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Business Segments | 6 Months Ended
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Jun. 30, 2024
Segment Reporting [Abstract] |
Business Segments | Business Segments The Company operates under two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). The measure of segment EBITDA excludes income taxes, depreciation and amortization, corporate expenses, net interest expense, closed operations and other expenses, charges for goodwill and asset impairments, restructuring and other credits/charges, strike related costs, pension remeasurement gains/losses, 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):
| Quarter ended |  | Year-to-date period ended
| June 30, 2024 |  | July 2, 2023 |  | June 30, 2024 |  | July 2, 2023
Total sales: |  |  |  |  |  |  |
High Performance Materials & Components | $ | 643.8 |  |  | $ | 562.8 |  |  | $ | 1,215.7 |  |  | $ | 1,092.4 |
Advanced Alloys & Solutions | 604.6 |  |  | 613.4 |  |  | 1,165.3 |  |  | 1,239.2 |
| 1,248.4 |  |  | 1,176.2 |  |  | 2,381.0 |  |  | 2,331.6 |
Intersegment sales: |  |  |  |  |  |  |
High Performance Materials & Components | 81.8 |  |  | 35.7 |  |  | 123.8 |  |  | 94.2 |
Advanced Alloys & Solutions | 71.3 |  |  | 94.5 |  |  | 119.0 |  |  | 153.3 |
| 153.1 |  |  | 130.2 |  |  | 242.8 |  |  | 247.5 |
Sales to external customers: |  |  |  |  |  |  |
High Performance Materials & Components | 562.0 |  |  | 527.1 |  |  | 1,091.9 |  |  | 998.2 |
Advanced Alloys & Solutions | 533.3 |  |  | 518.9 |  |  | 1,046.3 |  |  | 1,085.9 |
| $ | 1,095.3 |  |  | $ | 1,046.0 |  |  | $ | 2,138.2 |  |  | $ | 2,084.1 |
| Quarter ended |  | Year-to-date period ended
| June 30, 2024 |  | July 2, 2023 |  | June 30, 2024 |  | July 2, 2023
EBITDA: |  |  |  |  |  |  |
High Performance Materials & Components | $ | 113.8 |  |  | $ | 109.7 |  |  | $ | 211.4 |  |  | $ | 191.3 |
Advanced Alloys & Solutions | 87.5 |  |  | 74.1 |  |  | 159.3 |  |  | 157.8 |
Total segment EBITDA | 201.3 |  |  | 183.8 |  |  | 370.7 |  |  | 349.1 |
Corporate expenses | (19.4) |  |  | (17.7) |  |  | (36.5) |  |  | (34.6) |
Closed operations and other income (expense) | 0.7 |  |  | (1.9) |  |  | (0.6) |  |  | (3.2) |
Depreciation & amortization (a) | (37.9) |  |  | (35.9) |  |  | (73.9) |  |  | (71.0) |
Interest expense, net | (28.4) |  |  | (21.3) |  |  | (55.0) |  |  | (41.2) |
Restructuring and other charges | (5.4) |  |  | (9.2) |  |  | (8.5) |  |  | (10.4) |
Loss on asset sales and sales of businesses, net | — |  |  | (0.6) |  |  | — |  |  | (0.6) |
Income before income taxes | $ | 110.9 |  |  | $ | 97.2 |  |  | $ | 196.2 |  |  | $ | 188.1 |
a) The following is depreciation & amortization by each business segment:
| Quarter ended |  | Year-to-date period ended
| June 30, 2024 |  | July 2, 2023 |  | June 30, 2024 |  | July 2, 2023
High Performance Materials & Components | $ | 17.9 |  |  | $ | 17.9 |  |  | $ | 34.2 |  |  | $ | 35.3 |
Advanced Alloys & Solutions | 18.3 |  |  | 16.2 |  |  | 36.3 |  |  | 32.3 |
Other | 1.7 |  |  | 1.8 |  |  | 3.4 |  |  | 3.4 |
| $ | 37.9 |  |  | $ | 35.9 |  |  | $ | 73.9 |  |  | $ | 71.0 |
Beginning in 2020, the U.S. government enacted various relief packages in response to the COVID-19 pandemic, including refundable employee retention tax credits. The Company applied for these employee retention tax credits and deferred recognition of a portion of the tax credits pending the completion of any potential audit or examination, or the expiration of the related statute of limitations. During the quarter and year-to-date periods ended June 30, 2024, the Company recognized a benefit of $8.6 million in cost of sales on the consolidated statement of operations due to the expiration of the statute of limitations for a portion of these credits. The Company recognized $3.5 million of the benefit in the HPMC segment and $5.1 million in the AA&S segment. See Note 16 for further explanation. Closed operations and other income (expense) for the quarter and year-to-date period ended June 30, 2024 includes a $2.3 million gain on the sale of assets for the Company’s idled Houston, PA facility included within gain on asset sales and sales of businesses, net, on the consolidated statement of operations, for which $3.5 million of proceeds were received and reported as an investing activity on the consolidated statement of cash flows. Restructuring and other charges of $5.4 million for the quarter ended June 30, 2024 include $5.5 million of inventory write-downs related to the Company’s ongoing European restructuring and $1.8 million of start-up costs, both of which are included within cost of sales on the consolidated statements of operations. These charges were partially offset by credits of $1.9 million primarily for lowered severance-related reserves based on changes in planned operating rates and revised workforce reduction estimates (see Note 7). Restructuring and other charges of $8.5 million for the year-to-date period ended June 30, 2024 include $5.5 million of inventory write-downs related to the Company’s ongoing European restructuring and $4.7 million of start-up costs, both of which are included within cost of sales on the consolidated statements of operations. These charges were partially offset by credits of $1.7 million primarily for lowered severance-related reserves based on changes in planned operating rates and revised workforce reduction estimates (see Note 7). Restructuring and other charges of $9.2 million for the quarter ended July 2, 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 the 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 year-to-date period ended July 2, 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. Depreciation expense in the quarter and year-to-date period ended July 2, 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 quarter and year-to-date period ended July 2, 2023 is related to a $0.6 million loss on the sale of the Company’s Northbrook, IL operations.

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- Definition The entire disclosure for reporting segments including data and tables. 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