Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 17, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-12001 | |
Entity Registrant Name | ALLEGHENY TECHNOLOGIES INCORPORATED | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 25-1792394 | |
Entity Address, Address Line One | 1000 Six PPG Place | |
Entity Address, City or Town | Pittsburgh, | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15222-5479 | |
City Area Code | 412 | |
Local Phone Number | 394-2800 | |
Title of 12(b) Security | Common stock, par value $0.10 | |
Trading Symbol | ATI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 126,629,802 | |
Amendment Flag | false | |
Entity Central Index Key | 0001018963 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash and cash equivalents | $ 639 | $ 490.8 |
Accounts receivable, net | 593.4 | 554.1 |
Short-term contract assets | 43.5 | 38.5 |
Inventories, net | 1,181.1 | 1,155.3 |
Prepaid expenses and other current assets | 51 | 64.3 |
Total current assets | 2,508 | 2,303 |
Property, plant and equipment, net | 2,445.5 | 2,450.1 |
Goodwill | 520.8 | 525.8 |
Other assets | 332.8 | 355.7 |
Total assets | 5,807.1 | 5,634.6 |
Current Liabilities: | ||
Accounts payable | 424.6 | 521.2 |
Short-term contract liabilities | 114.3 | 78.7 |
Short-term debt and current portion of long-term debt | 310.7 | 11.5 |
Other current liabilities | 209.6 | 237.8 |
Total current liabilities | 1,059.2 | 849.2 |
Long-term debt | 1,390 | 1,387.4 |
Accrued postretirement benefits | 307.5 | 312.5 |
Pension liabilities | 694.3 | 731.5 |
Other long-term liabilities | 163.5 | 160.8 |
Total liabilities | 3,614.5 | 3,441.4 |
ATI Stockholders' Equity: | ||
Preferred stock, par value $0.10: authorized-50,000,000 shares; issued-none | 0 | 0 |
Common stock, par value $0.10: authorized-500,000,000 shares; issued-126,695,171 shares at March 31, 2020 and December 31, 2019; outstanding-126,626,938 shares at March 31, 2020 and 126,085,348 shares at December 31, 2019 | 12.7 | 12.7 |
Additional paid-in capital | 1,592.1 | 1,618 |
Retained earnings | 1,700.4 | 1,679.3 |
Treasury stock: 68,233 shares at March 31, 2020 and 609,823 shares at December 31, 2019 | (0.8) | (18.2) |
Accumulated other comprehensive loss, net of tax | (1,216.6) | (1,201.7) |
Total ATI stockholders’ equity | 2,087.8 | 2,090.1 |
Noncontrolling interests | ||
Noncontrolling interests | 104.8 | 103.1 |
Total Equity | 2,192.6 | 2,193.2 |
Total Liabilities and Equity | $ 5,807.1 | $ 5,634.6 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, issued | 126,695,171 | 126,695,171 |
Common stock, oustanding | 126,626,938 | 126,085,348 |
Treasury stock | 68,233 | 609,823 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Sales | $ 955.5 | $ 1,004.8 |
Cost of sales | 820.7 | 873.7 |
Gross profit | 134.8 | 131.1 |
Selling and administrative expenses | 58.4 | 68 |
Restructuring charges | 8 | 0 |
Operating income | 68.4 | 63.1 |
Nonoperating retirement benefit expense | (11.2) | (18.3) |
Interest expense, net | (21.9) | (24.8) |
Other expense, net | (0.9) | (2.9) |
Income before income taxes | 34.4 | 17.1 |
Income tax provision | 10.8 | 0.8 |
Net income | 23.6 | 16.3 |
Less: Net income attributable to noncontrolling interests | 2.5 | 1.3 |
Net income attributable to ATI | $ 21.1 | $ 15 |
Basic net income attributable to ATI per common share (in dollars per share) | $ 0.17 | $ 0.12 |
Diluted net income attributable to ATI per common share (in dollars per share) | $ 0.16 | $ 0.12 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 23.6 | $ 16.3 |
Currency translation adjustment | ||
Unrealized net change arising during the period | (23.4) | 11 |
Derivatives | ||
Net derivatives (loss) gain on hedge transactions | (12.3) | 10.5 |
Reclassification to net income of net realized loss | 1.8 | 0.9 |
Income taxes on derivative transactions | (2.5) | 0 |
Total | (8) | 11.4 |
Postretirement benefit plans | ||
Amortization of net actuarial loss | 21.3 | 21.7 |
Amortization to net income of net prior service credits | (0.7) | (0.6) |
Income taxes on postretirement benefit plans | 4.9 | 0 |
Total | 15.7 | 21.1 |
Other comprehensive (loss) income, net of tax | (15.7) | 43.5 |
Comprehensive income | 7.9 | 59.8 |
Less: Comprehensive income attributable to noncontrolling interests | 1.7 | 6.5 |
Comprehensive income attributable to ATI | $ 6.2 | $ 53.3 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Activities: | ||
Net income | $ 23.6 | $ 16.3 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization | 37.3 | 38.7 |
Deferred taxes | 8.3 | 1.6 |
Net (gains) losses from disposal of property, plant and equipment | (2.5) | 0.8 |
Changes in operating assets and liabilities: | ||
Inventories | (25.8) | (43.3) |
Accounts receivable | (39.2) | (37.3) |
Accounts payable | (96.5) | (43.5) |
Retirement benefits | (23) | (18.4) |
Accrued liabilities and other | 2.4 | (44.9) |
Cash used in operating activities | (115.4) | (130) |
Investing Activities: | ||
Purchases of property, plant and equipment | (29.1) | (23.5) |
Proceeds from disposal of property, plant and equipment | 2.9 | 0 |
Other | 1 | (0.1) |
Cash used in investing activities | (25.2) | (23.6) |
Financing Activities: | ||
Payments on long-term debt and finance leases | (2) | (1.5) |
Net borrowings (repayments) under credit facilities | 298.6 | 0 |
Shares repurchased for income tax withholding on share-based compensation and other | (7.8) | (9.9) |
Cash provided by (used in) financing activities | 288.8 | (11.4) |
Increase (decrease) in cash and cash equivalents | ||
Increase (decrease) in cash and cash equivalents | 148.2 | (165) |
Cash and cash equivalents at beginning of period | 490.8 | 382 |
Cash and cash equivalents at end of period | $ 639 | $ 217 |
STATEMENTS OF CHANGES IN CONSOL
STATEMENTS OF CHANGES IN CONSOLIDATED EQUITY - USD ($) $ in Millions | Total | [CommonStockMember] | [AdditionalPaidInCapitalMember] | [RetainedEarningsMember] | [TreasuryStockMember] | [AccumulatedOtherComprehensiveIncomeMember] | [NoncontrollingInterestMember] |
Total Stockholders' Equity at Dec. 31, 2018 | $ 1,991.6 | $ 12.7 | $ 1,615.4 | $ 1,422 | $ (30.6) | $ (1,133.8) | $ 105.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 16.3 | 15 | 1.3 | ||||
Other comprehensive income (loss) | 43.5 | 38.3 | 5.2 | ||||
Employee stock plans | (4.8) | (15.7) | 0 | 10.9 | |||
Total Stockholders' Equity at Mar. 31, 2019 | 2,046.6 | 12.7 | 1,599.7 | 1,437 | (19.7) | (1,095.5) | 112.4 |
Total Stockholders' Equity at Dec. 31, 2019 | 2,193.2 | 12.7 | 1,618 | 1,679.3 | (18.2) | (1,201.7) | 103.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 23.6 | 21.1 | 2.5 | ||||
Other comprehensive income (loss) | (15.7) | (14.9) | (0.8) | ||||
Employee stock plans | (8.5) | (25.9) | 0 | 17.4 | |||
Total Stockholders' Equity at Mar. 31, 2020 | $ 2,192.6 | $ 12.7 | $ 1,592.1 | $ 1,700.4 | $ (0.8) | $ (1,216.6) | $ 104.8 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies The interim consolidated financial statements include the accounts of Allegheny Technologies Incorporated and its subsidiaries. Unless the context requires otherwise, “Allegheny Technologies”, “ATI” and “the Company” refer to Allegheny Technologies Incorporated and its subsidiaries. These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by U.S. generally accepted accounting principles for complete financial statements. In management’s opinion, all adjustments (which include only normal recurring adjustments) considered necessary for a fair presentation have been included. Certain prior year amounts have been reclassified in order to conform with fiscal year 2020 presentation. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2019 Annual Report on Form 10-K. The results of operations for these interim periods are not necessarily indicative of the operating results for any future period. The December 31, 2019 financial information has been derived from the Company’s audited consolidated financial statements. Effective January 1, 2020, the Company began operating under two revised business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). HPMC is now comprised of the Specialty Materials and Forged Products businesses, as well as the ATI Europe distribution operations. The new AA&S segment combines the Specialty Alloys & Components (SAC) business, including the primary titanium operations in Richland, WA and Albany, OR, with ATI’s former Flat Rolled Products (FRP) business segment, which included the FRP business and the 60% -owned Shanghai STAL Precision Stainless Steel Company Limited (STAL), as well as the Uniti LLC (Uniti) and A&T Stainless 50% -owned joint ventures that are reported in AA&S segment results under the equity method of accounting. See Note 12, Business Segments, for further information. Financial results of aerospace-grade titanium plate products also transferred from HPMC to AA&S effective January 1, 2020. Prior period segment information has been restated to conform to this operating structure. The Company’s collective bargaining agreements (CBAs) involving approximately 1,500 full-time employees expired on February 29, 2020 involving United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied & Industrial Service Workers International Union, AFL-CIO, CLC (USW)-represented employees located primarily within the AA&S segment operations, and at one HPMC segment facility. On March 25, 2020, the Company announced an agreement with the USW that extended the terms of the expired CBAs for one year, to February 28, 2021. New Accounting Pronouncements Adopted In March 2020, the Financial Accounting Standards Board (FASB) issued new optional accounting guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. In response to concerns about structural risks of interbank offered rates (IBORs), and, particularly, the risk of cessation of the London Interbank Offered Rate (LIBOR), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The new accounting guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The new accounting guidance applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments generally do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. Management is continuing to evaluate the issue, and presently does not expect a transition away from LIBOR, primarily involving ATI’s domestic credit facility and an interest rate swap contract, to have any significant financial impact to ATI. In December 2019, the FASB issued new guidance to simplify the accounting for income taxes. The areas for simplification in the guidance involve the removal of certain exceptions to the general principals in the current guidance, including intraperiod allocation and the calculation of income taxes in an interim period when a year to date loss exceeds the anticipated loss for the year. The new guidance also simplifies the accounting for income taxes in the area of franchise taxes. This new guidance is effective for the Company in fiscal year 2021, with early adoption permitted. This guidance was early adopted by the Company in fiscal year 2020 without significant impact to the consolidated financial statements. In August 2018, the FASB issued new disclosure guidance on fair value measurement. This new guidance modifies the disclosure requirements on fair value measurements, including removal and modifications of various current disclosures as well as some additional disclosure requirements for Level 3 fair value measurements. Some of these disclosure changes must be applied prospectively while others retrospectively depending on requirement. This guidance was adopted by the Company in fiscal year 2020 without an impact on the Company’s consolidated financial statements other than disclosures. In June 2016, the FASB added a new impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The CECL model applies to trade receivables, other receivables, contract assets and most debt instruments. The CECL model does not have a minimum threshold for recognition of impairment losses, and entities will need to measure expected credit losses on assets that have a low risk of loss. This guidance was adopted by the Company in fiscal year 2020 without significant impact to the consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Disaggregation of Revenue The Company operates in two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). Revenue is disaggregated within these two business segments by diversified global markets, primary geographical markets and diversified products. Comparative information of the Company’s overall revenues (in millions) by global and geographical markets for the first quarters ended March 31, 2020 and 2019 were as follows: (in millions) First quarter ended March 31, 2020 March 31, 2019 HPMC AA&S Total HPMC AA&S Total Diversified Global Markets: Aerospace & Defense $ 358.8 $ 133.7 $ 492.5 $ 400.6 $ 125.0 $ 525.6 Energy* 24.1 146.5 170.6 28.1 140.4 168.5 Automotive 2.0 74.5 76.5 3.6 73.3 76.9 Food Equipment & Appliances — 50.4 50.4 0.1 53.1 53.2 Construction/Mining 5.3 38.3 43.6 18.5 39.4 57.9 Medical 17.0 21.6 38.6 24.7 21.4 46.1 Electronics/Computers/Communications 0.3 32.9 33.2 — 34.1 34.1 Other 12.8 37.3 50.1 21.0 21.5 42.5 Total $ 420.3 $ 535.2 $ 955.5 $ 496.6 $ 508.2 $ 1,004.8 *Includes the oil & gas, hydrocarbon and chemical processing, and electrical energy markets. (in millions) First quarter ended March 31, 2020 March 31, 2019 HPMC AA&S Total HPMC AA&S Total Primary Geographical Market: United States $ 227.3 $ 378.8 $ 606.1 $ 269.0 $ 352.1 $ 621.1 Europe 133.5 37.6 171.1 158.6 52.4 211.0 Asia 25.1 94.2 119.3 42.7 80.5 123.2 Canada 11.6 10.4 22.0 11.4 15.0 26.4 South America, Middle East and other 22.8 14.2 37.0 14.9 8.2 23.1 Total $ 420.3 $ 535.2 $ 955.5 $ 496.6 $ 508.2 $ 1,004.8 Comparative information of the Company’s major high-value and standard products based on their percentages of sales is included in the following table. Hot-Rolling and Processing Facility (HRPF) conversion service sales in the AA&S segment are excluded from this presentation. First quarter ended March 31, 2020 March 31, 2019 HPMC AA&S Total HPMC AA&S Total Diversified Products and Services: High-Value Products Nickel-based alloys and specialty alloys 40 % 25 % 32 % 37 % 23 % 30 % Titanium and titanium-based alloys 25 % 11 % 17 % 25 % 12 % 19 % Precision forgings, castings and components 35 % — % 16 % 38 % — % 19 % Precision rolled strip products — % 21 % 12 % — % 23 % 11 % Zirconium and related alloys — % 13 % 7 % — % 12 % 6 % Total High-Value Products 100 % 70 % 84 % 100 % 70 % 85 % Standard Products Standard stainless products — % 30 % 16 % — % 30 % 15 % Total 100 % 100 % 100 % 100 % 100 % 100 % The Company maintains a backlog of confirmed orders totaling $2.12 billion and $2.59 billion at March 31, 2020 and 2019 , respectively. Due to the structure of the Company’s long-term agreements, approximately 80% of this backlog at March 31, 2020 represented booked orders with performance obligations that will be satisfied within the next 12 months. The backlog does not reflect any elements of variable consideration. Contract balances As of March 31, 2020 and December 31, 2019 , accounts receivable with customers were $597.8 million and $558.7 million , respectively. The following represents the rollforward of accounts receivable - reserve for doubtful accounts and contract assets and liabilities for the three months ended March 31, 2020 and 2019 : (in millions) Accounts Receivable - Reserve for Doubtful Accounts March 31, March 31, Balance as of beginning of fiscal year $ 4.6 $ 6.0 Expense to increase the reserve 0.1 0.1 Write-off of uncollectible accounts (0.3 ) (0.4 ) Balance as of period end $ 4.4 $ 5.7 (in