Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 31, 2020 | Jan. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-5828 | |
Entity Registrant Name | CARPENTER TECHNOLOGY CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 23-0458500 | |
Entity Address, Address Line One | 1735 Market Street | |
Entity Address, Address Line Two | 15th Floor | |
Entity Address, City or Town | Philadelphia | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19103 | |
City Area Code | 610 | |
Local Phone Number | 208-2000 | |
Title of 12(b) Security | Common Stock, $5 Par Value | |
Trading Symbol | CRS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 48,025,970 | |
Entity Central Index Key | 0000017843 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 271.4 | $ 193.1 |
Accounts receivable, net | 230.3 | 292.3 |
Inventories | 565.1 | 724.3 |
Other current assets | 85.8 | 56.6 |
Total current assets | 1,152.6 | 1,266.3 |
Property, plant and equipment, net | 1,326.1 | 1,351.1 |
Goodwill | 241.4 | 290.4 |
Other intangibles, net | 45.4 | 52.1 |
Deferred income taxes | 5.1 | 4.9 |
Other assets | 273.3 | 262.4 |
Total assets | 3,043.9 | 3,227.2 |
Current liabilities: | ||
Short-term credit agreement borrowings | 0 | 170 |
Accounts payable | 108.4 | 124.2 |
Accrued liabilities | 157.4 | 157.9 |
Total current liabilities | 265.8 | 452.1 |
Long-term debt | 694 | 551.8 |
Accrued pension liabilities | 375.2 | 399.5 |
Accrued postretirement benefits | 138 | 137.4 |
Deferred income taxes | 127.5 | 130.2 |
Other liabilities | 110.5 | 110.5 |
Total liabilities | 1,711 | 1,781.5 |
Contingencies and commitments (see Note 12) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock — authorized 100,000,000 shares; issued 56,012,748 shares at December 31, 2020 and 56,012,748 shares at June 30, 2020; outstanding 48,024,702 shares at December 31, 2020 and 47,850,468 shares at June 30, 2020 | 280.1 | 280.1 |
Capital in excess of par value | 317 | 321.4 |
Reinvested earnings | 1,416.5 | 1,568 |
Common stock in treasury (7,988,046 shares and 8,162,280 shares at December 31, 2020 and June 30, 2020, respectively), at cost | (317.6) | (325.8) |
Accumulated other comprehensive loss | (363.1) | (398) |
Total stockholders' equity | 1,332.9 | 1,445.7 |
Total liabilities and stockholders' equity | $ 3,043.9 | $ 3,227.2 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Dec. 31, 2020 | Jun. 30, 2020 |
STOCKHOLDERS’ EQUITY | ||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 56,012,748 | 56,012,748 |
Common stock outstanding (in shares) | 48,024,702 | 47,850,468 |
Common stock in treasury (in shares) | 7,988,046 | 8,162,280 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 348.8 | $ 573 | $ 702.1 | $ 1,158.4 |
Cost of sales | 342.8 | 460.4 | 692.6 | 933.1 |
Gross profit | 6 | 112.6 | 9.5 | 225.3 |
Selling, general and administrative expenses | 42.2 | 55.3 | 84.5 | 108.2 |
Restructuring and asset impairment charges | 0 | 2.3 | 10 | 2.3 |
Goodwill impairment | 52.8 | 0 | 52.8 | 0 |
Operating (loss) income | (89) | 55 | (137.8) | 114.8 |
Interest expense, net | (7.9) | (5.3) | (14.6) | (10.7) |
Debt extinguishment losses, net | 0 | 0 | (8.2) | 0 |
Other income (expense), net | 1.3 | 0.8 | (1.1) | 0.5 |
(Loss) income before income taxes | (95.6) | 50.5 | (161.7) | 104.6 |
Income tax (benefit) expense | (10.7) | 11.7 | (29.7) | 24.6 |
Net (loss) income | $ (84.9) | $ 38.8 | $ (132) | $ 80 |
Earnings Per Share [Abstract] | ||||
Basic (in dollars per share) | $ (1.76) | $ 0.80 | $ (2.74) | $ 1.65 |
Diluted (in dollars per share) | $ (1.76) | $ 0.79 | $ (2.74) | $ 1.64 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic (in shares) | 48.3 | 48.1 | 48.3 | 48 |
Diluted (in shares) | 48.3 | 48.5 | 48.3 | 48.4 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (84.9) | $ 38.8 | $ (132) | $ 80 |
Other comprehensive (loss) income, net of tax | ||||
Pension and postretirement benefits, net of tax of $(1.1), $(1.0), $(2.2) and $(2.0), respectively | 3.6 | 3 | 7.2 | 6 |
Net gain (loss) on derivative instruments, net of tax of $(1.6), $6.1, $(4.3) and $(2.4), respectively | 4.9 | (19.1) | 13.2 | 7.6 |
Foreign currency translation gain | 8.8 | 7.4 | 14.5 | 1.9 |
Other comprehensive income (loss), net of tax | 17.3 | (8.7) | 34.9 | 15.5 |
Comprehensive (loss) income | $ (67.6) | $ 30.1 | $ (97.1) | $ 95.5 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and post-retirement benefits, tax expense | $ (1.1) | $ (1) | $ (2.2) | $ (2) |
Net gain on derivative instruments, tax benefit (expense) | $ (1.6) | $ 6.1 | $ (2.4) | $ (4.3) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
OPERATING ACTIVITIES | ||
Net (loss) income | $ (132) | $ 80 |
Adjustments to reconcile net (loss) income to net cash provided from operating activities: | ||
Debt extinguishment losses, net | 8.2 | 0 |
Depreciation and amortization | 59.6 | 61 |
Non-cash restructuring and asset impairment charges | 8.7 | 1.5 |
Deferred income taxes | (10.1) | 5.5 |
Net pension expense | 8.1 | 7.6 |
Goodwill impairment charge | 52.8 | 0 |
Share-based compensation expense | 5.4 | 8.5 |
Net loss on disposals of property, plant and equipment and assets held for sale | 0.1 | 0.1 |
Changes in working capital and other: | ||
Accounts receivable | 64.2 | 5 |
Inventories | 155.8 | (108.2) |
Other current assets | (26.8) | (12.9) |
Accounts payable | (13.1) | (1) |
Accrued liabilities | (3.1) | (17.1) |
Pension plan contributions | (4.7) | (3.6) |
Other postretirement plan contributions | (1.2) | (1.6) |
Other, net | (0.3) | (2.2) |
Net cash provided from operating activities | 171.6 | 22.6 |
INVESTING ACTIVITIES | ||
Purchases of property, plant, equipment and software | (59.9) | (94.3) |
Proceeds from disposals of property, plant and equipment and assets held for sale | 1.5 | 0.1 |
Proceeds from divestiture of business | 20 | 0 |
Net cash used for investing activities | (38.4) | (94.2) |
FINANCING ACTIVITIES | ||
Credit agreement borrowings | 0 | 114.6 |
Credit agreement repayments | 0 | (45.7) |
Net change in short-term credit agreement borrowings | (170) | 30.3 |
Payments on long-term debt | (250) | 0 |
Proceeds from issuance of long-term debt, net of offering costs | 395.5 | 0 |
Payments for debt extinguishment costs, net | (8.2) | 0 |
Payments for debt issue costs | (1.1) | 0 |
Dividends paid | (19.5) | (19.4) |
Proceeds from stock options exercised | 0 | 4.2 |
Withholding tax payments on share-based compensation awards | (2.2) | (7.7) |
Net cash (used for) provided from financing activities | (55.5) | 76.3 |
Effect of exchange rate changes on cash and cash equivalents | 0.6 | (1.8) |
INCREASE IN CASH AND CASH EQUIVALENTS | 78.3 | 2.9 |
Cash and cash equivalents at beginning of period | 193.1 | 27 |
Cash and cash equivalents at end of period | 271.4 | 29.9 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Non-cash investing activities: Purchase of property, plant, equipment and software | $ 8.7 | $ 12.5 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock, Par Value of $5 | Common Stock, Capital in Excess of Par Value | Reinvested Earnings | Common Stock in Treasury | Accumulated Other Comprehensive (Loss) Income |
Balances at the beginning of the period at Jun. 30, 2019 | $ 1,520.1 | $ 279 | $ 320.4 | $ 1,605.3 | $ (332.8) | $ (351.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 80 | 80 | ||||
Pension and postretirement benefits gain, net of tax | 6 | 6 | ||||
Net (loss) gain on derivative instruments, net of tax | 7.6 | 7.6 | ||||
Foreign currency translation gain | 1.9 | 1.9 | ||||
Cash Dividends: | ||||||
Common | (19.4) | (19.4) | ||||
Share-based compensation plans | 3 | 0.5 | (1.9) | 4.4 | ||
Stock options exercised | 4.2 | 0.6 | 3.6 | |||
Balances at the end of the period at Dec. 31, 2019 | 1,603.4 | 280.1 | 322.1 | 1,665.9 | (328.4) | (336.3) |
Balances at the beginning of the period at Sep. 30, 2019 | 1,577 | 279.8 | 317.5 | 1,636.8 | (329.5) | (327.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 38.8 | 38.8 | ||||
Pension and postretirement benefits gain, net of tax | 3 | 3 | ||||
Net (loss) gain on derivative instruments, net of tax | (19.1) | (19.1) | ||||
Foreign currency translation gain | 7.4 | 7.4 | ||||
Cash Dividends: | ||||||
Common | (9.7) | (9.7) | ||||
Share-based compensation plans | 4.3 | 3.2 | 1.1 | |||
Stock options exercised | 1.7 | 0.3 | 1.4 | |||
Balances at the end of the period at Dec. 31, 2019 | 1,603.4 | 280.1 | 322.1 | 1,665.9 | (328.4) | (336.3) |
Balances at the beginning of the period at Jun. 30, 2020 | 1,445.7 | 280.1 | 321.4 | 1,568 | (325.8) | (398) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (132) | (132) | ||||
Pension and postretirement benefits gain, net of tax | 7.2 | 7.2 | ||||
Net (loss) gain on derivative instruments, net of tax | 13.2 | 13.2 | ||||
Foreign currency translation gain | 14.5 | 14.5 | ||||
Cash Dividends: | ||||||
Common | (19.5) | (19.5) | ||||
Share-based compensation plans | 3.8 | (4.4) | 8.2 | |||
Balances at the end of the period at Dec. 31, 2020 | 1,332.9 | 280.1 | 317 | 1,416.5 | (317.6) | (363.1) |
Balances at the beginning of the period at Sep. 30, 2020 | 1,407.5 | 280.1 | 315.9 | 1,511.2 | (319.3) | (380.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (84.9) | (84.9) | ||||
Pension and postretirement benefits gain, net of tax | 3.6 | 3.6 | ||||
Net (loss) gain on derivative instruments, net of tax | 4.9 | 4.9 | ||||
Foreign currency translation gain | 8.8 | 8.8 | ||||
Cash Dividends: | ||||||
Common | (9.8) | (9.8) | ||||
Share-based compensation plans | 2.8 | 1.1 | 1.7 | |||
Balances at the end of the period at Dec. 31, 2020 | $ 1,332.9 | $ 280.1 | $ 317 | $ 1,416.5 | $ (317.6) | $ (363.1) |
CONSOLIDATED STATEMENT OF CHA_2
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, par value (in dollars per share) | $ 5 | $ 5 | $ 5 | $ 5 |
Cash dividends per common share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.40 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, considered necessary for a fair statement of the results are reflected in the interim periods presented. The June 30, 2020 consolidated balance sheet data was derived from audited financial statements, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in Carpenter Technology’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020 (the “2020 Form 10-K”). Operating results for the three and six months ended December 31, 2020 are not necessarily indicative of the operating results for any future period. Certain amounts in the consolidated statement of operations as presented in Carpenter Technology’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 have been reclassified to conform to the current quarter presentation. As used throughout this report, unless the context requires otherwise, the terms “Carpenter”, “Carpenter Technology”, the “Company”, “Registrant”, “Issuer”, “we” and “our” refer to Carpenter Technology Corporation. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 6 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges Restructuring and asset impairment charges for the three and six months ended December 31, 2020 wer e $0.0 million and $10.0 million, respectively . There we re $2.3 million of restructuring and asset impairment charges for the three and six months ended December 31, 2019. During the first quarter ended September 30, 2020, the Company initiated a restructuring plan to consolidate certain operations within the Additive business in the Performance Engineered Products "PEP" segment. This included $8.7 million of non-cash impairment charges related primarily to certain long-lived assets and certain definite-lived intangible assets. The Company also recognized $1.3 million of charges primarily related to various personnel-related costs for severance payments, medical coverage and related items. In the fourth quarter of fiscal year 2020, the Company approved actions to reduce overhead costs and position the Company to drive long-term, profitable growth. These actions included implementing a restructuring plan aimed at reducing fixed costs by eliminating 20 percent of global salaried positions across all business segments. The restructuring charge consisted primarily of various personnel-related costs for severance payments, medical coverage and related items. In addition, the Company also recorded non-cash asset impairment charges related to the closure of two domestic powder facilities in the PEP segment, non-cash asset impairment charges related to the decision to exit the Amega West business, and a non-cash write-down of software that will no longer be implemented at a particular business unit. At this time, the Company does not expect any additional charges related to these restructuring actions in the future. The reserve balances and activity for restructuring charges at December 31, 2020 were as follows: ($ in millions) Reserve Balance Reserve balance at June 30, 2020 $ 9.5 Restructuring charges 1.3 Cash payments (8.2) Reserve balance at December 31, 2020 $ 2.6 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements - Adopted in current fiscal year At this time there are no issued pronouncements adopted in the current fiscal year that would materially impact the Company. Recently Issued Accounting Pronouncements - Pending Adoption In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848). The guidance in ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating the potential impact of the adoption of ASU 2020-04 on the consolidated financial statements. |
Revenue
