Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 16, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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 $0.10 | |
Trading Symbol | ATI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 127,203,072 | |
Amendment Flag | false | |
Entity Central Index Key | 0001018963 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash and cash equivalents | $ 541.7 | $ 645.9 |
Accounts receivable, net | 423.9 | 345.8 |
Short-term contract assets | 42 | 38.9 |
Inventories, net | 1,047.8 | 997.1 |
Prepaid expenses and other current assets | 38 | 38.3 |
Total current assets | 2,093.4 | 2,066 |
Property, plant and equipment, net | 1,478.7 | 1,469.2 |
Goodwill | 241.6 | 240.7 |
Other assets | 254.8 | 259 |
Total assets | 4,068.5 | 4,034.9 |
Current Liabilities: | ||
Accounts payable | 324.8 | 290.6 |
Short-term contract liabilities | 118.7 | 111.8 |
Short-term debt and current portion of long-term debt | 15.7 | 17.8 |
Other current liabilities | 230 | 233.1 |
Total current liabilities | 689.2 | 653.3 |
Long-term debt | 1,598.4 | 1,550 |
Accrued postretirement benefits | 321.7 | 326.7 |
Pension liabilities | 642.8 | 673.6 |
Other long-term liabilities | 207.1 | 189.9 |
Total liabilities | 3,459.2 | 3,393.5 |
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-127,429,740 shares at March 31, 2021 and 126,820,440 shares at December 31, 2020; outstanding-127,203,072 shares at March 31, 2021 and 126,817,768 shares at December 31, 2020 | 12.7 | 12.7 |
Additional paid-in capital | 1,580.5 | 1,625.5 |
Retained earnings | 103 | 106.5 |
Treasury stock: 226,668 shares at March 31, 2021 and 2,672 shares at December 31, 2020 | (4.7) | 0 |
Accumulated other comprehensive loss, net of tax | (1,208.6) | (1,223.6) |
Total ATI stockholders’ equity | 482.9 | 521.1 |
Noncontrolling interests | ||
Noncontrolling interests | 126.4 | 120.3 |
Total Equity | 609.3 | 641.4 |
Total Liabilities and Equity | $ 4,068.5 | $ 4,034.9 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 0.10 | $ 0.10 |
Preferred stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.10 | $ 0.10 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 127,429,740 | 126,820,440 |
Common stock, outstanding (in shares) | 127,203,072 | 126,817,768 |
Treasury stock (in shares) | 226,668 | 2,672 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 692.5 | $ 955.5 |
Cost of sales | 606.7 | 820.7 |
Gross profit | 85.8 | 134.8 |
Selling and administrative expenses | 54 | 58.4 |
Restructuring charges | 0 | 8 |
Operating income | 31.8 | 68.4 |
Nonoperating retirement benefit expense | (6.8) | (11.2) |
Interest expense, net | (23.4) | (21.9) |
Other income (expense), net | 1.5 | (0.9) |
Income before income taxes | 3.1 | 34.4 |
Income tax provision | 5.5 | 10.8 |
Net income (loss) | (2.4) | 23.6 |
Less: Net income attributable to noncontrolling interests | 5.5 | 2.5 |
Net income (loss) attributable to ATI | $ (7.9) | $ 21.1 |
Basic net income (loss) attributable to ATI per common share (in dollars per share) | $ (0.06) | $ 0.17 |
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ (0.06) | $ 0.16 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (2.4) | $ 23.6 |
Currency translation adjustment | ||
Unrealized net change arising during the period | (4.8) | (23.4) |
Derivatives | ||
Net derivatives gain (loss) on hedge transactions | 0.4 | (12.3) |
Reclassification to net income (loss) of net realized (gain) loss | (1.7) | 1.8 |
Income taxes on derivative transactions | 0 | (2.5) |
Total | (1.3) | (8) |
Postretirement benefit plans | ||
Amortization of net actuarial loss | 22.2 | 21.3 |
Amortization to net income (loss) of net prior service credits | (0.5) | (0.7) |
Income taxes on postretirement benefit plans | 0 | 4.9 |
Total | 21.7 | 15.7 |
Other comprehensive income (loss), net of tax | 15.6 | (15.7) |
Comprehensive income | 13.2 | 7.9 |
Less: Comprehensive income attributable to noncontrolling interests | 6.1 | 1.7 |
Comprehensive income attributable to ATI | $ 7.1 | $ 6.2 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Activities: | ||
Net income (loss) | $ (2.4) | $ 23.6 |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 36.1 | 37.3 |
Deferred taxes | (0.4) | 8.3 |
Net gains from disposal of property, plant and equipment | (1.2) | (2.5) |
Changes in operating assets and liabilities: | ||
Inventories | (50.8) | (25.8) |
Accounts receivable | (78.1) | (39.2) |
Accounts payable | 34.1 | (96.5) |
Retirement benefits | (16.6) | (23) |
Accrued liabilities and other | 11.2 | 2.4 |
Cash used in operating activities | (68.1) | (115.4) |
Investing Activities: | ||
Purchases of property, plant and equipment | (26.4) | (29.1) |
Proceeds from disposal of property, plant and equipment | 1.4 | 2.9 |
Other | (0.1) | 1 |
Cash used in investing activities | (25.1) | (25.2) |
Financing Activities: | ||
Payments on long-term debt and finance leases | (3) | (2) |
Net borrowings (payments) under credit facilities | (3.3) | 298.6 |
Shares repurchased for income tax withholding on share-based compensation and other | (4.7) | (7.8) |
Cash provided by (used in) financing activities | (11) | 288.8 |
Increase (decrease) in cash and cash equivalents | ||
Increase (decrease) in cash and cash equivalents | (104.2) | 148.2 |
Cash and cash equivalents at beginning of period | 645.9 | 490.8 |
Cash and cash equivalents at end of period | $ 541.7 | $ 639 |
STATEMENTS OF CHANGES IN CONSOL
STATEMENTS OF CHANGES IN CONSOLIDATED EQUITY - USD ($) $ in Millions | Total | [CommonStockMember] | Additional Paid-in Capital [Member] | [RetainedEarningsMember] | [TreasuryStockMember] | [AccumulatedOtherComprehensiveIncomeMember] | [NoncontrollingInterestMember] |
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 (loss) | 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 |
Total Stockholders' Equity at Dec. 31, 2020 | 641.4 | 12.7 | 1,625.5 | 106.5 | 0 | (1,223.6) | 120.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (2.4) | (7.9) | 5.5 | ||||
Other comprehensive income (loss) | 15.6 | 15 | 0.6 | ||||
Employee stock plans | 0.1 | 4.8 | 0 | (4.7) | |||
Total Stockholders' Equity at Mar. 31, 2021 | $ 609.3 | $ 12.7 | $ 1,580.5 | $ 103 | $ (4.7) | $ (1,208.6) | $ 126.4 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
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. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2020 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, 2020 financial information has been derived from the Company’s audited consolidated financial statements. New Accounting Pronouncements Adopted In August 2020, the FASB issued new accounting guidance related to accounting for convertible instruments. Under this new guidance, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives, or that do not result in substantial premiums accounted for as paid-in capital. As such, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. By removing those separation models, the reported interest rate of convertible debt instruments typically will be closer to the coupon interest rate. The new guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation, requiring the if-converted method, and requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. This new guidance is effective for the Company in fiscal year 2022, with early adoption permitted. The Company adopted this new accounting guidance related to accounting for convertible instruments effective January 1, 2021 using the modified transition approach with the cumulative effect recognized as an adjustment to the opening balance of retained earnings. This new guidance is applicable to the Company’s 3.5% Convertible Senior Notes due 2025 (the 2025 Convertible Notes) that were issued in June 2020, for which the embedded conversion option was required to be separately accounted for as a component of stockholders’ equity. Upon adoption on January 1, 2021, long-term debt increased by $45.4 million and stockholders’ equity decreased by the same amount, representing the net impact of two adjustments: (1) the $49.8 million value of the embedded conversion, which is net of allocated offering costs, previously classified in additional paid-in capital in stockholders’ equity, and (2) a $4.4 million increase to retained earnings for the cumulative effect of adoption primarily related to the non-cash interest expense recorded in fiscal year 2020 for the amortization of the portion of the 2025 Convertible Notes allocated to stockholders’ equity. Prospectively, the reported interest expense for the 2025 Convertible Notes will no longer include the non-cash interest expense of the equity component as required under prior accounting standards and will be closer to the 3.5% cash coupon rate. There was no impact to the Company’s earnings per share calculation as it previously applied the if-converted method to the 2025 Convertible Notes given ATI’s flexibility to settle conversions of the 2025 Convertible Notes in cash, shares of ATI’s common stock or a combination thereof, at ATI’s election. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 and 2020 were as follows: (in millions) First quarter ended March 31, 2021 March 31, 2020 HPMC AA&S Total HPMC AA&S Total Diversified Global Markets: Aerospace & Defense $ 179.8 $ 74.4 $ 254.2 $ 358.8 $ 133.7 $ 492.5 Energy* 30.5 118.6 149.1 24.1 146.5 170.6 Automotive 2.0 89.5 91.5 2.0 74.5 76.5 Electronics 0.3 55.3 55.6 0.3 32.9 33.2 Construction/Mining 5.1 37.4 42.5 5.3 38.3 43.6 Food Equipment & Appliances — 35.4 35.4 — 50.4 50.4 Medical 11.2 17.8 29.0 17.0 21.6 38.6 Other 12.0 23.2 35.2 12.8 37.3 50.1 Total $ 240.9 $ 451.6 $ 692.5 $ 420.3 $ 535.2 $ 955.5 *Includes the oil & gas, downstream processing, and specialty energy markets. (in millions) First quarter ended March 31, 2021 March 31, 2020 HPMC AA&S Total HPMC AA&S Total Primary Geographical Market: United States $ 128.3 $ 271.6 $ 399.9 $ 227.3 $ 378.8 $ 606.1 Asia 20.1 122.6 142.7 25.1 94.2 119.3 Europe 79.1 34.0 113.1 133.5 37.6 171.1 Canada 8.2 9.1 17.3 11.6 10.4 22.0 South America, Middle East and other 5.2 14.3 19.5 22.8 14.2 37.0 Total $ 240.9 $ 451.6 $ 692.5 $ 420.3 $ 535.2 $ 955.5 Comparative information of the Company’s major high-value and standard products based on their percentages of sales is included in the following table. In conjunction with the Company’s announced ongoing exit of standard stainless products, ATI reclassified certain items as High-Value Products within AA&S segment results. Prior period information reflects these reclassifications. Hot-Rolling and Processing Facility conversion service sales in the AA&S segment are excluded from this presentation. First quarter ended March 31, 2021 March 31, 2020 HPMC AA&S Total HPMC AA&S Total Diversified Products and Services: High-Value Products Nickel-based alloys and specialty alloys 36 % 28 % 31 % 40 % 31 % 35 % Precision rolled strip products — % 31 % 20 % — % 22 % 12 % Precision forgings, castings and components 43 % — % 15 % 35 % — % 16 % Titanium and titanium-based alloys 21 % 7 % 12 % 25 % 11 % 18 % Zirconium and related alloys — % 15 % 10 % — % 13 % 7 % Total High-Value Products 100 % 81 % 88 % 100 % 77 % 88 % Standard Products Standard stainless products — % 19 % 12 % — % 23 % 12 % Total 100 % 100 % 100 % 100 % 100 % 100 % The Company maintained a backlog of confirmed orders totaling $1.5 billion and $2.1 billion at March 31, 2021 and 2020, respectively. Due to the structure of the Company’s long-term agreements, approximately 75% of this backlog at March 31, 2021 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, 2021 and December 31, 2020, accounts receivable with customers were $428.1 million and $350.1 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, 2021 and 2020: (in millions) Accounts Receivable - Reserve for Doubtful Accounts March 31, March 31, Balance as of beginning of fiscal year $ 4.3 $ 4.6 Expense to increase the reserve 0.2 0.1 Write-off of uncollectible accounts (0.3) (0.3) Balance as of period end $ 4.2 $ 4.4 (in millions) Contract