millions) Contract Assets Short-term March 31, March 31, Balance as of beginning of fiscal year $ 38.5 $ 51.2 Recognized in current year 25.1 23.9 Reclassified to accounts receivable (20.2 ) (26.4 ) Impairment — — Reclassification to/from long-term 0.1 — Balance as of period end $ 43.5 $ 48.7 Long-term March 31, March 31, Balance as of beginning of fiscal year $ 0.1 $ 0.1 Recognized in current year — — Reclassified to accounts receivable — — Impairment — — Reclassification to/from short-term (0.1 ) — Balance as of period end $ — $ 0.1 (in millions) Contract Liabilities Short-term March 31, March 31, Balance as of beginning of fiscal year $ 78.7 $ 71.4 Recognized in current year 71.7 38.6 Amounts in beginning balance reclassified to revenue (22.1 ) (29.3 ) Current year amounts reclassified to revenue (17.1 ) (2.8 ) Other (0.3 ) — Reclassification to/from long-term 3.4 — Balance as of period end $ 114.3 $ 77.9 Long-term March 31, March 31, Balance as of beginning of fiscal year $ 25.9 $ 7.3 Recognized in current year 7.4 0.3 Amounts in beginning balance reclassified to revenue (0.2 ) (0.3 ) Current year amounts reclassified to revenue — — Other — — Reclassification to/from short-term (3.4 ) — Balance as of period end $ 29.7 $ 7.3 Contract costs for obtaining and fulfilling a contract were $6.3 million and $6.5 million as of March 31, 2020 and December 31, 2019 , respectively, and are reported in other long-term assets on the consolidated balance sheet. Contract cost amortization expense for the three months ended March 31, 2020 and 2019 was $0.3 million . |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at March 31, 2020 and December 31, 2019 were as follows (in millions): March 31, December 31, Raw materials and supplies $ 174.8 $ 164.9 Work-in-process 908.9 899.6 Finished goods 171.7 161.3 Total inventories at current cost 1,255.4 1,225.8 Adjustment from current cost to LIFO cost basis 45.6 33.6 Inventory valuation reserves (119.9 ) (104.1 ) Total inventories, net $ 1,181.1 $ 1,155.3 Inventories are stated at the lower of cost (last-in, first-out (LIFO), first-in, first-out (FIFO), and average cost methods) or market. Most of the Company’s inventory is valued utilizing the LIFO costing methodology. Inventory of the Company’s non-U.S. operations is valued using average cost or FIFO methods. Due to deflationary impacts primarily related to raw materials, the carrying value of the Company’s inventory as valued on LIFO exceeds current replacement cost, and based on a lower of cost or market value analysis, the Company maintains NRV inventory valuation reserves to adjust carrying value of LIFO inventory to current replacement cost. These NRV reserves were $45.6 million at March 31, 2020 and $33.6 million at December 31, 2019 . Impacts to cost of sales for changes in the LIFO costing methodology and associated NRV inventory reserves were as follows (in millions): Three months ended March 31, 2020 2019 LIFO benefit $ 12.0 $ 1.8 NRV charge (12.0 ) (1.9 ) Net cost of sales impact $ — $ (0.1 ) |
Property Plant And Equipment
Property Plant And Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | Property, Plant and Equipment Property, plant and equipment at March 31, 2020 and December 31, 2019 was as follows (in millions): March 31, December 31, Land $ 34.2 $ 34.6 Buildings 861.8 832.7 Equipment and leasehold improvements 3,656.4 3,671.3 4,552.4 4,538.6 Accumulated depreciation and amortization (2,106.9 ) (2,088.5 ) Total property, plant and equipment, net $ 2,445.5 $ 2,450.1 The construction in progress portion of property, plant and equipment at March 31, 2020 was $187.6 million |
Joint Ventures
Joint Ventures | 3 Months Ended |
Mar. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Ventures | Joint Ventures The financial results of majority-owned joint ventures are consolidated into the Company’s operating results and financial position, with the minority ownership interest recognized in the consolidated statement of income as net income attributable to noncontrolling interests, and as equity attributable to the noncontrolling interests within total stockholders’ equity. Investments in which the Company exercises significant influence, but which it does not control (generally a 20% to 50% ownership interest), are accounted for under the equity method of accounting. Majority-Owned Joint Ventures STAL: The Company has a 60% interest in the Chinese joint venture known as STAL. The remaining 40% interest in STAL is owned by China Baowu Steel Group Corporation Limited, a state authorized investment company whose equity securities are publicly traded in the People’s Republic of China. STAL is part of ATI’s AA&S segment, and manufactures Precision Rolled Strip stainless products mainly for the electronics, communication equipment, computer and automotive markets located in Asia. Cash and cash equivalents held by STAL as of March 31, 2020 were $18.8 million . Next Gen Alloys LLC: The Company has a 51% interest in Next Gen Alloys LLC, a joint venture with GE Aviation for the development of a new meltless titanium alloy powder manufacturing technology. The titanium alloy powders are being developed for use in additive manufacturing applications, including 3D printing. Cash and cash equivalents held by this joint venture as of March 31, 2020 were $4.9 million . Equity Method Joint Ventures A&T Stainless: The Company has a 50% interest in Allegheny & Tsingshan Stainless (A&T Stainless), a joint venture with an affiliate company of Tsingshan Group (Tsingshan) to produce 60-inch wide stainless sheet products for sale in North America. Tsingshan purchased its 50% joint venture interest in A&T Stainless in 2018 for $17.5 million , of which $12.0 million has been received by ATI. The A&T Stainless operations include the Company’s previously-idled direct roll and pickle (DRAP) facility in Midland, PA. ATI provides hot-rolling conversion services to A&T Stainless using the AA&S segment’s Hot-Rolling and Processing Facility. ATI accounts for the A&T Stainless joint venture under the equity method of accounting. In late March 2018, ATI filed for an exclusion from the Section 232 tariffs on behalf of A&T Stainless, which imports semi-finished stainless slab products from Indonesia. In April 2019, the Company learned that this exclusion request was denied by the U.S. Department of Commerce. ATI filed new requests on behalf of A&T Stainless for exclusion from the Section 232 tariffs in October 2019. On April 27, 2020, the Company learned that two of three of these requests were denied by the U.S. Department of Commerce. A&T Stainless continues to be subject to the 25% tariff levied on its imports of semi-finished stainless slab products from Indonesia pending the outcome of this remaining request. Results of A&T Stainless have been and will continue to be negatively impacted by these tariffs on imported stainless slab products. On March 31, 2020, ATI announced that A&T Stainless would be idling the DRAP facility at the end of June 2020, in an orderly shut down process. Processing operations on the DRAP are to continue during the second quarter of 2020. During the fourth quarter of 2019, A&T Stainless recorded a $14.2 million impairment charge on its long-lived assets, of which ATI recognized a $7.1 million equity loss for its 50% share. In addition, ATI recorded a $4.3 million reserve during the fourth quarter of 2019 on its net receivables for working capital advances and administrative services from A&T Stainless. No additional impairment charge on the long-lived assets of A&T Stainless or additional reserve on ATI’s receivables from A&T Stainless, based on ATI’s share of the estimated fair value of the joint venture’s net assets, was considered necessary during the first quarter of 2020. As of March 31, 2020 and December 31, 2019, ATI had net receivables for working capital advances and administrative services, including the $4.3 million reserve, from A&T Stainless of $28.8 million and $32.5 million , respectively. For the March 31, 2020 net receivables, $8.6 million was reported in prepaid expenses and other current assets and $20.2 million in other long-term assets on the consolidated balance sheet, while for December 31, 2019, $8.3 million was reported in prepaid expenses and other current assets and $24.2 million in other long-term assets. In addition, accounts receivable from A&T Stainless were $2.5 million and $0.1 million as of March 31, 2020 and December 31, 2019, respectively. In addition, ATI evaluated the collectability of its remaining $5.5 million receivable from Tsingshan, which is reported in other long-term assets on the consolidated balance sheet, and concluded that no impairment or loss in expected value exists at this time. ATI’s share of A&T Stainless results were losses of $3.9 million and $3.3 million for the three months ended March 31, 2020 and 2019, respectively, which is included in the AA&S segment’s operating results, and within other expense, net, on the consolidated statements of income. Uniti: ATI has a 50% interest in the industrial titanium joint venture known as Uniti, with the remaining 50% interest held by VSMPO, a Russian producer of titanium, aluminum, and specialty steel products. Uniti is accounted for under the equity method of accounting. ATI’s share of Uniti’s income was $0.2 million and $0.5 million for the three months ended March 31, 2020 and 2019, respectively, which is included in the AA&S segment’s operating results, and within other expense, net on the consolidated statements of income. |
Supplemental Financial Statemen
Supplemental Financial Statement Information - (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Other income (expense), net for the three months ended March 31, 2020 and 2019 was as follows: (in millions) Three months ended March 31, 2020 2019 Rent and royalty income $ 0.3 $ 0.7 Gain (loss) from disposal of property, plant and equipment, net 2.5 (0.8 ) Net equity loss on joint ventures (See Note 5) (3.7 ) (2.8 ) Total other expense, net $ (0.9 ) $ (2.9 ) Gains from disposal of property, plant and equipment, net for the three months ended March 31, 2020 included a $2.5 million |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at March 31, 2020 and December 31, 2019 was as follows (in millions): March 31, December 31, Allegheny Technologies 5.875% Notes due 2023 (a) $ 500.0 $ 500.0 Allegheny Technologies 5.875% Notes due 2027 350.0 350.0 Allegheny Technologies 4.75% Convertible Senior Notes due 2022 287.5 287.5 Allegheny Ludlum 6.95% Debentures due 2025 150.0 150.0 Term Loan due 2024 100.0 100.0 U.S. revolving credit facility 300.0 — Foreign credit facilities 3.5 4.9 Finance leases and other 21.4 18.8 Debt issuance costs (11.7 ) (12.3 ) Total debt 1,700.7 1,398.9 Short-term debt and current portion of long-term debt 310.7 11.5 Total long-term debt $ 1,390.0 $ 1,387.4 (a) Bearing interest at 7.875% effective February 15, 2016. Revolving Credit Facility The Company has an Asset Based Lending (ABL) Credit Facility, which is collateralized by the accounts receivable and inventory of the Company’s domestic operations. The ABL facility, which matures in September 2024, includes a $500 million revolving credit facility, a letter of credit sub-facility of up to $200 million , and a $100 million term loan (Term Loan). The Company also has the ability, through June 30, 2020 and as long as no default or event of default has occurred and is continuing, to borrow an additional term loan of up to $100 million in total, using one or two draws (the Delayed-Draw Term Loan). The Company also has the right to request an increase of up to $200 million in the maximum amount available under the revolving credit facility for the duration of the ABL. The Term Loan has an interest rate of 2.0% plus a LIBOR spread and can be prepaid in increments of $25 million if certain minimum liquidity conditions are satisfied. The Company has a $50 million floating-for-fixed interest rate swap which converts half of the Term Loan to a 4.21% fixed interest rate. The swap matures in June 2024. The applicable interest rate for revolving credit borrowings under the ABL facility includes interest rate spreads based on available borrowing capacity that range between 1.25% and 1.75% for LIBOR-based borrowings and between 0.25% and 0.75% for base rate borrowings. The ABL facility contains a financial covenant whereby the Company must maintain a fixed charge coverage ratio of not less than 1.00 : 1.00 after an event of default has occurred and is continuing or if the undrawn availability under the ABL revolving credit portion of the facility is less than the greater of (i) 12.5% of the then applicable maximum borrowing amount under the revolving credit portion of the ABL and any outstanding Term Loan balance, or (ii) $62.5 million . The Company was in compliance with the fixed charge coverage ratio covenant at March 31, 2020 . Additionally, the Company must demonstrate minimum liquidity, as calculated in accordance with the terms of the ABL facility, during the 90 -day period immediately preceding the stated maturity date of the 4.75% Convertible Notes due 2022 and the 5.875% Notes due 2023. As of March 31, 2020 , there were $300.0 million of outstanding borrowings under the revolving portion of the ABL facility, and $35.3 million was utilized to support the issuance of letters of credit. There were average revolving credit borrowings of $53 million bearing an average annual interest rate of 2.6% under the ABL facility for the first quarter of 2020, and no |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging | Derivative Financial Instruments and Hedging As part of its risk management strategy, the Company, from time-to-time, utilizes derivative financial instruments to manage its exposure to changes in raw material prices, energy costs, foreign currencies, and interest rates. In accordance with applicable accounting standards, the Company accounts for most of these contracts as hedges. The Company sometimes uses futures and swap contracts to manage exposure to changes in prices for forecasted purchases of raw materials, such as nickel, and natural gas. Under these contracts, which are generally accounted for as cash flow hedges, the price of the item being hedged is fixed at the time that the contract is entered into, and the Company is obligated to make or receive a payment equal to the net change between this fixed price and the market price at the date the contract matures. The majority of ATI’s products are sold utilizing raw material surcharges and index mechanisms. However, as of March 31, 2020 , the Company had entered into financial hedging arrangements, primarily at the request of its customers, related to firm orders, for an aggregate notional amount of approximately 6 million pounds of nickel with hedge dates through 2023. The aggregate notional amount hedged is approximately 6% of a single year’s estimated nickel raw material purchase requirements. At March 31, 2020 , the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges. At March 31, 2020 , the Company hedged approximately 70% of the Company’s forecasted domestic requirements for natural gas for the remainder of 2020 and approximately 50% for 2021. While the majority of the Company’s direct export sales are transacted in U.S. dollars, foreign currency exchange contracts are used, from time-to-time, to limit transactional exposure to changes in currency exchange rates for those transactions denominated in a non-U.S. currency. The Company sometimes purchases foreign currency forward contracts that permit it to sell specified amounts of foreign