Discount rate | 3.57% | |||
Reduction in long-term pension liabilities | $ (18.7) | |||
Percentage increase in funding level to shift assets from return seeking to liability hedging | 5.00% | |||
Percentage change in assets allocation from assets seeking to liability hedging due to increase in funding level | 4.00% | |||
Return Seeking Asset | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan's current allocation policy | 60.00% | |||
Liability Matching Assets | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan's current allocation policy | 40.00% | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment charge | $ 0 | $ 72.6 | ||
Discount rate | 4.32% | 3.92% | ||
Special termination benefits | $ 0.2 | $ 0.6 | ||
Employer contributions | 10 | 103.4 | ||
Pension Benefits | Qualified Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discretionary contribution | 6.7 | 100 | ||
Special termination benefits | $ 9.4 | |||
Expected contributions for next fiscal year | 5.5 | |||
Pension Benefits | Qualified Plan | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | 6.7 | 100 | 0 | |
Pension Benefits | Nonqualified Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Employer contributions | 3.3 | 3.5 | 3.2 | |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Curtailment charge | $ 0 | $ 0 | ||
Discount rate | 4.32% | 3.89% | ||
Special termination benefits | $ 0 | $ 0 | ||
Effect of one percentage point increase in the assumed health care cost trend rate on service and interest cost components | 0.1 | |||
Effect of one percentage point increase in the assumed health care cost trend rate on postretirement benefit obligation | 2.6 | |||
Effect of one percentage point decrease in the assumed health care cost trend rate on service and interest cost components | 0.1 | |||
Effect of one percentage point decrease in the assumed health care cost trend rate on postretirement benefit obligation | 2.3 | |||
Employer contributions | $ 3.3 | 3.2 | ||
Other Benefits | Equity securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan's current allocation policy | 87.00% | |||
Other Benefits | Fixed income securities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Plan's current allocation policy | 13.00% | |||
Defined Contribution Retirement and Savings Plans | United States | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions to defined contribution retirement and savings plans | $ 22.6 | $ 16.7 | $ 11.8 |
Pension and Other Postretirem68
Pension and Other Postretirement Benefits - Schedule of Reconciliation of Benefit Obligations, Plan Assets and Funded Status of the Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Change in projected benefit obligation: | |||
Curtailment gain | $ (0.5) | ||
Change in plan assets: | |||
Fair value of plan assets at beginning of year | |||
Fair value of plan assets at end of year | |||
Pension Benefits | |||
Change in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | 1,369.1 | 1,404.4 | |
Service cost | 9.5 | 20.5 | $ 31.2 |
Interest cost | 52.1 | 50.3 | 58 |
Benefits paid | (89.8) | (92) | |
Actuarial (gains) loss | (76.6) | 39.3 | |
Special termination benefits | 0.2 | 0.6 | |
Curtailment gain | 0 | (72.6) | |
Plan amendments | 0 | 18.6 | |
Projected benefit obligation at end of year | 1,264.5 | 1,369.1 | 1,404.4 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 987.6 | 885.1 | |
Actual return | 64.7 | 91.1 | |
Benefits paid | (89.8) | (92) | |
Contributions | 10 | 103.4 | |
Fair value of plan assets at end of year | 972.5 | 987.6 | 885.1 |
Funded status of the plans | (292) | (381.5) | |
Amounts recognized in the consolidated balance sheets: | |||
Other assets - noncurrent | 0.1 | 0.1 | |
Accrued liabilities - current | (3.3) | (3.3) | |
Accrued pension and postretirement benefits - noncurrent | (288.8) | (378.3) | |
Amounts recognized in the consolidated balance sheets | (292) | (381.5) | |
Other Benefits | |||
Change in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | 255.1 | 246 | |
Service cost | 2.6 | 3.6 | 3.3 |
Interest cost | 9.5 | 9.2 | 10.4 |
Benefits paid | (13) | (12.7) | |
Actuarial (gains) loss | (12.7) | (1.7) | |
Special termination benefits | 0 | 0 | |
Curtailment gain | 0 | 0 | |
Plan amendments | 0 | 10.7 | |
Projected benefit obligation at end of year | 241.5 | 255.1 | 246 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 117 | 115.6 | |
Actual return | 10.6 | 10.9 | |
Benefits paid | (13) | (12.7) | |
Contributions | 3.3 | 3.2 | |
Fair value of plan assets at end of year | 117.9 | 117 | $ 115.6 |
Funded status of the plans | (123.6) | (138.1) | |
Amounts recognized in the consolidated balance sheets: | |||
Other assets - noncurrent | 0 | 0 | |
Accrued liabilities - current | (15.4) | (15.5) | |
Accrued pension and postretirement benefits - noncurrent | (108.2) | (122.6) | |
Amounts recognized in the consolidated balance sheets | $ (123.6) | $ (138.1) |
Pension and Other Postretirem69
Pension and Other Postretirement Benefits - Schedule of Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Benefits | ||
Amounts recognized in accumulated other comprehensive loss: | ||
Net actuarial loss | $ 362.1 | $ 451.3 |
Prior service cost (credit) | 16.2 | 18.3 |
Total | 378.3 | 469.6 |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss consist of: | ||
Net actuarial gain | (75) | (59.1) |
Amortization of net loss | (13.5) | (37.8) |
Prior service cost | 0 | 18.6 |
Amortization of prior service (cost) benefit | (2.1) | (1.8) |
Total, before tax effect | (90.6) | (80.1) |
Additional information: | ||
Accumulated benefit obligation for all pension plans | 1,257.8 | 1,362.8 |
Other Benefits | ||
Amounts recognized in accumulated other comprehensive loss: | ||
Net actuarial loss | 32.9 | 52.2 |
Prior service cost (credit) | (23.1) | (28.2) |
Total | 9.8 | 24 |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss consist of: | ||
Net actuarial gain | (16.3) | (5.7) |
Amortization of net loss | (2.9) | (3.2) |
Prior service cost | 0 | 10.7 |
Amortization of prior service (cost) benefit | 5.2 | 6.5 |
Total, before tax effect | $ (14) | $ 8.3 |
Pension and Other Postretirem70
