Cover
Cover - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 02, 2024 | Jul. 02, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-12001 | ||
Entity Registrant Name | ATI Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 25-1792394 | ||
Entity Address, Address Line One | 2021 McKinney Avenue | ||
Entity Address, City or Town | Dallas, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75201 | ||
City Area Code | 800 | ||
Local Phone Number | 289-7454 | ||
Title of 12(b) Security | Common stock, par value $0.10 | ||
Trading Symbol | ATI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding (in shares) | 127,781,255 | ||
Entity Public Float | $ 5.7 | ||
Documents Incorporated by Reference | Documents Incorporated By Reference Selected portions of the Proxy Statement for the Annual Meeting of Stockholders to be held on May 16, 2024 are incorporated by reference into Part III of this Report. | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001018963 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Pittsburgh, Pennsylvania |
Auditor Firm ID | 42 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Income Statement [Abstract] | |||
Sales | $ 4,173.7 | $ 3,836 | $ 2,799.8 |
Costs and expenses: | |||
Cost of sales | 3,371.1 | 3,121.8 | 2,466.6 |
Gross profit | 802.6 | 714.2 | 333.2 |
Selling and administrative expenses | 328.1 | 297.5 | 226.9 |
Restructuring charges (credits) | 7.7 | (4.8) | (11.3) |
Loss on asset sales and sales of businesses, net | 0.4 | 105.4 | 0 |
Operating income | 466.4 | 316.1 | 117.6 |
Nonoperating retirement benefit income (expense) | (79.7) | 138.4 | 260 |
Interest expense, net | (92.8) | (87.4) | (96.9) |
Debt extinguishment charge | 0 | 0 | (65.5) |
Other income (loss), net | 1.3 | (12.5) | 18.2 |
Income before income taxes | 295.2 | 354.6 | 233.4 |
Income tax provision (benefit) | (128.2) | 15.5 | 26.8 |
Net income | 423.4 | 339.1 | 206.6 |
Less: Net income attributable to noncontrolling interests | 12.6 | 15.6 | 22 |
Net income attributable to ATI | $ 410.8 | $ 323.5 | $ 184.6 |
Basic net income (loss) per common share | |||
Continuing operations attributable to ATI per common share (in dollars per share) | $ 3.21 | $ 2.54 | $ 1.45 |
Basic net income (loss) attributable to ATI per common share (in dollars per share) | 3.21 | 2.54 | 1.45 |
Diluted net income (loss) per common share | |||
Continuing operations attributable to ATI per common share (in dollars per share) | 2.81 | 2.23 | 1.32 |
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ 2.81 | $ 2.23 | $ 1.32 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 423.4 | $ 339.1 | $ 206.6 |
Currency translation adjustment | |||
Unrealized net change arising during the period | 1.3 | (43.5) | (4.6) |
Reclassification adjustment included in net income | 0 | 20 | 0 |
Total | 1.3 | (23.5) | (4.6) |
Derivatives | |||
Net derivatives gain (loss) on hedge transactions | (28.5) | 53.8 | 15.5 |
Reclassification to net income of net realized loss (gain) | 2.5 | (42.8) | (11.4) |
Income taxes on derivative transactions | (6.1) | 0 | 0 |
Total | (19.9) | 11 | 4.1 |
Postretirement benefit plans- Actuarial gain/loss | |||
Amortization of net actuarial loss | 6 | 13.2 | 13.9 |
Net gain (loss) arising during the period | (3.8) | 54.7 | 8.7 |
Postretirement benefit plans- Prior Service Cost | |||
Amortization to net income (loss) of net prior service credits | (0.6) | (0.5) | (1.8) |
Settlement loss (gain) included in net income (loss) | 1.1 | 0.7 | (21.9) |
Income taxes on postretirement benefit plans | 0.3 | 0 | (15.5) |
Total | 2.4 | 68.1 | 14.4 |
Other comprehensive income (loss), net of tax | (16.2) | 55.6 | 13.9 |
Comprehensive income | 407.2 | 394.7 | 220.5 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 12.2 | (2.7) | 26.8 |
Comprehensive income attributable to ATI | $ 395 | $ 397.4 | $ 193.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 |
Assets | ||
Cash and cash equivalents | $ 743.9 | $ 584 |
Accounts receivable, net | 625 | 579.2 |
Short-term contract assets | 59.1 | 64.1 |
Inventories, net | 1,247.5 | 1,195.7 |
Prepaid expenses and other current assets | 62.2 | 53.4 |
Total Current Assets | 2,737.7 | 2,476.4 |
Property, plant and equipment, net | 1,665.9 | 1,549.1 |
Goodwill | 227.2 | 227.2 |
Other assets | 354.3 | 192.9 |
Total Assets | 4,985.1 | 4,445.6 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 524.8 | 553.3 |
Short-term contract liabilities | 163.6 | 149.1 |
Short-term debt and current portion of long-term debt | 31.9 | 41.7 |
Other current liabilities | 256.8 | 219.8 |
Total Current Liabilities | 977.1 | 963.9 |
Long-term debt | 2,147.7 | 1,706.3 |
Accrued postretirement benefits | 175.2 | 184.9 |
Pension liabilities | 39.7 | 225.6 |
Other long-term liabilities | 164.9 | 207.7 |
Total Liabilities | 3,504.6 | 3,288.4 |
ATI Stockholders’ Equity: | ||
Preferred stock, par value $0.10: authorized-50,000,000 shares; issued-none | 0 | 0 |
Common stock, par value $0.10: authorized-500,000,000 shares; issued- 132,300,971 shares at December 31, 2023 and 131,392,262 shares at January 1, 2023; outstanding-126,879,099 shares at December 31, 2023 and 128,273,042 shares at January 1, 2023 | 13.2 | 13.1 |
Additional paid-in capital | 1,697.1 | 1,668.1 |
Retained loss | (70.1) | (480.9) |
Treasury stock: 5,421,872 shares at December 31, 2023 and 3,119,220 shares at January 1, 2023 | (184) | (87) |
Accumulated other comprehensive loss, net of tax | (83.2) | (67.4) |
Total ATI Stockholders’ Equity | 1,373 | 1,045.9 |
Noncontrolling interests | ||
Noncontrolling Interests | 107.5 | 111.3 |
Total Stockholders' Equity | 1,480.5 | 1,157.2 |
