Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Mar. 31, 2017 | Apr. 20, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | CARPENTER TECHNOLOGY CORP | |
Entity Central Index Key | 17,843 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 46,740,525 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 16.6 | $ 82 |
Accounts receivable, net | 267.2 | 253.6 |
Inventories | 718.3 | 628.7 |
Other current assets | 49.3 | 46.4 |
Total current assets | 1,051.4 | 1,010.7 |
Property, plant and equipment, net | 1,312.1 | 1,351.4 |
Goodwill | 270.9 | 244.8 |
Other intangibles, net | 58.2 | 63.2 |
Deferred income taxes | 7.5 | 8.2 |
Other assets | 122.3 | 116 |
Total assets | 2,822.4 | 2,794.3 |
Current liabilities: | ||
Short-term debt | 14.2 | 0 |
Accounts payable | 191.3 | 159.6 |
Accrued liabilities | 116.7 | 139.2 |
Total current liabilities | 322.2 | 298.8 |
Long-term debt | 604.1 | 611.3 |
Accrued pension liabilities | 402.9 | 509.3 |
Accrued postretirement benefits | 118.6 | 116.6 |
Deferred income taxes | 169.4 | 102.4 |
Other liabilities | 43.6 | 51 |
Total liabilities | 1,660.8 | 1,689.4 |
Contingencies and commitments | ||
STOCKHOLDERS’ EQUITY | ||
Common stock — authorized 100,000,000 shares; issued 55,349,304 shares at March 31, 2017 and 55,254,569 shares at June 30, 2016; outstanding 46,740,525 shares at March 31, 2017 and 46,600,125 shares at June 30, 2016 | 276.7 | 276.3 |
Capital in excess of par value | 283.6 | 273.5 |
Reinvested earnings | 1,304.8 | 1,308.9 |
Common stock in treasury (8,608,779 shares and 8,654,444 shares at March 31, 2017 and June 30, 2016, respectively), at cost | (342.1) | (343.9) |
Accumulated other comprehensive loss | (361.4) | (409.9) |
Total stockholders' equity | 1,161.6 | 1,104.9 |
Total liabilities and stockholders' equity | $ 2,822.4 | $ 2,794.3 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - shares | Mar. 31, 2017 | Jun. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 55,349,304 | 55,254,569 |
Common stock outstanding (in shares) | 46,740,525 | 46,600,125 |
Common stock in treasury (in shares) | 8,608,779 | 8,654,444 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Income Statement [Abstract] | ||||
Net sales | $ 473.6 | $ 456.3 | $ 1,289.9 | $ 1,355.7 |
Cost of sales | 390.5 | 386.3 | 1,098.3 | 1,150.8 |
Cost of sales - excess inventory write-down | 0 | 22.5 | 0 | 22.5 |
Gross profit | 83.1 | 47.5 | 191.6 | 182.4 |
Selling, general and administrative expenses | 47.3 | 41.7 | 139 | 129.5 |
Restructuring and asset impairment charges | 0 | 17.6 | 0 | 18 |
Goodwill impairment | 0 | 12.5 | 0 | 12.5 |
Operating income (loss) | 35.8 | (24.3) | 52.6 | 22.4 |
Interest expense | (7.7) | (7.2) | (22.5) | (20.8) |
Other income (expense), net | 1 | (1.5) | 2 | (3.4) |
Income (loss) before income taxes | 29.1 | (33) | 32.1 | (1.8) |
Income tax expense (benefit) | 8.4 | (9.1) | 10.6 | 1.8 |
Net income (loss) | $ 20.7 | $ (23.9) | $ 21.5 | $ (3.6) |
EARNINGS (LOSS) PER COMMON SHARE: | ||||
Basic (in dollars per share) | $ 0.44 | $ (0.51) | $ 0.45 | $ (0.08) |
Diluted (in dollars per share) | $ 0.44 | $ (0.51) | $ 0.45 | $ (0.08) |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||
Basic (in shares) | 47 | 47.1 | 47 | 48.5 |
Diluted (in shares) | 47.1 | 47.1 | 47.1 | 48.5 |
Cash dividends per common share (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.54 | $ 0.54 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 20.7 | $ (23.9) | $ 21.5 | $ (3.6) |
Other comprehensive income (loss), net of tax | ||||
Pension and postretirement benefits, net of tax of $(3.5), $(2.2), $(17.4) and $(6.8), respectively | 5.7 | 3.8 | 28.8 | 11.2 |
Net gain (loss) on derivative instruments, net of tax of $(4.3), $(3.4), $(13.2) and $3.3, respectively | 7.2 | 5.7 | 21.8 | (5.5) |
Foreign currency translation | 2.6 | 7.7 | (2.1) | 2.1 |
Other comprehensive income | 15.5 | 17.2 | 48.5 | 7.8 |
Comprehensive income (loss) | $ 36.2 | $ (6.7) | $ 70 | $ 4.2 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Pension and post-retirement benefits, tax | $ (3.5) | $ (2.2) | $ (17.4) | $ (6.8) |
Net loss on derivative instruments, tax | $ (4.3) | $ (3.4) | $ (13.2) | $ 3.3 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 21.5 | $ (3.6) |
Adjustments to reconcile net income (loss) to net cash provided from operating activities: | ||
Depreciation and amortization | 88.8 | 90 |
Goodwill impairment charge | 0 | 12.5 |
Non-cash excess inventory write-down | 0 | 22.5 |
Non-cash restructuring and asset impairment charges | 0 | 7.6 |
Deferred income taxes | 37.4 | (6.6) |
Net pension expense | 39.7 | 40.3 |
Payments from qualified pension plan associated with restructuring | 0 | 9.4 |
Share-based compensation expense | 10 | 6.8 |
Net loss on disposals of property and equipment | 2.2 | 0.2 |
Changes in working capital and other, net of acquisition: | ||
Accounts receivable | (15) | 32.6 |
Inventories | (89) | (18) |
Other current assets | 3.6 | (13) |
Accounts payable | 40.6 | (6.6) |
Accrued liabilities | 4.1 | (22.3) |
Pension plan contributions | (100) | 0 |
Other postretirement plan contributions | (2.4) | (9.5) |
Cash paid as collateral under derivative agreements | 0 | (8) |
Other, net | (6) | 2.9 |
Net cash provided from operating activities | 35.5 | 137.2 |
INVESTING ACTIVITIES | ||
Purchases of property, equipment and software | (63.1) | (66.1) |
Proceeds from disposals of property and equipment | 0 | 0.3 |
Acquisition of business | (35.3) | 0 |
Proceeds from the sale of equity method investment | 0 | 6.3 |
Proceeds from note receivable from the sale of equity method investment | 6.3 | 0 |
Other | 0 | 4 |
Net cash used for investing activities | (92.1) | (55.5) |
FINANCING ACTIVITIES | ||
Change in short-term debt | 14.2 | 25 |
Payments of debt issue costs | (1.4) | 0 |
Dividends paid | (25.6) | (26.3) |
Purchases of treasury stock | 0 | (123.9) |
Payments on seller financed debt related to purchase of software | 0 | (3.7) |
Tax benefits on share-based compensation | 0.4 | 0 |
Proceeds from stock options exercised | 2.2 | 0.3 |
Net cash used for financing activities | (10.2) | (128.6) |
Effect of exchange rate changes on cash and cash equivalents | 1.4 | 0.3 |
DECREASE IN CASH AND CASH EQUIVALENTS | (65.4) | (46.6) |
Cash and cash equivalents at beginning of period | 82 | 70 |
Cash and cash equivalents at end of period | 16.6 | 23.4 |
Non-cash investing activities: | ||
Acquisition of property, equipment and software | 5.8 | 7.3 |
Sale of equity method investment | $ 0 | $ 12.6 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Reinvested Earnings | Common Stock in Treasury | Accumulated Other Comprehensive (Loss) Income |
Balances, period start at Jun. 30, 2015 | $ 1,325.9 | $ 276.2 | $ 266.6 | $ 1,332.4 | $ (221.1) | $ (328.2) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (3.6) | (3.6) | ||||
Pension and postretirement benefits gain, net of tax | 11.2 | 11.2 | ||||
Net loss on derivative instruments, net of tax | (5.5) | (5.5) | ||||
Foreign currency translation | 2.1 | 2.1 | ||||
Cash Dividends: | ||||||
Common @ $0.54 per share | (26.3) | (26.3) | ||||
Purchase of treasury stock | (123.9) | (123.9) | ||||
Share-based compensation plans | 7 | 6.2 | 0.8 | |||
Stock options exercised | 0.3 | 0.3 | ||||
Tax windfall (shortfall) on share-based compensation | (0.2) | (0.2) | ||||
Balances, period end at Mar. 31, 2016 | 1,187 | 276.2 | 272.9 | 1,302.5 | (344.2) | (320.4) |
Balances, period start at Dec. 31, 2015 | (337.6) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | (23.9) | |||||
Pension and postretirement benefits gain, net of tax | 3.8 | |||||
Net loss on derivative instruments, net of tax | 5.7 | |||||
Foreign currency translation | 7.7 | |||||
Balances, period end at Mar. 31, 2016 | 1,187 | 276.2 | 272.9 | 1,302.5 | (344.2) | (320.4) |
Balances, period start at Jun. 30, 2016 | 1,104.9 | 276.3 | 273.5 | 1,308.9 | (343.9) | (409.9) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 21.5 | 21.5 | ||||
Pension and postretirement benefits gain, net of tax | 28.8 | 28.8 | ||||
Net loss on derivative instruments, net of tax | 21.8 | 21.8 | ||||
Foreign currency translation | (2.1) | (2.1) | ||||
Cash Dividends: | ||||||
Common @ $0.54 per share | (25.6) | (25.6) | ||||
Share-based compensation plans | 9.7 | 7.9 | 1.8 | |||
Stock options exercised | 2.2 | 0.4 | 1.8 | |||
Tax windfall (shortfall) on share-based compensation | 0.4 | 0.4 | ||||
Balances, period end at Mar. 31, 2017 | 1,161.6 | 276.7 | 283.6 | 1,304.8 | (342.1) | (361.4) |
Balances, period start at Dec. 31, 2016 | (376.9) | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income (loss) | 20.7 | |||||
Pension and postretirement benefits gain, net of tax | 5.7 | |||||
Net loss on derivative instruments, net of tax | 7.2 | |||||
Foreign currency translation | 2.6 | |||||
Balances, period end at Mar. 31, 2017 | $ 1,161.6 | $ 276.7 | $ 283.6 | $ 1,304.8 | $ (342.1) | $ (361.4) |
CONSOLIDATED STATEMENT OF CHAN9
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (Unaudited) - (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends per common share (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.54 | $ 0.54 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 | $ 5 | $ 5 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, considered necessary for a fair statement of the results are reflected in the interim periods presented. The June 30, 2016 consolidated balance sheet data was derived from audited financial statements, but does not include all of the disclosures required by U.S. generally accepted accounting principles. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in Carpenter’s annual report on Form 10-K for the fiscal year ended June 30, 2016 (the “2016 Form 10-K”). Operating results for the three and nine months ended March 31, 2017 are not necessarily indicative of the operating results for any future period. As used throughout this report, unless the context requires otherwise, the terms “Carpenter”, the “Company”, “Registrant”, “Issuer”, “we” and “our” refer to Carpenter Technology Corporation. |
Acquisition
Acquisition | 9 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On February 28, 2017, the Company acquired substantially all of the assets of Puris LLC (“Puris”), for a cash purchase price of $35.3 million . The acquisition provides the Company with immediate entry into the rapidly growing titanium powder market, an expanded presence in additive manufacturing and strengthens the Company’s capabilities as a solutions provider for customers across its end-use markets. As of March 31, 2017, the Company performed a preliminary purchase price allocation that resulted in an allocation of $7.5 million to property and equipment, $1.7 million to net working capital and $26.1 million to goodwill. The purchase price allocation was based on a preliminary valuation analysis due to the timing of the acquisition. The final purchase price allocation may change in future reporting periods upon finalization of the valuation analysis, which the Company expects to occur in the fourth quarter of fiscal year 2017. |
Restructuring and Asset Impairm
Restructuring and Asset Impairment Charges | 9 Months Ended |
Mar. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Asset Impairment Charges | Restructuring and Asset Impairment Charges Restructuring and asset impairment charges for the three and nine months ended March 31, 2016 were $17.6 million and $18.0 million , respectively. The restructuring and asset impairment charges consisted primarily of an early retirement incentive funded by the Company's qualified pension plan of $9.4 million and non-cash impairment charges on certain long-lived assets of $7.6 million due to the prolonged weakness in oil and gas drilling and exploration activities and the impact this weakness had on certain reporting units. |
Goodwill