Pension and Other Postretirement Benefits - Schedule of Amounts Recognized in the Accumulated other Comprehensive Loss (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 1,264.4 | $ 1,369 |
Fair value of plan assets | 972.4 | 987.4 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 241.5 | 255.1 |
Fair value of plan assets | $ 117.9 | $ 117 |
Pension and Other Postretirem71
Pension and Other Postretirement Benefits - Schedule of Projected Benefit Obligations in Excess of Plan Assets and Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 1,257.7 | $ 1,362.7 |
Fair value of plan assets | 972.4 | 987.4 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 241.5 | 255.1 |
Fair value of plan assets | $ 117.9 | $ 117 |
Pension and Other Postretirem72
Pension and Other Postretirement Benefits - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 9.5 | $ 20.5 | $ 31.2 |
Interest cost | 52.1 | 50.3 | 58 |
Expected return on plan assets | (65.9) | (65.1) | (66.1) |
Amortization of net loss | 13.5 | 37.8 | 27.4 |
Amortization of prior service cost (benefit) | 2.1 | 1.8 | 0.4 |
Curtailment loss | 0 | 0.5 | 0 |
Net periodic benefit costs | 11.3 | 45.8 | 50.9 |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2.6 | 3.6 | 3.3 |
Interest cost | 9.5 | 9.2 | 10.4 |
Expected return on plan assets | (6.9) | (6.9) | (7) |
Amortization of net loss | 2.9 | 3.2 | 2.7 |
Amortization of prior service cost (benefit) | (5.2) | (6.5) | (6.5) |
Curtailment loss | 0 | 0 | 0 |
Net periodic benefit costs | $ 2.9 | $ 2.6 | $ 2.9 |
Pension and Other Postretirem73
Pension and Other Postretirement Benefits - Schedule of Weighted-average Assumptions Used to Determine Benefit Obligation (Details) | Jun. 30, 2018 | Jun. 30, 2017 | Aug. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.57% | ||
Rate of compensation increase | 3.44% | 3.50% | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.32% | 3.92% | |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.32% | 3.89% |
Pension and Other Postretirem74
Pension and Other Postretirement Benefits - Schedule of Weighted-average Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term rate of compensation increase | 3.44% | 3.50% | 3.49% |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.92% | 3.91% | 4.50% |
Expected long-term rate of return on plan assets | 6.87% | 6.88% | 6.92% |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.89% | 3.86% | 4.50% |
Expected long-term rate of return on plan assets | 6.25% | 6.25% | 6.25% |
Pension and Other Postretirem75
Pension and Other Postretirement Benefits - Schedule of Expected Health Care Cost Trend Rates (Details) | Jun. 30, 2018 | Jun. 30, 2017 |
Retirement Benefits [Abstract] | ||
Assumed health care cost trend rate | 6.50% | 7.00% |
Rate to which the cost trend rate is assumed to decline and remain (the ultimate trend rate) | 5.00% | 5.00% |
Pension and Other Postretirem76
Pension and Other Postretirement Benefits - Schedule of Amounts in Other Comprehensive Loss that are Expected to be Recognized as Components of Net Periodic Benefit Cost (Details) $ in Millions | Jun. 30, 2018USD ($) |
Amounts in other comprehensive loss that are expected to recognized as components of net periodic benefit cost in the next fiscal year | |
Amortization of prior service cost (benefit) | $ (3.1) |
Amortization of net actuarial loss | 12.1 |
Amortization of accumulated other comprehensive loss (gain) | 9 |
Pension Benefits | |
Amounts in other comprehensive loss that are expected to recognized as components of net periodic benefit cost in the next fiscal year | |
Amortization of prior service cost (benefit) | 2.1 |
Amortization of net actuarial loss | 10.4 |
Amortization of accumulated other comprehensive loss (gain) | 12.5 |
Other Benefits | |
Amounts in other comprehensive loss that are expected to recognized as components of net periodic benefit cost in the next fiscal year | |
Amortization of prior service cost (benefit) | (5.2) |
Amortization of net actuarial loss | 1.7 |
Amortization of accumulated other comprehensive loss (gain) | $ (3.5) |
Pension and Other Postretirem77
Pension and Other Postretirement Benefits - Schedule of Weighted-average Asset Allocations by Asset Category (Details) - United States - Pension Benefits | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 55.70% | 55.00% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 44.30% | 45.00% |
Pension and Other Postretirem78
Pension and Other Postretirement Benefits - Schedule of Fair Values of Pension Plan by Assets Category (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 972,500,000 | 987,600,000 | $ 885,100,000 |
Pension Benefits | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 17,100,000 | 24,000,000 | |
Pension Benefits | Domestic and international equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 156,400,000 | 148,300,000 | |
Pension Benefits | Commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 365,300,000 | 376,600,000 | |
Pension Benefits | Limited partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 43,300,000 | 42,300,000 | |
Pension Benefits | Government agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 155,100,000 | 154,400,000 | |
Pension Benefits | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 226,300,000 | 236,200,000 | |
Pension Benefits | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,800,000 | 1,800,000 | |
Pension Benefits | Mortgage/asset backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 7,200,000 | 4,000,000 | |
Pension Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 162,400,000 | 161,100,000 | |
Pension Benefits | Level 1 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 2,500,000 | 9,400,000 | |
Pension Benefits | Level 1 | Domestic and international equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 156,400,000 | 148,300,000 | |
Pension Benefits | Level 1 | Commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 1 | Limited partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 1 | Government agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3,500,000 | 3,400,000 | |