Total Liabilities and Stockholders' Equity | $ 4,985.1 | $ 4,445.6 |
Consolidated Balance Sheets (PA
Consolidated Balance Sheets (PARENTHETICAL) - $ / shares | Dec. 31, 2023 | Jan. 01, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, issued | 132,300,971 | 131,392,262 |
Common stock, oustanding | 126,879,099 | 128,273,042 |
Treasury stock (in shares) | 5,421,872 | 3,119,220 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Operating Activities: | |||
Net income | $ 423.4 | $ 339.1 | $ 206.6 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 146.1 | 142.9 | 143.9 |
Share-based compensation | 29.1 | 26 | 21.1 |
Deferred taxes | (138.2) | (0.1) | 1 |
Debt extinguishment charge | 0 | 0 | 65.5 |
Gain from disposal of property, plant and equipment, net | (0.6) | (0.9) | (2.9) |
Net loss (gain) from sales of businesses | 0.6 | 112.2 | (13.8) |
Non-cash impairment charges | 3 | 0 | 0 |
Change in operating assets and liabilities: | |||
Pension plan contributions | (272) | (51.3) | (71.6) |
Retirement benefits | 53.8 | (159.2) | (261.9) |
Accounts receivable | (46.1) | (128.5) | (126) |
Inventories | (51.8) | (190.8) | (53.9) |
Accounts payable | (29.8) | 156.1 | 88.5 |
Accrued income taxes | (4.8) | 2.5 | (2.6) |
Accrued liabilities and other | (26.8) | (23.1) | 22.2 |
Cash provided by operating activities | 85.9 | 224.9 | 16.1 |
Investing Activities: | |||
Purchases of property, plant and equipment | (200.7) | (130.9) | (152.6) |
Proceeds from disposal of property, plant and equipment | 3.8 | 3.1 | 20.8 |
Proceeds from sales of businesses, net of transaction costs | (0.3) | 0.3 | 53.1 |
Other | 4 | 0.8 | 1.4 |
Cash used in investing activities | (193.2) | (126.7) | (77.3) |
Financing Activities: | |||
Borrowings on long-term debt | 425 | 0 | 675.7 |
Payments on long-term debt and finance leases | (25.2) | (23.1) | (515.6) |
Net borrowings (payments) under credit facilities | (14) | (5.6) | 21.7 |
Debt issuance costs | (6.2) | 0 | (9.5) |
Debt extinguishment charge | 0 | 0 | (64.5) |
Purchase of treasury stock | (85.2) | (139.9) | 0 |
Sale to noncontrolling interests | 0 | 6.4 | 0 |
Dividends paid to noncontrolling interests | (16) | (34) | 0 |
Shares repurchased for income tax withholding on share-based compensation | (11.2) | (5.7) | (4.8) |
Cash provided by (used in) financing activities | 267.2 | (201.9) | 103 |
Increase (decrease) in cash and cash equivalents | 159.9 | (103.7) | 41.8 |
Cash and cash equivalents at beginning of year | 584 | 687.7 | 645.9 |
Cash and cash equivalents at end of year | $ 743.9 | $ 584 | $ 687.7 |
Statements of Changes in Consol
Statements of Changes in Consolidated Equity - USD ($) $ in Millions | Total | ATI Inc., Convertible Senior Notes, 3.5%, Due 2025 Convertible Debt [Member] | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Beginning balance at Jan. 03, 2021 | $ 641.4 | $ 12.7 | $ 1,625.5 | $ 106.5 | $ 0 | $ (1,223.6) | $ 120.3 | |
Beginning balance (Change in Accounting Principle, Other) at Jan. 03, 2021 | 0 | (1,073.2) | 1,073.2 | |||||
Beginning balance (Accounting Standards Update 2020-06) at Jan. 03, 2021 | $ (45.4) | (49.8) | 4.4 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 206.6 | 184.6 | 22 | |||||
Other comprehensive income (loss), net of tax | $ 13.9 | 9.1 | 4.8 | |||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 | |||||||
Employee Stock Plans | $ 16.2 | 21 | (4.8) | |||||
Ending balance at Jan. 02, 2022 | 832.7 | 12.7 | 1,596.7 | (777.7) | (4.8) | (141.3) | 147.1 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 339.1 | 323.5 | 15.6 | |||||
Other comprehensive income (loss), net of tax | 55.6 | 73.9 | (18.3) | |||||
Purchase of treasury stock | (139.9) | (139.9) | ||||||
Conversion of convertible notes | 82.5 | 0.3 | 45.4 | (26.7) | 63.5 | |||
Dividends paid to noncontrolling interest | (34) | (34) | ||||||
Sales of subsidiary shares to noncontrolling interest | 0.9 | 0.9 | ||||||
Employee Stock Plans | 20.3 | 0.1 | 26 | 0 | (5.8) | |||
Ending balance at Jan. 01, 2023 | 1,157.2 | 13.1 | 1,668.1 | (480.9) | (87) | (67.4) | 111.3 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 423.4 | 410.8 | 12.6 | |||||
Other comprehensive income (loss), net of tax | (16.2) | (15.8) | (0.4) | |||||
Purchase of treasury stock | (85.8) | (85.8) | ||||||
Dividends paid to noncontrolling interest | (16) | (16) | ||||||
Employee Stock Plans | 17.9 | 0.1 | 29 | (11.2) | ||||
Ending balance at Dec. 31, 2023 | $ 1,480.5 | $ 13.2 | $ 1,697.1 | $ (70.1) | $ (184) | $ (83.2) | $ 107.5 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation and Reporting The consolidated financial statements include the accounts of ATI Inc. and its subsidiaries. The financial results of majority-owned joint ventures are consolidated into the Company’s operating results and financial position, with the minority ownership interest recognized in the consolidated statement of operations as net income attributable to noncontrolling interests, and as equity attributable to the noncontrolling interests within total stockholders’ equity. The results for the Shanghai STAL Precision Stainless Steel Company Limited (STAL) are reported on a one month lag. 