Goodwill | 9 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The Company conducts annual goodwill impairment testing at least annually as of June 30, or more often if events, changes or circumstances indicate that the carrying amount may not be recoverable. During the third quarter of fiscal year 2016, the Company performed an interim impairment test due to weak market conditions, depressed customer orders and the Amega West Services (“Amega”) and Specialty Steel Supply (“SSS”) reporting units results lower than expectation. As a result of the goodwill impairment testing completed in the third quarter of fiscal year 2016, the Company determined that the goodwill associated with Amega and SSS was impaired and recorded an impairment charge of $12.5 million which represented the entire balance of the goodwill recorded for these reporting units. The changes in the carrying amount of goodwill by reportable segment for the nine months ended March 31, 2017 and fiscal year 2016 were as follows: ($ in millions) June 30, 2015 Impairment Losses Other June 30, 2016 Acquisition March 31, 2017 Goodwill $ 292.1 $ — $ (0.1 ) $ 292.0 $ 26.1 $ 318.1 Accumulated impairment losses (34.7 ) (12.5 ) — (47.2 ) — (47.2 ) Total goodwill $ 257.4 $ (12.5 ) $ (0.1 ) $ 244.8 $ 26.1 $ 270.9 Specialty Alloys Operations $ 195.5 $ — $ — $ 195.5 $ — $ 195.5 Performance Engineered Products 61.9 (12.5 ) (0.1 ) 49.3 26.1 75.4 Total goodwill $ 257.4 $ (12.5 ) $ (0.1 ) $ 244.8 $ 26.1 $ 270.9 The amounts included in “other” in the above table represent foreign exchange impacts on the amounts recorded in goodwill. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share The Company calculates basic and diluted earnings per share using the two class method. Under the two class method, earnings are allocated to common stock and participating securities (non-vested restricted shares and units that receive non-forfeitable dividends) according to their participation rights in dividends and undistributed earnings. The earnings available to each class of stock are divided by the weighted average number of outstanding shares for the period in each class. Diluted earnings per share assumes the issuance of common stock for all potentially dilutive share equivalents outstanding. For the three and nine months ended March 31, 2016, the Company incurred a net loss and, accordingly, excluded all potentially dilutive securities from the determination of diluted loss per share as their impact was anti-dilutive. The calculations of basic and diluted earnings per common share for the three and nine months ended March 31, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended (in millions, except per share data) 2017 2016 2017 2016 Net income (loss) $ 20.7 $ (23.9 ) $ 21.5 $ (3.6 ) Less: earnings and dividends allocated to participating securities (0.1 ) — (0.2 ) — Earnings (loss) available for common stockholders used in calculation of basic earnings per common share $ 20.6 $ (23.9 ) $ 21.3 $ (3.6 ) Weighted average number of common shares outstanding, basic 47.0 47.1 47.0 48.5 Basic earnings (loss) per common share $ 0.44 $ (0.51 ) $ 0.45 $ (0.08 ) Net income (loss) $ 20.7 $ (23.9 ) $ 21.5 $ (3.6 ) Less: earnings and dividends allocated to participating securities (0.1 ) — (0.2 ) — Earnings (loss) available for common stockholders used in calculation of diluted earnings per common share $ 20.6 $ (23.9 ) $ 21.3 $ (3.6 ) Weighted average number of common shares outstanding, basic 47.0 47.1 47.0 48.5 Effect of shares issuable under share-based compensation plans 0.1 — 0.1 — Weighted average number of common shares outstanding, diluted 47.1 47.1 47.1 48.5 Diluted earnings (loss) per common share $ 0.44 $ (0.51 ) $ 0.45 $ (0.08 ) The following awards issued under share-based compensation plans were excluded from the above calculations of diluted earnings per share because their effects were anti-dilutive: Three Months Ended Nine Months Ended (in millions) 2017 2016 2017 2016 Stock options 2.0 1.6 1.9 1.6 |
Inventories
Inventories | 9 Months Ended |
Mar. 31, 2017 | |
Inventory, Net [Abstract] | |
Inventories | Inventories Inventories consisted of the following components as of March 31, 2017 and June 30, 2016 : ($ in millions) March 31, June 30, Raw materials and supplies $ 157.5 $ 137.6 Work in process 374.0 298.9 Finished and purchased products 186.8 192.2 Total inventory $ 718.3 $ 628.7 Inventories are valued at the lower of cost or market. Cost for inventories is principally determined using the last-in, first-out (“LIFO”) inventory costing method. The Company also uses the first-in, first-out (“FIFO”) and average costs methods. As of March 31, 2017 and June 30, 2016, $126.1 million and $118.4 million of inventory, respectively, was accounted for using a method other than the LIFO inventory costing method. During the three months ended March 31, 2016, the Company recorded a $22.5 million excess inventory adjustment due to the prolonged weakness in the oil and gas businesses. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Mar. 31, 2017 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following as of March 31, 2017 and June 30, 2016 : ($ in millions) March 31, June 30, Accrued compensation and benefits $ 48.7 $ 41.8 Accrued postretirement benefits 13.8 13.8 Derivative financial instruments 11.7 31.6 Accrued interest expense 5.6 11.2 Other 36.9 40.8 Total accrued liabilities $ 116.7 $ 139.2 |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The components of the net periodic benefit cost related to the Company’s pension and other postretirement benefits for the three and nine months ended March 31, 2017 and 2016 were as follows: Three months ended March 31, Pension Plans Other Postretirement Plans ($ in millions) 2017 2016 2017 2016 Service cost $ 2.2 $ 7.8 $ 0.9 $ 0.8 Interest cost 12.4 14.4 2.3 2.5 Expected return on plan assets (16.6 ) (16.4 ) (1.7 ) (1.7 ) Amortization of net loss 9.5 6.8 0.8 0.7 Amortization of prior service cost (benefit) 0.5 0.1 (1.6 ) (1.6 ) Net periodic benefit costs $ 8.0 $ 12.7 $ 0.7 $ 0.7 Nine months ended March 31, Pension Plans Other Postretirement Plans ($ in millions) 2017 2016 2017 2016 Service cost $ 18.1 $ 23.4 $ 2.8 $ 2.5 Interest cost 37.8 43.2 6.9 7.7 Expected return on plan assets (48.4 ) (49.3 ) (5.1 ) (5.2 ) Amortization of net loss 28.3 20.5 2.4 2.0 Amortization of prior service cost (benefit) 1.3 0.3 (4.9 ) (4.8 ) Curtailment charge 0.5 — — — Net periodic benefit costs $ 37.6 $ 38.1 $ 2.1 $ 2.2 In September 2016, the Company announced changes to retirement plans it offers to certain employees. The Company has frozen benefits accrued to eligible participants of its largest qualified defined benefit pension plan and certain non-qualified benefit plans effective December 31, 2016. The Company recognized the plan freeze in the three months ended September 30, 2016 as a curtailment, since it eliminated the accrual of defined benefits for future services for a significant number of participants. The impact of the curtailment included a one-time accelerated recognition of outstanding unamortized prior service costs of $0.5 million , which was recognized in the three months ended September 30, 2016. The curtailment event triggered a re-measurement for the affected benefit plans as of August 31, 2016 using a weighted average discount rate of 3.57 percent . The re-measurement resulted in a reduction of accrued pension liabilities of $18.7 million . In October 2016, the Company made a voluntary pension contribution of $100.0 million to its largest qualified defined benefit pension plan. The Company currently expects to make no contributions to its qualified defined benefit pension plans during the remainder of fiscal year 2017. |
Debt
Debt | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt On March 31, 2017, the Company entered into a $400.0 million unsecured revolving credit facility (“Credit Agreement”) that extends to March 2022. The Credit Agreement replaced the Company's previous revolving credit facility, dated June 28, 2013, which had been set to expire in June 2018. During the three and nine months ended March 31, 2017, the Company capitalized $1.4 million of debt issuance costs paid in connection with the Credit Agreement. Interest on the borrowings under the Credit Agreement accrue at variable rates, based upon LIBOR or a defined “ Base Rate ,” both are determined based upon the rating of the Company’s senior unsecured long-term debt (the “Debt Rating”). The applicable margin to be added to LIBOR ranges from 1.00% to 1.75% ( 1.50% as of March 31, 2017 ), and for Base Rate-determined loans, from 0.00% to 0.75% ( 0.50% as of March 31, 2017 ). The Company also pays a quarterly commitment fee ranging from 0.125% to 0.400% ( 0.275% as of March 31, 2017 ), determined based upon the Debt Rating, of the unused portion of the $400.0 million commitment under the Credit Agreement. In addition, the Company must pay certain letter of credit fees, ranging from 1.00% to 1.75% ( 1.50% as of March 31, 2017 ), with respect to letters of credit issued under the Credit Agreement. The Company has the right to voluntarily prepay and re-borrow loans and to terminate or reduce the commitments under the facility. As of March 31, 2017 , the Company had $5.8 million of issued letters of credit and $14.2 million of short-term borrowings under the Credit Agreement with the balance of $380.0 million available to the Company. The Company is subject to certain financial and restrictive covenants under the Credit Agreement, which, among other things, require the maintenance of a minimum interest coverage ratio of 3.50 to 1.00. The interest coverage ratio is defined in the Credit Agreement as, for any period, the ratio of consolidated earnings before interest, taxes, depreciation and amortization and non-cash net pension expense (“EBITDA”) to consolidated interest expense for such period. The Credit Agreement also requires the Company to maintain a debt to capital ratio of less than 55 percent. The debt to capital ratio is defined in the Credit Agreement as the ratio of consolidated indebtedness, as defined therein, to consolidated capitalization, as defined therein. As of March 31, 2017 and June 30, 2016 , the Company was in compliance with all of the covenants of the Credit Agreement. Long-term debt outstanding as of March 31, 2017 and June 30, 2016 consisted of the following: ($ in millions) March 31, June 30, Medium-term notes, Series B at 6.97% to 7.10% due from April 2018 to May 2018 (face value of $55.0 million at March 31, 2017 and June 30, 2016) $ 55.0 $ 55.0 Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at March 31, 2017 and June 30, 2016) 250.4 257.8 Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at March 31, 2017 and June 30, 2016) 298.7 298.5 Total 604.1 611.3 Less: amounts due within one year — — Long-term debt, net of current portion $ 604.1 $ 611.3 For the three months ended March 31, 2017 and 2016 , interest costs totaled $8.0 million and $7.6 million , respectively, of which $0.3 million and $0.4 million , respectively, were capitalized as part of the cost of property, equipment and software. For the nine months ended March 31, 2017 and 2016 , interest costs totaled $23.4 million and $22.3 million , respectively, of which $0.9 million and $1.5 million , respectively, were capitalized as part of the cost of property, equipment and software. |
Contingencies and Commitments
Contingencies and Commitments | 9 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Commitments | Contingencies and Commitments Environmental The Company is subject to various federal, state, local and international environmental laws and regulations relating to pollution, protection of public health and the environment, natural resource damages and occupational safety and health. Although compliance with these laws and regulations may affect the costs of the Company’s operations, compliance costs to date have not been material. The Company has environmental remediation liabilities at some of its owned operating facilities and has been designated as a potentially responsible party (“PRP”) with respect to certain third party Superfund waste-disposal sites and other third party-owned sites. The Company accrues amounts for environmental remediation costs that represent management’s best estimate of the probable and reasonably estimable future costs related to environmental remediation. During the nine months ended March 31, 2017 , no additional accruals were recorded. The liabilities recorded for environmental remediation costs at Superfund sites, other third party-owned sites and Carpenter-owned current or former operating facilities remaining at March 31, 2017 and June 30, 2016 were $16.2 million and $16.2 million , respectively. Additionally, the Company has been notified that it may be a PRP with respect to other Superfund sites as to which no proceedings have been instituted against the Company. Neither the exact amount of remediation costs nor the final method of their allocation among all designated PRPs at these Superfund sites have been determined. Accordingly, at this time, the Company cannot reasonably estimate expected costs for such matters. The liability for future environmental remediation costs that can be reasonably estimated is evaluated by management on a quarterly basis. Other The Company is defending various routine claims and legal actions that are incidental to its business and common to its operations, including those pertaining to product claims, commercial disputes, patent infringement, employment actions, employee benefits, compliance with domestic and foreign laws, personal injury claims and tax issues. Like many other manufacturing companies in recent years, the Company, from time to time, has been named as a defendant in lawsuits alleging personal injury as a result of exposure to chemicals and substances in the workplace such as asbestos. The Company provides for costs relating to these matters when a loss is probable and the amount of the loss is reasonably estimable. The effect of the outcome of these matters on the Company’s future results of operations and liquidity cannot be predicted because any such effect depends on future results of operations and the amount and timing (both as to recording future charges to operations and cash expenditures) of the resolution of such matters. While it is not feasible to determine the outcome of these matters, management believes that the total liability from these matters will not have a material effect on the Company’s financial position, results of operations or cash flows over the long-term. However, there can be no assurance that an increase in the scope of pending matters or that any future lawsuits, claims, proceedings or investigations will not be material to the Company’s financial position, results of operations or cash flows in a particular future quarter or year. |