Assets Short-term March 31, March 31, Balance as of beginning of fiscal year $ 38.9 $ 38.5 Recognized in current year 25.7 25.1 Reclassified to accounts receivable (19.1) (20.2) Impairment — — Reclassification to/from contract liability (3.5) — Divestiture — 0.1 Balance as of period end $ 42.0 $ 43.5 Long-term March 31, March 31, Balance as of beginning of fiscal year $ — $ 0.1 Recognized in current year — — Reclassified to accounts receivable — — Impairment — — Reclassification to/from short-term — (0.1) Balance as of period end $ — $ — (in millions) Contract Liabilities Short-term March 31, March 31, Balance as of beginning of fiscal year $ 111.8 $ 78.7 Recognized in current year 57.1 71.7 Amounts in beginning balance reclassified to revenue (43.0) (22.1) Current year amounts reclassified to revenue (4.0) (17.1) Other — (0.3) Reclassification to/from long-term and contract asset (3.2) 3.4 Balance as of period end $ 118.7 $ 114.3 Long-term March 31, March 31, Balance as of beginning of fiscal year $ 32.0 $ 25.9 Recognized in current year 24.3 7.4 Amounts in beginning balance reclassified to revenue (0.3) (0.2) Current year amounts reclassified to revenue — — Other — — Reclassification to/from short-term (0.3) (3.4) Balance as of period end $ 55.7 $ 29.7 |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at March 31, 2021 and December 31, 2020 were as follows (in millions): March 31, December 31, Raw materials and supplies $ 224.1 $ 207.6 Work-in-process 736.0 690.7 Finished goods 164.0 181.6 Total inventories at current cost 1,124.1 1,079.9 Adjustment from current cost to LIFO cost basis 37.3 44.1 Inventory valuation reserves (113.6) (126.9) Total inventories, net $ 1,047.8 $ 997.1 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 net realizable value (NRV) inventory valuation reserves to adjust carrying value of LIFO inventory to current replacement cost. These NRV reserves were $37.3 million at March 31, 2021 and $44.1 million at December 31, 2020. 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, 2021 2020 LIFO benefit (charge) $ (6.8) $ 12.0 NRV benefit (charge) 6.8 (12.0) Net cost of sales impact $ — $ — |
Property Plant And Equipment
Property Plant And Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | Property, Plant and Equipment Property, plant and equipment at March 31, 2021 and December 31, 2020 was as follows (in millions): March 31, December 31, Land $ 34.8 $ 34.8 Buildings 569.5 564.7 Equipment and leasehold improvements 2,768.4 2,736.9 3,372.7 3,336.4 Accumulated depreciation and amortization (1,894.0) (1,867.2) Total property, plant and equipment, net $ 1,478.7 $ 1,469.2 The construction in progress portion of property, plant and equipment at March 31, 2021 was $252.6 million. Capital expenditures on the consolidated statement of cash flows for the period ended March 31, 2021 exclude $9.2 million of completion payments that were included in property, plant and equipment and accrued at March 31, 2021. |
Joint Ventures
Joint Ventures | 3 Months Ended |
Mar. 31, 2021 | |
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 statements of operations 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 and automotive markets located in Asia. Cash and cash equivalents held by STAL as of March 31, 2021 were $34.1 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, 2021 were $2.5 million. Equity Method Joint Ventures A&T Stainless: The Company has a 50% interest in 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 included the Company’s previously-idled direct roll and pickle (DRAP) facility in Midland, PA. ATI provided 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. These requests were denied by the U.S. Department of Commerce in the second quarter of 2020, and the 25% tariff remains in place. Due to repeated tariff exclusion denials, the DRAP facility was idled in an orderly shut down process that was completed in the third quarter of 2020. ATI’s share of A&T Stainless results were losses of $0.5 million and $3.9 million for the three months ended March 31, 2021 and 2020, respectively, which is included within other income/expense, net, on the consolidated statements of operations and in the AA&S segment’s operating results. As of March 31, 2021 and December 31, 2020, ATI had net receivables for working capital advances and administrative services from A&T Stainless of $13.8 million and $14.0 million, respectively. For the March 31, 2021 balance of net receivables, $0.7 million was reported in prepaid expenses and other current assets and $13.1 million in other long-term assets on the consolidated balance sheet, while for December 31, 2020, $0.5 million was reported in prepaid expenses and other current assets and $13.5 million in other long-term assets. 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. 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 $0.5 million and $0.2 million for the three months ended March 31, 2021 and 2020, respectively, which is included in the AA&S segment’s operating results, and within other income/expense, net on the consolidated statements of operations. |
Supplemental Financial Statemen
Supplemental Financial Statement Information - (Notes) | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Other income (expense), net for the three months ended March 31, 2021 and 2020 was as follows: (in millions) Three months ended March 31, 2021 2020 Rent and royalty income $ 0.3 $ 0.3 Gains from disposal of property, plant and equipment, net 1.2 2.5 Net equity loss on joint ventures (See Note 5) — (3.7) Total other income (expense), net $ 1.5 $ (0.9) Gains from disposal of property, plant and equipment, net for the three months ended March 31, 2020 included a $2.5 million gain on the sale of certain oil and gas rights. This cash gain was reported as an investing activity on the consolidated statement of cash flows for the three months ended March 31, 2020 and is excluded from segment operating results. Reserves for restructuring charges at March 31, 2021 consist of severance costs incurred in the fourth quarter 2019 and throughout the 2020 fiscal year, the majority of which are expected to be paid by the end of 2021. Restructuring reserves activity is as follows: Severance and Employee Benefit Costs Balance at December 31, 2020 $ 43.4 Additions — Payments (6.5) Balance at March 31, 2021 $ 36.9 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at March 31, 2021 and December 31, 2020 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 3.5% Convertible Senior Notes due 2025 291.4 291.4 Allegheny Technologies 4.75% Convertible Senior Notes due 2022 84.2 84.2 Allegheny Ludlum 6.95% Debentures due 2025 (b) 150.0 150.0 Term Loan due 2024 200.0 200.0 U.S. revolving credit facility — — Foreign credit facilities 2.2 5.5 Finance leases and other 51.4 48.0 Debt issuance costs (15.1) (14.5) Equity component of convertible debt — (46.8) Total debt 1,614.1 1,567.8 Short-term debt and current portion of long-term debt 15.7 17.8 Total long-term debt $ 1,598.4 $ 1,550.0 (a) Bearing interest at 7.875% effective February 15, 2016. (b) The payment obligations of these debentures issued by Allegheny Ludlum, LLC are fully and unconditionally guaranteed by ATI. 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 $200 million term loan (Term Loan). 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. In addition, the Company 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 Company has a $50 million floating-for-fixed interest rate swap which converts a portion 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) $87.5 million, calculated as 12.5% of the then applicable maximum advance amount under the revolving credit portion of the ABL and the outstanding Term Loan balance, or (ii) $62.5 million. The Company does not meet this required fixed charge coverage ratio at March 31, 2021. As a result, the Company is unable to access this remaining 12.5%, or $87.5 million, of the ABL facility until it meets the required ratio. 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. The ABL also contains customary affirmative and negative covenants for credit facilities of this type, including limitations on the Company’s ability to incur additional indebtedness or liens or to enter into investments, mergers and acquisitions, dispositions of assets and transactions with affiliates, some of which are more restrictive at any time during the term of the ABL when the Company’s fixed charge coverage ratio is less than 1.00:1.00 and its undrawn availability under the revolving portion of the ABL is less than the greater of (a) $150 million or (b) 30% of the sum of the maximum advance amount under the revolving credit portion of the ABL and the outstanding Term Loan balance. As of March 31, 2021, there were no outstanding borrowings under the revolving portion of the ABL facility, and $42.8 million was utilized to support the issuance of letters of credit. There were no average revolving credit borrowings under the ABL facility for the first quarter of 2021. 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. 2025 Convertible Notes During 2020, the Company issued $291.4 million aggregate principal amount of 2025 Convertible Notes. The 2025 Convertible Notes have a 3.5% cash coupon rate that is payable semi-annually in arrears on each June 15 and December 15. Including amortization of deferred issuance costs, the effective interest rate is 4.2% for the first quarter ended March 31, 2021. Remaining deferred issuance costs were $7.8 million at March 31, 2021. The Company does not have the right to redeem the 2025 Convertible Notes prior to June 15, 2023. On or after June 15, 2023 and prior to the 41st scheduled trading day immediately preceding the maturity date, the Company may redeem all or any portion of the 2025 Convertible Notes, at its option, at a redemption price equal to 100% of the principal amount thereof, plus any accrued and unpaid interest if the last reported sale price of ATI’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on the trading day immediately preceding the date on which ATI provides written notice of redemption. The initial conversion rate for the 2025 Convertible Notes is 64.5745 shares of ATI common stock per $1,000 principal amount of the 2025 Convertible Notes, equivalent to an initial conversion price of approximately $15.49 per share (18.8 million shares). Prior to the close of business on the business day immediately preceding March 15, 2025, the 2025 Convertible Notes will be convertible at the option of the holders of 2025 Convertible Notes only upon the satisfaction of specified conditions and during certain periods. Thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date, the 2025 Convertible Notes will be convertible at the option of holders of 2025 Convertible Notes at any time regardless of these conditions. Conversions of the 2025 Convertible Notes may be settled in cash, shares of ATI’s common stock or a combination thereof, at ATI’s election. As a result of this flexible settlement feature of the 2025 Convertible Notes, the embedded conversion option was required to be separately accounted for as a component of stockholders’ equity. The value of the embedded conversion option was determined to be $51.4 million based on the estimated fair value of comparable senior unsecured debt without the conversion feature, using an income approach of expected present value. During the 2020 fiscal year, the equity component was amortized as additional non-cash interest expense, commonly referred to as phantom yield, over the term of the 2025 Convertible Notes using the effective interest method. As a result, as of December 31, 2020, $49.8 million of the 2025 Convertible Notes was recorded in additional paid-in-capital in stockholders’ equity ($51.4 million of the gross $291.4 million, net of $1.6 million of allocated offering costs). Due to the non-cash phantom yield and including debt issue cost amortization, the 2025 Convertible Notes had reported interest expense in 2020 at an 8.4% rate, higher than the 3.5% cash coupon rate. Effective January 1, 2021, ATI early-adopted new accounting guidance as discussed in Note 1 that eliminated the equity component classification of the embedded conversion option, as well as the phantom yield portion of interest expense on a prospective basis. Upon adoption on January 1, 2021, long-term debt increased by $45.4 million, representing the $46.8 million equity component of convertible debt as of December 31, 2020 in the above table, net of reclassified debt issue costs. ATI entered into privately negotiated capped call transactions with certain of the initial purchasers of the 2025 Convertible Notes or their respective affiliates (collectively, the Counterparties). The capped call transactions are expected generally to reduce potential dilution to ATI’s common stock upon any conversion of the 2025 Convertible Notes and/or offset any cash payments ATI is required to make in excess of the principal amount of converted 2025 Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap based on the cap price. The cap price of the capped call transactions initially is approximately $19.76 per share, and is subject to adjustments under the terms of the capped call transactions. 