Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Aug. 15, 2019 | Dec. 31, 2018 | |
Document and Entity Information | |||
Entity Registrant Name | CARPENTER TECHNOLOGY CORP | ||
Entity Central Index Key | 0000017843 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 47,664,249 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,687,208,892 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | |||||||||||||||
Net sales | $ 641.4 | $ 609.9 | $ 556.5 | $ 572.4 | $ 618 | $ 572.2 | $ 487.8 | $ 479.8 | $ 2,380.2 | $ 2,157.7 | $ 1,797.6 | ||||
Cost of sales | 1,935.4 | 1,775.4 | 1,496.8 | ||||||||||||
Gross profit | 122.9 | 123.2 | 107 | 91.7 | 114.9 | 96.1 | 85.7 | 85.6 | 444.8 | 382.3 | 300.8 | ||||
Selling, general and administrative expenses | 203.4 | 193 | 176.1 | ||||||||||||
Loss on divestiture of business | 0 | 0 | 3.2 | ||||||||||||
Operating income | 67.9 | 73.2 | 55.4 | 45 | 60 | 45.7 | 41.4 | 42.2 | 241.4 | 189.3 | 121.5 | ||||
Interest expense | (26) | (28.3) | (29.8) | ||||||||||||
Other income (expense), net | 0.6 | (0.8) | (21.5) | ||||||||||||
Income before income taxes | 216 | 160.2 | 70.2 | ||||||||||||
Income tax expense (benefit) | 49 | (28.3) | 23.2 | ||||||||||||
Net income | $ 48.9 | $ 51.1 | $ 35.5 | $ 31.5 | $ 42.8 | $ 30.2 | $ 92.1 | $ 23.4 | $ 167 | $ 188.5 | $ 47 | ||||
EARNINGS PER COMMON SHARE: | |||||||||||||||
Basic (in dollars per share) | $ 1.01 | $ 1.06 | $ 0.73 | $ 0.66 | $ 0.90 | $ 0.63 | $ 1.93 | $ 0.49 | $ 3.46 | $ 3.96 | $ 0.99 | ||||
Diluted (in dollars per share) | $ 1 | $ 1.05 | $ 0.73 | $ 0.65 | $ 0.88 | $ 0.63 | $ 1.92 | $ 0.49 | $ 3.43 | $ 3.92 | $ 0.99 | ||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||
Basic (in shares) | 47.7 | 47.7 | 47.7 | 47.6 | 47.4 | 47.2 | 47.2 | 47.1 | 47.7 | 47.2 | 47 | ||||
Diluted (in shares) | 48.1 | 48.1 | 48 | 48.2 | 48 | 47.7 | 47.6 | 47.3 | 48.1 | 47.6 | 47.1 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 167 | $ 188.5 | $ 47 |
Other comprehensive (loss) income, net of tax | |||
Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings | (1) | 0 | 0 |
Pension and postretirement (losses) benefits, net of tax of $23.2, $(26.3) and $(27.3), respectively | (72.9) | 78.6 | 45.3 |
Net (loss) gain on derivative instruments, net of tax of $13.3, $(13.7) and $(11.8), respectively | (37.6) | 26.1 | 19.5 |
Marketable securities gain, net of tax of $0.0, $0.0 and $0.0, respectively | 0.3 | 0 | 0 |
Foreign currency translation | (0.8) | (1.4) | 2 |
Other comprehensive (loss) income, net of tax | (112) | 103.3 | 66.8 |
Comprehensive income, net of tax | $ 55 | $ 291.8 | $ 113.8 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Pension and post-retirement benefits, tax expense (benefit) | $ 23.2 | $ (26.3) | $ (27.3) |
Net gain (loss) on derivative instruments, tax expense (benefit) | 13.3 | (13.7) | (11.8) |
Marketable securities gain, tax expense (benefit) | $ 0 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
OPERATING ACTIVITIES | |||
Net income | $ 167 | $ 188.5 | $ 47 |
Adjustments to reconcile net income to net cash provided from operating activities: | |||
Depreciation and amortization | 121.5 | 116.6 | 117.8 |
Deferred income taxes | 16.5 | (61.1) | 41.6 |
Net pension expense | 11.6 | 14.2 | 48.4 |
Share-based compensation expense | 17.6 | 17.6 | 13 |
Net loss on disposal of property, plant, and equipment and assets held for sale | 1.2 | 2.5 | 2.5 |
Loss on divestiture of business | 0 | 0 | 3.2 |
Gain on insurance recovery | (11.4) | 0 | 0 |
Changes in working capital and other: | |||
Accounts receivable | (5.3) | (86.8) | (34.6) |
Inventories | (94) | 0.4 | (74.6) |
Other current assets | 6.8 | (9.6) | 2.8 |
Accounts payable | 20.1 | 10.7 | 42.5 |
Accrued liabilities | (4.9) | 28.7 | 26.6 |
Pension plan contributions | (5.5) | (6.7) | (100) |
Other postretirement plan contributions | (3.1) | (3.4) | (3.2) |
Other, net | (5.7) | (2.4) | (2.7) |
Net cash provided from operating activities | 232.4 | 209.2 | 130.3 |
INVESTING ACTIVITIES | |||
Purchases of property, plant, equipment and software | (180.3) | (135) | (98.5) |
Acquisition of businesses, net of cash acquired | (79) | (13.3) | (35.3) |
Proceeds from disposals of property, plant and equipment and assets held for sale | 0.4 | 1.9 | 2.5 |
Proceeds from insurance recovery | 11.4 | 0 | 0 |
Proceeds from note receivable from sale of equity method investment | 0 | 6.3 | 6.3 |
Proceeds from sales and maturities of marketable securities | 2.9 | 0.7 | 0.9 |
Proceeds from divestiture of business | 0 | 0 | 12 |
Net cash used for investing activities | (244.6) | (139.4) | (112.1) |
FINANCING ACTIVITIES | |||
Credit agreement borrowings | 163.9 | 0 | 122.1 |
Credit agreement repayments | (163.9) | 0 | (122.1) |
Net change in short-term credit agreement borrowings | 19.7 | 0 | 0 |
Dividends paid | (38.6) | (34.4) | (34.1) |
Payments on long-term debt | 0 | (55) | 0 |
Proceeds from stock options exercised | 3.9 | 12.9 | 2.2 |
Withholding tax payments on share-based compensation awards | (4.4) | (2.4) | (1) |
Payments of debt issue costs | 0 | 0 | (1.4) |
Tax benefits on share-based compensation | 0 | 0 | 0.5 |
Net cash used for financing activities | (19.4) | (78.9) | (33.8) |
Effect of exchange rate changes on cash and cash equivalents | 2.4 | (1) | (0.1) |
DECREASE IN CASH AND CASH EQUIVALENTS | (29.2) | (10.1) | (15.7) |
Cash and cash equivalents at beginning of year | 56.2 | 66.3 | 82 |
Cash and cash equivalents at end of year | $ 27 | $ 56.2 | $ 66.3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 27 | $ 56.2 |
Accounts receivable, net of allowance for doubtful accounts of $3.7 million and $2.6 million at June 30, 2019 and 2018, respectively | 384.1 | 378.5 |
Inventories | 787.7 | 689.2 |
Other current assets | 37.4 | 54.9 |
Total current assets | 1,236.2 | 1,178.8 |
Property, plant and equipment, net | 1,366.2 | 1,313.4 |
Goodwill | 326.4 | 268.7 |
Other intangibles, net | 67.2 | 63.3 |
Deferred income taxes | 4.2 | 4.3 |
Other assets | 187.6 | 178.5 |
Total assets | 3,187.8 | 3,007 |
Current liabilities: | ||
Short-term credit agreement borrowings | 19.7 | 0 |
Accounts payable | 238.7 | 214.7 |
Accrued liabilities | 157.6 | 148.6 |
Total current liabilities | 416 | 363.3 |
Long-term debt | 550.6 | 545.7 |
Accrued pension liabilities | 371.2 | 288.8 |
Accrued postretirement benefits | 122.1 | 108.2 |
Deferred income taxes | 142.7 | 161.6 |
Other liabilities | 65.1 | 53.5 |
Total liabilities | 1,667.7 | 1,521.1 |
Contingencies and commitments (see Note 12) | ||
STOCKHOLDERS’ EQUITY | ||
Common stock — authorized 100,000,000 shares; issued 55,808,743 shares at June 30, 2019 and 55,712,229 shares at June 30, 2018; outstanding 47,470,363 shares at June 30, 2019 and 47,191,744 shares at June 30, 2018 | 279 | 278.6 |
Capital in excess of par value | 320.4 | 310 |
Reinvested earnings | 1,605.3 | 1,475.9 |
Common stock in treasury (8,338,380 shares and 8,520,485 shares at June 30, 2019 and 2018, respectively), at cost | (332.8) | (338.8) |
Accumulated other comprehensive loss | (351.8) | (239.8) |
Total stockholders' equity | 1,520.1 | 1,485.9 |
Total liabilities and stockholders' equity | $ 3,187.8 | $ 3,007 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3.7 | $ 2.6 |
Common stock, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued shares (in shares) | 55,808,743 | 55,712,229 |
Common stock, outstanding shares (in shares) | 47,470,363 | 47,191,744 |
Common stock in treasury, shares (in shares) | 8,338,380 | 8,520,485 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Reinvested Earnings | Common Stock in Treasury | Accumulated Other Comprehensive (Loss) Income |
Balances, beginning of period 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 | 47 | 47 | ||||
Pension and postretirement benefits gain (loss), net of tax | 45.3 | 45.3 | ||||
Marketable securities gain, net of tax | 0 | |||||
Net gain (loss) on derivative instruments, net of tax | 19.5 | 19.5 | ||||
Foreign currency translation | 2 | 2 | ||||
Cash Dividends: | ||||||
Common @ $0.72 per share | (34.1) | (34.1) | ||||
Share-based compensation plans | 12.7 | 10.4 | 2.3 | |||
Stock options exercised | 2.2 | 0.4 | 1.8 | |||
Tax shortfall on share-based compensation | (0.9) | (0.9) | ||||
Balances, end of period at Jun. 30, 2017 | $ 1,198.6 | $ 276.7 | 284.8 | 1,321.8 | $ (341.6) | (343.1) |
Balances, beginning of period (in shares) at Jun. 30, 2016 | 46,600,125 | 55,254,569 | 8,654,444 | |||
Common Shares | ||||||
Stock options exercised (in shares) | 95,089 | 95,089 | ||||
Share-based compensation plans (in shares) | 57,966 | 57,966 | ||||
Balances, end of period (in shares) at Jun. 30, 2017 | 46,753,180 | 55,349,658 | 8,596,478 | |||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | $ 188.5 | 188.5 | ||||
Pension and postretirement benefits gain (loss), net of tax | 78.6 | 78.6 | ||||
Marketable securities gain, net of tax | 0 | |||||
Net gain (loss) on derivative instruments, net of tax | 26.1 | 26.1 | ||||
Foreign currency translation | (1.4) | (1.4) | ||||
Cash Dividends: | ||||||
Common @ $0.72 per share | (34.4) | (34.4) | ||||
Share-based compensation plans | 17 | 14.2 | $ 2.8 | |||
Stock options exercised | 12.9 | $ 1.9 | 11 | |||
Balances, end of period at Jun. 30, 2018 | $ 1,485.9 | $ 278.6 | 310 | 1,475.9 | $ (338.8) | (239.8) |
Common Shares | ||||||
Stock options exercised (in shares) | 362,571 | 362,571 | ||||
Share-based compensation plans (in shares) | 75,993 | 75,993 | ||||
Balances, end of period (in shares) at Jun. 30, 2018 | 47,191,744 | 55,712,229 | 8,520,485 | |||
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | $ 167 | 167 | ||||
Pension and postretirement benefits gain (loss), net of tax | (72.9) | (72.9) | ||||
Marketable securities gain, net of tax | 0.3 | 0.3 | ||||
Net gain (loss) on derivative instruments, net of tax | (37.6) | (37.6) | ||||
Foreign currency translation | (0.8) | (0.8) | ||||
Cash Dividends: | ||||||
Common @ $0.72 per share | (38.6) | (38.6) | ||||
Share-based compensation plans | 12.9 | 6.9 | $ 6 | |||
Stock options exercised | 3.9 | $ 0.4 | 3.5 | |||
Balances, end of period at Jun. 30, 2019 | $ 1,520.1 | $ 279 | $ 320.4 | $ 1,605.3 | $ (332.8) | $ (351.8) |
Common Shares | ||||||
Stock options exercised (in shares) | 96,514 | 96,514 | ||||
Share-based compensation plans (in shares) | 182,105 | 182,105 | ||||
Balances, end of period (in shares) at Jun. 30, 2019 | 47,470,363 | 55,808,743 | 8,338,380 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per common share (in dollars per share) | $ 0.80 | $ 0.72 | $ 0.72 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 | $ 5 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Consolidation The consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. All significant intercompany accounts and transactions are eliminated. Investments in companies in which the Company exercises significant influence, but which it does not control (generally a 20 to 50 percent ownership interest), are accounted for by the equity method of accounting and the Company’s share of their income or loss is included in other income (expense), net in the consolidated statements of income. Revenue Recognition Revenue, net of related discounts, rebates, returns and allowances of $22.6 million , $26.5 million and $23.8 million for the years ended June 30, 2019 , 2018 and 2017 , respectively, is recognized when performance obligations are satisfied under the terms of a customer order or contract. This is generally determined when title, ownership and risk of loss has transferred to the customer upon shipment or delivery of a product or when the service has been performed. These criteria are generally met upon shipment or delivery of the product based on the applicable shipping terms. Shipping terms may vary for products shipped outside the United States depending on the mode of transportation, the country where the material is shipped and any agreements made with the customers. Freight and Handling Fees and Costs Freight and handling costs billed separately to customers are included as part of net sales, and freight and handling costs expensed are included as part of cost of sales on the consolidated statements of income. Research and Development Research and development expenditures, which amounted to $23.3 million , $19.3 million and $16.9 million in fiscal years 2019 , 2018 and 2017 , respectively, are expensed as incurred and are generally reported in cost of sales in the consolidated statements of income. The research and development expenditures consist principally of salaries and benefits, building costs, utilities and administrative expenses. Substantially all development costs are related to developing new products or designing significant improvements to existing products or processes. Cash Equivalents Cash equivalents consist of highly liquid instruments with original maturities of three months or less. Cash equivalents are stated at cost, which approximates market. Accounts Receivable Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of outstanding amounts. Trade credit is extended based upon periodic evaluation of each customer’s ability to perform its obligations. The Company determines accounts receivable allowances based on an aging of accounts and a review of specific accounts identified as collection risks. The Company does not require collateral to secure accounts receivable. Inventories Inventories are valued at the lower of cost or market. Cost for inventories is principally determined by the LIFO method. The Company also uses the FIFO and average cost methods. As of June 30, 2019 and 2018, $173.2 million and $138.6 million of inventory, respectively, was accounted for using a method other than the LIFO method. Property, Plant and Equipment and Depreciation Fixed assets are stated at historical cost less accumulated depreciation. Depreciation for financial reporting purposes is computed by the straight-line method over the estimated useful lives of the assets. Upon disposal, assets and related depreciation are removed from the accounts and the differences between the net amounts and proceeds from disposal are generally included in cost of goods sold in the consolidated statements of income. Computer Software and Amortization Computer software is included in other assets on the consolidated balance sheets and is amortized for financial reporting purposes on a straight-line basis over the respective estimated useful lives ranging from 3 to 7 years. Amortization expense charged to operations related to capitalized software amounted to $6.1 million , $5.1 million and $5.2 million for the years ended June 30, 2019 , 2018 and 2017 , respectively. The carrying value of computer software net of accumulated amortization at June 30, 2019 and 2018 was $123.8 million and $101.8 million , respectively. Goodwill Goodwill, net of accumulated impairment losses, representing the excess of the cost over the net tangible and identifiable intangible assets of acquired businesses, is stated at cost. Goodwill is not amortized but instead is annually tested for impairment as of June 30, or more frequently if events or circumstances indicate that the carrying amount of goodwill may be impaired. Such events or circumstances include a decline in general economic conditions, adverse changes in the industry and markets, poor financial performance affecting earnings and cash flows and a trend of negative or declining cash flows over multiple periods. Potential impairment is identified by comparing the fair value of a reporting unit to its carrying value, including goodwill. The fair value is estimated using discounted cash flows and the use of market multiples valuation techniques. These valuation techniques require the use of estimates and assumptions related to projected revenue growth rates, operating results, capital expenditures and working capital levels as well as the cost of capital. The cash flow forecasts include significant judgments and assumptions relating to revenue growth rates. If the carrying value of the reporting unit exceeds its fair value, any impairment loss is measured by comparing the carrying value of the reporting unit’s goodwill to its implied fair value. Intangible assets The costs of intangible assets, consisting principally of trademarks, trade names, non-compete arrangements, technology, patents and customer relationships are amortized on a straight-line basis over the estimated useful lives ranging from 5 to 30 years. Impairment of Long-Lived Assets Long-lived assets, including property, plant, equipment and intangible assets, subject to amortization are reviewed for impairment and written down to fair value whenever events or changes in circumstances indicate that the carrying value may not be recoverable through future undiscounted cash flows. The amount of the impairment loss is the excess of the carrying amount of the impaired assets over the fair value of the assets based upon discounted future cash flows. Environmental Expenditures Environmental expenditures that pertain to current operations or to future revenues are expensed or capitalized consistent with the Company’s capitalization policy for property, plant and equipment. Expenditures that result from the remediation of an existing condition caused by past operations and that do not contribute to current or future revenues are expensed. Liabilities are recognized for remedial activities when the remediation is probable and the cost can be reasonably estimated. Most estimated liabilities are not discounted to present value due to the uncertainty as to the timing and duration of expected costs. For one former operating facility site, due to the routine nature of the expected costs, the liability for future costs is discounted to present value over 20 years assuming a discount rate of approximately 3 percent as of June 30, 2019 and 2018. The liabilities, net of present value discount, for this former operating site were $11.0 million and $11.0 million , as of June 30, 2019 and 2018 , respectively. Derivative Financial Instruments All derivative financial instruments are recorded on the balance sheet at their fair value and changes in fair value are recorded each period in current earnings or other comprehensive income. The Company enters into derivative financial instruments to hedge certain anticipated transactions, firm commitments or assets and liabilities denominated in foreign currencies. In addition, the Company utilizes interest rate swaps to convert fixed rate debt to floating rate debt. Foreign Currency Translation Assets and liabilities of international operations are translated into U.S. dollars at exchange rates in effect at year-end, and their income statements are translated at the average monthly exchange rates prevailing during the year. The resulting translation gains and losses are recorded each period as a component of accumulated other comprehensive income (loss) until the international entity is sold or liquidated. Gains and losses from transactions denominated in foreign currencies are reported in other income (expense), net in the consolidated statements of income. Income Taxes Deferred income taxes are recognized by applying enacted statutory tax rates, applicable to future years, to temporary differences between the tax basis and financial statement carrying values of the Company’s assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets to amounts that are more likely than not to be realized. Significant judgments, estimates and assumptions are required in determining tax return reporting positions and in calculating provisions for income tax, which are based on interpretations of tax regulations and accounting pronouncements. Liabilities are established for uncertain tax positions when it is more likely than not that such positions, if challenged, would not be sustained upon review by taxing authorities. These liabilities are re-evaluated as tax regulations and facts and circumstances change, such as the closing of a tax audit or the expiration of the statute of limitations for a specific exposure. Earnings per 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 (restricted stock 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 shares for the period in each class. Diluted earnings per share assume the issuance of common stock for all potentially dilutive share equivalents outstanding. Concentration of Credit Risk Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and cash equivalents, investments in marketable securities and trade receivables. Investment and cash management policies have been implemented that limit deposit concentrations and limit investments to investment grade securities. The risk with respect to trade receivables is mitigated by monitoring payment terms and periodic credit evaluations we perform on our customers, the short duration of our payment terms and by the diversification of our customer base. During fiscal years 2019, 2018 and 2017, one customer, Arconic Inc., accounted for approximately 11 percent , 12 percent and 11 percent , respectively, of total net sales. Approximately 12 percent of the accounts receivable outstanding at June 30, 2019 is due from one customer, Arconic Inc. No single customer accounted for 10 percent or more of accounts receivable outstanding at June 30, 2018. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Reclassifications Certain amounts in the consolidated financial statement for prior years have been reclassified to conform to the fiscal year 2019 presentation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements - Adopted in current period In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a single comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersedes virtually all existing revenue recognition requirements and guidance. This framework resulted in less complex guidance in application while providing a consistent and comparable methodology for revenue recognition. The standard provides a five-step model to be applied to all contracts with customers, with an underlying principle that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASU 2014-09 for all open contracts as of July 1, 2018 using the modified retrospective transition method. The adoption of the new standard did not have a material impact on the financial position of the Company, the results of its operations or its cash flows for fiscal year ended June 30, 2019 . There was no cumulative effect of adopting the standard at the date of initial application in reinvested earnings. The Company’s revenue recognition accounting policy has been updated for the new guidance and the Company has expanded disclosure of revenues from contracts with customers as included in Note 3. Revenue. 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 adoption permitted. The Company adopted the provisions of ASU 2016-16 in the first quarter of fiscal year 2019. The adoption of ASU 2016-16 did not materially impact the Company’s 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. The guidance changes how employers that sponsor defined benefit pension and other post-retirement benefit plans disaggregate the service cost components from other components of net periodic benefit costs in the income statement. This amendment requires that the service cost component be reported in net income as “cost of sales” or “selling, general and administrative expenses” in a manner consistent with the classification of direct labor and personnel costs of the eligible employees. Other components of net periodic benefit costs including interest costs, expected return on plan assets, amortization of net loss, amortization of prior service cost (benefits) (“pension earnings, interest and deferrals”) are classified as non-operating expense in “other income (expense), net” on the consolidated statements of income. The update specifies that only the service cost component is eligible for capitalization, which is consistent with the Company’s current practice. The Company adopted the provisions of ASU 2017-07 effective July 1, 2018 on a retrospective basis. For fiscal year ended June 30, 2018 , $0.1 million and $2.0 million have been reclassified from cost of goods sold and selling, general and administrative expenses, respectively, to other income (expense), net on the consolidated statements of income. For fiscal year ended June 30, 2017, $16.5 million and $7.8 million have been reclassified from cost of goods sold and selling, general and administrative expenses, respectively, to other income (expense), net on the consolidated statements of income. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedge Activities, which amended and simplified the requirements of hedge accounting. ASU 2017-12 enables companies to more accurately present the economic effects of risk management activities in the financial statements. The guidance requires the presentation of all items that affect earnings to be recorded in the same income statement line as the hedged item and is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years with early adoption permitted. The Company adopted the provisions of ASU 2017-12 on July 1, 2018. Upon adoption, the Company reclassified $1.0 million of previously recorded hedge ineffectiveness from Reinvested Earnings to Accumulated Other Comprehensive Loss within the equity section of the consolidated balance sheets and provided expanded disclosures of derivative activity. Recently Issued Accounting Pronouncements - Pending Adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which 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 adoption permitted. The Company completed the accumulation of current lease information into the accounting software and validated the data for accuracy. The Company expects to elect the package of practical expedients not to reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. The Company will make a policy election to not recognize right-of-use assets and lease liabilities for short-term leases for all asset classes. Upon adoption of the new lease guidance, the Company expects to record a right-of-use asset and lease liability on the consolidated balance sheets for several types of operating leases, including buildings, equipment, vehicles and computer equipment. The Company anticipates the impact of the adoption on July 1, 2019 will result in a right-of-use asset and total lease liability related to operating leases in the range of $51 million to $57 million . The adoption is not expected to have a material impact on the Consolidated Statements of Income or Consolidated Statements of Cash Flows. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income (loss) to reinvested earnings for standard tax effects resulting from the Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018. ASU 2018-02 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company does not expect the adoption of ASU 2018-02 on July 1, 2019 will have a material impact on the consolidated financial statements. |
