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Business Segments
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company operates in two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The measure of segment EBITDA categorically excludes income taxes, depreciation and amortization, corporate expenses, net interest expense, closed operations and other income (expense), charges for goodwill and asset impairments, restructuring and other credits/charges, strike related costs, debt extinguishment charges and gains or losses on asset sales and sales of businesses. Management believes segment EBITDA, 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,
 2023202220232022
Total sales:
High Performance Materials & Components$562.8 $439.8 $1,092.4 $820.6 
Advanced Alloys & Solutions613.4 623.1 1,239.2 1,158.7 
1,176.2 1,062.9 2,331.6 1,979.3 
Intersegment sales:
High Performance Materials & Components35.7 43.7 94.2 82.9 
Advanced Alloys & Solutions94.5 59.7 153.3 102.8 
130.2 103.4 247.5 185.7 
Sales to external customers:
High Performance Materials & Components527.1 396.1 998.2 737.7 
Advanced Alloys & Solutions518.9 563.4 1,085.9 1,055.9 
$1,046.0 $959.5 $2,084.1 $1,793.6 
Three months ended June 30,Six months ended June 30,
 2023202220232022
EBITDA:
High Performance Materials & Components$108.1 $60.3 $188.2 $128.4 
Advanced Alloys & Solutions63.2 104.6 135.9 179.9 
Total segment EBITDA171.3 164.9 324.1 308.3 
Corporate expenses(18.1)(16.7)(35.4)(33.7)
Closed operations and other expense(3.4)(5.1)(6.2)(6.5)
Depreciation & amortization (a)(35.9)(36.0)(71.0)(71.5)
Interest expense, net(21.3)(23.4)(41.2)(47.0)
Restructuring and other credits (charges)(9.2)1.3 (10.4)(6.2)
Loss on asset sales and sales of businesses, net (0.6)(115.9)(0.6)(134.2)
Income (loss) before income taxes$82.8 $(30.9)$159.3 $9.2 
a) The following is depreciation & amortization by each business segment:
Three months ended June 30,Six months ended June 30,
2023202220232022
High Performance Materials & Components$17.9 $16.9 $35.3 $34.8 
Advanced Alloys & Solutions16.2 16.7 32.3 32.9 
Other1.8 2.4 3.4 3.8 
$35.9 $36.0 $71.0 $71.5 
Beginning in 2020, the U.S. government enacted various relief packages in response to the COVID-19 pandemic. Results for the second quarter and six months ended June 30, 2022 include $5.6 million and $34.3 million, respectively, related to this government sponsored COVID relief in segment EBITDA. HPMC segment second quarter and six month 2022 results include $5.6 million and $27.5 million, respectively, for the Aviation Manufacturing Jobs Protection Program and employee retention credits, and AA&S segment six month 2022 results include $6.8 million in employee retention credits.
Restructuring and other charges of $9.2 million for the second quarter ended June 30, 2023 include $2.7 million of severance-related restructuring charges as well as $4.5 million of start up costs and $2.0 million primarily for asset write-offs for the closure of our Robinson, PA operations, both of which are included within cost of sales on the consolidated statements of operations. Restructuring and other charges of $10.4 million for the six months ended June 30, 2023 also include $1.2 million of additional start-up costs related to the Company’s titanium operations in Albany, OR, which are included within cost of sales on the consolidated statements of operations. Restructuring and other charges for the second quarter and six months ended June 30, 2022 relate to $1.3 million and $2.4 million, respectively, of restructuring credits for a reduction in severance-related reserves (see Note 6). The six months ended June 30, 2022 also includes an $8.6 million charge for a litigation reserve, which is reported in other nonoperating income (expense) on the consolidated statement of operations.
Depreciation expense in the second quarter and six months ended June 30, 2023 includes $0.8 million of accelerated depreciation on fixed assets for the closure of our Robinson, PA operations.
Loss on asset sales and sales of businesses, net, for the second quarter and six months ended June 30, 2023 is related to a $0.6 million loss on the sale of the Company’s Northbrook, IL operations, for which no proceeds were received but $0.3 million of transaction costs were paid and reported as an investing activity on the consolidated statement of cash flows. Loss on asset sales and sales of businesses, net, for the six months ended June 30, 2022 relate to a $141.0 million loss on the sale of the Company’s Sheffield, UK operations, partially offset by a $6.8 million gain from the sale of assets from the Pico Rivera, CA operations. Loss on asset sales and sales of businesses, net, for the second quarter ended June 30, 2022 relates to the loss on the sale of the Company’s Sheffield, UK operations for the completion of the sale.