currencies expected to be received from its export sales for pre-established U.S. dollar amounts at specified dates. The forward contracts are denominated in the same foreign currencies in which export sales are denominated. These contracts are designated as hedges of the variability in cash flows of a portion of the forecasted future export sales transactions which otherwise would expose the Company to foreign currency risk, primarily euro. In addition, the Company may also hedge forecasted capital expenditures and designate cash balances held in foreign currencies as hedges of forecasted foreign currency transactions. At March 31, 2020 , the Company held euro forward purchase contracts for forecasted capital expenditures designated as cash flow hedges with a notional value of approximately 2 million euro with maturity dates through May 2020. The Company may enter into derivative interest rate contracts to maintain a reasonable balance between fixed- and floating-rate debt. The Company has a $50 million floating-for-fixed interest rate swap which converts half of the Term Loan to a 4.21% fixed rate. The swap matures in June 2024. The Company designated the interest rate swap as a cash flow hedge of the Company’s exposure to the variability of the payment of interest on a portion of its Term Loan borrowings. The ineffectiveness at hedge inception, determined from the fair value of the swap immediately prior to its July 2019 amendment, will be amortized to interest expense over the initial Term Loan swap maturity date of January 12, 2021. There are no credit risk-related contingent features in the Company’s derivative contracts, and the contracts contained no provisions under which the Company has posted, or would be required to post, collateral. The counterparties to the Company’s derivative contracts are substantial and creditworthy commercial banks that are recognized market makers. The Company controls its credit exposure by diversifying across multiple counterparties and by monitoring credit ratings and credit default swap spreads of its counterparties. The Company also enters into master netting agreements with counterparties when possible. The fair values of the Company’s derivative financial instruments are presented below, representing the gross amounts recognized which are not offset by counterparty or by type of item hedged. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy, which includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs derived principally from or corroborated by observable market data. (In millions) Asset derivatives Balance sheet location March 31, December 31, Derivatives designated as hedging instruments: Nickel and other raw material contracts Prepaid expenses and other current assets 0.7 4.4 Nickel and other raw material contracts Other assets 0.1 1.2 Total derivatives designated as hedging instruments 0.8 5.6 Total asset derivatives $ 0.8 $ 5.6 Liability derivatives Balance sheet location Derivatives designated as hedging instruments: Interest rate swap Other current liabilities $ 1.0 $ 0.3 Foreign exchange contracts Other current liabilities 0.1 — Natural gas contracts Other current liabilities 3.0 2.5 Nickel and other raw material contracts Other current liabilities 4.7 2.5 Interest rate swap Other long-term liabilities 3.0 1.2 Natural gas contracts Other long-term liabilities 0.8 1.0 Nickel and other raw material contracts Other long-term liabilities 0.8 — Total derivatives designated as hedging instruments 13.4 7.5 Total liability derivatives $ 13.4 $ 7.5 For derivative financial instruments that are designated as cash flow hedges, the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged item affects earnings. For derivative financial instruments that are designated as fair value hedges, changes in the fair value of these derivatives are recognized in current period results and are reported as changes within accrued liabilities and other on the consolidated statements of cash flows. There were no outstanding fair value hedges as of March 31, 2020 . The Company did not use net investment hedges for the periods presented. The effects of derivative instruments in the tables below are presented net of related income taxes, excluding any impacts of changes to income tax valuation allowances affecting results of operations or other comprehensive income, when applicable (see Note 14 for further explanation). Assuming market prices remain constant with those at March 31, 2020 , a pre-tax loss of $8.1 million is expected to be recognized over the next 12 months. Activity with regard to derivatives designated as cash flow hedges for the three month periods ended March 31, 2020 and 2019 was as follows (in millions): Amount of Gain (Loss) Recognized in OCI on Derivatives Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) Three months ended March 31, Three months ended March 31, Derivatives in Cash Flow Hedging Relationships 2020 2019 2020 2019 Nickel and other raw material contracts $ (6.2 ) $ 8.3 $ (0.2 ) $ (0.4 ) Natural gas contracts (1.2 ) (0.4 ) (1.0 ) 0.1 Foreign exchange contracts (0.1 ) 0.3 — (0.3 ) Interest rate swap (1.9 ) (0.2 ) (0.2 ) (0.1 ) Total $ (9.4 ) $ 8.0 $ (1.4 ) $ (0.7 ) (a) The gains (losses) reclassified from accumulated OCI into income related to the derivatives, with the exception of the interest rate swap, are presented in cost of sales in the same period or periods in which the hedged item affects earnings. The gains (losses) reclassified from accumulated OCI into income on the interest rate swap are presented in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings. The disclosures of gains or losses presented above for nickel and other raw material contracts and foreign currency contracts do not take into account the anticipated underlying transactions. Since these derivative contracts represent hedges, the net effect of any gain or loss on results of operations may be fully or partially offset. Changes in the fair value of foreign exchange contract derivatives not designated as hedging instruments are recorded in cost of sales and are reported as changes within accrued liabilities and other on the consolidated statements of cash flows. The Company has no outstanding foreign currency forward contracts not designated as hedges as of March 31, 2020 . (In millions) Amount of Gain (Loss) Recognized in Income on Derivatives Three months ended March 31, Derivatives Not Designated as Hedging Instruments 2020 2019 Foreign exchange contracts $ — $ 0.1 |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The estimated fair value of financial instruments at March 31, 2020 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Carrying Amount Total Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Cash and cash equivalents $ 639.0 $ 639.0 $ 639.0 $ — Derivative financial instruments: Assets 0.8 0.8 — 0.8 Liabilities 13.4 13.4 — 13.4 Debt (a) 1,712.4 1,580.1 1,155.2 424.9 The estimated fair value of financial instruments at December 31, 2019 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Carrying Amount Total Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Cash and cash equivalents $ 490.8 $ 490.8 $ 490.8 $ — Derivative financial instruments: Assets 5.6 5.6 — 5.6 Liabilities 7.5 7.5 — 7.5 Debt (a) 1,411.2 1,676.5 1,552.8 123.7 (a) The total carrying amount for debt excludes debt issuance costs related to the recognized debt liability which is presented in the consolidated balance sheet as a direct reduction from the carrying amount of the debt liability. In accordance with accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards established three levels of a fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – 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 – 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 availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash and cash equivalents: Fair value was determined using Level 1 information. Derivative financial instruments: Fair values for derivatives were measured using exchange-traded prices for the hedged items. The fair value was determined using Level 2 information, including consideration of counterparty risk and the Company’s credit risk. Short-term and long-term debt: The fair values of the Company’s publicly traded debt were based on Level 1 information. The fair values of the other short-term and long-term debt were determined using Level 2 information. |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | The Company has defined contribution retirement plans or defined benefit pension plans covering substantially all employees. Company contributions to defined contribution retirement plans are generally based on a percentage of eligible pay or based on hours worked. Benefits under the defined benefit pension plans are generally based on years of service and/or final average pay. The Company funds the U.S. pension plans in accordance with the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code (IRC). The Company also sponsors several postretirement plans covering certain collectively-bargained salaried and hourly employees. The plans provide health care and life insurance benefits for eligible retirees. In most retiree health care plans, Company contributions towards premiums are capped based on the cost as of a certain date, thereby creating a defined contribution. For the three month periods ended March 31, 2020 and 2019 , the components of pension and other postretirement benefit expense for the Company’s defined benefit plans included the following (in millions): Pension Benefits Other Postretirement Benefits Three months ended March 31, Three months ended March 31, 2020 2019 2020 2019 Service cost - benefits earned during the year $ 3.2 $ 3.2 $ 0.5 $ 0.5 Interest cost on benefits earned in prior years 21.5 26.3 2.7 3.7 Expected return on plan assets (33.6 ) (32.8 ) — — Amortization of prior service cost (credit) 0.2 0.1 (0.9 ) (0.7 ) Amortization of net actuarial loss 18.6 18.4 2.7 3.3 Total retirement benefit expense $ 9.9 $ 15.2 $ 5.0 $ 6.8 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The first quarter 2020 provision for income taxes was $10.8 million , or 31.4% of income before taxes based on the actual year to date effective rate for this period. Due to overall global economic uncertainty, the Company was unable to make a reliable estimate of the annual effective tax rate, as significant changes in projected results for the Company’s domestic operations can produce a significant variation in its annual effective tax rate. The tax provision for the first quarter 2019 was $0.8 million , or 4.7% |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments Effective January 1, 2020, the Company began operating under two revised business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). HPMC is now comprised of the Specialty Materials and Forged Products businesses, as well as our ATI Europe distribution operations. The updated HPMC segment intensifies its primary focus on maximizing aero-engine materials and components growth, with more than 80% of its revenue derived from the aerospace and defense markets. The new AA&S segment combines our Specialty Alloys & Components (SAC) business, including the primary titanium operations in Richland, WA and Albany, OR, with ATI’s former Flat Rolled Products (FRP) business segment, which included the FRP business, the 60% -owned STAL joint venture, and the Uniti and A&T Stainless 50% -owned joint ventures that are reported in AA&S segment results under the equity method of accounting. AA&S is focused on delivering high-value flat products primarily to the energy, aerospace, and defense end-markets, which comprise over 50% of its revenue. AA&S was created to align melting technologies with hot-rolling capabilities to produce products with faster flow times and lower costs. Financial results of our aerospace-grade titanium plate products also transferred from HPMC to AA&S effective January 1, 2020. All segment reporting information for 2020 and prior periods below reflect these two revised business segments. The measure of segment operating profit, which is used to analyze the performance and results of the business segments, excludes all effects of LIFO inventory accounting and any related changes in net realizable value inventory reserves which offset the Company’s aggregate net debit LIFO valuation balance, income taxes, corporate expenses, net interest expense, closed operations and other expenses, restructuring and asset impairment charges, and non-operating gains and losses. Management believes segment operating profit, as defined, provides an appropriate measure of controllable operating results at the business segment level. Following is certain financial information with respect to the Company’s business segments for the periods indicated (in millions): Three months ended March 31, 2020 2019 Total sales: High Performance Materials & Components $ 448.5 $ 516.3 Advanced Alloys & Solutions 587.6 572.2 1,036.1 1,088.5 Intersegment sales: High Performance Materials & Components 28.2 19.7 Advanced Alloys & Solutions 52.4 64.0 80.6 83.7 Sales to external customers: High Performance Materials & Components 420.3 496.6 Advanced Alloys & Solutions 535.2 508.2 $ 955.5 $ 1,004.8 Three months ended March 31, 2020 2019 Segment operating profit: High Performance Materials & Components $ 57.1 $ 51.7 Advanced Alloys & Solutions 24.1 10.0 Total segment operating profit 81.2 61.7 LIFO and net realizable value reserves — (0.1 ) Corporate expenses (12.8 ) (16.6 ) Closed operations and other expenses (6.6 ) (3.1 ) Gain on asset sales, net 2.5 — Restructuring and other charges (8.0 ) — Interest expense, net (21.9 ) (24.8 ) Income before income taxes $ 34.4 $ 17.1 Corporate expenses were lower in the first quarter of 2020 compared to 2019 primarily due lower incentive compensation expense based on expected performance versus target metrics. Closed operations and other expenses in the first quarter 2020 included higher legal-related costs. The $2.5 million gain on asset sales for the first quarter of 2020 consists of a gain on the sale of certain oil and gas rights (see Note 6). Restructuring and other charges for the first quarter of 2020 are comprised of severance obligations for the reduction of approximately 90 positions for a voluntary retirement incentive program for eligible salaried employees, building on the previously announced restructuring program in the fourth quarter of 2019. Reserves for restructuring charges at March 31, 2020 consist of severance costs for these programs and are $12.4 million , of which $11.2 million are reported in other current liabilities and $1.2 million |
Per Share Information