Revenue
Revenue | 12 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company recognizes revenue in accordance with Topic 606, Revenue from Contracts. The Company applies the five-step model in the FASB’s guidance, which requires the Company to: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when, or as, the Company satisfies a performance obligation. The Company recognizes revenue when performance obligations under the terms of a customer purchase order or contract are satisfied. This occurs when control of the goods and services has transferred to the customer, which is generally determined when title, ownership and risk of loss pass to the customer, all of which occurs upon shipment or delivery of the product or the service is performed. Consignment transactions are arrangements where the Company transfers product to a customer location but retains ownership and control of such product until it is used by the customer. Revenue for consignment arrangements is recognized upon usage by the customer. Service revenue is recognized as the services are performed. The customer purchase order or contract for goods transferred has a single performance obligation for which revenue is recognized at a point in time. The standard terms and conditions of a customer purchase order include general rights of return and product warranty provisions related to nonconforming product. Depending on the circumstances, the product is either replaced or a quality adjustment is issued. Such warranties do not represent a separate performance obligation. Each customer purchase order or contract sets forth the transaction price for the products and services purchased under that arrangement. Some customer arrangements include variable consideration, such as volume rebates, which generally depend upon the Company’s customers meeting specified performance criteria, such as a purchasing level over a period of time. The Company exercises judgment to estimate the most likely amount of variable consideration at each reporting date. Revenue is measured as the amount of consideration the Company expects to receive in exchange for its product. The normal payment terms are 30 days. The Company has elected to use the practical expedient that permits a Company to not adjust for the effects of a significant financing component if it expects that at the contract inception, the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Amounts billed to customers for shipping and handling activities to fulfill the Company’s promise to transfer the goods are included in revenues and costs incurred by the Company for the delivery of goods are classified as cost of sales in the consolidated statements of income. Shipping terms may vary for products shipped outside the United States depending on the mode of transportation, the country where the material is shipped and any agreements made with the customers. Contract liabilities are recognized when the Company has received consideration from a customer to transfer goods or services at a future point in time when the Company performs under the purchase order or contract. Contract liabilities were $ 10.5 million and $ 10.4 million at June 30, 2019 and 2018, respectively, and are included in accrued liabilities on the consolidated balance sheets. The Company elected the practical expedient that permits the omission of disclosure for remaining performance obligations which are expected to be satisfied in one year or less. Disaggregation of Revenue The Company operates in two business segments, Specialty Alloys Operations (“SAO”) and Performance Engineered Products (“PEP”). Revenue is disaggregated within these two business segments by diversified end-use markets and by geographical location. Comparative information of the Company’s overall revenues by end-use markets and geography for years ended June 30, 2019, 2018 and 2017 were as follows: End-Use Market Data Year Ended Year Ended Year Ended ($ in millions) 2019 2018 2017 Aerospace and Defense $ 1,327.9 $ 1,182.3 $ 973.3 Medical 205.0 175.3 125.5 Energy 181.7 146.5 138.0 Transportation 157.7 157.0 143.9 Industrial and Consumer 371.5 364.9 298.2 Distribution 136.4 131.7 118.7 Total net sales $ 2,380.2 $ 2,157.7 $ 1,797.6 Geographic Data Year Ended Year Ended Year Ended ($ in millions) 2019 2018 2017 United States $ 1,606.7 $ 1,429.4 $ 1,198.3 Europe 387.2 383.0 349.6 Asia Pacific 196.3 174.8 127.2 Mexico 81.6 61.7 48.5 Canada 67.8 65.7 47.7 Other 40.6 43.1 26.3 Total net sales $ 2,380.2 $ 2,157.7 $ 1,797.6 |
Acquisitions and Divestiture
Acquisitions and Divestiture | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions and Divestiture | Acquisitions and Divestiture On October 22, 2018, the Company acquired all the outstanding shares of LPW Technology Ltd. (“LPW”), for a cash purchase price of $79.0 million , net of cash acquired. The acquisition combines LPW’s metal powder lifecycle management technology and processes with the Company's technical expertise in producing highly engineered metal powders and additively manufactured components. The purchase price allocation was completed in the fourth quarter of fiscal year 2019 and resulted in the purchase price being allocated to: $2.1 million of accounts receivable, $4.5 million of inventory, $0.5 million of other current assets, $11.9 million of property, plant and equipment, $11.4 million of identifiable intangible assets, $59.0 million of goodwill, $4.4 million of accounts payable, $2.5 million of current liabilities and $3.5 million of other liabilities. On February 21, 2018, the Company acquired all of the outstanding membership interests of MB CalRAM LLC (“CalRAM”), for a cash purchase price of $13.3 million . The acquisition provides the Company with immediate entry into the rapidly expanding part production segment of the additive manufacturing value chain. The purchase price allocation was completed in the fourth quarter of fiscal year 2018 and resulted in the purchase price being allocated to $0.2 million of working capital, $2.6 million of property, plant and equipment, $5.2 million of identifiable intangible assets and $5.3 million of goodwill. On February 28, 2017, the Company acquired substantially all 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. The purchase price allocation was completed in the fourth quarter of fiscal year 2017 and resulted in the purchase price being allocated to $1.7 million of working capital, $6.5 million of property, plant and equipment, $8.5 million of identifiable intangible assets and $18.6 million of goodwill. On June 29, 2017, the Company divested the Specialty Steel Supply (“SSS”) business. The divestiture was completed in two separate transactions for total cash proceeds of $12.0 million . In connection with the divestiture, the Company recorded a pretax loss of $3.2 million . The operations of the SSS business were historically included in our Performance Engineered Products (“PEP”) segment. The Company does not have any significant continuing involvement in the operations of SSS after the divestiture. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share The calculations of basic and diluted earnings per common share for the years ended June 30, 2019 , 2018 and 2017 were as follows: Years Ended June 30, (in millions, except per share data) 2019 2018 2017 Net income $ 167.0 $ 188.5 $ 47.0 Less: earnings and dividends allocated to participating securities (1.9 ) (1.7 ) (0.3 ) Earnings available for common shareholders used in calculation of basic earnings per share $ 165.1 $ 186.8 $ 46.7 Weighted average number of common shares outstanding, basic 47.7 47.2 47.0 Basic earnings per common share $ 3.46 $ 3.96 $ 0.99 Net income $ 167.0 $ 188.5 $ 47.0 Less: earnings and dividends allocated to participating securities (1.9 ) (1.7 ) (0.3 ) Earnings available for common shareholders used in calculation of diluted earnings per share $ 165.1 $ 186.8 $ 46.7 Weighted average number of common shares outstanding, basic 47.7 47.2 47.0 Effect of shares issuable under share-based compensation plans 0.4 0.4 0.1 Weighted average number of common shares outstanding, diluted 48.1 47.6 47.1 Diluted earnings per common share $ 3.43 $ 3.92 $ 0.99 The following awards issued under share-based compensation plans were excluded from the calculations of diluted earnings per share above because their effects were anti-dilutive: Years Ended June 30, (in millions) 2019 2018 2017 Stock options 0.7 0.7 1.9 |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consisted of the following components at June 30, 2019 and 2018 : June 30, ($ in millions) 2019 2018 Raw materials and supplies $ 169.8 $ 157.5 Work in process 425.7 372.5 Finished and purchased products 192.2 159.2 Total inventory $ 787.7 $ 689.2 If the FIFO method of inventory had been used instead of the LIFO method, inventories would have been $178.4 million and $210.3 million higher as of June 30, 2019 and 2018 , respectively. Current cost of LIFO-valued inventories was $793.0 million at June 30, 2019 and $760.8 million at June 30, 2018 . The reductions in LIFO-valued inventories decreased cost of sales by $0.0 million during fiscal year 2019 and $0.6 million during fiscal year 2018 and $0.0 million during fiscal year 2017 . |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment consisted of the following components at June 30, 2019 and 2018 : June 30, ($ in millions) 2019 2018 Land $ 35.6 $ 34.8 Buildings and building equipment 512.9 500.0 Machinery and equipment 2,183.6 2,129.0 Construction in progress 150.7 83.6 Total at cost 2,882.8 2,747.4 Less: accumulated depreciation and amortization 1,516.6 1,434.0 Total property, plant, and equipment $ 1,366.2 $ 1,313.4 The estimated useful lives of depreciable assets are as follows: Asset Category Useful Life Buildings and building equipment 10 – 45 Machinery and equipment 3 – 30 Depreciation for the years ended June 30, 2019 , 2018 and 2017 was $108.1 million , $104.7 million and $105.8 million , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, Net | Goodwill and Other Intangible Assets, Net Goodwill The Company conducts goodwill impairment testing at least annually as of June 30, or more often if events, changes or circumstances indicate that the carrying amount may not be recoverable. The Company has determined there was no goodwill impairment for the years ended June 30, 2019 and 2018. The changes in the carrying amount of goodwill by reportable segment for fiscal years 2019 and 2018 were as follows: ($ in millions) June 30, 2017 Acquisition June 30, 2018 Acquisition June 30, 2019 Goodwill $ 310.6 $ 5.3 $ 315.9 $ 57.7 $ 373.6 Accumulated impairment losses (47.2 ) — (47.2 ) — (47.2 ) Total goodwill $ 263.4 $ 5.3 $ 268.7 $ 57.7 $ 326.4 Specialty Alloys Operations $ 195.5 $ — $ 195.5 $ — $ 195.5 Performance Engineered Products 67.9 5.3 73.2 57.7 130.9 Total goodwill $ 263.4 $ 5.3 $ 268.7 $ 57.7 $ 326.4 Other Intangible Assets, Net June 30, 2019 June 30, 2018 ($ in millions) Useful Life Gross Accumulated Net Carrying Gross Accumulated Net Carrying Trademarks and trade names 15 - 30 $ 33.5 $ (24.3 ) $ 9.2 $ 33.5 $ (23.2 ) $ 10.3 Customer relationships 10 - 15 76.9 (36.0 ) 40.9 76.9 (30.8 ) 46.1 Non-compete agreements 5 0.2 (0.1 ) 0.1 0.2 (0.1 ) 0.1 Technology 15 7.3 (1.0 ) 6.3 7.3 (0.5 ) 6.8 Patents 14 - 20 11.4 (0.7 ) 10.7 — — — Total $ 129.3 $ (62.1 ) $ 67.2 $ 117.9 $ (54.6 ) $ 63.3 The Company recorded $7.3 million of amortization expense related to intangible assets during fiscal year 2019 , $6.8 million during fiscal year 2018 and $6.8 million during fiscal year 2017 . The estimated annual amortization expense related to intangible assets for each of the succeeding five fiscal years is $7.6 million in fiscal years 2020 , 2021 , 2022 , 2023 and 2024 . |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Accrued Liabilities | Accrued Liabilities Accrued liabilities consisted of the following as of June 30, 2019 and 2018 : June 30, ($ in millions) 2019 2018 Accrued compensation and benefits $ 71.2 $ 83.3 Derivative financial instruments 16.7 — Accrued postretirement benefits 14.7 15.4 Deferred revenue 10.5 10.4 Accrued interest expense 10.4 10.4 Accrued income taxes 4.2 1.4 Accrued pension liabilities 3.4 3.3 Other 26.5 24.4 Total accrued liabilities $ 157.6 $ 148.6 |
Debt
Debt | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt On March 31, 2017, the Company entered into a $400.0 million syndicated credit facility (“Credit Agreement”) that extends to March 2022. Interest on the borrowings under the Credit Agreement accrue at variable rates, based upon LIBOR or a defined “ Base Rate ,” both 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% ( 1.25% as of June 30, 2019 ), and for Base Rate-determined loans, from 0.00% to 0.75% ( 0.25% as of June 30, 2019 ). The Company also pays a quarterly commitment fee ranging from 0.125% to 0.400% ( 0.20% as of June 30, 2019 ), 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% ( 1.25% as of June 30, 2019 ), 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 June 30, 2019 , the Company had $6.0 million of issued letters of credit under the Credit Agreement and $19.7 million of short-term borrowings, with the balance of $374.3 million available to the Company. As of June 30, 2019 , the borrowing rate for the Credit Agreement was 3.90% . The Company is subject to certain financial and restrictive covenants under the Credit Agreement, which, among other things, require the maintenance of a minimum interest coverage ratio of 3.50 to 1.00 . The interest coverage ratio is defined in the Credit Agreement as, for any period, the ratio of consolidated earnings before interest, taxes, depreciation and amortization and non-cash net pension expense (“EBITDA”) to consolidated interest expense for such period. The Credit Agreement also requires the Company to maintain a debt to capital ratio of less than 55 percent. The debt to capital ratio is defined in the Credit Agreement as the ratio of consolidated indebtedness, as defined therein, to consolidated capitalization, as defined therein. As of June 30, 2019 , the Company was in compliance with all of the covenants of the Credit Agreement. Long-term debt outstanding as of June 30, 2019 and 2018 consisted of the following: June 30, ($ in millions) 2019 2018 Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at June 30, 2019 and 2018) $ 251.2 $ 246.6 Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at June 30, 2019 and 2018) 299.4 299.1 Total 550.6 545.7 Less: amounts due within one year — — Long-term debt, net of current portion $ 550.6 $ 545.7 Aggregate maturities of long-term debt for the five years subsequent to June 30, 2019 , are $0.0 million in fiscal years 2020 , 2021 , $250.0 million in 2022, $300.0 million in 2023 and $0.0 million in 2024. For the years ended June 30, 2019 , 2018 and 2017 , interest costs totaled $31.1 million , $31.1 million and $31.1 million , respectively, of which $5.1 million , $2.8 million and $1.3 million , respectively, were capitalized as part of the cost of property, plant, equipment and software. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The Company provides several noncontributory defined benefit pension plans to certain employees. The plans provide defined benefits based on years of service and final average salary. The Company made minimum required contributions of $5.5 million and $ 6.7 million during fiscal years 2019 and 2018, respectively, to its qualified defined benefit pension plans. The Company also provides other postretirement benefit plans to certain of its employees. The postretirement benefit plans consist of health care and life insurance plans. Plan assets are maintained in a Voluntary Employee Benefit Association (“VEBA”) Trust. During fiscal years 2019 and 2018, the Company funded benefit payments using assets in the VEBA Trust. The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans: Pension Plans Other Postretirement Plans ($ in millions) 2019 2018 2019 2018 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 1,264.5 $ 1,369.1 $ 241.5 $ 255.1 Service cost 9.2 9.5 2.3 2.6 Interest cost 53.0 52.1 10.1 9.5 Benefits paid (88.7 ) (89.8 ) (12.6 ) (13.0 ) Actuarial loss (gains) 101.3 (76.6 ) 14.5 (12.7 ) Special termination benefits — 0.2 — — Projected benefit obligation at end of year 1,339.3 1,264.5 255.8 241.5 Change in plan assets: Fair value of plan assets at beginning of year 972.5 987.6 117.9 117.0 Actual return 72.2 64.7 10.5 10.6 Benefits paid (88.7 ) (89.8 ) (12.6 ) (13.0 ) Contributions 8.7 10.0 3.2 3.3 Fair value of plan assets at end of year 964.7 972.5 119.0 117.9 Funded status of the plans $ (374.6 ) $ (292.0 ) $ (136.8 ) $ (123.6 ) Amounts recognized in the consolidated balance sheets: Other assets - noncurrent $ — $ 0.1 $ — $ — Accrued liabilities - current (3.4 ) (3.3 ) (14.7 ) (15.4 ) Accrued pension liabilities - noncurrent (371.2 ) (288.8 ) — — Accrued postretirement benefits - noncurrent — — (122.1 ) (108.2 ) $ (374.6 ) $ (292.0 ) $ (136.8 ) $ (123.6 ) Pension Plans Other Postretirement Plans ($ in millions) 2019 2018 2019 2018 Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 445.7 $ 362.1 $ 42.3 $ 32.9 Prior service cost (credit) 14.1 16.2 (17.9 ) (23.1 ) Total $ 459.8 $ 378.3 $ 24.4 $ 9.8 Other changes in plan assets and benefit obligations recognized in other comprehensive loss consist of: Net actuarial loss (gain) $ 94.1 $ (75.0 ) $ 10.9 $ (16.3 ) Amortization of net loss (10.4 ) (13.5 ) (1.6 ) (2.9 ) Amortization of prior service (cost) benefit (2.1 ) (2.1 ) 5.2 5.2 Total, before tax effect $ 81.6 $ (90.6 ) $ 14.5 $ (14.0 ) Additional information: Accumulated benefit obligation for all pension plans $ 1,331.6 $ 1,257.8 N/A N/A The following is additional information related to plans with projected benefit obligations in excess of plan assets as of June 30, 2019 and 2018 : Pension Plans Other Postretirement Plans ($ in millions) 2019 2018 2019 2018 Projected benefit obligation $ 1,339.3 $ 1,264.4 $ 255.9 $ 241.5 Fair value of plan assets $ 964.7 $ 972.4 $ 119.0 $ 117.9 The following additional information is for plans with accumulated benefit obligations in excess of plan assets as of June 30, 2019 and 2018 : Pension Plans Other Postretirement Plans ($ in millions) 2019 2018 2019 2018 Accumulated benefit obligation $ 1,331.5 $ 1,257.7 $ 255.9 $ 241.5 Fair value of plan assets $ 964.7 $ 972.4 $ 119.0 $ 117.9 The components of the net periodic benefit cost related to the Company’s pension and other postretirement benefits for the years ended June 30, 2019 , 2018 and 2017 are as follows: Pension Plans Other Postretirement Plans ($ in millions) 2019 2018 2017 2019 2018 2017 Service cost $ 9.2 $ 9.5 $ 20.5 $ 2.3 $ 2.6 $ 3.6 Interest cost 53.0 52.1 50.3 10.1 9.5 9.2 Expected return on plan assets (64.9 ) (65.9 ) (65.1 ) (7.0 ) (6.9 ) (6.9 ) Amortization of net loss 10.4 13.5 37.8 1.6 2.9 3.2 Amortization of prior service cost (benefit) 2.1 2.1 1.8 (5.2 ) (5.2 ) (6.5 ) Curtailment loss — — 0.5 — — — Net periodic benefit costs $ 9.8 $ 11.3 $ 45.8 $ 1.8 $ 2.9 $ 2.6 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 presented in "Other Income (Expense), Net". See Note 18 to our consolidated financial statements included in Item 8. “Financial Statements and Supplementary Data”. Weighted-average assumptions used to determine benefit obligations at fiscal year end Pension Plans Other Postretirement Plans 2019 2018 2019 2018 Discount rate 3.61 % 4.32 % 3.60 % 4.32 % Rate of compensation increase 3.39 % 3.44 % N/A N/A Weighted-average assumptions used to determine net periodic benefit cost for the fiscal year Pension Plans Other Postretirement Plans 2019 2018 2017 2019 2018 2017 Discount rate 4.32 % 3.92 % 3.91 % 4.32 % 3.89 % 3.86 % Expected long-term rate of return on plan assets 6.88 % 6.87 % 6.88 % 6.25 % 6.25 % 6.25 % Long-term rate of compensation increase 3.39 % 3.44 % 3.50 % N/A N/A N/A The following table shows the expected health care rate increase and the future rate and time at which it is expected to remain constant: June 30, 2019 2018 Assumed health care cost trend rate 6.25 % 6.50 % Rate to which the cost trend rate is assumed to decline and remain (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2025 2022 Assumed health care cost trend rates have an effect on the amounts reported for other postretirement benefits. A one percentage point increase in the assumed health care cost trend rate would increase service and interest cost by $0.1 million and increase the postretirement benefit obligation by $2.6 million . A one percentage point decrease in the assumed health care cost trend rate would decrease service and interest cost by $0.1 million and decrease the postretirement benefit obligation by $2.3 million . Amounts in other comprehensive loss (gain) that are expected to be recognized as components of net periodic benefit cost in the year ended June 30, 2020 are: ($ in millions) Pension Plans Other Postretirement Plans Total Amortization of prior service cost (benefit) $ 2.1 $ (3.9 ) $ (1.8 ) Amortization of net actuarial loss 15.5 2.5 18.0 Amortization of accumulated other comprehensive loss (gain) $ 17.6 $ (1.4 ) $ 16.2 The Company’s U.S. pension plans’ weighted-average asset allocations at June 30, 2019 and 2018 , by asset category are as follows: 2019 2018 Equity securities 53.7 % 55.7 % Fixed income securities 46.3 44.3 Total 100.0 % 100.0 % The Company’s policy for developing a pension plan investment strategy includes the periodic development of an asset and liability study by an independent investment consultant. Management considers this study in establishing an asset allocation that is presented to and approved by the Company’s Retirement Plan Committee. Based on the current funding level, the allocation policy for the Company’s largest pension plan assets is to have approximately 60 percent in return seeking assets and 40 percent in liability matching assets. Return seeking assets include domestic and international equities and diversified loan funds. Liability matching assets include long duration bond funds. As the funding level of the plan improves in increments of 5 percent , assets will be shifted from return seeking to liability matching in increments of 4 percent as a de-risking strategy. The assets related to the Company’s other postretirement benefit plans were invested in approximately 70 percent U.S. equities, 23 percent short term investments and 7 percent fixed income securities as of June 30, 2019 . Management establishes the expected long-term rate of return assumption by reviewing historical trends and analyzing the current and projected market conditions in relation to the plan’s asset allocation and risk management objectives. In determining the expected long-term rate of return, the Company considered historical returns for individual asset classes and the impact of active portfolio management. The fair values of the Company’s pension plan assets as of June 30, 2019 and 2018 , by asset category and by the levels of inputs used to determine fair value were as follows: June 30, 2019 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Short-term investments $ 5.4 $ 9.5 $ — $ 14.9 Domestic and international equities 132.6 — — 132.6 Commingled funds — — 371.4 371.4 Limited partnerships — — 45.4 45.4 Government agency bonds 4.8 172.0 — 176.8 Corporate bonds — 220.2 — 220.2 Mutual funds 1.9 — — 1.9 Mortgage/asset backed securities and other — 1.5 — 1.5 $ 144.7 $ 403.2 $ 416.8 $ 964.7 June 30, 2018 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Short-term investments $ 2.5 $ 14.6 $ — $ 17.1 Domestic and international equities 156.4 — — 156.4 Commingled funds — — 365.3 365.3 Limited partnerships — — 43.3 43.3 Government agency bonds 3.5 151.6 — 155.1 Corporate bonds — 226.3 — 226.3 Mutual funds — — 1.8 1.8 Mortgage/asset backed securities and other — 7.2 — 7.2 $ 162.4 $ 399.7 $ 410.4 $ 972.5 The fair values of the Company’s other postretirement benefit plans as of June 30, 2019 and 2018 , by asset category and by the level of inputs used to determine fair value, were as follows: June 30, 2019 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Commingled fund $ — $ — $ 83.7 $ 83.7 Short-term investments — 27.1 — 27.1 Government agency bonds — 4.8 — 4.8 Corporate bonds and other — 3.4 — 3.4 $ — $ 35.3 $ 83.7 $ 119.0 June 30, 2018 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Commingled fund $ — $ — $ 80.3 $ 80.3 Short-term investments — 23.0 — 23.0 Government agency bonds — 8.7 — 8.7 Corporate bonds and other — 5.4 — 5.4 Mortgage backed securities — 0.5 — 0.5 $ — $ 37.6 $ 80.3 $ 117.9 A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Investments in domestic and international equities are generally valued at the closing price reported on the active market on which they are traded. Commingled funds, limited partnerships and mutual funds are valued based on the net asset value (“NAV”) established for the fund at each valuation date. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of units/shares outstanding. Corporate and government agency bonds and other fixed income securities are valued using closing bid prices on an active market when possible, otherwise using evaluated bid prices. Cash Flows — Employer Contributions The Company made contributions to the qualified U.S. pension plans of $5.5 million , $6.7 million and $100.0 million during fiscal years 2019 , 2018 and 2017 , respectively. The Company currently expects to make $6.2 million in required cash pension contributions to the qualified defined benefit pension plans during fiscal year 2020 . During the years ended June 30, 2019 , 2018 and 2017 , the Company made contributions of $3.2 million , $3.3 million and $3.5 million to other non-qualified pension plans, respectively. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid. Pension benefits are currently paid from plan assets and other benefits are currently paid from corporate assets. ($ in millions) Pension Other 2020 $ 83.0 $ 14.7 2021 $ 82.4 $ 15.1 2022 $ 82.6 $ 15.1 2023 $ 82.4 $ 15.1 2024 $ 81.8 $ 15.1 2025-2029 $ 395.5 $ 73.1 Other Benefit Plans Carpenter also maintains defined contribution retirement and savings plans for substantially all domestic employees. Company contributions to the plans were $24.8 million in fiscal year 2019 , $22.6 million in fiscal year 2018 and $16.7 million in fiscal year 2017 . |