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, whereby ATI’s carrying value of the equity method investment on the consolidated balance sheet is the capital investment and any undistributed profit or loss. The investments are classified in other (noncurrent) assets on the consolidated balance sheet. The profit or loss attributable to ATI from equity method investments is included in the consolidated statements of operations as a component of Other (non-operating) income (expense). See Note 7 for further explanation of the Company’s joint ventures. Intercompany accounts and transactions have been eliminated. Unless the context requires otherwise, “ATI” and the “Company” refer to ATI Inc. and its subsidiaries. Fiscal Year The Company follows a 4-4-5 or 5-4-4 fiscal calendar, whereby each fiscal quarter consists of thirteen weeks grouped into two four-week months and one five-week month, and its fiscal year ends on the Sunday closest to December 31. Unless otherwise stated, references to years in this Annual Report on Form 10-K relate to fiscal years, rather than calendar years. Fiscal years 2023, 2022 and 2021 ended on December 31, 2023, January 1, 2023 and January 2, 2022, respectively. All fiscal years presented include 52 weeks of operations. The dates for prior fiscal years have been revised to more precisely reflect the exact day of the year end periods for these fiscal years given our 4-4-5 or 5-4-4 calendar. Risks and Uncertainties and Use of Estimates The preparation of consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Management believes that the estimates are reasonable. The Company markets its products to a diverse customer base, principally throughout the United States. No single customer accounted for more than 10% of sales for any year presented. The major end markets for ATI’s products are customers in the aerospace & defense, energy, automotive, construction and mining, food equipment and appliances, and medical markets. At December 31, 2023, ATI has approximately 7,300 active employees, of which approximately 15% are located outside the United States. Approximately 35% of ATI’s workforce is covered by various collective bargaining agreements (CBAs), predominantly with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied & Industrial Service Workers International Union, AFL-CIO, CLC (USW). The Company’s CBA with the USW involving approximately 1,100 active full- time represented employees located primarily within the Advanced Alloys & Solutions (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. On July 14, 2021, ATI announced that a new four-year labor agreement with the USW was ratified, ending the strike. The Company has no significant CBAs that expire in fiscal year 2024. Change in Accounting Principle During the fourth quarter of fiscal year 2023, the Company voluntarily changed the method of accounting for recognizing actuarial gains and losses for its defined benefit pension plans. Under the accounting method change, remeasurement of projected benefit obligation and plan assets for defined benefit pension plans are immediately recognized in earnings through net periodic pension benefit cost within nonoperating retirement benefit expense on the consolidated statements of operations, with pension plans to be remeasured annually in the fourth quarter or on an interim basis as triggering events require remeasurement. Prior to this accounting method change, the Company deferred the recognition of these gains and losses in accumulated other comprehensive loss on the consolidated balance sheet. The accumulated actuarial gains/losses were then amortized into net periodic benefit costs within nonoperating retirement benefit expense on the consolidated statement of operations over the average expected remaining life of plan participants. While the historical accounting principle was acceptable, we believe that the current accounting policy is preferable because it provides a better representation of the operating results of the Company and the economic performance of plan assets in relation to the measurement of its benefit obligations for the period. The change in accounting will more clearly reflect the current period impact of the Company’s pension asset investment strategy to readers of the financial statements. This change has been applied to all defined benefit pension plans on a retrospective basis for all prior periods presented, and as of January 4, 2021, resulted in a cumulative effect decrease to retained earnings of $1.07 billion with a corresponding offset to accumulated other comprehensive loss. The following table reflects the effect of the change in the accounting principle on the consolidated financial statements: For the Fiscal Year Ending December 31, 2023 As Computed Under Previous Policy As Reported under New Policy Effect of Accounting Change (dollars in millions, except per share data) Statement of Operations Nonoperating retirement benefit expense $ (1,036.6) $ (79.7) $ 956.9 Income (loss) before income taxes $ (661.7) $ 295.2 $ 956.9 Income tax benefit $ (342.5) $ (128.2) $ 214.3 Net income (loss) $ (319.2) $ 423.4 $ 742.6 Net income (loss) attributable to ATI $ (331.8) $ 410.8 $ 742.6 Basic net income (loss) per common share $ (2.59) $ 3.21 $ 5.80 Diluted net income (loss) per common share $ (2.59) $ 2.81 $ 5.40 Statement of Comprehensive Income (Loss) Net income (loss) $ (319.2) $ 423.4 $ 742.6 Postretirement benefit plans Actuarial gain/ loss Amortization of net actuarial loss $ 55.7 $ 6.0 $ (49.7) Net loss arising during the period $ (71.4) $ (3.8) $ 67.6 Settlement loss included in net income (loss) $ 975.9 $ 1.1 $ (974.8) Income taxes on postretirement benefits $ 214.6 $ 0.3 $ (214.3) Total $ 745.0 $ 2.4 $ (742.6) Other comprehensive income (loss), net of tax $ 726.4 $ (16.2) $ (742.6) Balance Sheet Retained loss $ (154.9) $ (70.1) $ 84.8 Accumulated other comprehensive income (loss), net of tax $ 1.6 $ (83.2) $ (84.8) Statement of Cash Flows Operating Activities: Net income (loss) $ (319.2) $ 423.4 $ 742.6 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred taxes $ (352.5) $ (138.2) $ 214.3 Change in operating assets and liabilities: Retirement benefits $ 1,010.7 $ 53.8 $ (956.9) Statements of Changes in Consolidated Equity Retained Loss Net income (loss) $ (331.8) $ 410.8 $ 742.6 Balance, December 31, 2023 $ (154.9) $ (70.1) $ 84.8 Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) $ 726.8 $ (15.8) $ (742.6) Balance, December 31, 2023 $ 1.6 $ (83.2) $ (84.8) Total Equity Net income (loss) $ (319.2) $ 423.4 $ 742.6 Other comprehensive income (loss) $ 726.4 $ (16.2) $ (742.6) For the Fiscal Year Ending January 1, 2023 As Computed Under Previous Policy As Reported under New Policy Effect of Accounting Change (dollars in millions, except per share data) Statement of Operations Loss on asset sales and sales of businesses, net $ 134.2 $ 105.4 $ (28.8) Operating income $ 287.3 $ 316.1 $ 28.8 Nonoperating retirement benefit income (expense) $ (25.4) $ 138.4 $ 163.8 Income before income taxes $ 162.0 $ 354.6 $ 192.6 Net income $ 146.5 $ 339.1 $ 192.6 Net income attributable to ATI $ 130.9 $ 323.5 $ 192.6 Basic net income per common share $ 1.03 $ 2.54 $ 1.51 Diluted net income per common share $ 0.96 $ 2.23 $ 1.27 Statement of Comprehensive Income (Loss) Net income $ 146.5 $ 339.1 $ 192.6 Postretirement benefit plans Actuarial gain/loss Amortization of net actuarial loss $ 76.7 $ 13.2 $ (63.5) Net gain arising during the period $ 155.0 $ 54.7 $ (100.3) Settlement loss included in net income $ 29.5 $ 0.7 $ (28.8) Total $ 260.7 $ 68.1 $ (192.6) Other comprehensive income, net of tax $ 248.2 $ 55.6 $ (192.6) Balance Sheet Retained earnings (loss) $ 176.9 $ (480.9) $ (657.8) Accumulated other comprehensive loss, net of tax $ (725.2) $ (67.4) $ 657.8 Statement of Cash Flows Operating Activities: Net income $ 146.5 $ 339.1 $ 192.6 Adjustments to reconcile net income to net cash provided by operating activities: Net loss from sales of businesses $ 141.0 $ 112.2 $ (28.8) Change in operating assets and liabilities: Retirement benefits $ 4.6 $ (159.2) $ (163.8) Statements of Changes in Consolidated Equity Retained Earnings (Loss) Net income $ 130.9 $ 323.5 $ 192.6 Balance, January 1, 2023 $ 176.9 $ (480.9) $ (657.8) Accumulated Other Comprehensive Income (Loss) Other comprehensive income $ 266.5 $ 73.9 $ (192.6) Balance, January 1, 2023 $ (725.2) $ (67.4) $ 657.8 Total Equity Net income $ 146.5 $ 339.1 $ 192.6 Other comprehensive income $ 248.2 $ 55.6 $ (192.6) For the Fiscal Year Ending January 2, 2022 As Computed Under Previous Policy As Reported under New Policy Effect of Accounting Change (dollars in millions, except per share data) Statement of Operations Nonoperating retirement benefit income $ 37.2 $ 260.0 $ 222.8 Income before income taxes $ 10.6 $ 233.4 $ 222.8 Net income (loss) $ (16.2) $ 206.6 $ 222.8 Net income (loss) attributable to ATI $ (38.2) $ 184.6 $ 222.8 Basic net income (loss) per common share $ (0.30) $ 1.45 $ 1.75 Diluted net income (loss) per common share $ (0.30) $ 1.32 $ 1.62 Statement of Comprehensive Income (Loss) Net income (loss) $ (16.2) $ 206.6 $ 222.8 Postretirement benefit plans Actuarial gain/loss Amortization of net actuarial loss $ 89.5 $ 13.9 $ (75.6) Net gain arising during the period $ 155.9 $ 8.7 $ (147.2) Total $ 237.2 $ 14.4 $ (222.8) Other comprehensive income, net of tax $ 236.7 $ 13.9 $ (222.8) Balance Sheet Retained earnings (loss) $ 72.7 $ (777.7) $ (850.4) Accumulated other comprehensive loss, net of tax $ (991.7) $ (141.3) $ 850.4 Statement of Cash Flows Operating Activities: Net income (loss) $ (16.2) $ 206.6 $ 222.8 Change in operating assets and liabilities: Retirement benefits $ (39.1) $ (261.9) $ (222.8) Statements of Changes in Consolidated Equity Retained Earnings (Loss) Net income (loss) $ (38.2) $ 184.6 $ 222.8 Cumulative effect of change in accounting principle $ — $ (1,073.2) $ (1,073.2) Balance, January 2, 2022 $ 72.7 $ (777.7) $ (850.4) Accumulated Other Comprehensive Income (Loss) Other comprehensive income $ 231.9 $ 9.1 $ (222.8) Cumulative effect of change in accounting principle $ — $ 1,073.2 $ 1,073.2 Balance, January 2, 2022 $ (991.7) $ (141.3) $ 850.4 Total Equity Net income (loss) $ (16.2) $ 206.6 $ 222.8 Other comprehensive income $ 236.7 $ 13.9 $ (222.8) Cash and Cash Equivalents Cash equivalents are highly liquid investments that are readily convertible to cash with original maturities of three months or less. Accounts Receivable Accounts receivable are presented net of a reserve for doubtful accounts of $3.2 million and $7.7 million at December 31, 2023 and January 1, 2023, respectively. Trade credit is extended based upon evaluations of each customer’s ability to perform its obligations, which are updated periodically. The Company’s accounts receivable reserves are determined based on expected credit losses. Amounts are written-off against the reserve in the period it is determined that the receivable is uncollectible. Inventories Inventories are stated at the lower of cost (first-in, first-out (FIFO) and average cost methods) or net realizable value. Costs include direct material, direct labor and applicable manufacturing and engineering overhead, and other direct costs. The term net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company evaluates product lines on a quarterly basis to identify inventory carrying values that exceed estimated net realizable value. The calculation of a resulting reserve, if any, is recognized as an expense in the period that the need for the reserve is identified. It is the Company’s general policy to