Pension Benefits | Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 1 | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 1 | Mortgage/asset backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 399,700,000 | 405,800,000 | |
Pension Benefits | Level 2 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 14,600,000 | 14,600,000 | |
Pension Benefits | Level 2 | Domestic and international equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 2 | Commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 2 | Limited partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 2 | Government agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 151,600,000 | 151,000,000 | |
Pension Benefits | Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 226,300,000 | 236,200,000 | |
Pension Benefits | Level 2 | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 2 | Mortgage/asset backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 7,200,000 | 4,000,000 | |
Pension Benefits | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 410,400,000 | 420,700,000 | |
Pension Benefits | Net Asset Value | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Net Asset Value | Domestic and international equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Net Asset Value | Commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 365,300,000 | 376,600,000 | |
Pension Benefits | Net Asset Value | Limited partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 43,300,000 | 42,300,000 | |
Pension Benefits | Net Asset Value | Government agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Net Asset Value | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Net Asset Value | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1,800,000 | 1,800,000 | |
Pension Benefits | Net Asset Value | Mortgage/asset backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 0 | $ 0 |
Pension and Other Postretirem79
Pension and Other Postretirement Benefits - Schedule of Fair Values of Other Postretirement Benefit Plans by Asset Category (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 117.9 | 117 | $ 115.6 |
Other Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 37.6 | 44 | |
Other Benefits | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 80.3 | 73 | |
Other Benefits | Commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 80.3 | 73 | |
Other Benefits | Commingled funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Commingled funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Commingled funds | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 80.3 | 73 | |
Other Benefits | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 23 | 22.4 | |
Other Benefits | Short-term investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Short-term investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 23 | 22.4 | |
Other Benefits | Short-term investments | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Government agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 8.7 | 12.2 | |
Other Benefits | Government agency bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Government agency bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 8.7 | 12.2 | |
Other Benefits | Government agency bonds | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 5.4 | 8.2 | |
Other Benefits | Corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 5.4 | 8.2 | |
Other Benefits | Corporate bonds | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Mortgage/asset backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.5 | 1.2 | |
Other Benefits | Mortgage/asset backed securities and other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Mortgage/asset backed securities and other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.5 | 1.2 | |
Other Benefits | Mortgage/asset backed securities and other | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 0 | $ 0 |
Pension and Other Postretirem80
Pension and Other Postretirement Benefits - Schedule of Estimated Future Benefit Payments (Details) $ in Millions | Jun. 30, 2018USD ($) |
Pension Benefits | |
Estimated future benefit payments | |
2,019 | $ 83.8 |
2,020 | 84.6 |
2,021 | 85.3 |
2,022 | 85.9 |
2,023 | 86.3 |
2024-2028 | 423.7 |
Other Benefits | |
Estimated future benefit payments | |
2,019 | 15.4 |
2,020 | 15.4 |
2,021 | 15.4 |
2,022 | 15.4 |
2,023 | 15.3 |
2024-2028 | $ 74.6 |
Contingencies and Commitments -
Contingencies and Commitments - Environmental (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
(Decrease) increase made by the company in the liabilities of environmental remediation costs | $ 0 | $ 100,000 | $ 300,000 |
Environmental remediation liability | $ 16,100,000 | $ 16,100,000 |
Contingencies and Commitments82
Contingencies and Commitments - Other (Details) $ in Millions | Jun. 30, 2018USD ($) |
Purchase agreements | |
Aggregate purchase commitments, due in 2019 | $ 170.7 |
Aggregate purchase commitments, due in 2020 | 1.5 |
Raw materials | |
Purchase agreements | |
Aggregate purchase commitments | $ 172.2 |
Share Repurchase Program - Narr
Share Repurchase Program - Narrative (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Oct. 31, 2014 | |
Equity [Abstract] | ||||
Share repurchase program, authorized amount | $ 500,000,000 | |||
Shares purchase (in shares) | 0 | 0 | 3,762,200 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Leases, Operating [Abstract] | |||
Rent expense total | $ 13.4 | $ 13.2 | $ 11.3 |
Future minimum payments for non-cancellable operating leases, 2019 | 9.1 | ||
Future minimum payments for non-cancellable operating leases, 2020 | 7 | ||
Future minimum payments for non-cancellable operating leases, 2021 | 3.9 | ||
Future minimum payments for non-cancellable operating leases, 2022 | 2.9 | ||
Future minimum payments for non-cancellable operating leases, 2023 | 2.7 | ||
Future minimum payments for non-cancellable operating leases, thereafter | $ 2.9 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - Measured on a recurring basis - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Marketable securities | ||
Derivative financial instruments | $ 35.2 | $ 14.5 |
Total assets | 38.1 | 17.9 |
Liabilities: | ||