Contingencies and Commitments
Contingencies and Commitments | 12 Months Ended |
Jun. 30, 2019 | |
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. 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, we 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. 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. For fiscal years 2019 and 2018 , the Company had no change to the liability for a company-owned former operating site. During fiscal year 2017 , the Company decreased the liability for a company-owned former operating site by $0.1 million . 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 June 30, 2019 and 2018 were $16.1 million and $16.1 million , respectively. 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 and regulations, 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. 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. The Company has entered into purchase agreements primarily for various key raw materials at market related prices, all made in the normal course of business. The commitments include both fixed and variable price provisions. Raw material prices as of June 30, 2019 were used for commitments with variable pricing. The purchase commitments covered by these agreements aggregate to $300.5 million as of June 30, 2019 . Of this amount $212.7 million relates to fiscal year 2020, $42.6 million to fiscal year 2021, $30.1 million to fiscal year 2022 and $15.1 million to fiscal year 2023. |
Operating Leases
Operating Leases | 12 Months Ended |
Jun. 30, 2019 | |
Leases, Operating [Abstract] | |
Operating Leases | Operating Leases The Company leases certain facilities and equipment under operating leases. Total rent expense was $16.1 million , $13.4 million and $13.2 million for the fiscal years ended June 30, 2019 , 2018 and 2017 , respectively. Future minimum payments for noncancelable operating leases in effect at June 30, 2019 are: $12.7 million in fiscal year 2020 , $10.4 million in fiscal year 2021 , $8.3 million in fiscal year 2022 , $6.6 million in fiscal year 2023 , $5.0 million in fiscal year 2024 and $23.5 million thereafter. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value hierarchy has three levels based on the inputs used to determine fair value. Level 1 refers to quoted prices in active markets for identical assets or liabilities. Level 2 refers to observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 refers to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following tables present the Company’s assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy: June 30, 2019 Fair Value Measurements ($ in millions) Level 2 Total Assets: Derivative financial instruments $ 12.5 $ 12.5 Liabilities: Derivative financial instruments $ 28.0 $ 28.0 June 30, 2018 Fair Value Measurements ($ in millions) Level 2 Total Assets: Marketable securities Municipal auction rate securities $ 2.9 $ 2.9 Derivative financial instruments 35.2 35.2 Total assets $ 38.1 $ 38.1 Liabilities: Derivative financial instruments $ 3.4 $ 3.4 The Company’s derivative financial instruments consist of commodity forward contracts, foreign currency forward contracts, interest rate swaps and forward 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 16 . 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: June 30, 2019 June 30, 2018 ($ in millions) Carrying Fair Carrying Fair Long-term debt $ 550.6 $ 560.6 $ 545.7 $ 558.3 Company-owned life insurance $ 17.9 $ 17.9 $ 16.4 $ 16.4 The fair values of long-term debt as of June 30, 2019 and June 30, 2018 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. 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. For purposes of performing Step 1 of goodwill impairment testing, the Company uses certain nonrecurring fair value measurements using significant unobservable inputs (Level 3). Fair value of each reporting unit for purposes of the goodwill impairment test is based on a weighting of an income approach and a market approach. Under the income approach, fair value is determined based on a discounted cash flow analysis that uses estimates of cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. Under the market approach, a market-based value is derived by relating multiples for earnings and cash flow measures for a group of comparable public companies to the same measure for each reporting unit to estimate fair value. The assumptions used by the Company to determine fair value of the reporting units are similar to those that would be used by market participants performing valuations. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company has two share-based compensation plans: Amended and Restated Stock-Based Incentive Compensation Plan for Officers and Key Employees (the “Omnibus Plan”) and the Stock-Based Compensation Plan for Non-Employee Directors (“Director's Plan”). The Company recognizes compensation cost based on the fair value of the awards on the date of grant. The compensation cost is recognized over the requisite service period of the award, which is generally the shorter of the vesting period that the holder is required to provide service, or the period from the grant date to the date on which the employee is eligible to retire. Upon retirement, as defined in the Company’s share-based compensation plans, outstanding awards are subject to certain accelerated vesting terms. Awards granted under the share-based compensation plans are paid from shares held in treasury and newly issued shares. The total compensation cost that has been charged against income related to these share-based compensation plans was $17.6 million , $17.6 million and $13.0 million for the years ended June 30, 2019 , 2018 and 2017 , respectively. Omnibus Plan The Omnibus Plan provides that the Board of Directors or a designated committee may grant stock options, restricted stock and restricted stock units, and determine the terms and conditions of each grant. The Omnibus Plan provides the Chief Executive Officer with limited authority to grant awards. As of June 30, 2019 , 2,132,417 shares were available for awards which may be granted under this plan. Director’s Plan The Director’s Plan provides for the granting of stock options and stock units to non-employee directors. As of June 30, 2019 , 518,801 shares were available for awards which may be granted under this plan. Stock Options (all plans) Stock options granted under the plans above are granted with an exercise price equal to at least the fair market value of the Company’s common stock on the date of grant. The options are typically exercisable after one to three years of service and expire no longer than ten years from the grant date. The fair value of stock options awarded in fiscal years 2019 , 2018 and 2017 was estimated on the date of each grant using a Black-Scholes option pricing model with the following weighted-average assumptions: Years Ended June 30, 2019 2018 2017 Expected volatility 36 % 35 % 37 % Dividend yield 1.3 % 1.8 % 1.8 % Risk-free interest rate 2.8 % 1.8 % 1.1 % Expected term (in years) 5.0 5.0 5.0 The assumptions are based on multiple factors, including historical exercise patterns of employees in relatively homogeneous groups with respect to exercise and post-vesting employment termination behaviors, expected future exercising patterns for these same homogeneous groups and the implied volatility of our stock price based on historical performance for the same expected term of the options granted. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of each grant. Number of Weighted Weighted Aggregate Outstanding at June 30, 2016 1,701,502 $ 43.35 Granted 907,141 $ 38.98 Exercised (95,289 ) $ 23.21 Forfeited (80,926 ) $ 44.35 Expired (40,000 ) $ 55.12 Outstanding at June 30, 2017 2,392,428 $ 42.27 Granted 252,545 $ 41.27 Exercised (362,571 ) $ 35.70 Forfeited (25,915 ) $ 45.27 Expired (33,226 ) $ 63.12 Outstanding at June 30, 2018 2,223,261 $ 42.88 Granted 124,977 $ 57.92 Exercised (96,514 ) $ 39.93 Forfeited (125,435 ) $ 40.17 Outstanding at June 30, 2019 2,126,289 $ 44.06 6.1 years $ 12.4 Exercisable at June 30, 2019 1,258,605 $ 45.66 5.1 years $ 5.8 Outstanding and Exercisable Options Exercise Price Number Outstanding at June 30, 2019 Weighted Weighted Number Exercisable at June 30, 2019 Weighted $17.29 - $20.00 14,166 0.1 $ 17.29 14,166 $ 17.29 $20.01 - $30.00 167 0.5 $ 24.62 167 $ 24.62 $30.01 - $40.00 918,282 6.7 $ 38.41 296,488 $ 37.20 $40.01 - $50.00 513,090 6.4 $ 41.94 375,876 $ 42.39 $50.01 - $59.53 680,584 5.3 $ 53.84 571,908 $ 52.90 2,126,289 $ 44.06 1,258,605 $ 45.66 The weighted average grant date fair value of options awarded during fiscal years 2019 , 2018 and 2017 was $18.35 , $11.65 and $10.81 , respectively. Share-based compensation charged against income related to stock options for the years ended June 30, 2019 , 2018 and 2017 was $3.6 million , $5.0 million and $4.7 million , respectively. As of June 30, 2019 , $1.4 million of compensation cost related to nonvested stock options will be recognized over a weighted average remaining life of 1.1 years. Of the options outstanding at June 30, 2019 , 1,921,219 relate to the Omnibus Plan and 205,070 relate to the Directors’ Plan. Restricted Stock Unit Awards (Omnibus Plan) Restricted stock unit awards are granted to employees with performance and/or service conditions. Earned restricted stock unit awards receive non-forfeitable cash dividends during the restriction period. The fair value of the restricted stock unit awards is determined based on the close price of the Company’s stock on the grant date. Performance-based restricted stock unit awards are earned dependent upon how certain performance goals are achieved during a specified performance period according to the terms determined at the date of the grant. These shares typically vest zero to two years from the date of the attainment of the specified performance goals. Compensation cost is determined and charged to expense beginning in the performance period through the vesting period. Time-based restricted stock unit awards typically vest zero to three years from the date of grant. Compensation cost related to time-based stock unit awards is recognized over the vesting period of the award. Amounts charged to compensation expense for restricted stock unit awards were $9.8 million , $8.8 million and $5.0 million for the years ended June 30, 2019 , 2018 and 2017 , respectively. As of June 30, 2019 , $6.5 million of compensation cost related to restricted stock unit awards remains to be recognized over a weighted average remaining life of 1.0 years. Number of Awards Weighted Average Grant Date Fair Value Restricted Balance at June 30, 2016 188,469 $ 35.69 Time-based granted 231,195 $ 38.82 Performance-based granted 55,478 $ 36.18 Vested (44,873 ) $ 34.24 Forfeited (37,792 ) $ 38.80 Restricted Balance at June 30, 2017 392,477 $ 37.47 Time-based granted 138,718 $ 41.49 Performance-based granted 124,432 $ 50.99 Vested (62,215 ) $ 35.35 Forfeited (21,384 ) $ 39.48 Restricted Balance at June 30, 2018 572,028 $ 41.54 Time-based granted 132,421 $ 57.92 Vested (175,554 ) $ 38.39 Forfeited (54,560 ) $ 41.62 Restricted Balance at June 30, 2019 474,335 $ 44.66 The Company granted a new class of performance-based awards in fiscal year 2019 within the Omnibus Plan. The awards are granted at a target number of shares. These awards are earned dependent upon how certain performance goals are achieved during a specified performance period according to the terms determined at the date of the grant. The actual number of shares awarded may range from a minimum of 0 percent of the target shares to a maximum of 200 percent of the target shares. Participants do not have any rights to dividends (or equivalents) during the performance period. These shares typically vest on the date of the attainment of the specified performance goals. Compensation cost is determined and charged to expense beginning in the performance period through the vesting period. Compensation cost related to these awards granted in fiscal year 2019 was $1.4 million for the fiscal year ended June 30, 2019. Total Stockholder Return Awards The Company granted Total Stockholder Return (“TSR”) awards in fiscal years 2018 and 2017 . The TSR awards are granted at a target number of shares. The TSR awards are earned based on the Company’s total stockholder return compared to the total stockholder returns of the Russell RSCC Materials & Processing Growth Index at the end of a three -year period. The actual number of shares awarded may range from a minimum of 0 percent of the target shares to a maximum of 200 percent of the target shares. Participants do not have any rights to dividends (or equivalents) during the performance period. The fair value of the TSR awards was estimated using Monte Carlo valuation models. Compensation cost related to TSR awards recognized in fiscal years 2019 , 2018 and 2017 was $1.7 million , $2.8 million and $2.0 million , respectively. Director Stock Units According to the provisions of the Director’s Plan, on the date of each annual stockholders’ meeting or on such other regularly scheduled date as the Board of Directors may determine from time to time in light of the Company’s prevailing practices for the grant of equity awards to employees, each Director shall be granted, in place of cash compensation, a number of stock units determined by dividing 50 percent of the Director’s annual retainer by the fair market value of the Company’s common stock on that date. These stock units vest as to one-quarter of the units for every three months of service following the grant date and are fully vested on the first anniversary of the grant date. At the Director’s election, the remaining 50 percent of the annual retainer and 100 percent of committee chair fees may be paid in stock units in lieu of cash. These units are immediately vested. In addition to the grant of retainer stock units described above, each Director may be granted annually an additional award of stock units as the Board may determine by resolution. These stock units vest as to one-quarter of the units for every three months of service following the grant date and are fully vested on the first anniversary of the grant date. Additional units are credited to each Director on a quarterly basis to reflect dividend equivalents on the Company’s common stock. In the case of separation from service due to death or disability, all stock units shall immediately vest. Following a Director’s separation from service, or such other elected distribution date or event, the number of stock units credited to the Director’s account will be converted to an equivalent number of the Company’s common stock. Number of Units Weighted Average Grant Date Fair Value Outstanding at June 30, 2016 334,943 $ 38.64 Granted 27,285 $ 39.69 Distributed (30,022 ) $ 34.19 Dividend equivalents 6,347 $ — Outstanding at June 30, 2017 338,553 $ 42.47 Granted 21,813 $ 49.14 Distributed (35,489 ) $ 35.22 Dividend equivalents 4,869 $ — Outstanding at June 30, 2018 329,746 $ 33.05 Granted 21,158 $ 56.00 Distributed (32,352 ) $ 39.01 Dividend equivalents 6,003 $ — Outstanding at June 30, 2019 324,555 $ 35.25 Compensation cost is determined using the grant date fair value and charged to expense over the vesting period of one year and amounted to $1.1 million , $1.0 million and $1.2 million for the years ended June 30, 2019 , 2018 and 2017 , respectively. As of June 30, 2019 , $0.3 million of compensation cost related to director stock units remains to be recognized over a weighted average remaining life of 0.3 years. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Jun. 30, 2019 | |
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 (“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 June 30, 2019 , the Company had forward contracts to purchase 19.0 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 affects earnings or it becomes probable that the forecasted transaction will not occur. For the years ended June 30, 2019 , 2018 and 2017 net gains of $0.3 million , $0.3 million , $0.3 million , respectively, were recorded as a reduction to interest expense. These amounts represent the impact of previously terminated swaps which are being amortized over the remaining term of the underlying debt. 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 June 30, 2019 , 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. 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 June 30, 2019 and 2018 , the total notional amount of floating interest rate contracts was $150.0 million and $150.0 million , respectively. For the years ended June 30, 2019 , 2018 and 2017 , net losses of $0.2 million were recorded as an increase to interest expense and net gains of $0.4 million and $1.8 million , were recorded as a reduction to interest expense, respectively. The fair value and location of outstanding derivative contracts recorded in the accompanying consolidated balance sheets were as follows as of June 30, 2019 and 2018 : June 30, 2019 Interest Rate Swaps Foreign Currency Contracts Commodity Contracts Total Derivatives Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 0.3 $ 0.6 $ 3.8 $ 4.7 Other assets 1.6 0.2 6.0 7.8 Total asset derivatives $ 1.9 $ 0.8 $ 9.8 $ 12.5 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ — $ 16.7 $ 16.7 Other liabilities — — 11.3 11.3 Total liability derivatives $ — $ — $ 28.0 $ 28.0 June 30, 2018 Interest Rate Swaps Foreign Currency Contracts Commodity Contracts Total Derivatives Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 0.1 $ 0.4 $ 15.3 $ 15.8 Other assets — — 19.4 19.4 Total asset derivatives $ 0.1 $ 0.4 $ 34.7 $ 35.2 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ 0.1 $ — $ 0.1 Other liabilities 2.9 — 0.4 3.3 Total liability derivatives $ 2.9 $ 0.1 $ 0.4 $ 3.4 Substantially all of the Company’s 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 $14.9 million and total liability derivatives would have been $30.4 million as of June 30, 2019. According to the provisions of the Company’s derivative arrangements, in the event that the fair value of outstanding derivative positions with certain counterparties exceeds certain thresholds, the Company may be required to issue cash collateral to the counterparties. As of June 30, 2019 the Company had no cash collateral held by counterparties. The Company is exposed to credit loss in the event of nonperformance by counterparties on its derivative instruments as well as credit or performance risk with respect to its customer commitments to perform. Although nonperformance is possible, the Company does not anticipate nonperformance by any of the parties. In addition, various master netting arrangements are in place with counterparties to facilitate settlements of gains and losses on these contracts. Cash Flow Hedges For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings or it becomes probable the forecasted transactions will not occur. The following is a summary of the gains (losses) related to cash flow hedges recognized during the years ended June 30, 2019 , 2018 and 2017 : Amount of Gain (Loss) Recognized in AOCI on Derivatives ($ in millions) 2019 2018 2017 Derivatives in Cash Flow Hedging Relationship: Commodity contracts $ 45.4 $ 41.4 $ 9.4 Foreign exchange contracts (0.9 ) (0.4 ) (0.1 ) Total $ 44.5 $ 41.0 $ 9.3 Amount of Gain (Loss) Reclassified from AOCI into Income ($ in millions) Location of Gain (Loss) 2019 2018 2017 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ 5.1 $ 3.8 $ (22.8 ) Foreign exchange contracts Net sales 1.0 (1.0 ) 0.5 Forward interest rate swaps Interest expense 0.4 0.4 0.4 Total $ 6.5 $ 3.2 $ (21.9 ) The following is a summary of total amounts presented in the consolidated statements of income in which the effects of cash flow and fair value hedges are recorded during the years ended June 30, 2019 and 2018: Year Ended June 30, 2019 Year Ended June 30, 2018 ($ in millions) Net Sales Cost of Sales Interest Expense Net Sales Cost of Sales Interest Expense Total amounts presented in the consolidated statements of income in which the effects of cash flow and fair value hedges are recorded $ 2,380.2 $ 1,935.4 $ 26.0 $ 2,157.7 $ 1,775.4 $ 28.3 Gain (loss) on Derivatives in Cash Flow Hedging Relationship: Commodity contracts Amount of gain reclassified from AOCI to income — 5.1 — — 3.8 — Foreign currency forward contracts Amount of gain (loss) reclassified from AOCI to income 1.0 — — (1.0 ) — — Interest rate swap agreements Amount of gain reclassified from AOCI to income — — 0.4 — — 0.4 Gain (Loss) on Derivatives in Fair Value Hedging Relationship: Interest rate swap agreements Hedged Item — — 0.2 — — (0.4 ) Derivatives designated as hedging instruments — — (0.2 ) — — 0.4 Total gain (loss) $ 1.0 $ 5.1 $ 0.4 $ (1.0 ) $ 3.8 $ 0.4 The Company estimates that $8.4 million of net derivative losses included in AOCI as of June 30, 2019 will be reclassified into earnings within the next twelve months. No significant cash flow hedges were discontinued during the year ended June 30, 2019 . As of June 30, 2019 , and June 30, 2018 , the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges of interest rate risk: Carrying amount of the hedged liabilities Cumulative amount of fair value loss (gain) in the carrying amount of the hedged liabilities ($ in millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Line item in the consolidated balance sheets in which the hedged item is included: Long-Term Debt $ 151.6 $ 147.1 $ 1.6 $ (2.9 ) The changes in AOCI associated with derivative hedging activities during the years ended June 30, 2019 , 2018 and 2017 were as follows: ($ in millions) 2019 2018 2017 Balance, beginning $ 23.8 $ (2.3 ) $ (21.8 ) Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings (1.0 ) — — Current period changes in fair value, net of tax (32.7 ) 26.9 5.8 Reclassification to earnings, net of tax (4.9 ) (0.8 ) 13.7 Balance, ending $ (14.8 ) $ 23.8 $ (2.3 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes for the Company’s domestic and foreign operations was as follows: Years Ended June 30, ($ in millions) 2019 2018 2017 Domestic $ 204.2 $ 140.3 $ 56.0 Foreign 11.8 19.9 14.2 Income before income taxes $ 216.0 $ 160.2 $ 70.2 The provision (benefit) for income taxes from continuing operations consisted of the following: Years Ended June 30, ($ in millions) 2019 2018 2017 Current: Federal $ 23.2 $ 22.6 $ (24.5 ) State 4.4 3.5 (1.1 ) Foreign 4.9 6.7 7.2 Total current 32.5 32.8 (18.4 ) Deferred: Federal 13.1 (66.0 ) 38.7 State 3.6 4.8 3.5 Foreign (0.2 ) 0.1 (0.6 ) Total deferred 16.5 (61.1 ) 41.6 Total income tax expense (benefit) $ 49.0 $ (28.3 ) $ 23.2 The following is a reconciliation of income taxes computed at the U.S. Federal income tax rate to the Company’s effective income tax rates: Years Ended June 30, (% of pre-tax income) 2019 2018 2017 Statutory federal income tax rate 21.0 % 28.1 % 35.0 % State income taxes, net of federal tax benefit 3.0 2.6 2.0 Domestic manufacturing deduction — (1.5 ) (3.0 ) Research and development tax credit (1.1 ) (1.4 ) (3.9 ) Adjustments of prior years' income taxes (0.9 ) 0.2 3.3 Remeasurement of U.S. deferred taxes 0.1 (49.3 ) — Transition tax on foreign earnings (0.1 ) 3.1 — Other, net 0.7 0.5 (0.4 ) Effective income tax rate 22.7 % (17.7 )% 33.0 % Deferred taxes are recorded for temporary differences between the carrying amounts of assets and liabilities and their tax bases. The significant components of deferred tax assets and liabilities that are recorded in the consolidated balance sheets are summarized in the table below. A valuation allowance is required when it is more likely than not that all or a portion of a deferred tax asset will not be realized. As of June 30, 2019, the Company had state net operating loss carryforwards of $337.6 million expiring between 2020 and 2039. A significant portion of the state net operating loss carryforwards are subject to an annual limitation that, under current law, is likely to limit future tax benefits to approximately $3.3 million . Valuation allowances increased by $0.7 million during fiscal year 2019 primarily due to increases in net operating losses incurred in certain tax jurisdictions for which no tax benefit was recognized. June 30, ($ in millions) 2019 2018 Deferred tax assets: Pensions $ 86.9 $ 66.8 Postretirement provisions 35.7 33.7 Net operating loss carryforwards 28.8 26.5 Derivatives and hedging activities 4.1 — Other 32.1 29.4 Gross deferred tax assets 187.6 156.4 Valuation allowances (24.6 ) (23.9 ) Total deferred tax assets 163.0 132.5 Deferred tax liabilities: Depreciation (249.5 ) (235.2 ) Intangible assets (11.3 ) (11.9 ) Inventories (36.1 ) (30.5 ) Derivatives and hedging activities (0.3 ) (8.7 ) Other (4.3 ) (3.5 ) Total deferred tax liabilities (301.5 ) (289.8 ) Deferred tax liabilities, net $ (138.5 ) $ (157.3 ) The Company does no t have unrecognized tax benefits as of June 30, 2019, 2018 and 2017. The Company recognizes interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. All years prior to fiscal year 2013 have been settled with the Internal Revenue Service and with most significant state, local and foreign tax jurisdictions. In December 2017, an Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (the “Act”) was enacted. The Act included provisions that reduced the federal statutory income tax rate from 35 percent to 21 percent, created a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings (i.e. transition tax), and changed certain business deductions including allowing for immediate expensing of certain qualified capital expenditures and limitations on deductions of interest expense. The SEC staff issued guidance on income tax accounting for the Act which allowed companies to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. In accordance with this guidance, during fiscal year 2018, we recorded a provisional tax charge of $5.0 million for the transition tax and a provisional tax benefit of $74.6 million for the remeasurement of deferred tax assets and liabilities. During fiscal year 2019, we recorded a discrete tax benefit of $0.2 million in measurement period adjustments for the transition tax offset by a discrete tax charge of $0.2 million for the remeasurement of deferred tax assets and liabilities. Our accounting for the impact of the Act was completed as of the period ending December 31, 2018. Under the Act, the transition tax is being paid over an eight year period beginning in fiscal year 2019. The Act also established new tax provisions that became effective in fiscal year 2019, including but not limited to eliminating the corporate alternative minimum tax, creating the base erosion anti-abuse tax (“BEAT”), establishing new limitations on deductible interest expense and certain executive compensation, creating a new provision designed to tax global intangible low-tax income (“GILTI”) and generally eliminating U.S. federal income taxes on dividends from foreign subsidiaries. The Company has made an accounting policy election to treat the tax effect of GILTI as a current period expense when incurred. Undistributed earnings of our foreign subsidiaries, totaling $77.8 million were considered permanently reinvested. Following enactment of the Act, the repatriation of cash to the U.S. is generally no longer taxable for federal income tax purposes. If these earnings were to be repatriated, approximately $0.3 million of tax expense would be incurred. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net Other income (expense), net consists of the following: Years Ended June 30, ($ in millions) 2019 2018 2017 Unrealized gains on company owned life insurance contracts and investments held in rabbi trusts $ 0.8 $ 1.5 $ 1.7 Interest income 0.1 0.3 0.3 Foreign exchange (0.4 ) (0.7 ) (0.4 ) Pension earnings, interest and deferrals (0.1 ) (2.1 ) (23.8 ) Pension curtailment — — (0.5 ) Other 0.2 0.2 1.2 Total other income (expense), net $ 0.6 $ (0.8 ) $ (21.5 ) |