write-down to scrap value any inventory that is identified as slow-moving or aged more than twelve months, subject to sales, backlog and anticipated order considerations. In some instances this aging criterion is up to twenty-four months. Inventory valuation reserves also include amounts pertaining to intercompany profit elimination between different subsidiaries. Long-Lived Assets Property, plant and equipment are recorded at cost, including capitalized interest, and include long-lived assets acquired under finance leases. Depreciation is primarily recorded using the straight-line method. The Company periodically reviews estimates of useful life and production capacity assigned to new and in service assets. Significant enhancements, including major maintenance activities that extend the lives of property and equipment, are capitalized. Costs related to repairs and maintenance are charged to expense in the period incurred. The cost and related accumulated depreciation of property and equipment retired or disposed of are removed from the accounts and any related gains or losses are included in income. The Company monitors the recoverability of the carrying value of its long-lived assets. An impairment charge is recognized when an indicator of impairment occurs and the expected net undiscounted future cash flows from an asset’s use (including any proceeds from disposition) are less than the asset’s carrying value and the asset’s carrying value exceeds its fair value. If an impairment loss is recognized, the adjusted carrying value of the long-lived asset is its new cost basis and this new cost basis is depreciated over the remaining useful life of the asset. Assets to be disposed of by sale are stated at the lower of their fair values or carrying amounts and depreciation is no longer recognized. Leases The Company classifies leases as either operating or financing, and records a right-of-use (ROU) asset and a lease liability on the consolidated balance sheets as further discussed below. The lease liability is equal to the present value of the minimum lease payments for the term of the lease, including any optional renewal periods determined to be reasonably certain to be exercised, using the discount rate determined at lease commencement. This discount rate is the rate implicit in the lease, if known; otherwise, the incremental borrowing rate (IBR) for the expected lease term is used. The Company’s IBRs approximate the rate the Company would have to pay to borrow on a collateralized basis over a similar term at lease inception. The ROU asset is equal to the initial measurement of the lease liability plus any lease payments made to the lessor at or before the commencement date and any unamortized initial direct costs incurred by the lessee, less any unamortized lease incentives received. The Company has elected to not separate lease components from non-lease components for all asset classes, and has made an accounting policy election to apply the short-term exception, which does not require the capitalization of leases with terms of 12 months or less. The Company has lease contracts for real property and machinery and equipment. At inception of a contract, the Company determines whether the contract is or contains a lease. If the Company has a right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the asset, then the contract contains a lease. Several of the Company’s real property lease contracts include options to extend the lease term, and the Company reassesses the likelihood of renewal on at least an annual basis. In addition, several real property leases include variable lease payments, for items such as common area maintenance and utilities, which are expensed as incurred as variable lease expense. There are two types of leases: operating leases and finance leases. Lease classification is determined at lease commencement. A finance lease exists when specific criteria are met that indicate that all the risk and rewards related to the leased assets are transferred to the lessee. All other leases not meeting the finance lease criteria are classified as operating leases. Operating lease expense is recognized on a straight-line basis on the consolidated statement of operations. Finance leases have front-loaded expense recognition which is reported as amortization expense and interest expense on the consolidated statement of operations. ROU assets for operating leases are classified in other long-term assets property, plant and equipment other current liabilities other long-term liabilities short-term debt long-term debt Goodwill Goodwill is reviewed annually for impairment, or more frequently if impairment indicators arise. The review for goodwill impairment requires a comparison of the fair value of each reporting unit that has goodwill associated with its operations with its carrying amount, including goodwill. If this comparison reflects impairment, then the loss would be measured as the excess of the carrying value over the calculated fair value. Generally accepted accounting principles provide the option to qualitatively assess goodwill for impairment before completing a quantitative assessment. Under the qualitative approach, if, after assessing the totality of events or circumstances, including both macroeconomic, industry and market factors, and entity-specific factors, the Company determines it is likely (more likely than not) that the fair value of a reporting unit is greater than its carrying amount, then the quantitative impairment analysis is not required. The quantitative assessment may be performed each year