Per Share Information | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Per Share Information | Per Share Information The following table sets forth the computation of basic and diluted income per common share: Three months ended (In millions, except per share amounts) March 31, 2020 2019 Numerator: Numerator for basic income per common share – Net income attributable to ATI $ 21.1 $ 15.0 Effect of dilutive securities: 4.75% Convertible Senior Notes due 2022 2.3 — Numerator for diluted income per common share – Net income attributable to ATI after assumed conversions $ 23.4 $ 15.0 Denominator: Denominator for basic net income per common share – weighted average shares 126.1 125.4 Effect of dilutive securities: Share-based compensation 0.4 0.7 4.75% Convertible Senior Notes due 2022 19.9 — Denominator for diluted net income per common share – adjusted weighted average shares and assumed conversions 146.4 126.1 Basic net income attributable to ATI per common share $ 0.17 $ 0.12 Diluted net income attributable to ATI per common share $ 0.16 $ 0.12 Common stock that would be issuable upon the assumed conversion of the 4.75% Convertible Senior Notes due 2022 and other option equivalents and contingently issuable shares are excluded from the computation of contingently issuable shares, and therefore, from the denominator for diluted earnings per share, if the effect of inclusion is anti-dilutive. There were no anti-dilutive shares for the three months ended March 31, 2020 . There were 19.9 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, for the three month period ended March 31, 2020 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Derivatives Deferred Tax Asset Valuation Allowance Total Attributable to ATI: Balance, December 31, 2019 $ (1,083.1 ) $ (76.6 ) $ (0.5 ) $ (41.5 ) $ (1,201.7 ) OCI before reclassifications — (22.6 ) (9.4 ) — (32.0 ) Amounts reclassified from AOCI (a) 15.7 (b) — (c) 1.4 — 17.1 Net current-period OCI 15.7 (22.6 ) (8.0 ) — (14.9 ) Balance, March 31, 2020 $ (1,067.4 ) $ (99.2 ) $ (8.5 ) $ (41.5 ) $ (1,216.6 ) Attributable to noncontrolling interests: Balance, December 31, 2019 $ — $ 9.8 $ — $ — $ 9.8 OCI before reclassifications — (0.8 ) — — (0.8 ) Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — (0.8 ) — — (0.8 ) Balance, March 31, 2020 $ — $ 9.0 $ — $ — $ 9.0 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). (b) No amounts were reclassified to earnings. (c) Amounts related to derivatives are included in cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 8). The changes in AOCI by component, net of tax, for the three month period ended March 31, 2019 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Derivatives Deferred Tax Asset Valuation Allowance Total Attributable to ATI: Balance, December 31, 2018 $ (1,005.8 ) $ (73.9 ) $ (4.8 ) $ (49.3 ) $ (1,133.8 ) OCI before reclassifications — 5.8 8.0 — 13.8 Amounts reclassified from AOCI (a) 16.1 (b) — (c) 0.7 (d) 7.7 24.5 Net current-period OCI 16.1 5.8 8.7 7.7 38.3 Balance, March 31, 2019 $ (989.7 ) $ (68.1 ) $ 3.9 $ (41.6 ) $ (1,095.5 ) Attributable to noncontrolling interests: Balance, December 31, 2018 $ — $ 11.1 $ — $ — $ 11.1 OCI before reclassifications — 5.2 — — 5.2 Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — 5.2 — — $ 5.2 Balance, March 31, 2019 $ — $ 16.3 $ — $ — $ 16.3 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). (b) No amounts were reclassified to earnings. (c) Amounts related to derivatives are included in cost of goods sold in the period or periods the hedged item affects earnings (see Note 8). (d) Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates. Other comprehensive income (loss) amounts (OCI) reported above by category are net of applicable income tax expense (benefit) for each year presented. Income tax expense (benefit) on OCI items is recorded as a change in a deferred tax asset or liability. Amounts recognized in OCI include the impact of any deferred tax asset valuation allowances, when applicable. Foreign currency translation adjustments, including those pertaining to noncontrolling interests, are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. Reclassifications out of AOCI for the three month periods ended March 31, 2020 and 2019 were as follows: Amount reclassified from AOCI Details about AOCI Components (In millions) Three months ended March 31, 2020 Three months ended March 31, 2019 Affected line item in the statements of income Postretirement benefit plans Prior service credit $ 0.7 $ 0.6 (a) Actuarial losses (21.3 ) (21.7 ) (a) (20.6 ) (21.1 ) (c) Total before tax (4.9 ) (5.0 ) Tax benefit (d) $ (15.7 ) $ (16.1 ) Net of tax Derivatives Nickel and other raw material contracts $ (0.3 ) $ (0.5 ) (b) Natural gas contracts (1.3 ) 0.1 (b) Foreign exchange contracts — (0.4 ) (b) Interest rate swap (0.2 ) (0.1 ) (b) (1.8 ) (0.9 ) (c) Total before tax (0.4 ) (0.2 ) Tax benefit (d) $ (1.4 ) $ (0.7 ) Net of tax (a) Amounts are reported in nonoperating retirement benefit expense (see Note 10). (b) Amounts related to derivatives, with the exception of the interest rate swap, are included in cost of goods sold in the period or periods the hedged item affects earnings. Amounts related to the interest rate swap are included in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings (see Note 8). (c) For pretax items, positive amounts are income and negative amounts are expense in terms of the impact to net income. Tax effects are presented in conformity with ATI’s presentation in the consolidated statements of income. (d) These amounts exclude the impact of any deferred tax asset valuation allowances, when applicable. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various domestic and international environmental laws and regulations that govern the discharge of pollutants and disposal of wastes, and which may require that it investigate and remediate the effects of the release or disposal of materials at sites associated with past and present operations. The Company could incur substantial cleanup costs, fines, and civil or criminal sanctions, third party property damage or personal injury claims as a result of violations or liabilities under these laws or noncompliance with environmental permits required at its facilities. The Company is currently involved in the investigation and remediation of a number of its current and former sites, as well as third party sites. Environmental liabilities are recorded when the Company’s liability is probable and the costs are reasonably estimable. In many cases, however, the Company is not able to determine whether it is liable or, if liability is probable, to reasonably estimate the loss or range of loss. Estimates of the Company’s liability remain subject to additional uncertainties, including the nature and extent of site contamination, available remediation alternatives, the extent of corrective actions that may be required, and the number, participation, and financial condition of other potentially responsible parties (PRPs). The Company adjusts its accruals to reflect new information as appropriate. Future adjustments could have a material adverse effect on the Company’s consolidated results of operations in a given period, but the Company cannot reliably predict the amounts of such future adjustments. At March 31, 2020 , the Company’s reserves for environmental remediation obligations totaled approximately $15 million , of which $5 million was included in other current liabilities. The reserve includes estimated probable future costs of $3 million for federal Superfund and comparable state-managed sites; $10 million for formerly owned or operated sites for which the Company has remediation or indemnification obligations; $1 million for owned or controlled sites at which Company operations have been discontinued; and $1 million for sites utilized by the Company in its ongoing operations. The timing of expenditures depends on a number of factors that vary by site. The Company expects that it will expend present accruals over many years and that remediation of all sites with which it has been identified will be completed within thirty years. The Company continues to evaluate whether it may be able to recover a portion of past and future costs for environmental liabilities from third parties and to pursue such recoveries where appropriate. Based on currently available information, it is reasonably possible that costs for recorded matters may exceed the Company’s recorded reserves by as much as $16 million . Future investigation or remediation activities may result in the discovery of additional hazardous materials, potentially higher levels of contamination than discovered during prior investigation, and may impact costs of the success or lack thereof in remedial solutions. Therefore, future developments, administrative actions or liabilities relating to environmental matters could have a material adverse effect on the Company’s consolidated financial condition or results of operations. A number of other lawsuits, claims and proceedings have been or may be asserted against the Company relating to the conduct of its currently and formerly owned businesses, including those pertaining to product liability, environmental, health and safety matters and occupational disease (including as each relates to alleged asbestos exposure), as well as patent infringement, commercial, government contracting, construction, employment, employee and retiree benefits, taxes, environmental, and stockholder and corporate governance matters. While the outcome of litigation cannot be predicted with certainty, and some of these lawsuits, claims or proceedings may be determined adversely to the Company, management does not believe that the disposition of any such pending matters is likely to have a material adverse effect on the Company’s financial condition or liquidity, although the resolution in any reporting period of one or more of these matters could have a material adverse effect on the Company’s consolidated results of operations for that period. Allegheny Technologies Incorporated and its subsidiary, ATI Titanium LLC (“ATI Titanium”), are parties to a lawsuit captioned US Magnesium, LLC v. ATI Titanium LLC (Case No. 2:17-cv-00923-DB) and filed in federal district court in Salt Lake City, UT, pertaining to a Supply and Operating Agreement between US Magnesium LLC (“USM”) and ATI Titanium entered into in 2006 (the “Supply Agreement”). In 2016, ATI Titanium notified USM that it would suspend performance under the Supply Agreement in reliance on certain terms and conditions included in the Supply Agreement. USM subsequently filed a claim challenging ATI Titanium’s right to suspend performance under the Supply Agreement, claiming that such suspension was a material breach of the Supply Agreement and seeking monetary damages, and ATI Titanium filed a counterclaim for breach of contract against USM. In 2018, USM obtained leave of the court to add Allegheny Technologies Incorporated as a separate party defendant, and ATI Titanium filed a motion to dismiss the claim against Allegheny Technologies Incorporated, which the court denied on April 19, 2019. The case is proceeding through discovery, and while ATI intends to vigorously defend against and pursue these claims, it cannot predict their outcomes at this time. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis Of Accounting | The interim consolidated financial statements include the accounts of Allegheny Technologies Incorporated and its subsidiaries. Unless the context requires otherwise, “Allegheny Technologies”, “ATI” and “the Company” refer to Allegheny Technologies Incorporated and its subsidiaries. These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by U.S. generally accepted accounting principles for complete financial statements. In management’s opinion, all adjustments (which include only normal recurring adjustments) considered necessary for a fair presentation have been included. Certain prior year amounts have been reclassified in order to conform with fiscal year 2020 presentation. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2019 Annual Report on Form 10-K. The results of operations for these interim periods are not necessarily indicative of the operating results for any future period. The December 31, 2019 financial information has been derived from the Company’s audited consolidated financial statements. |
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted In March 2020, the Financial Accounting Standards Board (FASB) issued new optional accounting guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. In response to concerns about structural risks of interbank offered rates (IBORs), and, particularly, the risk of cessation of the London Interbank Offered Rate (LIBOR), regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The new accounting guidance provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The new accounting guidance applies only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The expedients and exceptions provided by the amendments generally do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. Management is continuing to evaluate the issue, and presently does not expect a transition away from LIBOR, primarily involving ATI’s domestic credit facility and an interest rate swap contract, to have any significant financial impact to ATI. In December 2019, the FASB issued new guidance to simplify the accounting for income taxes. The areas for simplification in the guidance involve the removal of certain exceptions to the general principals in the current guidance, including intraperiod allocation and the calculation of income taxes in an interim period when a year to date loss exceeds the anticipated loss for the year. The new guidance also simplifies the accounting for income taxes in the area of franchise taxes. This new guidance is effective for the Company in fiscal year 2021, with early adoption permitted. This guidance was early adopted by the Company in fiscal year 2020 without significant impact to the consolidated financial statements. In August 2018, the FASB issued new disclosure guidance on fair value measurement. This new guidance modifies the disclosure requirements on fair value measurements, including removal and modifications of various current disclosures as well as some additional disclosure requirements for Level 3 fair value measurements. Some of these disclosure changes must be applied prospectively while others retrospectively depending on requirement. This guidance was adopted by the Company in fiscal year 2020 without an impact on the Company’s consolidated financial statements other than disclosures. In June 2016, the FASB added a new impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses. The CECL model applies to trade receivables, other receivables, contract assets and most debt instruments. The CECL model does not have a minimum threshold for recognition of impairment losses, and entities will need to measure expected credit losses on assets that have a low risk of loss. This guidance was adopted by the Company in fiscal year 2020 without significant impact to the consolidated financial statements. |
Inventory | Inventories are stated at the lower of cost (last-in, first-out (LIFO), first-in, first-out (FIFO), and average cost methods) or market. Most of the Company’s inventory is valued utilizing the LIFO costing methodology. Inventory of the Company’s non-U.S. operations is valued using average cost or FIFO methods. Due to deflationary impacts primarily related to raw materials, the carrying value of the Company’s inventory as valued on LIFO exceeds current replacement cost, and based on a lower of cost or market value analysis, the Company maintains NRV inventory valuation reserves to adjust carrying value of LIFO inventory to current replacement cost. |