Derivative financial instruments | 3.4 | 19.1 |
Level 2 | ||
Marketable securities | ||
Derivative financial instruments | 35.2 | 14.5 |
Total assets | 38.1 | 17.9 |
Liabilities: | ||
Derivative financial instruments | 3.4 | 19.1 |
Municipal auction rate securities | ||
Marketable securities | ||
Municipal auction rate securities | 2.9 | 3.4 |
Municipal auction rate securities | Level 2 | ||
Marketable securities | ||
Municipal auction rate securities | $ 2.9 | $ 3.4 |
Fair Value Measurements - Sch86
Fair Value Measurements - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments not Recorded at Fair Value in the Financial Statements (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Carrying Value | ||
Carrying amounts and estimated fair values of financial instruments not recorded at fair value | ||
Long-term debt, including current portion | $ 545.7 | $ 605 |
Company-owned life insurance | 16.4 | 15.9 |
Fair Value | ||
Carrying amounts and estimated fair values of financial instruments not recorded at fair value | ||
Long-term debt, including current portion | 558.3 | 622.5 |
Company-owned life insurance | $ 16.4 | $ 15.9 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jun. 30, 2018USD ($)plan$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based compensation plans (plan) | plan | 2 | |||
Compensation cost | $ 17.6 | $ 13 | $ 8.7 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 5 | $ 4.7 | $ 3.1 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 11.65 | $ 10.81 | $ 9.27 | |
Unvested stock option cost | $ 4.1 | |||
Stock option weighted average remaining life | 1 year 2 months 12 days | |||
Options outstanding (in shares) | shares | 2,223,261 | 2,392,428 | 1,701,502 | 1,507,878 |
Stock options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period | 1 year | |||
Stock options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period | 3 years | |||
Expiration term | 10 years | |||
Total Stockholder Return Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 2.8 | $ 2 | $ 2 | |
Shares vesting period | 3 years | |||
Total Stockholder Return Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target shares awarded percentage | 0.00% | |||
Total Stockholder Return Awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target shares awarded percentage | 200.00% | |||
Omnibus Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | shares | 2,567,536 | |||
Omnibus Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | shares | 2,031,795 | |||
Omnibus Plan | Performance-based restricted stock unit awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period | 0 years | |||
Omnibus Plan | Performance-based restricted stock unit awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period | 2 years | |||
Omnibus Plan | Time-based restricted stock unit awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period | 3 years | |||
Omnibus Plan | Restricted stock unit awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 8.8 | 5 | 2.4 | |
Unvested stock option cost | $ 11 | |||
Stock option weighted average remaining life | 1 year 3 months 18 days | |||
Director's Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 1 | $ 1.2 | $ 1.2 | |
Shares available for grant (in shares) | shares | 572,104 | |||
Shares vesting period | 1 year | |||
Unvested stock option cost | $ 0.3 | |||
Stock option weighted average remaining life | 3 months 18 days | |||
Percentage of Director's annual retainer paid in stock instead of cash | 50.00% | |||
Percentage of Director's committee chair fees paid in stock instead of cash | 100.00% | |||
Director's Plan | Every Three Months | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares vesting following grant date | 25.00% | |||
Director's Plan | 1/4 of the units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock vesting period with reference to service term | 3 months | |||
Director's Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of Director's annual retainer paid in stock instead of cash | 50.00% | |||
Director's Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | shares | 191,466 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Weighted-average Assumptions of Fair Value of Stock Options (Details) - Stock options | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 35.00% | 37.00% | 33.00% |
Dividend yield | 1.80% | 1.80% | 2.00% |
Risk-free interest rate | 1.80% | 1.10% | 1.50% |
Expected term (in years) | 5 years | 5 years | 5 years |
Share-Based Compensation - Su89
Share-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Number of Awards | |||
Exercised (in shares) | (362,571) | (95,089) | (19,627) |
Stock options | |||
Number of Awards | |||
Balance at the beginning of the period (in shares) | 2,392,428 | 1,701,502 | 1,507,878 |
Granted (in shares) | 252,545 | 907,141 | 277,769 |
Exercised (in shares) | (362,571) | (95,289) | (19,627) |
Forfeited (in shares) | (25,915) | (80,926) | (64,518) |
Expired (in shares) | (33,226) | (40,000) | |
Balance at the end of the period (in shares) | 2,223,261 | 2,392,428 | 1,701,502 |
Number of awards, exercisable (in shares) | 1,135,224 | ||
Weighted Average Exercise Price | |||
Balance at the beginning of the period (in dollars per share) | $ 42.27 | $ 43.35 | $ 44.61 |
Granted (in dollars per share) | 41.27 | 38.98 | 36.31 |
Exercised (in dollars per share) | 35.70 | 23.21 | 25.12 |
Forfeited (in dollars per share) | 45.27 | 44.35 | 47.98 |
Expired (in dollars per share) | 63.12 | 55.12 | |
Balance at the end of the period (in dollars per share) | 42.88 | $ 42.27 | $ 43.35 |
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 46.26 | ||
Additional disclosures | |||
Weighted Average Remaining Contractual Term | 6 years 11 months | ||
Weighted Average Remaining Contractual Term, Exercisable | 5 years 7 months | ||
Aggregate Intrinsic Value | $ 22.3 | ||
Aggregate Intrinsic Value, Exercisable | $ 8 |
Share-Based Compensation - Su90
Share-Based Compensation - Summary of Outstanding and Exercisable Options by Exercise Price Range (Details) - Stock options | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Exercise price range disclosures | |