for a reporting unit at the Company’s option without first performing a qualitative assessment. The Company’s quantitative assessment of goodwill for possible impairment includes estimating the fair market value of a reporting unit which has goodwill associated with its operations using discounted cash flow and multiples of cash earnings valuation techniques, plus valuation comparisons to recent public sale transactions of similar businesses, if any. These impairment assessments and valuation methods require the Company to make estimates and assumptions regarding revenue growth, changes in working capital and capital expenditures, selling prices and profitability that drive cash flows, and the weighted average cost of capital. Many of these assumptions are determined by reference to market participants identified by the Company. Although management believes that the estimates and assumptions used were reasonable, actual results could differ from those estimates and assumptions. Other events and changes in circumstances may also require goodwill to be tested for impairment between annual measurement dates. While a decline in stock price and market capitalization is not specifically cited as a goodwill impairment indicator, a company’s stock price and market capitalization should be considered in determining whether it is more likely than not that the fair value of a reporting unit is less that its carrying value. Additionally, a significant decline in a company’s stock price may suggest that an adverse change in the business climate may have caused the fair value of one or more reporting units to fall below carrying value. A sustained decline in market capitalization below book value may be determined to require an interim goodwill impairment review. Environmental Costs that mitigate or prevent future environmental contamination or extend the life, increase the capacity or improve the safety or efficiency of property utilized in current operations are capitalized. Other costs that relate to current operations or an existing condition caused by past operations are expensed. Environmental liabilities are recorded when the Company’s liability is probable and the costs are reasonably estimable, but generally not later than the completion of the feasibility study or the Company’s recommendation of a remedy or commitment to an appropriate plan of action. The accruals are reviewed periodically and, as investigations and remediations proceed, adjustments of the accruals are made to reflect new information as appropriate. Accruals for losses from environmental remediation obligations are not discounted to their present value. The accruals are not reduced by possible recoveries from insurance carriers or other third parties, but do reflect allocations among potentially responsible parties (PRPs) at Federal Superfund sites or similar state-managed sites after an assessment is made of the likelihood that such parties will fulfill their obligations at such sites and after appropriate cost-sharing or other agreements are entered. The measurement of environmental liabilities by the Company is based on currently available facts, present laws and regulations, and current technology. Such estimates take into consideration the Company’s prior experience in site investigation and remediation, the data concerning cleanup costs available from other companies and regulatory authorities, and the professional judgment of the Company’s environmental experts in consultation with outside environmental specialists, when necessary. Foreign Currency Translation Assets and liabilities of international operations are translated into U.S. dollars using fiscal year-end exchange rates, while revenues and expenses are translated at average exchange rates during the period. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Sales Recognition The following is the Company’s accounting policy as it relates to Accounting Standards Codification Topic 606 (ASC 606), Contracts with Revenue from Customers. This guidance provides a five-step analysis of transactions to determine when and how revenue is recognized, and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The following is the Company’s accounting policy as it relates to the five-step analysis for revenue recognition: 1. Identify the contract : The Company has determined that the contract with the customer is established when the customer purchase order is accepted or acknowledged. Long-term agreements (LTAs), which typically extend multiple years, are used by the Company and certain of its customers for its specialty materials, in the form of mill products, powders, parts and components, to reduce their supply uncertainty. While these LTAs generally define commercial terms including pricing, termination clauses and other contractual requirements, they do not represent the contract with the customer. 2. Identify the performance obligation in the contract : When the Company accepts or acknowledges the customer purchase order, the type of good or service is defined on a line by line basis. Individual performance obligations are established by virtue of the individual line items identified on the sales order acknowledgment at the time of issuance. Generally, the Company’s revenue relates to the sale of goods and contains a single performance obligation for each distinct good. Conversion services that transform customer-owned inventory to a different dimension, product form, and/or changed mechanical properties are classified as “goods”. 