Derivatives | For derivative financial instruments that are designated as cash flow hedges, the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged item affects earnings. For derivative financial instruments that are designated as fair value hedges, changes in the fair value of these derivatives are recognized in current period results and are reported as changes within accrued liabilities and other on the consolidated statements of cash flows. There were no outstanding fair value hedges as of March 31, 2020 . The Company did not use net investment hedges for the periods presented. The effects of derivative instruments in the tables below are presented net of related income taxes, excluding any impacts of changes to income tax valuation allowances affecting results of operations or other comprehensive income, when applicable (see Note 14 for further explanation). As part of its risk management strategy, the Company, from time-to-time, utilizes derivative financial instruments to manage its exposure to changes in raw material prices, energy costs, foreign currencies, and interest rates. In accordance with applicable accounting standards, the Company accounts for most of these contracts as hedges. The Company sometimes uses futures and swap contracts to manage exposure to changes in prices for forecasted purchases of raw materials, such as nickel, and natural gas. Under these contracts, which are generally accounted for as cash flow hedges, the price of the item being hedged is fixed at the time that the contract is entered into, and the Company is obligated to make or receive a payment equal to the net change between this fixed price and the market price at the date the contract matures. The majority of ATI’s products are sold utilizing raw material surcharges and index mechanisms. However, as of March 31, 2020 , the Company had entered into financial hedging arrangements, primarily at the request of its customers, related to firm orders, for an aggregate notional amount of approximately 6 million pounds of nickel with hedge dates through 2023. The aggregate notional amount hedged is approximately 6% of a single year’s estimated nickel raw material purchase requirements. At March 31, 2020 , the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges. At March 31, 2020 , the Company hedged approximately 70% of the Company’s forecasted domestic requirements for natural gas for the remainder of 2020 and approximately 50% for 2021. While the majority of the Company’s direct export sales are transacted in U.S. dollars, foreign currency exchange contracts are used, from time-to-time, to limit transactional exposure to changes in currency exchange rates for those transactions denominated in a non-U.S. currency. The Company sometimes purchases foreign currency forward contracts that permit it to sell specified amounts of foreign currencies expected to be received from its export sales for pre-established U.S. dollar amounts at specified dates. The forward contracts are denominated in the same foreign currencies in which export sales are denominated. These contracts are designated as hedges of the variability in cash flows of a portion of the forecasted future export sales transactions which otherwise would expose the Company to foreign currency risk, primarily euro. In addition, the Company may also hedge forecasted capital expenditures and designate cash balances held in foreign currencies as hedges of forecasted foreign currency transactions. At March 31, 2020 , the Company held euro forward purchase contracts for forecasted capital expenditures designated as cash flow hedges with a notional value of approximately 2 million euro with maturity dates through May 2020. The Company may enter into derivative interest rate contracts to maintain a reasonable balance between fixed- and floating-rate debt. The Company has a $50 million floating-for-fixed interest rate swap which converts half of the Term Loan to a 4.21% fixed rate. The swap matures in June 2024. The Company designated the interest rate swap as a cash flow hedge of the Company’s exposure to the variability of the payment of interest on a portion of its Term Loan borrowings. The ineffectiveness at hedge inception, determined from the fair value of the swap immediately prior to its July 2019 amendment, will be amortized to interest expense over the initial Term Loan swap maturity date of January 12, 2021. There are no credit risk-related contingent features in the Company’s derivative contracts, and the contracts contained no provisions under which the Company has posted, or would be required to post, collateral. The counterparties to the Company’s derivative contracts are substantial and creditworthy commercial banks that are recognized market makers. The Company controls its credit exposure by diversifying across multiple counterparties and by monitoring credit ratings and credit default swap spreads of its counterparties. The Company also enters into master netting agreements with counterparties when possible. |
Retirement Benefits | The Company has defined contribution retirement plans or defined benefit pension plans covering substantially all employees. Company contributions to defined contribution retirement plans are generally based on a percentage of eligible pay or based on hours worked. Benefits under the defined benefit pension plans are generally based on years of service and/or final average pay. The Company funds the U.S. pension plans in accordance with the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code (IRC). The Company also sponsors several postretirement plans covering certain collectively-bargained salaried and hourly employees. The plans provide health care and life insurance benefits for eligible retirees. In most retiree health care plans, Company contributions towards premiums are capped based on the cost as of a certain date, thereby creating a defined contribution. |
Commitments And Contingencies | Environmental liabilities are recorded when the Company’s liability is probable and the costs are reasonably estimable. In many cases, however, the Company is not able to determine whether it is liable or, if liability is probable, to reasonably estimate the loss or range of loss. Estimates of the Company’s liability remain subject to additional uncertainties, including the nature and extent of site contamination, available remediation alternatives, the extent of corrective actions that may be required, and the number, participation, and financial condition of other potentially responsible parties (PRPs). The Company adjusts its accruals to reflect new information as appropriate. Future adjustments could have a material adverse effect on the Company’s consolidated results of operations in a given period, but the Company cannot reliably predict the amounts of such future adjustments. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Comparative information of the Company’s overall revenues (in millions) by global and geographical markets for the first quarters ended March 31, 2020 and 2019 were as follows: (in millions) First quarter ended March 31, 2020 March 31, 2019 HPMC AA&S Total HPMC AA&S Total Diversified Global Markets: Aerospace & Defense $ 358.8 $ 133.7 $ 492.5 $ 400.6 $ 125.0 $ 525.6 Energy* 24.1 146.5 170.6 28.1 140.4 168.5 Automotive 2.0 74.5 76.5 3.6 73.3 76.9 Food Equipment & Appliances — 50.4 50.4 0.1 53.1 53.2 Construction/Mining 5.3 38.3 43.6 18.5 39.4 57.9 Medical 17.0 21.6 38.6 24.7 21.4 46.1 Electronics/Computers/Communications 0.3 32.9 33.2 — 34.1 34.1 Other 12.8 37.3 50.1 21.0 21.5 42.5 Total $ 420.3 $ 535.2 $ 955.5 $ 496.6 $ 508.2 $ 1,004.8 *Includes the oil & gas, hydrocarbon and chemical processing, and electrical energy markets. (in millions) First quarter ended March 31, 2020 March 31, 2019 HPMC AA&S Total HPMC AA&S Total Primary Geographical Market: United States $ 227.3 $ 378.8 $ 606.1 $ 269.0 $ 352.1 $ 621.1 Europe 133.5 37.6 171.1 158.6 52.4 211.0 Asia 25.1 94.2 119.3 42.7 80.5 123.2 Canada 11.6 10.4 22.0 11.4 15.0 26.4 South America, Middle East and other 22.8 14.2 37.0 14.9 8.2 23.1 Total $ 420.3 $ 535.2 $ 955.5 $ 496.6 $ 508.2 $ 1,004.8 Comparative information of the Company’s major high-value and standard products based on their percentages of sales is included in the following table. Hot-Rolling and Processing Facility (HRPF) conversion service sales in the AA&S segment are excluded from this presentation. First quarter ended March 31, 2020 March 31, 2019 HPMC AA&S Total HPMC AA&S Total Diversified Products and Services: High-Value Products Nickel-based alloys and specialty alloys 40 % 25 % 32 % 37 % 23 % 30 % Titanium and titanium-based alloys 25 % 11 % 17 % 25 % 12 % 19 % Precision forgings, castings and components 35 % — % 16 % 38 % — % 19 % Precision rolled strip products — % 21 % 12 % — % 23 % 11 % Zirconium and related alloys — % 13 % 7 % — % 12 % 6 % Total High-Value Products 100 % 70 % 84 % 100 % 70 % 85 % Standard Products Standard stainless products — % 30 % 16 % — % 30 % 15 % Total 100 % 100 % 100 % 100 % 100 % 100 % |
Schedule of Accounts Receivable - Reserve for Doubtful Accounts | (in millions) Accounts Receivable - Reserve for Doubtful Accounts March 31, March 31, Balance as of beginning of fiscal year $ 4.6 $ 6.0 Expense to increase the reserve 0.1 0.1 Write-off of uncollectible accounts (0.3 ) (0.4 ) Balance as of period end $ 4.4 $ 5.7 |
Schedule of Contract Assets and Liabilities | (in millions) Contract Assets Short-term March 31, March 31, Balance as of beginning of fiscal year $ 38.5 $ 51.2 Recognized in current year 25.1 23.9 Reclassified to accounts receivable (20.2 ) (26.4 ) Impairment — — Reclassification to/from long-term 0.1 — Balance as of period end $ 43.5 $ 48.7 Long-term March 31, March 31, Balance as of beginning of fiscal year $ 0.1 $ 0.1 Recognized in current year — — Reclassified to accounts receivable — — Impairment — — Reclassification to/from short-term (0.1 ) — Balance as of period end $ — $ 0.1 (in millions) Contract Liabilities Short-term March 31, March 31, Balance as of beginning of fiscal year $ 78.7 $ 71.4 Recognized in current year 71.7 38.6 Amounts in beginning balance reclassified to revenue (22.1 ) (29.3 ) Current year amounts reclassified to revenue (17.1 ) (2.8 ) Other (0.3 ) — Reclassification to/from long-term 3.4 — Balance as of period end $ 114.3 $ 77.9 Long-term March 31, March 31, Balance as of beginning of fiscal year $ 25.9 $ 7.3 Recognized in current year 7.4 0.3 Amounts in beginning balance reclassified to revenue (0.2 ) (0.3 ) Current year amounts reclassified to revenue — — Other — — Reclassification to/from short-term (3.4 ) — Balance as of period end $ 29.7 $ 7.3 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories at March 31, 2020 and December 31, 2019 were as follows (in millions): March 31, December 31, Raw materials and supplies $ 174.8 $ 164.9 Work-in-process 908.9 899.6 Finished goods 171.7 161.3 Total inventories at current cost 1,255.4 1,225.8 Adjustment from current cost to LIFO cost basis 45.6 33.6 Inventory valuation reserves (119.9 ) (104.1 ) Total inventories, net $ 1,181.1 $ 1,155.3 |
Schedule of Inventory Valuation Impact on Income | Impacts to cost of sales for changes in the LIFO costing methodology and associated NRV inventory reserves were as follows (in millions): Three months ended March 31, 2020 2019 LIFO benefit $ 12.0 $ 1.8 NRV charge (12.0 ) (1.9 ) Net cost of sales impact $ — $ (0.1 ) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property Plant And Equipment | Property, plant and equipment at March 31, 2020 and December 31, 2019 was as follows (in millions): March 31, December 31, Land $ 34.2 $ 34.6 Buildings 861.8 832.7 Equipment and leasehold improvements 3,656.4 3,671.3 4,552.4 4,538.6 Accumulated depreciation and amortization (2,106.9 ) (2,088.5 ) Total property, plant and equipment, net $ 2,445.5 $ 2,450.1 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information - (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense, Net | Other income (expense), net for the three months ended March 31, 2020 and 2019 was as follows: (in millions) Three months ended March 31, 2020 2019 Rent and royalty income $ 0.3 $ 0.7 Gain (loss) from disposal of property, plant and equipment, net 2.5 (0.8 ) Net equity loss on joint ventures (See Note 5) (3.7 ) (2.8 ) Total other expense, net $ (0.9 ) $ (2.9 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | Debt at March 31, 2020 and December 31, 2019 was as follows (in millions): March 31, December 31, Allegheny Technologies 5.875% Notes due 2023 (a) $ 500.0 $ 500.0 Allegheny Technologies 5.875% Notes due 2027 350.0 350.0 Allegheny Technologies 4.75% Convertible Senior Notes due 2022 287.5 287.5 Allegheny Ludlum 6.95% Debentures due 2025 150.0 150.0 Term Loan due 2024 100.0 100.0 U.S. revolving credit facility 300.0 — Foreign credit facilities 3.5 4.9 Finance leases and other 21.4 18.8 Debt issuance costs (11.7 ) (12.3 ) Total debt 1,700.7 1,398.9 Short-term debt and current portion of long-term debt 310.7 11.5 Total long-term debt $ 1,390.0 $ 1,387.4 (a) Bearing interest at 7.875% effective February 15, 2016. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments In Statement Of Financial Position Fair Value | The fair values of the Company’s derivative financial instruments are presented below, representing the gross amounts recognized which are not offset by counterparty or by type of item hedged. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy, which includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs derived principally from or corroborated by observable market data. (In millions) Asset derivatives Balance sheet location March 31, December 31, Derivatives designated as hedging instruments: Nickel and other raw material contracts Prepaid expenses and other current assets 0.7 4.4 Nickel and other raw material contracts Other assets 0.1 1.2 Total derivatives designated as hedging instruments 0.8 5.6 Total asset derivatives $ 0.8 $ 5.6 Liability derivatives Balance sheet location Derivatives designated as hedging instruments: Interest rate swap Other current liabilities $ 1.0 $ 0.3 Foreign exchange contracts Other current liabilities 0.1 — Natural gas contracts Other current liabilities 3.0 2.5 Nickel and other raw material contracts Other current liabilities 4.7 2.5 Interest rate swap Other long-term liabilities 3.0 1.2 Natural gas contracts Other long-term liabilities 0.8 1.0 Nickel and other raw material contracts Other long-term liabilities 0.8 — Total derivatives designated as hedging instruments 13.4 7.5 Total liability derivatives $ 13.4 $ 7.5 |
Schedule Of Derivative Instruments Gain Loss In Statement Of Financial Performance | Activity with regard to derivatives designated as cash flow hedges for the three month periods ended March 31, 2020 and 2019 was as follows (in millions): Amount of Gain (Loss) Recognized in OCI on Derivatives Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) Three months ended March 31, Three months ended March 31, Derivatives in Cash Flow Hedging Relationships 2020 2019 2020 2019 Nickel and other raw material contracts $ (6.2 ) $ 8.3 $ (0.2 ) $ (0.4 ) Natural gas contracts (1.2 ) (0.4 ) (1.0 ) 0.1 Foreign exchange contracts (0.1 ) 0.3 — (0.3 ) Interest rate swap (1.9 ) (0.2 ) (0.2 ) (0.1 ) Total $ (9.4 ) $ 8.0 $ (1.4 ) $ (0.7 ) (a) The gains (losses) reclassified from accumulated OCI into income related to the derivatives, with the exception of the interest rate swap, are presented in cost of sales in the same period or periods in which the hedged item affects earnings. The gains (losses) reclassified from accumulated OCI into income on the interest rate swap are presented in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings. |