Number of Awards, Outstanding (in shares) | shares | 2,223,261 |
Weighted Average Exercise Price (in dollars per share) | $ 42.88 |
Number Exercisable (in shares) | shares | 1,135,224 |
Weighted Average Exercise Price (in dollars per share) | $ 46.26 |
$14.17 - $20.00 | |
Exercise price range disclosures | |
Minimum Exercise Price Range (in dollars per share) | 14.17 |
Maximum Exercise Price Range (in dollars per share) | $ 20 |
Number of Awards, Outstanding (in shares) | shares | 25,407 |
Weighted Average Remaining Contractual Term (in Years) | 1 year 1 month 3 days |
Weighted Average Exercise Price (in dollars per share) | $ 17.30 |
Number Exercisable (in shares) | shares | 25,407 |
Weighted Average Exercise Price (in dollars per share) | $ 17.30 |
$20.01 - $30.00 | |
Exercise price range disclosures | |
Minimum Exercise Price Range (in dollars per share) | 20.01 |
Maximum Exercise Price Range (in dollars per share) | $ 30 |
Number of Awards, Outstanding (in shares) | shares | 8,267 |
Weighted Average Remaining Contractual Term (in Years) | 3 months 19 days |
Weighted Average Exercise Price (in dollars per share) | $ 22.39 |
Number Exercisable (in shares) | shares | 8,267 |
Weighted Average Exercise Price (in dollars per share) | $ 22.39 |
$30.01 - $40.00 | |
Exercise price range disclosures | |
Minimum Exercise Price Range (in dollars per share) | 30.01 |
Maximum Exercise Price Range (in dollars per share) | $ 40 |
Number of Awards, Outstanding (in shares) | shares | 1,043,789 |
Weighted Average Remaining Contractual Term (in Years) | 7 years 8 months 19 days |
Weighted Average Exercise Price (in dollars per share) | $ 38.42 |
Number Exercisable (in shares) | shares | 202,240 |
Weighted Average Exercise Price (in dollars per share) | $ 36.88 |
$40.01 - $50.00 | |
Exercise price range disclosures | |
Minimum Exercise Price Range (in dollars per share) | 40.01 |
Maximum Exercise Price Range (in dollars per share) | $ 50 |
Number of Awards, Outstanding (in shares) | shares | 548,986 |
Weighted Average Remaining Contractual Term (in Years) | 7 years 4 months 9 days |
Weighted Average Exercise Price (in dollars per share) | $ 41.91 |
Number Exercisable (in shares) | shares | 302,498 |
Weighted Average Exercise Price (in dollars per share) | $ 42.41 |
$50.01 - $63.54 | |
Exercise price range disclosures | |
Minimum Exercise Price Range (in dollars per share) | 50.01 |
Maximum Exercise Price Range (in dollars per share) | $ 63.54 |
Number of Awards, Outstanding (in shares) | shares | 596,812 |
Weighted Average Remaining Contractual Term (in Years) | 5 years 6 months 4 days |
Weighted Average Exercise Price (in dollars per share) | $ 52.95 |
Number Exercisable (in shares) | shares | 596,812 |
Weighted Average Exercise Price (in dollars per share) | $ 52.95 |
Share-Based Compensation - Su91
Share-Based Compensation - Summary of Nonvested Stock Awards Activity (Details) - Restricted stock unit awards - Omnibus Plan - $ / shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Number of Awards | |||
Balance at the beginning of the period (in shares) | 392,477 | 188,469 | 127,409 |
Time-based granted (in shares) | 138,718 | 231,195 | 130,742 |
Performance-based granted (in shares) | 124,432 | 55,478 | 49,529 |
Vested (in shares) | (62,215) | (44,873) | (36,057) |
Forfeited (in shares) | (21,384) | (37,792) | (83,154) |
Balance at the end of the period (in shares) | 572,028 | 392,477 | 188,469 |
Weighted-Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ 37.47 | $ 35.69 | $ 45.09 |
Time-based granted (in dollars per share) | 41.49 | 38.82 | 35.96 |
Performance-based granted (in dollars per share) | 50.99 | 36.18 | 31.11 |
Vested (in dollars per share) | 35.35 | 34.24 | 48.85 |
Forfeited (in dollars per share) | 39.48 | 38.80 | 42.14 |
Balance at the end of the period (in dollars per share) | $ 41.54 | $ 37.47 | $ 35.69 |
Share-Based Compensation - Su92
Share-Based Compensation - Summary of Director Stock Units Activity (Details) - Non-employee Board of Director's Plan - $ / shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Number of Units | |||
Balance at the beginning of the period (in shares) | 338,553 | 334,943 | 287,436 |
Granted (in shares) | 21,813 | 27,285 | 40,323 |
Distributed (in shares) | (35,489) | (30,022) | |
Dividend equivalents (in shares) | 4,869 | 6,347 | 7,184 |
Balance at the end of the period (in shares) | 329,746 | 338,553 | 334,943 |
Weighted Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ 42.47 | $ 38.64 | $ 35.48 |
Granted (in dollars per share) | 49.14 | 39.69 | 32.54 |
Distributed (in dollars per share) | 35.22 | 34.19 | |
Dividend equivalents (in dollars per share) | 0 | 0 | 0 |
Balance at the end of the period (in dollars per share) | $ 33.05 | $ 42.47 | $ 38.64 |
Derivatives and Hedging Activ93
Derivatives and Hedging Activities - Narrative (Details) lb in Millions | 12 Months Ended | ||
Jun. 30, 2018USD ($)lb | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative contracts on a gross basis | $ 41,700,000 | ||
Derivative contracts liability on a gross basis | 9,900,000 | ||
Cash collateral held by counterparties | 0 | ||
Derivative losses included in AOCI | 15,400,000 | ||
Cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains recorded as a reduction to interest expense | $ 41,000,000 | $ 9,300,000 | $ (33,300,000) |
Commodity contracts | Cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts of raw materials to be purchased from forward contracts (in lb) | lb | 23.2 | ||
Net gains recorded as a reduction to interest expense | $ 41,400,000 | 9,400,000 | (34,000,000) |
Forward interest rate swaps | Cash flow hedges | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains recorded as a reduction to interest expense | 300,000 | 300,000 | 300,000 |
Forward interest rate swaps | Fair Value Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total notional amounts of interest rate contracts | 150,000,000 | 150,000,000 | |
Net gains recorded as a reduction to interest expense | $ 400,000 | $ 1,800,000 | $ 2,600,000 |
Derivatives and Hedging Activ94
