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Business Segments | 9 Months Ended
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Sep. 29, 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 net interest expense, income taxes, depreciation and amortization, goodwill impairment charges, debt extinguishment charges, corporate expenses, closed operations and other income (expense), restructuring and other credits/charges, strike related costs, long-lived asset impairments, pension remeasurement gains and losses, other postretirement/pension curtailment and settlement gains and losses, and gains or losses on 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
| September 29, 2024 |  | October 1, 2023 |  | September 29, 2024 |  | October 1, 2023
Total sales: |  |  |  |  |  |  |
High Performance Materials & Components | $ | 612.9 |  |  | $ | 578.1 |  |  | $ | 1,828.6 |  |  | $ | 1,670.5 |
Advanced Alloys & Solutions | 588.4 |  |  | 551.8 |  |  | 1,753.7 |  |  | 1,791.0 |
| 1,201.3 |  |  | 1,129.9 |  |  | 3,582.3 |  |  | 3,461.5 |
Intersegment sales: |  |  |  |  |  |  |
High Performance Materials & Components | 60.5 |  |  | 38.6 |  |  | 184.3 |  |  | 132.8 |
Advanced Alloys & Solutions | 89.6 |  |  | 65.7 |  |  | 208.6 |  |  | 219.0 |
| 150.1 |  |  | 104.3 |  |  | 392.9 |  |  | 351.8 |
Sales to external customers: |  |  |  |  |  |  |
High Performance Materials & Components | 552.4 |  |  | 539.5 |  |  | 1,644.3 |  |  | 1,537.7 |
Advanced Alloys & Solutions | 498.8 |  |  | 486.1 |  |  | 1,545.1 |  |  | 1,572.0 |
| $ | 1,051.2 |  |  | $ | 1,025.6 |  |  | $ | 3,189.4 |  |  | $ | 3,109.7 |
| Quarter ended |  | Year-to-date period ended
| September 29, 2024 |  | October 1, 2023 |  | September 29, 2024 |  | October 1, 2023
EBITDA: |  |  |  |  |  |  |
High Performance Materials & Components | $ | 123.2 |  |  | $ | 117.2 |  |  | $ | 334.6 |  |  | $ | 308.5 |
Advanced Alloys & Solutions | 73.6 |  |  | 61.5 |  |  | 232.9 |  |  | 219.3 |
Total segment EBITDA | 196.8 |  |  | 178.7 |  |  | 567.5 |  |  | 527.8 |
Corporate expenses | (13.4) |  |  | (12.5) |  |  | (49.9) |  |  | (47.1) |
Closed operations and other income (expense) | 2.3 |  |  | (3.6) |  |  | 1.7 |  |  | (6.8) |
Depreciation & amortization (a) | (38.5) |  |  | (35.6) |  |  | (112.4) |  |  | (106.6) |
Interest expense, net | (28.0) |  |  | (23.8) |  |  | (83.0) |  |  | (65.0) |
Restructuring and other charges | (4.3) |  |  | (4.2) |  |  | (12.8) |  |  | (14.6) |
Loss on asset sales and sales of businesses, net | — |  |  | — |  |  | — |  |  | (0.6) |
Income before income taxes | $ | 114.9 |  |  | $ | 99.0 |  |  | $ | 311.1 |  |  | $ | 287.1 |
a) The following is depreciation & amortization by each business segment:
| Quarter ended |  | Year-to-date period ended
| September 29, 2024 |  | October 1, 2023 |  | September 29, 2024 |  | October 1, 2023
High Performance Materials & Components | $ | 18.6 |  |  | $ | 16.5 |  |  | $ | 52.8 |  |  | $ | 51.8 |
Advanced Alloys & Solutions | 18.2 |  |  | 17.3 |  |  | 54.5 |  |  | 49.6 |
Other | 1.7 |  |  | 1.8 |  |  | 5.1 |  |  | 5.2 |
| $ | 38.5 |  |  | $ | 35.6 |  |  | $ | 112.4 |  |  | $ | 106.6 |
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 September 29, 2024, the Company recognized a benefit of $4.8 million and $13.4 million, respectively, 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. For the quarter ended September 29, 2024, the Company recognized $2.9 million of the benefit in the HPMC segment and $1.9 million in the AA&S segment. For the year-to-date periods ended September 29, 2024, the Company recognized $6.4 million of the benefit in the HPMC segment and $7.0 million in the AA&S segment. See Note 16 for further explanation. Closed operations and other income (expense) for the quarter ended September 29, 2024 includes a $3.7 million gain on the sale of certain oil and gas rights, included within other income, net, on the consolidated statement of operations, and favorable foreign currency transaction impacts as compared to the prior year period. Closed operations and other income (expense) for the year-to-date period ended September 29, 2024 also includes a $2.3 million gain on the sale of assets for the Company’s idled Houston, PA facility, which is included within gain on asset sales and sales of businesses, net, on the consolidated statement of operations. The Company received $3.5 million of proceeds from this sale that are reported as an investing activity on the consolidated statement of cash flows. Restructuring and other charges of $4.3 million for the quarter ended September 29, 2024 include $2.5 million of start-up costs, partially offset by a $0.4 million credit for adjustments to inventory reserves related to the Company’s ongoing European restructuring, both of which are included within cost of sales on the consolidated statements of operations. These charges also include $1.7 million of transaction costs, which are included within selling and administrative expenses on the consolidated statements of operations, and restructuring charges of $0.5 million (see Note 7). Restructuring and other charges of $12.8 million for the year-to-date period ended September 29, 2024 include $7.2 million of start-up costs and $5.1 million of inventory write-downs related to the Company’s ongoing European restructuring, both of which are included within cost of sales on the consolidated statements of operations. These charges also include $1.7 million of transaction costs, which are included within selling and administrative expenses on the consolidated statements of operations, and restructuring credits of $1.2 million primarily for revised workforce reduction estimates (see Note 7). Restructuring and other charges of $4.2 million for the quarter ended October 1, 2023 include $2.8 million of start-up costs and $1.9 million of costs associated with an unplanned outage at the Company’s Lockport, NY facility, both of which are included within cost of sales on the consolidated statements of operations. These charges were partially offset by a $0.5 million pre-tax credit for restructuring charges, primarily related to lowered severance-related reserves based on changes in planned operating rates and revised workforce reduction estimates (see Note 7). Restructuring and other charges of $14.6 million for the year-to-date period ended October 1, 2023 include $2.2 million of severance-related restructuring charges (see Note 7) as well as $8.5 million of start-up costs, $1.9 million of costs associated with an unplanned outage at the Company’s Lockport, NY facility, and $2.0 million primarily for asset write-offs for the closure of the Company’s Robinson, PA operations, all of which are included within cost of sales on the consolidated statements of operations.

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