3. Determine the transaction price : Pricing is also defined on a sales order acknowledgment on a line item basis and includes an estimate of variable consideration when required by the terms of the individual customer contract. Variable consideration is when the selling price of the good is not known or is subject to adjustment under certain conditions. Types of variable consideration may include volume discounts, customer rebates and surcharges. ATI also provides assurances that goods or services will meet the product specifications contained within the acknowledged customer contract. As such, returns and refunds reserves are estimated based upon past product line history or, at certain locations, on a claim by claim basis. 4. Allocate the transaction price to the performance obligation : Since a customer contract generally contains only one performance obligation, this step of the analysis is generally not applicable to the Company. 5. Recognize revenue when or as the performance obligation is satisfied : Performance obligations generally occur at a point in time and are satisfied when control passes to the customer. For most transactions, control passes at the time of shipment in accordance with agreed upon delivery terms. On occasion, shipping and handling charges occur after the customer obtains control of the good. When this occurs, the shipping and handling services are considered activities to fulfill the promise to transfer the good. Certain customer agreements involving production of parts and components require revenue to be recognized over time due to there being no alternative use for the product without significant economic loss and an enforceable right to payment including a normal profit margin from the customer in the event of contract termination. The Company uses an input method for determining the amount of revenue, and associated standard cost, to recognize over-time revenue, cost and gross margin for these customer agreements. The input methods used for these agreements include costs incurred and labor hours expended, both of which give an accurate representation of the progress made toward complete satisfaction of that particular performance obligation. Contract assets are recognized when ATI’s conditional right to consideration for goods or services have transferred to the customer. A conditional right indicates that additional performance obligations associated with the contract are yet to be satisfied. Contract assets are assessed separately for impairment purposes. If ATI’s right to consideration from the customer is unconditional, this asset is accounted for as a receivable and presented separately from other contract assets. A right is unconditional if nothing other than the passage of time is required before payment of that consideration is due. Performance obligations that are recognized as revenue at a point-in-time and are billed to the customer are recognized as accounts receivable. Payment terms vary from customer to customer depending upon credit worthiness, prior payment history and other credit considerations. Contract costs are the incremental costs of obtaining and fulfilling a contract (i.e., costs that would not have been incurred if the contract had not been obtained) to provide goods and services to customers. Contract costs for ATI largely consist of design and development costs for molds, dies and other tools that ATI will own and that will be used in producing the products under the supply arrangement. Contract costs are classified as non-current assets and amortized to expense on a systematic and rational basis over a period consistent with the transfer to the customer of the goods or services to which the asset relates. Contract liabilities are recognized when ATI has received consideration from a customer to transfer goods or services at a future point in time when the Company performs under the contract. Elements of variable consideration discussed above may be recorded as contract liabilities. In addition, progress billings and advance payments from customers for costs incurred to date are also reported as contract liabilities. Research and Development Research, development and technical service activities are closely interrelated and are directed toward development of new products, improvement of existing products, cost reduction, process improvement and control, quality assurance and control, development of new manufacturing methods, and improvement of existing manufacturing methods. Research and development costs are expensed as incurred. Company funded research and development costs were $20.7 million in fiscal year 2023, $16.3 million in fiscal year 2022, and $16.5 million in fiscal year 2021. Customer funded research and development costs were $1.4 million in fiscal year 2023, $1.4 million in fiscal year 2022, and $3.5 million in fiscal year 2021. Government Assistance The Company enters into agreements with U.S. federal agencies, U.S. state and local governments, and foreign governments that provide financial assistance and incentives supporting both new capital projects to expand and enhance manufacturing capabilities and also to sustain and maintain existing operations. Depending on the nature of the government program, the financial impacts may be recorded as a reduction to cost of sales through direct offset of labor and overhead costs or lower depreciation expense, or as a reduction of selling, general and administrative expenses for property tax abatement or other similar categories. Benefits from government assistance are recognized as the activities are incurred, subject to ongoing assessments of meeting other relevant terms such as