Derivatives and Hedging Activities - Schedule of Fair Value and Location of Outstanding Derivative Contracts Recorded in Consolidated Balance Sheets (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | $ 35.2 | $ 14.5 |
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 3.4 | 19.1 |
Forward interest rate swaps | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 0.1 | 2.2 |
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 2.9 | 0 |
Foreign exchange contracts | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 0.4 | 0.2 |
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0.1 | 1 |
Commodity contracts | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 34.7 | 12.1 |
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0.4 | 18.1 |
Other current assets | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 15.8 | 7.2 |
Other current assets | Forward interest rate swaps | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 0.1 | 0.6 |
Other current assets | Foreign exchange contracts | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 0.4 | 0.2 |
Other current assets | Commodity contracts | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 15.3 | 6.4 |
Other assets | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 19.4 | 7.3 |
Other assets | Forward interest rate swaps | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 0 | 1.6 |
Other assets | Foreign exchange contracts | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 0 | 0 |
Other assets | Commodity contracts | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 19.4 | 5.7 |
Accrued liabilities | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0.1 | 13.1 |
Accrued liabilities | Forward interest rate swaps | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0 | 0 |
Accrued liabilities | Foreign exchange contracts | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0.1 | 1 |
Accrued liabilities | Commodity contracts | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0 | 12.1 |
Other liabilities | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 3.3 | 6 |
Other liabilities | Forward interest rate swaps | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 2.9 | 0 |
Other liabilities | Foreign exchange contracts | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0 | 0 |
Other liabilities | Commodity contracts | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | $ 0.4 | $ 6 |
Derivatives and Hedging Activ95
Derivatives and Hedging Activities - Summary of the Gains (Losses) Related to Cash Flow Hedges (Details) - Cash flow hedges - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | $ 41 | $ 9.3 | $ (33.3) |
Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) | 3.2 | (21.9) | (44) |
Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | 41.4 | 9.4 | (34) |
Commodity contracts | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) | 3.8 | (22.8) | (44.6) |
Amount of Gain (Loss) Reclassified from AOCI into Income (Ineffective Portion) | (2) | 2 | 1.5 |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | (0.4) | (0.1) | 0.7 |
Foreign exchange contracts | Net sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) | (1) | 0.5 | 0.2 |
Forward interest rate swaps | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) | 0.3 | 0.3 | 0.3 |
Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) | $ 0.4 | $ 0.4 | $ 0.4 |
Derivatives and Hedging Activ96
Derivatives and Hedging Activities - Schedule of Changes in AOCI Associated with Derivative Hedging Activities (Details) - Cash flow hedges - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning | $ (2.3) | $ (21.8) | $ (28.5) |
Current period changes in fair value, net of tax | 26.9 | 5.8 | (20.8) |
Reclassification to earnings, net of tax | 0.8 | 13.7 | 27.5 |
Balance, ending | $ 23.8 | $ (2.3) | $ (21.8) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating loss carryforwards disclosures | |||
Blended U.S federal statutory rate | 28.10% | 35.00% | 35.00% |
Tax Cuts and Jobs Act, provisional net benefit for re-measurement of deferred tax assets and liabilities | $ 78,900,000 | ||
Reduction in valuation allowance amount | 5,400,000 | ||
Amount of future tax benefits | 3,000,000 | ||
Undistributed earnings of foreign subsidiaries | 93,800,000 | ||
Tax Cuts and Jobs Act of 2017, tax expense for transition tax | 5,000,000 | ||
Unrecognized tax benefits | 0 | $ 0 | $ 0 |
State | |||
Operating loss carryforwards disclosures | |||
Net operating loss carryforwards expiring between 2019 and 2037 | $ 339,900,000 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes for the Company's Domestic and Foreign Operations(Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 140.3 | $ 56 | $ 17.3 |
Foreign | 19.9 | 14.2 | 4.2 |
Income before income taxes | $ 160.2 | $ 70.2 | $ 21.5 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Income Taxes from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Current: | |||
Federal | $ 22.6 | $ (24.5) | $ 4.7 |
State | 3.5 | (1.1) | 0.4 |
Foreign | 6.7 | 7.2 | 4.3 |
Total current | 32.8 | (18.4) | 9.4 |
Deferred: | |||
Federal | (66) | 38.7 | 0.1 |
State | 4.8 | 3.5 | 0.5 |
Foreign | 0.1 | (0.6) | 0.2 |
Total deferred | (61.1) | 41.6 | 0.8 |
Total income tax (benefit) expense | $ (28.3) | $ 23.2 | $ 10.2 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes Computed at the U.S. Federal Income Tax Rate to the Company's Effective Income Tax Rate (Details) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reconciliation of income taxes computed at the U.S. Federal income tax rate to the Company's effective income tax rate | |||
Statutory federal income tax rate | 28.10% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 2.60% | 2.00% | 2.20% |
Foreign tax rate differential | (0.10%) | (1.50%) | 5.50% |
Domestic manufacturing deduction | (1.50%) | (3.00%) | (7.00%) |
Research and development tax credit | (1.40%) | (3.90%) | (8.40%) |
Law changes | 0.10% | 0.90% | (3.80%) |
Increases in valuation allowances | 0.80% | 1.10% | 2.10% |
Adjustments of prior years' income taxes | 0.20% | 3.30% | 1.30% |
Unremitted earnings of foreign subsidiaries | (0.20%) | (1.20%) | 12.70% |
Non-deductible goodwill impairment | 0.00% | 0.00% | 5.10% |