2022 Convertible Notes As of March 31, 2021, the Company had $84.2 million of aggregate principal amount of the 2022 Convertible Notes outstanding, which mature on July 1, 2022. Interest on the 2022 Convertible Notes at 4.75% cash coupon rate is payable semi-annually in arrears on each January 1 and July 1. Including amortization of deferred issuance costs, the effective interest rate is 5.4%. Remaining deferred issuance costs were $0.6 million at March 31, 2021. The Company does not have the right to redeem the 2022 Convertible Notes prior to their stated maturity date. Holders of the 2022 Convertible Notes have the option to convert their notes into shares of the Company’s common stock, at any time prior to the close of business on the business day immediately preceding the stated maturity date (July 1, 2022). The initial conversion rate for the remaining $84.2 million of 2022 Convertible Notes is 69.2042 shares of ATI common stock per $1,000 (in whole dollars) principal amount of Notes (5.8 million shares), equivalent to conversion price of $14.45 per share, subject to adjustment in certain events. Other than receiving cash in lieu of fractional shares, holders do not have the option to receive cash instead of shares of common stock upon conversion. Accrued and unpaid interest that exists upon conversion of a note will be deemed paid by the delivery of shares of ATI common stock and no cash payment or additional shares will be given to the holders. If the Company undergoes a fundamental change as defined in the agreement, holders of the 2022 Convertible Notes may require the Company to repurchase the notes in whole or in part for cash at a price equal to 100% of the principal amount of the notes to be purchased plus any accrued and unpaid interest to, but excluding, the repurchase date. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021, 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 10% of a single year’s estimated nickel raw material purchase requirements. At March 31, 2021, the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges. At March 31, 2021, the Company hedged approximately 75% of the Company’s forecasted domestic requirements for natural gas for the remainder of 2021 and approximately 25% for 2022. 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, 2021, the Company had no significant outstanding foreign currency forward contracts. 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 a portion 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, was 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: Foreign exchange contracts Prepaid expenses and other current assets $ 0.1 $ — Nickel and other raw material contracts Prepaid expenses and other current assets 2.1 3.7 Natural gas contracts Prepaid expenses and other current assets 0.5 0.2 Nickel and other raw material contracts Other assets 0.4 0.7 Natural gas contracts Other assets 0.1 0.2 Total derivatives designated as hedging instruments $ 3.2 $ 4.8 Liability derivatives Balance sheet location Derivatives designated as hedging instruments: Interest rate swap Other current liabilities $ 1.0 $ 1.0 Natural gas contracts Other current liabilities 0.1 0.3 Nickel and other raw material contracts Other current liabilities 0.9 0.1 Interest rate swap Other long-term liabilities 1.7 2.5 Natural gas contracts Other long-term liabilities — 0.1 Total derivatives designated as hedging instruments $ 3.7 $ 4.0 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, 2021. 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, 2021, a pre-tax gain of $0.7 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, 2021 and 2020 was as follows (in millions): Amount of Gain (Loss) Amount of Gain (Loss) Three months ended March 31, Three months ended March 31, Derivatives in Cash Flow Hedging Relationships 2021 2020 2021 2020 Nickel and other raw material contracts $ (0.6) $ (6.2) $ 1.5 $ (0.2) Natural gas contracts 0.4 (1.2) — (1.0) Foreign exchange contracts 0.1 (0.1) — — Interest rate swap 0.4 (1.9) (0.2) (0.2) Total $ 0.3 $ (9.4) $ 1.3 $ (1.4) (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. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The estimated fair value of financial instruments at March 31, 2021 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Total Quoted Prices in Significant Cash and cash equivalents $ 541.7 $ 541.7 $ 541.7 $ — Derivative financial instruments: Assets 3.2 3.2 — 3.2 Liabilities 3.7 3.7 — 3.7 Debt (a) 1,629.2 1,938.4 1,684.8 253.6 The estimated fair value of financial instruments at December 31, 2020 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Total Quoted Prices in Significant Cash and cash equivalents $ 645.9 $ 645.9 $ 645.9 $ — Derivative financial instruments: Assets 4.8 4.8 — 4.8 Liabilities 4.0 4.0 — 4.0 Debt (a) 1,629.1 1,847.7 1,594.2 253.5 (a) The total carrying amount for debt for both periods 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. The December 31, 2020 debt carrying value includes $46.8 million for the unamortized balance of the portion of the 2025 Convertible Notes recorded in stockholders’ equity due to the flexible settlement feature of the notes. Effective January 1, 2021, ATI early-adopted new accounting guidance that eliminated the equity component classification of the embedded conversion option of the 2025 Convertible Notes (see Note 1). 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, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | 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 of 1986, as amended (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. All defined benefit pension and retiree health care plans are closed to new entrants. For the three month periods ended March 31, 2021 and 2020, 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, 2021 2020 2021 2020 Service cost - benefits earned during the year $ 3.8 $ 3.2 $ 0.3 $ 0.5 Interest cost on benefits earned in prior years 17.1 21.5 2.1 2.7 Expected return on plan assets (34.1) (33.6) — — Amortization of prior service cost (credit) 0.2 0.2 (0.7) (0.9) Amortization of net actuarial loss 18.9 18.6 3.3 2.7 Total retirement benefit expense $ 5.9 $ 9.9 $ 5.0 $ 5.0 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe provision for income taxes for the first quarter ended March 31, 2021 was $5.5 million. In the second quarter 2020, the Company entered into a three-year cumulative loss within the United States, limiting the Company’s ability to utilize future projections when analyzing the need for a valuation allowance, therefore limiting sources of income as part of the analysis. ATI continues to maintain valuation allowances on its’ U.S. federal and state deferred tax assets, as well as for certain foreign jurisdictions. Throughout 2020, the Company calculated the provision for income taxes based upon actual year to date results due to the uncertainty of future projections as a result of the global pandemic. For 2021, the Company continues to be unable to make a reliable estimate of the annual effective tax rate, as significant changes in projected results for the Company’s U.S. operations could produce a significant variation in its annual effective tax rate. As a result, the Company recorded income tax for the quarter ended March 31, 2021 based upon an annual effective tax rate for its foreign, non-valuation allowance operations, combined with actual year-to-date tax expense related to its U.S. jurisdictions. The current year tax expense is mainly attributable to the Company’s foreign operations. The tax provision for the first quarter 2020 ended March 31, 2020 was $10.8 million, or 31.4%, of income before taxes, based on the actual year to date effective rate for this period. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company operates in two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). In the fourth quarter 2020, the Company changed its segment performance measure from segment operating profit to segment EBITDA, based on internal reporting changes. Prior period results are presented using the new performance measure. The measure of segment EBITDA 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, depreciation and amortization, corporate expenses, net interest expense, closed operations and other income (expense), charges for goodwill and asset impairments, restructuring and other charges, debt extinguishment charges and non-operating gains or losses. Management believes segment EBITDA, as defined, provides an appropriate measure of controllable operating results at the business segment level. Following is certain financial information with respect to the Company’s business segments for the periods indicated (in millions): Three months ended March 31, 2021 2020 Total sales: High Performance Materials & Components $ 265.2 $ 448.5 Advanced Alloys & Solutions 476.0 587.6 741.2 1,036.1 Intersegment sales: High Performance Materials & Components 24.3 28.2 Advanced Alloys & Solutions 24.4 52.4 48.7 80.6 Sales to external customers: High Performance Materials & Components 240.9 420.3 Advanced Alloys & Solutions 451.6 535.2 $ 692.5 $ 955.5 Three months ended March 31, 2021 2020 EBITDA: High Performance Materials & Components $ 24.6 $ 76.6 Advanced Alloys & Solutions 49.7 41.1 Total segment EBITDA 74.3 117.7 LIFO and net realizable value reserves — — Corporate expenses (12.2) (12.3) Closed operations and other income (expense) 0.5 (6.3) Total ATI Adjusted EBITDA 62.6 99.1 Depreciation & amortization (a) (36.1) (37.3) Interest expense, net (23.4) (21.9) Restructuring and other charges — (8.0) Gain on asset sales — 2.5 Income before income taxes $ 3.1 $ 34.4 (a) The following is depreciation & amortization by each business segment: Three months ended March 31, 2021 2020 High Performance Materials & Components $ 19.6 $ 19.5 Advanced Alloys & Solutions 15.5 17.0 Other 1.0 0.8 36.1 37.3 Closed operations and other income in the first quarter 2021 compared to expense in the first quarter of 2020 reflects lower costs at closed facilities, including retirement benefit expense, insurance and legal costs, and real estate and other facility costs, and changes in foreign currency remeasurement impacts primarily related to ATI’s European Treasury operation. 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. The $2.5 million gain on asset sales for the first quarter 2020 consists of a gain on the sale of certain oil and gas rights (see Note 6). The Company’s collective bargaining agreement (CBA) with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied & Industrial Service Workers International Union, AFL-CIO, CLC (USW) involving approximately 1,100 active full-time represented employees located primarily within the AA&S segment operations, as well as a number of inactive employees, expired on February 28, 2021. USW-represented employees continued to work under the terms of the expired CBA until March 30, 2021 when they engaged in a strike, which remains ongoing. ATI continues to negotiate in good faith with the USW in an attempt to reach a new labor agreement. |