Revenue | 6 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company recognizes revenue in accordance with Topic 606, Revenue from Contracts. The Company applies the five-step model in the FASB’s guidance, which requires the Company to: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the Company satisfies a performance obligation. The Company recognizes revenue when performance obligations under the terms of a customer purchase order or contract are satisfied. This occurs when control of the goods and services has transferred to the customer, which is generally determined when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product or the service is performed. Consignment transactions are arrangements where the Company transfers product to a customer location but retains ownership and control of such product until it is used by the customer. Revenue for consignment arrangements is recognized upon usage by the customer. Service revenue is recognized as the services are performed. Each customer purchase order or contract for goods transferred has a single performance obligation for which revenue is recognized at a point in time. The standard terms and conditions of a customer purchase order include general rights of return and product warranty provisions related to nonconforming product. Depending on the circumstances, the product is either replaced or a quality adjustment is issued. Such warranties do not represent a separate performance obligation. Each customer purchase order or contract sets forth the transaction price for the products and services purchased under that arrangement. Some customer arrangements include variable consideration, such as volume rebates, which generally depend upon the Company’s customers meeting specified performance criteria, such as a purchasing level over a period of time. The Company exercises judgment to estimate the most likely amount of variable consideration at each reporting date. Revenue is measured as the amount of consideration the Company expects to receive in exchange for its product. The standard payment terms are 30 days. The Company has elected to use the practical expedient that permits a Company to not adjust for the effects of a significant financing component if it expects that at the contract inception, the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Amounts billed to customers for shipping and handling activities to fulfill the Company’s promise to transfer the goods are included in revenues and costs incurred by the Company for the delivery of goods and are classified as cost of sales in the consolidated statement of operations. 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. Contract liabilities are recognized when the Company has received consideration from a customer to transfer goods or services at a future point in time when the Company performs under the purchase order or contract. Contract liabilities were $5.5 million and $12.3 million at December 31, 2020 and June 30, 2020, respectively, and are included in accrued liabilities on the consolidated balance sheets. The Company has elected to use the practical expedient that permits the omission of disclosure for remaining performance obligations which are expected to be satisfied in one year or less. Disaggregation of Revenue The Company operates in two business segments, Specialty Alloys Operations (“SAO”) and Performance Engineered Products ("PEP"). Revenue is disaggregated within these two business segments by diversified end-use markets and by geographical location. Comparative information of the Company’s overall revenues by end-use markets and geography for the three and six months ended December 31, 2020 and 2019 were as follows: End-Use Market Data Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Aerospace and Defense $ 174.5 $ 348.7 $ 346.4 $ 702.0 Medical 32.4 49.0 65.2 98.0 Transportation 31.6 38.4 60.8 78.4 Energy 22.1 31.2 47.2 70.5 Industrial and Consumer 66.0 78.0 139.4 151.3 Distribution 22.2 27.7 43.1 58.2 Consolidated net sales $ 348.8 $ 573.0 $ 702.1 $ 1,158.4 Geographic Data Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 United States $ 208.2 $ 370.9 $ 432.9 $ 755.8 Europe 68.1 93.8 129.3 195.2 Asia Pacific 48.9 67.8 86.8 121.1 Mexico 10.7 15.6 23.9 37.5 Canada 7.1 16.0 14.9 29.4 Other 5.8 8.9 14.3 19.4 Consolidated net sales $ 348.8 $ 573.0 $ 702.1 $ 1,158.4 |
Divestiture
Divestiture | 6 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Divestiture | Divestiture On September 30, 2020, the Company divested the Amega West business for a total sale price of $20.0 million. In connection with the divestiture, the Company received $17.6 million of cash in the quarter ended September 30, 2020 and the remaining $2.4 million of cash in the quarter ended December 31, 2020. The operations of the Amega West business were historically included in our PEP segment and the Energy end-use market. The Company does not have any significant continuing involvement in the operations of Amega West after the divestiture. |
Earnings (Loss) per Common Shar
Earnings (Loss) per Common Share | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Common Share | Earnings (Loss) per Common Share The Company calculates basic and diluted (loss) earnings per share using the two class method. Under the two class method, (loss) earnings are allocated to common stock and participating securities (non-vested restricted shares and units that receive non-forfeitable dividends) according to their participation rights in dividends and undistributed earnings. The (loss) earnings available to each class of stock are divided by the weighted average number of outstanding shares for the period in each class. Diluted (loss) earnings per share assumes the issuance of common stock for all potentially dilutive share equivalents outstanding. For the three and six months ended December 31, 2020, the Company incurred a net loss and accordingly excluded all potentially dilutive securities from the determination of diluted loss per share as their impact was anti-dilutive. The calculations of basic and diluted (loss) earnings per common share for the three and six months ended December 31, 2020 and 2019 were as follows: Three Months Ended Six Months Ended (in millions, except per share data) 2020 2019 2020 2019 Net (loss) income $ (84.9) $ 38.8 $ (132.0) $ 80.0 Less: (loss) earnings and dividends allocated to participating securities (0.2) (0.4) (0.2) (0.8) (Loss) earnings available for common stockholders used in calculation of basic (loss) earnings per common share $ (85.1) $ 38.4 $ (132.2) $ 79.2 Weighted average number of common shares outstanding, basic 48.3 48.1 48.3 48.0 Basic (loss) earnings per common share $ (1.76) $ 0.80 $ (2.74) $ 1.65 Net (loss) income $ (84.9) $ 38.8 $ (132.0) $ 80.0 Less: (loss) earnings and dividends allocated to participating securities (0.2) (0.4) (0.2) (0.8) (Loss) earnings available for common stockholders used in calculation of diluted (loss) earnings per common share $ (85.1) $ 38.4 $ (132.2) $ 79.2 Weighted average number of common shares outstanding, basic 48.3 48.1 48.3 48.0 Effect of shares issuable under share-based compensation plans — 0.4 — 0.4 Weighted average number of common shares outstanding, diluted 48.3 48.5 48.3 48.4 Diluted (loss) earnings per common share $ (1.76) $ 0.79 $ (2.74) $ 1.64 The following awards issued under share-based compensation plans were excluded from the above calculations of diluted earnings per share because their effects were anti-dilutive: Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Stock options 2.2 0.6 2.1 0.8 |
Inventories
Inventories | 6 Months Ended |
Dec. 31, 2020 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories consisted of the following components as of December 31, 2020 and June 30, 2020: ($ in millions) December 31, June 30, Raw materials and supplies $ 174.4 $ 217.6 Work in process 244.3 312.3 Finished and purchased products 146.4 194.4 Total inventories $ 565.1 $ 724.3 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 6 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Goodwill As of July 1, 2020, the Company had four reporting units with goodwill recorded. Goodwill associated with the SAO reporting unit is tested at the SAO segment level and represented approximately 67 percent of total goodwill prior to the impairment charge recognized in the quarter ended December 31, 2020. All other goodwill is associated with the PEP segment, which included three reporting units with goodwill recorded. The fair value is estimated using a weighting of discounted cash flows and the use of market multiples valuation techniques for the SAO reporting unit and two of the PEP segment reporting units. The fair value for the Additive reporting unit is estimated using a discounted cash flow technique. 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. In preparing the financial statements for the quarter ended December 31, 2020, the Company identified an impairment triggering event related to the Additive reporting unit within the PEP segment. This reporting unit has experienced slower than expected growth due to customers shifting their near-term focus away from this emerging area as a result of the continuing impacts of the COVID-19 pandemic. During the quarter ended December 31, 2020 the Company also made strategic decisions to reduce resources allocated to the Additive reporting unit to concentrate on the essential manufacturing business. In light of these decisions and current market conditions, the pace of growth in the future projections for the Company's Additive reporting unit were lowered. The Company determined the goodwill associated with the Additive reporting unit was impaired and recorded an impairment charge of $52.8 million during the quarter ended December 31, 2020, which represents the entire balance of goodwill. This reporting unit is within the PEP segment and at December 31, 2020 the remaining goodwill related to the PEP segment was $45.9 million. The Company continuously monitors for events and circumstances that could negatively impact the key assumptions in determining fair value of the reporting units. Given the evolving nature of and uncertainty driven by the COVID-19 pandemic, the Company will continue to evaluate the impact on the reporting units as adverse changes to these assumptions could result in future impairments. After the impairment loss recognized during the quarter ended December 31, 2020, the Company has three reporting units with goodwill recorded. Goodwill associated with the SAO reporting unit represents approximately 81 percent of total goodwill. The remaining goodwill is associated with the PEP segment, which includes two reporting units with goodwill recorded. Accumulated goodwill impairment losses of $134.6 million are related to the PEP segment and $0.0 million to the SAO segment, respectively. The changes in the carrying amount of goodwill by reportable segment for the six months ended were as follows: ($ in millions) June 30, 2020 Impairment Other December 31, 2020 Goodwill $ 372.2 $ — $ 3.8 $ 376.0 Accumulated impairment losses (81.8) (52.8) — (134.6) Total goodwill $ 290.4 $ (52.8) $ 3.8 $ 241.4 Specialty Alloy Operations $ 195.5 $ — $ — $ 195.5 Performance Engineered Products 94.9 (52.8) 3.8 45.9 Total goodwill $ 290.4 $ (52.8) $ 3.8 $ 241.4 Other Intangible Assets, Net June 30, 2020 December 31, 2020 ($ in millions) Useful Life (in Years) Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Trademarks and trade names 15 - 30 $ 33.5 $ (25.4) $ (1.5) $ 6.6 $ 33.5 $ (26.0) $ (1.5) $ 6.0 Customer relationships 10 - 15 76.9 (41.2) (1.2) 34.5 76.9 (43.6) (4.2) 29.1 Non-compete agreements 5 0.2 (0.1) (0.1) — 0.2 (0.1) (0.1) — Technology 15 7.3 (1.5) (4.5) 1.3 7.3 (1.5) (5.8) — Patents 14 - 20 11.4 (1.7) — 9.7 11.4 (1.1) — 10.3 Total $ 129.3 $ (69.9) $ (7.3) $ 52.1 $ 129.3 $ (72.3) $ (11.6) $ 45.4 |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following as of December 31, 2020 and June 30, 2020: ($ in millions) December 31, June 30, Accrued compensation and benefits $ 44.7 $ 50.4 Accrued pension liabilities 34.8 20.2 Accrued interest expense 15.6 10.4 Accrued postretirement benefits 14.0 14.0 Current portion of lease liabilities 10.7 11.5 Derivative financial instruments 7.2 11.1 Contract liabilities 5.5 12.3 Accrued income taxes 0.8 1.0 Other 24.1 27.0 Total accrued liabilities $ 157.4 $ 157.9 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 6 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The components of the net periodic benefit cost related to the Company’s pension and other postretirement benefits for the three and six months ended December 31, 2020 and 2019 were as follows: Three months ended December 31, Pension Plans Other Postretirement Plans ($ in millions) 2020 2019 2020 2019 Service cost $ 2.4 $ 2.4 $ 0.6 $ 0.7 Interest cost 9.9 11.7 1.9 2.3 Expected return on plan assets (13.9) (15.5) (1.6) (1.8) Amortization of net loss 4.3 3.9 0.9 0.6 Amortization of prior service cost (benefit) 0.5 0.5 (1.0) (1.0) Net periodic benefit costs $ 3.2 $ 3.0 $ 0.8 $ 0.8 Six months ended December 31, Pension Plans Other Postretirement Plans ($ in millions) 2020 2019 2020 2019 Service cost $ 4.8 $ 4.9 $ 1.4 $ 1.4 Interest cost 19.8 23.4 3.8 4.6 Expected return on plan assets (27.8) (31.1) (3.3) (3.6) Amortization of net loss 8.6 7.8 1.8 1.2 Amortization of prior service cost (benefit) 1.0 1.0 (2.0) (2.0) Net periodic benefit costs $ 6.4 $ 6.0 $ 1.7 $ 1.6 During the six months ended December 31, 2020 and 2019, the Company made $4.7 million and $3.6 million, respectively, of contributions to its qualified defined benefit pension plans. The Company currently expects to contribute $15.0 million to its qualified defined benefit pension plans during the remainder of fiscal year 2021. |
Debt
Debt | 6 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt On July 10, 2020, the Company completed its offering and sale of $400 million in aggregate principal amount of 6.375% Senior Notes due 2028 (the “Notes”). The Notes accrue interest at the rate of 6.375% per annum, with interest payable in cash semi-annually in arrears on each January 15 and July 15, commencing January 15, 2021. The Notes will mature on July 15, 2028. The Notes are senior unsecured indebtedness of the Company, ranking equally in right of payment with all its existing and future senior unsecured indebtedness and senior to any future subordinated indebtedness. The Company utilized a portion of the net proceeds from the issuance of the Notes to repay in full $250.0 million in aggregate principal amount of its senior unsecured notes due July 2021. The Company used or intends to use the remaining net proceeds from the issuance of the Notes for general corporate purposes. The Company maintains a $400.0 million unsecured revolving 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 are determined based upon the credit 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% (1.25% as of December 31, 2020), and for Base Rate-determined loans, from 0.00% to 0.75% (0.25% as of December 31, 2020). The Company also pays a quarterly commitment fee ranging from 0.125% to 0.400% (0.20% as of December 31, 2020), 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 December 31, 2020), 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 December 31, 2020, the Company had $6.0 million of issued letters of credit and no short-term borrowings under the Credit Agreement with the balance of $394.0 million available to the Company. As of December 31, 2020, the borrowing rate for the Credit Agreement was 1.65%. The Company is subject to certain financial and restrictive covenants under the Credit Agreement, which, among other things, require the maintenance of a minimum interest coverage ratio of 3.50 to 1.00. The interest coverage ratio is defined in the Credit Agreement as, for any period, the ratio of consolidated earnings before interest, taxes, depreciation and amortization and non-cash net pension expense (“EBITDA”) to consolidated interest expense for such period. The Credit Agreement also requires the Company to maintain a debt to capital ratio of less than 55 percent. The debt to capital ratio is defined in the Credit Agreement as the ratio of consolidated indebtedness, as defined therein, to consolidated capitalization, as defined therein. As of December 31, 2020 and June 30, 2020, the Company was in compliance with all of the covenants of the Credit Agreement. Long-term debt outstanding as of December 31, 2020 and June 30, 2020 consisted of the following: ($ in millions) December 31, June 30, Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at June 30, 2020) $ — $ 252.3 Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at December 31, 2020 and June 30, 2020) 299.3 299.5 Senior unsecured notes, 6.375% due July 2028 (face value of $400.0 million at December 31, 2020) 394.7 — Total 694.0 551.8 Less: amounts due within one year — — Long-term debt, net of current portion $ 694.0 $ 551.8 For the three months ended December 31, 2020 and 2019, interest costs totaled $10.9 million and $7.5 million, respectively, of which $3.0 million and $2.2 million, respectively, were capitalized as part of the cost of property, plant, equipment and software. |