Segment Information, Geographic
Segment Information, Geographic and Product Data | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information, Geographic and Product Data | Segment Information, Geographic and Product Data 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 CalRAM business, the LPW Technology Ltd. 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 loss on divestiture of business 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 “Other income (expense), net.” On a consolidated basis, one customer, Arconic Inc., accounted for approximately 11 percent , 12 percent and 11 percent of net sales for the years ended June 30, 2019, 2018 and 2017, respectively. Approximately 12 percent of the accounts receivable outstanding at June 30, 2019 is due from one customer, Arconic Inc. No single customer accounted for 10 percent or more of the accounts receivable outstanding at June 30, 2018. Segment Data Years Ended June 30, ($ in millions) 2019 2018 2017 Net Sales: Specialty Alloys Operations $ 1,967.3 $ 1,803.8 $ 1,461.6 Performance Engineered Products 479.8 429.7 366.6 Intersegment (66.9 ) (75.8 ) (30.6 ) Consolidated net sales $ 2,380.2 $ 2,157.7 $ 1,797.6 Years Ended June 30, ($ in millions) 2019 2018 2017 Operating Income: Specialty Alloys Operations $ 282.2 $ 232.4 $ 172.3 Performance Engineered Products 30.0 26.1 8.5 Corporate costs (including loss on divestiture of business) (72.7 ) (66.4 ) (60.8 ) Intersegment 1.9 (2.8 ) 1.5 Consolidated operating income $ 241.4 $ 189.3 $ 121.5 Years Ended June 30, ($ in millions) 2019 2018 2017 Depreciation and Amortization: Specialty Alloys Operations $ 95.2 $ 93.3 $ 94.0 Performance Engineered Products 22.2 20.2 20.6 Corporate 4.9 3.9 4.0 Intersegment (0.8 ) (0.8 ) (0.8 ) Consolidated depreciation and amortization $ 121.5 $ 116.6 $ 117.8 Years Ended June 30, ($ in millions) 2019 2018 2017 Capital Expenditures: Specialty Alloys Operations $ 92.7 $ 63.6 $ 52.2 Performance Engineered Products 51.7 31.6 17.0 Corporate 37.1 41.6 29.7 Intersegment (1.2 ) (1.8 ) (0.4 ) Consolidated capital expenditures $ 180.3 $ 135.0 $ 98.5 June 30, ($ in millions) 2019 2018 Total Assets: Specialty Alloys Operations $ 2,349.2 $ 2,312.1 Performance Engineered Products 664.8 513.6 Corporate 192.5 193.2 Intersegment (18.7 ) (11.9 ) Consolidated total assets $ 3,187.8 $ 3,007.0 Geographic Data Years Ended June 30, ($ in millions) 2019 2018 2017 Net Sales: (a) United States $ 1,606.7 $ 1,429.4 $ 1,198.3 Europe 387.2 383.0 349.6 Asia Pacific 196.3 174.8 127.2 Mexico 81.6 61.7 48.5 Canada 67.8 65.7 47.7 Other 40.6 43.1 26.3 Consolidated net sales $ 2,380.2 $ 2,157.7 $ 1,797.6 (a) Net sales were attributed to countries based on the location of the customer. June 30, ($ in millions) 2019 2018 Long-lived assets: United States $ 1,335.6 $ 1,286.4 Europe 17.0 3.9 Asia Pacific 6.8 15.4 Canada 5.5 6.3 Mexico 1.3 1.4 Consolidated long-lived assets $ 1,366.2 $ 1,313.4 |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Jun. 30, 2019 | |
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 years ended June 30, 2019 and 2018 were as follows: ($ in millions) (a) Cash flow hedging items Pension and other postretirement benefit plan items Unrealized losses on available-for-sale securities Foreign currency items Total Balance at June 30, 2018 $ 23.8 $ (220.4 ) $ (0.3 ) $ (42.9 ) $ (239.8 ) Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings (1.0 ) — — — (1.0 ) Other comprehensive (loss) income before reclassifications (32.7 ) (79.7 ) 0.3 (0.8 ) (112.9 ) Amounts reclassified from AOCI (b) (4.9 ) 6.8 — — 1.9 Net current-period other comprehensive (loss) income (38.6 ) (72.9 ) 0.3 (0.8 ) (112.0 ) Balance at June 30, 2019 $ (14.8 ) $ (293.3 ) $ — $ (43.7 ) $ (351.8 ) ($ in millions) (a) Cash flow hedging items Pension and other postretirement benefit plan items Unrealized losses on available-for-sale securities Foreign currency items Total Balance at June 30, 2017 $ (2.3 ) $ (299.0 ) $ (0.3 ) $ (41.5 ) $ (343.1 ) Other comprehensive income (loss) before reclassifications 26.9 69.7 — (1.4 ) 95.2 Amounts reclassified from AOCI (b) (0.8 ) 8.9 — — 8.1 Net current-period other comprehensive income (loss) 26.1 78.6 — (1.4 ) 103.3 Balance at June 30, 2018 $ 23.8 $ (220.4 ) $ (0.3 ) $ (42.9 ) $ (239.8 ) (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 years ended June 30, 2019 and 2018 : Amount Reclassified from AOCI Years Ended June 30, ($ in millions) (a) Location of gain 2019 2018 Details about AOCI Components Cash flow hedging items Commodity contracts Cost of sales $ 5.1 $ 1.8 Foreign exchange contracts Net sales 1.0 (1.0 ) Forward interest rate swaps Interest expense 0.4 0.4 Total before tax 6.5 1.2 Tax expense (1.6 ) (0.4 ) Net of tax $ 4.9 $ 0.8 Amortization of pension and other postretirement benefit plan items Net actuarial loss (b) $ (12.0 ) $ (16.4 ) Prior service cost (b) 3.1 3.1 Total before tax (8.9 ) (13.3 ) Tax benefit 2.1 4.4 Net of tax $ (6.8 ) $ (8.9 ) (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 11 for additional details). |
Supplemental Data
Supplemental Data | 12 Months Ended |
Jun. 30, 2019 | |
Supplemental Data | |
Supplemental Data | Supplemental Data The following are additional required disclosures and other material items: Years Ended June 30, ($ in millions) 2019 2018 2017 Cost Data: Repairs and maintenance costs $ 120.4 $ 108.0 $ 99.1 Cash Flow Data: Noncash investing and financing activities: Noncash purchases of property, plant, equipment and software $ 16.1 $ 16.5 $ 13.7 Cash paid (received) during the year for: Interest payments, net $ 27.6 $ 29.5 $ 27.7 Income tax payments (refunds), net $ 27.5 $ 33.7 $ (33.3 ) |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | SUPPLEMENTARY DATA Quarterly Financial Data (Unaudited) Quarterly sales and earnings results are normally influenced by seasonal factors. Historically, the first two fiscal quarters (three months ending September 30 and December 31) are typically the lowest principally because of annual plant vacation and maintenance shutdowns by the Company and by many of its customers. However, the timing of major changes in the general economy or the markets for certain products can alter this pattern. ($ in millions) First Second Third Fourth Results of Operations Fiscal Year 2019 Net sales $ 572.4 $ 556.5 $ 609.9 $ 641.4 Gross profit $ 91.7 $ 107.0 $ 123.2 $ 122.9 Operating income $ 45.0 $ 55.4 $ 73.2 $ 67.9 Net income $ 31.5 $ 35.5 $ 51.1 $ 48.9 Fiscal Year 2018 Net sales $ 479.8 $ 487.8 $ 572.2 $ 618.0 Gross profit $ 85.6 $ 85.7 $ 96.1 $ 114.9 Operating income $ 42.2 $ 41.4 $ 45.7 $ 60.0 Net income $ 23.4 $ 92.1 $ 30.2 $ 42.8 During the quarter ended December 31, 2017, the Company recorded an income tax benefit. See Note 17 , Income Taxes to Notes to Consolidated Financial Statements included in Item 8. “Financial Statements and Supplementary Data”. (per share amount) First Quarter Second Quarter Third Quarter Fourth Quarter Earnings per common share Fiscal Year 2019 Basic earnings $ 0.66 $ 0.73 $ 1.06 $ 1.01 Diluted earnings $ 0.65 $ 0.73 $ 1.05 $ 1.00 Fiscal Year 2018 Basic earnings $ 0.49 $ 1.93 $ 0.63 $ 0.90 Diluted earnings $ 0.49 $ 1.92 $ 0.63 $ 0.88 (shares in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Weighted average common shares outstanding Fiscal Year 2019 Basic 47.6 47.7 47.7 47.7 Diluted 48.2 48.0 48.1 48.1 Fiscal Year 2018 Basic 47.1 47.2 47.2 47.4 Diluted 47.3 47.6 47.7 48.0 |
SCHEDULE II. VALUATION AND QUAL
SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS ($ in millions) Column A Column B Column C Additions Column D Column E Description Balance at Beginning of Period Charged to Costs & Expenses Charged to Other Accounts Deductions Balance at End of Period Year Ended June 30, 2019 Allowance for doubtful accounts receivable $ 2.6 $ 1.7 $ (0.6 ) $ — $ 3.7 Deferred tax valuation allowance $ 23.9 $ 0.5 $ 0.2 $ — $ 24.6 Year Ended June 30, 2018 Allowance for doubtful accounts receivable $ 2.6 $ 0.1 $ (0.1 ) $ — $ 2.6 Deferred tax valuation allowance $ 18.5 $ 4.9 $ 0.5 $ — $ 23.9 Year Ended June 30, 2017 Allowance for doubtful accounts receivable $ 4.1 $ (1.0 ) $ — $ (0.5 ) $ 2.6 Deferred tax valuation allowance $ 17.7 $ 0.8 $ — $ — $ 18.5 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the Company and all majority-owned subsidiaries. All significant intercompany accounts and transactions are eliminated. Investments in companies in which the Company exercises significant influence, but which it does not control (generally a 20 to 50 percent ownership interest), are accounted for by the equity method of accounting and the Company’s share of their income or loss is included in other income (expense), net in the consolidated statements of income. |
Revenue Recognition | Revenue Recognition Revenue, net of related discounts, rebates, returns and allowances of $22.6 million , $26.5 million and $23.8 million for the years ended June 30, 2019 , 2018 and 2017 , respectively, is recognized when performance obligations are satisfied under the terms of a customer order or contract. This is generally determined when title, ownership and risk of loss has transferred to the customer upon shipment or delivery of a product or when the service has been performed. These criteria are generally met upon shipment or delivery of the product based on the applicable shipping terms. Shipping terms may vary for products shipped outside the United States depending on the mode of transportation, the country where the material is shipped and any agreements made with the customers. Freight and Handling Fees and Costs Freight and handling costs billed separately to customers are included as part of net sales, and freight and handling costs expensed are included as part of cost of sales on the consolidated statements of income. |
Research and Development | Research and Development Research and development expenditures, which amounted to $23.3 million , $19.3 million and $16.9 million in fiscal years 2019 , 2018 and 2017 , respectively, are expensed as incurred and are generally reported in cost of sales in the consolidated statements of income. The research and development expenditures consist principally of salaries and benefits, building costs, utilities and administrative expenses. Substantially all development costs are related to developing new products or designing significant improvements to existing products or processes. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of highly liquid instruments with original maturities of three months or less. Cash equivalents are stated at cost, which approximates market. |
Accounts Receivable | Accounts Receivable Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of outstanding amounts. Trade credit is extended based upon periodic evaluation of each customer’s ability to perform its obligations. The Company determines accounts receivable allowances based on an aging of accounts and a review of specific accounts identified as collection risks. The Company does not require collateral to secure accounts receivable. |
Inventories | Inventories Inventories are valued at the lower of cost or market. Cost for inventories is principally determined by the LIFO method. The Company also uses the FIFO and average cost methods. |
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation Fixed assets are stated at historical cost less accumulated depreciation. Depreciation for financial reporting purposes is computed by the straight-line method over the estimated useful lives of the assets. Upon disposal, assets and related depreciation are removed from the accounts and the differences between the net amounts and proceeds from disposal are generally included in cost of goods sold in the consolidated statements of income. |
Computer Software and Amortization | Computer Software and Amortization Computer software is included in other assets on the consolidated balance sheets and is amortized for financial reporting purposes on a straight-line basis over the respective estimated useful lives ranging from 3 to 7 years. |
Goodwill | Goodwill Goodwill, net of accumulated impairment losses, representing the excess of the cost over the net tangible and identifiable intangible assets of acquired businesses, is stated at cost. Goodwill is not amortized but instead is annually tested for impairment as of June 30, or more frequently if events or circumstances indicate that the carrying amount of goodwill may be impaired. Such events or circumstances include a decline in general economic conditions, adverse changes in the industry and markets, poor financial performance affecting earnings and cash flows and a trend of negative or declining cash flows over multiple periods. Potential impairment is identified by comparing the fair value of a reporting unit to its carrying value, including goodwill. The fair value is estimated using discounted cash flows and the use of market multiples valuation techniques. These valuation techniques require the use of estimates and assumptions related to projected revenue growth rates, operating results, capital expenditures and working capital levels as well as the cost of capital. The cash flow forecasts include significant judgments and assumptions relating to revenue growth rates. If the carrying value of the reporting unit exceeds its fair value, any impairment loss is measured by comparing the carrying value of the reporting unit’s goodwill to its implied fair value. For purposes of performing Step 1 of goodwill impairment testing, the Company uses certain nonrecurring fair value measurements using significant unobservable inputs (Level 3). Fair value of each reporting unit for purposes of the goodwill impairment test is based on a weighting of an income approach and a market approach. Under the income approach, fair value is determined based on a discounted cash flow analysis that uses estimates of cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. Under the market approach, a market-based value is derived by relating multiples for earnings and cash flow measures for a group of comparable public companies to the same measure for each reporting unit to estimate fair value. The assumptions used by the Company to determine fair value of the reporting units are similar to those that would be used by market participants performing valuations. |
Intangible assets | Intangible assets The costs of intangible assets, consisting principally of trademarks, trade names, non-compete arrangements, technology, patents and customer relationships are amortized on a straight-line basis over the estimated useful lives ranging from 5 to 30 years. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including property, plant, equipment and intangible assets, subject to amortization are reviewed for impairment and written down to fair value whenever events or changes in circumstances indicate that the carrying value may not be recoverable through future undiscounted cash flows. The amount of the impairment loss is the excess of the carrying amount of the impaired assets over the fair value of the assets based upon discounted future cash flows. |
Environmental Expenditures | Environmental Expenditures Environmental expenditures that pertain to current operations or to future revenues are expensed or capitalized consistent with the Company’s capitalization policy for property, plant and equipment. Expenditures that result from the remediation of an existing condition caused by past operations and that do not contribute to current or future revenues are expensed. Liabilities are recognized for remedial activities when the remediation is probable and the cost can be reasonably estimated. Most estimated liabilities are not discounted to present value due to the uncertainty as to the timing and duration of expected costs. |
Derivative Financial Instruments | Derivative Financial Instruments All derivative financial instruments are recorded on the balance sheet at their fair value and changes in fair value are recorded each period in current earnings or other comprehensive income. The Company enters into derivative financial instruments to hedge certain anticipated transactions, firm commitments or assets and liabilities denominated in foreign currencies. In addition, the Company utilizes interest rate swaps to convert fixed rate debt to floating rate debt. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of international operations are translated into U.S. dollars at exchange rates in effect at year-end, and their income statements are translated at the average monthly exchange rates prevailing during the year. The resulting translation gains and losses are recorded each period as a component of accumulated other comprehensive income (loss) until the international entity is sold or liquidated. Gains and losses from transactions denominated in foreign currencies are reported in other income (expense), net in the consolidated statements of income. |
Income Taxes | Income Taxes Deferred income taxes are recognized by applying enacted statutory tax rates, applicable to future years, to temporary differences between the tax basis and financial statement carrying values of the Company’s assets and liabilities. Valuation allowances are recorded to reduce deferred tax assets to amounts that are more likely than not to be realized. Significant judgments, estimates and assumptions are required in determining tax return reporting positions and in calculating provisions for income tax, which are based on interpretations of tax regulations and accounting pronouncements. Liabilities are established for uncertain tax positions when it is more likely than not that such positions, if challenged, would not be sustained upon review by taxing authorities. These liabilities are re-evaluated as tax regulations and facts and circumstances change, such as the closing of a tax audit or the expiration of the statute of limitations for a specific exposure. |
Earnings per Share | Earnings per 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 (restricted stock 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 shares for the period in each class. Diluted earnings per share assume the issuance of common stock for all potentially dilutive share equivalents outstanding. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and cash equivalents, investments in marketable securities and trade receivables. Investment and cash management policies have been implemented that limit deposit concentrations and limit investments to investment grade securities. The risk with respect to trade receivables is mitigated by monitoring payment terms and periodic credit evaluations we perform on our customers, the short duration of our payment terms and by the diversification of our customer base. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Reclassification | Reclassifications Certain amounts in the consolidated financial statement for prior years have been reclassified to conform to the fiscal year 2019 presentation. |
Fair Value Measurement | 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 and liabilities in active markets; quoted prices for identical or similar assets and 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 and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