Share Repurchase Program
Share Repurchase Program | 9 Months Ended |
Mar. 31, 2017 | |
Equity [Abstract] | |
Share Repurchase Program | Share Repurchase Program In October 2014, the Company’s Board of Directors authorized a share repurchase program. The program authorized the purchase of up to $500.0 million of the Company’s outstanding common stock and expired in October 2016. The shares were repurchased from time to time at the Company's discretion based on capital needs of the business, general market conditions and the market price of the stock. During the nine months ended March 31, 2017 , the Company did not purchase shares of its common stock on the open market. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value hierarchy has three levels based on the inputs used to determine fair value. Level 1 refers to quoted prices in active markets for identical assets or liabilities. Level 2 refers to observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 refers to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Currently, the Company does not use Level 1 and 3 inputs. The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: March 31, 2017 Fair Value Measurements Using Input Type ($ in millions) Level 2 Assets: Marketable securities: Municipal auction rate securities $ 4.2 Derivative financial instruments 15.1 Total assets $ 19.3 Liabilities: Derivative financial instruments $ 14.7 June 30, 2016 Fair Value Measurements Using Input Type ($ in millions) Level 2 Assets: Marketable securities: Municipal auction rate securities $ 4.1 Derivative financial instruments 11.8 Total assets $ 15.9 Liabilities: Derivative financial instruments $ 43.9 The Company’s derivative financial instruments consist of commodity forward contracts, foreign currency forward contracts and interest rate swaps. These instruments are measured at fair value using the market method valuation technique. The inputs to this technique utilize information related to foreign exchange rates, commodity prices and interest rates published by third party leading financial news and data providers. This is observable data; however, the valuation of these instruments is not based on actual transactions for the same instruments and, as such, they are classified as Level 2. The Company’s use of derivatives and hedging policies are more fully discussed in Note 13 . The Company has currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with accounting principles generally accepted in the United States of America. The carrying amounts of other financial instruments not listed in the table below approximate fair value due to the short-term nature of these items. The carrying amounts and estimated fair values of the Company’s financial instruments not recorded at fair value in the financial statements were as follows: March 31, 2017 June 30, 2016 ($ in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt $ 604.1 $ 622.7 $ 611.3 $ 597.7 Company-owned life insurance $ 15.6 $ 15.6 $ 14.0 $ 14.0 The carrying amount of company-owned life insurance reflects cash surrender values based upon the market values of underlying securities, using Level 2 inputs, net of any outstanding policy loans. The carrying value associated with the cash surrender value of these policies is recorded in other assets in the accompanying consolidated balance sheets. The fair values of long-term debt as of March 31, 2017 and June 30, 2016 were determined by using current interest rates for debt with terms and maturities similar to the Company’s existing debt arrangements and accordingly would be classified as Level 2 inputs in the fair value hierarchy. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 9 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company uses commodity forwards, interest rate swaps, forward interest rate swaps and foreign currency forwards to manage risks generally associated with commodity price, interest rate and foreign currency rate fluctuations. The following explains the various types of derivatives and includes a recap about the impact the derivative instruments had on the Company’s financial position, results of operations and cash flows. Cash Flow Hedging — Commodity forward contracts: The Company enters into commodity forward contracts to fix the price of a portion of anticipated future purchases of certain critical raw materials and energy to manage the risk of cash flow variability associated with volatile commodity prices. The commodity forward contracts have been designated as cash flow hedges. The qualifying hedge contracts are marked-to-market at each reporting date and any unrealized gains or losses are included in accumulated other comprehensive income (loss) (“AOCI”) to the extent effective, and reclassified to cost of sales in the period during which the hedged transaction affects earnings or it becomes probable that the forecasted transaction will not occur. As of March 31, 2017 , the Company had forward contracts to purchase 25.5 million pounds of certain raw materials with settlement dates through December 2023. Cash Flow Hedging — Forward interest rate swaps: Historically, the Company has entered into forward interest rate swap contracts to manage the risk of cash flow variability associated with fixed interest debt expected to be issued. The forward interest rate swaps were designated as cash flow hedges. The qualifying hedge contracts were marked-to-market at each reporting date and any unrealized gains or losses were included in AOCI to the extent effective, and reclassified to interest expense in the period during which the hedged transaction affected earnings or it became probable that the forecasted transaction would not occur. Upon the issuance of the fixed rate debt, the forward interest rate swap contracts were terminated. The realized gains at the time the interest rate swap contracts were terminated are being amortized over the term of the underlying debt. For the three months ended March 31, 2017 and 2016 , net gains of $0.1 million and $0.1 million , respectively, related to the previously terminated contracts were recorded as a reduction to interest expense. For the nine months ended March 31, 2017 and 2016 , net gains of $0.3 million and $0.3 million , respectively, related to the previously terminated contracts were recorded as a reduction to interest expense. Cash Flow Hedging — Foreign currency forward contracts: The Company uses foreign currency forward contracts to hedge a portion of anticipated future sales denominated in foreign currencies, principally the Euro and Pound Sterling, in order to offset the effect of changes in exchange rates. The qualifying hedge contracts are marked-to-market at each reporting date and any unrealized gains or losses are included in AOCI to the extent effective, and reclassified to net sales in the period during which the transaction affects earnings or it becomes probable that the forecasted transaction will not occur. The Company also uses foreign currency forward contracts to protect certain short-term asset positions denominated in foreign currencies against the effect of changes in exchange rates. These positions do not qualify for hedge accounting and accordingly are marked-to-market at each reporting date through charges to other income and expense. As of March 31, 2017 and June 30, 2016 , the fair value of the outstanding foreign currency forwards not designated as hedging instruments and the charges to income for changes in fair value for these contracts were not material. Fair Value Hedging - Interest rate swaps: The Company uses interest rate swaps to achieve a level of floating rate debt relative to fixed rate debt where appropriate. The Company has designated fixed to floating interest rate swaps as fair value hedges. Accordingly, the changes in the fair value of these instruments are immediately recorded in earnings. The mark-to-market values of both the fair value hedging instruments and the underlying debt obligations are recorded as equal and offsetting gains and losses in interest expense in the consolidated statements of income. As of March 31, 2017 and June 30, 2016 , the total notional amount of floating interest rate contracts was $150.0 million . For the three months ended March 31, 2017 and 2016 , net gains of $0.4 million and $0.6 million , respectively, were recorded as a reduction to interest expense. For the nine months ended March 31, 2017 and 2016 , net gains of $1.3 million and $1.9 million , respectively, were recorded as a reduction to interest expense. The fair value and location of outstanding derivative contracts recorded in the accompanying consolidated balance sheets were as follows as of March 31, 2017 and June 30, 2016 : March 31, 2017 Interest Rate Swaps Foreign Currency Contracts Commodity Contracts Total Derivatives ($ in millions) Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 0.4 $ 0.3 $ 6.5 $ 7.2 Other assets 2.0 — 5.9 7.9 Total asset derivatives $ 2.4 $ 0.3 $ 12.4 $ 15.1 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ — $ 11.7 $ 11.7 Other liabilities — — 3.0 3.0 Total liability derivatives $ — $ — $ 14.7 $ 14.7 June 30, 2016 Interest Rate Swaps Foreign Currency Contracts Commodity Contracts Total Derivatives ($ in millions) Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 1.2 $ 0.3 $ 0.6 $ 2.1 Other assets 9.7 — — 9.7 Total asset derivatives $ 10.9 $ 0.3 $ 0.6 $ 11.8 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ 0.3 $ 31.3 $ 31.6 Other liabilities — — 12.3 12.3 Total liability derivatives $ — $ 0.3 $ 43.6 $ 43.9 Substantially all of the derivative contracts are subject to master netting arrangements, or similar agreements with each counterparty, which provide for the option to settle contracts on a net basis when they settle on the same day and in the same currency. In addition, these arrangements provide for a net settlement of all contracts with a given counterparty in the event that the arrangement is terminated due to the occurrence of default or a termination event. The Company presents the outstanding derivative contracts on a net basis by counterparty in the consolidated balance sheets. If the Company had chosen to present the derivative contracts on a gross basis, the total asset derivatives would have been $22.3 million and total liability derivatives would have been $21.9 million as of March 31, 2017 . According to the provisions of the Company’s derivative arrangements, in the event that the fair value of outstanding derivative positions with certain counterparties exceeds certain thresholds, the Company may be required to issue cash collateral to the counterparties. As of March 31, 2017 and June 30, 2016 , the Company had no cash collateral held by counterparties. The Company is exposed to credit loss in the event of nonperformance by counterparties on its derivative instruments as well as credit or performance risk with respect to its customer commitments to perform. Although nonperformance is possible, the Company does not anticipate nonperformance by any of the parties. In addition, various master netting arrangements are in place with counterparties to facilitate settlements of gains and losses on these contracts. Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings or it becomes probable the forecasted transactions will not occur. The following is a summary of the (losses) gains related to cash flow hedges recognized during the three and nine months ended March 31, 2017 and 2016 : Amount of (Loss) Gain Three Months Ended Nine Months Ended ($ in millions) 2017 2016 2017 2016 Derivatives in Cash Flow Hedging Relationship: Commodity contracts $ (5.7 ) $ (2.5 ) $ (21.1 ) $ (41.3 ) Foreign exchange contracts (0.2 ) (0.2 ) 0.5 0.4 Total $ (5.9 ) $ (2.7 ) $ (20.6 ) $ (40.9 ) ($ in millions) Location of (Loss) Gain Reclassified from AOCI into Income Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) Amount of Gain Three Months Ended Three Months Ended 2017 2016 2017 2016 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ (3.1 ) $ (12.0 ) $ 1.4 $ 0.5 Foreign exchange contracts Net sales 0.2 0.1 — — Forward interest rate swaps Interest expense 0.1 0.1 — — Total $ (2.8 ) $ (11.8 ) $ 1.4 $ 0.5 ($ in millions) Location of (Loss) Gain Amount of (Loss) Gain Amount of Gain Nine Months Ended Nine Months Ended 2017 2016 2017 2016 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ (21.0 ) $ (32.6 ) $ 2.0 $ 1.5 Foreign exchange contracts Net sales 0.7 0.2 — — Forward interest rate swaps Interest expense 0.3 0.3 — — Total $ (20.0 ) $ (32.1 ) $ 2.0 $ 1.5 The Company estimates that $5.3 million of net derivative losses included in AOCI as of March 31, 2017 will be reclassified into income within the next 12 months. No significant cash flow hedges were discontinued during the three and nine months ended March 31, 2017 . |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net consisted of the following: Three Months Ended Nine Months Ended ($ in millions) 2017 2016 2017 2016 Foreign exchange loss $ (0.9 ) $ — $ (1.0 ) $ (2.3 ) Unrealized gains (losses) on company-owned life insurance contracts and investments held in rabbi trusts 0.6 (1.3 ) 1.3 (1.8 ) Equity in earnings (losses) of unconsolidated subsidiaries — (0.2 ) — 0.6 Other 1.3 — 1.7 0.1 Total other income (expense), net $ 1.0 $ (1.5 ) $ 2.0 $ (3.4 ) |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on the current estimate of full year results, except that taxes related to specific events, if any, are recorded in the interim period in which they occur. Income tax expense for the three months ended March 31, 2017 was $8.4 million , or 28.9 percent of pre-tax income as compared with a benefit of $9.1 million , or 27.6 percent of pre-tax loss for the three months ended March 31, 2016 . Income tax expense for the nine months ended March 31, 2017 was $10.6 million or 33.0 percent of pre-tax income as compared with $1.8 million , or negative 100.0 percent of pre-tax loss for the nine months ended March 31, 2016 . Income tax benefit for the three months ended March 31, 2016 includes the impact of non-cash goodwill impairment charges, a portion of which is non-deductible for tax purposes, as well as a discrete tax charge of $0.8 million related to the sale of an equity method investment in India. In October 2016, the Company made a voluntary pension contribution of $100.0 million that was announced in connection with the plan freeze. As a result of the pension contribution, income tax expense in the nine months ended March 31, 2017 includes a discrete tax charge of $2.1 million due to reduced tax benefits for domestic manufacturing claimed in prior periods. Tax expense for the nine months ended March 31, 2016 includes net tax benefits of $0.8 million primarily for additional research and development credits as a result of the December 2015 enactment of the Protecting Americans from Tax Hikes Act of 2015 as well as a discrete tax charge of $2.8 million recorded as a result of the decision to sell an equity method investment in India. As of June 30, 2016, the Company had $106.5 million of indefinitely reinvested foreign earnings for which deferred income taxes have not been provided. Due to a change in foreign cash requirements, the Company has changed its intent with regard to the indefinite reinvestment of foreign earnings of one of its foreign subsidiaries. As a result of this change, the Company repatriated $11.5 million of foreign earnings during the nine months ended March 31, 2017 and recognized associated tax benefits of $0.9 million . The remaining balance, approximately $95.0 million , of undistributed foreign earnings continues to be indefinitely reinvested. |
Business Segments
Business Segments | 9 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company has two reportable segments, Specialty Alloys Operations (“SAO”) and Performance Engineered Products (“PEP”). The SAO segment is comprised of the Company’s major premium alloy and stainless steel manufacturing operations. This includes operations performed at mills primarily in Reading and Latrobe, Pennsylvania and surrounding areas as well as South Carolina and Alabama. The combined assets of the SAO operations are being managed in an integrated manner to optimize efficiency and profitability across the total system. The PEP segment is comprised of the Company’s differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Powder Products business, the Amega West business, the Specialty Steel Supply business, and the Latrobe and Mexico distribution businesses. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics. The Company’s executive management evaluates the performance of these operating segments based on sales, operating income and cash flow generation. Segment operating profit excludes general corporate costs, which include executive and director compensation, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that management considers not representative of ongoing operations, such as excess inventory write-downs, restructuring and asset impairment charges, goodwill impairment and other specifically-identified income or expense items. The service cost component of the Company’s net pension expense, which represents the estimated cost of future pension liabilities earned associated with active employees, is included in the operating income of the business segments. The residual net pension expense, which is comprised of the expected return on plan assets, interest costs on the projected benefit obligations of the plans and amortization of actuarial gains and losses and prior service costs, is included under the heading “Pension earnings, interest and deferrals”. On a consolidated basis, one customer, Precision Castparts Corporation, accounted for approximately 10 percent of the net sales for the three months ended March 31, 2017. On a consolidated basis, one customer, Arconic, Inc., accounted for approximately 12 percent of the net sales for nine months ended March 31, 2017. On a consolidated basis, one customer, Alcoa Inc., accounted for approximately 11 percent and 13 percent of the net sales for the three and nine months ended March 31, 2016, respectively. Approximately 10 percent of the accounts receivable outstanding at March 31, 2017 is due from one customer, Precision Castparts Corporation. Approximately 22 percent of the accounts receivable outstanding at June 30, 2016, respectively, was due from two customers, Alcoa Inc. and Precision Castparts Corporation. Segment Data Three Months Ended Nine Months Ended ($ in millions) 2017 2016 2017 2016 Net Sales: Specialty Alloys Operations $ 383.3 $ 370.5 $ 1,047.0 $ 1,106.7 Performance Engineered Products 98.7 91.4 260.4 268.3 Intersegment (8.4 ) (5.6 ) (17.5 ) (19.3 ) Consolidated net sales $ 473.6 $ 456.3 $ 1,289.9 $ 1,355.7 Segment Data Three Months Ended Nine Months Ended ($ in millions) 2017 2016 2017 2016 Operating Income (Loss): Specialty Alloys Operations $ 51.9 $ 45.6 $ 112.6 $ 128.3 Performance Engineered Products 4.7 (0.9 ) 2.7 (4.2 ) Corporate costs (including restructuring and impairment charges) (15.8 ) (64.5 ) (45.6 ) (89.3 ) Pension earnings, interest and deferrals (5.6 ) (4.8 ) (18.2 ) (14.4 ) Intersegment 0.6 0.3 1.1 2.0 Consolidated operating income (loss) $ 35.8 $ (24.3 ) $ 52.6 $ 22.4 Segment Data Three Months Ended Nine Months Ended ($ in millions) 2017 2016 2017 2016 Depreciation and Amortization: Specialty Alloys Operations $ 23.7 $ 23.4 $ 70.8 $ 70.9 Performance Engineered Products 5.2 5.5 15.5 17.0 Corporate 1.3 0.9 3.0 2.8 Intersegment (0.2 ) (0.2 ) (0.5 ) (0.7 ) Consolidated depreciation and amortization $ 30.0 $ 29.6 $ 88.8 $ 90.0 Segment Data Three Months Ended Nine Months Ended ($ in millions) 2017 2016 2017 2016 Capital Expenditures: Specialty Alloys Operations $ 8.6 $ 11.2 $ 31.6 $ 47.9 Performance Engineered Products 2.9 3.6 9.9 14.9 Corporate 6.6 1.9 21.8 3.5 Intersegment (0.1 ) (0.1 ) (0.2 ) (0.2 ) Consolidated capital expenditures $ 18.0 $ 16.6 $ 63.1 $ 66.1 Segment Data March 31, June 30, ($ in millions) Total Assets: Specialty Alloys Operations $ 2,261.1 $ 2,256.5 Performance Engineered Products 453.0 415.8 Corporate 123.2 151.3 Intersegment (14.9 ) (29.3 ) Consolidated total assets $ 2,822.4 $ 2,794.3 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance in ASU 2014-09 requires that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company is required to adopt this standard for its interim and annual periods beginning after December 15, 2017. Early adoption is permitted for interim and annual periods beginning after December 15, 2016. The Company is evaluating the impact of the adoption of ASU 2014-09 on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842). ASU 2016-02 improves transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. ASU 2016-02 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2016-02 on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-08 Revenue from Contracts with Customers (Topic 606) - Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU 2016-08 requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. ASU 2016-08 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2016-08 on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting, which outlines new provisions intended to simplify various aspects related to accounting for share-based payments and their presentation in the financial statements. ASU 2016-09 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2016, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2016-09 on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments, which outlines new provisions intended to reduce the existing diversity in practice related to accounting for the cash flow and its presentation in the financial statements. ASU 2016-15 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2016-15 on the consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory, which outlines updates to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. ASU 2016-16 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2016-16 on the consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash, which outlines that a statement of cash flows explains the change during the period in total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2016-18 on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment, which outlines updates to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2019, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2017-04 on the consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which outlines updates to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. ASU 2017-07 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2017-07 on the consolidated financial statements. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Reclassifications from Accumulated Other Comprehensive (Loss) Income | Reclassifications from Accumulated Other Comprehensive (Loss) Income The changes in AOCI by component, net of tax, for the three months ended March 31, 2017 and 2016 were as follows: Cash flow hedging items Pension and other postretirement benefit plan items Unrealized losses on available-for- sale securities Foreign currency items Total Balance at December 31, 2016 $ (7.2 ) $ (321.2 ) $ (0.3 ) $ (48.2 ) $ (376.9 ) Other comprehensive income before reclassifications 5.5 — — 2.6 8.1 Amounts reclassified from AOCI (b) 1.7 5.7 — — 7.4 Net other comprehensive income 7.2 5.7 — 2.6 15.5 Balance at March 31, 2017 $ — $ (315.5 ) $ (0.3 ) $ (45.6 ) $ (361.4 ) Cash flow hedging items Pension and other postretirement benefit plan items Unrealized losses on available-for- sale securities Foreign currency items Total Balance at December 31, 2015 $ (39.7 ) $ (249.4 ) $ (0.3 ) $ (48.2 ) $ (337.6 ) Other comprehensive (loss) income before reclassifications (1.7 ) — — 7.7 6.0 Amounts reclassified from AOCI (b) 7.4 3.8 — — 11.2 Net other comprehensive income 5.7 3.8 — 7.7 17.2 Balance at March 31, 2016 $ (34.0 ) $ (245.6 ) $ (0.3 ) $ (40.5 ) $ (320.4 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits. (b) See separate table below for further details. The changes in AOCI by component, net of tax, for the nine months ended March 31, 2017 and 2016 were as follows: Nine Months Ended March 31, 2017 Cash flow Pension and Unrealized Foreign currency items Total Balance at June 30, 2016 $ (21.8 ) $ (344.3 ) $ (0.3 ) $ (43.5 ) $ (409.9 ) Other comprehensive income (loss) before reclassifications 9.4 11.7 — (2.1 ) 19.0 Amounts reclassified from AOCI (b) 12.4 17.1 — — 29.5 Net other comprehensive income (loss) 21.8 28.8 — (2.1 ) 48.5 Balance at March 31, 2017 $ — $ (315.5 ) $ (0.3 ) $ (45.6 ) $ (361.4 ) Nine Months Ended March 31, 2016 Cash flow Pension and Unrealized Foreign currency items Total Balance at June 30, 2015 $ (28.5 ) $ (256.8 ) $ (0.3 ) $ (42.6 ) $ (328.2 ) Other comprehensive (loss) income before reclassifications (25.5 ) — — 2.1 (23.4 ) Amounts reclassified from AOCI (b) 20.0 11.2 — — 31.2 Net other comprehensive (loss) income (5.5 ) 11.2 — 2.1 7.8 Balance at March 31, 2016 $ (34.0 ) $ (245.6 ) $ (0.3 ) $ (40.5 ) $ (320.4 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits. (b) See separate table below for further details. The following is a summary of amounts reclassified from AOCI for the three and nine months ended March 31, 2017 and 2016 : ($ in millions) (a) Location of (loss) gain Amount Reclassified from AOCI Amount Reclassified from AOCI Nine Months Ended March 31, Details about AOCI Components 2017 2016 2017 2016 Cash flow hedging items: Commodity contracts Cost of sales $ (3.1 ) $ (12.0 ) $ (21.0 ) $ (32.6 ) Foreign exchange contracts Net sales 0.2 0.1 0.7 0.2 Forward interest rate swaps Interest expense 0.1 0.1 0.3 0.3 Total before tax (2.8 ) (11.8 ) (20.0 ) (32.1 ) Tax benefit 1.1 4.4 7.6 12.1 Net of tax $ (1.7 ) $ (7.4 ) $ (12.4 ) $ (20.0 ) ($ in millions) (a) Location of (loss) gain Amount Reclassified from AOCI Amount Reclassified from AOCI Nine Months Ended March 31, Details about AOCI Components 2017 2016 2017 2016 Amortization of pension and other postretirement benefit plan items: Net actuarial loss (b) $ (10.3 ) $ (7.5 ) $ (30.7 ) $ (22.5 ) Prior service cost (b) 1.1 1.5 3.6 4.5 Curtailment charge (b) — — (0.5 ) — Total before tax (9.2 ) (6.0 ) (27.6 ) (18.0 ) Tax benefit 3.5 2.2 10.5 6.8 Net of tax $ (5.7 ) $ (3.8 ) $ (17.1 ) $ (11.2 ) (a) Amounts in parentheses indicate debits to income/loss. (b) These AOCI components are included in the computation of net periodic benefit cost (see Note 8. Pension and Other Postretirement Benefits for additional details). |