Contingencies and Commitments
Contingencies and Commitments | 6 Months Ended |
Dec. 31, 2020 | |
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. 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. During the six months ended December 31, 2020, the Company increased the liability for a company-owned former operating site by $0.1 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 December 31, 2020 and June 30, 2020 were $16.1 million and $16.0 million, respectively. 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, the Company 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. Estimates of the amount and timing of future costs of environmental remediation requirements are inherently imprecise because of the continuing evolution of environmental laws and regulatory requirements, the availability and application of technology, the identification of currently unknown remediation sites and the allocation of costs among the PRPs. Based upon information currently available, such future costs are not expected to have a material effect on the Company's financial position, results of operations or cash flows over the long-term. However, such costs could be material to the Company's financial position, results of operations or cash flows in a particular future quarter or year. 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 such as asbestos. 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. |
Leases
Leases | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company records right-of-use "ROU" assets and operating lease liabilities on the consolidated balance sheet for several types of operating leases, including land and buildings, equipment (e.g. trucks and forklifts), vehicles and computer equipment. On the lease commencement date, the Company measures and records a ROU asset and lease liability equal to the present value of the remaining lease payments, discounted using the rate implicit in the lease (or if that rate cannot be readily determined, the Company’s incremental borrowing rate). Operating leases are included in other assets accrued liabilities other liabilities The Company elected the practical expedient to not separate lease components from nonlease components for all asset classes. The Company recognizes lease expense in the consolidated statements of operations on a straight-line basis over the lease term. The Company elected to not recognize ROU assets and lease liabilities for short-term leases with an initial term of 12 months or less for all asset classes. Leases with the option to extend their term or terminate early are reflected in the lease term when it is reasonably certain that the Company will exercise such options. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the ROU asset or lease liability. Income from subleased properties is recognized and presented as a reduction of selling, general and administrative expenses in the Company's consolidated statement of operations. The leases have remaining terms of one The following table sets forth the components of the Company’s lease cost for the three and six months ended December 31, 2020: Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Operating lease cost $ 3.2 $ 3.5 $ 6.8 $ 7.0 Short-term lease cost 0.7 0.8 1.6 1.6 Variable lease cost 0.1 0.1 0.2 0.2 Sublease income (0.2) — (0.3) — Total lease cost $ 3.8 $ 4.4 $ 8.3 $ 8.8 Operating cash flow payments from operating leases $ 3.3 $ 3.4 $ 6.9 $ 6.7 Non-cash ROU assets obtained in exchange for lease obligations $ — $ 11.4 $ 1.4 $ 12.3 The following table sets forth the Company’s weighted-average remaining lease term and weighted-average discount rate at December 31, 2020 and June 30, 2020: December 31, June 30, Weighted-average remaining lease term - operating leases 8.0 years 8.1 years Weighted-average discount rate - operating leases 3.9 % 3.9 % The following table sets forth the Company’s ROU assets and lease liabilities at December 31, 2020 and June 30, 2020: ($ in millions) December 31, June 30, Operating lease assets: Other assets $ 44.0 $ 52.0 Operating lease liabilities: Other accrued liabilities $ 10.7 $ 11.5 Other liabilities 42.9 50.3 Total operating lease liabilities $ 53.6 $ 61.8 Minimum lease payments for operating leases expiring subsequent to December 31, 2020 are as follows: ($ in millions) December 31, 2021 (remaining period of fiscal year) $ 6.4 2022 11.4 2023 9.7 2024 7.6 2025 4.7 Thereafter 23.7 Total future minimum lease payments 63.5 Less imputed interest (9.9) Total $ 53.6 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 31, 2020 | |
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 or liabilities in active markets; quoted prices for identical or similar assets or 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 or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Currently, the Company does not use Level 1 and 3 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: December 31, 2020 Fair Value ($ in millions) Level 2 Assets: Derivative financial instruments $ 16.2 Liabilities: Derivative financial instruments $ 11.1 June 30, 2020 Fair Value ($ in millions) Level 2 Assets: Derivative financial instruments $ 10.1 Liabilities: Derivative financial instruments $ 17.9 The Company’s derivative financial instruments consist of commodity forward contracts, foreign currency forward contracts and 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 commodity prices, foreign exchange rates 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 15. Derivatives and Hedging Activities. 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: December 31, 2020 June 30, 2020 ($ in millions) Carrying Fair Carrying Fair Long-term debt $ 694.0 $ 754.9 $ 551.8 $ 551.1 Company-owned life insurance $ 21.7 $ 21.7 $ 18.9 $ 18.9 The fair values of long-term debt as of December 31, 2020 and June 30, 2020 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. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 6 Months Ended |
Dec. 31, 2020 | |
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 summary of 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 (loss) income (“AOCI”) 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 December 31, 2020, the Company had forward contracts to purchase 9.0 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 and reclassified to interest expense in the period during which the hedged transaction affected earnings or it became probable that the forecasted transaction would not occur. Upon the issuance of the fixed rate debt, the forward interest rate swap contracts were terminated. The realized gains at the time the interest rate swap contracts were terminated are being amortized over the term of the underlying debt. For the three months ended December 31, 2020 and 2019, net gains related to the previously terminated contracts of $0.1 million and $0.1 million, respectively, were recorded as a reduction to interest expense. For the six months ended December 31, 2020 and 2019, net gains related to the previously terminated contracts of $0.2 million and $0.2 million, respectively, were recorded as a reduction to interest expense. 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 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 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 December 31, 2020 and June 30, 2020, 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 where appropriate. 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 operations. As of the quarter ended September 30, 2020, all interest rate swaps were terminated in connection with the prepayment of Notes due July 2021. At December 31, 2020 and June 30, 2020, the total notional amount of floating interest rate contracts was $0.0 million and $150.0 million, respectively. For the three months ended December 31, 2020, there were no gains or losses and for the three months ended December 31, 2019 net gains of $0.1 million, were recorded as a decrease to interest expense, respectively. For the six months ended December 31, 2020 and 2019, net gains of $0.4 million and $0.1 million, respectively, were recorded as a decrease to interest expense. During the quarter ended September 30, 2020, there was $2.3 million of gains recorded as a decrease to debt extinguishment losses. The fair value and location of outstanding derivative contracts recorded in the accompanying consolidated balance sheets were as follows as of December 31, 2020 and June 30, 2020: December 31, 2020 Interest Foreign Commodity Total ($ in millions) Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ — $ — $ 8.6 $ 8.6 Other assets — — 7.6 7.6 Total asset derivatives $ — $ — $ 16.2 $ 16.2 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ 1.5 $ 5.7 $ 7.2 Other liabilities — — 3.9 3.9 Total liability derivatives $ — $ 1.5 $ 9.6 $ 11.1 June 30, 2020 Interest Foreign Commodity Total ($ in millions) Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 1.2 $ 0.2 $ 2.2 $ 3.6 Other assets 2.8 0.6 3.1 6.5 Total asset derivatives $ 4.0 $ 0.8 $ 5.3 $ 10.1 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ — $ 11.1 $ 11.1 Other liabilities — — 6.8 6.8 Total liability derivatives $ — $ — $ 17.9 $ 17.9 Substantially all of the 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 $16.8 million and total liability derivatives would have been $11.7 million as of December 31, 2020. According to the provisions of the Company’s derivative arrangements, in the event that the fair value of outstanding derivative positions with certain counterparties exceeds certain thresholds, the Company may be required to issue cash collateral to the counterparties. As of December 31, 2020 and June 30, 2020, the Company had no cash collateral held by counterparties. The Company is exposed to credit loss in the event of nonperformance by counterparties on its derivative instruments as well as credit or performance risk with respect to its customer commitments to perform. Although nonperformance is possible, the Company does not anticipate nonperformance by any of the parties. In addition, various master netting arrangements are in place with counterparties to facilitate settlements of gains and losses on these contracts. Cash Flow and Fair Value Hedges For derivative instruments that are designated and qualify as cash flow hedges, the gain or loss on the derivative is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings or it becomes probable the forecasted transactions will not occur. The following is a summary of the gains (losses) related to cash flow hedges recognized during the three and six months ended December 31, 2020 and 2019: Amount of Gain (Loss) Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Derivatives in Cash Flow Hedging Relationship: Commodity contracts $ 9.2 $ (21.9) $ 23.0 $ 17.9 Foreign exchange contracts (0.1) (0.2) (0.1) 0.5 Total $ 9.1 $ (22.1) $ 22.9 $ 18.4 ($ in millions) Location of Gain Amount of Gain Reclassified from AOCI Three Months Ended 2020 2019 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ 2.4 $ 2.8 Foreign exchange contracts Net sales — 0.1 Forward interest rate swaps Interest expense 0.1 0.1 Total $ 2.5 $ 3.0 ($ in millions) Location of Gain Amount of Gain Reclassified from AOCI Six Months Ended 2020 2019 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ 5.2 $ 7.5 Foreign exchange contracts Net sales — 0.6 Forward interest rate swaps Interest expense 0.2 0.2 Total $ 5.4 $ 8.3 The following is a summary of total amounts presented in the consolidated statements of income in which the effects of cash flow and fair value hedges are recorded during the three and six months ended December 31, 2020 and 2019: Three Months Ended Three Months Ended ($ in millions) Net Sales Cost of Sales Interest Expense Net Sales Cost of Sales Interest Expense Total amounts presented in the consolidated statement of operations in which the effects of cash flow and fair value hedges are recorded $ 348.8 $ 342.8 $ 7.9 $ 573.0 $ 460.4 $ 5.3 Gain on Derivatives in Cash Flow Hedging Relationship: Commodity contracts Amount of gain reclassified from AOCI to income $ — $ 2.4 $ — $ — $ 2.8 $ — Foreign currency forward contracts Amount of gain reclassified from AOCI to income — — — 0.1 — — Interest rate swap agreements Amount of gain reclassified from AOCI to income — — 0.1 — — 0.1 (Loss) gain on Derivatives in Fair Value Hedging Relationship: Interest rate swap agreements Hedged Item — — — — — (0.1) Derivatives designated as hedging instruments — — — — — 0.1 Total gain $ — $ 2.4 $ 0.1 $ 0.1 $ 2.8 $ 0.1 Six Months Ended Six Months Ended ($ in millions) Net Sales Cost of Sales Interest Expense* Net Sales Cost of Sales Interest Expense Total amounts presented in the consolidated statement of operations in which the effects of cash flow and fair value hedges are recorded $ 702.1 $ 692.6 $ 14.6 $ 1,158.4 $ 933.1 $ 10.7 Gain on Derivatives in Cash Flow Hedging Relationship: Commodity contracts Amount of gain reclassified from AOCI to income $ — $ 5.2 $ — $ — $ 7.5 $ — Foreign currency forward contracts Amount of gain reclassified from AOCI to income — — — 0.6 — — Interest rate swap agreements Amount of gain reclassified from AOCI to income — — 0.2 — — 0.2 (Loss) gain on Derivatives in Fair Value Hedging Relationship: Interest rate swap agreements Hedged Item — — (2.7) — — (0.1) Derivatives designated as hedging instruments — — 2.7 — — 0.1 Total gain $ — $ 5.2 $ 0.2 $ 0.6 $ 7.5 $ 0.2 * $2.3 million of gains related to the interest rate swap agreements were recorded as a decrease to debt extinguishment losses. The Company estimates that $2.2 million of net derivative gains included in AOCI as of December 31, 2020 will be reclassified into income within the next 12 months. No significant cash flow hedges were discontinued during the three and six months ended December 31, 2020. As of December 31, 2020, and June 30, 2020, the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges of interest rate risk: Carrying amount of the hedged liabilities Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities ($ in millions) December 31, 2020 June 30, 2020 December 31, 2020 June 30, 2020 Line item in the consolidated balance sheets in which the hedged item is included Long Term Debt $ — $ 152.8 $ — $ 2.8 |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other Income (Expense), Net Other income (expense), net consisted of the following: Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Unrealized gains on company-owned life insurance contracts and investments held in rabbi trusts $ 3.1 $ 1.4 $ 4.4 $ 1.5 Foreign exchange (loss) gain (0.8) — (3.5) 0.2 Pension earnings, interest and deferrals (1.0) (0.7) (2.0) (1.4) Other — 0.1 — 0.2 Total other income (expense), net $ 1.3 $ 0.8 $ (1.1) $ 0.5 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on the current estimate of full year results, except that taxes related to specific events, if any, are recorded in the interim period in which they occur. The annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pre-tax income or loss of the Company in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, the Company’s tax expense can be impacted by changes in tax rates or laws, the finalization of tax audits, and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. Income tax benefit for the three months ended December 31, 2020 was $10.7 million, or 11.2 percent of pre-tax loss as compared with income tax expense of $11.7 million, or 23.2 percent of pre-tax income for the three months ended December 31, 2019. Income tax benefit in the six months ended December 31, 2020 was $29.7 million, or 18.4 percent of pre-tax loss as compared with income tax expense of $24.6 million, or 23.5 percent of pre-tax income for the six months ended December 31, 2019. Income tax benefit for the three months ended December 31, 2020 includes the unfavorable impacts of a non-deductible goodwill impairment charge and losses in certain foreign jurisdictions for which no tax benefit can be recognized. Additionally, the anticipated benefit for the carryback of the current year net operating loss to fiscal years with higher tax rates is included in this period. Excluding the discrete tax impact of the $52.8 million non-deductible goodwill impairment charge, the tax rate for the second quarter would have been 24.8%. Income tax expense in the three months ended December 31, 2019 included the impact of losses in certain foreign jurisdictions for which no tax benefit can be recognized. Income tax benefit for the six months ended December 31, 2020 includes the unfavorable impacts of a non-deductible goodwill impairment charge and losses in certain foreign jurisdictions for which no tax benefit can be recognized as well as discrete tax benefits of $2.0 million associated with the debt extinguishment losses, net and $2.4 million for the impact of restructuring and asset impairment charges. Additionally, the anticipated benefit for the carryback of the current year net operating loss to fi scal years with higher tax rates is included in this period. Also included is a tax charge of $1.2 million attributable to employee share-based compensation. Excluding the discrete tax impacts of the $52.8 million non-deductible goodwill impairment charge, debt extinguishment losses, net and restructuring and asset impairment charges, the tax rate for the six months ended December 31, 2020 would have been 27.1%. Income tax expense in the six months ended December 31, 2019 included the impact of losses in certain foreign jurisdictions for which no tax benefit can be recognized as well as tax benefits of $0.5 million attributable to employee share-based compensation. |
Business Segments
Business Segments | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company has two reportable segments, SAO and 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 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 Additive business and the Latrobe and Mexico distribution businesses. Effective July 1, 2020 the Company's Carpenter Powder Products business was merged into the Carpenter Additive business. The Amega West business was also part of the PEP segment however it was sold during the quarter ended September 30, 2020. 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 is comprised of executive and director compensation and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that management considers not representative of ongoing operations, such as restructuring charges and other specifically-identified income or expense items. On a consolidated basis, no single customer accounted for 10 percent or more of net sales for the three months ended December 31, 2020 and one customer, Howmet Aerospace Inc., accounted for approximately 10 percent of net sales for the three months ended December 31, 2019, respectively. On a consolidated basis, no single customer accounted for 10 percent or more of net sales for the six months ended December 31, 2020 and one customer, Howmet Aerospace Inc., accounted for approximately 10 percent of net sales for the six months ended December 31, 2019. On a consolidated basis, no single customer accounted for 10 percent or more of accounts receivable outstanding for the six months ended December 31, 2020. Approximately 10 percent of the accounts receivable outstanding at June 30, 2020 was due from one customer, Howmet Aerospace Inc. Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Net Sales: Specialty Alloys Operations $ 300.4 $ 483.0 $ 601.1 $ 974.1 Performance Engineered Products 54.8 106.0 116.7 215.4 Intersegment (6.4) (16.0) (15.7) (31.1) Consolidated net sales $ 348.8 $ 573.0 $ 702.1 $ 1,158.4 Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Operating (Loss) Income: Specialty Alloys Operations $ (11.6) $ 76.3 $ (30.2) $ 157.3 Performance Engineered Products (7.2) 0.4 (10.9) (1.7) Corporate costs (including restructuring and asset impairment charges) (70.6) (21.9) (97.1) (41.0) Intersegment 0.4 0.2 0.4 0.2 Consolidated operating (loss) income $ (89.0) $ 55.0 $ (137.8) $ 114.8 Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Depreciation and Amortization: Specialty Alloys Operations $ 23.3 $ 23.2 $ 46.5 $ 46.8 Performance Engineered Products 4.2 6.2 10.3 12.1 Corporate 1.0 1.3 2.7 2.6 Intersegment 0.1 (0.2) 0.1 (0.5) Consolidated depreciation and amortization $ 28.6 $ 30.5 $ 59.6 $ 61.0 Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Capital Expenditures: Specialty Alloys Operations $ 15.7 $ 24.9 $ 37.4 $ 50.1 Performance Engineered Products 1.1 5.4 3.2 11.6 Corporate 9.8 16.4 19.3 32.6 Intersegment — — — — Consolidated capital expenditures $ 26.6 $ 46.7 $ 59.9 $ 94.3 December 31, June 30, ($ in millions) Total Assets: Specialty Alloys Operations $ 2,088.7 $ 2,259.0 Performance Engineered Products 459.1 548.5 Corporate 510.0 428.9 Intersegment (13.9) (9.2) Consolidated total assets $ 3,043.9 $ 3,227.2 |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive (Loss) Income (AOCI) | 6 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Reclassifications from Accumulated Other Comprehensive (Loss) Income (AOCI) | Reclassifications from Accumulated Other Comprehensive (Loss) Income (AOCI) The changes in AOCI by component, net of tax, for the three months ended December 31, 2020 and 2019 were as follows: Cash flow Pension and Foreign Total Balances at September 30, 2020 $ (2.8) $ (330.7) $ (46.9) $ (380.4) Other comprehensive gain before reclassifications 6.9 — 8.8 15.7 Amounts reclassified from AOCI (b) (2.0) 3.6 — 1.6 Net other comprehensive income 4.9 3.6 8.8 17.3 Balances at December 31, 2020 $ 2.1 $ (327.1) $ (38.1) $ (363.1) Cash flow Pension and Foreign Total Balances at September 30, 2019 $ 11.9 $ (290.3) $ (49.2) $ (327.6) Other comprehensive (loss) income before reclassifications (16.8) — 7.4 (9.4) Amounts reclassified from AOCI (b) (2.3) 3.0 — 0.7 Net other comprehensive (loss) income (19.1) 3.0 7.4 (8.7) Balances at December 31, 2019 $ (7.2) $ (287.3) $ (41.8) $ (336.3) (a) All amounts are net of tax. Amounts in parentheses indicate debits. (b) See separate table below for further details. The changes in AOCI by component, net of tax, for the six months ended December 31, 2020 and 2019 were as follows: Six Months Ended December 31, 2020 Cash flow Pension and Foreign Total Balances at June 30, 2020 $ (11.1) $ (334.3) $ (52.6) $ (398.0) Other comprehensive gain before reclassifications 17.3 — 14.5 31.8 Amounts reclassified from AOCI (b) (4.1) 7.2 — 3.1 Net other comprehensive income 13.2 7.2 14.5 34.9 Balances at December 31, 2020 $ 2.1 $ (327.1) $ (38.1) $ (363.1) Six Months Ended December 31, 2019 Cash flow Pension and Foreign Total Balances at June 30, 2019 $ (14.8) $ (293.3) $ (43.7) $ (351.8) Other comprehensive income before reclassifications 13.9 — 1.9 15.8 Amounts reclassified from AOCI (b) (6.3) 6.0 — (0.3) Net other comprehensive income 7.6 6.0 1.9 15.5 Balances at December 31, 2019 $ (7.2) $ (287.3) $ (41.8) $ (336.3) (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 three and six months ended December 31, 2020 and 2019: Details about AOCI Components Location of Amount Reclassified from AOCI Amount Reclassified from AOCI ($ in millions) (a) 2020 2019 2020 2019 Cash flow hedging items: Commodity contracts Cost of sales $ 2.4 $ 2.8 $ 5.2 $ 7.5 Foreign exchange contracts Net sales — 0.1 — 0.6 Forward interest rate swaps Interest expense 0.1 0.1 0.2 0.2 Total before tax 2.5 3.0 5.4 8.3 Tax expense (0.5) (0.7) (1.3) (2.0) Net of tax $ 2.0 $ 2.3 $ 4.1 $ 6.3 Details about AOCI Components Location of Amount Reclassified from AOCI Amount Reclassified from AOCI ($ in millions) (a) 2020 2019 2020 2019 Amortization of pension and other postretirement benefit plan items: Net actuarial loss (b) $ (5.2) $ (4.5) $ (10.4) $ (9.0) Prior service benefit (b) 0.5 0.5 1.0 1.0 Total before tax (4.7) (4.0) (9.4) (8.0) Tax benefit 1.1 1.0 2.2 2.0 Net of tax $ (3.6) $ (3.0) $ (7.2) $ (6.0) (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. Pension and Other Postretirement Benefits for additional details). |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, considered necessary for a fair statement of the results are reflected in the interim periods presented. The June 30, 2020 consolidated balance sheet data was derived from audited financial statements, but does not include all of the disclosures required by accounting principles generally accepted in the United States of America. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in Carpenter Technology’s Annual Report on Form 10-K for the fiscal year ended June 30, 2020 (the “2020 Form 10-K”). Operating results for the three and six months ended December 31, 2020 are not necessarily indicative of the operating results for any future period. Certain amounts in the consolidated statement of operations as presented in Carpenter Technology’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 have been reclassified to conform to the current quarter presentation. As used throughout this report, unless the context requires otherwise, the terms “Carpenter”, “Carpenter Technology”, the “Company”, “Registrant”, “Issuer”, “we” and “our” refer to Carpenter Technology Corporation. |
Recently Issued Accounting Pronouncements Adopted in Current Period and Pending Adoption | Recently Issued Accounting Pronouncements - Adopted in current fiscal year At this time there are no issued pronouncements adopted in the current fiscal year that would materially impact the Company. Recently Issued Accounting Pronouncements - Pending Adoption In March 2020, the FASB issued ASU 2020-04 Reference Rate Reform (Topic 848). The guidance in ASU 2020-04 provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating the potential impact of the adoption of ASU 2020-04 on the consolidated financial statements. |
Revenue | The Company recognizes revenue in accordance with Topic 606, Revenue from Contracts. The Company applies the five-step model in the FASB’s guidance, which requires the Company to: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the Company satisfies a performance obligation. The Company recognizes revenue when performance obligations under the terms of a customer purchase order or contract are satisfied. This occurs when control of the goods and services has transferred to the customer, which is generally determined when title, ownership, and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product or the service is performed. Consignment transactions are arrangements where the Company transfers product to a customer location but retains ownership and control of such product until it is used by the customer. Revenue for consignment arrangements is recognized upon usage by the customer. Service revenue is recognized as the services are performed. Each customer purchase order or contract for goods transferred has a single performance obligation for which revenue is recognized at a point in time. The standard terms and conditions of a customer purchase order include general rights of return and product warranty provisions related to nonconforming product. Depending on the circumstances, the product is either replaced or a quality adjustment is issued. Such warranties do not represent a separate performance obligation. Each customer purchase order or contract sets forth the transaction price for the products and services purchased under that arrangement. Some customer arrangements include variable consideration, such as volume rebates, which generally depend upon the Company’s customers meeting specified performance criteria, such as a purchasing level over a period of time. The Company exercises judgment to estimate the most likely amount of variable consideration at each reporting date. Revenue is measured as the amount of consideration the Company expects to receive in exchange for its product. The standard payment terms are 30 days. The Company has elected to use the practical expedient that permits a Company to not adjust for the effects of a significant financing component if it expects that at the contract inception, the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Amounts billed to customers for shipping and handling activities to fulfill the Company’s promise to transfer the goods are included in revenues and costs incurred by the Company for the delivery of goods and are classified as cost of sales in the consolidated statement of operations. 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. |