Re-measurement of U.S. deferred taxes | (49.30%) | 0.00% | 0.00% |
Transition tax on foreign earnings | 3.10% | 0.00% | 0.00% |
Other, net | (0.10%) | 0.30% | 2.70% |
Effective income tax rate | (17.70%) | 33.00% | 47.40% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred tax assets: | ||
Pensions | $ 66.8 | $ 139.8 |
Postretirement provisions | 33.7 | 54.4 |
Net operating loss carryforwards | 26.5 | 23.1 |
Derivatives and hedging activities | 0 | 2.4 |
Other | 29.4 | 44.8 |
Gross deferred tax assets | 156.4 | 264.5 |
Valuation allowances | (23.9) | (18.5) |
Total deferred tax assets | 132.5 | 246 |
Deferred tax liabilities: | ||
Depreciation | (235.2) | (347.5) |
Intangible assets | (11.9) | (19.4) |
Inventories | (30.5) | (50.1) |
Derivatives and hedging activities | (8.7) | 0 |
Other | (3.5) | (6.2) |
Total deferred tax liabilities | (289.8) | (423.2) |
Deferred tax liabilities, net | $ (157.3) | $ (177.2) |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Income and Expenses [Abstract] | |||
Unrealized gains (losses) on company owned life insurance contracts and investments held in rabbi trusts | $ 1.5 | $ 1.7 | $ (0.5) |
Interest income | 0.3 | 0.3 | 0.2 |
Equity in earnings of unconsolidated subsidiaries | 0 | 0 | 0.6 |
Foreign exchange | (0.6) | (0.4) | (2.4) |
Other | 0.2 | 1.2 | 0 |
Total other income (expense), net | $ 1.4 | $ 2.8 | $ (2.1) |
Segment Information, Geograp103
Segment Information, Geographic and Product Data - Narrative (Details) - segment | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments (segment) | 2 | ||
Sales Revenue | Customer | Arconic | |||
Segment Reporting Information [Line Items] | |||
Concentration risk | 12.00% | 11.00% | 13.00% |
Segment Information, Geograp104
Segment Information, Geographic and Product Data - Schedule of Results of Operation, Depreciation and Amortization, Capital Expenditures and Total Assets by Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Consolidated net sales | $ 618 | $ 572.2 | $ 487.8 | $ 479.8 | $ 507.7 | $ 473.6 | $ 427.4 | $ 389 | $ 2,157.7 | $ 1,797.6 | $ 1,813.4 |
Consolidated operating income | 59.4 | $ 45.2 | $ 40.8 | $ 41.7 | 44.6 | $ 35.8 | $ 15.4 | $ 1.4 | 187.1 | 97.2 | 51.6 |
Consolidated depreciation and amortization | 116.6 | 117.8 | 119.3 | ||||||||
Consolidated capital expenditures | 135 | 98.5 | 95.2 | ||||||||
Consolidated total assets | 3,007 | 2,878.1 | 3,007 | 2,878.1 | |||||||
Operating | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Pension earnings, interest and deferrals | (2.1) | (23.8) | (19.3) | ||||||||
Corporate costs (including loss on divestiture of business, restructuring and impairment charges) | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating income | (66.4) | (61.3) | (103) | ||||||||
Consolidated depreciation and amortization | 3.9 | 4 | 3.8 | ||||||||
Consolidated capital expenditures | 41.6 | 29.7 | 8.6 | ||||||||
Consolidated total assets | 193.2 | 167.2 | 193.2 | 167.2 | |||||||
Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated net sales | (75.8) | (30.6) | (26.3) | ||||||||
Consolidated operating income | (2.9) | 1.5 | 2.5 | ||||||||
Consolidated depreciation and amortization | (0.8) | (0.8) | (0.8) | ||||||||
Consolidated capital expenditures | (1.8) | (0.4) | (0.2) | ||||||||
Consolidated total assets | (11.9) | (15.5) | (11.9) | (15.5) | |||||||
Specialty Alloys Operations | Operating | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated net sales | 1,803.8 | 1,461.6 | 1,481 | ||||||||
Consolidated operating income | 232.4 | 172.3 | 176.9 | ||||||||
Consolidated depreciation and amortization | 93.3 | 94 | 94.4 | ||||||||
Consolidated capital expenditures | 63.6 | 52.2 | 67 | ||||||||
Consolidated total assets | 2,312.1 | 2,292.1 | 2,312.1 | 2,292.1 | |||||||
Performance Engineered Products | Operating | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated net sales | 429.7 | 366.6 | 358.7 | ||||||||
Consolidated operating income | 26.1 | 8.5 | (5.5) | ||||||||
Consolidated depreciation and amortization | 20.2 | 20.6 | 21.9 | ||||||||
Consolidated capital expenditures | 31.6 | 17 | $ 19.8 | ||||||||
Consolidated total assets | $ 513.6 | $ 434.3 | $ 513.6 | $ 434.3 |
Segment Information, Geograp105
Segment Information, Geographic and Product Data - Schedule of Net Sales by Geographic Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Geographic Data | |||||||||||
Net sales | $ 618 | $ 572.2 | $ 487.8 | $ 479.8 | $ 507.7 | $ 473.6 | $ 427.4 | $ 389 | $ 2,157.7 | $ 1,797.6 | $ 1,813.4 |
United States | |||||||||||
Geographic Data | |||||||||||
Net sales | 1,429.4 | 1,198.3 | 1,243.5 | ||||||||
Europe | |||||||||||
Geographic Data | |||||||||||
Net sales | 383 | 349.6 | 321.4 | ||||||||
Asia Pacific | |||||||||||
Geographic Data | |||||||||||
Net sales | 174.8 | 127.2 | 129.5 | ||||||||
Canada | |||||||||||
Geographic Data | |||||||||||
Net sales | 65.7 | 47.7 | 44.9 | ||||||||
Mexico | |||||||||||
Geographic Data | |||||||||||
Net sales | 61.7 | 48.5 | 46.7 | ||||||||
Other | |||||||||||
Geographic Data | |||||||||||
Net sales | $ 43.1 | $ 26.3 | $ 27.4 |
Segment Information, Geograp106
Segment Information, Geographic and Product Data - Schedule of Long-lived Assets by Geographic Segment (Details) - USD ($) $ in Millions | Jun. 30, 2018 | Jun. 30, 2017 |
Geographic Data | ||
Long-lived assets | $ 1,313.4 | $ 1,316.8 |
United States | ||
Geographic Data | ||
Long-lived assets | 1,286.4 | 1,290.7 |
Asia Pacific | ||
Geographic Data | ||
Long-lived assets | 15.4 | 15.3 |
Canada | ||
Geographic Data | ||
Long-lived assets | 6.3 | 5.6 |
Europe | ||
Geographic Data | ||
Long-lived assets | 3.9 | 4 |
Mexico | ||
Geographic Data | ||
Long-lived assets | $ 1.4 | $ 1.2 |
Reclassifications from Accum107
Reclassifications from Accumulated Other Comprehensive (Loss) Income - Schedule of Changes in AOCI by Component, Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Changes in the balance of Accumulated Other Comprehensive Income | ||
Balances, beginning of period | $ 1,198.6 | $ 1,104.9 |
Balances, end of period | 1,485.9 | 1,198.6 |
Cash flow hedging items | ||
Changes in the balance of Accumulated Other Comprehensive Income | ||
