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Business Segments
 6 Months Ended
Jun. 30, 2016
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 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, income taxes, corporate expenses, net interest expense, closed company expenses and restructuring costs, if any. 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 June 30,
 
Six months ended June 30,
 
2016
 
2015
 
2016
 
2015
Total sales:
 
 
 
 
 
 
 
High Performance Materials & Components
$
511.1

 
$
533.5

 
$
1,019.0

 
$
1,098.4

Flat Rolled Products
324.3

 
533.5

 
605.5

 
1,138.2

 
835.4

 
1,067.0

 
1,624.5

 
2,236.6

Intersegment sales:
 
 
 
 
 
 
 
High Performance Materials & Components
12.7

 
22.4

 
27.6

 
44.5

Flat Rolled Products
12.2

 
22.1

 
28.9

 
44.1

 
24.9

 
44.5

 
56.5

 
88.6

Sales to external customers:
 
 
 
 
 
 
 
High Performance Materials & Components
498.4

 
511.1

 
991.4

 
1,053.9

Flat Rolled Products
312.1

 
511.4

 
576.6

 
1,094.1

 
$
810.5

 
$
1,022.5

 
$
1,568.0

 
$
2,148.0

Operating profit (loss):
 
 
 
 
 
 
 
High Performance Materials & Components
$
38.8

 
$
44.4

 
$
67.9

 
$
117.3

Flat Rolled Products
(31.8
)
 
(23.2
)
 
(141.4
)
 
(30.0
)
Total operating profit (loss)
7.0

 
21.2

 
(73.5
)
 
87.3

LIFO and net realizable value reserves
0.4

 
0.2

 
0.4

 
0.2

Corporate expenses
(11.8
)
 
(10.1
)
 
(22.8
)
 
(22.9
)
Closed company and other expenses
(5.7
)
 
(6.1
)
 
(9.2
)
 
(12.1
)
Restructuring charges
(1.0
)
 
—

 
(10.0
)
 
—

Interest expense, net
(30.3
)
 
(26.8
)
 
(58.6
)
 
(53.5
)
Loss before income taxes
$
(41.4
)
 
$
(21.6
)
 
$
(173.7
)
 
$
(1.0
)


The first six months of 2016 include $10.0 million of restructuring charges for severance obligations. During the first quarter of 2016, a $9.0 million charge was recorded for severance obligations in the Flat Rolled Products (FRP) operations, with the reduction of approximately one-third of FRP’s salaried workforce through the elimination of over 250 positions, which is expected to be completed by the end of 2016. During the second quarter of 2016, an additional $1.0 million charge was recorded for severance obligations for approximately 20 employees in the High Performance Materials & Components segment. These severance charges were excluded from segment operating results. Reserves for restructuring charges at June 30, 2016 were approximately $11 million, consisting of severance charges and idling costs incurred in both 2015 and 2016, the majority of which are expected to be paid in 2016.