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Business Segments
 9 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Business Segments
Business Segments
The Company operates in two business segments: High Performance Materials & Components and Flat Rolled Products. Effective with the third quarter 2015, the Company changed its method of determining business unit performance as internally reported to its senior management, CEO, and Board of Directors. Segment operating results are now reported excluding all effects of LIFO inventory accounting and any related changes in net realizable value inventory reserves which offset the Company’s aggregate net debit LIFO valuation balance.
Additionally, segment operating results are now measured including all retirement benefit expense attributable to the business unit, for both current and former employees. Previously, the Company excluded defined benefit pension expense and all defined benefit and defined contribution postretirement medical and life insurance expense from segment operating profit. This change better aligns comparative operating performance following the 2014 U.S. defined benefit pension freeze for all non-represented employees and the change in 2015 to a company-wide defined contribution retirement plan structure. Under the Company’s previous reporting methodology, defined contribution retirement plan expense remained in segment operating results whereas defined benefit plan costs were excluded. Operating results for business segments, corporate and closed company and other expenses now include all applicable retirement benefit plan costs for pension and other postretirement benefits.
For the three and nine month periods ended September 30, 2015 and 2014, the amount of defined benefit pension expense and all defined benefit and defined contribution postretirement medical and life insurance expense included in business segment results, corporate expense and closed company and other expenses was as follows:
(in millions)
 
 
 
 
 
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
High Performance Materials & Components
$
3.0

 
$
5.1

 
$
9.1

 
$
15.6

Flat Rolled Products
14.7

 
15.6

 
44.1

 
46.8

Total
17.7

 
20.7

 
53.2

 
62.4

Corporate expenses
1.0

 
1.3

 
2.9

 
4.0

Closed company and other expenses
0.6

 
1.8

 
1.7

 
5.4

Total retirement benefit expense
$
19.3

 
$
23.8

 
$
57.8

 
$
71.8


Management considers these changes to be a more useful method of measuring business unit financial performance based on changes to retirement benefit plans and the impact of the Company’s aggregate net debit LIFO position. The segment results below reflect these changes for all periods presented.
The measure of segment operating profit also excludes income taxes, corporate expenses, net interest 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 September 30,
 
Nine months ended September 30,
 
2015
 
2014
 
2015
 
2014
Total sales:
 
 
 
 
 
 
 
High Performance Materials & Components
$
490.1

 
$
527.1

 
$
1,588.5

 
$
1,562.6

Flat Rolled Products
377.8

 
587.0

 
1,516.0

 
1,747.1

 
867.9

 
1,114.1

 
3,104.5

 
3,309.7

Intersegment sales:
 
 
 
 
 
 
 
High Performance Materials & Components
15.4

 
19.4

 
59.9

 
56.4

Flat Rolled Products
19.8

 
25.1

 
63.9

 
77.4

 
35.2

 
44.5

 
123.8

 
133.8

Sales to external customers:
 
 
 
 
 
 
 
High Performance Materials & Components
474.7

 
507.7

 
1,528.6

 
1,506.2

Flat Rolled Products
358.0

 
561.9

 
1,452.1

 
1,669.7

 
$
832.7

 
$
1,069.6

 
$
2,980.7

 
$
3,175.9

Operating profit (loss):
 
 
 
 
 
 
 
High Performance Materials & Components
$
18.8

 
$
53.8

 
$
136.1

 
$
162.5

Flat Rolled Products
(91.8
)
 
6.1

 
(121.8
)
 
(32.7
)
Total operating profit (loss)
(73.0
)
 
59.9

 
14.3

 
129.8

LIFO and net realizable value reserves
(0.2
)
 
(10.0
)
 
—

 
(12.9
)
Corporate expenses
(10.7
)
 
(11.4
)
 
(33.6
)
 
(37.3
)
Closed company and other expenses
(6.5
)
 
(9.2
)
 
(18.6
)
 
(22.1
)
Interest expense, net
(27.5
)
 
(25.2
)
 
(81.0
)
 
(82.8
)
Income (loss) from continuing operations before income taxes
$
(117.9
)
 
$
4.1

 
$
(118.9
)
 
$
(25.3
)