Fair Value of Financial Instruments | The Company’s derivative financial instruments consist of commodity forward contracts, foreign currency forward contracts, interest rate swaps and forward 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 16 . 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Issued Accounting Pronouncements - Adopted in current period In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), which outlines a single comprehensive framework for all entities in all industries to apply in the determination of when to recognize revenue, and, therefore, supersedes virtually all existing revenue recognition requirements and guidance. This framework resulted in less complex guidance in application while providing a consistent and comparable methodology for revenue recognition. The standard provides a five-step model to be applied to all contracts with customers, with an underlying principle that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The Company adopted ASU 2014-09 for all open contracts as of July 1, 2018 using the modified retrospective transition method. The adoption of the new standard did not have a material impact on the financial position of the Company, the results of its operations or its cash flows for fiscal year ended June 30, 2019 . There was no cumulative effect of adopting the standard at the date of initial application in reinvested earnings. The Company’s revenue recognition accounting policy has been updated for the new guidance and the Company has expanded disclosure of revenues from contracts with customers as included in Note 3. Revenue. 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 adoption permitted. The Company adopted the provisions of ASU 2016-16 in the first quarter of fiscal year 2019. The adoption of ASU 2016-16 did not materially impact the Company’s 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. The guidance changes how employers that sponsor defined benefit pension and other post-retirement benefit plans disaggregate the service cost components from other components of net periodic benefit costs in the income statement. This amendment requires that the service cost component be reported in net income as “cost of sales” or “selling, general and administrative expenses” in a manner consistent with the classification of direct labor and personnel costs of the eligible employees. Other components of net periodic benefit costs including interest costs, expected return on plan assets, amortization of net loss, amortization of prior service cost (benefits) (“pension earnings, interest and deferrals”) are classified as non-operating expense in “other income (expense), net” on the consolidated statements of income. The update specifies that only the service cost component is eligible for capitalization, which is consistent with the Company’s current practice. The Company adopted the provisions of ASU 2017-07 effective July 1, 2018 on a retrospective basis. For fiscal year ended June 30, 2018 , $0.1 million and $2.0 million have been reclassified from cost of goods sold and selling, general and administrative expenses, respectively, to other income (expense), net on the consolidated statements of income. For fiscal year ended June 30, 2017, $16.5 million and $7.8 million have been reclassified from cost of goods sold and selling, general and administrative expenses, respectively, to other income (expense), net on the consolidated statements of income. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedge Activities, which amended and simplified the requirements of hedge accounting. ASU 2017-12 enables companies to more accurately present the economic effects of risk management activities in the financial statements. The guidance requires the presentation of all items that affect earnings to be recorded in the same income statement line as the hedged item and is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years with early adoption permitted. The Company adopted the provisions of ASU 2017-12 on July 1, 2018. Upon adoption, the Company reclassified $1.0 million of previously recorded hedge ineffectiveness from Reinvested Earnings to Accumulated Other Comprehensive Loss within the equity section of the consolidated balance sheets and provided expanded disclosures of derivative activity. Recently Issued Accounting Pronouncements - Pending Adoption In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which 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 adoption permitted. The Company completed the accumulation of current lease information into the accounting software and validated the data for accuracy. The Company expects to elect the package of practical expedients not to reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. The Company will make a policy election to not recognize right-of-use assets and lease liabilities for short-term leases for all asset classes. Upon adoption of the new lease guidance, the Company expects to record a right-of-use asset and lease liability on the consolidated balance sheets for several types of operating leases, including buildings, equipment, vehicles and computer equipment. The Company anticipates the impact of the adoption on July 1, 2019 will result in a right-of-use asset and total lease liability related to operating leases in the range of $51 million to $57 million . The adoption is not expected to have a material impact on the Consolidated Statements of Income or Consolidated Statements of Cash Flows. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allows a reclassification from accumulated other comprehensive income (loss) to reinvested earnings for standard tax effects resulting from the Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018. ASU 2018-02 is effective for public business entities for annual periods, including interim periods within those annual periods, beginning after December 15, 2018, with early adoption permitted. The Company does not expect the adoption of ASU 2018-02 on July 1, 2019 will have a material impact on the consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of revenues by end-use markets and geography | Comparative information of the Company’s overall revenues by end-use markets and geography for years ended June 30, 2019, 2018 and 2017 were as follows: End-Use Market Data Year Ended Year Ended Year Ended ($ in millions) 2019 2018 2017 Aerospace and Defense $ 1,327.9 $ 1,182.3 $ 973.3 Medical 205.0 175.3 125.5 Energy 181.7 146.5 138.0 Transportation 157.7 157.0 143.9 Industrial and Consumer 371.5 364.9 298.2 Distribution 136.4 131.7 118.7 Total net sales $ 2,380.2 $ 2,157.7 $ 1,797.6 Geographic Data Year Ended Year Ended Year Ended ($ in millions) 2019 2018 2017 United States $ 1,606.7 $ 1,429.4 $ 1,198.3 Europe 387.2 383.0 349.6 Asia Pacific 196.3 174.8 127.2 Mexico 81.6 61.7 48.5 Canada 67.8 65.7 47.7 Other 40.6 43.1 26.3 Total net sales $ 2,380.2 $ 2,157.7 $ 1,797.6 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of calculations basic and diluted earnings per common share | The calculations of basic and diluted earnings per common share for the years ended June 30, 2019 , 2018 and 2017 were as follows: Years Ended June 30, (in millions, except per share data) 2019 2018 2017 Net income $ 167.0 $ 188.5 $ 47.0 Less: earnings and dividends allocated to participating securities (1.9 ) (1.7 ) (0.3 ) Earnings available for common shareholders used in calculation of basic earnings per share $ 165.1 $ 186.8 $ 46.7 Weighted average number of common shares outstanding, basic 47.7 47.2 47.0 Basic earnings per common share $ 3.46 $ 3.96 $ 0.99 Net income $ 167.0 $ 188.5 $ 47.0 Less: earnings and dividends allocated to participating securities (1.9 ) (1.7 ) (0.3 ) Earnings available for common shareholders used in calculation of diluted earnings per share $ 165.1 $ 186.8 $ 46.7 Weighted average number of common shares outstanding, basic 47.7 47.2 47.0 Effect of shares issuable under share-based compensation plans 0.4 0.4 0.1 Weighted average number of common shares outstanding, diluted 48.1 47.6 47.1 Diluted earnings per common share $ 3.43 $ 3.92 $ 0.99 |
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 calculations of diluted earnings per share above because their effects were anti-dilutive: Years Ended June 30, (in millions) 2019 2018 2017 Stock options 0.7 0.7 1.9 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following components at June 30, 2019 and 2018 : June 30, ($ in millions) 2019 2018 Raw materials and supplies $ 169.8 $ 157.5 Work in process 425.7 372.5 Finished and purchased products 192.2 159.2 Total inventory $ 787.7 $ 689.2 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of property, plant and equipment | Property, plant and equipment consisted of the following components at June 30, 2019 and 2018 : June 30, ($ in millions) 2019 2018 Land $ 35.6 $ 34.8 Buildings and building equipment 512.9 500.0 Machinery and equipment 2,183.6 2,129.0 Construction in progress 150.7 83.6 Total at cost 2,882.8 2,747.4 Less: accumulated depreciation and amortization 1,516.6 1,434.0 Total property, plant, and equipment $ 1,366.2 $ 1,313.4 |
Schedule of estimated useful lives of depreciable assets | The estimated useful lives of depreciable assets are as follows: Asset Category Useful Life Buildings and building equipment 10 – 45 Machinery and equipment 3 – 30 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in carrying amount of goodwill by reportable segment | The changes in the carrying amount of goodwill by reportable segment for fiscal years 2019 and 2018 were as follows: ($ in millions) June 30, 2017 Acquisition June 30, 2018 Acquisition June 30, 2019 Goodwill $ 310.6 $ 5.3 $ 315.9 $ 57.7 $ 373.6 Accumulated impairment losses (47.2 ) — (47.2 ) — (47.2 ) Total goodwill $ 263.4 $ 5.3 $ 268.7 $ 57.7 $ 326.4 Specialty Alloys Operations $ 195.5 $ — $ 195.5 $ — $ 195.5 Performance Engineered Products 67.9 5.3 73.2 57.7 130.9 Total goodwill $ 263.4 $ 5.3 $ 268.7 $ 57.7 $ 326.4 |
Schedule of other intangible assets, net | June 30, 2019 June 30, 2018 ($ in millions) Useful Life Gross Accumulated Net Carrying Gross Accumulated Net Carrying Trademarks and trade names 15 - 30 $ 33.5 $ (24.3 ) $ 9.2 $ 33.5 $ (23.2 ) $ 10.3 Customer relationships 10 - 15 76.9 (36.0 ) 40.9 76.9 (30.8 ) 46.1 Non-compete agreements 5 0.2 (0.1 ) 0.1 0.2 (0.1 ) 0.1 Technology 15 7.3 (1.0 ) 6.3 7.3 (0.5 ) 6.8 Patents 14 - 20 11.4 (0.7 ) 10.7 — — — Total $ 129.3 $ (62.1 ) $ 67.2 $ 117.9 $ (54.6 ) $ 63.3 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued liabilities | Accrued liabilities consisted of the following as of June 30, 2019 and 2018 : June 30, ($ in millions) 2019 2018 Accrued compensation and benefits $ 71.2 $ 83.3 Derivative financial instruments 16.7 — Accrued postretirement benefits 14.7 15.4 Deferred revenue 10.5 10.4 Accrued interest expense 10.4 10.4 Accrued income taxes 4.2 1.4 Accrued pension liabilities 3.4 3.3 Other 26.5 24.4 Total accrued liabilities $ 157.6 $ 148.6 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt outstanding | Long-term debt outstanding as of June 30, 2019 and 2018 consisted of the following: June 30, ($ in millions) 2019 2018 Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at June 30, 2019 and 2018) $ 251.2 $ 246.6 Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at June 30, 2019 and 2018) 299.4 299.1 Total 550.6 545.7 Less: amounts due within one year — — Long-term debt, net of current portion $ 550.6 $ 545.7 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of reconciliation of benefit obligations, plan assets and funded status of the plans | The following provides a reconciliation of benefit obligations, plan assets and funded status of the plans: Pension Plans Other Postretirement Plans ($ in millions) 2019 2018 2019 2018 Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 1,264.5 $ 1,369.1 $ 241.5 $ 255.1 Service cost 9.2 9.5 2.3 2.6 Interest cost 53.0 52.1 10.1 9.5 Benefits paid (88.7 ) (89.8 ) (12.6 ) (13.0 ) Actuarial loss (gains) 101.3 (76.6 ) 14.5 (12.7 ) Special termination benefits — 0.2 — — Projected benefit obligation at end of year 1,339.3 1,264.5 255.8 241.5 Change in plan assets: Fair value of plan assets at beginning of year 972.5 987.6 117.9 117.0 Actual return 72.2 64.7 10.5 10.6 Benefits paid (88.7 ) (89.8 ) (12.6 ) (13.0 ) Contributions 8.7 10.0 3.2 3.3 Fair value of plan assets at end of year 964.7 972.5 119.0 117.9 Funded status of the plans $ (374.6 ) $ (292.0 ) $ (136.8 ) $ (123.6 ) Amounts recognized in the consolidated balance sheets: Other assets - noncurrent $ — $ 0.1 $ — $ — Accrued liabilities - current (3.4 ) (3.3 ) (14.7 ) (15.4 ) Accrued pension liabilities - noncurrent (371.2 ) (288.8 ) — — Accrued postretirement benefits - noncurrent — — (122.1 ) (108.2 ) $ (374.6 ) $ (292.0 ) $ (136.8 ) $ (123.6 ) |
Schedule of amounts recognized in the consolidated balance sheets | Pension Plans Other Postretirement Plans ($ in millions) 2019 2018 2019 2018 Amounts recognized in accumulated other comprehensive loss: Net actuarial loss $ 445.7 $ 362.1 $ 42.3 $ 32.9 Prior service cost (credit) 14.1 16.2 (17.9 ) (23.1 ) Total $ 459.8 $ 378.3 $ 24.4 $ 9.8 Other changes in plan assets and benefit obligations recognized in other comprehensive loss consist of: Net actuarial loss (gain) $ 94.1 $ (75.0 ) $ 10.9 $ (16.3 ) Amortization of net loss (10.4 ) (13.5 ) (1.6 ) (2.9 ) Amortization of prior service (cost) benefit (2.1 ) (2.1 ) 5.2 5.2 Total, before tax effect $ 81.6 $ (90.6 ) $ 14.5 $ (14.0 ) Additional information: Accumulated benefit obligation for all pension plans $ 1,331.6 $ 1,257.8 N/A N/A |
Schedule of amounts recognized in the accumulated other comprehensive loss | The following is additional information related to plans with projected benefit obligations in excess of plan assets as of June 30, 2019 and 2018 : Pension Plans Other Postretirement Plans ($ in millions) 2019 2018 2019 2018 Projected benefit obligation $ 1,339.3 $ 1,264.4 $ 255.9 $ 241.5 Fair value of plan assets $ 964.7 $ 972.4 $ 119.0 $ 117.9 |
Schedule of projected benefit obligations in excess of plan assets | The following additional information is for plans with accumulated benefit obligations in excess of plan assets as of June 30, 2019 and 2018 : Pension Plans Other Postretirement Plans ($ in millions) 2019 2018 2019 2018 Accumulated benefit obligation $ 1,331.5 $ 1,257.7 $ 255.9 $ 241.5 Fair value of plan assets $ 964.7 $ 972.4 $ 119.0 $ 117.9 |
Schedule of accumulated benefit obligations in excess of plan assets | The components of the net periodic benefit cost related to the Company’s pension and other postretirement benefits for the years ended June 30, 2019 , 2018 and 2017 are as follows: Pension Plans Other Postretirement Plans ($ in millions) 2019 2018 2017 2019 2018 2017 Service cost $ 9.2 $ 9.5 $ 20.5 $ 2.3 $ 2.6 $ 3.6 Interest cost 53.0 52.1 50.3 10.1 9.5 9.2 Expected return on plan assets (64.9 ) (65.9 ) (65.1 ) (7.0 ) (6.9 ) (6.9 ) Amortization of net loss 10.4 13.5 37.8 1.6 2.9 3.2 Amortization of prior service cost (benefit) 2.1 2.1 1.8 (5.2 ) (5.2 ) (6.5 ) Curtailment loss — — 0.5 — — — Net periodic benefit costs $ 9.8 $ 11.3 $ 45.8 $ 1.8 $ 2.9 $ 2.6 |
Schedule of components of the net periodic benefit cost | Weighted-average assumptions used to determine benefit obligations at fiscal year end Pension Plans Other Postretirement Plans 2019 2018 2019 2018 Discount rate 3.61 % 4.32 % 3.60 % 4.32 % Rate of compensation increase 3.39 % 3.44 % N/A N/A |
Schedule of weighted-average assumptions used to determine benefit obligations and net periodic benefit cost | Weighted-average assumptions used to determine net periodic benefit cost for the fiscal year Pension Plans Other Postretirement Plans 2019 2018 2017 2019 2018 2017 Discount rate 4.32 % 3.92 % 3.91 % 4.32 % 3.89 % 3.86 % Expected long-term rate of return on plan assets 6.88 % 6.87 % 6.88 % 6.25 % 6.25 % 6.25 % Long-term rate of compensation increase 3.39 % 3.44 % 3.50 % N/A N/A N/A |
Schedule of expected health care cost trend rates | The following table shows the expected health care rate increase and the future rate and time at which it is expected to remain constant: June 30, 2019 2018 Assumed health care cost trend rate 6.25 % 6.50 % Rate to which the cost trend rate is assumed to decline and remain (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2025 2022 |
Schedule of amounts in other comprehensive loss that are expected to be recognized as components of net periodic benefit cost | Amounts in other comprehensive loss (gain) that are expected to be recognized as components of net periodic benefit cost in the year ended June 30, 2020 are: ($ in millions) Pension Plans Other Postretirement Plans Total Amortization of prior service cost (benefit) $ 2.1 $ (3.9 ) $ (1.8 ) Amortization of net actuarial loss 15.5 2.5 18.0 Amortization of accumulated other comprehensive loss (gain) $ 17.6 $ (1.4 ) $ 16.2 |
Schedule of weighted-average asset allocations by asset category | The Company’s U.S. pension plans’ weighted-average asset allocations at June 30, 2019 and 2018 , by asset category are as follows: 2019 2018 Equity securities 53.7 % 55.7 % Fixed income securities 46.3 44.3 Total 100.0 % 100.0 % |
Schedule of fair values of pension plan by assets category | The fair values of the Company’s pension plan assets as of June 30, 2019 and 2018 , by asset category and by the levels of inputs used to determine fair value were as follows: June 30, 2019 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Short-term investments $ 5.4 $ 9.5 $ — $ 14.9 Domestic and international equities 132.6 — — 132.6 Commingled funds — — 371.4 371.4 Limited partnerships — — 45.4 45.4 Government agency bonds 4.8 172.0 — 176.8 Corporate bonds — 220.2 — 220.2 Mutual funds 1.9 — — 1.9 Mortgage/asset backed securities and other — 1.5 — 1.5 $ 144.7 $ 403.2 $ 416.8 $ 964.7 June 30, 2018 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Short-term investments $ 2.5 $ 14.6 $ — $ 17.1 Domestic and international equities 156.4 — — 156.4 Commingled funds — — 365.3 365.3 Limited partnerships — — 43.3 43.3 Government agency bonds 3.5 151.6 — 155.1 Corporate bonds — 226.3 — 226.3 Mutual funds — — 1.8 1.8 Mortgage/asset backed securities and other — 7.2 — 7.2 $ 162.4 $ 399.7 $ 410.4 $ 972.5 |
Schedule of fair values of other postretirement benefit plans by asset category | The fair values of the Company’s other postretirement benefit plans as of June 30, 2019 and 2018 , by asset category and by the level of inputs used to determine fair value, were as follows: June 30, 2019 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Commingled fund $ — $ — $ 83.7 $ 83.7 Short-term investments — 27.1 — 27.1 Government agency bonds — 4.8 — 4.8 Corporate bonds and other — 3.4 — 3.4 $ — $ 35.3 $ 83.7 $ 119.0 June 30, 2018 Fair Value ($ in millions) Level 1 Level 2 Net Asset Value Total Commingled fund $ — $ — $ 80.3 $ 80.3 Short-term investments — 23.0 — 23.0 Government agency bonds — 8.7 — 8.7 Corporate bonds and other — 5.4 — 5.4 Mortgage backed securities — 0.5 — 0.5 $ — $ 37.6 $ 80.3 $ 117.9 |
Schedule of estimated future benefit payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid. Pension benefits are currently paid from plan assets and other benefits are currently paid from corporate assets. ($ in millions) Pension Other 2020 $ 83.0 $ 14.7 2021 $ 82.4 $ 15.1 2022 $ 82.6 $ 15.1 2023 $ 82.4 $ 15.1 2024 $ 81.8 $ 15.1 2025-2029 $ 395.5 $ 73.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 Fair Value Measurements ($ in millions) Level 2 Total Assets: Derivative financial instruments $ 12.5 $ 12.5 Liabilities: Derivative financial instruments $ 28.0 $ 28.0 June 30, 2018 Fair Value Measurements ($ in millions) Level 2 Total Assets: Marketable securities Municipal auction rate securities $ 2.9 $ 2.9 Derivative financial instruments 35.2 35.2 Total assets $ 38.1 $ 38.1 Liabilities: Derivative financial instruments $ 3.4 $ 3.4 |
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: June 30, 2019 June 30, 2018 ($ in millions) Carrying Fair Carrying Fair Long-term debt $ 550.6 $ 560.6 $ 545.7 $ 558.3 Company-owned life insurance $ 17.9 $ 17.9 $ 16.4 $ 16.4 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of weighted-average assumptions of fair value of stock options | The fair value of stock options awarded in fiscal years 2019 , 2018 and 2017 was estimated on the date of each grant using a Black-Scholes option pricing model with the following weighted-average assumptions: Years Ended June 30, 2019 2018 2017 Expected volatility 36 % 35 % 37 % Dividend yield 1.3 % 1.8 % 1.8 % Risk-free interest rate 2.8 % 1.8 % 1.1 % Expected term (in years) 5.0 5.0 5.0 |
Summary of stock option activity | Number of Weighted Weighted Aggregate Outstanding at June 30, 2016 1,701,502 $ 43.35 Granted 907,141 $ 38.98 Exercised (95,289 ) $ 23.21 Forfeited (80,926 ) $ 44.35 Expired (40,000 ) $ 55.12 Outstanding at June 30, 2017 2,392,428 $ 42.27 Granted 252,545 $ 41.27 Exercised (362,571 ) $ 35.70 Forfeited (25,915 ) $ 45.27 Expired (33,226 ) $ 63.12 Outstanding at June 30, 2018 2,223,261 $ 42.88 Granted 124,977 $ 57.92 Exercised (96,514 ) $ 39.93 Forfeited (125,435 ) $ 40.17 Outstanding at June 30, 2019 2,126,289 $ 44.06 6.1 years $ 12.4 Exercisable at June 30, 2019 1,258,605 $ 45.66 5.1 years $ 5.8 |
Summary of outstanding and exercisable options by exercise price range | Exercise Price Number Outstanding at June 30, 2019 Weighted Weighted Number Exercisable at June 30, 2019 Weighted $17.29 - $20.00 14,166 0.1 $ 17.29 14,166 $ 17.29 $20.01 - $30.00 167 0.5 $ 24.62 167 $ 24.62 $30.01 - $40.00 918,282 6.7 $ 38.41 296,488 $ 37.20 $40.01 - $50.00 513,090 6.4 $ 41.94 375,876 $ 42.39 $50.01 - $59.53 680,584 5.3 $ 53.84 571,908 $ 52.90 2,126,289 $ 44.06 1,258,605 $ 45.66 |
Summary of nonvested stock awards activity | Number of Awards Weighted Average Grant Date Fair Value Restricted Balance at June 30, 2016 188,469 $ 35.69 Time-based granted 231,195 $ 38.82 Performance-based granted 55,478 $ 36.18 Vested (44,873 ) $ 34.24 Forfeited (37,792 ) $ 38.80 Restricted Balance at June 30, 2017 392,477 $ 37.47 Time-based granted 138,718 $ 41.49 Performance-based granted 124,432 $ 50.99 Vested (62,215 ) $ 35.35 Forfeited (21,384 ) $ 39.48 Restricted Balance at June 30, 2018 572,028 $ 41.54 Time-based granted 132,421 $ 57.92 Vested (175,554 ) $ 38.39 Forfeited (54,560 ) $ 41.62 Restricted Balance at June 30, 2019 474,335 $ 44.66 |
Summary Of Director stock units activity | Number of Units Weighted Average Grant Date Fair Value Outstanding at June 30, 2016 334,943 $ 38.64 Granted 27,285 $ 39.69 Distributed (30,022 ) $ 34.19 Dividend equivalents 6,347 $ — Outstanding at June 30, 2017 338,553 $ 42.47 Granted 21,813 $ 49.14 Distributed (35,489 ) $ 35.22 Dividend equivalents 4,869 $ — Outstanding at June 30, 2018 329,746 $ 33.05 Granted 21,158 $ 56.00 Distributed (32,352 ) $ 39.01 Dividend equivalents 6,003 $ — Outstanding at June 30, 2019 324,555 $ 35.25 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and 2018 : June 30, 2019 Interest Rate Swaps Foreign Currency Contracts Commodity Contracts Total Derivatives Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 0.3 $ 0.6 $ 3.8 $ 4.7 Other assets 1.6 0.2 6.0 7.8 Total asset derivatives $ 1.9 $ 0.8 $ 9.8 $ 12.5 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ — $ 16.7 $ 16.7 Other liabilities — — 11.3 11.3 Total liability derivatives $ — $ — $ 28.0 $ 28.0 June 30, 2018 Interest Rate Swaps Foreign Currency Contracts Commodity Contracts Total Derivatives Asset Derivatives: Derivatives designated as hedging instruments: Other current assets $ 0.1 $ 0.4 $ 15.3 $ 15.8 Other assets — — 19.4 19.4 Total asset derivatives $ 0.1 $ 0.4 $ 34.7 $ 35.2 Liability Derivatives: Derivatives designated as hedging instruments: Accrued liabilities $ — $ 0.1 $ — $ 0.1 Other liabilities 2.9 — 0.4 3.3 Total liability derivatives $ 2.9 $ 0.1 $ 0.4 $ 3.4 |
Summary of the gains (losses) related to cash flow hedges | The following is a summary of the gains (losses) related to cash flow hedges recognized during the years ended June 30, 2019 , 2018 and 2017 : Amount of Gain (Loss) Recognized in AOCI on Derivatives ($ in millions) 2019 2018 2017 Derivatives in Cash Flow Hedging Relationship: Commodity contracts $ 45.4 $ 41.4 $ 9.4 Foreign exchange contracts (0.9 ) (0.4 ) (0.1 ) Total $ 44.5 $ 41.0 $ 9.3 Amount of Gain (Loss) Reclassified from AOCI into Income ($ in millions) Location of Gain (Loss) 2019 2018 2017 Derivatives in Cash Flow Hedging Relationship: Commodity contracts Cost of sales $ 5.1 $ 3.8 $ (22.8 ) Foreign exchange contracts Net sales 1.0 (1.0 ) 0.5 Forward interest rate swaps Interest expense 0.4 0.4 0.4 Total $ 6.5 $ 3.2 $ (21.9 ) The following is a summary of total amounts presented in the consolidated statements of income in which the effects of cash flow and fair value hedges are recorded during the years ended June 30, 2019 and 2018: Year Ended June 30, 2019 Year Ended June 30, 2018 ($ in millions) Net Sales Cost of Sales Interest Expense Net Sales Cost of Sales Interest Expense Total amounts presented in the consolidated statements of income in which the effects of cash flow and fair value hedges are recorded $ 2,380.2 $ 1,935.4 $ 26.0 $ 2,157.7 $ 1,775.4 $ 28.3 Gain (loss) on Derivatives in Cash Flow Hedging Relationship: Commodity contracts Amount of gain reclassified from AOCI to income — 5.1 — — 3.8 — Foreign currency forward contracts Amount of gain (loss) reclassified from AOCI to income 1.0 — — (1.0 ) — — Interest rate swap agreements Amount of gain reclassified from AOCI to income — — 0.4 — — 0.4 Gain (Loss) on Derivatives in Fair Value Hedging Relationship: Interest rate swap agreements Hedged Item — — 0.2 — — (0.4 ) Derivatives designated as hedging instruments — — (0.2 ) — — 0.4 Total gain (loss) $ 1.0 $ 5.1 $ 0.4 $ (1.0 ) $ 3.8 $ 0.4 |
Summary of amounts recorded in balance sheet related to cumulative basis adjustment for fair value interest rate risk hedges | As of June 30, 2019 , and June 30, 2018 , the following amounts were recorded on the consolidated balance sheets related to cumulative basis adjustments for fair value hedges of interest rate risk: Carrying amount of the hedged liabilities Cumulative amount of fair value loss (gain) in the carrying amount of the hedged liabilities ($ in millions) June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 Line item in the consolidated balance sheets in which the hedged item is included: Long-Term Debt $ 151.6 $ 147.1 $ 1.6 $ (2.9 ) |
Schedule of changes in AOCI associated with derivative hedging activities | The changes in AOCI associated with derivative hedging activities during the years ended June 30, 2019 , 2018 and 2017 were as follows: ($ in millions) 2019 2018 2017 Balance, beginning $ 23.8 $ (2.3 ) $ (21.8 ) Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings (1.0 ) — — Current period changes in fair value, net of tax (32.7 ) 26.9 5.8 Reclassification to earnings, net of tax (4.9 ) (0.8 ) 13.7 Balance, ending $ (14.8 ) $ 23.8 $ (2.3 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income taxes for the Company's domestic and foreign operations | Income before income taxes for the Company’s domestic and foreign operations was as follows: Years Ended June 30, ($ in millions) 2019 2018 2017 Domestic $ 204.2 $ 140.3 $ 56.0 Foreign 11.8 19.9 14.2 Income before income taxes $ 216.0 $ 160.2 $ 70.2 |
Schedule of provision (benefit) for income taxes from continuing operations | The provision (benefit) for income taxes from continuing operations consisted of the following: Years Ended June 30, ($ in millions) 2019 2018 2017 Current: Federal $ 23.2 $ 22.6 $ (24.5 ) State 4.4 3.5 (1.1 ) Foreign 4.9 6.7 7.2 Total current 32.5 32.8 (18.4 ) Deferred: Federal 13.1 (66.0 ) 38.7 State 3.6 4.8 3.5 Foreign (0.2 ) 0.1 (0.6 ) Total deferred 16.5 (61.1 ) 41.6 Total income tax expense (benefit) $ 49.0 $ (28.3 ) $ 23.2 |
Schedule of reconciliation of income taxes computed at the U.S. Federal income tax rate to the Company's effective income tax rate | The following is a reconciliation of income taxes computed at the U.S. Federal income tax rate to the Company’s effective income tax rates: Years Ended June 30, (% of pre-tax income) 2019 2018 2017 Statutory federal income tax rate 21.0 % 28.1 % 35.0 % State income taxes, net of federal tax benefit 3.0 2.6 2.0 Domestic manufacturing deduction — (1.5 ) (3.0 ) Research and development tax credit (1.1 ) (1.4 ) (3.9 ) Adjustments of prior years' income taxes (0.9 ) 0.2 3.3 Remeasurement of U.S. deferred taxes 0.1 (49.3 ) — Transition tax on foreign earnings (0.1 ) 3.1 — Other, net 0.7 0.5 (0.4 ) Effective income tax rate 22.7 % (17.7 )% 33.0 % |