Sale of Equity Method Investmen
Sale of Equity Method Investment | 9 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Sale of Equity Method Investment | Sale of Equity Method Investment In March 2016, the Company completed the sale of an equity method investment in India. Under the terms of the sale agreement, the sale price was $19.0 million , with $6.3 million paid at closing, and the remaining balance to be paid in annual equal installments on the first and second anniversary of the closing, respectively. In connection with the sale, during the three months ended March 31, 2016, the Company recorded a $0.3 million loss included in other income (expense). |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting of normal and recurring adjustments, considered necessary for a fair statement of the results are reflected in the interim periods presented. The June 30, 2016 consolidated balance sheet data was derived from audited financial statements, but does not include all of the disclosures required by U.S. generally accepted accounting principles. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in Carpenter’s annual report on Form 10-K for the fiscal year ended June 30, 2016 (the “2016 Form 10-K”). Operating results for the three and nine months ended March 31, 2017 are not necessarily indicative of the operating results for any future period. As used throughout this report, unless the context requires otherwise, the terms “Carpenter”, the “Company”, “Registrant”, “Issuer”, “we” and “our” refer to Carpenter Technology Corporation. |
Earnings per Common Share | The Company calculates basic and diluted earnings per share using the two class method. Under the two class method, earnings are allocated to common stock and participating securities (non-vested restricted shares and units that receive non-forfeitable dividends) according to their participation rights in dividends and undistributed earnings. The earnings available to each class of stock are divided by the weighted average number of outstanding shares for the period in each class. Diluted earnings per share assumes the issuance of common stock for all potentially dilutive share equivalents outstanding. For the three and nine months ended March 31, 2016, the Company incurred a net loss and, accordingly, excluded all potentially dilutive securities from the determination of diluted loss per share as their impact was anti-dilutive. |
Inventories | Inventories are valued at the lower of cost or market. Cost for inventories is principally determined using the last-in, first-out (“LIFO”) inventory costing method. The Company also uses the first-in, first-out (“FIFO”) and average costs methods. |
Regulatory Environmental Costs | The Company is subject to various federal, state, local and international environmental laws and regulations relating to pollution, protection of public health and the environment, natural resource damages and occupational safety and health. Although compliance with these laws and regulations may affect the costs of the Company’s operations, compliance costs to date have not been material. The Company has environmental remediation liabilities at some of its owned operating facilities and has been designated as a potentially responsible party (“PRP”) with respect to certain third party Superfund waste-disposal sites and other third party-owned sites. The Company accrues amounts for environmental remediation costs that represent management’s best estimate of the probable and reasonably estimable future costs related to environmental remediation. |
Contingencies and Commitments | The Company is defending various routine claims and legal actions that are incidental to its business and common to its operations, including those pertaining to product claims, commercial disputes, patent infringement, employment actions, employee benefits, compliance with domestic and foreign laws, personal injury claims and tax issues. Like many other manufacturing companies in recent years, the Company, from time to time, has been named as a defendant in lawsuits alleging personal injury as a result of exposure to chemicals and substances in the workplace such as asbestos. The Company provides for costs relating to these matters when a loss is probable and the amount of the loss is reasonably estimable. The effect of the outcome of these matters on the Company’s future results of operations and liquidity cannot be predicted because any such effect depends on future results of operations and the amount and timing (both as to recording future charges to operations and cash expenditures) of the resolution of such matters. While it is not feasible to determine the outcome of these matters, management believes that the total liability from these matters will not have a material effect on the Company’s financial position, results of operations or cash flows over the long-term. However, there can be no assurance that an increase in the scope of pending matters or that any future lawsuits, claims, proceedings or investigations will not be material to the Company’s financial position, results of operations or cash flows in a particular future quarter or year. |
Fair Value Measurements | The fair value hierarchy has three levels based on the inputs used to determine fair value. Level 1 refers to quoted prices in active markets for identical assets or liabilities. Level 2 refers to observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 refers to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. Currently, the Company does not use Level 1 and 3 inputs. |
Fair Value of Financial Instruments | The Company’s derivative financial instruments consist of commodity forward contracts, foreign currency forward contracts and interest rate swaps. These instruments are measured at fair value using the market method valuation technique. The inputs to this technique utilize information related to foreign exchange rates, commodity prices and interest rates published by third party leading financial news and data providers. This is observable data; however, the valuation of these instruments is not based on actual transactions for the same instruments and, as such, they are classified as Level 2. The Company’s use of derivatives and hedging policies are more fully discussed in Note 13 . The Company has currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with accounting principles generally accepted in the United States of America. |
Business Segments | The Company has two reportable segments, Specialty Alloys Operations (“SAO”) and Performance Engineered Products (“PEP”). The SAO segment is comprised of the Company’s major premium alloy and stainless steel manufacturing operations. This includes operations performed at mills primarily in Reading and Latrobe, Pennsylvania and surrounding areas as well as South Carolina and Alabama. The combined assets of the SAO operations are being managed in an integrated manner to optimize efficiency and profitability across the total system. The PEP segment is comprised of the Company’s differentiated operations. This segment includes the Dynamet titanium business, the Carpenter Powder Products business, the Amega West business, the Specialty Steel Supply business, and the Latrobe and Mexico distribution businesses. The businesses in the PEP segment are managed with an entrepreneurial structure to promote flexibility and agility to quickly respond to market dynamics. The Company’s executive management evaluates the performance of these operating segments based on sales, operating income and cash flow generation. Segment operating profit excludes general corporate costs, which include executive and director compensation, and other corporate facilities and administrative expenses not allocated to the segments. Also excluded are items that management considers not representative of ongoing operations, such as excess inventory write-downs, restructuring and asset impairment charges, goodwill impairment and other specifically-identified income or expense items. The service cost component of the Company’s net pension expense, which represents the estimated cost of future pension liabilities earned associated with active employees, is included in the operating income of the business segments. The residual net pension expense, which is comprised of the expected return on plan assets, interest costs on the projected benefit obligations of the plans and amortization of actuarial gains and losses and prior service costs, is included under the heading “Pension earnings, interest and deferrals”. |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606). The guidance in ASU 2014-09 requires that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company is required to adopt this standard for its interim and annual periods beginning after December 15, 2017. Early adoption is permitted for interim and annual periods beginning after December 15, 2016. The Company is evaluating the impact of the adoption of ASU 2014-09 on the consolidated financial statements. In February 2016, the FASB issued ASU 2016-02 Leases (Topic 842). ASU 2016-02 improves transparency and comparability among companies by recognizing lease assets and lease liabilities on the balance sheet and by disclosing key information about leasing arrangements. ASU 2016-02 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2016-02 on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-08 Revenue from Contracts with Customers (Topic 606) - Principal versus Agent Considerations (Reporting Revenue Gross versus Net). ASU 2016-08 requires an entity to determine whether the nature of its promise to provide goods or services to a customer is performed in a principal or agent capacity and to recognize revenue in a gross or net manner based on its principal/agent designation. ASU 2016-08 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2016-08 on the consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation — Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting, which outlines new provisions intended to simplify various aspects related to accounting for share-based payments and their presentation in the financial statements. ASU 2016-09 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2016, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2016-09 on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments, which outlines new provisions intended to reduce the existing diversity in practice related to accounting for the cash flow and its presentation in the financial statements. ASU 2016-15 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2016-15 on the consolidated financial statements. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) - Intra-Entity Transfers of Assets Other Than Inventory, which outlines updates to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. ASU 2016-16 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2016-16 on the consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash, which outlines that a statement of cash flows explains the change during the period in total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. ASU 2016-18 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2016-18 on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment, which outlines updates to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. ASU 2017-04 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2019, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2017-04 on the consolidated financial statements. In March 2017, the FASB issued ASU 2017-07, Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which outlines updates to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. ASU 2017-07 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2017, with early application permitted. The Company is evaluating the impact of the adoption of ASU 2017-07 on the consolidated financial statements. |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill by reportable segment for the nine months ended March 31, 2017 and fiscal year 2016 were as follows: ($ in millions) June 30, 2015 Impairment Losses Other June 30, 2016 Acquisition March 31, 2017 Goodwill $ 292.1 $ — $ (0.1 ) $ 292.0 $ 26.1 $ 318.1 Accumulated impairment losses (34.7 ) (12.5 ) — (47.2 ) — (47.2 ) Total goodwill $ 257.4 $ (12.5 ) $ (0.1 ) $ 244.8 $ 26.1 $ 270.9 Specialty Alloys Operations $ 195.5 $ — $ — $ 195.5 $ — $ 195.5 Performance Engineered Products 61.9 (12.5 ) (0.1 ) 49.3 26.1 75.4 Total goodwill $ 257.4 $ (12.5 ) $ (0.1 ) $ 244.8 $ 26.1 $ 270.9 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of calculations of basic and diluted earnings per common share | The calculations of basic and diluted earnings per common share for the three and nine months ended March 31, 2017 and 2016 were as follows: Three Months Ended Nine Months Ended (in millions, except per share data) 2017 2016 2017 2016 Net income (loss) $ 20.7 $ (23.9 ) $ 21.5 $ (3.6 ) Less: earnings and dividends allocated to participating securities (0.1 ) — (0.2 ) — Earnings (loss) available for common stockholders used in calculation of basic earnings per common share $ 20.6 $ (23.9 ) $ 21.3 $ (3.6 ) Weighted average number of common shares outstanding, basic 47.0 47.1 47.0 48.5 Basic earnings (loss) per common share $ 0.44 $ (0.51 ) $ 0.45 $ (0.08 ) Net income (loss) $ 20.7 $ (23.9 ) $ 21.5 $ (3.6 ) Less: earnings and dividends allocated to participating securities (0.1 ) — (0.2 ) — Earnings (loss) available for common stockholders used in calculation of diluted earnings per common share $ 20.6 $ (23.9 ) $ 21.3 $ (3.6 ) Weighted average number of common shares outstanding, basic 47.0 47.1 47.0 48.5 Effect of shares issuable under share-based compensation plans 0.1 — 0.1 — Weighted average number of common shares outstanding, diluted 47.1 47.1 47.1 48.5 Diluted earnings (loss) per common share $ 0.44 $ (0.51 ) $ 0.45 $ (0.08 ) |