Per Share Information
Per Share Information | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Per Share Information | Per Share Information The following table sets forth the computation of basic and diluted income (loss) per common share: Three months ended (In millions, except per share amounts) March 31, 2021 2020 Numerator: Numerator for basic income (loss) per common share – Net income (loss) attributable to ATI $ (7.9) $ 21.1 Effect of dilutive securities: 4.75% Convertible Senior Notes due 2022 — 2.3 3.5% Convertible Senior Notes due 2025 — — Numerator for diluted income (loss) per common share – Net income (loss) attributable to ATI after assumed conversions $ (7.9) $ 23.4 Denominator: Denominator for basic net income (loss) per common share – weighted average shares 126.8 126.1 Effect of dilutive securities: Share-based compensation — 0.4 4.75% Convertible Senior Notes due 2022 — 19.9 3.5% Convertible Senior Notes due 2025 — — Denominator for diluted net income (loss) per common share – adjusted weighted average shares and assumed conversions 126.8 146.4 Basic net income (loss) attributable to ATI per common share $ (0.06) $ 0.17 Diluted net income (loss) attributable to ATI per common share $ (0.06) $ 0.16 Common stock that would be issuable upon the assumed conversion of the 2022 Convertible Notes and the 2025 Convertible Notes 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 25.7 million anti-dilutive shares for the three months ended March 31, 2021. There were no anti-dilutive shares for the three months ended March 31, 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in AOCI by component, net of tax, for the three month period ended March 31, 2021 were as follows (in millions): Post- Currency Derivatives Deferred Tax Asset Valuation Allowance Total Attributable to ATI: Balance, December 31, 2020 $ (1,119.9) $ (55.5) $ 2.1 $ (50.3) $ (1,223.6) OCI before reclassifications — (5.4) 0.3 — (5.1) Amounts reclassified from AOCI (a) 16.5 (b) — (c) (1.3) (d) 4.9 20.1 Net current-period OCI 16.5 (5.4) (1.0) 4.9 15.0 Balance, March 31, 2021 $ (1,103.4) $ (60.9) $ 1.1 $ (45.4) $ (1,208.6) Attributable to noncontrolling interests: Balance, December 31, 2020 $ — $ 21.2 $ — $ — $ 21.2 OCI before reclassifications — 0.6 — — 0.6 Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — 0.6 — — 0.6 Balance, March 31, 2021 $ — $ 21.8 $ — $ — $ 21.8 (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). (d) Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates. The changes in AOCI by component, net of tax, for the three month period ended March 31, 2020 were as follows (in millions): Post- Currency 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). 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, 2021 and 2020 were as follows: Amounts reclassified to AOCI Details about AOCI Components (In millions) Three months ended March 31, 2021 Three months ended March 31, 2020 Affected line item in the Postretirement benefit plans Prior service credit $ 0.5 $ 0.7 (a) Actuarial losses (22.2) (21.3) (a) (21.7) (20.6) (c) Total before tax (5.2) (4.9) Tax benefit (d) $ (16.5) $ (15.7) Net of tax Derivatives Nickel and other raw material contracts $ 2.0 $ (0.3) (b) Natural gas contracts — (1.3) (b) Foreign exchange contracts — — (b) Interest rate swap (0.3) (0.2) (b) 1.7 (1.8) (c) Total before tax 0.4 (0.4) Tax expense (benefit) (d) $ 1.3 $ (1.4) 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 operations. (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, 2021 | |
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, 2021, the Company’s reserves for environmental remediation obligations totaled approximately $13 million, of which $4 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; $8 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 $15 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. No trial date has been set by the court given the restrictions of the pandemic. 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, 2021 | |
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. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2020 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, 2020 financial information has been derived from the Company’s audited consolidated financial statements. |
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted In August 2020, the FASB issued new accounting guidance related to accounting for convertible instruments. Under this new guidance, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives, or that do not result in substantial premiums accounted for as paid-in capital. As such, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as derivatives. By removing those separation models, the reported interest rate of convertible debt instruments typically will be closer to the coupon interest rate. The new guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation, requiring the if-converted method, and requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. This new guidance is effective for the Company in fiscal year 2022, with early adoption permitted. The Company adopted this new accounting guidance related to accounting for convertible instruments effective January 1, 2021 using the modified transition approach with the cumulative effect recognized as an adjustment to the opening balance of retained earnings. This new guidance is applicable to the Company’s 3.5% Convertible Senior Notes due 2025 (the 2025 Convertible Notes) that were issued in June 2020, for which the embedded conversion option was required to be separately accounted for as a component of stockholders’ equity. Upon adoption on January 1, 2021, long-term debt increased by $45.4 million and stockholders’ equity decreased by the same amount, representing the net impact of two adjustments: (1) the $49.8 million value of the embedded conversion, which is net of allocated offering costs, previously classified in additional paid-in capital in stockholders’ equity, and (2) a $4.4 million increase to retained earnings for the cumulative effect of adoption primarily related to the non-cash interest expense recorded in fiscal year 2020 for the amortization of the portion of the 2025 Convertible Notes allocated to stockholders’ equity. Prospectively, the reported interest expense for the 2025 Convertible Notes will no longer include the non-cash interest expense of the equity component as required under prior accounting standards and will be closer to the 3.5% cash coupon rate. There was no impact to the Company’s earnings per share calculation as it previously applied the if-converted method to the 2025 Convertible Notes given ATI’s flexibility to settle conversions of the 2025 Convertible Notes in cash, shares of ATI’s common stock or a combination thereof, at ATI’s election. |
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 net realizable value (NRV) inventory valuation reserves to adjust carrying value of LIFO inventory to current replacement cost. |
Derivatives | 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, 2021, 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 10% of a single year’s estimated nickel raw material purchase requirements. At March 31, 2021, the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges. At March 31, 2021, the Company hedged approximately 75% of the Company’s forecasted domestic requirements for natural gas for the remainder of 2021 and approximately 25% for 2022. 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, 2021, the Company had no significant outstanding foreign currency forward contracts. 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 a portion 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, was 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 of 1986, as amended (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. All defined benefit pension and retiree health care plans are closed to new entrants. |
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. |
Inventory (Policies)
Inventory (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
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 net realizable value (NRV) inventory valuation reserves to adjust carrying value of LIFO inventory to current replacement cost. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 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, 2021, 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 10% of a single year’s estimated nickel raw material purchase requirements. At March 31, 2021, the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges. At March 31, 2021, the Company hedged approximately 75% of the Company’s forecasted domestic requirements for natural gas for the remainder of 2021 and approximately 25% for 2022. 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, 2021, the Company had no significant outstanding foreign currency forward contracts. 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 a portion 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, was 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. |
Commitment and Contingencies (P
Commitment and Contingencies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
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, 2021 | |
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, 2021 and 2020 were as follows: (in millions) First quarter ended March 31, 2021 March 31, 2020 HPMC AA&S Total HPMC AA&S Total Diversified Global Markets: Aerospace & Defense $ 179.8 $ 74.4 $ 254.2 $ 358.8 $ 133.7 $ 492.5 Energy* 30.5 118.6 149.1 24.1 146.5 170.6 Automotive 2.0 89.5 91.5 2.0 74.5 76.5 Electronics 0.3 55.3 55.6 0.3 32.9 33.2 Construction/Mining 5.1 37.4 42.5 5.3 38.3 43.6 Food Equipment & Appliances — 35.4 35.4 — 50.4 50.4 Medical 11.2 17.8 29.0 17.0 21.6 38.6 Other 12.0 23.2 35.2 12.8 37.3 50.1 Total $ 240.9 $ 451.6 $ 692.5 $ 420.3 $ 535.2 $ 955.5 *Includes the oil & gas, downstream processing, and specialty energy markets. (in millions) First quarter ended March 31, 2021 March 31, 2020 HPMC AA&S Total HPMC AA&S Total Primary Geographical Market: United States $ 128.3 $ 271.6 $ 399.9 $ 227.3 $ 378.8 $ 606.1 Asia 20.1 122.6 142.7 25.1 94.2 119.3 Europe 79.1 34.0 113.1 133.5 37.6 171.1 Canada 8.2 9.1 17.3 11.6 10.4 22.0 South America, Middle East and other 5.2 14.3 19.5 22.8 14.2 37.0 Total $ 240.9 $ 451.6 $ 692.5 $ 420.3 $ 535.2 $ 955.5 Comparative information of the Company’s major high-value and standard products based on their percentages of sales is included in the following table. In conjunction with the Company’s announced ongoing exit of standard stainless products, ATI reclassified certain items as High-Value Products within AA&S segment results. Prior period information reflects these reclassifications. Hot-Rolling and Processing Facility conversion service sales in the AA&S segment are excluded from this presentation. First quarter ended March 31, 2021 March 31, 2020 HPMC AA&S Total HPMC AA&S Total Diversified Products and Services: High-Value Products Nickel-based alloys and specialty alloys 36 % 28 % 31 % 40 % 31 % 35 % Precision rolled strip products — % 31 % 20 % — % 22 % 12 % Precision forgings, castings and components 43 % — % 15 % 35 % — % 16 % Titanium and titanium-based alloys 21 % 7 % 12 % 25 % 11 % 18 % Zirconium and related alloys — % 15 % 10 % — % 13 % 7 % Total High-Value Products 100 % 81 % 88 % 100 % 77 % 88 % Standard Products Standard stainless products — % 19 % 12 % — % 23 % 12 % 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 $ 4.3 $ 4.6 Expense to increase the reserve 0.2 0.1 Write-off of uncollectible accounts (0.3) (0.3) Balance as of period end $ 4.2 $ 4.4 |