Summary of components of deferred tax assets and liabilities | June 30, ($ in millions) 2019 2018 Deferred tax assets: Pensions $ 86.9 $ 66.8 Postretirement provisions 35.7 33.7 Net operating loss carryforwards 28.8 26.5 Derivatives and hedging activities 4.1 — Other 32.1 29.4 Gross deferred tax assets 187.6 156.4 Valuation allowances (24.6 ) (23.9 ) Total deferred tax assets 163.0 132.5 Deferred tax liabilities: Depreciation (249.5 ) (235.2 ) Intangible assets (11.3 ) (11.9 ) Inventories (36.1 ) (30.5 ) Derivatives and hedging activities (0.3 ) (8.7 ) Other (4.3 ) (3.5 ) Total deferred tax liabilities (301.5 ) (289.8 ) Deferred tax liabilities, net $ (138.5 ) $ (157.3 ) |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of other income, net | Other income (expense), net consists of the following: Years Ended June 30, ($ in millions) 2019 2018 2017 Unrealized gains on company owned life insurance contracts and investments held in rabbi trusts $ 0.8 $ 1.5 $ 1.7 Interest income 0.1 0.3 0.3 Foreign exchange (0.4 ) (0.7 ) (0.4 ) Pension earnings, interest and deferrals (0.1 ) (2.1 ) (23.8 ) Pension curtailment — — (0.5 ) Other 0.2 0.2 1.2 Total other income (expense), net $ 0.6 $ (0.8 ) $ (21.5 ) |
Segment Information, Geograph_2
Segment Information, Geographic and Product Data (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of results of operation, depreciation and amortization, capital expenditures and total assets by reportable segments | Segment Data Years Ended June 30, ($ in millions) 2019 2018 2017 Net Sales: Specialty Alloys Operations $ 1,967.3 $ 1,803.8 $ 1,461.6 Performance Engineered Products 479.8 429.7 366.6 Intersegment (66.9 ) (75.8 ) (30.6 ) Consolidated net sales $ 2,380.2 $ 2,157.7 $ 1,797.6 Years Ended June 30, ($ in millions) 2019 2018 2017 Operating Income: Specialty Alloys Operations $ 282.2 $ 232.4 $ 172.3 Performance Engineered Products 30.0 26.1 8.5 Corporate costs (including loss on divestiture of business) (72.7 ) (66.4 ) (60.8 ) Intersegment 1.9 (2.8 ) 1.5 Consolidated operating income $ 241.4 $ 189.3 $ 121.5 Years Ended June 30, ($ in millions) 2019 2018 2017 Depreciation and Amortization: Specialty Alloys Operations $ 95.2 $ 93.3 $ 94.0 Performance Engineered Products 22.2 20.2 20.6 Corporate 4.9 3.9 4.0 Intersegment (0.8 ) (0.8 ) (0.8 ) Consolidated depreciation and amortization $ 121.5 $ 116.6 $ 117.8 Years Ended June 30, ($ in millions) 2019 2018 2017 Capital Expenditures: Specialty Alloys Operations $ 92.7 $ 63.6 $ 52.2 Performance Engineered Products 51.7 31.6 17.0 Corporate 37.1 41.6 29.7 Intersegment (1.2 ) (1.8 ) (0.4 ) Consolidated capital expenditures $ 180.3 $ 135.0 $ 98.5 June 30, ($ in millions) 2019 2018 Total Assets: Specialty Alloys Operations $ 2,349.2 $ 2,312.1 Performance Engineered Products 664.8 513.6 Corporate 192.5 193.2 Intersegment (18.7 ) (11.9 ) Consolidated total assets $ 3,187.8 $ 3,007.0 |
Schedule of net sales by geographic segment | Geographic Data Years Ended June 30, ($ in millions) 2019 2018 2017 Net Sales: (a) United States $ 1,606.7 $ 1,429.4 $ 1,198.3 Europe 387.2 383.0 349.6 Asia Pacific 196.3 174.8 127.2 Mexico 81.6 61.7 48.5 Canada 67.8 65.7 47.7 Other 40.6 43.1 26.3 Consolidated net sales $ 2,380.2 $ 2,157.7 $ 1,797.6 (a) Net sales were attributed to countries based on the location of the customer. |
Schedule of long-lived assets by geographic segment | June 30, ($ in millions) 2019 2018 Long-lived assets: United States $ 1,335.6 $ 1,286.4 Europe 17.0 3.9 Asia Pacific 6.8 15.4 Canada 5.5 6.3 Mexico 1.3 1.4 Consolidated long-lived assets $ 1,366.2 $ 1,313.4 |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
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 years ended June 30, 2019 and 2018 were as follows: ($ in millions) (a) Cash flow hedging items Pension and other postretirement benefit plan items Unrealized losses on available-for-sale securities Foreign currency items Total Balance at June 30, 2018 $ 23.8 $ (220.4 ) $ (0.3 ) $ (42.9 ) $ (239.8 ) Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings (1.0 ) — — — (1.0 ) Other comprehensive (loss) income before reclassifications (32.7 ) (79.7 ) 0.3 (0.8 ) (112.9 ) Amounts reclassified from AOCI (b) (4.9 ) 6.8 — — 1.9 Net current-period other comprehensive (loss) income (38.6 ) (72.9 ) 0.3 (0.8 ) (112.0 ) Balance at June 30, 2019 $ (14.8 ) $ (293.3 ) $ — $ (43.7 ) $ (351.8 ) ($ in millions) (a) Cash flow hedging items Pension and other postretirement benefit plan items Unrealized losses on available-for-sale securities Foreign currency items Total Balance at June 30, 2017 $ (2.3 ) $ (299.0 ) $ (0.3 ) $ (41.5 ) $ (343.1 ) Other comprehensive income (loss) before reclassifications 26.9 69.7 — (1.4 ) 95.2 Amounts reclassified from AOCI (b) (0.8 ) 8.9 — — 8.1 Net current-period other comprehensive income (loss) 26.1 78.6 — (1.4 ) 103.3 Balance at June 30, 2018 $ 23.8 $ (220.4 ) $ (0.3 ) $ (42.9 ) $ (239.8 ) (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 years ended June 30, 2019 and 2018 : Amount Reclassified from AOCI Years Ended June 30, ($ in millions) (a) Location of gain 2019 2018 Details about AOCI Components Cash flow hedging items Commodity contracts Cost of sales $ 5.1 $ 1.8 Foreign exchange contracts Net sales 1.0 (1.0 ) Forward interest rate swaps Interest expense 0.4 0.4 Total before tax 6.5 1.2 Tax expense (1.6 ) (0.4 ) Net of tax $ 4.9 $ 0.8 Amortization of pension and other postretirement benefit plan items Net actuarial loss (b) $ (12.0 ) $ (16.4 ) Prior service cost (b) 3.1 3.1 Total before tax (8.9 ) (13.3 ) Tax benefit 2.1 4.4 Net of tax $ (6.8 ) $ (8.9 ) (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 11 for additional details). |
Supplemental Data (Tables)
Supplemental Data (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Supplemental Data | |
Additional supplemental disclosures | The following are additional required disclosures and other material items: Years Ended June 30, ($ in millions) 2019 2018 2017 Cost Data: Repairs and maintenance costs $ 120.4 $ 108.0 $ 99.1 Cash Flow Data: Noncash investing and financing activities: Noncash purchases of property, plant, equipment and software $ 16.1 $ 16.5 $ 13.7 Cash paid (received) during the year for: Interest payments, net $ 27.6 $ 29.5 $ 27.7 Income tax payments (refunds), net $ 27.5 $ 33.7 $ (33.3 ) |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly financial data by results of operations | ($ in millions) First Second Third Fourth Results of Operations Fiscal Year 2019 Net sales $ 572.4 $ 556.5 $ 609.9 $ 641.4 Gross profit $ 91.7 $ 107.0 $ 123.2 $ 122.9 Operating income $ 45.0 $ 55.4 $ 73.2 $ 67.9 Net income $ 31.5 $ 35.5 $ 51.1 $ 48.9 Fiscal Year 2018 Net sales $ 479.8 $ 487.8 $ 572.2 $ 618.0 Gross profit $ 85.6 $ 85.7 $ 96.1 $ 114.9 Operating income $ 42.2 $ 41.4 $ 45.7 $ 60.0 Net income $ 23.4 $ 92.1 $ 30.2 $ 42.8 During the quarter ended December 31, 2017, the Company recorded an income tax benefit. See Note 17 , Income Taxes to Notes to Consolidated Financial Statements included in Item 8. “Financial Statements and Supplementary Data”. (per share amount) First Quarter Second Quarter Third Quarter Fourth Quarter Earnings per common share Fiscal Year 2019 Basic earnings $ 0.66 $ 0.73 $ 1.06 $ 1.01 Diluted earnings $ 0.65 $ 0.73 $ 1.05 $ 1.00 Fiscal Year 2018 Basic earnings $ 0.49 $ 1.93 $ 0.63 $ 0.90 Diluted earnings $ 0.49 $ 1.92 $ 0.63 $ 0.88 (shares in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Weighted average common shares outstanding Fiscal Year 2019 Basic 47.6 47.7 47.7 47.7 Diluted 48.2 48.0 48.1 48.1 Fiscal Year 2018 Basic 47.1 47.2 47.2 47.4 Diluted 47.3 47.6 47.7 48.0 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019USD ($)facility | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Summary of significant accounting policies | |||
Discounts, rebates, returns and allowances | $ 22.6 | $ 26.5 | $ 23.8 |
Research and development expenditures | 23.3 | 19.3 | 16.9 |
Inventory accounted under method other than LIFO | 173.2 | 138.6 | |
Capitalized software amortization expense | 6.1 | 5.1 | $ 5.2 |
Carrying value of computer software | $ 123.8 | $ 101.8 | |
Number of former operating facility site that the liability for future costs is discounted to present value (facility) | facility | 1 | ||
Liability for future costs discount amortization period | 20 years | ||
Environmental expenditures, discount rate | 3.00% | 3.00% | |
Environmental expenditures, liability | $ 11 | $ 11 | |
Customer | Sales Revenue | Arconic | |||
Summary of significant accounting policies | |||
Concentration risk | 11.00% | 12.00% | 11.00% |
Customer | Accounts Receivable | Arconic | |||
Summary of significant accounting policies | |||
Concentration risk | 12.00% | ||
Minimum | |||
Summary of significant accounting policies | |||
Ownership interest percentage by parent | 20.00% | ||
Minimum | Computer software | |||
Summary of significant accounting policies | |||
Estimated useful life | 3 years | ||
Minimum | Intangible Assets | |||
Summary of significant accounting policies | |||
Estimated useful life | 5 years | ||
Maximum | |||
Summary of significant accounting policies | |||
Ownership interest percentage by parent | 50.00% | ||
Maximum | Computer software | |||
Summary of significant accounting policies | |||
Estimated useful life | 7 years | ||
Maximum | Intangible Assets | |||
Summary of significant accounting policies | |||
Estimated useful life | 30 years |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements Recent Accounting Pronouncements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 01, 2019 | Jul. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of sales | $ (1,935.4) | $ (1,775.4) | $ (1,496.8) | ||
Selling, general and administrative expense | (203.4) | (193) | (176.1) | ||
Other income (expense), net | $ 0.6 | (0.8) | (21.5) | ||
Cumulative adjustment upon adoption of ASU 2017-12 | $ 0 | ||||
Reinvested Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative adjustment upon adoption of ASU 2017-12 | 1 | ||||
Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cost of sales | 0.1 | 16.5 | |||
Selling, general and administrative expense | 2 | 7.8 | |||
Accounting Standards Update 2017-12 | Reinvested Earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative adjustment upon adoption of ASU 2017-12 | $ 1 | ||||
Reclassified from Cost of Goods Sold | Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other income (expense), net | 0.1 | 16.5 | |||
Reclassified from Selling General and Administrative Expenses | Accounting Standards Update 2017-07 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other income (expense), net | $ 2 | $ 7.8 | |||
Minimum | Subsequent Event | Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease, right-of-use asset | $ 51 | ||||
Operating lease, liability | 51 | ||||
Maximum | Subsequent Event | Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating lease, right-of-use asset | 57 | ||||
Operating lease, liability | $ 57 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 12 Months Ended | |
Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Payment terms | 30 days | |
Contract liabilities | $ | $ 10.5 | $ 10.4 |
Number of reportable segments | segment | 2 |
Revenue - Summary of Revenue by
Revenue - Summary of Revenue by End-use Markets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 641.4 | $ 609.9 | $ 556.5 | $ 572.4 | $ 618 | $ 572.2 | $ 487.8 | $ 479.8 | $ 2,380.2 | $ 2,157.7 | $ 1,797.6 |
Aerospace and Defense | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,327.9 | 1,182.3 | 973.3 | ||||||||
Medical | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 205 | 175.3 | 125.5 | ||||||||
Energy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 181.7 | 146.5 | 138 | ||||||||
Transportation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 157.7 | 157 | 143.9 | ||||||||
Industrial and Consumer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 371.5 | 364.9 | 298.2 | ||||||||
Distribution | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 136.4 | $ 131.7 | $ 118.7 |
Revenue - Summary of Revenue _2
Revenue - Summary of Revenue by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 641.4 | $ 609.9 | $ 556.5 | $ 572.4 | $ 618 | $ 572.2 | $ 487.8 | $ 479.8 | $ 2,380.2 | $ 2,157.7 | $ 1,797.6 |
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,606.7 | 1,429.4 | 1,198.3 | ||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 387.2 | 383 | 349.6 | ||||||||
Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 196.3 | 174.8 | 127.2 | ||||||||
Mexico | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 81.6 | 61.7 | 48.5 | ||||||||
Canada | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 67.8 | 65.7 | 47.7 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 40.6 | $ 43.1 | $ 26.3 |
Acquisitions and Divestiture -
Acquisitions and Divestiture - Narrative (Details) $ in Millions | Oct. 22, 2018USD ($) | Feb. 21, 2018USD ($) | Jun. 29, 2017USD ($)transaction | Feb. 28, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Business Acquisition [Line Items] | |||||||
Asset purchase price, net of cash acquired | $ 79 | $ 13.3 | $ 35.3 | ||||
Goodwill | 326.4 | 268.7 | 263.4 | ||||
Proceeds from sale of business | $ 0 | 0 | $ 12 | ||||
Discontinued Operations, Disposed of by Sale | Specialty Steel Supply | |||||||
Business Acquisition [Line Items] | |||||||
Number of separate transactions to complete the divestiture | transaction | 2 | ||||||
Proceeds from sale of business | $ 12 | ||||||
Pre tax loss from divestiture | $ 3.2 | ||||||
LPW Technology Ltd | |||||||
Business Acquisition [Line Items] | |||||||
Asset purchase price, net of cash acquired | $ 79 | ||||||
Accounts receivable | 2.1 | ||||||
Inventory | 4.5 | ||||||
Other current assets | 0.5 | ||||||
Property and equipment | 11.9 | ||||||
Goodwill | 59 | ||||||
Accounts payable | 4.4 | ||||||
Current liabilities | 2.5 | ||||||
Other liabilities | 3.5 | ||||||
Identifiable intangible assets | $ 11.4 | ||||||
MB CalRAM LLC | |||||||
Business Acquisition [Line Items] | |||||||
Property and equipment | $ 2.6 | ||||||
Goodwill | 5.3 | ||||||
Asset purchase price | 13.3 | ||||||
Working capital acquired | 0.2 | ||||||
Identifiable intangible assets | $ 5.2 | ||||||
Puris LLC | |||||||
Business Acquisition [Line Items] | |||||||
Property and equipment | 6.5 | ||||||
Goodwill | 18.6 | ||||||
Asset purchase price | $ 35.3 | ||||||
Working capital acquired | 1.7 | ||||||
Identifiable intangible assets | $ 8.5 |
Earnings per Common Share - Sch
Earnings per Common Share - Schedule of Calculations of Basic and Diluted Earnings from Continuing Operations per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |||||||||||||||
Net income | $ 167 | $ 188.5 | $ 47 | ||||||||||||
Less: earnings and dividends allocated to participating securities | (1.9) | (1.7) | (0.3) | ||||||||||||
Earnings available for common shareholders used in calculation of basic earnings per share | $ 165.1 | $ 186.8 | $ 46.7 | ||||||||||||
Weighted average number of common shares outstanding, basic (in shares) | 47.7 | 47.7 | 47.7 | 47.6 | 47.4 | 47.2 | 47.2 | 47.1 | 47.7 | 47.2 | 47 | ||||
Basic earnings per common share (in dollars per share) | $ 1.01 | $ 1.06 | $ 0.73 | $ 0.66 | $ 0.90 | $ 0.63 | $ 1.93 | $ 0.49 | $ 3.46 | $ 3.96 | $ 0.99 | ||||
Earnings available for common shareholders used in calculation of diluted earnings per share | $ 165.1 | $ 186.8 | $ 46.7 | ||||||||||||
Effect of shares issuable under share-based compensation plans (in shares) | 0.4 | 0.4 | 0.1 | ||||||||||||
Weighted average number of common shares outstanding, diluted (in shares) | 48.1 | 48.1 | 48 | 48.2 | 48 | 47.7 | 47.6 | 47.3 | 48.1 | 47.6 | 47.1 | ||||
Diluted earnings per common share (in dollars per share) | $ 1 | $ 1.05 | $ 0.73 | $ 0.65 | $ 0.88 | $ 0.63 | $ 1.92 | $ 0.49 | $ 3.43 | $ 3.92 | $ 0.99 |
Earnings per Common Share - S_2
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 | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
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 | |||
Stock options (in shares) | 0.7 | 0.7 | 1.9 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 169.8 | $ 157.5 |
Work in process | 425.7 | 372.5 |
Finished and purchased products | 192.2 | 159.2 |
Total inventory | $ 787.7 | $ 689.2 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |||
Inventory LIFO reserve | $ 178.4 | $ 210.3 | |
Current cost of LIFO inventory | 793 | 760.8 | |
Decrease in cost of sales | $ 0 | $ 0.6 | $ 0 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total at cost | $ 2,882.8 | $ 2,747.4 |
Less: accumulated depreciation and amortization | 1,516.6 | 1,434 |
Total property, plant, and equipment | 1,366.2 | 1,313.4 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Total at cost | 35.6 | 34.8 |
Buildings and building equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total at cost | 512.9 | 500 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total at cost | 2,183.6 | 2,129 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total at cost | $ 150.7 | $ 83.6 |
Property, Plant and Equipment_2
Property, Plant and Equipment - Schedule of Estimated Useful Lives of Depreciable Assets (Details) | 12 Months Ended |
Jun. 30, 2019 | |
Buildings and building equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Life (in Years) | 10 years |
Buildings and building equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Life (in Years) | 45 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Life (in Years) | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Life (in Years) | 30 years |
Property, Plant and Equipment_3
Property, Plant and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 108.1 | $ 104.7 | $ 105.8 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, Net - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill [Line Items] | |||
Goodwill impairment | $ 0 | $ 0 | |
Amortization expense | 7,300,000 | $ 6,800,000 | $ 6,800,000 |
Estimated annual amortization expense for 2020 | 7,600,000 | ||
Estimated annual amortization expense for 2021 | 7,600,000 | ||
Estimated annual amortization expense for 2022 | 7,600,000 | ||
Estimated annual amortization expense for 2023 | 7,600,000 | ||
Estimated annual amortization expense for 2024 | $ 7,600,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, Net - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Changes in the carrying amount of goodwill by reportable segment | ||
Goodwill gross, beginning balance | $ 315.9 | $ 310.6 |
Accumulated impairment losses, beginning balance | (47.2) | (47.2) |
Total goodwill net, beginning balance | 268.7 | 263.4 |
Acquisition | 57.7 | 5.3 |
Goodwill gross, ending balance | 373.6 | 315.9 |
Accumulated impairment losses, ending balance | (47.2) | (47.2) |
Total goodwill net, ending balance | 326.4 | 268.7 |
Specialty Alloys Operations | ||
Changes in the carrying amount of goodwill by reportable segment | ||
Total goodwill net, beginning balance | 195.5 | 195.5 |
Acquisition | 0 | 0 |
Total goodwill net, ending balance | 195.5 | 195.5 |
Performance Engineered Products | ||
Changes in the carrying amount of goodwill by reportable segment | ||
Total goodwill net, beginning balance | 73.2 | 67.9 |
Acquisition | 57.7 | 5.3 |
Total goodwill net, ending balance | $ 130.9 | $ 73.2 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, Net - Schedule of Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Other intangible assets | ||
Gross Carrying Amount | $ 129.3 | $ 117.9 |
Accumulated Amortization | (62.1) | (54.6) |
Total intangible assets, net | 67.2 | 63.3 |
Trademarks and trade names | ||
Other intangible assets | ||
Gross Carrying Amount | 33.5 | 33.5 |
Accumulated Amortization | (24.3) | (23.2) |
Total intangible assets, net | $ 9.2 | 10.3 |
Trademarks and trade names | Minimum | ||
Other intangible assets | ||
Useful Life (in Years) | 15 years | |
Trademarks and trade names | Maximum | ||
Other intangible assets | ||
Useful Life (in Years) | 30 years | |
Customer relationships | ||
Other intangible assets | ||
Gross Carrying Amount | $ 76.9 | 76.9 |
Accumulated Amortization | (36) | (30.8) |
Total intangible assets, net | $ 40.9 | 46.1 |
Customer relationships | Minimum | ||
Other intangible assets | ||
Useful Life (in Years) | 10 years | |
Customer relationships | Maximum | ||
Other intangible assets | ||
Useful Life (in Years) | 15 years | |
Non-compete agreements | ||
Other intangible assets | ||
Useful Life (in Years) | 5 years | |
Gross Carrying Amount | $ 0.2 | 0.2 |
Accumulated Amortization | (0.1) | (0.1) |
Total intangible assets, net | $ 0.1 | 0.1 |
Technology | ||
Other intangible assets | ||
Useful Life (in Years) | 15 years | |
Gross Carrying Amount | $ 7.3 | 7.3 |
Accumulated Amortization | (1) | (0.5) |
Total intangible assets, net | 6.3 | 6.8 |
Patents | ||
Other intangible assets | ||
Gross Carrying Amount | 11.4 | 0 |
Accumulated Amortization | (0.7) | 0 |
Total intangible assets, net | $ 10.7 | $ 0 |
Patents | Minimum | ||
Other intangible assets | ||
Useful Life (in Years) | 14 years | |
Patents | Maximum | ||
Other intangible assets | ||
Useful Life (in Years) | 20 years |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Accrued compensation and benefits | $ 71.2 | $ 83.3 |
Derivative financial instruments | 16.7 | 0 |
Accrued postretirement benefits | 14.7 | 15.4 |
Deferred revenue | 10.5 | 10.4 |
Accrued interest expense | 10.4 | 10.4 |
Accrued income taxes | 4.2 | 1.4 |
Accrued pension liabilities | 3.4 | 3.3 |
Other | 26.5 | 24.4 |
Total accrued liabilities | $ 157.6 | $ 148.6 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Mar. 31, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2018 |
Long-term debt outstanding | |||||
Aggregate maturities of long-term debt, 2020 | $ 0 | ||||
Aggregate maturities of long-term debt, 2021 | 0 | ||||
Aggregate maturities of long-term debt, 2022 | 250,000,000 | ||||
Aggregate maturities of long-term debt, 2023 | 300,000,000 | ||||
Aggregate maturities of long-term debt, 2024 | 0 | ||||
Interest costs | 31,100,000 | $ 31,100,000 | $ 31,100,000 | ||
Interest costs, capitalized | 5,100,000 | $ 2,800,000 | $ 1,300,000 | ||
Credit Agreement | |||||
Long-term debt outstanding | |||||
Maximum borrowing capacity | $ 400,000,000 | ||||
Letters of credit issued | 6,000,000 | ||||
Short-term credit agreement borrowings | 19,700,000 | ||||
Credit Agreement available for future borrowings | $ 374,300,000 | ||||
Borrowing rate | 3.90% | ||||
Credit Agreement | LIBOR | |||||
Long-term debt outstanding | |||||
Interest rate margin | 1.25% | ||||
Credit Agreement | LIBOR | Minimum | |||||
Long-term debt outstanding | |||||
Interest rate margin | 1.00% | ||||
Credit Agreement | LIBOR | Maximum | |||||
Long-term debt outstanding | |||||
Interest rate margin | 1.75% | ||||
Credit Agreement | Base Rate | |||||
Long-term debt outstanding | |||||
Interest rate margin | 0.25% | ||||
Credit Agreement | Base Rate | Minimum | |||||
Long-term debt outstanding | |||||
Interest rate margin | 0.00% | ||||
Credit Agreement | Base Rate | Maximum | |||||
Long-term debt outstanding | |||||
Interest rate margin | 0.75% | ||||
Letter of Credit | |||||
Long-term debt outstanding | |||||
Commitment fee rate | 0.20% | ||||
Letter of credit fees | 1.25% | ||||
Required interest coverage ratio | 3.50 | ||||
Letter of Credit | Minimum | |||||
Long-term debt outstanding | |||||
Commitment fee rate | 0.125% | ||||
Letter of credit fees | 1.00% | ||||
Letter of Credit | Maximum | |||||
Long-term debt outstanding | |||||
Commitment fee rate | 0.40% | ||||
Letter of credit fees | 1.75% | ||||
Required debt to capital ratio | 0.55 |
Debt - Schedule of Long-term De
Debt - Schedule of Long-term Debt Outstanding (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 |
Revolving Credit Agreement | ||
Total | $ 550,600,000 | $ 545,700,000 |
Less: amounts due within one year | 0 | 0 |
Long-term debt, net of current portion | $ 550,600,000 | 545,700,000 |
Senior unsecured notes, 5.20% due July 2021 (face value of $250.0 million at June 30, 2019 and 2018) | ||
Revolving Credit Agreement | ||
Interest rate | 5.20% | |
Face amount | $ 250,000,000 | 250,000,000 |
Total | $ 251,200,000 | 246,600,000 |
Senior unsecured notes, 4.45% due March 2023 (face value of $300.0 million at June 30, 2019 and 2018) | ||
Revolving Credit Agreement | ||
Interest rate | 4.45% | |
Face amount | $ 300,000,000 | 300,000,000 |
Total | $ 299,400,000 | $ 299,100,000 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage increase in funding level to shift assets from return seeking to liability hedging | 5.00% | ||
Percentage change in assets allocation from assets seeking to liability hedging due to increase in funding level | 4.00% | ||
Return Seeking Asset | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan's current allocation policy | 60.00% | ||
Liability Matching Assets | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan's current allocation policy | 40.00% | ||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 8.7 | $ 10 | |
Pension Benefits | Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | 5.5 | 6.7 | $ 100 |
Expected contributions for next fiscal year | 6.2 | ||
Pension Benefits | Nonqualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | 3.2 | 3.3 | 3.5 |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Effect of one percentage point increase in the assumed health care cost trend rate on service and interest cost components | 0.1 | ||
Effect of one percentage point increase in the assumed health care cost trend rate on postretirement benefit obligation | 2.6 | ||