Schedule Of Derivative Instruments Not Designated as Hedging Instruments | (In millions) Amount of Gain (Loss) Recognized in Income on Derivatives Three months ended March 31, Derivatives Not Designated as Hedging Instruments 2020 2019 Foreign exchange contracts $ — $ 0.1 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value By Balance Sheet Grouping | The estimated fair value of financial instruments at March 31, 2020 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Carrying Amount Total Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Cash and cash equivalents $ 639.0 $ 639.0 $ 639.0 $ — Derivative financial instruments: Assets 0.8 0.8 — 0.8 Liabilities 13.4 13.4 — 13.4 Debt (a) 1,712.4 1,580.1 1,155.2 424.9 The estimated fair value of financial instruments at December 31, 2019 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Carrying Amount Total Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Cash and cash equivalents $ 490.8 $ 490.8 $ 490.8 $ — Derivative financial instruments: Assets 5.6 5.6 — 5.6 Liabilities 7.5 7.5 — 7.5 Debt (a) 1,411.2 1,676.5 1,552.8 123.7 (a) The total carrying amount for debt excludes debt issuance costs related to the recognized debt liability which is presented in the consolidated balance sheet as a direct reduction from the carrying amount of the debt liability. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule Of Defined Benefit Plans Disclosures [Table Text Block] | For the three month periods ended March 31, 2020 and 2019 , the components of pension and other postretirement benefit expense for the Company’s defined benefit plans included the following (in millions): Pension Benefits Other Postretirement Benefits Three months ended March 31, Three months ended March 31, 2020 2019 2020 2019 Service cost - benefits earned during the year $ 3.2 $ 3.2 $ 0.5 $ 0.5 Interest cost on benefits earned in prior years 21.5 26.3 2.7 3.7 Expected return on plan assets (33.6 ) (32.8 ) — — Amortization of prior service cost (credit) 0.2 0.1 (0.9 ) (0.7 ) Amortization of net actuarial loss 18.6 18.4 2.7 3.3 Total retirement benefit expense $ 9.9 $ 15.2 $ 5.0 $ 6.8 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule Of Segment Reporting Information By Segment | Following is certain financial information with respect to the Company’s business segments for the periods indicated (in millions): Three months ended March 31, 2020 2019 Total sales: High Performance Materials & Components $ 448.5 $ 516.3 Advanced Alloys & Solutions 587.6 572.2 1,036.1 1,088.5 Intersegment sales: High Performance Materials & Components 28.2 19.7 Advanced Alloys & Solutions 52.4 64.0 80.6 83.7 Sales to external customers: High Performance Materials & Components 420.3 496.6 Advanced Alloys & Solutions 535.2 508.2 $ 955.5 $ 1,004.8 Three months ended March 31, 2020 2019 Segment operating profit: High Performance Materials & Components $ 57.1 $ 51.7 Advanced Alloys & Solutions 24.1 10.0 Total segment operating profit 81.2 61.7 LIFO and net realizable value reserves — (0.1 ) Corporate expenses (12.8 ) (16.6 ) Closed operations and other expenses (6.6 ) (3.1 ) Gain on asset sales, net 2.5 — Restructuring and other charges (8.0 ) — Interest expense, net (21.9 ) (24.8 ) Income before income taxes $ 34.4 $ 17.1 |
Per Share Information (Tables)
Per Share Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share Diluted By Common Class | The following table sets forth the computation of basic and diluted income per common share: Three months ended (In millions, except per share amounts) March 31, 2020 2019 Numerator: Numerator for basic income per common share – Net income attributable to ATI $ 21.1 $ 15.0 Effect of dilutive securities: 4.75% Convertible Senior Notes due 2022 2.3 — Numerator for diluted income per common share – Net income attributable to ATI after assumed conversions $ 23.4 $ 15.0 Denominator: Denominator for basic net income per common share – weighted average shares 126.1 125.4 Effect of dilutive securities: Share-based compensation 0.4 0.7 4.75% Convertible Senior Notes due 2022 19.9 — Denominator for diluted net income per common share – adjusted weighted average shares and assumed conversions 146.4 126.1 Basic net income attributable to ATI per common share $ 0.17 $ 0.12 Diluted net income attributable to ATI per common share $ 0.16 $ 0.12 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income Loss | The changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, for the three month period ended March 31, 2020 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Derivatives Deferred Tax Asset Valuation Allowance Total Attributable to ATI: Balance, December 31, 2019 $ (1,083.1 ) $ (76.6 ) $ (0.5 ) $ (41.5 ) $ (1,201.7 ) OCI before reclassifications — (22.6 ) (9.4 ) — (32.0 ) Amounts reclassified from AOCI (a) 15.7 (b) — (c) 1.4 — 17.1 Net current-period OCI 15.7 (22.6 ) (8.0 ) — (14.9 ) Balance, March 31, 2020 $ (1,067.4 ) $ (99.2 ) $ (8.5 ) $ (41.5 ) $ (1,216.6 ) Attributable to noncontrolling interests: Balance, December 31, 2019 $ — $ 9.8 $ — $ — $ 9.8 OCI before reclassifications — (0.8 ) — — (0.8 ) Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — (0.8 ) — — (0.8 ) Balance, March 31, 2020 $ — $ 9.0 $ — $ — $ 9.0 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). (b) No amounts were reclassified to earnings. (c) Amounts related to derivatives are included in cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 8). The changes in AOCI by component, net of tax, for the three month period ended March 31, 2019 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Derivatives Deferred Tax Asset Valuation Allowance Total Attributable to ATI: Balance, December 31, 2018 $ (1,005.8 ) $ (73.9 ) $ (4.8 ) $ (49.3 ) $ (1,133.8 ) OCI before reclassifications — 5.8 8.0 — 13.8 Amounts reclassified from AOCI (a) 16.1 (b) — (c) 0.7 (d) 7.7 24.5 Net current-period OCI 16.1 5.8 8.7 7.7 38.3 Balance, March 31, 2019 $ (989.7 ) $ (68.1 ) $ 3.9 $ (41.6 ) $ (1,095.5 ) Attributable to noncontrolling interests: Balance, December 31, 2018 $ — $ 11.1 $ — $ — $ 11.1 OCI before reclassifications — 5.2 — — 5.2 Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — 5.2 — — $ 5.2 Balance, March 31, 2019 $ — $ 16.3 $ — $ — $ 16.3 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). (b) No amounts were reclassified to earnings. (c) Amounts related to derivatives are included in cost of goods sold in the period or periods the hedged item affects earnings (see Note 8). (d) Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates. |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI for the three month periods ended March 31, 2020 and 2019 were as follows: Amount reclassified from AOCI Details about AOCI Components (In millions) Three months ended March 31, 2020 Three months ended March 31, 2019 Affected line item in the statements of income Postretirement benefit plans Prior service credit $ 0.7 $ 0.6 (a) Actuarial losses (21.3 ) (21.7 ) (a) (20.6 ) (21.1 ) (c) Total before tax (4.9 ) (5.0 ) Tax benefit (d) $ (15.7 ) $ (16.1 ) Net of tax Derivatives Nickel and other raw material contracts $ (0.3 ) $ (0.5 ) (b) Natural gas contracts (1.3 ) 0.1 (b) Foreign exchange contracts — (0.4 ) (b) Interest rate swap (0.2 ) (0.1 ) (b) (1.8 ) (0.9 ) (c) Total before tax (0.4 ) (0.2 ) Tax benefit (d) $ (1.4 ) $ (0.7 ) Net of tax (a) Amounts are reported in nonoperating retirement benefit expense (see Note 10). (b) Amounts related to derivatives, with the exception of the interest rate swap, are included in cost of goods sold in the period or periods the hedged item affects earnings. Amounts related to the interest rate swap are included in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings (see Note 8). (c) For pretax items, positive amounts are income and negative amounts are expense in terms of the impact to net income. Tax effects are presented in conformity with ATI’s presentation in the consolidated statements of income. (d) These amounts exclude the impact of any deferred tax asset valuation allowances, when applicable. |
Accounting Policies (Accounting
Accounting Policies (Accounting Pronouncements) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | Dec. 31, 2019employee | |
Revenue recognition [Line Items] | |||
Number of business segments | segment | 2 | ||
Impact of new accounting principle on prior period operating income | $ 68.4 | $ 63.1 | |
Unfavorable impact on pre-tax operating results | $ (34.4) | $ (17.1) | |
Entity Number Of Employees Covered By USW Collective Bargaining Agreements Expiring February 29 2020 | employee | 1,500 | ||
Allegheny & Tsingshan Stainless | |||
Revenue recognition [Line Items] | |||
Equity method investment ownership percentage | 50.00% | ||
Uniti | |||
Revenue recognition [Line Items] | |||
Equity method investment ownership percentage | 50.00% | ||
Allegheny Technologies Inc | Shanghai STAL Precision Stainless Steel Co Ltd | Advanced Alloys & Solutions [Member] | |||
Revenue recognition [Line Items] | |||
Joint venture ownership percentage | 60.00% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) | 3 Months Ended | |||
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Revenue recognition [Line Items] | ||||
Inventories, net | $ 1,181,100,000 | $ 1,155,300,000 | ||
Adjustment from current cost to LIFO cost basis | (45,600,000) | (33,600,000) | ||
Sales | 955,500,000 | $ 1,004,800,000 | ||
Cost of sales | 820,700,000 | 873,700,000 | ||
Short-term contract assets | 43,500,000 | 48,700,000 | 38,500,000 | $ 51,200,000 |
Long-term contract assets | 0 | 100,000 | 100,000 | 100,000 |
Other current liabilities | 209,600,000 | 237,800,000 | ||
Other long-term liabilities | 163,500,000 | 160,800,000 | ||
Short-term contract liabilities | 114,300,000 | 77,900,000 | 78,700,000 | 71,400,000 |
Long-term contract liabilities | $ 29,700,000 | 7,300,000 | 25,900,000 | $ 7,300,000 |
Number of business segments | segment | 2 | |||
Revenue, Performance Obligation [Abstract] | ||||
Confirmed order backlog | $ 2,120,000,000 | 2,590,000,000 | ||
Confirmed orders with current performance obligations | 0.80 | |||
Accounts receivable with customers | 597,800,000 | 558,700,000 | ||
Contract costs for obtaining and fulfilling contracts | 6,300,000 | $ 6,500,000 | ||
Amortization of contract costs | $ 300,000 | $ 300,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 955.5 | $ 1,004.8 | |
Percent of revenue | 100.00% | 100.00% | |
Total High-Value Products | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 84.00% | 85.00% | |
Nickel-based alloys and specialty alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 32.00% | 30.00% | |
Precision forgings, castings and components | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 16.00% | 19.00% | |
Titanium and titanium-based alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 17.00% | 19.00% | |
Precision and engineered strip | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 12.00% | 11.00% | |
Zirconium and related alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 7.00% | 6.00% | |
Standard stainless products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 16.00% | 15.00% | |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 606.1 | $ 621.1 | |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 171.1 | 211 | |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 119.3 | 123.2 | |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 22 | 26.4 | |
South America, Middle East and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 37 | 23.1 | |
Aerospace & Defense | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 492.5 | 525.6 | |
Energy | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | [1] | 170.6 | 168.5 |
Automotive | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 76.5 | 76.9 | |
Construction/Mining | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 43.6 | 57.9 | |
Food Equipment & Appliances | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 50.4 | 53.2 | |
Medical | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 38.6 | 46.1 | |
Electronics/Computers/Communications | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 33.2 | 34.1 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 50.1 | 42.5 | |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,036.1 | 1,088.5 | |
Operating Segments | High Performance Materials & Components | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 448.5 | $ 516.3 | |
Percent of revenue | 100.00% | 100.00% | |
Operating Segments | High Performance Materials & Components | Total High-Value Products | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 100.00% | 100.00% | |
Operating Segments | High Performance Materials & Components | Nickel-based alloys and specialty alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 40.00% | 37.00% | |
Operating Segments | High Performance Materials & Components | Precision forgings, castings and components | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 35.00% | 38.00% | |
Operating Segments | High Performance Materials & Components | Titanium and titanium-based alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 25.00% | 25.00% | |
Operating Segments | High Performance Materials & Components | Precision and engineered strip | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 0.00% | 0.00% | |
Operating Segments | High Performance Materials & Components | Zirconium and related alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 0.00% | 0.00% | |
Operating Segments | High Performance Materials & Components | Standard stainless products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 0.00% | 0.00% | |
Operating Segments | High Performance Materials & Components | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 227.3 | $ 269 | |
Operating Segments | High Performance Materials & Components | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 133.5 | 158.6 | |
Operating Segments | High Performance Materials & Components | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 25.1 | 42.7 | |
Operating Segments | High Performance Materials & Components | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 11.6 | 11.4 | |
Operating Segments | High Performance Materials & Components | South America, Middle East and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 22.8 | 14.9 | |
Operating Segments | High Performance Materials & Components | Aerospace & Defense | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 358.8 | 400.6 | |
Operating Segments | High Performance Materials & Components | Energy | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | [1] | 24.1 | 28.1 |
Operating Segments | High Performance Materials & Components | Automotive | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2 | 3.6 | |
Operating Segments | High Performance Materials & Components | Construction/Mining | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5.3 | 18.5 | |
Operating Segments | High Performance Materials & Components | Food Equipment & Appliances | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0.1 | |
Operating Segments | High Performance Materials & Components | Medical | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 17 | 24.7 | |
Operating Segments | High Performance Materials & Components | Electronics/Computers/Communications | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0.3 | 0 | |
Operating Segments | High Performance Materials & Components | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 12.8 | 21 | |
Operating Segments | Advanced Alloys & Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 587.6 | $ 572.2 | |