Earnings per Common Share | The Company calculates basic and diluted (loss) earnings per share using the two class method. Under the two class method, (loss) earnings are allocated to common stock and participating securities (non-vested restricted shares and units that receive non-forfeitable dividends) according to their participation rights in dividends and undistributed earnings. The (loss) earnings available to each class of stock are divided by the weighted average number of outstanding shares for the period in each class. Diluted (loss) earnings per share assumes the issuance of common stock for all potentially dilutive share equivalents outstanding. For the three and six months ended December 31, 2020, the Company incurred a net loss and accordingly excluded all potentially dilutive securities from the determination of diluted loss per share as their impact was anti-dilutive. |
Inventories | Inventories are valued at the lower of cost or market. Cost for inventories is principally determined using the last-in, first-out (“LIFO”) inventory costing method. The Company also uses the first-in, first-out (“FIFO”) and average cost methods. |
Regulatory Environmental Costs | 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. 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. |
Contingencies and Commitments | 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 such as asbestos. 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. |
Lessee, Leases | The Company elected the practical expedient to not separate lease components from nonlease components for all asset classes. The Company recognizes lease expense in the consolidated statements of operations on a straight-line basis over the lease term. The Company elected to not recognize ROU assets and lease liabilities for short-term leases with an initial term of 12 months or less for all asset classes. Leases with the option to extend their term or terminate early are reflected in the lease term when it is reasonably certain that the Company will exercise such options. Some leasing arrangements require variable payments that are dependent on usage, output, or may vary for other reasons, such as insurance and tax payments. The variable lease payments are not presented as part of the ROU asset or lease liability. Income from subleased properties is recognized and presented as a reduction of selling, general and administrative expenses in the Company's consolidated statement of operations. The leases have remaining terms of one |
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 or liabilities in active markets; quoted prices for identical or similar assets or 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 or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Currently, the Company does not use Level 1 and 3 inputs. |
Fair Value of Financial Instruments | The Company’s derivative financial instruments consist of commodity forward contracts, foreign currency forward contracts and 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 commodity prices, foreign exchange rates 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 15. Derivatives and Hedging Activities. 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. |
Cash Flow Hedging | 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 (loss) income (“AOCI”) 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.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 and reclassified to interest expense in the period during which the hedged transaction affected earnings or it became probable that the forecasted transaction would not occur. Upon the issuance of the fixed rate debt, the forward interest rate swap contracts were terminated. The realized gains at the time the interest rate swap contracts were terminated are being amortized over the 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 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 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 December 31, 2020 and June 30, 2020, 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. |
Business Segments | The Company has two reportable segments, SAO and 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 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 Additive business and the Latrobe and Mexico distribution businesses. Effective July 1, 2020 the Company's Carpenter Powder Products business was merged into the Carpenter Additive business. The Amega West business was also part of the PEP segment however it was sold during the quarter ended September 30, 2020. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics. |
Restructuring and Asset Impai_2
Restructuring and Asset Impairment Charges (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The reserve balances and activity for restructuring charges at December 31, 2020 were as follows: ($ in millions) Reserve Balance Reserve balance at June 30, 2020 $ 9.5 Restructuring charges 1.3 Cash payments (8.2) Reserve balance at December 31, 2020 $ 2.6 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Summary of revenues by end-use markets and geography | Comparative information of the Company’s overall revenues by end-use markets and geography for the three and six months ended December 31, 2020 and 2019 were as follows: End-Use Market Data Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Aerospace and Defense $ 174.5 $ 348.7 $ 346.4 $ 702.0 Medical 32.4 49.0 65.2 98.0 Transportation 31.6 38.4 60.8 78.4 Energy 22.1 31.2 47.2 70.5 Industrial and Consumer 66.0 78.0 139.4 151.3 Distribution 22.2 27.7 43.1 58.2 Consolidated net sales $ 348.8 $ 573.0 $ 702.1 $ 1,158.4 Geographic Data Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 United States $ 208.2 $ 370.9 $ 432.9 $ 755.8 Europe 68.1 93.8 129.3 195.2 Asia Pacific 48.9 67.8 86.8 121.1 Mexico 10.7 15.6 23.9 37.5 Canada 7.1 16.0 14.9 29.4 Other 5.8 8.9 14.3 19.4 Consolidated net sales $ 348.8 $ 573.0 $ 702.1 $ 1,158.4 |
Earnings (Loss) per Common Sh_2
Earnings (Loss) per Common Share (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of calculations of basic and diluted earnings per common share | The calculations of basic and diluted (loss) earnings per common share for the three and six months ended December 31, 2020 and 2019 were as follows: Three Months Ended Six Months Ended (in millions, except per share data) 2020 2019 2020 2019 Net (loss) income $ (84.9) $ 38.8 $ (132.0) $ 80.0 Less: (loss) earnings and dividends allocated to participating securities (0.2) (0.4) (0.2) (0.8) (Loss) earnings available for common stockholders used in calculation of basic (loss) earnings per common share $ (85.1) $ 38.4 $ (132.2) $ 79.2 Weighted average number of common shares outstanding, basic 48.3 48.1 48.3 48.0 Basic (loss) earnings per common share $ (1.76) $ 0.80 $ (2.74) $ 1.65 Net (loss) income $ (84.9) $ 38.8 $ (132.0) $ 80.0 Less: (loss) earnings and dividends allocated to participating securities (0.2) (0.4) (0.2) (0.8) (Loss) earnings available for common stockholders used in calculation of diluted (loss) earnings per common share $ (85.1) $ 38.4 $ (132.2) $ 79.2 Weighted average number of common shares outstanding, basic 48.3 48.1 48.3 48.0 Effect of shares issuable under share-based compensation plans — 0.4 — 0.4 Weighted average number of common shares outstanding, diluted 48.3 48.5 48.3 48.4 Diluted (loss) earnings per common share $ (1.76) $ 0.79 $ (2.74) $ 1.64 |
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 above calculations of diluted earnings per share because their effects were anti-dilutive: Three Months Ended Six Months Ended (in millions) 2020 2019 2020 2019 Stock options 2.2 0.6 2.1 0.8 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Inventory, Net [Abstract] | |
Schedule of inventories | Inventories consisted of the following components as of December 31, 2020 and June 30, 2020: ($ in millions) December 31, June 30, Raw materials and supplies $ 174.4 $ 217.6 Work in process 244.3 312.3 Finished and purchased products 146.4 194.4 Total inventories $ 565.1 $ 724.3 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 the six months ended were as follows: ($ in millions) June 30, 2020 Impairment Other December 31, 2020 Goodwill $ 372.2 $ — $ 3.8 $ 376.0 Accumulated impairment losses (81.8) (52.8) — (134.6) Total goodwill $ 290.4 $ (52.8) $ 3.8 $ 241.4 Specialty Alloy Operations $ 195.5 $ — $ — $ 195.5 Performance Engineered Products 94.9 (52.8) 3.8 45.9 Total goodwill $ 290.4 $ (52.8) $ 3.8 $ 241.4 |
Schedule of other intangible assets, net | June 30, 2020 December 31, 2020 ($ in millions) Useful Life (in Years) Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amortization Accumulated Impairment Net Carrying Amount Trademarks and trade names 15 - 30 $ 33.5 $ (25.4) $ (1.5) $ 6.6 $ 33.5 $ (26.0) $ (1.5) $ 6.0 Customer relationships 10 - 15 76.9 (41.2) (1.2) 34.5 76.9 (43.6) (4.2) 29.1 Non-compete agreements 5 0.2 (0.1) (0.1) — 0.2 (0.1) (0.1) — Technology 15 7.3 (1.5) (4.5) 1.3 7.3 (1.5) (5.8) — Patents 14 - 20 11.4 (1.7) — 9.7 11.4 (1.1) — 10.3 Total $ 129.3 $ (69.9) $ (7.3) $ 52.1 $ 129.3 $ (72.3) $ (11.6) $ 45.4 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following as of December 31, 2020 and June 30, 2020: ($ in millions) December 31, June 30, Accrued compensation and benefits $ 44.7 $ 50.4 Accrued pension liabilities 34.8 20.2 Accrued interest expense 15.6 10.4 Accrued postretirement benefits 14.0 14.0 Current portion of lease liabilities 10.7 11.5 Derivative financial instruments 7.2 11.1 Contract liabilities 5.5 12.3 Accrued income taxes 0.8 1.0 Other 24.1 27.0 Total accrued liabilities $ 157.4 $ 157.9 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of components of the net periodic benefit cost | The components of the net periodic benefit cost related to the Company’s pension and other postretirement benefits for the three and six months ended December 31, 2020 and 2019 were as follows: Three months ended December 31, Pension Plans Other Postretirement Plans ($ in millions) 2020 2019 2020 2019 Service cost $ 2.4 $ 2.4 $ 0.6 $ 0.7 Interest cost 9.9 11.7 1.9 2.3 Expected return on plan assets (13.9) (15.5) (1.6) (1.8) Amortization of net loss 4.3 3.9 0.9 0.6 Amortization of prior service cost (benefit) 0.5 0.5 (1.0) (1.0) Net periodic benefit costs $ 3.2 $ 3.0 $ 0.8 $ 0.8 Six months ended December 31, Pension Plans Other Postretirement Plans ($ in millions) 2020 2019 2020 2019 Service cost $ 4.8 $ 4.9 $ 1.4 $ 1.4 Interest cost 19.8 23.4 3.8 4.6 Expected return on plan assets (27.8) (31.1) (3.3) (3.6) Amortization of net loss 8.6 7.8 1.8 1.2 Amortization of prior service cost (benefit) 1.0 1.0 (2.0) (2.0) Net periodic benefit costs $ 6.4 $ 6.0 $ 1.7 $ 1.6 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt outstanding | Long-term debt outstanding as of December 31, 2020 and June 30, 2020 consisted of the following: ($ in millions) December 31, June 30, Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at June 30, 2020) $ — $ 252.3 Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at December 31, 2020 and June 30, 2020) 299.3 299.5 Senior unsecured notes, 6.375% due July 2028 (face value of $400.0 million at December 31, 2020) 394.7 — Total 694.0 551.8 Less: amounts due within one year — — Long-term debt, net of current portion $ 694.0 $ 551.8 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of lease cost | The following table sets forth the components of the Company’s lease cost for the three and six months ended December 31, 2020: Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Operating lease cost $ 3.2 $ 3.5 $ 6.8 $ 7.0 Short-term lease cost 0.7 0.8 1.6 1.6 Variable lease cost 0.1 0.1 0.2 0.2 Sublease income (0.2) — (0.3) — Total lease cost $ 3.8 $ 4.4 $ 8.3 $ 8.8 Operating cash flow payments from operating leases $ 3.3 $ 3.4 $ 6.9 $ 6.7 Non-cash ROU assets obtained in exchange for lease obligations $ — $ 11.4 $ 1.4 $ 12.3 The following table sets forth the Company’s weighted-average remaining lease term and weighted-average discount rate at December 31, 2020 and June 30, 2020: December 31, June 30, Weighted-average remaining lease term - operating leases 8.0 years 8.1 years Weighted-average discount rate - operating leases 3.9 % 3.9 % |
Summary of right-of-use assets and lease liabilities | The following table sets forth the Company’s ROU assets and lease liabilities at December 31, 2020 and June 30, 2020: ($ in millions) December 31, June 30, Operating lease assets: Other assets $ 44.0 $ 52.0 Operating lease liabilities: Other accrued liabilities $ 10.7 $ 11.5 Other liabilities 42.9 50.3 Total operating lease liabilities $ 53.6 $ 61.8 |
Schedule of minimum lease payments for operating leases expiring | Minimum lease payments for operating leases expiring subsequent to December 31, 2020 are as follows: ($ in millions) December 31, 2021 (remaining period of fiscal year) $ 6.4 2022 11.4 2023 9.7 2024 7.6 2025 4.7 Thereafter 23.7 Total future minimum lease payments 63.5 Less imputed interest (9.9) Total $ 53.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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: December 31, 2020 Fair Value ($ in millions) Level 2 Assets: Derivative financial instruments $ 16.2 Liabilities: Derivative financial instruments $ 11.1 June 30, 2020 Fair Value ($ in millions) Level 2 Assets: Derivative financial instruments $ 10.1 Liabilities: Derivative financial instruments $ 17.9 |
