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Business Segments
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Business Segments
Business Segments
The Company operates in two business segments: High Performance Materials & Components (HPMC) and Flat Rolled Products (FRP). 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 operations 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 March 31,
 
2017
 
2016
Total sales:
 
 
 
High Performance Materials & Components
$
523.7

 
$
507.9

Flat Rolled Products
373.0

 
281.2

 
896.7

 
789.1

Intersegment sales:
 
 
 
High Performance Materials & Components
13.3

 
14.9

Flat Rolled Products
17.5

 
16.7

 
30.8

 
31.6

Sales to external customers:
 
 
 
High Performance Materials & Components
510.4

 
493.0

Flat Rolled Products
355.5

 
264.5

 
$
865.9

 
$
757.5

 
 
 
 
 
Three months ended March 31,
 
2017
 
2016
Operating profit (loss):
 
 
 
High Performance Materials & Components
$
50.9

 
$
29.1

Flat Rolled Products
19.0

 
(109.6
)
Total operating profit (loss)
69.9

 
(80.5
)
LIFO and net realizable value reserves
—

 
—

Corporate expenses
(10.3
)
 
(11.0
)
Closed operations and other expenses
(3.0
)
 
(3.5
)
Restructuring and other charges
—

 
(9.0
)
Interest expense, net
(33.5
)
 
(28.3
)
Income (loss) before income taxes
$
23.1

 
$
(132.3
)


Closed operations and other expenses in the first quarter 2017 benefited from certain non-routine items involving property tax adjustments, changes to facility closure reserves, and non-operating royalty income, which largely offset higher costs due to the additions of the Rowley, UT, Midland, PA and Bagdad, PA facilities as a result of closure actions in 2016. First quarter 2017 results also reflect lower environmental and retirement benefit expenses for closed operations.

First quarter 2016 results include a $9.0 million restructuring charge for severance obligations in the Flat Rolled Products (FRP) operations, with the reduction of approximately one-third of FRP’s salaried workforce, which was largely completed by the end of 2016. The severance charge was excluded from FRP segment operating results. Reserves for restructuring charges at March 31, 2017 were $22.4 million, of which $10.3 million relates to severance and employee benefit costs and $12.1 million to closure costs. The decline in these reserves compared to $33.1 million at December 31, 2016 is due to payments. These restructuring reserves are expected to be substantially paid in 2017.