Percent of revenue | 100.00% | 100.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | Total High-Value Products | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 70.00% | 70.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | Nickel-based alloys and specialty alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 25.00% | 23.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | Precision forgings, castings and components | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 0.00% | 0.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | Titanium and titanium-based alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 11.00% | 12.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | Precision and engineered strip | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 21.00% | 23.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | Zirconium and related alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 13.00% | 12.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | Standard stainless products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 30.00% | 30.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 378.8 | $ 352.1 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 37.6 | 52.4 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 94.2 | 80.5 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 10.4 | 15 | |
Operating Segments | Advanced Alloys & Solutions [Member] | South America, Middle East and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 14.2 | 8.2 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Aerospace & Defense | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 133.7 | 125 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Energy | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | [1] | 146.5 | 140.4 |
Operating Segments | Advanced Alloys & Solutions [Member] | Automotive | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 74.5 | 73.3 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Construction/Mining | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 38.3 | 39.4 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Food Equipment & Appliances | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 50.4 | 53.1 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Medical | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 21.6 | 21.4 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Electronics/Computers/Communications | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 32.9 | 34.1 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 37.3 | 21.5 | |
External Customers | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 955.5 | 1,004.8 | |
External Customers | Operating Segments | High Performance Materials & Components | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 420.3 | 496.6 | |
External Customers | Operating Segments | Advanced Alloys & Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 535.2 | $ 508.2 | |
[1] | Includes the oil & gas, hydrocarbon and chemical processing, and electrical energy markets. |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Accounts Receivable Reserve for Doubtful Accounts (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance as of beginning of fiscal year | $ 4.6 | $ 6 |
Expense to increase the reserve | 0.1 | 0.1 |
Write-off of uncollectible accounts | (0.3) | (0.4) |
Balance as of period end | $ 4.4 | $ 5.7 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Contract Assets, Current [Roll Forward] | ||
Balance as of beginning of fiscal year | $ 38.5 | $ 51.2 |
Recognized in current year | 25.1 | 23.9 |
Reclassified to accounts receivable | (20.2) | (26.4) |
Impairment | 0 | 0 |
Reclassification to/from long-term | 0.1 | 0 |
Balance as of period end | 43.5 | 48.7 |
Contract Assets, Noncurrent [Roll Forward] | ||
Balance as of beginning of fiscal year | 0.1 | 0.1 |
Recognized in current year | 0 | 0 |
Reclassified to accounts receivable | 0 | 0 |
Impairment | 0 | 0 |
Reclassification to/from short-term | (0.1) | 0 |
Balance as of period end | 0 | 0.1 |
Contract Liabilities, Current [Roll Forward] | ||
Balance as of beginning of fiscal year | 78.7 | 71.4 |
Recognized in current year | 71.7 | 38.6 |
Amounts in beginning balance reclassified to revenue | (22.1) | (29.3) |
Current year amounts reclassified to revenue | (17.1) | (2.8) |
Other | (0.3) | 0 |
Reclassification to/from long-term | 3.4 | 0 |
Balance as of period end | 114.3 | 77.9 |
Contract Liabilities, Noncurrent [Roll Forward] | ||
Balance as of beginning of fiscal year | 25.9 | 7.3 |
Recognized in current year | 7.4 | 0.3 |
Amounts in beginning balance reclassified to revenue | (0.2) | (0.3) |
Current year amounts reclassified to revenue | 0 | 0 |
Other | 0 | 0 |
Reclassification to/from short-term | (3.4) | 0 |
Balance as of period end | $ 29.7 | $ 7.3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Inventory [Line Items] | |||
Raw materials and supplies | $ 174.8 | $ 164.9 | |
Work-in-process | 908.9 | 899.6 | |
Finished goods | 171.7 | 161.3 | |
Total inventories at current cost | 1,255.4 | 1,225.8 | |
Adjustment from current cost to LIFO cost basis | 45.6 | 33.6 | |
Inventory valuation reserves | (119.9) | (104.1) | |
Total inventories, net | 1,181.1 | 1,155.3 | |
LIFO benefit | 12 | $ 1.8 | |
NRV charge | (12) | (1.9) | |
Net cost of sales impact | 0 | $ (0.1) | |
Net Realizable Value Reserve [Member] | |||
Inventory [Line Items] | |||
Inventory valuation reserves | $ (45.6) | $ (33.6) |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 34.2 | $ 34.6 |
Buildings | 861.8 | 832.7 |
Equipment and leasehold improvements | 3,656.4 | 3,671.3 |
Property Plant And Equipment, gross | 4,552.4 | 4,538.6 |
Accumulated depreciation and amortization | (2,106.9) | (2,088.5) |
Total property, plant and equipment, net | 2,445.5 | $ 2,450.1 |
Construction in progress | $ 187.6 |
Joint Ventures (Details)
Joint Ventures (Details) - USD ($) $ in Millions | 3 Months Ended | 10 Months Ended | 34 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Cash and cash equivalents | $ 639 | $ 490.8 | |||
Income (loss) from equity method investments | (3.7) | $ (2.8) | |||
Next Gen Alloys LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cash and cash equivalents | $ 4.9 | ||||
Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Sales to noncontrolling interests | $ 12 | ||||
Impairment of Long-Lived Assets Held-for-use | 14.2 | ||||
Equity method investment ownership percentage | 50.00% | ||||
Due From Affiliates, Allowance For Credit Loss | 4.3 | ||||
Accounts Receivable, Related Parties, Current | $ 2.5 | 0.1 | |||
Uniti | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment ownership percentage | 50.00% | ||||
Tsingshan Group | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Due from Affiliates | $ 5.5 | ||||
Advanced Alloys & Solutions [Member] | Shanghai STAL Precision Stainless Steel Co Ltd | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cash and cash equivalents | 18.8 | ||||
Advanced Alloys & Solutions [Member] | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity method investments | (3.9) | (3.3) | |||
Due from Affiliates | 28.8 | 32.5 | |||
Advanced Alloys & Solutions [Member] | Uniti | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity method investments | 0.2 | $ 0.5 | |||
Forecast | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Sales to noncontrolling interests | $ 17.5 | ||||
Property, Plant and Equipment [Member] | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity method investments | (7.1) | ||||
Prepaid expenses and other current assets | Advanced Alloys & Solutions [Member] | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Due from Affiliates | 8.6 | 8.3 | |||
Other Noncurrent Assets [Member] | Advanced Alloys & Solutions [Member] | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Due from Affiliates | $ 20.2 | $ 24.2 | |||
Allegheny Technologies Inc | Next Gen Alloys LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture ownership percentage | 51.00% | ||||
Allegheny Technologies Inc | Advanced Alloys & Solutions [Member] | Shanghai STAL Precision Stainless Steel Co Ltd | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture ownership percentage | 60.00% | ||||
China Baowu Steel Group Corporation Limited | Advanced Alloys & Solutions [Member] | China Baowu Steel Group Corporation Limited | Shanghai STAL Precision Stainless Steel Co Ltd | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture ownership percentage by unaffiliated entity | 40.00% | ||||
Tsingshan Group | Tsingshan Group | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture ownership percentage by unaffiliated entity | 50.00% | ||||
VSMPO | VSMPO | Uniti | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture ownership percentage by unaffiliated entity | 50.00% |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Schedule of Other Income, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | ||
Rent and royalty income | $ 0.3 | $ 0.7 |
Gain (loss) from disposal of property, plant and equipment, net | 2.5 | (0.8) |
Net equity (loss) gain on joint ventures (See Note 5) | (3.7) | (2.8) |
Total other expense, net | $ (0.9) | $ (2.9) |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Other Income and Expenses [Abstract] | |
Gain on the sale of oil and gas rights | $ 2.5 |
Debt Schedule of Debt (Details)
Debt Schedule of Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Feb. 15, 2016 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Net | $ (11.7) | $ (12.3) | |||
Total Debt | 1,700.7 | 1,398.9 | |||
Short-term debt and current portion of long-term debt | 310.7 | 11.5 | |||
Long-term debt | 1,390 | 1,387.4 | |||
Allegheny Technologies, Convertible Senior Notes, 4.75%, Due 2022 | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | $ 287.5 | $ 287.5 | |||
Debt Instrument, Issuer | Allegheny Technologies | ||||
Debt Instrument, Maturity Date | Jul. 1, 2022 | Jul. 1, 2022 | |||
Interest rate | 4.75% | 4.75% | |||
Allegheny Technologies 5.875% Notes due 2023 (a) | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | [1] | $ 500 | $ 500 | ||
Debt Instrument, Issuer | Allegheny Technologies | ||||
Debt Instrument, Maturity Date | Aug. 15, 2023 | Aug. 15, 2023 | |||
Interest rate | 7.875% | 7.875% | 7.875% | 5.875% | |
ATI 2027 Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | $ 350 | $ 350 | |||
Debt Instrument, Issuer | Allegheny Technologies | ||||
Debt Instrument, Maturity Date | Dec. 1, 2027 | Dec. 1, 2027 | |||
Interest rate | 5.875% | 5.875% | |||
Allegheny Ludlum 6.95% debentures due 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | $ 150 | $ 150 | |||
Debt Instrument, Issuer | Allegheny Ludlum | ||||
Debt Instrument, Maturity Date | Dec. 15, 2025 | Dec. 15, 2025 | |||
Interest rate | 6.95% | 6.95% | |||
2024 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | $ 100 | $ 100 | |||
Debt Instrument, Issuer | Allegheny Technologies | ||||
Debt Instrument, Maturity Date | Sep. 30, 2024 | Sep. 30, 2024 | |||
Interest rate | 4.21% | ||||
Domestic Bank Group $500 million asset-based credit facility | |||||
Debt Instrument [Line Items] | |||||
Short-term Debt | $ 300 | $ 0 | |||
Foreign credit facilities | |||||
Debt Instrument [Line Items] | |||||
Short-term Debt | 3.5 | 4.9 | |||
Other | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | $ 21.4 | $ 18.8 | |||
[1] | Bearing interest at 7.875% effective February 15, 2016. |
Debt Narrative (Details)
Debt Narrative (Details) - USD ($) | 3 Months Ended | |||||||
Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2024 | Jun. 30, 2020 | Dec. 31, 2019 | Feb. 15, 2016 | Dec. 31, 2013 | ||
Allegheny Technologies 5.875% Notes due 2023 (a) | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 7.875% | 7.875% | 7.875% | 5.875% | ||||
Outstanding borrowings | [1] | $ 500,000,000 | $ 500,000,000 | |||||
Domestic Bank Group $500 million asset-based credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term Debt | 300,000,000 | 0 | ||||||
Amount utilized to support the issuance of letters of credit | 35,300,000 | |||||||
Average borrowings during period | $ 53,000,000 | $ 0 | ||||||
Interest rate during period | 2.60% | |||||||
Domestic Bank Group $500 million asset-based credit facility | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||
Minimum fixed charge coverage ratio allowed in event of default | 1 | |||||||
Percentage of borrowing capacity unavailable due to fixed charge coverage ratio covenant | 12.50% | |||||||
Borrowing capacity unavailable due to fixed charge coverage ratio covenant | $ 62,500,000 | |||||||
Minimum required liquidity number of days prior to maturity of Senior Notes | 90 days | |||||||
Domestic Bank Group $500 million asset-based credit facility | Revolving credit facility | Minimum | LIBOR based borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate (percentage) | 1.25% | |||||||
Domestic Bank Group $500 million asset-based credit facility | Revolving credit facility | Minimum | Base rate borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate (percentage) | 0.25% | |||||||
Domestic Bank Group $500 million asset-based credit facility | Revolving credit facility | Maximum | LIBOR based borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate (percentage) | 1.75% | |||||||
Domestic Bank Group $500 million asset-based credit facility | Revolving credit facility | Maximum | Base rate borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate (percentage) | 0.75% | |||||||
Domestic Bank Group $500 million asset-based credit facility | Letter of credit sub-facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 200,000,000 | |||||||
2024 Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.21% | |||||||
Minimum prepayment increments allowed | $ 25,000,000 | |||||||
Outstanding borrowings | 100,000,000 | $ 100,000,000 | ||||||
2024 Term Loan | Interest Rate Swap | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional amount of derivative | $ 50,000,000 | |||||||
2024 Term Loan | LIBOR based borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate (percentage) | 2.00% | |||||||
Allegheny Technologies, Convertible Senior Notes, 4.75%, Due 2022 | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 4.75% | 4.75% | ||||||
Outstanding borrowings | $ 287,500,000 | $ 287,500,000 | ||||||
Forecast | Domestic Bank Group $500 million asset-based credit facility | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, increase to maximum borrowing capacity | $ 200,000,000 | |||||||
Forecast | Delayed-Draw Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 100,000,000 | |||||||
[1] | Bearing interest at 7.875% effective February 15, 2016. |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging (Details) € in Millions, lb in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)lb | Mar. 31, 2019USD ($) | Mar. 31, 2020EUR (€) | |
Derivative Instruments Gain Loss [Line Items] | |||
Percentage of estimated annual nickel requirements | 6.00% | ||
Percentage Of Forecasted Natural Gas Usage Hedged for 2020 | 70.00% | ||
Percentage Of Forecasted Natural Gas Usage Hedged for 2021 | 50.00% | ||
Net derivatives (loss) gain on hedge transactions | $ (12.3) | $ 10.5 | |
Reclassification of Cash Flow Hedge Gain (Loss) [Abstract] | |||
Cash Flow Hedge Gain (Loss) To Be Reclassified Within Twelve Months | (8.1) | ||
Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Net derivatives (loss) gain on hedge transactions | (9.4) | 8 | |
Cost of Sales and Interest Expense [Member] | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain Loss Reclassified From Accumulated OCI Into Income Effective Portion Net | $ (1.4) | (0.7) | |
Nickel | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional amount of nickel hedge (in pounds of nickel) | lb | 6 | ||
Interest Rate Swap | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Net derivatives (loss) gain on hedge transactions | $ (1.9) | (0.2) | |
Interest Rate Swap | Interest Expense [Member] | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain Loss Reclassified From Accumulated OCI Into Income Effective Portion Net | (0.2) | (0.1) | |
Nickel and other raw material contracts | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Net derivatives (loss) gain on hedge transactions | (6.2) | 8.3 | |