Balances, beginning of period | (2.3) | (21.8) |
Other comprehensive income (loss) before reclassifications | 26.9 | 5.7 |
Amounts reclassified from AOCI | (0.8) | 13.8 |
Net current-period other comprehensive (loss) income | 26.1 | 19.5 |
Balances, end of period | 23.8 | (2.3) |
Pension and other postretirement benefit plan items | ||
Changes in the balance of Accumulated Other Comprehensive Income | ||
Balances, beginning of period | (299) | (344.3) |
Other comprehensive income (loss) before reclassifications | 69.7 | 22.4 |
Amounts reclassified from AOCI | 8.9 | 22.9 |
Net current-period other comprehensive (loss) income | 78.6 | 45.3 |
Balances, end of period | (220.4) | (299) |
Unrealized losses on available-for-sale securities | ||
Changes in the balance of Accumulated Other Comprehensive Income | ||
Balances, beginning of period | (0.3) | (0.3) |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 |
Net current-period other comprehensive (loss) income | 0 | 0 |
Balances, end of period | (0.3) | (0.3) |
Foreign currency items | ||
Changes in the balance of Accumulated Other Comprehensive Income | ||
Balances, beginning of period | (41.5) | (43.5) |
Other comprehensive income (loss) before reclassifications | (1.4) | 2 |
Amounts reclassified from AOCI | 0 | 0 |
Net current-period other comprehensive (loss) income | (1.4) | 2 |
Balances, end of period | (42.9) | (41.5) |
Total | ||
Changes in the balance of Accumulated Other Comprehensive Income | ||
Balances, beginning of period | (343.1) | (409.9) |
Other comprehensive income (loss) before reclassifications | 95.2 | 30.1 |
Amounts reclassified from AOCI | 8.1 | 36.7 |
Net current-period other comprehensive (loss) income | 103.3 | 66.8 |
Balances, end of period | $ (239.8) | $ (343.1) |
Reclassifications from Accum108
Reclassifications from Accumulated Other Comprehensive (Loss) Income - Schedule of Amounts Reclassified from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Amount reclassified from AOCI | |||||||||||
Cost of sales | $ 1,775.5 | $ 1,513.3 | $ 1,535 | ||||||||
Net sales | $ 618 | $ 572.2 | $ 487.8 | $ 479.8 | $ 507.7 | $ 473.6 | $ 427.4 | $ 389 | 2,157.7 | 1,797.6 | 1,813.4 |
Interest expense | 28.3 | 29.8 | 28 | ||||||||
Income before income taxes | 160.2 | 70.2 | 21.5 | ||||||||
Tax (expense) benefit | 28.3 | (23.2) | (10.2) | ||||||||
Net income | $ 42.8 | $ 30.2 | $ 92.1 | $ 23.4 | $ 25.5 | $ 20.7 | $ 7 | $ (6.2) | 188.5 | 47 | $ 11.3 |
Cash flow hedging items | |||||||||||
Amount reclassified from AOCI | |||||||||||
Net of tax | 0.8 | (13.8) | |||||||||
Cash flow hedging items | Amount Reclassified from AOCI | |||||||||||
Amount reclassified from AOCI | |||||||||||
Income before income taxes | 1.2 | (21.9) | |||||||||
Tax (expense) benefit | (0.4) | 8.1 | |||||||||
Net income | 0.8 | (13.8) | |||||||||
Cash flow hedging items | Amount Reclassified from AOCI | Commodity contracts | |||||||||||
Amount reclassified from AOCI | |||||||||||
Cost of sales | 1.8 | (22.8) | |||||||||
Cash flow hedging items | Amount Reclassified from AOCI | Foreign exchange contracts | |||||||||||
Amount reclassified from AOCI | |||||||||||
Net sales | (1) | 0.5 | |||||||||
Cash flow hedging items | Amount Reclassified from AOCI | Forward interest rate swaps | |||||||||||
Amount reclassified from AOCI | |||||||||||
Interest expense | 0.4 | 0.4 | |||||||||
Net actuarial loss | |||||||||||
Amount reclassified from AOCI | |||||||||||
Net actuarial loss | (16.4) | (41) | |||||||||
Prior service cost | |||||||||||
Amount reclassified from AOCI | |||||||||||
Net actuarial loss | 3.1 | 4.7 | |||||||||
Amortization of pension and other postretirement benefit plan items | |||||||||||
Amount reclassified from AOCI | |||||||||||
Net actuarial loss | (13.3) | (36.3) | |||||||||
Tax benefit | 4.4 | 13.4 | |||||||||
Net of tax | $ (8.9) | $ (22.9) |
Supplemental Data (Details)
Supplemental Data (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Cost Data: | |||
Repairs and maintenance costs | $ 108 | $ 99.1 | $ 101.8 |
Noncash investing and financing activities: | |||
Sale of equity method investment | 0 | 0 | 12.6 |
Noncash purchases of property, equipment and software | 16.5 | 13.7 | 15.1 |
Cash paid (received) during the year for: | |||
Interest payments, net | 29.5 | 27.7 | 27.5 |
Income tax payments (refunds), net | $ 33.7 | $ (33.3) | $ 27.9 |
Quarterly Financial Data (Un110
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Results of Operations | |||||||||||
Net sales | $ 618 | $ 572.2 | $ 487.8 | $ 479.8 | $ 507.7 | $ 473.6 | $ 427.4 | $ 389 | $ 2,157.7 | $ 1,797.6 | $ 1,813.4 |
Gross profit | 114.9 | 96 | 85.7 | 85.6 | 92.7 | 83.1 | 62.5 | 46 | 382.2 | 284.3 | 255.9 |
Operating income (loss) | 59.4 | 45.2 | 40.8 | 41.7 | 44.6 | 35.8 | 15.4 | 1.4 | 187.1 | 97.2 | 51.6 |
Net income (loss) | $ 42.8 | $ 30.2 | $ 92.1 | $ 23.4 | $ 25.5 | $ 20.7 | $ 7 | $ (6.2) | $ 188.5 | $ 47 | $ 11.3 |
Earnings (Loss) per common share | |||||||||||
Basic (in dollars per share) | $ 0.90 | $ 0.63 | $ 1.93 | $ 0.49 | $ 0.54 | $ 0.44 | $ 0.15 | $ (0.13) | $ 3.96 | $ 0.99 | $ 0.23 |
Diluted (in dollars per share) | $ 0.88 | $ 0.63 | $ 1.92 | $ 0.49 | $ 0.54 | $ 0.44 | $ 0.15 | $ (0.13) | $ 3.92 | $ 0.99 | $ 0.23 |
Weighted average common shares outstanding | |||||||||||
Basic (in shares) | 47.4 | 47.2 | 47.2 | 47.1 | 47.1 | 47 | 47 | 46.9 | 47.2 | 47 | 48.1 |
Diluted (in shares) | 48 | 47.7 | 47.6 | 47.3 | 47.1 | 47.1 | 47.1 | 46.9 | 47.6 | 47.1 | 48.2 |
SCHEDULE II. VALUATION AND Q111
SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Allowance for doubtful accounts receivable | |||
Valuation accounts activity | |||
Balance at Beginning of Period | $ 2.6 | $ 4.1 | $ 3.8 |
Charged to Costs & Expenses | 0.1 | (1) | 1.2 |
Charged to Other Accounts | (0.1) | 0 | 0 |
Deductions | 0 | (0.5) | (0.9) |
Balance at End of Period | 2.6 | 2.6 | 4.1 |
Deferred tax valuation allowance | |||
Valuation accounts activity | |||
Balance at Beginning of Period | 18.5 | 17.7 | 17.5 |
Charged to Costs & Expenses | 4.9 | 0.8 | 0.2 |
Charged to Other Accounts | 0.5 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 23.9 | $ 18.5 | $ 17.7 |