Schedule of Contract Assets and Liabilities | (in millions) Contract Assets Short-term March 31, March 31, Balance as of beginning of fiscal year $ 38.9 $ 38.5 Recognized in current year 25.7 25.1 Reclassified to accounts receivable (19.1) (20.2) Impairment — — Reclassification to/from contract liability (3.5) — Divestiture — 0.1 Balance as of period end $ 42.0 $ 43.5 Long-term March 31, March 31, Balance as of beginning of fiscal year $ — $ 0.1 Recognized in current year — — Reclassified to accounts receivable — — Impairment — — Reclassification to/from short-term — (0.1) Balance as of period end $ — $ — (in millions) Contract Liabilities Short-term March 31, March 31, Balance as of beginning of fiscal year $ 111.8 $ 78.7 Recognized in current year 57.1 71.7 Amounts in beginning balance reclassified to revenue (43.0) (22.1) Current year amounts reclassified to revenue (4.0) (17.1) Other — (0.3) Reclassification to/from long-term and contract asset (3.2) 3.4 Balance as of period end $ 118.7 $ 114.3 Long-term March 31, March 31, Balance as of beginning of fiscal year $ 32.0 $ 25.9 Recognized in current year 24.3 7.4 Amounts in beginning balance reclassified to revenue (0.3) (0.2) Current year amounts reclassified to revenue — — Other — — Reclassification to/from short-term (0.3) (3.4) Balance as of period end $ 55.7 $ 29.7 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories at March 31, 2021 and December 31, 2020 were as follows (in millions): March 31, December 31, Raw materials and supplies $ 224.1 $ 207.6 Work-in-process 736.0 690.7 Finished goods 164.0 181.6 Total inventories at current cost 1,124.1 1,079.9 Adjustment from current cost to LIFO cost basis 37.3 44.1 Inventory valuation reserves (113.6) (126.9) Total inventories, net $ 1,047.8 $ 997.1 |
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, 2021 2020 LIFO benefit (charge) $ (6.8) $ 12.0 NRV benefit (charge) 6.8 (12.0) Net cost of sales impact $ — $ — |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property Plant And Equipment | Property, plant and equipment at March 31, 2021 and December 31, 2020 was as follows (in millions): March 31, December 31, Land $ 34.8 $ 34.8 Buildings 569.5 564.7 Equipment and leasehold improvements 2,768.4 2,736.9 3,372.7 3,336.4 Accumulated depreciation and amortization (1,894.0) (1,867.2) Total property, plant and equipment, net $ 1,478.7 $ 1,469.2 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information - (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense, Net | Other income (expense), net for the three months ended March 31, 2021 and 2020 was as follows: (in millions) Three months ended March 31, 2021 2020 Rent and royalty income $ 0.3 $ 0.3 Gains from disposal of property, plant and equipment, net 1.2 2.5 Net equity loss on joint ventures (See Note 5) — (3.7) Total other income (expense), net $ 1.5 $ (0.9) |
Roll Forward of Restructuring Reserve Activity | Restructuring reserves activity is as follows: Severance and Employee Benefit Costs Balance at December 31, 2020 $ 43.4 Additions — Payments (6.5) Balance at March 31, 2021 $ 36.9 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | Debt at March 31, 2021 and December 31, 2020 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 3.5% Convertible Senior Notes due 2025 291.4 291.4 Allegheny Technologies 4.75% Convertible Senior Notes due 2022 84.2 84.2 Allegheny Ludlum 6.95% Debentures due 2025 (b) 150.0 150.0 Term Loan due 2024 200.0 200.0 U.S. revolving credit facility — — Foreign credit facilities 2.2 5.5 Finance leases and other 51.4 48.0 Debt issuance costs (15.1) (14.5) Equity component of convertible debt — (46.8) Total debt 1,614.1 1,567.8 Short-term debt and current portion of long-term debt 15.7 17.8 Total long-term debt $ 1,598.4 $ 1,550.0 (a) Bearing interest at 7.875% effective February 15, 2016. (b) The payment obligations of these debentures issued by Allegheny Ludlum, LLC are fully and unconditionally guaranteed by ATI. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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: Foreign exchange contracts Prepaid expenses and other current assets $ 0.1 $ — Nickel and other raw material contracts Prepaid expenses and other current assets 2.1 3.7 Natural gas contracts Prepaid expenses and other current assets 0.5 0.2 Nickel and other raw material contracts Other assets 0.4 0.7 Natural gas contracts Other assets 0.1 0.2 Total derivatives designated as hedging instruments $ 3.2 $ 4.8 Liability derivatives Balance sheet location Derivatives designated as hedging instruments: Interest rate swap Other current liabilities $ 1.0 $ 1.0 Natural gas contracts Other current liabilities 0.1 0.3 Nickel and other raw material contracts Other current liabilities 0.9 0.1 Interest rate swap Other long-term liabilities 1.7 2.5 Natural gas contracts Other long-term liabilities — 0.1 Total derivatives designated as hedging instruments $ 3.7 $ 4.0 |
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, 2021 and 2020 was as follows (in millions): Amount of Gain (Loss) Amount of Gain (Loss) Three months ended March 31, Three months ended March 31, Derivatives in Cash Flow Hedging Relationships 2021 2020 2021 2020 Nickel and other raw material contracts $ (0.6) $ (6.2) $ 1.5 $ (0.2) Natural gas contracts 0.4 (1.2) — (1.0) Foreign exchange contracts 0.1 (0.1) — — Interest rate swap 0.4 (1.9) (0.2) (0.2) Total $ 0.3 $ (9.4) $ 1.3 $ (1.4) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value By Balance Sheet Grouping | The estimated fair value of financial instruments at March 31, 2021 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Total Quoted Prices in Significant Cash and cash equivalents $ 541.7 $ 541.7 $ 541.7 $ — Derivative financial instruments: Assets 3.2 3.2 — 3.2 Liabilities 3.7 3.7 — 3.7 Debt (a) 1,629.2 1,938.4 1,684.8 253.6 The estimated fair value of financial instruments at December 31, 2020 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Total Quoted Prices in Significant Cash and cash equivalents $ 645.9 $ 645.9 $ 645.9 $ — Derivative financial instruments: Assets 4.8 4.8 — 4.8 Liabilities 4.0 4.0 — 4.0 Debt (a) 1,629.1 1,847.7 1,594.2 253.5 (a) The total carrying amount for debt for both periods 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. The December 31, 2020 debt carrying value includes $46.8 million for the unamortized balance of the portion of the 2025 Convertible Notes recorded in stockholders’ equity due to the flexible settlement feature of the notes. Effective January 1, 2021, ATI early-adopted new accounting guidance that eliminated the equity component classification of the embedded conversion option of the 2025 Convertible Notes (see Note 1). |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule Of Defined Benefit Plans Disclosures [Table Text Block] | For the three month periods ended March 31, 2021 and 2020, 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, 2021 2020 2021 2020 Service cost - benefits earned during the year $ 3.8 $ 3.2 $ 0.3 $ 0.5 Interest cost on benefits earned in prior years 17.1 21.5 2.1 2.7 Expected return on plan assets (34.1) (33.6) — — Amortization of prior service cost (credit) 0.2 0.2 (0.7) (0.9) Amortization of net actuarial loss 18.9 18.6 3.3 2.7 Total retirement benefit expense $ 5.9 $ 9.9 $ 5.0 $ 5.0 |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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, 2021 2020 Total sales: High Performance Materials & Components $ 265.2 $ 448.5 Advanced Alloys & Solutions 476.0 587.6 741.2 1,036.1 Intersegment sales: High Performance Materials & Components 24.3 28.2 Advanced Alloys & Solutions 24.4 52.4 48.7 80.6 Sales to external customers: High Performance Materials & Components 240.9 420.3 Advanced Alloys & Solutions 451.6 535.2 $ 692.5 $ 955.5 Three months ended March 31, 2021 2020 EBITDA: High Performance Materials & Components $ 24.6 $ 76.6 Advanced Alloys & Solutions 49.7 41.1 Total segment EBITDA 74.3 117.7 LIFO and net realizable value reserves — — Corporate expenses (12.2) (12.3) Closed operations and other income (expense) 0.5 (6.3) Total ATI Adjusted EBITDA 62.6 99.1 Depreciation & amortization (a) (36.1) (37.3) Interest expense, net (23.4) (21.9) Restructuring and other charges — (8.0) Gain on asset sales — 2.5 Income before income taxes $ 3.1 $ 34.4 (a) The following is depreciation & amortization by each business segment: Three months ended March 31, 2021 2020 High Performance Materials & Components $ 19.6 $ 19.5 Advanced Alloys & Solutions 15.5 17.0 Other 1.0 0.8 36.1 37.3 |
Per Share Information (Tables)
Per Share Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 (loss) per common share: Three months ended (In millions, except per share amounts) March 31, 2021 2020 Numerator: Numerator for basic income (loss) per common share – Net income (loss) attributable to ATI $ (7.9) $ 21.1 Effect of dilutive securities: 4.75% Convertible Senior Notes due 2022 — 2.3 3.5% Convertible Senior Notes due 2025 — — Numerator for diluted income (loss) per common share – Net income (loss) attributable to ATI after assumed conversions $ (7.9) $ 23.4 Denominator: Denominator for basic net income (loss) per common share – weighted average shares 126.8 126.1 Effect of dilutive securities: Share-based compensation — 0.4 4.75% Convertible Senior Notes due 2022 — 19.9 3.5% Convertible Senior Notes due 2025 — — Denominator for diluted net income (loss) per common share – adjusted weighted average shares and assumed conversions 126.8 146.4 Basic net income (loss) attributable to ATI per common share $ (0.06) $ 0.17 Diluted net income (loss) attributable to ATI per common share $ (0.06) $ 0.16 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income Loss | The changes in AOCI by component, net of tax, for the three month period ended March 31, 2021 were as follows (in millions): Post- Currency Derivatives Deferred Tax Asset Valuation Allowance Total Attributable to ATI: Balance, December 31, 2020 $ (1,119.9) $ (55.5) $ 2.1 $ (50.3) $ (1,223.6) OCI before reclassifications — (5.4) 0.3 — (5.1) Amounts reclassified from AOCI (a) 16.5 (b) — (c) (1.3) (d) 4.9 20.1 Net current-period OCI 16.5 (5.4) (1.0) 4.9 15.0 Balance, March 31, 2021 $ (1,103.4) $ (60.9) $ 1.1 $ (45.4) $ (1,208.6) Attributable to noncontrolling interests: Balance, December 31, 2020 $ — $ 21.2 $ — $ — $ 21.2 OCI before reclassifications — 0.6 — — 0.6 Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — 0.6 — — 0.6 Balance, March 31, 2021 $ — $ 21.8 $ — $ — $ 21.8 (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). (d) Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates. The changes in AOCI by component, net of tax, for the three month period ended March 31, 2020 were as follows (in millions): Post- Currency 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). |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI for the three month periods ended March 31, 2021 and 2020 were as follows: Amounts reclassified to AOCI Details about AOCI Components (In millions) Three months ended March 31, 2021 Three months ended March 31, 2020 Affected line item in the Postretirement benefit plans Prior service credit $ 0.5 $ 0.7 (a) Actuarial losses (22.2) (21.3) (a) (21.7) (20.6) (c) Total before tax (5.2) (4.9) Tax benefit (d) $ (16.5) $ (15.7) Net of tax Derivatives Nickel and other raw material contracts $ 2.0 $ (0.3) (b) Natural gas contracts — (1.3) (b) Foreign exchange contracts — — (b) Interest rate swap (0.3) (0.2) (b) 1.7 (1.8) (c) Total before tax 0.4 (0.4) Tax expense (benefit) (d) $ 1.3 $ (1.4) 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 operations. (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, 2021USD ($)segment | Mar. 31, 2020USD ($) | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Revenue recognition [Line Items] | |||||
Number of business segments | segment | 2 | ||||
Impact of new accounting principle on prior period operating income | $ 31.8 | $ 68.4 | |||
Unfavorable impact on pre-tax operating results | (3.1) | (34.4) | |||