Effect of one percentage point decrease in the assumed health care cost trend rate on service and interest cost components | 0.1 | ||
Effect of one percentage point decrease in the assumed health care cost trend rate on postretirement benefit obligation | 2.3 | ||
Employer contributions | $ 3.2 | 3.3 | |
Other Benefits | Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan's current allocation policy | 70.00% | ||
Other Benefits | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan's current allocation policy | 23.00% | ||
Other Benefits | Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan's current allocation policy | 7.00% | ||
Defined Contribution Retirement and Savings Plans | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions to defined contribution retirement and savings plans | $ 24.8 | $ 22.6 | $ 16.7 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Schedule of Reconciliation of Benefit Obligations, Plan Assets and Funded Status of the Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | |||
Fair value of plan assets at end of year | |||
Pension Benefits | |||
Change in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | 1,264.5 | 1,369.1 | |
Service cost | 9.2 | 9.5 | $ 20.5 |
Interest cost | 53 | 52.1 | 50.3 |
Benefits paid | (88.7) | (89.8) | |
Actuarial loss (gains) | 101.3 | (76.6) | |
Special termination benefits | 0 | 0.2 | |
Projected benefit obligation at end of year | 1,339.3 | 1,264.5 | 1,369.1 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 972.5 | 987.6 | |
Actual return | 72.2 | 64.7 | |
Benefits paid | (88.7) | (89.8) | |
Contributions | 8.7 | 10 | |
Fair value of plan assets at end of year | 964.7 | 972.5 | 987.6 |
Funded status of the plans | (374.6) | (292) | |
Amounts recognized in the consolidated balance sheets: | |||
Other assets - noncurrent | 0 | 0.1 | |
Accrued liabilities - current | (3.4) | (3.3) | |
Accrued pension and postretirement benefits - noncurrent | (371.2) | (288.8) | |
Amounts recognized in the consolidated balance sheets | (374.6) | (292) | |
Other Benefits | |||
Change in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | 241.5 | 255.1 | |
Service cost | 2.3 | 2.6 | 3.6 |
Interest cost | 10.1 | 9.5 | 9.2 |
Benefits paid | (12.6) | (13) | |
Actuarial loss (gains) | 14.5 | (12.7) | |
Special termination benefits | 0 | 0 | |
Projected benefit obligation at end of year | 255.8 | 241.5 | 255.1 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 117.9 | 117 | |
Actual return | 10.5 | 10.6 | |
Benefits paid | (12.6) | (13) | |
Contributions | 3.2 | 3.3 | |
Fair value of plan assets at end of year | 119 | 117.9 | $ 117 |
Funded status of the plans | (136.8) | (123.6) | |
Amounts recognized in the consolidated balance sheets: | |||
Other assets - noncurrent | 0 | 0 | |
Accrued liabilities - current | (14.7) | (15.4) | |
Accrued pension and postretirement benefits - noncurrent | (122.1) | (108.2) | |
Amounts recognized in the consolidated balance sheets | $ (136.8) | $ (123.6) |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Schedule of Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Pension Benefits | ||
Amounts recognized in accumulated other comprehensive loss: | ||
Net actuarial loss | $ 445.7 | $ 362.1 |
Prior service cost (credit) | 14.1 | 16.2 |
Total | 459.8 | 378.3 |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss consist of: | ||
Net actuarial loss (gain) | 94.1 | (75) |
Amortization of net loss | (10.4) | (13.5) |
Amortization of prior service (cost) benefit | (2.1) | (2.1) |
Total, before tax effect | 81.6 | (90.6) |
Additional information: | ||
Accumulated benefit obligation for all pension plans | 1,331.6 | 1,257.8 |
Other Benefits | ||
Amounts recognized in accumulated other comprehensive loss: | ||
Net actuarial loss | 42.3 | 32.9 |
Prior service cost (credit) | (17.9) | (23.1) |
Total | 24.4 | 9.8 |
Other changes in plan assets and benefit obligations recognized in other comprehensive loss consist of: | ||
Net actuarial loss (gain) | 10.9 | (16.3) |
Amortization of net loss | (1.6) | (2.9) |
Amortization of prior service (cost) benefit | 5.2 | 5.2 |
Total, before tax effect | $ 14.5 | $ (14) |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Schedule of Amounts Recognized in the Accumulated other Comprehensive Loss (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 1,339.3 | $ 1,264.4 |
Fair value of plan assets | 964.7 | 972.4 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | 255.9 | 241.5 |
Fair value of plan assets | $ 119 | $ 117.9 |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Schedule of Projected Benefit Obligations in Excess of Plan Assets and Accumulated Benefit Obligations in Excess of Plan Assets (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | $ 1,331.5 | $ 1,257.7 |
Fair value of plan assets | 964.7 | 972.4 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated benefit obligation | 255.9 | 241.5 |
Fair value of plan assets | $ 119 | $ 117.9 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Schedule of Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 9.2 | $ 9.5 | $ 20.5 |
Interest cost | 53 | 52.1 | 50.3 |
Expected return on plan assets | (64.9) | (65.9) | (65.1) |
Amortization of net loss | 10.4 | 13.5 | 37.8 |
Amortization of prior service cost (benefit) | 2.1 | 2.1 | 1.8 |
Curtailment loss | 0 | 0 | 0.5 |
Net periodic benefit costs | 9.8 | 11.3 | 45.8 |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2.3 | 2.6 | 3.6 |
Interest cost | 10.1 | 9.5 | 9.2 |
Expected return on plan assets | (7) | (6.9) | (6.9) |
Amortization of net loss | 1.6 | 2.9 | 3.2 |
Amortization of prior service cost (benefit) | (5.2) | (5.2) | (6.5) |
Curtailment loss | 0 | 0 | 0 |
Net periodic benefit costs | $ 1.8 | $ 2.9 | $ 2.6 |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Schedule of Weighted-average Assumptions Used to Determine Benefit Obligation (Details) | Jun. 30, 2019 | Jun. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase | 3.39% | 3.44% |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.61% | 4.32% |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.60% | 4.32% |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Schedule of Weighted-average Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Long-term rate of compensation increase | 3.39% | 3.44% | 3.50% |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.32% | 3.92% | 3.91% |
Expected long-term rate of return on plan assets | 6.88% | 6.87% | 6.88% |
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.32% | 3.89% | 3.86% |
Expected long-term rate of return on plan assets | 6.25% | 6.25% | 6.25% |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Schedule of Expected Health Care Cost Trend Rates (Details) | Jun. 30, 2019 | Jun. 30, 2018 |
Retirement Benefits [Abstract] | ||
Assumed health care cost trend rate | 6.25% | 6.50% |
Rate to which the cost trend rate is assumed to decline and remain (the ultimate trend rate) | 5.00% | 5.00% |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits - Schedule of Amounts in Other Comprehensive Loss that are Expected to be Recognized as Components of Net Periodic Benefit Cost (Details) $ in Millions | Jun. 30, 2019USD ($) |
Amounts in other comprehensive loss that are expected to recognized as components of net periodic benefit cost in the next fiscal year | |
Amortization of prior service cost (benefit) | $ (1.8) |
Amortization of net actuarial loss | 18 |
Amortization of accumulated other comprehensive loss (gain) | 16.2 |
Pension Benefits | |
Amounts in other comprehensive loss that are expected to recognized as components of net periodic benefit cost in the next fiscal year | |
Amortization of prior service cost (benefit) | 2.1 |
Amortization of net actuarial loss | 15.5 |
Amortization of accumulated other comprehensive loss (gain) | 17.6 |
Other Benefits | |
Amounts in other comprehensive loss that are expected to recognized as components of net periodic benefit cost in the next fiscal year | |
Amortization of prior service cost (benefit) | (3.9) |
Amortization of net actuarial loss | 2.5 |
Amortization of accumulated other comprehensive loss (gain) | $ (1.4) |
Pension and Other Postretire_13
Pension and Other Postretirement Benefits - Schedule of Weighted-average Asset Allocations by Asset Category (Details) - Pension Benefits | Jun. 30, 2019 | Jun. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 53.70% | 55.70% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 46.30% | 44.30% |
Pension and Other Postretire_14
Pension and Other Postretirement Benefits - Schedule of Fair Values of Pension Plan by Assets Category (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 964.7 | 972.5 | $ 987.6 |
Pension Benefits | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 14.9 | 17.1 | |
Pension Benefits | Domestic and international equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 132.6 | 156.4 | |
Pension Benefits | Commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 371.4 | 365.3 | |
Pension Benefits | Limited partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 45.4 | 43.3 | |
Pension Benefits | Government agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 176.8 | 155.1 | |
Pension Benefits | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 220.2 | 226.3 | |
Pension Benefits | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1.9 | 1.8 | |
Pension Benefits | Mortgage/asset backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1.5 | 7.2 | |
Pension Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 144.7 | 162.4 | |
Pension Benefits | Level 1 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 5.4 | 2.5 | |
Pension Benefits | Level 1 | Domestic and international equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 132.6 | 156.4 | |
Pension Benefits | Level 1 | Commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 1 | Limited partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 1 | Government agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4.8 | 3.5 | |
Pension Benefits | Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 1 | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1.9 | 0 | |
Pension Benefits | Level 1 | Mortgage/asset backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 403.2 | 399.7 | |
Pension Benefits | Level 2 | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 9.5 | 14.6 | |
Pension Benefits | Level 2 | Domestic and international equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 2 | Commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 2 | Limited partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 2 | Government agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 172 | 151.6 | |
Pension Benefits | Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 220.2 | 226.3 | |
Pension Benefits | Level 2 | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Level 2 | Mortgage/asset backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 1.5 | 7.2 | |
Pension Benefits | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 416.8 | 410.4 | |
Pension Benefits | Net Asset Value | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Net Asset Value | Domestic and international equities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Net Asset Value | Commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 371.4 | 365.3 | |
Pension Benefits | Net Asset Value | Limited partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 45.4 | 43.3 | |
Pension Benefits | Net Asset Value | Government agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Net Asset Value | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Pension Benefits | Net Asset Value | Mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 1.8 | |
Pension Benefits | Net Asset Value | Mortgage/asset backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 0 | $ 0 |
Pension and Other Postretire_15
Pension and Other Postretirement Benefits - Schedule of Fair Values of Other Postretirement Benefit Plans by Asset Category (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | |||
Other Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 119 | 117.9 | $ 117 |
Other Benefits | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 35.3 | 37.6 | |
Other Benefits | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 83.7 | 80.3 | |
Other Benefits | Commingled funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 83.7 | 80.3 | |
Other Benefits | Commingled funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Commingled funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Commingled funds | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 83.7 | 80.3 | |
Other Benefits | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 27.1 | 23 | |
Other Benefits | Short-term investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Short-term investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 27.1 | 23 | |
Other Benefits | Short-term investments | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Government agency bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4.8 | 8.7 | |
Other Benefits | Government agency bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Government agency bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 4.8 | 8.7 | |
Other Benefits | Government agency bonds | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3.4 | 5.4 | |
Other Benefits | Corporate bonds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | 0 | |
Other Benefits | Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 3.4 | 5.4 | |
Other Benefits | Corporate bonds | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 0 | 0 | |
Other Benefits | Mortgage/asset backed securities and other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.5 | ||
Other Benefits | Mortgage/asset backed securities and other | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0 | ||
Other Benefits | Mortgage/asset backed securities and other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | 0.5 | ||
Other Benefits | Mortgage/asset backed securities and other | Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of pension plan assets | $ 0 |
Pension and Other Postretire_16
Pension and Other Postretirement Benefits - Schedule of Estimated Future Benefit Payments (Details) $ in Millions | Jun. 30, 2019USD ($) |
Pension Benefits | |
Estimated future benefit payments | |
2020 | $ 83 |
2021 | 82.4 |
2022 | 82.6 |
2023 | 82.4 |
2024 | 81.8 |
2025-2029 | 395.5 |
Other Benefits | |
Estimated future benefit payments | |
2020 | 14.7 |
2021 | 15.1 |
2022 | 15.1 |
2023 | 15.1 |
2024 | 15.1 |
2025-2029 | $ 73.1 |
Contingencies and Commitments -
Contingencies and Commitments - Environmental (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
(Decrease) increase made by the company in the liabilities of environmental remediation costs | $ 0 | $ 0 | $ 100,000 |
Environmental remediation liability | $ 16,100,000 | $ 16,100,000 |
Contingencies and Commitments_2
Contingencies and Commitments - Other (Details) $ in Millions | Jun. 30, 2019USD ($) |
Fiscal year 2020 | |
Purchase agreements | |
Aggregate purchase commitments, due in 2020 | $ 212.7 |
Fiscal year 2021 | |
Purchase agreements | |
Aggregate purchase commitments, due in 2021 | 42.6 |
Fiscal year 2022 | |
Purchase agreements | |
Aggregate purchase commitments, due in 2022 | 30.1 |
Fiscal year 2023 | |
Purchase agreements | |
Aggregate purchase commitments, due in 2023 | 15.1 |
Raw materials | |
Purchase agreements | |
Aggregate purchase commitments | $ 300.5 |
Operating Leases - Narrative (D
Operating Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Leases, Operating [Abstract] | |||
Rent expense total | $ 16.1 | $ 13.4 | $ 13.2 |
Future minimum payments for non-cancellable operating leases, 2020 | 12.7 | ||
Future minimum payments for non-cancellable operating leases, 2021 | 10.4 | ||
Future minimum payments for non-cancellable operating leases, 2022 | 8.3 | ||
Future minimum payments for non-cancellable operating leases, 2023 | 6.6 | ||
Future minimum payments for non-cancellable operating leases, 2024 | 5 | ||
Future minimum payments for non-cancellable operating leases, thereafter | $ 23.5 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Marketable securities | ||
Derivative financial instruments | $ 12.5 | $ 35.2 |
Total assets | 38.1 | |
Liabilities: | ||
Derivative financial instruments | 28 | 3.4 |
Level 2 | ||
Marketable securities | ||
Derivative financial instruments | 12.5 | 35.2 |
Total assets | 38.1 | |
Liabilities: | ||
Derivative financial instruments | $ 28 | 3.4 |
Auction Rate Securities | ||
Marketable securities | ||
Municipal auction rate securities | 2.9 | |
Auction Rate Securities | Level 2 | ||
Marketable securities | ||
Municipal auction rate securities | $ 2.9 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments not Recorded at Fair Value in the Financial Statements (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Carrying Value | ||
Carrying amounts and estimated fair values of financial instruments not recorded at fair value | ||
Long-term debt | $ 550.6 | $ 545.7 |
Company-owned life insurance | 17.9 | 16.4 |
Fair Value | ||
Carrying amounts and estimated fair values of financial instruments not recorded at fair value | ||
Long-term debt | 560.6 | 558.3 |
Company-owned life insurance | $ 17.9 | $ 16.4 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jun. 30, 2019USD ($)plan$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of share-based compensation plans (plan) | plan | 2 | |||
Compensation cost | $ 17.6 | $ 17.6 | $ 13 | |
Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 3.6 | $ 5 | $ 4.7 | |
Weighted average grant date fair value (in dollars per share) | $ / shares | $ 18.35 | $ 11.65 | $ 10.81 | |
Unvested stock option cost | $ 1.4 | |||
Stock option weighted average remaining life | 1 year 1 month 1 day | |||
Options outstanding (in shares) | shares | 2,126,289 | 2,223,261 | 2,392,428 | 1,701,502 |
Stock options | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period | 1 year | |||
Stock options | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period | 3 years | |||
Expiration term | 10 years | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 1.4 | |||
Performance Shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target shares awarded percentage | 0.00% | |||
Performance Shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target shares awarded percentage | 200.00% | |||
Total Stockholder Return Awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 1.7 | $ 2.8 | $ 2 | |
Shares vesting period | 3 years | |||
Total Stockholder Return Awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target shares awarded percentage | 0.00% | |||
Total Stockholder Return Awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target shares awarded percentage | 200.00% | |||
Omnibus Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for grant (in shares) | shares | 2,132,417 | |||
Omnibus Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | shares | 1,921,219 | |||
Omnibus Plan | Performance-based restricted stock unit awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period | 0 years | |||
Omnibus Plan | Performance-based restricted stock unit awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period | 2 years | |||
Omnibus Plan | Time-based restricted stock unit awards | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period | 0 years | |||
Omnibus Plan | Time-based restricted stock unit awards | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vesting period | 3 years | |||
Omnibus Plan | Restricted stock unit awards | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 9.8 | 8.8 | 5 | |
Unvested stock option cost | $ 6.5 | |||
Stock option weighted average remaining life | 1 year 18 days | |||
Director's Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost | $ 1.1 | $ 1 | $ 1.2 | |
Shares available for grant (in shares) | shares | 518,801 | |||
Shares vesting period | 1 year | |||
Unvested stock option cost | $ 0.3 | |||
Stock option weighted average remaining life | 3 months 18 days | |||
Percentage of Director's annual retainer paid in stock instead of cash | 50.00% | |||
Percentage of Director's committee chair fees paid in stock instead of cash | 100.00% | |||
Director's Plan | Every Three Months | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares vesting following grant date | 25.00% | |||
Director's Plan | 1/4 of the units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock vesting period with reference to service term | 3 months | |||
Director's Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of Director's annual retainer paid in stock instead of cash | 50.00% | |||
Director's Plan | Stock options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | shares | 205,070 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Weighted-average Assumptions of Fair Value of Stock Options (Details) - Stock options | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 36.00% | 35.00% | 37.00% |
Dividend yield | 1.30% | 1.80% | 1.80% |
Risk-free interest rate | 2.80% | 1.80% | 1.10% |
Expected term (in years) | 5 years | 5 years | 5 years |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Number of Awards | |||
Exercised (in shares) | (96,514) | (362,571) | (95,089) |
Stock options | |||
Number of Awards | |||
Balance at the beginning of the period (in shares) | 2,223,261 | 2,392,428 | 1,701,502 |
Granted (in shares) | 124,977 | 252,545 | 907,141 |
Exercised (in shares) | (96,514) | (362,571) | (95,289) |
Forfeited (in shares) | (125,435) | (25,915) | (80,926) |
Expired (in shares) | (33,226) | (40,000) | |
Balance at the end of the period (in shares) | 2,126,289 | 2,223,261 | 2,392,428 |
Number of awards, exercisable (in shares) | 1,258,605 | ||
Weighted Average Exercise Price | |||
Balance at the beginning of the period (in dollars per share) | $ 42.88 | $ 42.27 | $ 43.35 |
Granted (in dollars per share) | 57.92 | 41.27 | 38.98 |
Exercised (in dollars per share) | 39.93 | 35.70 | 23.21 |
Forfeited (in dollars per share) | 40.17 | 45.27 | 44.35 |
Expired (in dollars per share) | 63.12 | 55.12 | |
Balance at the end of the period (in dollars per share) | 44.06 | $ 42.88 | $ 42.27 |
Weighted Average Exercise Price, Exercisable (in dollars per share) | $ 45.66 | ||
Additional disclosures | |||
Weighted Average Remaining Contractual Term | 6 years 1 month | ||
Weighted Average Remaining Contractual Term, Exercisable | 5 years 1 month | ||
Aggregate Intrinsic Value | $ 12.4 | ||
Aggregate Intrinsic Value, Exercisable | $ 5.8 |
Share-Based Compensation - Su_3
Share-Based Compensation - Summary of Outstanding and Exercisable Options by Exercise Price Range (Details) - Stock options | 12 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Exercise price range disclosures | |
Number of Awards, Outstanding (in shares) | shares | 2,126,289 |
Weighted Average Exercise Price (in dollars per share) | $ 44.06 |
Number Exercisable (in shares) | shares | 1,258,605 |
Weighted Average Exercise Price (in dollars per share) | $ 45.66 |
$17.29 - $20.00 | |
Exercise price range disclosures | |
Minimum Exercise Price Range (in dollars per share) | 17.29 |
Maximum Exercise Price Range (in dollars per share) | $ 20 |
Number of Awards, Outstanding (in shares) | shares | 14,166 |
Weighted Average Remaining Contractual Term (in Years) | 1 month 19 days |
Weighted Average Exercise Price (in dollars per share) | $ 17.29 |
Number Exercisable (in shares) | shares | 14,166 |
Weighted Average Exercise Price (in dollars per share) | $ 17.29 |
$20.01 - $30.00 | |
Exercise price range disclosures | |
Minimum Exercise Price Range (in dollars per share) | 20.01 |
Maximum Exercise Price Range (in dollars per share) | $ 30 |
Number of Awards, Outstanding (in shares) | shares | 167 |
Weighted Average Remaining Contractual Term (in Years) | 5 months 19 days |
Weighted Average Exercise Price (in dollars per share) | $ 24.62 |
Number Exercisable (in shares) | shares | 167 |
Weighted Average Exercise Price (in dollars per share) | $ 24.62 |
$30.01 - $40.00 | |
Exercise price range disclosures | |
Minimum Exercise Price Range (in dollars per share) | 30.01 |
Maximum Exercise Price Range (in dollars per share) | $ 40 |
Number of Awards, Outstanding (in shares) | shares | 918,282 |
Weighted Average Remaining Contractual Term (in Years) | 6 years 8 months 19 days |
Weighted Average Exercise Price (in dollars per share) | $ 38.41 |
Number Exercisable (in shares) | shares | 296,488 |
Weighted Average Exercise Price (in dollars per share) | $ 37.20 |
$40.01 - $50.00 | |
Exercise price range disclosures | |
Minimum Exercise Price Range (in dollars per share) | 40.01 |
Maximum Exercise Price Range (in dollars per share) | $ 50 |
Number of Awards, Outstanding (in shares) | shares | 513,090 |
Weighted Average Remaining Contractual Term (in Years) | 6 years 4 months 19 days |
Weighted Average Exercise Price (in dollars per share) | $ 41.94 |
Number Exercisable (in shares) | shares | 375,876 |
Weighted Average Exercise Price (in dollars per share) | $ 42.39 |
$50.01 - $59.53 | |
Exercise price range disclosures | |
Minimum Exercise Price Range (in dollars per share) | 50.01 |
Maximum Exercise Price Range (in dollars per share) | $ 59.53 |
Number of Awards, Outstanding (in shares) | shares | 680,584 |
Weighted Average Remaining Contractual Term (in Years) | 5 years 3 months 9 days |
Weighted Average Exercise Price (in dollars per share) | $ 53.84 |
Number Exercisable (in shares) | shares | 571,908 |
Weighted Average Exercise Price (in dollars per share) | $ 52.90 |
Share-Based Compensation - Su_4
Share-Based Compensation - Summary of Nonvested Stock Awards Activity (Details) - Restricted stock unit awards - Omnibus Plan - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Number of Awards | |||