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: December 31, 2020 June 30, 2020 ($ in millions) Carrying Fair Carrying Fair Long-term debt $ 694.0 $ 754.9 $ 551.8 $ 551.1 Company-owned life insurance $ 21.7 $ 21.7 $ 18.9 $ 18.9 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and June 30, 2020: December 31, 2020 Interest Foreign Commodity Total ($ in millions) Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ — $ — $ 8.6 $ 8.6 Other assets — — 7.6 7.6 Total asset derivatives $ — $ — $ 16.2 $ 16.2 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ 1.5 $ 5.7 $ 7.2 Other liabilities — — 3.9 3.9 Total liability derivatives $ — $ 1.5 $ 9.6 $ 11.1 June 30, 2020 Interest Foreign Commodity Total ($ in millions) Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 1.2 $ 0.2 $ 2.2 $ 3.6 Other assets 2.8 0.6 3.1 6.5 Total asset derivatives $ 4.0 $ 0.8 $ 5.3 $ 10.1 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ — $ 11.1 $ 11.1 Other liabilities — — 6.8 6.8 Total liability derivatives $ — $ — $ 17.9 $ 17.9 |
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 three and six months ended December 31, 2020 and 2019: Amount of Gain (Loss) Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Derivatives in Cash Flow Hedging Relationship: Commodity contracts $ 9.2 $ (21.9) $ 23.0 $ 17.9 Foreign exchange contracts (0.1) (0.2) (0.1) 0.5 Total $ 9.1 $ (22.1) $ 22.9 $ 18.4 ($ in millions) Location of Gain Amount of Gain Reclassified from AOCI Three Months Ended 2020 2019 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ 2.4 $ 2.8 Foreign exchange contracts Net sales — 0.1 Forward interest rate swaps Interest expense 0.1 0.1 Total $ 2.5 $ 3.0 ($ in millions) Location of Gain Amount of Gain Reclassified from AOCI Six Months Ended 2020 2019 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ 5.2 $ 7.5 Foreign exchange contracts Net sales — 0.6 Forward interest rate swaps Interest expense 0.2 0.2 Total $ 5.4 $ 8.3 |
Summary of effect of derivative instruments on income | The following is a summary of total amounts presented in the consolidated statements of income in which the effects of cash flow and fair value hedges are recorded during the three and six months ended December 31, 2020 and 2019: Three Months Ended Three Months Ended ($ in millions) Net Sales Cost of Sales Interest Expense Net Sales Cost of Sales Interest Expense Total amounts presented in the consolidated statement of operations in which the effects of cash flow and fair value hedges are recorded $ 348.8 $ 342.8 $ 7.9 $ 573.0 $ 460.4 $ 5.3 Gain on Derivatives in Cash Flow Hedging Relationship: Commodity contracts Amount of gain reclassified from AOCI to income $ — $ 2.4 $ — $ — $ 2.8 $ — Foreign currency forward contracts Amount of gain reclassified from AOCI to income — — — 0.1 — — Interest rate swap agreements Amount of gain reclassified from AOCI to income — — 0.1 — — 0.1 (Loss) gain on Derivatives in Fair Value Hedging Relationship: Interest rate swap agreements Hedged Item — — — — — (0.1) Derivatives designated as hedging instruments — — — — — 0.1 Total gain $ — $ 2.4 $ 0.1 $ 0.1 $ 2.8 $ 0.1 Six Months Ended Six Months Ended ($ in millions) Net Sales Cost of Sales Interest Expense* Net Sales Cost of Sales Interest Expense Total amounts presented in the consolidated statement of operations in which the effects of cash flow and fair value hedges are recorded $ 702.1 $ 692.6 $ 14.6 $ 1,158.4 $ 933.1 $ 10.7 Gain on Derivatives in Cash Flow Hedging Relationship: Commodity contracts Amount of gain reclassified from AOCI to income $ — $ 5.2 $ — $ — $ 7.5 $ — Foreign currency forward contracts Amount of gain reclassified from AOCI to income — — — 0.6 — — Interest rate swap agreements Amount of gain reclassified from AOCI to income — — 0.2 — — 0.2 (Loss) gain on Derivatives in Fair Value Hedging Relationship: Interest rate swap agreements Hedged Item — — (2.7) — — (0.1) Derivatives designated as hedging instruments — — 2.7 — — 0.1 Total gain $ — $ 5.2 $ 0.2 $ 0.6 $ 7.5 $ 0.2 * $2.3 million of gains related to the interest rate swap agreements were recorded as a decrease to debt extinguishment losses. |
Summary of amounts recorded in balance sheet related to cumulative basis adjustment for fair value interest rate risk hedges | As of December 31, 2020, and June 30, 2020, the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges of interest rate risk: Carrying amount of the hedged liabilities Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities ($ in millions) December 31, 2020 June 30, 2020 December 31, 2020 June 30, 2020 Line item in the consolidated balance sheets in which the hedged item is included Long Term Debt $ — $ 152.8 $ — $ 2.8 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of other (expense) income, net | Other income (expense), net consisted of the following: Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Unrealized gains on company-owned life insurance contracts and investments held in rabbi trusts $ 3.1 $ 1.4 $ 4.4 $ 1.5 Foreign exchange (loss) gain (0.8) — (3.5) 0.2 Pension earnings, interest and deferrals (1.0) (0.7) (2.0) (1.4) Other — 0.1 — 0.2 Total other income (expense), net $ 1.3 $ 0.8 $ (1.1) $ 0.5 |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of results of operation, depreciation and amortization, capital expenditures and total assets by reportable segments | Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Net Sales: Specialty Alloys Operations $ 300.4 $ 483.0 $ 601.1 $ 974.1 Performance Engineered Products 54.8 106.0 116.7 215.4 Intersegment (6.4) (16.0) (15.7) (31.1) Consolidated net sales $ 348.8 $ 573.0 $ 702.1 $ 1,158.4 Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Operating (Loss) Income: Specialty Alloys Operations $ (11.6) $ 76.3 $ (30.2) $ 157.3 Performance Engineered Products (7.2) 0.4 (10.9) (1.7) Corporate costs (including restructuring and asset impairment charges) (70.6) (21.9) (97.1) (41.0) Intersegment 0.4 0.2 0.4 0.2 Consolidated operating (loss) income $ (89.0) $ 55.0 $ (137.8) $ 114.8 Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Depreciation and Amortization: Specialty Alloys Operations $ 23.3 $ 23.2 $ 46.5 $ 46.8 Performance Engineered Products 4.2 6.2 10.3 12.1 Corporate 1.0 1.3 2.7 2.6 Intersegment 0.1 (0.2) 0.1 (0.5) Consolidated depreciation and amortization $ 28.6 $ 30.5 $ 59.6 $ 61.0 Three Months Ended Six Months Ended ($ in millions) 2020 2019 2020 2019 Capital Expenditures: Specialty Alloys Operations $ 15.7 $ 24.9 $ 37.4 $ 50.1 Performance Engineered Products 1.1 5.4 3.2 11.6 Corporate 9.8 16.4 19.3 32.6 Intersegment — — — — Consolidated capital expenditures $ 26.6 $ 46.7 $ 59.9 $ 94.3 December 31, June 30, ($ in millions) Total Assets: Specialty Alloys Operations $ 2,088.7 $ 2,259.0 Performance Engineered Products 459.1 548.5 Corporate 510.0 428.9 Intersegment (13.9) (9.2) Consolidated total assets $ 3,043.9 $ 3,227.2 |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive (Loss) Income (AOCI) (Tables) | 6 Months Ended |
Dec. 31, 2020 | |
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 three months ended December 31, 2020 and 2019 were as follows: Cash flow Pension and Foreign Total Balances at September 30, 2020 $ (2.8) $ (330.7) $ (46.9) $ (380.4) Other comprehensive gain before reclassifications 6.9 — 8.8 15.7 Amounts reclassified from AOCI (b) (2.0) 3.6 — 1.6 Net other comprehensive income 4.9 3.6 8.8 17.3 Balances at December 31, 2020 $ 2.1 $ (327.1) $ (38.1) $ (363.1) Cash flow Pension and Foreign Total Balances at September 30, 2019 $ 11.9 $ (290.3) $ (49.2) $ (327.6) Other comprehensive (loss) income before reclassifications (16.8) — 7.4 (9.4) Amounts reclassified from AOCI (b) (2.3) 3.0 — 0.7 Net other comprehensive (loss) income (19.1) 3.0 7.4 (8.7) Balances at December 31, 2019 $ (7.2) $ (287.3) $ (41.8) $ (336.3) (a) All amounts are net of tax. Amounts in parentheses indicate debits. (b) See separate table below for further details. The changes in AOCI by component, net of tax, for the six months ended December 31, 2020 and 2019 were as follows: Six Months Ended December 31, 2020 Cash flow Pension and Foreign Total Balances at June 30, 2020 $ (11.1) $ (334.3) $ (52.6) $ (398.0) Other comprehensive gain before reclassifications 17.3 — 14.5 31.8 Amounts reclassified from AOCI (b) (4.1) 7.2 — 3.1 Net other comprehensive income 13.2 7.2 14.5 34.9 Balances at December 31, 2020 $ 2.1 $ (327.1) $ (38.1) $ (363.1) Six Months Ended December 31, 2019 Cash flow Pension and Foreign Total Balances at June 30, 2019 $ (14.8) $ (293.3) $ (43.7) $ (351.8) Other comprehensive income before reclassifications 13.9 — 1.9 15.8 Amounts reclassified from AOCI (b) (6.3) 6.0 — (0.3) Net other comprehensive income 7.6 6.0 1.9 15.5 Balances at December 31, 2019 $ (7.2) $ (287.3) $ (41.8) $ (336.3) (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 three and six months ended December 31, 2020 and 2019: Details about AOCI Components Location of Amount Reclassified from AOCI Amount Reclassified from AOCI ($ in millions) (a) 2020 2019 2020 2019 Cash flow hedging items: Commodity contracts Cost of sales $ 2.4 $ 2.8 $ 5.2 $ 7.5 Foreign exchange contracts Net sales — 0.1 — 0.6 Forward interest rate swaps Interest expense 0.1 0.1 0.2 0.2 Total before tax 2.5 3.0 5.4 8.3 Tax expense (0.5) (0.7) (1.3) (2.0) Net of tax $ 2.0 $ 2.3 $ 4.1 $ 6.3 Details about AOCI Components Location of Amount Reclassified from AOCI Amount Reclassified from AOCI ($ in millions) (a) 2020 2019 2020 2019 Amortization of pension and other postretirement benefit plan items: Net actuarial loss (b) $ (5.2) $ (4.5) $ (10.4) $ (9.0) Prior service benefit (b) 0.5 0.5 1.0 1.0 Total before tax (4.7) (4.0) (9.4) (8.0) Tax benefit 1.1 1.0 2.2 2.0 Net of tax $ (3.6) $ (3.0) $ (7.2) $ (6.0) (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. Pension and Other Postretirement Benefits for additional details). |
Restructuring and Asset Impai_3
Restructuring and Asset Impairment Charges - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020USD ($)facility | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and asset impairment charges | $ 0 | $ 2.3 | $ 10 | $ 2.3 | |
Non-cash asset impairment charges | $ 8.7 | ||||
Restructuring charges | $ 1.3 | $ 1.3 | |||
Fixed Cost Reduction | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of positions eliminated, period percent | 20.00% | ||||
Facility Closing | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Number of small domestic power metals production facilities closed | facility | 2 |
Restructuring and Asset Impai_4
Restructuring and Asset Impairment Charges - Activity and reserve balance restructuring charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Sep. 30, 2020 | Dec. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Reserve balance at June 30, 2020 | $ 9.5 | $ 9.5 |
Restructuring charges | $ 1.3 | 1.3 |
Cash payments | (8.2) | |
Reserve balance at December 31, 2020 | $ 2.6 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 6 Months Ended | |
Dec. 31, 2020USD ($)segment | Jun. 30, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Payment terms | 30 days | |
Contract liabilities | $ | $ 5.5 | $ 12.3 |
Number of business segments | segment | 2 |
Revenue - Summary of revenues b
Revenue - Summary of revenues by end-use markets (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | $ 348.8 | $ 573 | $ 702.1 | $ 1,158.4 |
Aerospace and Defense | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | 174.5 | 348.7 | 346.4 | 702 |
Medical | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | 32.4 | 49 | 65.2 | 98 |
Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | 31.6 | 38.4 | 60.8 | 78.4 |
Energy | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | 22.1 | 31.2 | 47.2 | 70.5 |
Industrial and Consumer | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | 66 | 78 | 139.4 | 151.3 |
Distribution | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | $ 22.2 | $ 27.7 | $ 43.1 | $ 58.2 |
Revenue - Summary of revenue by
Revenue - Summary of revenue by geography (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | $ 348.8 | $ 573 | $ 702.1 | $ 1,158.4 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | 208.2 | 370.9 | 432.9 | 755.8 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | 68.1 | 93.8 | 129.3 | 195.2 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | 48.9 | 67.8 | 86.8 | 121.1 |
Mexico | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | 10.7 | 15.6 | 23.9 | 37.5 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | 7.1 | 16 | 14.9 | 29.4 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Consolidated net sales | $ 5.8 | $ 8.9 | $ 14.3 | $ 19.4 |
Divestiture (Details)
Divestiture (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||
Proceeds from divestiture of businesses | $ 20 | $ 0 | |
Discontinued Operations, Disposed of by Sale | Amega West | |||
Business Acquisition [Line Items] | |||
Disposal group, including discontinued operation, consideration | $ 20 | ||
Proceeds from divestiture of businesses | $ 17.6 | ||
Disposal group, including discontinued operation, consideration, escrow | $ 2.4 |
Earnings (Loss) per Common Sh_3
Earnings (Loss) per Common Share - Schedule of calculations of basic and diluted earnings per common share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income | $ (84.9) | $ 38.8 | $ (132) | $ 80 |
Less: (loss) earnings and dividends allocated to participating securities | (0.2) | (0.4) | (0.2) | (0.8) |
(Loss) earnings available for common stockholders used in calculation of basic (loss) earnings per common share | $ (85.1) | $ 38.4 | $ (132.2) | $ 79.2 |
Weighted average number of common shares outstanding, basic (in shares) | 48.3 | 48.1 | 48.3 | 48 |
Basic (loss) earnings per common share (in dollars per share) | $ (1.76) | $ 0.80 | $ (2.74) | $ 1.65 |
Less: earnings and dividends allocated to participating securities | $ (0.2) | $ (0.4) | $ (0.2) | $ (0.8) |
(Loss) earnings available for common stockholders used in calculation of diluted (loss) earnings per common share | $ (85.1) | $ 38.4 | $ (132.2) | $ 79.2 |
Effect of shares issuable under share-based compensation plans (in shares) | 0 | 0.4 | 0 | 0.4 |
Weighted average number of common shares outstanding, diluted (in shares) | 48.3 | 48.5 | 48.3 | 48.4 |
Diluted (loss) earnings per common share (in dollars per share) | $ (1.76) | $ 0.79 | $ (2.74) | $ 1.64 |
Earnings (Loss) per Common Sh_4
Earnings (Loss) 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 | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
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) | 2.2 | 0.6 | 2.1 | 0.8 |