Schedule of awards issued under share-based compensation plans excluded from the calculations of diluted earnings per share | The following awards issued under share-based compensation plans were excluded from the above calculations of diluted earnings per share because their effects were anti-dilutive: Three Months Ended Nine Months Ended (in millions) 2017 2016 2017 2016 Stock options 2.0 1.6 1.9 1.6 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Inventory, Net [Abstract] | |
Schedule of inventories | Inventories consisted of the following components as of March 31, 2017 and June 30, 2016 : ($ in millions) March 31, June 30, Raw materials and supplies $ 157.5 $ 137.6 Work in process 374.0 298.9 Finished and purchased products 186.8 192.2 Total inventory $ 718.3 $ 628.7 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following as of March 31, 2017 and June 30, 2016 : ($ in millions) March 31, June 30, Accrued compensation and benefits $ 48.7 $ 41.8 Accrued postretirement benefits 13.8 13.8 Derivative financial instruments 11.7 31.6 Accrued interest expense 5.6 11.2 Other 36.9 40.8 Total accrued liabilities $ 116.7 $ 139.2 |
Pension and Other Postretirem34
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of components of the net periodic benefit cost | The components of the net periodic benefit cost related to the Company’s pension and other postretirement benefits for the three and nine months ended March 31, 2017 and 2016 were as follows: Three months ended March 31, Pension Plans Other Postretirement Plans ($ in millions) 2017 2016 2017 2016 Service cost $ 2.2 $ 7.8 $ 0.9 $ 0.8 Interest cost 12.4 14.4 2.3 2.5 Expected return on plan assets (16.6 ) (16.4 ) (1.7 ) (1.7 ) Amortization of net loss 9.5 6.8 0.8 0.7 Amortization of prior service cost (benefit) 0.5 0.1 (1.6 ) (1.6 ) Net periodic benefit costs $ 8.0 $ 12.7 $ 0.7 $ 0.7 Nine months ended March 31, Pension Plans Other Postretirement Plans ($ in millions) 2017 2016 2017 2016 Service cost $ 18.1 $ 23.4 $ 2.8 $ 2.5 Interest cost 37.8 43.2 6.9 7.7 Expected return on plan assets (48.4 ) (49.3 ) (5.1 ) (5.2 ) Amortization of net loss 28.3 20.5 2.4 2.0 Amortization of prior service cost (benefit) 1.3 0.3 (4.9 ) (4.8 ) Curtailment charge 0.5 — — — Net periodic benefit costs $ 37.6 $ 38.1 $ 2.1 $ 2.2 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt outstanding | Long-term debt outstanding as of March 31, 2017 and June 30, 2016 consisted of the following: ($ in millions) March 31, June 30, Medium-term notes, Series B at 6.97% to 7.10% due from April 2018 to May 2018 (face value of $55.0 million at March 31, 2017 and June 30, 2016) $ 55.0 $ 55.0 Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at March 31, 2017 and June 30, 2016) 250.4 257.8 Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at March 31, 2017 and June 30, 2016) 298.7 298.5 Total 604.1 611.3 Less: amounts due within one year — — Long-term debt, net of current portion $ 604.1 $ 611.3 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities measured on a recurring basis | The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: March 31, 2017 Fair Value Measurements Using Input Type ($ in millions) Level 2 Assets: Marketable securities: Municipal auction rate securities $ 4.2 Derivative financial instruments 15.1 Total assets $ 19.3 Liabilities: Derivative financial instruments $ 14.7 June 30, 2016 Fair Value Measurements Using Input Type ($ in millions) Level 2 Assets: Marketable securities: Municipal auction rate securities $ 4.1 Derivative financial instruments 11.8 Total assets $ 15.9 Liabilities: Derivative financial instruments $ 43.9 |
Schedule of carrying amounts and estimated fair values of financial instruments not recorded at fair value in the financial statements | The carrying amounts and estimated fair values of the Company’s financial instruments not recorded at fair value in the financial statements were as follows: March 31, 2017 June 30, 2016 ($ in millions) Carrying Value Fair Value Carrying Value Fair Value Long-term debt $ 604.1 $ 622.7 $ 611.3 $ 597.7 Company-owned life insurance $ 15.6 $ 15.6 $ 14.0 $ 14.0 |
Derivatives and Hedging Activ37
Derivatives and Hedging Activities (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair value and location of outstanding derivative contracts recorded in consolidated balance sheets | The fair value and location of outstanding derivative contracts recorded in the accompanying consolidated balance sheets were as follows as of March 31, 2017 and June 30, 2016 : March 31, 2017 Interest Rate Swaps Foreign Currency Contracts Commodity Contracts Total Derivatives ($ in millions) Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 0.4 $ 0.3 $ 6.5 $ 7.2 Other assets 2.0 — 5.9 7.9 Total asset derivatives $ 2.4 $ 0.3 $ 12.4 $ 15.1 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ — $ 11.7 $ 11.7 Other liabilities — — 3.0 3.0 Total liability derivatives $ — $ — $ 14.7 $ 14.7 June 30, 2016 Interest Rate Swaps Foreign Currency Contracts Commodity Contracts Total Derivatives ($ in millions) Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 1.2 $ 0.3 $ 0.6 $ 2.1 Other assets 9.7 — — 9.7 Total asset derivatives $ 10.9 $ 0.3 $ 0.6 $ 11.8 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ 0.3 $ 31.3 $ 31.6 Other liabilities — — 12.3 12.3 Total liability derivatives $ — $ 0.3 $ 43.6 $ 43.9 |
Summary of the (losses) gains related to cash flow hedges | The following is a summary of the (losses) gains related to cash flow hedges recognized during the three and nine months ended March 31, 2017 and 2016 : Amount of (Loss) Gain Three Months Ended Nine Months Ended ($ in millions) 2017 2016 2017 2016 Derivatives in Cash Flow Hedging Relationship: Commodity contracts $ (5.7 ) $ (2.5 ) $ (21.1 ) $ (41.3 ) Foreign exchange contracts (0.2 ) (0.2 ) 0.5 0.4 Total $ (5.9 ) $ (2.7 ) $ (20.6 ) $ (40.9 ) ($ in millions) Location of (Loss) Gain Reclassified from AOCI into Income Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) Amount of Gain Three Months Ended Three Months Ended 2017 2016 2017 2016 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ (3.1 ) $ (12.0 ) $ 1.4 $ 0.5 Foreign exchange contracts Net sales 0.2 0.1 — — Forward interest rate swaps Interest expense 0.1 0.1 — — Total $ (2.8 ) $ (11.8 ) $ 1.4 $ 0.5 ($ in millions) Location of (Loss) Gain Amount of (Loss) Gain Amount of Gain Nine Months Ended Nine Months Ended 2017 2016 2017 2016 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ (21.0 ) $ (32.6 ) $ 2.0 $ 1.5 Foreign exchange contracts Net sales 0.7 0.2 — — Forward interest rate swaps Interest expense 0.3 0.3 — — Total $ (20.0 ) $ (32.1 ) $ 2.0 $ 1.5 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Schedule of other income, net | Other income (expense), net consisted of the following: Three Months Ended Nine Months Ended ($ in millions) 2017 2016 2017 2016 Foreign exchange loss $ (0.9 ) $ — $ (1.0 ) $ (2.3 ) Unrealized gains (losses) on company-owned life insurance contracts and investments held in rabbi trusts 0.6 (1.3 ) 1.3 (1.8 ) Equity in earnings (losses) of unconsolidated subsidiaries — (0.2 ) — 0.6 Other 1.3 — 1.7 0.1 Total other income (expense), net $ 1.0 $ (1.5 ) $ 2.0 $ (3.4 ) |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of results of operation, depreciation and amortization, capital expenditures and total assets by reportable segments | Segment Data Three Months Ended Nine Months Ended ($ in millions) 2017 2016 2017 2016 Net Sales: Specialty Alloys Operations $ 383.3 $ 370.5 $ 1,047.0 $ 1,106.7 Performance Engineered Products 98.7 91.4 260.4 268.3 Intersegment (8.4 ) (5.6 ) (17.5 ) (19.3 ) Consolidated net sales $ 473.6 $ 456.3 $ 1,289.9 $ 1,355.7 Segment Data Three Months Ended Nine Months Ended ($ in millions) 2017 2016 2017 2016 Operating Income (Loss): Specialty Alloys Operations $ 51.9 $ 45.6 $ 112.6 $ 128.3 Performance Engineered Products 4.7 (0.9 ) 2.7 (4.2 ) Corporate costs (including restructuring and impairment charges) (15.8 ) (64.5 ) (45.6 ) (89.3 ) Pension earnings, interest and deferrals (5.6 ) (4.8 ) (18.2 ) (14.4 ) Intersegment 0.6 0.3 1.1 2.0 Consolidated operating income (loss) $ 35.8 $ (24.3 ) $ 52.6 $ 22.4 Segment Data Three Months Ended Nine Months Ended ($ in millions) 2017 2016 2017 2016 Depreciation and Amortization: Specialty Alloys Operations $ 23.7 $ 23.4 $ 70.8 $ 70.9 Performance Engineered Products 5.2 5.5 15.5 17.0 Corporate 1.3 0.9 3.0 2.8 Intersegment (0.2 ) (0.2 ) (0.5 ) (0.7 ) Consolidated depreciation and amortization $ 30.0 $ 29.6 $ 88.8 $ 90.0 Segment Data Three Months Ended Nine Months Ended ($ in millions) 2017 2016 2017 2016 Capital Expenditures: Specialty Alloys Operations $ 8.6 $ 11.2 $ 31.6 $ 47.9 Performance Engineered Products 2.9 3.6 9.9 14.9 Corporate 6.6 1.9 21.8 3.5 Intersegment (0.1 ) (0.1 ) (0.2 ) (0.2 ) Consolidated capital expenditures $ 18.0 $ 16.6 $ 63.1 $ 66.1 Segment Data March 31, June 30, ($ in millions) Total Assets: Specialty Alloys Operations $ 2,261.1 $ 2,256.5 Performance Engineered Products 453.0 415.8 Corporate 123.2 151.3 Intersegment (14.9 ) (29.3 ) Consolidated total assets $ 2,822.4 $ 2,794.3 |
Reclassifications from Accumu40
Reclassifications from Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of changes in AOCI by component, net of tax | The changes in AOCI by component, net of tax, for the three months ended March 31, 2017 and 2016 were as follows: Cash flow hedging items Pension and other postretirement benefit plan items Unrealized losses on available-for- sale securities Foreign currency items Total Balance at December 31, 2016 $ (7.2 ) $ (321.2 ) $ (0.3 ) $ (48.2 ) $ (376.9 ) Other comprehensive income before reclassifications 5.5 — — 2.6 8.1 Amounts reclassified from AOCI (b) 1.7 5.7 — — 7.4 Net other comprehensive income 7.2 5.7 — 2.6 15.5 Balance at March 31, 2017 $ — $ (315.5 ) $ (0.3 ) $ (45.6 ) $ (361.4 ) Cash flow hedging items Pension and other postretirement benefit plan items Unrealized losses on available-for- sale securities Foreign currency items Total Balance at December 31, 2015 $ (39.7 ) $ (249.4 ) $ (0.3 ) $ (48.2 ) $ (337.6 ) Other comprehensive (loss) income before reclassifications (1.7 ) — — 7.7 6.0 Amounts reclassified from AOCI (b) 7.4 3.8 — — 11.2 Net other comprehensive income 5.7 3.8 — 7.7 17.2 Balance at March 31, 2016 $ (34.0 ) $ (245.6 ) $ (0.3 ) $ (40.5 ) $ (320.4 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits. (b) See separate table below for further details. The changes in AOCI by component, net of tax, for the nine months ended March 31, 2017 and 2016 were as follows: Nine Months Ended March 31, 2017 Cash flow Pension and Unrealized Foreign currency items Total Balance at June 30, 2016 $ (21.8 ) $ (344.3 ) $ (0.3 ) $ (43.5 ) $ (409.9 ) Other comprehensive income (loss) before reclassifications 9.4 11.7 — (2.1 ) 19.0 Amounts reclassified from AOCI (b) 12.4 17.1 — — 29.5 Net other comprehensive income (loss) 21.8 28.8 — (2.1 ) 48.5 Balance at March 31, 2017 $ — $ (315.5 ) $ (0.3 ) $ (45.6 ) $ (361.4 ) Nine Months Ended March 31, 2016 Cash flow Pension and Unrealized Foreign currency items Total Balance at June 30, 2015 $ (28.5 ) $ (256.8 ) $ (0.3 ) $ (42.6 ) $ (328.2 ) Other comprehensive (loss) income before reclassifications (25.5 ) — — 2.1 (23.4 ) Amounts reclassified from AOCI (b) 20.0 11.2 — — 31.2 Net other comprehensive (loss) income (5.5 ) 11.2 — 2.1 7.8 Balance at March 31, 2016 $ (34.0 ) $ (245.6 ) $ (0.3 ) $ (40.5 ) $ (320.4 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits. (b) See separate table below for further details. |
Schedule of amounts reclassified from AOCI | The following is a summary of amounts reclassified from AOCI for the three and nine months ended March 31, 2017 and 2016 : ($ in millions) (a) Location of (loss) gain Amount Reclassified from AOCI Amount Reclassified from AOCI Nine Months Ended March 31, Details about AOCI Components 2017 2016 2017 2016 Cash flow hedging items: Commodity contracts Cost of sales $ (3.1 ) $ (12.0 ) $ (21.0 ) $ (32.6 ) Foreign exchange contracts Net sales 0.2 0.1 0.7 0.2 Forward interest rate swaps Interest expense 0.1 0.1 0.3 0.3 Total before tax (2.8 ) (11.8 ) (20.0 ) (32.1 ) Tax benefit 1.1 4.4 7.6 12.1 Net of tax $ (1.7 ) $ (7.4 ) $ (12.4 ) $ (20.0 ) ($ in millions) (a) Location of (loss) gain Amount Reclassified from AOCI Amount Reclassified from AOCI Nine Months Ended March 31, Details about AOCI Components 2017 2016 2017 2016 Amortization of pension and other postretirement benefit plan items: Net actuarial loss (b) $ (10.3 ) $ (7.5 ) $ (30.7 ) $ (22.5 ) Prior service cost (b) 1.1 1.5 3.6 4.5 Curtailment charge (b) — — (0.5 ) — Total before tax (9.2 ) (6.0 ) (27.6 ) (18.0 ) Tax benefit 3.5 2.2 10.5 6.8 Net of tax $ (5.7 ) $ (3.8 ) $ (17.1 ) $ (11.2 ) (a) Amounts in parentheses indicate debits to income/loss. (b) These AOCI components are included in the computation of net periodic benefit cost (see Note 8. Pension and Other Postretirement Benefits for additional details). |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Millions | Feb. 28, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill acquired | $ 270.9 | $ 244.8 | $ 257.4 | |