Equity adjustment for adoption | 609.3 | 2,192.6 | $ 641.4 | $ 2,193.2 | |
Additional Paid-in Capital [Member] | |||||
Revenue recognition [Line Items] | |||||
Equity adjustment for adoption | 1,580.5 | 1,592.1 | 1,625.5 | 1,618 | |
[RetainedEarningsMember] | |||||
Revenue recognition [Line Items] | |||||
Equity adjustment for adoption | $ 103 | $ 1,700.4 | $ 106.5 | $ 1,679.3 | |
Allegheny Technologies 3.5% Convertible Senior Notes due 2025 | Convertible Debt | |||||
Revenue recognition [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | |||
Accounting Standards Update 2020-06 | Additional Paid-in Capital [Member] | |||||
Revenue recognition [Line Items] | |||||
Equity adjustment for adoption | $ (49.8) | ||||
Accounting Standards Update 2020-06 | [RetainedEarningsMember] | |||||
Revenue recognition [Line Items] | |||||
Equity adjustment for adoption | 4.4 | ||||
Accounting Standards Update 2020-06 | Allegheny Technologies 3.5% Convertible Senior Notes due 2025 | Convertible Debt | |||||
Revenue recognition [Line Items] | |||||
Equity adjustment for adoption | $ (45.4) | ||||
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, 2021USD ($)segment | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Revenue recognition [Line Items] | ||||
Inventories, net | $ 1,047,800,000 | $ 997,100,000 | ||
Adjustment from current cost to LIFO cost basis | (37,300,000) | (44,100,000) | ||
Sales | 692,500,000 | $ 955,500,000 | ||
Cost of sales | 606,700,000 | 820,700,000 | ||
Short-term contract assets | 42,000,000 | 43,500,000 | 38,900,000 | $ 38,500,000 |
Long-term contract assets | 0 | 0 | 0 | 100,000 |
Other current liabilities | 230,000,000 | 233,100,000 | ||
Other long-term liabilities | 207,100,000 | 189,900,000 | ||
Short-term contract liabilities | 118,700,000 | 114,300,000 | 111,800,000 | 78,700,000 |
Long-term contract liabilities | $ 55,700,000 | 29,700,000 | 32,000,000 | $ 25,900,000 |
Number of business segments | segment | 2 | |||
Revenue, Performance Obligation [Abstract] | ||||
Confirmed order backlog | $ 1,500,000,000 | 2,100,000,000 | ||
Confirmed orders with current performance obligations | 0.75 | |||
Accounts receivable with customers | 428,100,000 | 350,100,000 | ||
Contract costs for obtaining and fulfilling contracts | 5,300,000 | $ 5,400,000 | ||
Amortization of contract costs | $ 200,000 | $ 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, 2021 | Mar. 31, 2020 | ||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 692.5 | $ 955.5 | |
Percent of revenue | 100.00% | 100.00% | |
Total High-Value Products | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 88.00% | 88.00% | |
Nickel-based alloys and specialty alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 31.00% | 35.00% | |
Precision rolled strip products | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 20.00% | 12.00% | |
Precision forgings, castings and components | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 15.00% | 16.00% | |
Titanium and titanium-based alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 12.00% | 18.00% | |
Zirconium and related alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 10.00% | 7.00% | |
Standard stainless products | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 12.00% | 12.00% | |
United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 399.9 | $ 606.1 | |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 142.7 | 119.3 | |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 113.1 | 171.1 | |
Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 17.3 | 22 | |
South America, Middle East and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 19.5 | 37 | |
Aerospace & Defense | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 254.2 | 492.5 | |
Energy | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | [1] | 149.1 | 170.6 |
Automotive | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 91.5 | 76.5 | |
Electronics | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 55.6 | 33.2 | |
Construction/Mining | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 42.5 | 43.6 | |
Food Equipment & Appliances | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 35.4 | 50.4 | |
Medical | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 29 | 38.6 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 35.2 | 50.1 | |
Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 741.2 | 1,036.1 | |
Operating Segments | High Performance Materials & Components | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 265.2 | $ 448.5 | |
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 | 36.00% | 40.00% | |
Operating Segments | High Performance Materials & Components | Precision rolled strip products | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 0.00% | 0.00% | |
Operating Segments | High Performance Materials & Components | Precision forgings, castings and components | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 43.00% | 35.00% | |
Operating Segments | High Performance Materials & Components | Titanium and titanium-based alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 21.00% | 25.00% | |
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 | |||
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 | $ 128.3 | $ 227.3 | |
Operating Segments | High Performance Materials & Components | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 20.1 | 25.1 | |
Operating Segments | High Performance Materials & Components | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 79.1 | 133.5 | |
Operating Segments | High Performance Materials & Components | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 8.2 | 11.6 | |
Operating Segments | High Performance Materials & Components | South America, Middle East and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5.2 | 22.8 | |
Operating Segments | High Performance Materials & Components | Aerospace & Defense | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 179.8 | 358.8 | |
Operating Segments | High Performance Materials & Components | Energy | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | [1] | 30.5 | 24.1 |
Operating Segments | High Performance Materials & Components | Automotive | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 2 | 2 | |
Operating Segments | High Performance Materials & Components | Electronics | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0.3 | 0.3 | |
Operating Segments | High Performance Materials & Components | Construction/Mining | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 5.1 | 5.3 | |
Operating Segments | High Performance Materials & Components | Food Equipment & Appliances | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | 0 | |
Operating Segments | High Performance Materials & Components | Medical | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 11.2 | 17 | |
Operating Segments | High Performance Materials & Components | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 12 | 12.8 | |
Operating Segments | Advanced Alloys & Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 476 | $ 587.6 | |
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 | 81.00% | 77.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | Nickel-based alloys and specialty alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 28.00% | 31.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | Precision rolled strip products | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 31.00% | 22.00% | |
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 | 7.00% | 11.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | Zirconium and related alloys | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 15.00% | 13.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | Standard stainless products | |||
Disaggregation of Revenue [Line Items] | |||
Percent of revenue | 19.00% | 23.00% | |
Operating Segments | Advanced Alloys & Solutions [Member] | United States | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 271.6 | $ 378.8 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 122.6 | 94.2 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 34 | 37.6 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Canada | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 9.1 | 10.4 | |
Operating Segments | Advanced Alloys & Solutions [Member] | South America, Middle East and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 14.3 | 14.2 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Aerospace & Defense | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 74.4 | 133.7 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Energy | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | [1] | 118.6 | 146.5 |
Operating Segments | Advanced Alloys & Solutions [Member] | Automotive | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 89.5 | 74.5 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Electronics | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 55.3 | 32.9 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Construction/Mining | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 37.4 | 38.3 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Food Equipment & Appliances | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 35.4 | 50.4 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Medical | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 17.8 | 21.6 | |
Operating Segments | Advanced Alloys & Solutions [Member] | Other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 23.2 | 37.3 | |
External Customers | Operating Segments | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 692.5 | 955.5 | |
External Customers | Operating Segments | High Performance Materials & Components | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 240.9 | 420.3 | |
External Customers | Operating Segments | Advanced Alloys & Solutions [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 451.6 | $ 535.2 | |
[1] | Includes the oil & gas, downstream processing, and specialty 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, 2021 | Mar. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance as of beginning of fiscal year | $ 4.3 | $ 4.6 |
Expense to increase the reserve | 0.2 | 0.1 |
Write-off of uncollectible accounts | (0.3) | (0.3) |
Balance as of period end | $ 4.2 | $ 4.4 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Contract Assets, Current [Roll Forward] | ||
Balance as of beginning of fiscal year | $ 38.9 | $ 38.5 |
Recognized in current year | 25.7 | 25.1 |
Reclassified to accounts receivable | (19.1) | (20.2) |
Impairment | 0 | 0 |
Reclassification to/from contract liability | (3.5) | 0 |
Divestiture | 0 | 0.1 |
Balance as of period end | 42 | 43.5 |
Contract Assets, Noncurrent [Roll Forward] | ||
Balance as of beginning of fiscal year | 0 | 0.1 |
Recognized in current year | 0 | 0 |
Reclassified to accounts receivable | 0 | 0 |
Impairment | 0 | 0 |
Reclassification to/from short-term | 0 | (0.1) |
Balance as of period end | 0 | 0 |
Contract Liabilities, Current [Roll Forward] | ||
Balance as of beginning of fiscal year | 111.8 | 78.7 |
Recognized in current year | 57.1 | 71.7 |
Amounts in beginning balance reclassified to revenue | (43) | (22.1) |
Current year amounts reclassified to revenue | (4) | (17.1) |
Other | 0 | (0.3) |
Reclassification to/from long-term and contract asset | (3.2) | 3.4 |
Balance as of period end | 118.7 | 114.3 |
Contract Liabilities, Noncurrent [Roll Forward] | ||
Balance as of beginning of fiscal year | 32 | 25.9 |
Recognized in current year | 24.3 | 7.4 |
Amounts in beginning balance reclassified to revenue | (0.3) | (0.2) |
Current year amounts reclassified to revenue | 0 | 0 |
Other | 0 | 0 |
Reclassification to/from short-term | (0.3) | (3.4) |
Balance as of period end | $ 55.7 | $ 29.7 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Inventory [Line Items] | |||
Raw materials and supplies | $ 224.1 | $ 207.6 | |
Work-in-process | 736 | 690.7 | |
Finished goods | 164 | 181.6 | |
Total inventories at current cost | 1,124.1 | 1,079.9 | |