Inventories - Schedule of inven
Inventories - Schedule of inventories (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 174.4 | $ 217.6 |
Work in process | 244.3 | 312.3 |
Finished and purchased products | 146.4 | 194.4 |
Total inventories | $ 565.1 | $ 724.3 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 |
Inventory, Net [Abstract] | ||
Inventory accounted for using a method other than LIFO | $ 119.9 | $ 136.3 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020USD ($)reporting_unit | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($)reporting_unit | |
Goodwill [Line Items] | |||||
Number of reporting units | reporting_unit | 4 | ||||
Goodwill impairment | $ 52.8 | $ 0 | $ 52.8 | $ 0 | |
Goodwill | 241.4 | 241.4 | $ 290.4 | ||
Accumulated goodwill impairment losses | $ (134.6) | (134.6) | (81.8) | ||
Impairment of intangible assets | $ 11.6 | $ 7.3 | |||
Special Alloy Operations Reporting Unit | |||||
Goodwill [Line Items] | |||||
Percentage of goodwill | 81.00% | 81.00% | 67.00% | ||
Additive Reporting Unit | Technology Based Intangible Assets and Customer Relationships | |||||
Goodwill [Line Items] | |||||
Impairment of intangible assets | $ 0 | $ 4.3 | |||
Performance Engineered Products | |||||
Goodwill [Line Items] | |||||
Number of reporting units | reporting_unit | 3 | 3 | |||
Goodwill impairment | 52.8 | ||||
Goodwill | $ 45.9 | 45.9 | $ 94.9 | ||
Accumulated goodwill impairment losses | (134.6) | (134.6) | |||
Specialty Alloy Operations | |||||
Goodwill [Line Items] | |||||
Goodwill | 195.5 | 195.5 | $ 195.5 | ||
Accumulated goodwill impairment losses | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net - Schedule of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in the carrying amount of goodwill by reportable segment | ||||
Goodwill gross, beginning balance | $ 372.2 | |||
Accumulated impairment losses, beginning balance | (81.8) | |||
Total goodwill net, beginning balance | 290.4 | |||
Impairment | $ (52.8) | $ 0 | (52.8) | $ 0 |
Other | 3.8 | |||
Goodwill gross, ending balance | 376 | 376 | ||
Accumulated impairment losses, ending balance | (134.6) | (134.6) | ||
Total goodwill net, ending balance | 241.4 | 241.4 | ||
Specialty Alloy Operations | ||||
Changes in the carrying amount of goodwill by reportable segment | ||||
Total goodwill net, beginning balance | 195.5 | |||
Accumulated impairment losses, ending balance | 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 | 94.9 | |||
Impairment | (52.8) | |||
Other | 3.8 | |||
Accumulated impairment losses, ending balance | (134.6) | (134.6) | ||
Total goodwill net, ending balance | $ 45.9 | $ 45.9 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Dec. 31, 2020 | Jun. 30, 2020 | |
Other intangible assets | ||
Gross Carrying Amount | $ 129.3 | $ 129.3 |
Accumulated Amortization | (72.3) | (69.9) |
Impairment | (11.6) | (7.3) |
Net Carrying Amount | 45.4 | 52.1 |
Trademarks and trade names | ||
Other intangible assets | ||
Gross Carrying Amount | 33.5 | 33.5 |
Accumulated Amortization | (26) | (25.4) |
Impairment | (1.5) | (1.5) |
Net Carrying Amount | $ 6 | 6.6 |
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 | 76.9 |
Accumulated Amortization | (43.6) | (41.2) |
Impairment | (4.2) | (1.2) |
Net Carrying Amount | $ 29.1 | 34.5 |
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) | (0.1) |
Impairment | (0.1) | (0.1) |
Net Carrying Amount | $ 0 | 0 |
Technology | ||
Other intangible assets | ||
Useful Life (in Years) | 15 years | |
Gross Carrying Amount | $ 7.3 | 7.3 |
Accumulated Amortization | (1.5) | (1.5) |
Impairment | (5.8) | (4.5) |
Net Carrying Amount | 0 | 1.3 |
Patents | ||
Other intangible assets | ||
Gross Carrying Amount | 11.4 | 11.4 |
Accumulated Amortization | (1.1) | (1.7) |
Impairment | 0 | 0 |
Net Carrying Amount | $ 10.3 | $ 9.7 |
Patents | Minimum | ||
Other intangible assets | ||
Useful Life (in Years) | 14 years | |
Patents | Maximum | ||
Other intangible assets | ||
Useful Life (in Years) | 20 years |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and benefits | $ 44.7 | $ 50.4 |
Accrued pension liabilities | 34.8 | 20.2 |
Accrued interest expense | 15.6 | 10.4 |
Accrued postretirement benefits | 14 | 14 |
Current portion of lease liabilities | 10.7 | 11.5 |
Derivative financial instruments | 7.2 | 11.1 |
Contract liabilities | 5.5 | 12.3 |
Accrued income taxes | 0.8 | 1 |
Other | 24.1 | 27 |
Total accrued liabilities | $ 157.4 | $ 157.9 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Schedule of components of the net periodic benefit cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2.4 | $ 2.4 | $ 4.8 | $ 4.9 |
Interest cost | 9.9 | 11.7 | 19.8 | 23.4 |
Expected return on plan assets | (13.9) | (15.5) | (27.8) | (31.1) |
Amortization of net loss | 4.3 | 3.9 | 8.6 | 7.8 |
Amortization of prior service cost (benefit) | 0.5 | 0.5 | 1 | 1 |
Net periodic benefit costs | 3.2 | 3 | 6.4 | 6 |
Other Postretirement Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.6 | 0.7 | 1.4 | 1.4 |
Interest cost | 1.9 | 2.3 | 3.8 | 4.6 |
Expected return on plan assets | (1.6) | (1.8) | (3.3) | (3.6) |
Amortization of net loss | 0.9 | 0.6 | 1.8 | 1.2 |
Amortization of prior service cost (benefit) | (1) | (1) | (2) | (2) |
Net periodic benefit costs | $ 0.8 | $ 0.8 | $ 1.7 | $ 1.6 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Narrative (Details) - Pension Plans - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Contributions | $ 4.7 | $ 3.6 |
Expected contributions expected during the remainder of fiscal year | $ 15 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 10, 2020 | Jun. 30, 2020 | |
Debt Instrument [Line Items] | ||||||
Interest costs | $ 10,900,000 | $ 7,500,000 | $ 20,300,000 | $ 14,900,000 | ||
Interest costs, capitalized | 3,000,000 | 2,200,000 | 5,700,000 | 4,200,000 | ||
Debt extinguishment losses, net | $ 0 | $ 0 | 8,200,000 | $ 0 | ||
Interest Rate Swaps | ||||||
Debt Instrument [Line Items] | ||||||
Derivative, gain on derivative | $ 2,300,000 | |||||
Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Borrowing rate | 1.65% | 1.65% | ||||
Senior unsecured notes, 6.375% due July 2028 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | |||
Interest rate | 6.375% | 6.375% | ||||
Senior unsecured notes, 5.20% due July 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Face amount | $ 250,000,000 | $ 250,000,000 | ||||
Interest rate | 5.20% | |||||
Debt extinguishment losses, net | $ 10,500,000 | |||||
Credit Agreement | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 400,000,000 | 400,000,000 | ||||
Letters of credit issued | 6,000,000 | 6,000,000 | ||||
Credit Agreement available for future borrowings | $ 394,000,000 | $ 394,000,000 | ||||
Credit Agreement | LIBOR | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 1.25% | |||||
Credit Agreement | LIBOR | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 1.00% | |||||
Credit Agreement | LIBOR | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 1.75% | |||||
Credit Agreement | Base Rate | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 0.25% | |||||
Credit Agreement | Base Rate | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 0.00% | |||||
Credit Agreement | Base Rate | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate margin | 0.75% | |||||
Letters of credit | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee rate | 0.20% | |||||
Letter of credit fees | 1.50% | |||||
Required interest coverage ratio | 3.50 | |||||
Letters of credit | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee rate | 0.125% | |||||
Letter of credit fees | 1.00% | |||||
Letters of credit | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee rate | 0.40% | |||||
Letter of credit fees | 1.75% | |||||
Required debt to capital ratio (less than) | 0.55 | 0.55 |
Debt - Schedule of long-term de
Debt - Schedule of long-term debt outstanding (Details) - USD ($) | Dec. 31, 2020 | Jul. 10, 2020 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||
Total | $ 694,000,000 | $ 551,800,000 | |
Less: amounts due within one year | 0 | 0 | |
Long-term debt, net of current portion | 694,000,000 | $ 551,800,000 | |
Senior unsecured notes, 5.20% due July 2021 | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.20% | ||
Face amount | $ 250,000,000 | $ 250,000,000 | |
Total | $ 0 | $ 252,300,000 | |
Senior unsecured notes, 4.45% due March 2023 | |||
Debt Instrument [Line Items] | |||
Interest rate | 4.45% | 4.45% | |
Face amount | $ 300,000,000 | $ 300,000,000 | |
Total | $ 299,300,000 | 299,500,000 | |
Senior unsecured notes, 6.375% due July 2028 | |||
Debt Instrument [Line Items] | |||
Interest rate | 6.375% | ||
Face amount | $ 400,000,000 | $ 400,000,000 | |
Total | $ 394,700,000 | $ 0 |
Contingencies and Commitments (
Contingencies and Commitments (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Increase of liabilities of environmental remediation costs of a company-owned former operating site | $ (0.1) | |
Environmental remediation liability | $ 16.1 | $ 16 |
Leases - Narrative (Details)
Leases - Narrative (Details) | Dec. 31, 2020 |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndAccruedLiabilitiesCurrent |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, remaining lease term | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, remaining lease term | 16 years |
Leases - Summary of lease cost
Leases - Summary of lease cost (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Leases [Abstract] | |||||
Operating lease cost | $ 3.2 | $ 3.5 | $ 6.8 | $ 7 | |
Short-term lease cost | 0.7 | 0.8 | 1.6 | 1.6 | |
Variable lease cost | 0.1 | 0.1 | 0.2 | 0.2 | |
Sublease income | (0.2) | 0 | (0.3) | 0 | |
Total lease cost | 3.8 | 4.4 | 8.3 | 8.8 | |
Operating cash flow payments from operating leases | 3.3 | 3.4 | 6.9 | 6.7 | |
Non-cash ROU assets obtained in exchange for lease obligations | $ 0 | $ 11.4 | $ 1.4 | $ 12.3 | |
Weighted-average remaining lease term - operating leases | 8 years | 8 years | 8 years 1 month 6 days | ||
Weighted-average discount rate - operating leases | 3.90% | 3.90% | 3.90% |
Leases - Summary of right-of-us
Leases - Summary of right-of-use assets and lease liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 |
Operating lease assets: | ||
Other assets | $ 44 | $ 52 |
Operating lease liabilities: | ||
Other accrued liabilities | 10.7 | 11.5 |
Other liabilities | 42.9 | 50.3 |
Total operating lease liabilities | $ 53.6 | $ 61.8 |
Leases - Schedule of minimum le
Leases - Schedule of minimum lease payments for operating leases expiring subsequent to September 30, 2019 and December 31,2019 (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 |
Leases [Abstract] | ||
2021 (remaining period of fiscal year) | $ 6.4 | |
2022 | 11.4 | |
2023 | 9.7 | |
2024 | 7.6 | |
2025 | 4.7 | |
Thereafter | 23.7 | |
Total future minimum lease payments | 63.5 | |
Less imputed interest | (9.9) | |
Total | $ 53.6 | $ 61.8 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of fair value of assets and liabilities measured on a recurring basis (Details) - Level 2 - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 |
Assets: | ||
Derivative financial instruments | $ 16.2 | $ 10.1 |
Liabilities: | ||
Derivative financial instruments | $ 11.1 | $ 17.9 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of carrying amounts and estimated fair values of financial instruments not recorded at fair value in the financial statements (Details) - Level 2 - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 |
Carrying Value | ||
Carrying amounts and estimated fair values of financial instruments not recorded at fair value | ||
Long-term debt | $ 694 | $ 551.8 |
Company-owned life insurance | 21.7 | 18.9 |
Fair Value | ||
Carrying amounts and estimated fair values of financial instruments not recorded at fair value | ||
Long-term debt | 754.9 | 551.1 |
Company-owned life insurance | $ 21.7 | $ 18.9 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Narrative (Details) lb in Millions | 3 Months Ended | 6 Months Ended | ||||
Dec. 31, 2020USD ($)lb | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)lb | Dec. 31, 2019USD ($) | Jun. 30, 2020USD ($) | |
Fair value of derivatives | ||||||
Total asset derivatives | $ 16,800,000 | $ 16,800,000 | ||||
Total liability derivatives | 11,700,000 | 11,700,000 | ||||
Cash collateral held by counterparties | $ 0 | 0 | $ 0 | |||
Net derivative gains included in AOCI expected to be reclassified into earnings | 2,200,000 | |||||
Interest Rate Swaps | ||||||
Fair value of derivatives | ||||||
Derivative, gain on derivative | $ 2,300,000 | |||||
Cash flow hedges | Commodity contracts | ||||||
Fair value of derivatives | ||||||
Amounts of raw materials to be purchased from forward contracts (in pounds) | lb | 9 | 9 | ||||
Fair value hedging | Interest Rate Swaps | ||||||
Fair value of derivatives | ||||||
Derivative, gain on derivative | $ 2,300,000 | |||||
Total notional amounts of interest rate contracts | $ 0 | $ 0 | $ 150,000,000 | |||
Interest expense | Cash flow hedges | Interest Rate Swaps | ||||||
Fair value of derivatives | ||||||
Interest rate swaps net gains (losses) | 100,000 | $ 100,000 | 200,000 | $ 200,000 | ||
Interest expense | Fair value hedging | Interest Rate Swaps | ||||||
Fair value of derivatives | ||||||
Interest rate swaps net gains (losses) | $ 0 | $ (100,000) | $ (400,000) | $ (100,000) |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Schedule of fair value and location of outstanding derivative contracts recorded in consolidated balance sheets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 |
Liability Derivatives: | ||
Total liability derivatives | $ 11.7 | |
Designated as Hedging Instrument | ||
Asset Derivatives: | ||
Total asset derivatives | 16.2 | $ 10.1 |
Liability Derivatives: | ||
Total liability derivatives | 11.1 | 17.9 |
Designated as Hedging Instrument | Other current assets | ||
Asset Derivatives: | ||
Total asset derivatives | 8.6 | 3.6 |
Designated as Hedging Instrument | Other assets | ||
Asset Derivatives: | ||
Total asset derivatives | 7.6 | 6.5 |
Designated as Hedging Instrument | Accrued liabilities | ||
Liability Derivatives: | ||
Total liability derivatives | 7.2 | 11.1 |
Designated as Hedging Instrument | Other liabilities | ||
Liability Derivatives: | ||
Total liability derivatives | 3.9 | 6.8 |
Designated as Hedging Instrument | Interest Rate Swaps | ||
Asset Derivatives: | ||
Total asset derivatives | 0 | 4 |
Liability Derivatives: | ||
Total liability derivatives | 0 | 0 |
Designated as Hedging Instrument | Interest Rate Swaps | Other current assets | ||
