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Business Segments
 3 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
Business Segments
Business Segments
The Company operates in two business segments: High Performance Materials & Components and Flat Rolled Products. The measure of segment operating profit, which is used to analyze the performance and results of the business segments, excludes income taxes, corporate expenses, net interest expense, retirement benefit expense, closed company expenses and restructuring costs, if any. Discontinued operations are also excluded. Management believes segment operating profit, as defined, provides an appropriate measure of controllable operating results at the business segment level. Following is certain financial information with respect to the Company’s business segments for the periods indicated (in millions):
 
 
Three months ended March 31,
 
2015
 
2014
Total sales:
 
 
 
High Performance Materials & Components
$
564.9

 
$
504.1

Flat Rolled Products
604.7

 
529.6

 
1,169.6

 
1,033.7

Intersegment sales:
 
 
 
High Performance Materials & Components
22.1

 
19.7

Flat Rolled Products
22.0

 
26.7

 
44.1

 
46.4

Sales to external customers:
 
 
 
High Performance Materials & Components
542.8

 
484.4

Flat Rolled Products
582.7

 
502.9

 
$
1,125.5

 
$
987.3

Operating profit (loss):
 
 
 
High Performance Materials & Components
$
75.9

 
$
69.1

Flat Rolled Products
7.9

 
(25.6
)
Total operating profit
83.8

 
43.5

Corporate expenses
(11.8
)
 
(11.5
)
Interest expense, net
(26.7
)
 
(29.1
)
Closed company and other expenses
(5.4
)
 
(5.0
)
Retirement benefit expense
(19.3
)
 
(23.9
)
Income (loss) from continuing operations before income taxes
$
20.6

 
$
(26.0
)

Retirement benefit expense represents defined benefit pension expense and other postretirement benefit expense for both defined benefit and defined contribution plans. Operating profit with respect to the Company’s business segments excludes any retirement benefit expense. Costs associated with multiemployer pension plans are included in segment operating profit, and costs associated with defined contribution retirement plans are included in segment operating profit or corporate expenses, as applicable.
Interest expense, net of interest income, in the first quarter 2015 was $26.7 million, compared to net interest expense of $29.1 million in the first quarter 2014. The decrease in interest expense was primarily due to lower debt levels. Interest expense benefited from the capitalization of interest costs of $0.6 million in the first quarter 2015 compared to $2.3 million in the first quarter 2014. The decrease in capitalized interest primarily related to the Flat Rolled Products segment Hot-Rolling and Processing Facility.