Puris LLC | ||||
Business Acquisition [Line Items] | ||||
Asset purchase price | $ 35.3 | |||
Property, plant, and equipment acquired | 7.5 | |||
Working capital acquired | 1.7 | |||
Goodwill acquired | $ 26.1 |
Restructuring and Asset Impai42
Restructuring and Asset Impairment Charges - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and asset impairment charges | $ 0 | $ 17.6 | $ 0 | $ 18 |
Asset impairment charges | 7.6 | |||
Special Termination Benefits | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges and asset impairment charges | $ 9.4 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Goodwill [Line Items] | |||||
Goodwill impairment charge | $ 0 | $ 12.5 | $ 0 | $ 12.5 | $ 12.5 |
Amega West Services and Specialty Steel Supply | |||||
Goodwill [Line Items] | |||||
Goodwill impairment charge | $ 12.5 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill [Roll Forward] | ||||||
Goodwill, Beginning Balance | $ 318.1 | $ 318.1 | $ 292 | $ 292.1 | ||
Goodwill, Impairment Losses | 0 | |||||
Goodwill, Other | (0.1) | |||||
Goodwill, Acquired | 26.1 | |||||
Goodwill, Ending Balance | 318.1 | 318.1 | 292 | |||
Accumulated impairment losses, Beginning Balance | (47.2) | $ (34.7) | (34.7) | |||
Accumulated impairment losses, Impairment Losses | (12.5) | |||||
Accumulated impairment losses, Other | 0 | |||||
Accumulated impairment losses, Ending Balance | (47.2) | (47.2) | (47.2) | |||
Total goodwill, Beginning Balance | 244.8 | 257.4 | 257.4 | |||
Goodwill impairment | 0 | $ (12.5) | 0 | (12.5) | (12.5) | |
Other | (0.1) | |||||
Goodwill, Acquired | 26.1 | |||||
Total goodwill, Ending Balance | 270.9 | 270.9 | 244.8 | |||
Specialty Alloys Operations | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, Acquired | 0 | |||||
Total goodwill, Beginning Balance | 195.5 | 195.5 | 195.5 | |||
Goodwill impairment | 0 | |||||
Other | 0 | |||||
Goodwill, Acquired | 0 | |||||
Total goodwill, Ending Balance | 195.5 | 195.5 | 195.5 | |||
Performance Engineered Products | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, Acquired | 26.1 | |||||
Total goodwill, Beginning Balance | 49.3 | $ 61.9 | 61.9 | |||
Goodwill impairment | (12.5) | |||||
Other | (0.1) | |||||
Goodwill, Acquired | 26.1 | |||||
Total goodwill, Ending Balance | $ 75.4 | $ 75.4 | $ 49.3 |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of Calculations of Basic and Diluted Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) | $ 20.7 | $ (23.9) | $ 21.5 | $ (3.6) |
Less: earnings and dividends allocated to participating securities | (0.1) | 0 | (0.2) | 0 |
Earnings (loss) available for common stockholders used in calculation of basic earnings per common share | $ 20.6 | $ (23.9) | $ 21.3 | $ (3.6) |
Weighted average number of common shares outstanding, basic (in shares) | 47 | 47.1 | 47 | 48.5 |
Basic earnings per common share (in dollars per share) | $ 0.44 | $ (0.51) | $ 0.45 | $ (0.08) |
Earnings (loss) available for common stockholders used in calculation of diluted earnings per common share | $ 20.6 | $ (23.9) | $ 21.3 | $ (3.6) |
Effect of shares issuable under share-based compensation plans (in shares) | 0.1 | 0 | 0.1 | 0 |
Weighted average number of common shares outstanding, diluted (in shares) | 47.1 | 47.1 | 47.1 | 48.5 |
Diluted earnings per common share (in dollars per share) | $ 0.44 | $ (0.51) | $ 0.45 | $ (0.08) |
Earnings per Common Share - S46
Earnings per Common Share - Schedule of awards issued under share-based compensation plans excluded from the calculations of diluted earnings per share (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Stock options | ||||
Awards issued under share-based compensation plans that were excluded from calculations of diluted earnings per share because their effects were anti-dilutive | ||||
Awards excluded from computation of earnings per share (in shares) | 2 | 1.6 | 1.9 | 1.6 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Inventory, Net [Abstract] | ||
Raw materials and supplies | $ 157.5 | $ 137.6 |
Work in process | 374 | 298.9 |
Finished and purchased products | 186.8 | 192.2 |
Total inventory | $ 718.3 | $ 628.7 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Inventory, Net [Abstract] | |||||
Other than LIFO inventory | $ 126.1 | $ 126.1 | $ 118.4 | ||
Cost of sales - excess inventory write-down | $ 0 | $ 22.5 | $ 0 | $ 22.5 |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and benefits | $ 48.7 | $ 41.8 |
Accrued postretirement benefits | 13.8 | 13.8 |
Derivative financial instruments | 11.7 | 31.6 |
Accrued interest expense | 5.6 | 11.2 |
Other | 36.9 | 40.8 |
Total accrued liabilities | $ 116.7 | $ 139.2 |
Pension and Other Postretirem50
Pension and Other Postretirement Benefits - Schedule of Components of the Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Plans | |||||
Pension and Other Postretirement Benefit Disclosures | |||||
Service cost | $ 2.2 | $ 7.8 | $ 18.1 | $ 23.4 | |
Interest cost | 12.4 | 14.4 | 37.8 | 43.2 | |
Expected return on plan assets | (16.6) | (16.4) | (48.4) | (49.3) | |
Amortization of net loss | 9.5 | 6.8 | 28.3 | 20.5 | |
Amortization of prior service cost (benefit) | 0.5 | 0.1 | 1.3 | 0.3 | |
Curtailment charge | $ 0.5 | 0.5 | 0 | ||
Net periodic benefit costs | 8 | 12.7 | 37.6 | 38.1 | |
Other Postretirement Plans | |||||
Pension and Other Postretirement Benefit Disclosures | |||||
Service cost | 0.9 | 0.8 | 2.8 | 2.5 | |
Interest cost | 2.3 | 2.5 | 6.9 | 7.7 | |
Expected return on plan assets | (1.7) | (1.7) | (5.1) | (5.2) | |
Amortization of net loss | 0.8 | 0.7 | 2.4 | 2 | |
Amortization of prior service cost (benefit) | (1.6) | (1.6) | (4.9) | (4.8) | |
Curtailment charge | 0 | 0 | |||
Net periodic benefit costs | $ 0.7 | $ 0.7 | $ 2.1 | $ 2.2 |
Pension and Other Postretirem51
Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2016 | Jun. 30, 2017 | Sep. 30, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Aug. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Reduction in long-term pension liabilities | $ 18,700,000 | |||||
General Retirement Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Discretionary contribution | $ 100,000,000 | |||||
Pension Plans | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Curtailment charge | $ 500,000 | $ 500,000 | $ 0 | |||
Discount rate | 3.57% | |||||
Pension Plans | Forecast | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Contributions | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |||||
Short-term borrowings | $ 14,200,000 | $ 14,200,000 | $ 0 | ||
Interest costs | 8,000,000 | $ 7,600,000 | 23,400,000 | $ 22,300,000 | |
Interest costs, capitalized | 300,000 | $ 400,000 | 900,000 | $ 1,500,000 | |
Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | 400,000,000 | 400,000,000 | |||
Debt issuance costs | 1,400,000 | 1,400,000 | |||
Letters of credit issued | 5,800,000 | 5,800,000 | |||
Short-term borrowings | 14,200,000 | 14,200,000 | |||
Credit Agreement available for future borrowings | $ 380,000,000 | $ 380,000,000 | |||
Credit Agreement | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | ||||
Interest rate margin | 1.50% | ||||
Credit Agreement | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 1.00% | ||||
Credit Agreement | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 1.75% | ||||
Credit Agreement | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Description of Variable Rate Basis | Base Rate | ||||
Interest rate margin | 0.50% | ||||
Credit Agreement | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 0.00% | ||||
Credit Agreement | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Interest rate margin | 0.75% | ||||
Letters of credit | |||||
Debt Instrument [Line Items] | |||||
Commitment fee rate | 0.275% | ||||
Letter of credit fees | 1.50% | ||||
Required interest coverage ratio | 3.50 | ||||
Letters of credit | Minimum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee rate | 0.125% | ||||
Letter of credit fees | 1.00% | ||||
Letters of credit | Maximum | |||||
Debt Instrument [Line Items] | |||||
Commitment fee rate | 0.40% | ||||
Letter of credit fees | 1.75% | ||||
Required debt to capital ratio (less than 55%) | 0.55 | 0.55 |
Debt - Schedule of long-term de
Debt - Schedule of long-term debt outstanding (Details) - USD ($) | Mar. 31, 2017 | Jun. 30, 2016 |
Debt Instrument [Line Items] | ||
Total | $ 604,100,000 | $ 611,300,000 |
Less: amounts due within one year | 0 | 0 |
Long-term debt, net of current portion | 604,100,000 | 611,300,000 |
Medium-term notes, Series B 6.97% to 7.10% due April 2018 To May 2018 | ||
Debt Instrument [Line Items] | ||
Face amount | 55,000,000 | 55,000,000 |
Total | $ 55,000,000 | $ 55,000,000 |
Medium-term notes, Series B 6.97% to 7.10% due April 2018 To May 2018 | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.97% | 6.97% |
Medium-term notes, Series B 6.97% to 7.10% due April 2018 To May 2018 | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.10% | 7.10% |
Senior unsecured notes, 5.20% due July 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.20% | 5.20% |
Face amount | $ 250,000,000 | $ 250,000,000 |
Total | $ 250,400,000 | $ 257,800,000 |
4.45% Senior Unsecured Notes due 2023 | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.45% | 4.45% |
Face amount | $ 300,000,000 | $ 300,000,000 |
Total | $ 298,700,000 | $ 298,500,000 |
Contingencies and Commitments (
Contingencies and Commitments (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Accrual for environmental loss contingencies | $ 0 | |
Environmental remediation liability | $ 16,200,000 | $ 16,200,000 |
Share Repurchase Program (Detai
Share Repurchase Program (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2017 | Oct. 31, 2014 | |
Equity [Abstract] | ||
Authorized amount (up to) | $ 500,000,000 | |
Shares purchased (in shares) | 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of fair value of assets and liabilities measured on a recurring basis (Details) - Measured on a recurring basis - Level 2 - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Assets and liabilities measured at fair value on a recurring basis | ||
Derivative financial instruments | $ 15.1 | $ 11.8 |
Total assets | 19.3 | 15.9 |
Derivative financial instruments, liabilities | 14.7 | 43.9 |
Municipal auction rate securities | ||
Assets and liabilities measured at fair value on a recurring basis | ||
Marketable securities: | $ 4.2 | $ 4.1 |
Fair Value Measurements - Sch57
Fair Value Measurements - Schedule of carrying amounts and estimated fair values of financial instruments not recorded at fair value in the financial statements (Details) - Level 2 - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Carrying Value | ||
Carrying amounts and estimated fair values of financial instruments not recorded at fair value | ||
Long-term debt | $ 604.1 | $ 611.3 |
Company-owned life insurance | 15.6 | 14 |
Fair Value | ||
Carrying amounts and estimated fair values of financial instruments not recorded at fair value | ||
Long-term debt | 622.7 | 597.7 |
Company-owned life insurance | $ 15.6 | $ 14 |
Derivatives and Hedging Activ58
Derivatives and Hedging Activities - Narrative (Details) lb in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017USD ($)lb | Mar. 31, 2016USD ($) | Mar. 31, 2017USD ($)lb | Mar. 31, 2016USD ($) | Jun. 30, 2016USD ($) | |
Fair value of derivatives | |||||
Total asset derivatives on a gross basis | $ 22,300,000 | $ 22,300,000 | |||
Total liability derivatives on a gross basis | 21,900,000 | 21,900,000 | |||
Cash collateral held by counterparties | $ 0 | 0 | $ 0 | ||
Net derivative losses included in AOCI expected to be reclassified into earnings | $ 5,300,000 | ||||
Cash flow hedges | Commodity contracts | |||||
Fair value of derivatives | |||||
Amounts of raw materials to be purchased from forward contracts (in pounds) | lb | 25.5 | 25.5 | |||
Cash flow hedges | Interest Rate Swaps | |||||
Fair value of derivatives | |||||
Net gains recorded as a reduction to interest expense | $ 100,000 | $ 100,000 | $ 300,000 | $ 300,000 | |
Fair value hedging | Interest Rate Swaps | |||||
Fair value of derivatives | |||||
Net gains recorded as a reduction to interest expense | 400,000 | $ 600,000 | 1,300,000 | $ 1,900,000 | |
Total notional amounts of interest rate contracts | $ 150,000,000 | $ 150,000,000 | $ 150,000,000 |
Derivatives and Hedging Activ59
Derivatives and Hedging Activities - Schedule of fair value and location of outstanding derivative contracts recorded in consolidated balance sheets (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Jun. 30, 2016 |
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Asset | $ 15.1 | $ 11.8 |
Derivatives designated as hedging instruments, Liability | 14.7 | 43.9 |