Adjustment from current cost to LIFO cost basis | 37.3 | 44.1 | |
Inventory valuation reserves | (113.6) | (126.9) | |
Total inventories, net | 1,047.8 | 997.1 | |
LIFO benefit (charge) | (6.8) | $ 12 | |
NRV benefit (charge) | 6.8 | (12) | |
Net cost of sales impact | 0 | $ 0 | |
Net Realizable Value Reserve [Member] | |||
Inventory [Line Items] | |||
Inventory valuation reserves | $ (37.3) | $ (44.1) |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Land | $ 34.8 | $ 34.8 |
Buildings | 569.5 | 564.7 |
Equipment and leasehold improvements | 2,768.4 | 2,736.9 |
Property Plant And Equipment, gross | 3,372.7 | 3,336.4 |
Accumulated depreciation and amortization | (1,894) | (1,867.2) |
Total property, plant and equipment, net | 1,478.7 | $ 1,469.2 |
Construction in progress | 252.6 | |
Capital Expenditures Incurred but Not yet Paid | $ 9.2 |
Joint Ventures (Details)
Joint Ventures (Details) - USD ($) $ in Millions | 3 Months Ended | 10 Months Ended | 39 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2018 | Jun. 30, 2021 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||||
Cash and cash equivalents | $ 541.7 | $ 645.9 | |||
Income (loss) from equity investments | 0 | $ (3.7) | |||
Next Gen Alloys LLC | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cash and cash equivalents | $ 2.5 | ||||
Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment ownership percentage | 50.00% | ||||
Sales to noncontrolling interests | $ 12 | ||||
Allegheny & Tsingshan Stainless | Forecast | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Sales to noncontrolling interests | $ 17.5 | ||||
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 | 34.1 | ||||
Advanced Alloys & Solutions [Member] | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity investments | (0.5) | (3.9) | |||
Due from Affiliates | 13.8 | 14 | |||
Advanced Alloys & Solutions [Member] | Uniti | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity investments | 0.5 | $ 0.2 | |||
Prepaid expenses and other current assets | Advanced Alloys & Solutions [Member] | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Due from Affiliates | 0.7 | 0.5 | |||
Other Noncurrent Assets [Member] | Advanced Alloys & Solutions [Member] | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Due from Affiliates | $ 13.1 | $ 13.5 | |||
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, 2021 | Mar. 31, 2020 | |
Other Income and Expenses [Abstract] | ||
Rent and royalty income | $ 0.3 | $ 0.3 |
Gains from disposal of property, plant and equipment, net | 1.2 | 2.5 |
Net equity (loss) gain on joint ventures | 0 | (3.7) |
Other income (expense), net | $ 1.5 | (0.9) |
Gain on the sale of oil and gas rights | $ 2.5 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | $ 36.9 | $ 43.4 |
Other Current Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | 28.4 | |
Other Noncurrent Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring reserve | $ 8.5 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Severance and Employee Benefit Costs Rollforward (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Restructuring Reserve [Roll Forward] | ||
Balance at December 31, 2020 | $ 43.4 | |
Additions | 0 | $ 8 |
Payments | (6.5) | |
Balance at March 31, 2021 | $ 36.9 |
Debt Schedule of Debt (Details)
Debt Schedule of Debt (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2021 | Dec. 31, 2020 | Jul. 02, 2020 | Feb. 15, 2016 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Net | $ (15,100,000) | $ (14,500,000) | |||
Total Debt | 1,614,100,000 | 1,567,800,000 | |||
Short-term debt and current portion of long-term debt | 15,700,000 | 17,800,000 | |||
Long-term debt | 1,598,400,000 | 1,550,000,000 | |||
Allegheny Technologies 5.875% Notes due 2023 (a) | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | $ 500,000,000 | $ 500,000,000 | |||
Debt Instrument, Issuer | Allegheny Technologies | Allegheny Technologies | |||
Interest rate | 7.875% | 7.875% | 7.875% | 5.875% | |
Debt Instrument, Maturity Date | Aug. 15, 2023 | Aug. 15, 2023 | |||
Allegheny Technologies 5.875% Notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | $ 350,000,000 | $ 350,000,000 | |||
Debt Instrument, Issuer | Allegheny Technologies | Allegheny Technologies | |||
Interest rate | 5.875% | 5.875% | |||
Debt Instrument, Maturity Date | Dec. 1, 2027 | Dec. 1, 2027 | |||
Allegheny Technologies 3.5% Convertible Senior Notes due 2025 | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | $ 291,400,000 | $ 291,400,000 | |||
Debt Issuance Costs, Net | (7,800,000) | ||||
Equity component of convertible debt | $ 0 | $ (46,800,000) | $ (51,400,000) | ||
Debt Instrument, Issuer | Allegheny Technologies | Allegheny Technologies | |||
Interest rate | 3.50% | 3.50% | |||
Debt Instrument, Maturity Date | Jun. 15, 2025 | Jun. 15, 2025 | |||
Allegheny Technologies 4.75% Convertible Senior Notes due 2022 | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | $ 84,200,000 | $ 84,200,000 | |||
Debt Instrument, Issuer | Allegheny Technologies | Allegheny Technologies | |||
Interest rate | 4.75% | 4.75% | |||
Debt Instrument, Maturity Date | Jul. 1, 2022 | Jul. 1, 2022 | |||
Allegheny Technologies 4.75% Convertible Senior Notes due 2022 | Convertible Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Issuance Costs, Net | $ (600,000) | ||||
Allegheny Ludlum 6.95% Debentures due 2025 (b) | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | $ 150,000,000 | $ 150,000,000 | |||
Debt Instrument, Issuer | Allegheny Ludlum | Allegheny Ludlum | |||
Interest rate | 6.95% | 6.95% | |||
Debt Instrument, Maturity Date | Dec. 15, 2025 | Dec. 15, 2025 | |||
2024 Term Loan | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | $ 200,000,000 | $ 200,000,000 | |||
Debt Instrument, Issuer | Allegheny Technologies | Allegheny Technologies | |||
Interest rate | 4.21% | 4.21% | |||
Debt Instrument, Maturity Date | Sep. 30, 2024 | Sep. 30, 2024 | |||
Domestic Bank Group $500 million asset-based credit facility | |||||
Debt Instrument [Line Items] | |||||
Short-term Debt | $ 0 | $ 0 | |||
Foreign credit facilities | |||||
Debt Instrument [Line Items] | |||||
Short-term Debt | 2,200,000 | 5,500,000 | |||
Finance leases and other | |||||
Debt Instrument [Line Items] | |||||
Debt, Gross | $ 51,400,000 | $ 48,000,000 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility Narrative (Details) - USD ($) | 3 Months Ended | |||||
Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2024 | Dec. 31, 2020 | Feb. 15, 2016 | Dec. 31, 2013 | |
Allegheny Technologies 5.875% Notes due 2023 (a) | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 500,000,000 | $ 500,000,000 | ||||
Interest rate | 7.875% | 7.875% | 7.875% | 5.875% | ||
Domestic Bank Group $500 million asset-based credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Amount utilized to support the issuance of letters of credit | $ 42,800,000 | |||||
Average borrowings during period | 0 | $ 53,000,000 | ||||
Interest rate during period | 2.60% | |||||
Short-term Debt | 0 | $ 0 | ||||
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 | |||||
Borrowing capacity unavailable due to fixed charge coverage ratio covenant, maximum | $ 87,500,000 | |||||
Percentage of borrowing capacity unavailable due to fixed charge coverage ratio covenant | 12.50% | |||||
Borrowing capacity unavailable due to fixed charge coverage ratio covenant, minimum | $ 62,500,000 | |||||
Minimum required liquidity number of days prior to maturity of Senior Notes | 90 days | |||||
Debt covenant, undrawn availability requirement, amount | $ 150,000,000 | |||||
Debt covenant, undrawn availability requirement, percent of total available liquidity | 30.00% | |||||
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] | ||||||
Outstanding borrowings | 200,000,000 | $ 200,000,000 | ||||
Minimum prepayment increments allowed | $ 25,000,000 | |||||
Interest rate | 4.21% | 4.21% | ||||
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 4.75% Convertible Senior Notes due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding borrowings | $ 84,200,000 | $ 84,200,000 | ||||
Interest rate | 4.75% | 4.75% | ||||
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 |
Debt - Convertible Notes Narrat
Debt - Convertible Notes Narrative (Details) | 3 Months Ended | |||||
Mar. 31, 2021USD ($)tradingDays$ / shares | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Jul. 02, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||
Equity adjustment for adoption | $ 609,300,000 | $ 641,400,000 | $ 2,192,600,000 | $ 2,193,200,000 | ||
Debt issuance costs | $ 15,100,000 | 14,500,000 | ||||
Cap price (in dollars per share) | $ / shares | $ 19.76 | |||||
Additional Paid-in Capital [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Equity adjustment for adoption | $ 1,580,500,000 | 1,625,500,000 | $ 1,592,100,000 | $ 1,618,000,000 | ||
Additional Paid-in Capital [Member] | Accounting Standards Update 2020-06 | ||||||
Debt Instrument [Line Items] | ||||||
Equity adjustment for adoption | $ (49,800,000) | |||||
Allegheny Technologies 3.5% Convertible Senior Notes due 2025 | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Gross | $ 291,400,000 | $ 291,400,000 | ||||
Interest rate | 3.50% | 3.50% | ||||
Debt instrument, convertible, redemption price as a percent of principal amount | 100.00% | |||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130.00% | |||||
Debt instrument, convertible, threshold trading days | tradingDays | 20 | |||||
Debt instrument, convertible, threshold consecutive trading days | tradingDays | 30 | |||||
Debt instrument, convertible, conversion ratio | 0.0645745 | |||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 15.49 | |||||
Debt instrument, convertible, number of equity instruments (in shares) | 18,800,000 | |||||
Equity component of convertible debt | $ 0 | $ 46,800,000 | $ 51,400,000 | |||
Debt issuance costs | $ 7,800,000 | |||||
Debt instrument, interest rate, effective percentage | 4.20% | 8.40% | ||||
Allegheny Technologies 3.5% Convertible Senior Notes due 2025 | Convertible Debt | Accounting Standards Update 2020-06 | ||||||
Debt Instrument [Line Items] | ||||||
Equity adjustment for adoption | $ (45,400,000) | |||||
Allegheny Technologies 3.5% Convertible Senior Notes due 2025 | Convertible Debt | Additional Paid-in Capital [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 1,600,000 | |||||
Allegheny Technologies 4.75% Convertible Senior Notes due 2022 | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Gross | $ 84,200,000 | $ 84,200,000 | ||||
Interest rate | 4.75% | 4.75% | ||||
Allegheny Technologies 4.75% Convertible Senior Notes due 2022 | Convertible Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, convertible, redemption price as a percent of principal amount | 100.00% | |||||
Debt instrument, convertible, conversion ratio | 0.0692042 | |||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 14.45 | |||||
Debt instrument, convertible, number of equity instruments (in shares) | 5,800,000 | |||||
Debt issuance costs | $ 600,000 | |||||
Debt instrument, interest rate, effective percentage | 5.40% |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging (Details) € in Millions, lb in Millions, $ in Millions | 3 Months Ended | |||
Mar. 31, 2021USD ($)lb | Mar. 31, 2020USD ($) | Mar. 31, 2021EUR (€) | Dec. 31, 2020 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Percentage of estimated annual nickel requirements | 10.00% | |||
Percentage Of Forecasted Natural Gas Usage Hedged for 2021 | 75.00% | |||
Percentage Of Forecasted Natural Gas Usage Hedged for 2022 | 25.00% | |||
Net derivatives gain (loss) on hedge transactions | $ 0.4 | $ (12.3) | ||
Reclassification of Cash Flow Hedge Gain (Loss) [Abstract] | ||||
Cash Flow Hedge Gain (Loss) To Be Reclassified Within Twelve Months | 0.7 | |||
Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Net derivatives gain (loss) on hedge transactions | 0.3 | (9.4) | ||
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 | $ 1.3 | (1.4) | ||