Nickel and other raw material contracts | Cost Of Sales | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain Loss Reclassified From Accumulated OCI Into Income Effective Portion Net | (0.2) | (0.4) | |
Natural gas contracts | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Net derivatives (loss) gain on hedge transactions | (1.2) | (0.4) | |
Natural gas contracts | Cost Of Sales | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain Loss Reclassified From Accumulated OCI Into Income Effective Portion Net | (1) | 0.1 | |
Foreign exchange contracts | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Net derivatives (loss) gain on hedge transactions | (0.1) | 0.3 | |
Foreign exchange contracts | Cost Of Sales | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain Loss Reclassified From Accumulated OCI Into Income Effective Portion Net | 0 | (0.3) | |
Designated as Hedging Instrument | Foreign exchange forward | Maturity Dates Through 2020 [Member] | Cash Flow Hedging | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional amount of derivative | € | € 2 | ||
Not Designated as Hedging Instrument | Foreign exchange forward | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional amount of derivative | € | € 0 | ||
Not Designated as Hedging Instrument | Foreign exchange contracts | Cost Of Sales | |||
Derivative Instruments Gain Loss [Line Items] | |||
Derivative Instruments Gain Loss Recognized In Income Net | $ 0 | $ 0.1 | |
2024 Term Loan | |||
Derivative Instruments Gain Loss [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.21% | 4.21% | |
2024 Term Loan | Interest Rate Swap | |||
Derivative Instruments Gain Loss [Line Items] | |||
Notional amount of derivative | $ 50 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging (Details2) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | $ 0.8 | $ 5.6 |
Derivative Fair Value Of Derivative Liability | 13.4 | 7.5 |
Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 0.8 | 5.6 |
Derivative Fair Value Of Derivative Liability | 13.4 | 7.5 |
Designated as Hedging Instrument | Nickel and other raw material contracts | Prepaid expenses and other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 0.7 | 4.4 |
Designated as Hedging Instrument | Nickel and other raw material contracts | Other assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 0.1 | 1.2 |
Designated as Hedging Instrument | Nickel and other raw material contracts | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 4.7 | 2.5 |
Designated as Hedging Instrument | Nickel and other raw material contracts | Other long-term liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 0.8 | 0 |
Designated as Hedging Instrument | Interest Rate Swap | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 1 | 0.3 |
Designated as Hedging Instrument | Interest Rate Swap | Other long-term liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 3 | 1.2 |
Designated as Hedging Instrument | Natural gas contracts | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 3 | 2.5 |
Designated as Hedging Instrument | Natural gas contracts | Other long-term liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 0.8 | 1 |
Designated as Hedging Instrument | Foreign exchange contracts | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | $ 0.1 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Value Reported Amount Fair Value Disclosure | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 639 | $ 490.8 |
Derivative financial instruments, Assets | 0.8 | 5.6 |
Derivative Financial Instruments, liabilities | 13.4 | 7.5 |
Debt | 1,712.4 | 1,411.2 |
Estimate Of Fair Value Fair Value Disclosure | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 639 | 490.8 |
Derivative financial instruments, Assets | 0.8 | 5.6 |
Derivative Financial Instruments, liabilities | 13.4 | 7.5 |
Debt | 1,580.1 | 1,676.5 |
Estimate Of Fair Value Fair Value Disclosure | Fair Value Inputs Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 639 | 490.8 |
Derivative financial instruments, Assets | 0 | 0 |
Derivative Financial Instruments, liabilities | 0 | 0 |
Debt | 1,155.2 | 1,552.8 |
Estimate Of Fair Value Fair Value Disclosure | Fair Value Inputs Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Derivative financial instruments, Assets | 0.8 | 5.6 |
Derivative Financial Instruments, liabilities | 13.4 | 7.5 |
Debt | $ 424.9 | $ 123.7 |
Retirement Benefits (Details1)
Retirement Benefits (Details1) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Plans Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost - benefits earned during the year | $ 3.2 | $ 3.2 |
Interest cost on benefits earned in prior years | 21.5 | 26.3 |
Expected return on plan assets | (33.6) | (32.8) |
Amortization of prior service cost (credit) | 0.2 | 0.1 |
Amortization of net actuarial loss | 18.6 | 18.4 |
Total retirement benefit expense | 9.9 | 15.2 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost - benefits earned during the year | 0.5 | 0.5 |
Interest cost on benefits earned in prior years | 2.7 | 3.7 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | (0.9) | (0.7) |
Amortization of net actuarial loss | 2.7 | 3.3 |
Total retirement benefit expense | $ 5 | $ 6.8 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Income tax (provision) benefit | $ (10.8) | $ (0.8) |
Effective income tax rate | 31.40% | 4.70% |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 955.5 | $ 1,004.8 |
Operating profit (loss) | 81.2 | 61.7 |
LIFO and net realizable value reserves | 0 | (0.1) |
Corporate expenses | (12.8) | (16.6) |
Closed operations and other expenses | (6.6) | (3.1) |
Gain on asset sales, net | 2.5 | 0 |
Restructuring and other charges | (8) | 0 |
Interest expense, net | (21.9) | (24.8) |
Income from Continuing Operations before Income Taxes, Noncontrolling Interest | 34.4 | 17.1 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Sales | 1,036.1 | 1,088.5 |
Operating Segments | High Performance Materials & Components | ||
Segment Reporting Information [Line Items] | ||
Sales | 448.5 | 516.3 |
Operating profit (loss) | 57.1 | 51.7 |
Operating Segments | Advanced Alloys & Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 587.6 | 572.2 |
Operating profit (loss) | 24.1 | 10 |
Internal Customers | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Sales | 80.6 | 83.7 |
Internal Customers | Operating Segments | High Performance Materials & Components | ||
Segment Reporting Information [Line Items] | ||
Sales | 28.2 | 19.7 |
Internal Customers | Operating Segments | Advanced Alloys & Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 52.4 | 64 |
External Customers | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Sales | 955.5 | 1,004.8 |
External Customers | Operating Segments | High Performance Materials & Components | ||
Segment Reporting Information [Line Items] | ||
Sales | 420.3 | 496.6 |
External Customers | Operating Segments | Advanced Alloys & Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | $ 535.2 | $ 508.2 |
Business Segments - Additional
Business Segments - Additional Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)employeesegment | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 12.4 | ||
Gain on asset sales, net | $ 2.5 | $ 0 | |
Number of business segments | segment | 2 | ||
Goodwill | $ 520.8 | $ 525.8 | |
Gain on the sale of oil and gas rights | $ 2.5 | ||
Restructuring and Related Cost, Expected Number of Positions Eliminated | employee | 90 | ||
Aerospace and Defense Market Concentration [Member] | High Performance Materials & Components | Revenue from Contract with Customer, Segment Benchmark [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Concentration Risk, Percentage | 80.00% | ||
Energy and Aerospace & Defense Market Concentration [Member] | Advanced Alloys & Solutions [Member] | Revenue from Contract with Customer, Segment Benchmark [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Concentration Risk, Percentage | 50.00% | ||
Allegheny & Tsingshan Stainless | |||
Restructuring Cost and Reserve [Line Items] | |||
Equity method investment ownership percentage | 50.00% | ||
Uniti | |||
Restructuring Cost and Reserve [Line Items] | |||
Equity method investment ownership percentage | 50.00% | ||
Other Current Liabilities [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 11.2 | ||
Other long-term liabilities [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 1.2 | ||
Allegheny Technologies Inc | Shanghai STAL Precision Stainless Steel Co Ltd | Advanced Alloys & Solutions [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Joint venture ownership percentage | 60.00% |
Per Share Information (Details)
Per Share Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Earnings Per Share Reconciliation [Abstract] | |||
Net income attributable to ATI | $ 21.1 | $ 15 | |
4.75% Convertible Senor Notes due 2022 | 2.3 | 0 | |
Net income attributable to ATI after assumed conversions | $ 23.4 | $ 15 | |
Denominator for basic net income per common share – weighted average shares | 126.1 | 125.4 | |
Share-based compensation | 0.4 | 0.7 | |
Effective of dilutive securities: 4.75% Convertible Senior Notes due 2022 | 19.9 | 0 | |
Denominator for diluted net income per common share – adjusted weighted average shares and assumed conversions | 146.4 | 126.1 | |
Basic net income attributable to ATI per common share (in dollars per share) | $ 0.17 | $ 0.12 | |
Diluted net income attributable to ATI per common share (in dollars per share) | $ 0.16 | $ 0.12 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share Amount | 0 | 19.9 | |
Allegheny Technologies, Convertible Senior Notes, 4.75%, Due 2022 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Interest rate | 4.75% | 4.75% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ (1,201.7) | $ (1,133.8) | ||
OCI before reclassifications | (32) | 13.8 | ||
Amounts reclassified from AOCI | 17.1 | 24.5 | ||
Net current-period OCI | (14.9) | 38.3 | ||
Ending balance | (1,216.6) | (1,095.5) | ||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 9.8 | 11.1 | ||
OCI before reclassifications | (0.8) | 5.2 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Net current-period OCI | (0.8) | 5.2 | ||
Ending balance | 9 | 16.3 | ||
Post- retirement benefit plans [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (1,083.1) | (1,005.8) | ||
OCI before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCI | 15.7 | [1] | 16.1 | [2] |
Net current-period OCI | 15.7 | 16.1 | ||
Ending balance | (1,067.4) | (989.7) | ||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 0 | 0 | ||
OCI before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Net current-period OCI | 0 | 0 | ||
Ending balance | 0 | 0 | ||
Currency translation adjustment [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (76.6) | (73.9) | ||
OCI before reclassifications | (22.6) | 5.8 | ||
Amounts reclassified from AOCI | 0 | [3] | 0 | [4] |
Net current-period OCI | (22.6) | 5.8 | ||
Ending balance | (99.2) | (68.1) | ||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 9.8 | 11.1 | ||
OCI before reclassifications | (0.8) | 5.2 | ||
Amounts reclassified from AOCI | 0 | [3] | 0 | [4] |
Net current-period OCI | (0.8) | 5.2 | ||
Ending balance | 9 | 16.3 | ||
Derivatives [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (0.5) | (4.8) | ||
OCI before reclassifications | (9.4) | 8 | ||
Amounts reclassified from AOCI | 1.4 | [5] | 0.7 | [6] |
Net current-period OCI | (8) | 8.7 | ||
Ending balance | (8.5) | 3.9 | ||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 0 | 0 | ||
OCI before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Net current-period OCI | 0 | 0 | ||
Ending balance | 0 | 0 | ||
Accumulated Deferred Tax Asset Valuation Allowance [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (41.5) | (49.3) | ||
OCI before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCI | 0 | 7.7 | [7] | |
Net current-period OCI | 0 | 7.7 | ||
Ending balance | (41.5) | (41.6) | ||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 0 | 0 | ||
OCI before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Net current-period OCI | 0 | 0 | ||
Ending balance | $ 0 | $ 0 | ||
[1] | Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). | |||
[2] | Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10). | |||
[3] | No amounts were reclassified to earnings. | |||
[4] | No amounts were reclassified to earnings. | |||
[5] | Amounts related to derivatives are included in cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 8). | |||
[6] | Amounts related to derivatives are included in cost of goods sold in the period or periods the hedged item affects earnings (see Note 8). | |||
[7] | Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization to net income of net prior service credits | $ (0.7) | $ (0.6) | |
Amount reclassified from AOCI, Postretirement benefit plans, Actuarial losses | 21.3 | 21.7 | |
Income before income taxes | 34.4 | 17.1 | |
Income tax provision | 10.8 | 0.8 | |
Cost of sales | (820.7) | (873.7) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Post- retirement benefit plans [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization to net income of net prior service credits | [1] | 0.7 | 0.6 |
Amount reclassified from AOCI, Postretirement benefit plans, Actuarial losses | [1] | (21.3) | (21.7) |
Income before income taxes | [2] | (20.6) | (21.1) |
Income tax provision | [3] | (4.9) | (5) |
Net income (loss) | (15.7) | (16.1) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income before income taxes | [2] | (1.8) | (0.9) |
Income tax provision | [3] | (0.4) | (0.2) |
Net income (loss) | (1.4) | (0.7) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Nickel and other raw material contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of sales | [4] | (0.3) | (0.5) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Natural gas contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of sales | [4] | (1.3) | 0.1 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Foreign exchange contracts | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of sales | [4] | 0 | (0.4) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Interest Rate Swap | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest Expense | [4] | $ (0.2) | $ (0.1) |
[1] | Amounts are reported in nonoperating retirement benefit expense (see Note 10). | ||
[2] | For pretax items, positive amounts are income and negative amounts are expense in terms of the impact to net income. Tax effects are presented in conformity with ATI’s presentation in the consolidated statements of income. | ||
[3] | These amounts exclude the impact of any deferred tax asset valuation allowances, when applicable. | ||
[4] | Amounts related to derivatives, with the exception of the interest rate swap, are included in cost of goods sold in the period or periods the hedged item affects earnings. Amounts related to the interest rate swap are included in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings (see Note 8). |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2020USD ($) |
Components of Environmental Loss Accrual [Abstract] | |
Accrual For Environmental Loss Contingencies | $ 15 |
Accrued Environmental Loss Contingencies Current | 5 |
Federal Superfund and comparable state-managed sites | 3 |
Formerly owned or operated sites | 10 |
Owned or controlled sites at which Company operations have been discontinued | 1 |
Environmental Remediation Obligation For Ongoing Operations | 1 |
Maximum | |
Loss Contingency, Estimate [Abstract] | |
Loss contingency maximum possible loss | $ 16 |