Other current assets | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Asset | 7.2 | 2.1 |
Other assets | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Asset | 7.9 | 9.7 |
Accrued liabilities | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Liability | 11.7 | 31.6 |
Other liabilities | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Liability | 3 | 12.3 |
Interest Rate Swaps | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Asset | 2.4 | 10.9 |
Derivatives designated as hedging instruments, Liability | 0 | 0 |
Interest Rate Swaps | Other current assets | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Asset | 0.4 | 1.2 |
Interest Rate Swaps | Other assets | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Asset | 2 | 9.7 |
Interest Rate Swaps | Accrued liabilities | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Liability | 0 | 0 |
Interest Rate Swaps | Other liabilities | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Liability | 0 | 0 |
Foreign exchange contracts | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Asset | 0.3 | 0.3 |
Derivatives designated as hedging instruments, Liability | 0 | 0.3 |
Foreign exchange contracts | Other current assets | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Asset | 0.3 | 0.3 |
Foreign exchange contracts | Other assets | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Asset | 0 | 0 |
Foreign exchange contracts | Accrued liabilities | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Liability | 0 | 0.3 |
Foreign exchange contracts | Other liabilities | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Liability | 0 | 0 |
Commodity contracts | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Asset | 12.4 | 0.6 |
Derivatives designated as hedging instruments, Liability | 14.7 | 43.6 |
Commodity contracts | Other current assets | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Asset | 6.5 | 0.6 |
Commodity contracts | Other assets | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Asset | 5.9 | 0 |
Commodity contracts | Accrued liabilities | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Liability | 11.7 | 31.3 |
Commodity contracts | Other liabilities | ||
Fair value of derivatives | ||
Derivatives designated as hedging instruments, Liability | $ 3 | $ 12.3 |
Derivatives and Hedging Activ60
Derivatives and Hedging Activities - Summary of the (losses) gains related to cash flow hedges (Details) - Cash flow hedges - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
(Losses) gains related to cash flow hedges | ||||
Amount of (Loss) Gain Recognized in AOCI on Derivatives (Effective Portion) | $ (5.9) | $ (2.7) | $ (20.6) | $ (40.9) |
Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) | (2.8) | (11.8) | (20) | (32.1) |
Amount of Gain Reclassified from AOCI into Income (Ineffective Portion) | 1.4 | 0.5 | 2 | 1.5 |
Commodity contracts | ||||
(Losses) gains related to cash flow hedges | ||||
Amount of (Loss) Gain Recognized in AOCI on Derivatives (Effective Portion) | (5.7) | (2.5) | (21.1) | (41.3) |
Commodity contracts | Cost of sales | ||||
(Losses) gains related to cash flow hedges | ||||
Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) | (3.1) | (12) | (21) | (32.6) |
Amount of Gain Reclassified from AOCI into Income (Ineffective Portion) | 1.4 | 0.5 | 2 | 1.5 |
Foreign exchange contracts | ||||
(Losses) gains related to cash flow hedges | ||||
Amount of (Loss) Gain Recognized in AOCI on Derivatives (Effective Portion) | (0.2) | (0.2) | 0.5 | 0.4 |
Foreign exchange contracts | Net sales | ||||
(Losses) gains related to cash flow hedges | ||||
Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) | 0.2 | 0.1 | 0.7 | 0.2 |
Amount of Gain Reclassified from AOCI into Income (Ineffective Portion) | 0 | 0 | 0 | 0 |
Forward interest rate swaps | Interest expense | ||||
(Losses) gains related to cash flow hedges | ||||
Amount of (Loss) Gain Reclassified from AOCI into Income (Effective Portion) | 0.1 | 0.1 | 0.3 | 0.3 |
Amount of Gain Reclassified from AOCI into Income (Ineffective Portion) | $ 0 | $ 0 | $ 0 | $ 0 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | ||||
Foreign exchange loss | $ (0.9) | $ 0 | $ (1) | $ (2.3) |
Unrealized gains (losses) on company-owned life insurance contracts and investments held in rabbi trusts | 0.6 | (1.3) | 1.3 | (1.8) |
Equity in earnings (losses) of unconsolidated subsidiaries | 0 | (0.2) | 0 | 0.6 |
Other | 1.3 | 0 | 1.7 | 0.1 |
Total other income (expense), net | $ 1 | $ (1.5) | $ 2 | $ (3.4) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Tax benefit | $ (8.4) | $ 9.1 | $ (10.6) | $ (1.8) | ||
Income tax expense as a percent of pre-tax income (loss) | 28.90% | 27.60% | 33.00% | (100.00%) | ||
Income tax benefit associated with repatriation of foreign subsidiaries | $ 0.8 | $ 0.9 | ||||
Discrete tax tax charge | 2.1 | $ 2.8 | ||||
Net tax benefit associated with research and development | $ 0.8 | |||||
Indefinitely reinvested foreign earnings | $ 95 | 95 | $ 106.5 | |||
Foreign earnings repatriated | $ 11.5 | |||||
General Retirement Plan | ||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||
Discretionary contribution | $ 100 |
Business Segments - Narrative (
Business Segments - Narrative (Details) - segment | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Concentration Risk [Line Items] | |||||
Number of reportable segments | 2 | ||||
Customer Concentration Risk | Net Sales | Precision Castparts Corporation | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 10.00% | ||||
Customer Concentration Risk | Net Sales | Alcoa | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 11.00% | 13.00% | |||
Customer Concentration Risk | Net Sales | Arconic | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 12.00% | ||||
Customer Concentration Risk | Accounts Receivable | Precision Castparts Corporation | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 10.00% | ||||
Customer Concentration Risk | Accounts Receivable | Alcoa, Inc. and Precision Castparts Corporation | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 22.00% |
Business Segments - Schedule of
Business Segments - Schedule of results of operation, depreciation and amortization, capital expenditures and total assets by reportable segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2016 | |
Net Sales: | |||||
Net Sales: | $ 473.6 | $ 456.3 | $ 1,289.9 | $ 1,355.7 | |
Operating Income (Loss): | |||||
Operating Income (Loss): | 35.8 | (24.3) | 52.6 | 22.4 | |
Depreciation and Amortization: | |||||
Depreciation and Amortization: | 30 | 29.6 | 88.8 | 90 | |
Capital Expenditures: | |||||
Capital Expenditures: | 18 | 16.6 | 63.1 | 66.1 | |
Total Assets: | |||||
Total Assets: | 2,822.4 | 2,822.4 | $ 2,794.3 | ||
Corporate | |||||
Operating Income (Loss): | |||||
Operating Income (Loss): | (15.8) | (64.5) | (45.6) | (89.3) | |
Depreciation and Amortization: | |||||
Depreciation and Amortization: | 1.3 | 0.9 | 3 | 2.8 | |
Capital Expenditures: | |||||
Capital Expenditures: | 6.6 | 1.9 | 21.8 | 3.5 | |
Total Assets: | |||||
Total Assets: | 123.2 | 123.2 | 151.3 | ||
Segment Reconciling Items | |||||
Operating Income (Loss): | |||||
Pension earnings, interest and deferrals | (5.6) | (4.8) | (18.2) | (14.4) | |
Intersegment | |||||
Net Sales: | |||||
Net Sales: | (8.4) | (5.6) | (17.5) | (19.3) | |
Operating Income (Loss): | |||||
Operating Income (Loss): | 0.6 | 0.3 | 1.1 | 2 | |
Depreciation and Amortization: | |||||
Depreciation and Amortization: | (0.2) | (0.2) | (0.5) | (0.7) | |
Capital Expenditures: | |||||
Capital Expenditures: | (0.1) | (0.1) | (0.2) | (0.2) | |
Total Assets: | |||||
Total Assets: | (14.9) | (14.9) | (29.3) | ||
Specialty Alloys Operations | Operating | |||||
Net Sales: | |||||
Net Sales: | 383.3 | 370.5 | 1,047 | 1,106.7 | |
Operating Income (Loss): | |||||
Operating Income (Loss): | 51.9 | 45.6 | 112.6 | 128.3 | |
Depreciation and Amortization: | |||||
Depreciation and Amortization: | 23.7 | 23.4 | 70.8 | 70.9 | |
Capital Expenditures: | |||||
Capital Expenditures: | 8.6 | 11.2 | 31.6 | 47.9 | |
Total Assets: | |||||
Total Assets: | 2,261.1 | 2,261.1 | 2,256.5 | ||
Performance Engineered Products | Operating | |||||
Net Sales: | |||||
Net Sales: | 98.7 | 91.4 | 260.4 | 268.3 | |
Operating Income (Loss): | |||||
Operating Income (Loss): | 4.7 | (0.9) | 2.7 | (4.2) | |
Depreciation and Amortization: | |||||
Depreciation and Amortization: | 5.2 | 5.5 | 15.5 | 17 | |
Capital Expenditures: | |||||
Capital Expenditures: | 2.9 | $ 3.6 | 9.9 | $ 14.9 | |
Total Assets: | |||||
Total Assets: | $ 453 | $ 453 | $ 415.8 |
Reclassifications from Accumu65
Reclassifications from Accumulated Other Comprehensive (Loss) Income - Schedule of changes in AOCI by component, net of tax (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Changes in the balance of Accumulated Other Comprehensive Income | ||||
Balances, period start | $ 1,104.9 | $ 1,325.9 | ||
Balances, period end | $ 1,161.6 | $ 1,187 | 1,161.6 | 1,187 |
Cash flow hedging items | ||||
Changes in the balance of Accumulated Other Comprehensive Income | ||||
Balances, period start | (7.2) | (39.7) | (21.8) | (28.5) |
Other comprehensive income (loss) before reclassifications | 5.5 | (1.7) | 9.4 | (25.5) |
Amounts reclassified from AOCI | 1.7 | 7.4 | 12.4 | 20 |
Net other comprehensive income | 7.2 | 5.7 | 21.8 | (5.5) |
Balances, period end | 0 | (34) | 0 | (34) |
Pension and other postretirement benefit plan items | ||||
Changes in the balance of Accumulated Other Comprehensive Income | ||||
Balances, period start | (321.2) | (249.4) | (344.3) | (256.8) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 11.7 | 0 |
Amounts reclassified from AOCI | 5.7 | 3.8 | 17.1 | 11.2 |
Net other comprehensive income | 5.7 | 3.8 | 28.8 | 11.2 |
Balances, period end | (315.5) | (245.6) | (315.5) | (245.6) |
Unrealized losses on available-for- sale securities | ||||
Changes in the balance of Accumulated Other Comprehensive Income | ||||
Balances, period start | (0.3) | (0.3) | (0.3) | (0.3) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Net other comprehensive income | 0 | 0 | 0 | 0 |
Balances, period end | (0.3) | (0.3) | (0.3) | (0.3) |
Foreign currency items | ||||
Changes in the balance of Accumulated Other Comprehensive Income | ||||
Balances, period start | (48.2) | (48.2) | (43.5) | (42.6) |
Other comprehensive income (loss) before reclassifications | 2.6 | 7.7 | (2.1) | 2.1 |
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 |
Net other comprehensive income | 2.6 | 7.7 | (2.1) | 2.1 |
Balances, period end | (45.6) | (40.5) | (45.6) | (40.5) |
Accumulated Other Comprehensive (Loss) Income | ||||
Changes in the balance of Accumulated Other Comprehensive Income | ||||
Balances, period start | (376.9) | (337.6) | (409.9) | (328.2) |
Other comprehensive income (loss) before reclassifications | 8.1 | 6 | 19 | (23.4) |
Amounts reclassified from AOCI | 7.4 | 11.2 | 29.5 | 31.2 |
Net other comprehensive income | 15.5 | 17.2 | 48.5 | 7.8 |
Balances, period end | $ (361.4) | $ (320.4) | $ (361.4) | $ (320.4) |
Reclassifications from Accumu66
Reclassifications from Accumulated Other Comprehensive (Loss) Income - Schedule of amounts reclassified from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Amount reclassified from AOCI | ||||
Cost of sales | $ 390.5 | $ 386.3 | $ 1,098.3 | $ 1,150.8 |
Net sales | 473.6 | 456.3 | 1,289.9 | 1,355.7 |
Interest expense | 7.7 | 7.2 | 22.5 | 20.8 |
Total before tax | 29.1 | (33) | 32.1 | (1.8) |
Tax benefit | (8.4) | 9.1 | (10.6) | (1.8) |
Net income (loss) | 20.7 | (23.9) | 21.5 | (3.6) |
Cash flow hedging items | ||||
Amount reclassified from AOCI | ||||
Net of tax | (1.7) | (7.4) | (12.4) | (20) |
Net actuarial loss | ||||
Amount reclassified from AOCI | ||||
Total before tax | (10.3) | (7.5) | (30.7) | (22.5) |
Prior service cost | ||||
Amount reclassified from AOCI | ||||
Total before tax | 1.1 | 1.5 | 3.6 | 4.5 |
Curtailment charge | ||||
Amount reclassified from AOCI | ||||
Total before tax | 0 | 0 | (0.5) | 0 |
Pension and other postretirement benefit plan items | ||||
Amount reclassified from AOCI | ||||
Total before tax | (9.2) | (6) | (27.6) | (18) |
Tax benefit | 3.5 | 2.2 | 10.5 | 6.8 |
Net of tax | (5.7) | (3.8) | (17.1) | (11.2) |
Amount Reclassified from AOCI | Cash flow hedging items | ||||
Amount reclassified from AOCI | ||||
Total before tax | (2.8) | (11.8) | (20) | (32.1) |
Tax benefit | 1.1 | 4.4 | 7.6 | 12.1 |
Net income (loss) | (1.7) | (7.4) | (12.4) | (20) |
Amount Reclassified from AOCI | Commodity contracts | Cash flow hedging items | ||||
Amount reclassified from AOCI | ||||
Cost of sales | (3.1) | (12) | (21) | (32.6) |
Amount Reclassified from AOCI | Foreign exchange contracts | Cash flow hedging items | ||||
Amount reclassified from AOCI | ||||
Net sales | 0.2 | 0.1 | 0.7 | 0.2 |
Amount Reclassified from AOCI | Interest Rate Swaps | Cash flow hedging items | ||||
Amount reclassified from AOCI | ||||
Interest expense | $ 0.1 | $ 0.1 | $ 0.3 | $ 0.3 |
Sale of Equity Method Investm67
Sale of Equity Method Investment (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Sale price of equity method investment | $ 19 | $ 19 | $ 19 | |
Proceeds from the sale of equity method investment | $ 6.3 | $ 0 | $ 6.3 | |
Loss from sale of investment | $ 0.3 |