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 gain (loss) on hedge transactions | $ 0.4 | (1.9) | ||
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) | (0.2) | ||
Nickel and other raw material contracts | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Net derivatives gain (loss) on hedge transactions | (0.6) | (6.2) | ||
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 | 1.5 | (0.2) | ||
Natural gas contracts | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Net derivatives gain (loss) on hedge transactions | 0.4 | (1.2) | ||
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 | 0 | (1) | ||
Foreign exchange contracts | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Net derivatives gain (loss) on hedge transactions | 0.1 | (0.1) | ||
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 | ||
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 | € | € 0 | |||
2024 Term Loan | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.21% | 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) - Designated as Hedging Instrument - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | $ 3.2 | $ 4.8 |
Derivative Fair Value Of Derivative Liability | 3.7 | 4 |
Nickel and other raw material contracts | Prepaid expenses and other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 2.1 | 3.7 |
Nickel and other raw material contracts | Other assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 0.4 | 0.7 |
Nickel and other raw material contracts | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 0.9 | 0.1 |
Interest Rate Swap | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 1 | 1 |
Interest Rate Swap | Other long-term liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 1.7 | 2.5 |
Natural gas contracts | Prepaid expenses and other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 0.5 | 0.2 |
Natural gas contracts | Other assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 0.1 | 0.2 |
Natural gas contracts | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 0.1 | 0.3 |
Natural gas contracts | Other long-term liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 0 | 0.1 |
Foreign exchange contracts | Prepaid expenses and other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | $ 0.1 | $ 0 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Mar. 31, 2021 | Dec. 31, 2020 | Jul. 02, 2020 |
Carrying Value Reported Amount Fair Value Disclosure | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 541.7 | $ 645.9 | |
Derivative financial instruments, Assets | 3.2 | 4.8 | |
Derivative Financial Instruments, liabilities | 3.7 | 4 | |
Debt | 1,629.2 | 1,629.1 | |
Estimate Of Fair Value Fair Value Disclosure | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 541.7 | 645.9 | |
Derivative financial instruments, Assets | 3.2 | 4.8 | |
Derivative Financial Instruments, liabilities | 3.7 | 4 | |
Debt | 1,938.4 | 1,847.7 | |
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 | 541.7 | 645.9 | |
Derivative financial instruments, Assets | 0 | 0 | |
Derivative Financial Instruments, liabilities | 0 | 0 | |
Debt | 1,684.8 | 1,594.2 | |
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 | 3.2 | 4.8 | |
Derivative Financial Instruments, liabilities | 3.7 | 4 | |
Debt | 253.6 | 253.5 | |
Convertible Debt | Allegheny Technologies 3.5% Convertible Senior Notes due 2025 | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Equity component of convertible debt | $ 0 | $ 46.8 | $ 51.4 |
Retirement Benefits (Details1)
Retirement Benefits (Details1) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Pension Plans Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost - benefits earned during the year | $ 3.8 | $ 3.2 |
Interest cost on benefits earned in prior years | 17.1 | 21.5 |
Expected return on plan assets | (34.1) | (33.6) |
Amortization of prior service cost (credit) | 0.2 | 0.2 |
Amortization of net actuarial loss | 18.9 | 18.6 |
Total retirement benefit expense | 5.9 | 9.9 |
Other Postretirement Benefit Plan, Defined Benefit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost - benefits earned during the year | 0.3 | 0.5 |
Interest cost on benefits earned in prior years | 2.1 | 2.7 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost (credit) | (0.7) | (0.9) |
Amortization of net actuarial loss | 3.3 | 2.7 |
Total retirement benefit expense | $ 5 | $ 5 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments, Owned, Federal Income Tax Note [Line Items] | ||
Income tax (provision) benefit | $ (5.5) | $ (10.8) |
Effective income tax rate | 31.40% |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Sales | $ 692.5 | $ 955.5 |
Segment EBITDA | 74.3 | 117.7 |
LIFO and net realizable value reserves | 0 | 0 |
Corporate expenses | (12.2) | (12.3) |
Closed operations and other income (expense) | 0.5 | (6.3) |
Total ATI Adjusted EBITDA | 62.6 | 99.1 |
Depreciation & amortization | (36.1) | (37.3) |
Interest expense, net | (23.4) | (21.9) |
Restructuring and other charges | 0 | (8) |
Gain on asset sales | 0 | 2.5 |
Income before income taxes | 3.1 | 34.4 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Sales | 741.2 | 1,036.1 |
Depreciation & amortization | (36.1) | (37.3) |
Operating Segments | High Performance Materials & Components | ||
Segment Reporting Information [Line Items] | ||
Sales | 265.2 | 448.5 |
Segment EBITDA | 24.6 | 76.6 |
Depreciation & amortization | (19.6) | (19.5) |
Operating Segments | Advanced Alloys & Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 476 | 587.6 |
Segment EBITDA | 49.7 | 41.1 |
Depreciation & amortization | (15.5) | (17) |
Operating Segments | Corporate Segment | ||
Segment Reporting Information [Line Items] | ||
Depreciation & amortization | (1) | (0.8) |
Internal Customers | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Sales | 48.7 | 80.6 |
Internal Customers | Operating Segments | High Performance Materials & Components | ||
Segment Reporting Information [Line Items] | ||
Sales | 24.3 | 28.2 |
Internal Customers | Operating Segments | Advanced Alloys & Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | 24.4 | 52.4 |
External Customers | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Sales | 692.5 | 955.5 |
External Customers | Operating Segments | High Performance Materials & Components | ||
Segment Reporting Information [Line Items] | ||
Sales | 240.9 | 420.3 |
External Customers | Operating Segments | Advanced Alloys & Solutions [Member] | ||
Segment Reporting Information [Line Items] | ||
Sales | $ 451.6 | $ 535.2 |
Business Segments - Additional
Business Segments - Additional Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2021employeesegment | Mar. 31, 2020USD ($)position | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and Related Cost, Expected Number of Positions Eliminated | position | 90 | |
Number of business segments | segment | 2 | |
Gain on the sale of oil and gas rights | $ | $ 2.5 | |
Entity Number Of Employees Covered By USW Collective Bargaining Agreements That Expired February 28 2021 | employee | 1,100 |
Per Share Information (Details)
Per Share Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income (loss) attributable to ATI | $ (7.9) | $ 21.1 | |
Net income (loss) attributable to ATI after assumed conversions | $ (7.9) | $ 23.4 | |
Denominator for basic net income (loss) per common share – weighted average shares | 126.8 | 126.1 | |
Share-based compensation | 0 | 0.4 | |
Denominator for diluted net income (loss) per common share – adjusted weighted average shares and assumed conversions | 126.8 | 146.4 | |
Basic net (loss) income attributable to ATI per common share (in dollars per share) | $ (0.06) | $ 0.17 | |
Diluted net (loss) income attributable to ATI per common share (in dollars per share) | $ (0.06) | $ 0.16 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share Amount | 25.7 | 0 | |
Allegheny Technologies 4.75% Convertible Senior Notes due 2022 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible Senior Notes- Effect on numerator | $ 0 | $ 2.3 | |
Convertible Senior Notes- Effect on denominator | 0 | 19.9 | |
Interest rate | 4.75% | 4.75% | |
Allegheny Technologies 3.5% Convertible Senior Notes due 2025 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Convertible Senior Notes- Effect on numerator | $ 0 | $ 0 | |
Convertible Senior Notes- Effect on denominator | 0 | 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | $ (1,223.6) | $ (1,201.7) | ||
OCI before reclassifications | (5.1) | (32) | ||
Amounts reclassified from AOCI | 20.1 | 17.1 | ||
Net current-period OCI | 15 | (14.9) | ||
Ending balance | (1,208.6) | (1,216.6) | ||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 21.2 | 9.8 | ||
OCI before reclassifications | 0.6 | (0.8) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Net current-period OCI | 0.6 | (0.8) | ||
Ending balance | 21.8 | 9 | ||
Post- retirement benefit plans [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | (1,119.9) | (1,083.1) | ||
OCI before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCI | [1] | 16.5 | 15.7 | |
Net current-period OCI | 16.5 | 15.7 | ||
Ending balance | (1,103.4) | (1,067.4) | ||
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 | (55.5) | (76.6) | ||
OCI before reclassifications | (5.4) | (22.6) | ||
Amounts reclassified from AOCI | [2] | 0 | 0 | |
Net current-period OCI | (5.4) | (22.6) | ||
Ending balance | (60.9) | (99.2) | ||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||
Beginning balance | 21.2 | 9.8 | ||
OCI before reclassifications | 0.6 | (0.8) | ||
Amounts reclassified from AOCI | [2] | 0 | 0 | |
Net current-period OCI | 0.6 | (0.8) | ||
Ending balance | 21.8 | 9 | ||
Derivatives [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Beginning balance | 2.1 | (0.5) | ||
OCI before reclassifications | 0.3 | (9.4) | ||
Amounts reclassified from AOCI | [3] | (1.3) | 1.4 | |
Net current-period OCI | (1) | (8) | ||
Ending balance | 1.1 | (8.5) | ||
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 | (50.3) | (41.5) | ||
OCI before reclassifications | 0 | 0 | ||
Amounts reclassified from AOCI | 4.9 | [4] | 0 | |
Net current-period OCI | 4.9 | 0 | ||
Ending balance | (45.4) | (41.5) | ||
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] | No amounts were reclassified to earnings. | |||
[3] | 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). | |||
[4] | 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, 2021 | Mar. 31, 2020 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization to net income (loss) of net prior service credits | $ (0.5) | $ (0.7) | |
Amount reclassified from AOCI, Postretirement benefit plans, Actuarial losses | 22.2 | 21.3 | |
Income before income taxes | 3.1 | 34.4 | |
Income tax provision | 5.5 | 10.8 | |
Cost of sales | (606.7) | (820.7) | |
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 (loss) of net prior service credits | [1] | 0.5 | 0.7 |
Amount reclassified from AOCI, Postretirement benefit plans, Actuarial losses | [1] | (22.2) | (21.3) |
Income before income taxes | [2] | (21.7) | (20.6) |
Income tax provision | [3] | (5.2) | (4.9) |
Net income (loss) | (16.5) | (15.7) | |
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] | 1.7 | (1.8) |
Income tax provision | [3] | 0.4 | (0.4) |
Net income (loss) | 1.3 | (1.4) | |
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] | 2 | (0.3) |
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] | 0 | (1.3) |
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 |
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] | $ (0.3) | $ (0.2) |
[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 operations. | ||
[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, 2021USD ($) |
Components of Environmental Loss Accrual [Abstract] | |
Accrual For Environmental Loss Contingencies | $ 13 |
Accrued Environmental Loss Contingencies Current | 4 |
Federal Superfund and comparable state-managed sites | 3 |
Formerly owned or operated sites | 8 |
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 | $ 15 |