Asset Derivatives: | ||
Total asset derivatives | 0 | 1.2 |
Designated as Hedging Instrument | Interest Rate Swaps | Other assets | ||
Asset Derivatives: | ||
Total asset derivatives | 0 | 2.8 |
Designated as Hedging Instrument | Interest Rate Swaps | Accrued liabilities | ||
Liability Derivatives: | ||
Total liability derivatives | 0 | 0 |
Designated as Hedging Instrument | Interest Rate Swaps | Other liabilities | ||
Liability Derivatives: | ||
Total liability derivatives | 0 | 0 |
Designated as Hedging Instrument | Foreign exchange contracts | ||
Asset Derivatives: | ||
Total asset derivatives | 0 | 0.8 |
Liability Derivatives: | ||
Total liability derivatives | 1.5 | 0 |
Designated as Hedging Instrument | Foreign exchange contracts | Other current assets | ||
Asset Derivatives: | ||
Total asset derivatives | 0 | 0.2 |
Designated as Hedging Instrument | Foreign exchange contracts | Other assets | ||
Asset Derivatives: | ||
Total asset derivatives | 0 | 0.6 |
Designated as Hedging Instrument | Foreign exchange contracts | Accrued liabilities | ||
Liability Derivatives: | ||
Total liability derivatives | 1.5 | 0 |
Designated as Hedging Instrument | Foreign exchange contracts | Other liabilities | ||
Liability Derivatives: | ||
Total liability derivatives | 0 | 0 |
Designated as Hedging Instrument | Commodity contracts | ||
Asset Derivatives: | ||
Total asset derivatives | 16.2 | 5.3 |
Liability Derivatives: | ||
Total liability derivatives | 9.6 | 17.9 |
Designated as Hedging Instrument | Commodity contracts | Other current assets | ||
Asset Derivatives: | ||
Total asset derivatives | 8.6 | 2.2 |
Designated as Hedging Instrument | Commodity contracts | Other assets | ||
Asset Derivatives: | ||
Total asset derivatives | 7.6 | 3.1 |
Designated as Hedging Instrument | Commodity contracts | Accrued liabilities | ||
Liability Derivatives: | ||
Total liability derivatives | 5.7 | 11.1 |
Designated as Hedging Instrument | Commodity contracts | Other liabilities | ||
Liability Derivatives: | ||
Total liability derivatives | $ 3.9 | $ 6.8 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Summary of the gains (losses) related to cash flow hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | $ 9.1 | $ (22.1) | $ 22.9 | $ 18.4 |
Amount of Gain Reclassified from AOCI into Income | 2.5 | 3 | 5.4 | 8.3 |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | 9.2 | (21.9) | 23 | 17.9 |
Commodity contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Reclassified from AOCI into Income | 2.4 | 2.8 | 5.2 | 7.5 |
Commodity contracts | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Commodity contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | (0.1) | (0.2) | (0.1) | 0.5 |
Foreign exchange contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Foreign exchange contracts | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Reclassified from AOCI into Income | 0 | 0.1 | 0 | 0.6 |
Foreign exchange contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Forward interest rate swaps | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Forward interest rate swaps | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Reclassified from AOCI into Income | 0 | 0 | 0 | 0 |
Forward interest rate swaps | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain Reclassified from AOCI into Income | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.2 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Summary of effect of derivative instruments on income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Net sales | $ 348.8 | $ 573 | $ 702.1 | $ 1,158.4 |
Cost of sales | 342.8 | 460.4 | 692.6 | 933.1 |
Interest expense | 7.9 | 5.3 | 14.6 | 10.7 |
Amount of gain reclassified from AOCI to income | 2.5 | 3 | 5.4 | 8.3 |
Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain | 0 | 0.1 | 0 | 0.6 |
Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain | 2.4 | 2.8 | 5.2 | 7.5 |
Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Total gain | 0.1 | 0.1 | 0.2 | 0.2 |
Commodity contracts | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain reclassified from AOCI to income | 0 | 0 | 0 | 0 |
Commodity contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain reclassified from AOCI to income | 2.4 | 2.8 | 5.2 | 7.5 |
Commodity contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain reclassified from AOCI to income | 0 | 0 | 0 | 0 |
Foreign currency forward contracts | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain reclassified from AOCI to income | 0 | 0.1 | 0 | 0.6 |
Foreign currency forward contracts | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain reclassified from AOCI to income | 0 | 0 | 0 | 0 |
Foreign currency forward contracts | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain reclassified from AOCI to income | 0 | 0 | 0 | 0 |
Interest Rate Swaps | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain reclassified from AOCI to income | 0 | 0 | 0 | 0 |
Hedged Item | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 |
Interest Rate Swaps | Cost of sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain reclassified from AOCI to income | 0 | 0 | 0 | 0 |
Hedged Item | 0 | 0 | 0 | 0 |
Derivatives designated as hedging instruments | 0 | 0 | 0 | 0 |
Interest Rate Swaps | Interest expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of gain reclassified from AOCI to income | 0.1 | 0.1 | 0.2 | 0.2 |
Hedged Item | 0 | (0.1) | (2.7) | (0.1) |
Derivatives designated as hedging instruments | $ 0 | $ 0.1 | $ 2.7 | $ 0.1 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities - Summary of amounts recorded in balance sheet related to cumulative basis adjustment for fair value interest rate risk hedges (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Jun. 30, 2020 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Carrying amount of the hedged liabilities | $ 0 | $ 152.8 |
Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged liabilities | $ 0 | $ 2.8 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | ||||
Unrealized gains on company-owned life insurance contracts and investments held in rabbi trusts | $ 3.1 | $ 1.4 | $ 4.4 | $ 1.5 |
Foreign exchange (loss) gain | (0.8) | 0 | (3.5) | 0.2 |
Pension earnings, interest and deferrals | (1) | (0.7) | (2) | (1.4) |
Other | 0 | 0.1 | 0 | 0.2 |
Total other income (expense), net | $ 1.3 | $ 0.8 | $ (1.1) | $ 0.5 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense | $ (10.7) | $ 11.7 | $ (29.7) | $ 24.6 |
Income tax expense as a percent of pre-tax income (loss) | 11.20% | 23.20% | 18.40% | 23.50% |
Goodwill impairment | $ 52.8 | $ 0 | $ 52.8 | $ 0 |
Effective income tax rate reconciliation, excluding non-deductible expense, impairment losses, percent | 24.80% | 27.10% | ||
Tax benefit associated with debt prepayment costs | $ 2 | |||
Tax benefit related to the impact of restructuring charges | 2.4 | |||
Tax expense (benefit) attributable to employee share-based compensation | $ 1.2 | $ (0.5) | ||
Operating loss carryforward, income tax expense (benefit), CARES act | $ 7 |
Business Segments - Narrative (
Business Segments - Narrative (Details) - segment | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Concentration Risk [Line Items] | |||||
Number of reportable segments | 2 | ||||
Customer Concentration Risk | Revenue | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 10.00% | 10.00% | |||
Customer Concentration Risk | Revenue | Howmet Aerospace Inc. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 10.00% | 10.00% | |||
Customer Concentration Risk | Accounts Receivable | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 10.00% | ||||
Customer Concentration Risk | Accounts Receivable | Howmet Aerospace Inc. | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 10.00% |
Business Segments - Schedule of
Business Segments - Schedule of results of operation, depreciation and amortization, capital expenditures and total assets by reportable segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |||||
Consolidated net sales | $ 348.8 | $ 573 | $ 702.1 | $ 1,158.4 | |
Operating (Loss) Income: | |||||
Consolidated operating (loss) income | (89) | 55 | (137.8) | 114.8 | |
Depreciation and Amortization: | |||||
Consolidated depreciation and amortization | 28.6 | 30.5 | 59.6 | 61 | |
Capital Expenditures: | |||||
Consolidated capital expenditures | 26.6 | 46.7 | 59.9 | 94.3 | |
Total Assets: | |||||
Consolidated total assets | 3,043.9 | 3,043.9 | $ 3,227.2 | ||
Corporate | |||||
Operating (Loss) Income: | |||||
Consolidated operating (loss) income | (70.6) | (21.9) | (97.1) | (41) | |
Depreciation and Amortization: | |||||
Consolidated depreciation and amortization | 1 | 1.3 | 2.7 | 2.6 | |
Capital Expenditures: | |||||
Consolidated capital expenditures | 9.8 | 16.4 | 19.3 | 32.6 | |
Total Assets: | |||||
Consolidated total assets | 510 | 510 | 428.9 | ||
Intersegment | |||||
Revenue from Contract with Customer [Abstract] | |||||
Consolidated net sales | (6.4) | (16) | (15.7) | (31.1) | |
Operating (Loss) Income: | |||||
Consolidated operating (loss) income | 0.4 | 0.2 | 0.4 | 0.2 | |
Depreciation and Amortization: | |||||
Consolidated depreciation and amortization | 0.1 | (0.2) | 0.1 | (0.5) | |
Capital Expenditures: | |||||
Consolidated capital expenditures | 0 | 0 | 0 | 0 | |
Total Assets: | |||||
Consolidated total assets | (13.9) | (13.9) | (9.2) | ||
Specialty Alloys Operations | Operating | |||||
Revenue from Contract with Customer [Abstract] | |||||
Consolidated net sales | 300.4 | 483 | 601.1 | 974.1 | |
Operating (Loss) Income: | |||||
Consolidated operating (loss) income | (11.6) | 76.3 | (30.2) | 157.3 | |
Depreciation and Amortization: | |||||
Consolidated depreciation and amortization | 23.3 | 23.2 | 46.5 | 46.8 | |
Capital Expenditures: | |||||
Consolidated capital expenditures | 15.7 | 24.9 | 37.4 | 50.1 | |
Total Assets: | |||||
Consolidated total assets | 2,088.7 | 2,088.7 | 2,259 | ||
Performance Engineered Products | Operating | |||||
Revenue from Contract with Customer [Abstract] | |||||
Consolidated net sales | 54.8 | 106 | 116.7 | 215.4 | |
Operating (Loss) Income: | |||||
Consolidated operating (loss) income | (7.2) | 0.4 | (10.9) | (1.7) | |
Depreciation and Amortization: | |||||
Consolidated depreciation and amortization | 4.2 | 6.2 | 10.3 | 12.1 | |
Capital Expenditures: | |||||
Consolidated capital expenditures | 1.1 | $ 5.4 | 3.2 | $ 11.6 | |
Total Assets: | |||||
Consolidated total assets | $ 459.1 | $ 459.1 | $ 548.5 |
Reclassifications from Accumu_3
Reclassifications from Accumulated Other Comprehensive (Loss) Income (AOCI) - Schedule of changes in AOCI by component, net of tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances at the beginning of the period | $ 1,407.5 | $ 1,577 | $ 1,445.7 | $ 1,520.1 |
Other comprehensive (loss) income before reclassifications | 15.7 | (9.4) | 31.8 | 15.8 |
Amounts reclassified from AOCI | 1.6 | 0.7 | 3.1 | (0.3) |
Other comprehensive income (loss), net of tax | 17.3 | (8.7) | 34.9 | 15.5 |
Balances at the end of the period | 1,332.9 | 1,603.4 | 1,332.9 | 1,603.4 |
AOCI Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances at the beginning of the period | (380.4) | (327.6) | (398) | (351.8) |
Balances at the end of the period | (363.1) | (336.3) | (363.1) | (336.3) |
Cash flow hedging items | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances at the beginning of the period | (2.8) | 11.9 | (11.1) | (14.8) |
Other comprehensive (loss) income before reclassifications | 6.9 | (16.8) | 17.3 | 13.9 |
Amounts reclassified from AOCI | (2) | (2.3) | (4.1) | (6.3) |
Other comprehensive income (loss), net of tax | 4.9 | (19.1) | 13.2 | 7.6 |
Balances at the end of the period | 2.1 | (7.2) | 2.1 | (7.2) |
Pension and other postretirement benefit plan items | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances at the beginning of the period | (330.7) | (290.3) | (334.3) | (293.3) |
Other comprehensive (loss) income before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI | 3.6 | 3 | 7.2 | 6 |
Other comprehensive income (loss), net of tax | 3.6 | 3 | 7.2 | 6 |
Balances at the end of the period | (327.1) | (287.3) | (327.1) | (287.3) |
Foreign currency items | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balances at the beginning of the period | (46.9) | (49.2) | (52.6) | (43.7) |
Other comprehensive (loss) income before reclassifications | 8.8 | 7.4 | 14.5 | 1.9 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Other comprehensive income (loss), net of tax | 8.8 | 7.4 | 14.5 | 1.9 |
Balances at the end of the period | $ (38.1) | $ (41.8) | $ (38.1) | $ (41.8) |
Reclassifications from Accumu_4
Reclassifications from Accumulated Other Comprehensive (Loss) Income (AOCI) - Schedule of amounts reclassified from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | $ 342.8 | $ 460.4 | $ 692.6 | $ 933.1 |
Net sales | 348.8 | 573 | 702.1 | 1,158.4 |
Interest expense | 7.9 | 5.3 | 14.6 | 10.7 |
(Loss) gain | 1.3 | 0.8 | (1.1) | 0.5 |
(Loss) income before income taxes | (95.6) | 50.5 | (161.7) | 104.6 |
Tax (expense)/benefit | 10.7 | (11.7) | 29.7 | (24.6) |
Net (loss) income | (84.9) | 38.8 | (132) | 80 |
Amount Reclassified from AOCI | Cash flow hedging items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
(Loss) income before income taxes | 2.5 | 3 | 5.4 | 8.3 |
Tax (expense)/benefit | (0.5) | (0.7) | (1.3) | (2) |
Net (loss) income | 2 | 2.3 | 4.1 | 6.3 |
Amount Reclassified from AOCI | Pension and other postretirement benefit plan items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
(Loss) income before income taxes | (4.7) | (4) | (9.4) | (8) |
Tax (expense)/benefit | 1.1 | 1 | 2.2 | 2 |
Net (loss) income | (3.6) | (3) | (7.2) | (6) |
Amount Reclassified from AOCI | Net actuarial loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
(Loss) gain | (5.2) | (4.5) | (10.4) | (9) |
Amount Reclassified from AOCI | Prior service benefit | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
(Loss) gain | 0.5 | 0.5 | 1 | 1 |
Amount Reclassified from AOCI | Commodity contracts | Cash flow hedging items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | 2.4 | 2.8 | 5.2 | 7.5 |
Amount Reclassified from AOCI | Foreign exchange contracts | Cash flow hedging items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net sales | 0 | 0.1 | 0 | 0.6 |
Amount Reclassified from AOCI | Forward interest rate swaps | Cash flow hedging items | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | $ 0.1 | $ 0.1 | $ 0.2 | $ 0.2 |