Balance at the beginning of the period (in shares) | 572,028 | 392,477 | 188,469 |
Time-based granted (in shares) | 132,421 | 138,718 | 231,195 |
Performance-based granted (in shares) | 124,432 | 55,478 | |
Vested (in shares) | (175,554) | (62,215) | (44,873) |
Forfeited (in shares) | (54,560) | (21,384) | (37,792) |
Balance at the end of the period (in shares) | 474,335 | 572,028 | 392,477 |
Weighted-Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ 41.54 | $ 37.47 | $ 35.69 |
Time-based granted (in dollars per share) | 57.92 | 41.49 | 38.82 |
Performance-based granted (in dollars per share) | 50.99 | 36.18 | |
Vested (in dollars per share) | 38.39 | 35.35 | 34.24 |
Forfeited (in dollars per share) | 41.62 | 39.48 | 38.80 |
Balance at the end of the period (in dollars per share) | $ 44.66 | $ 41.54 | $ 37.47 |
Share-Based Compensation - Su_5
Share-Based Compensation - Summary of Director Stock Units Activity (Details) - Non-employee Board of Director's Plan - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Number of Units | |||
Balance at the beginning of the period (in shares) | 329,746 | 338,553 | 334,943 |
Granted (in shares) | 21,158 | 21,813 | 27,285 |
Distributed (in shares) | (32,352) | (35,489) | (30,022) |
Dividend equivalents (in shares) | 6,003 | 4,869 | 6,347 |
Balance at the end of the period (in shares) | 324,555 | 329,746 | 338,553 |
Weighted Average Grant Date Fair Value | |||
Balance at the beginning of the period (in dollars per share) | $ 33.05 | $ 42.47 | $ 38.64 |
Granted (in dollars per share) | 56 | 49.14 | 39.69 |
Distributed (in dollars per share) | 39.01 | 35.22 | 34.19 |
Dividend equivalents (in dollars per share) | 0 | 0 | 0 |
Balance at the end of the period (in dollars per share) | $ 35.25 | $ 33.05 | $ 42.47 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities - Narrative (Details) lb in Millions | 12 Months Ended | ||
Jun. 30, 2019USD ($)lb | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative contracts on a gross basis | $ 14,900,000 | ||
Derivative contracts liability on a gross basis | 30,400,000 | ||
Cash collateral held by counterparties | 0 | ||
Derivative losses included in AOCI | $ 8,400,000 | ||
Commodity contracts | Cash flow hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amounts of raw materials to be purchased from forward contracts (in lb) | lb | 19 | ||
Forward interest rate swaps | Cash flow hedges | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (loss) recorded recognized in interest expense | $ 300,000 | $ 300,000 | $ 300,000 |
Forward interest rate swaps | Fair Value Hedging | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total notional amounts of interest rate contracts | 150,000,000 | 150,000,000 | |
Forward interest rate swaps | Fair Value Hedging | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net gains (loss) recorded recognized in interest expense | $ (200,000) | $ 400,000 | $ 1,800,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities - Schedule of Fair Value and Location of Outstanding Derivative Contracts Recorded in Consolidated Balance Sheets (Details) - Designated as Hedging Instrument - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | $ 12.5 | $ 35.2 |
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 28 | 3.4 |
Forward interest rate swaps | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 1.9 | 0.1 |
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0 | 2.9 |
Foreign exchange contracts | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 0.8 | 0.4 |
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0 | 0.1 |
Commodity contracts | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 9.8 | 34.7 |
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 28 | 0.4 |
Other current assets | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 4.7 | 15.8 |
Other current assets | Forward interest rate swaps | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 0.3 | 0.1 |
Other current assets | Foreign exchange contracts | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 0.6 | 0.4 |
Other current assets | Commodity contracts | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 3.8 | 15.3 |
Other assets | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 7.8 | 19.4 |
Other assets | Forward interest rate swaps | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 1.6 | 0 |
Other assets | Foreign exchange contracts | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 0.2 | 0 |
Other assets | Commodity contracts | ||
Asset Derivatives: | ||
Derivatives designated as hedging instruments, asset | 6 | 19.4 |
Accrued liabilities | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 16.7 | 0.1 |
Accrued liabilities | Forward interest rate swaps | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0 | 0 |
Accrued liabilities | Foreign exchange contracts | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0 | 0.1 |
Accrued liabilities | Commodity contracts | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 16.7 | 0 |
Other liabilities | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 11.3 | 3.3 |
Other liabilities | Forward interest rate swaps | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0 | 2.9 |
Other liabilities | Foreign exchange contracts | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | 0 | 0 |
Other liabilities | Commodity contracts | ||
Liability Derivatives: | ||
Derivatives designated as hedging instruments, liability | $ 11.3 | $ 0.4 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities - Summary of the Gains (Losses) Related to Cash Flow Hedges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | $ 44.5 | $ 41 | $ 9.3 |
Amount of (Loss) Gain Reclassified from AOCI into Income | 6.5 | 3.2 | (21.9) |
Commodity contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | 45.4 | 41.4 | 9.4 |
Commodity contracts | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from AOCI into Income | 5.1 | 3.8 | (22.8) |
Commodity contracts | Net sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from AOCI into Income | 0 | 0 | |
Commodity contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from AOCI into Income | 0 | 0 | |
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in AOCI on Derivatives | (0.9) | (0.4) | (0.1) |
Foreign exchange contracts | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from AOCI into Income | 0 | 0 | |
Foreign exchange contracts | Net sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from AOCI into Income | 1 | (1) | 0.5 |
Foreign exchange contracts | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from AOCI into Income | 0 | 0 | |
Forward interest rate swaps | Cost of sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from AOCI into Income | 0 | 0 | |
Forward interest rate swaps | Net sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from AOCI into Income | 0 | 0 | |
Forward interest rate swaps | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of (Loss) Gain Reclassified from AOCI into Income | $ 0.4 | $ 0.4 | $ 0.4 |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities - Summary of Effect of Derivative Instruments on Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Net sales | $ 641.4 | $ 609.9 | $ 556.5 | $ 572.4 | $ 618 | $ 572.2 | $ 487.8 | $ 479.8 | $ 2,380.2 | $ 2,157.7 | $ 1,797.6 |
Cost of sales | 1,935.4 | 1,775.4 | 1,496.8 | ||||||||
Interest expense | 26 | 28.3 | 29.8 | ||||||||
Amount of gain (loss) reclassified from AOCI to income | 6.5 | 3.2 | (21.9) | ||||||||
Net Sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Total gain (loss) | 1 | (1) | |||||||||
Cost of sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Total gain (loss) | 5.1 | 3.8 | |||||||||
Interest expense | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Total gain (loss) | 0.4 | 0.4 | |||||||||
Commodity Contract | Net Sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI to income | 0 | 0 | |||||||||
Commodity Contract | Cost of sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI to income | 5.1 | 3.8 | (22.8) | ||||||||
Commodity Contract | Interest expense | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI to income | 0 | 0 | |||||||||
Foreign Exchange Contract | Net Sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI to income | 1 | (1) | 0.5 | ||||||||
Foreign Exchange Contract | Cost of sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI to income | 0 | 0 | |||||||||
Foreign Exchange Contract | Interest expense | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI to income | 0 | 0 | |||||||||
Forward interest rate swaps | Net Sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI to income | 0 | 0 | |||||||||
Hedged Item | 0 | 0 | |||||||||
Derivatives designated as hedging instruments | 0 | 0 | |||||||||
Forward interest rate swaps | Cost of sales | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI to income | 0 | 0 | |||||||||
Hedged Item | 0 | 0 | |||||||||
Derivatives designated as hedging instruments | 0 | 0 | |||||||||
Forward interest rate swaps | Interest expense | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of gain (loss) reclassified from AOCI to income | 0.4 | 0.4 | $ 0.4 | ||||||||
Hedged Item | 0.2 | (0.4) | |||||||||
Derivatives designated as hedging instruments | $ (0.2) | $ 0.4 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities - Summary of Amounts Recorded in Balance Sheet Related to Cumulative Basis Adjustment for Fair Value Interest Rate Risk Hedges (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Carrying amount of the hedged liabilities | $ 151.6 | $ 147.1 |
Cumulative amount of fair value loss (gain) in the carrying amount of the hedged liabilities | $ 1.6 | $ (2.9) |
Derivatives and Hedging Activ_8
Derivatives and Hedging Activities - Schedule of Changes in AOCI Associated with Derivative Hedging Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balances, beginning of period | $ 1,485.9 | $ 1,198.6 | $ 1,104.9 |
Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings | (1) | 0 | 0 |
Balances, end of period | 1,520.1 | 1,485.9 | 1,198.6 |
Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balances, beginning of period | 23.8 | (2.3) | (21.8) |
Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings | (1) | ||
Current period changes in fair value, net of tax | (32.7) | 26.9 | 5.8 |
Reclassification to earnings, net of tax | (4.9) | (0.8) | 13.7 |
Balances, end of period | $ (14.8) | $ 23.8 | $ (2.3) |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Before Income Taxes for the Company's Domestic and Foreign Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 204.2 | $ 140.3 | $ 56 |
Foreign | 11.8 | 19.9 | 14.2 |
Income before income taxes | $ 216 | $ 160.2 | $ 70.2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating loss carryforwards disclosures | |||
Amount of future tax benefits | $ 3,300,000 | ||
Reduction in valuation allowance amount | 700,000 | ||
Operating loss carryforward, income tax benefit | 0 | ||
Unrecognized tax benefits | 0 | $ 0 | $ 0 |
Provisional tax charge for transition tax | 5,000,000 | ||
Provisional tax benefit for re-measurement of deferred tax assets and liabilities | $ 74,600,000 | ||
Discrete income tax benefit in measurement period adjustments for transition tax | 200,000 | ||
Discrete income tax expense for re-measurement of deferred tax assets and liabilities | 200,000 | ||
Undistributed earnings of foreign subsidiaries | 77,800,000 | ||
Unrecognized tax expense, due to undistributed earnings of foreign subsidiaries not being repatriated | 300,000 | ||
State | |||
Operating loss carryforwards disclosures | |||
Net operating loss carryforwards expiring between 2020 and 2039 | $ 337,600,000 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision (Benefit) for Income Taxes from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Current: | |||
Federal | $ 23.2 | $ 22.6 | $ (24.5) |
State | 4.4 | 3.5 | (1.1) |
Foreign | 4.9 | 6.7 | 7.2 |
Total current | 32.5 | 32.8 | (18.4) |
Deferred: | |||
Federal | 13.1 | (66) | 38.7 |
State | 3.6 | 4.8 | 3.5 |
Foreign | (0.2) | 0.1 | (0.6) |
Total deferred | 16.5 | (61.1) | 41.6 |
Total income tax expense (benefit) | $ 49 | $ (28.3) | $ 23.2 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Income Taxes Computed at the U.S. Federal Income Tax Rate to the Company's Effective Income Tax Rate (Details) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reconciliation of income taxes computed at the U.S. Federal income tax rate to the Company's effective income tax rate | |||
Statutory federal income tax rate | 21.00% | 28.10% | 35.00% |
State income taxes, net of federal tax benefit | 3.00% | 2.60% | 2.00% |
Domestic manufacturing deduction | (0.00%) | (1.50%) | (3.00%) |
Research and development tax credit | (1.10%) | (1.40%) | (3.90%) |
Adjustments of prior years' income taxes | (0.90%) | 0.20% | 3.30% |
Remeasurement of U.S. deferred taxes | 0.10% | (49.30%) | 0.00% |
Transition tax on foreign earnings | (0.10%) | 3.10% | 0.00% |
Other, net | 0.70% | 0.50% | (0.40%) |
Effective income tax rate | 22.70% | (17.70%) | 33.00% |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred tax assets: | ||
Pensions | $ 86.9 | $ 66.8 |
Postretirement provisions | 35.7 | 33.7 |
Net operating loss carryforwards | 28.8 | 26.5 |
Derivatives and hedging activities | 4.1 | 0 |
Other | 32.1 | 29.4 |
Gross deferred tax assets | 187.6 | 156.4 |
Valuation allowances | (24.6) | (23.9) |
Total deferred tax assets | 163 | 132.5 |
Deferred tax liabilities: | ||
Depreciation | (249.5) | (235.2) |
Intangible assets | (11.3) | (11.9) |
Inventories | (36.1) | (30.5) |
Derivatives and hedging activities | (0.3) | (8.7) |
Other | (4.3) | (3.5) |
Total deferred tax liabilities | (301.5) | (289.8) |
Deferred tax liabilities, net | $ (138.5) | $ (157.3) |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Income and Expenses [Abstract] | |||
Unrealized gains on company owned life insurance contracts and investments held in rabbi trusts | $ 0.8 | $ 1.5 | $ 1.7 |
Interest income | 0.1 | 0.3 | 0.3 |
Foreign exchange | (0.4) | (0.7) | (0.4) |
Pension earnings, interest and deferrals | (0.1) | (2.1) | (23.8) |
Pension curtailment | 0 | 0 | (0.5) |
Other | 0.2 | 0.2 | 1.2 |
Total other income (expense), net | $ 0.6 | $ (0.8) | $ (21.5) |
Segment Information, Geograph_3
Segment Information, Geographic and Product Data - Narrative (Details) - segment | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | 2 | ||
Sales Revenue | Customer | Arconic | |||
Segment Reporting Information [Line Items] | |||
Concentration risk | 11.00% | 12.00% | 11.00% |
Accounts Receivable | Customer | Arconic | |||
Segment Reporting Information [Line Items] | |||
Concentration risk | 12.00% |
Segment Information, Geograph_4
Segment Information, Geographic and Product Data - Schedule of Results of Operation, Depreciation and Amortization, Capital Expenditures and Total Assets by Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Consolidated net sales | $ 641.4 | $ 609.9 | $ 556.5 | $ 572.4 | $ 618 | $ 572.2 | $ 487.8 | $ 479.8 | $ 2,380.2 | $ 2,157.7 | $ 1,797.6 |
Consolidated operating income | 67.9 | $ 73.2 | $ 55.4 | $ 45 | 60 | $ 45.7 | $ 41.4 | $ 42.2 | 241.4 | 189.3 | 121.5 |
Consolidated depreciation and amortization | 121.5 | 116.6 | 117.8 | ||||||||
Consolidated capital expenditures | 180.3 | 135 | 98.5 | ||||||||
Consolidated total assets | 3,187.8 | 3,007 | 3,187.8 | 3,007 | |||||||
Corporate costs (including loss on divestiture of business) | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated operating income | (72.7) | (66.4) | (60.8) | ||||||||
Consolidated depreciation and amortization | 4.9 | 3.9 | 4 | ||||||||
Consolidated capital expenditures | 37.1 | 41.6 | 29.7 | ||||||||
Consolidated total assets | 192.5 | 193.2 | 192.5 | 193.2 | |||||||
Intersegment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated net sales | (66.9) | (75.8) | (30.6) | ||||||||
Consolidated operating income | 1.9 | (2.8) | 1.5 | ||||||||
Consolidated depreciation and amortization | (0.8) | (0.8) | (0.8) | ||||||||
Consolidated capital expenditures | (1.2) | (1.8) | (0.4) | ||||||||
Consolidated total assets | (18.7) | (11.9) | (18.7) | (11.9) | |||||||
Specialty Alloys Operations | Operating | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated net sales | 1,967.3 | 1,803.8 | 1,461.6 | ||||||||
Consolidated operating income | 282.2 | 232.4 | 172.3 | ||||||||
Consolidated depreciation and amortization | 95.2 | 93.3 | 94 | ||||||||
Consolidated capital expenditures | 92.7 | 63.6 | 52.2 | ||||||||
Consolidated total assets | 2,349.2 | 2,312.1 | 2,349.2 | 2,312.1 | |||||||
Performance Engineered Products | Operating | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Consolidated net sales | 479.8 | 429.7 | 366.6 | ||||||||
Consolidated operating income | 30 | 26.1 | 8.5 | ||||||||
Consolidated depreciation and amortization | 22.2 | 20.2 | 20.6 | ||||||||
Consolidated capital expenditures | 51.7 | 31.6 | $ 17 | ||||||||
Consolidated total assets | $ 664.8 | $ 513.6 | $ 664.8 | $ 513.6 |
Segment Information, Geograph_5
Segment Information, Geographic and Product Data - Schedule of Net Sales by Geographic Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Geographic Data | |||||||||||
Net sales | $ 641.4 | $ 609.9 | $ 556.5 | $ 572.4 | $ 618 | $ 572.2 | $ 487.8 | $ 479.8 | $ 2,380.2 | $ 2,157.7 | $ 1,797.6 |
United States | |||||||||||
Geographic Data | |||||||||||
Net sales | 1,606.7 | 1,429.4 | 1,198.3 | ||||||||
Europe | |||||||||||
Geographic Data | |||||||||||
Net sales | 387.2 | 383 | 349.6 | ||||||||
Asia Pacific | |||||||||||
Geographic Data | |||||||||||
Net sales | 196.3 | 174.8 | 127.2 | ||||||||
Mexico | |||||||||||
Geographic Data | |||||||||||
Net sales | 81.6 | 61.7 | 48.5 | ||||||||
Canada | |||||||||||
Geographic Data | |||||||||||
Net sales | 67.8 | 65.7 | 47.7 | ||||||||
Other | |||||||||||
Geographic Data | |||||||||||
Net sales | $ 40.6 | $ 43.1 | $ 26.3 |
Segment Information, Geograph_6
Segment Information, Geographic and Product Data - Schedule of Long-lived Assets by Geographic Segment (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Geographic Data | ||
Long-lived assets | $ 1,366.2 | $ 1,313.4 |
United States | ||
Geographic Data | ||
Long-lived assets | 1,335.6 | 1,286.4 |
Europe | ||
Geographic Data | ||
Long-lived assets | 17 | 3.9 |
Asia Pacific | ||
Geographic Data | ||
Long-lived assets | 6.8 | 15.4 |
Canada | ||
Geographic Data | ||
Long-lived assets | 5.5 | 6.3 |
Mexico | ||
Geographic Data | ||
Long-lived assets | $ 1.3 | $ 1.4 |
Reclassifications from Accumu_3
Reclassifications from Accumulated Other Comprehensive (Loss) Income - Schedule of Changes in AOCI by Component, Net of Tax (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Changes in the balance of Accumulated Other Comprehensive Income | |||
Balances, beginning of period | $ 1,485.9 | $ 1,198.6 | $ 1,104.9 |
Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings | (1) | 0 | 0 |
Balances, end of period | 1,520.1 | 1,485.9 | 1,198.6 |
Cash flow hedging items | |||
Changes in the balance of Accumulated Other Comprehensive Income | |||
Balances, beginning of period | 23.8 | (2.3) | (21.8) |
Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings | (1) | ||
Other comprehensive (loss) income before reclassifications | (32.7) | 26.9 | 5.8 |
Amounts reclassified from AOCI | (4.9) | (0.8) | 13.7 |
Net current-period other comprehensive (loss) income | (38.6) | 26.1 | |
Balances, end of period | (14.8) | 23.8 | (2.3) |
Pension and other postretirement benefit plan items | |||
Changes in the balance of Accumulated Other Comprehensive Income | |||
Balances, beginning of period | (220.4) | (299) | |
Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings | 0 | ||
Other comprehensive (loss) income before reclassifications | (79.7) | 69.7 | |
Amounts reclassified from AOCI | 6.8 | 8.9 | |
Net current-period other comprehensive (loss) income | (72.9) | 78.6 | |
Balances, end of period | (293.3) | (220.4) | (299) |
Unrealized losses on available-for-sale securities | |||
Changes in the balance of Accumulated Other Comprehensive Income | |||
Balances, beginning of period | (0.3) | (0.3) | |
Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings | 0 | ||
Other comprehensive (loss) income before reclassifications | 0.3 | 0 | |
Amounts reclassified from AOCI | 0 | 0 | |
Net current-period other comprehensive (loss) income | 0.3 | 0 | |
Balances, end of period | 0 | (0.3) | (0.3) |
Foreign currency items | |||
Changes in the balance of Accumulated Other Comprehensive Income | |||
Balances, beginning of period | (42.9) | (41.5) | |
Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings | 0 | ||
Other comprehensive (loss) income before reclassifications | (0.8) | (1.4) | |
Amounts reclassified from AOCI | 0 | 0 | |
Net current-period other comprehensive (loss) income | (0.8) | (1.4) | |
Balances, end of period | (43.7) | (42.9) | (41.5) |
Total | |||
Changes in the balance of Accumulated Other Comprehensive Income | |||
Balances, beginning of period | (239.8) | (343.1) | |
Cumulative adjustment upon adoption of ASU 2017-12 reclassified to reinvested earnings | (1) | ||
Other comprehensive (loss) income before reclassifications | (112.9) | 95.2 | |
Amounts reclassified from AOCI | 1.9 | 8.1 | |
Net current-period other comprehensive (loss) income | (112) | 103.3 | |
Balances, end of period | $ (351.8) | $ (239.8) | $ (343.1) |
Reclassifications from Accumu_4
Reclassifications from Accumulated Other Comprehensive (Loss) Income - Schedule of Amounts Reclassified from AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Amount reclassified from AOCI | |||||||||||
Cost of sales | $ 1,935.4 | $ 1,775.4 | $ 1,496.8 | ||||||||
Net sales | $ 641.4 | $ 609.9 | $ 556.5 | $ 572.4 | $ 618 | $ 572.2 | $ 487.8 | $ 479.8 | 2,380.2 | 2,157.7 | 1,797.6 |
Interest expense | 26 | 28.3 | 29.8 | ||||||||
Income before income taxes | 216 | 160.2 | 70.2 | ||||||||
Tax expense | (49) | 28.3 | (23.2) | ||||||||
Net income | $ 48.9 | $ 51.1 | $ 35.5 | $ 31.5 | $ 42.8 | $ 30.2 | $ 92.1 | $ 23.4 | 167 | 188.5 | 47 |
Cash flow hedging items | |||||||||||
Amount reclassified from AOCI | |||||||||||
Net of tax | 4.9 | 0.8 | $ (13.7) | ||||||||
Cash flow hedging items | Amount Reclassified from AOCI | |||||||||||
Amount reclassified from AOCI | |||||||||||
Income before income taxes | 6.5 | 1.2 | |||||||||
Tax expense | (1.6) | (0.4) | |||||||||
Net income | 4.9 | 0.8 | |||||||||
Cash flow hedging items | Amount Reclassified from AOCI | Commodity contracts | |||||||||||
Amount reclassified from AOCI | |||||||||||
Cost of sales | 5.1 | 1.8 | |||||||||
Cash flow hedging items | Amount Reclassified from AOCI | Foreign exchange contracts | |||||||||||
Amount reclassified from AOCI | |||||||||||
Net sales | 1 | (1) | |||||||||
Cash flow hedging items | Amount Reclassified from AOCI | Forward interest rate swaps | |||||||||||
Amount reclassified from AOCI | |||||||||||
Interest expense | 0.4 | 0.4 | |||||||||
Net actuarial loss | |||||||||||
Amount reclassified from AOCI | |||||||||||
Net actuarial loss | (12) | (16.4) | |||||||||
Prior service cost | |||||||||||
Amount reclassified from AOCI | |||||||||||
Net actuarial loss | 3.1 | 3.1 | |||||||||
Amortization of pension and other postretirement benefit plan items | |||||||||||
Amount reclassified from AOCI | |||||||||||
Net actuarial loss | (8.9) | (13.3) | |||||||||
Tax benefit | 2.1 | 4.4 | |||||||||
Net of tax | $ (6.8) | $ (8.9) |
Supplemental Data (Details)
Supplemental Data (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cost Data: | |||
Repairs and maintenance costs | $ 120.4 | $ 108 | $ 99.1 |
Noncash investing and financing activities: | |||
Noncash purchases of property, plant, equipment and software | 16.1 | 16.5 | 13.7 |
Cash paid (received) during the year for: | |||
Interest payments, net | 27.6 | 29.5 | 27.7 |
Income tax payments (refunds), net | $ 27.5 | $ 33.7 | $ (33.3) |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Results of Operations | |||||||||||||||
Net sales | $ 641.4 | $ 609.9 | $ 556.5 | $ 572.4 | $ 618 | $ 572.2 | $ 487.8 | $ 479.8 | $ 2,380.2 | $ 2,157.7 | $ 1,797.6 | ||||
Gross profit | 122.9 | 123.2 | 107 | 91.7 | 114.9 | 96.1 | 85.7 | 85.6 | 444.8 | 382.3 | 300.8 | ||||
Operating income (loss) | 67.9 | 73.2 | 55.4 | 45 | 60 | 45.7 | 41.4 | 42.2 | 241.4 | 189.3 | 121.5 | ||||
Net income (loss) | $ 48.9 | $ 51.1 | $ 35.5 | $ 31.5 | $ 42.8 | $ 30.2 | $ 92.1 | $ 23.4 | $ 167 | $ 188.5 | $ 47 | ||||
Earnings per common share | |||||||||||||||
Basic (in dollars per share) | $ 1.01 | $ 1.06 | $ 0.73 | $ 0.66 | $ 0.90 | $ 0.63 | $ 1.93 | $ 0.49 | $ 3.46 | $ 3.96 | $ 0.99 | ||||
Diluted (in dollars per share) | $ 1 | $ 1.05 | $ 0.73 | $ 0.65 | $ 0.88 | $ 0.63 | $ 1.92 | $ 0.49 | $ 3.43 | $ 3.92 | $ 0.99 | ||||
Weighted average common shares outstanding | |||||||||||||||
Basic (in shares) | 47.7 | 47.7 | 47.7 | 47.6 | 47.4 | 47.2 | 47.2 | 47.1 | 47.7 | 47.2 | 47 | ||||
Diluted (in shares) | 48.1 | 48.1 | 48 | 48.2 | 48 | 47.7 | 47.6 | 47.3 | 48.1 | 47.6 | 47.1 |
SCHEDULE II. VALUATION AND QU_2
SCHEDULE II. VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Allowance for doubtful accounts receivable | |||
Valuation accounts activity | |||
Balance at Beginning of Period | $ 2.6 | $ 2.6 | $ 4.1 |
Charged to Costs & Expenses | 1.7 | 0.1 | (1) |
Charged to Other Accounts | (0.6) | (0.1) | 0 |
Deductions | 0 | 0 | (0.5) |
Balance at End of Period | 3.7 | 2.6 | 2.6 |
Deferred tax valuation allowance | |||
Valuation accounts activity | |||
Balance at Beginning of Period | 23.9 | 18.5 | 17.7 |
Charged to Costs & Expenses | 0.5 | 4.9 | 0.8 |
Charged to Other Accounts | 0.2 | 0.5 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Period | $ 24.6 | $ 23.9 | $ 18.5 |
Uncategorized Items - crs-20190
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,000,000) |