XML 31 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Business Segments
 6 Months Ended
Jun. 30, 2018
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 operations and other expenses, restructuring and asset impairment charges, and non-operating gains and losses. 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,
 
2018
 
2017
 
2018
 
2017
Total sales:
 
 
 
 
 
 
 
High Performance Materials & Components
$
611.7

 
$
543.3

 
$
1,191.1

 
$
1,067.0

Flat Rolled Products
439.3

 
373.2

 
878.4

 
746.2

 
1,051.0

 
916.5

 
2,069.5

 
1,813.2

Intersegment sales:
 
 
 
 
 
 
 
High Performance Materials & Components
19.8

 
16.9

 
38.5

 
30.2

Flat Rolled Products
21.7

 
19.4

 
42.5

 
36.9

 
41.5

 
36.3

 
81.0

 
67.1

Sales to external customers:
 
 
 
 
 
 
 
High Performance Materials & Components
591.9

 
526.4

 
1,152.6

 
1,036.8

Flat Rolled Products
417.6

 
353.8

 
835.9

 
709.3

 
$
1,009.5

 
$
880.2

 
$
1,988.5

 
$
1,746.1



 
Three months ended June 30,
 
Six months ended June 30,
 
2018
 
2017
 
2018
 
2017
Operating profit:
 
 
 
 
 
 
 
High Performance Materials & Components
$
97.9

 
$
68.0

 
$
183.4

 
$
118.9

Flat Rolled Products
26.1

 
2.9

 
37.0

 
21.9

Total operating profit
124.0

 
70.9

 
220.4

 
140.8

LIFO and net realizable value reserves
—

 
(0.1
)
 
—

 
(0.1
)
Corporate expenses
(12.9
)
 
(11.8
)
 
(26.1
)
 
(22.1
)
Closed operations and other expenses
(5.1
)
 
(13.2
)
 
(13.2
)
 
(16.2
)
Gain on joint venture deconsolidation (See Note 5)
—

 
—

 
15.9

 
—

Interest expense, net
(25.5
)
 
(34.5
)
 
(51.0
)
 
(68.0
)
Income before income taxes
$
80.5

 
$
11.3

 
$
146.0

 
$
34.4



Closed operations and other expenses were lower in 2018, compared to the prior year periods, primarily due to foreign currency remeasurement gains in the second quarter 2018 compared to remeasurement losses in 2017 from the Company’s European Treasury Center operation. The reduction in interest expense compared to the prior year period is due to the redemption of the the Company's previously outstanding 9.375% Senior Notes due 2019 in the fourth quarter of 2017.