employment or expenditure levels. In November 2021, ATI entered into an agreement with the U.S. Department of Transportation under the Aviation Manufacturing Jobs Protection (AMJP) program for a grant of up to $22.2 million. The receipt of the award was primarily conditioned upon the Company committing to not furlough or lay off a defined group of employees in the High Performance Materials & Components (HPMC) segment operations during the six-month period of performance between November 2021 and May 2022. The AMJP grant benefit was recognized over the six-month performance period as a reduction to cost of sales in proportion to the compensation expense that the award was intended to defray, with $16.6 million recognized in fiscal year 2022 operating results. Cash receipts from the AMJP program were $11.0 million in fiscal year 2022, and this program is now completed. ATI is a party to various U.S. states’ economic development incentive programs that provide economic benefits in the forms of property tax relief or cash payments to offset capital expenditures. These programs generally include requirements for levels of capital spending and/or employment to qualify for the government assistance. For the fiscal years ended December 31, 2023 and January 1, 2023, these state-level programs reduced selling, general and administrative expenses by $1.4 million and $1.6 million, respectively, and cash receipts were $3.4 million and $2.8 million, respectively. Receivables for ongoing programs are $1.2 million and $3.7 million as of December 31, 2023 and January 1, 2023, respectively. Stock-based Compensation The Company accounts for stock-based compensation transactions, such as nonvested restricted stock or stock units and performance equity awards, using fair value. Compensation expense for an award is estimated at the date of grant and is recognized over the requisite service period. Compensation expense is adjusted for equity awards that do not vest because service or performance conditions are not satisfied. However, compensation expense already recognized on plans which vest based solely on the attainment of market conditions, such as total shareholder return measures, is not adjusted based on the award attainment status at the end of the measurement period. Compensatio |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company operates under two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). HPMC is comprised of the Specialty Materials and Forged Products businesses, as well as the ATI Europe distribution operations. Approximately 85% of its revenue is derived from the aerospace & defense markets including nearly 60% of its revenue from products for commercial jet engines. Other major HPMC end markets include medical and energy. HPMC produces a wide range of high performance materials, components, and advanced metallic powder alloys. These are made from nickel-based alloys and superalloys, titanium and titanium-based alloys, and a variety of other specialty materials. Capabilities range from cast/wrought and powder alloy development to final production of highly engineered finished components, and 3D-printed aerospace products. The AA&S segment includes the Specialty Alloys & Components business, the Specialty Rolled Products business, the 60%-owned STAL PRS joint venture, and the Uniti and A&T Stainless 50%-owned joint ventures that are reported in AA&S segment results under the equity method of accounting. See Note 7 for further information on the Company’s joint ventures. AA&S is focused on delivering high-value flat products primarily to the energy, aerospace, and defense markets, which comprise over 60% of its revenue. Other important end markets for AA&S include electronics, medical and automotive. AA&S produces nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms including plate, sheet, and strip products. The measure of segment EBITDA categorically excludes income taxes, depreciation and amortization, corporate expenses, net interest expense, closed operations and other expenses, charges for goodwill and asset impairments, restructuring and other charges, strike related costs, pension remeasurement gains/losses, debt extinguishment charges and gains or losses on asset sales and sales of businesses. Management believes segment EBITDA, as defined, provides an appropriate measure of controllable operating results at the business segment level. Intersegment sales are generally recorded at full cost or market. Common services are allocated on the basis of estimated utilization. Fiscal Year (In millions) 2023 2022 2021 Total sales: High Performance Materials & Components $ 2,302.0 $ 1,815.7 $ 1,248.3 Advanced Alloys & Solutions 2,336.9 2,433.7 1,762.4 Total sales 4,638.9 4,249.4 3,010.7 Intersegment sales: High Performance Materials & Components 181.8 174.5 93.2 Advanced Alloys & Solutions 283.4 238.9 117.7 Total intersegment sales 465.2 413.4 210.9 Sales to external customers: High Performance Materials & Components 2,120.2 1,641.2 1,155.1 Advanced Alloys & Solutions 2,053.5 2,194.8 1,644.7 Total sales to external customers $ 4,173.7 $ 3,836.0 $ 2,799.8 Total international sales were $1,922.9 million in fiscal year 2023, $1,617.4 million in fiscal year 2022, and $1,264.9 million in fiscal year 2021. Of these amounts, sales by operations in the United States to customers in other countries were $1,498.7 million in fiscal year 2023, $1,217.9 million in fiscal year 2022, and $846.3 million in fiscal year 2021. Fiscal Year (In millions) 2023 2022 Revised 2021 Revised EBITDA: High Performance Materials & Components $ 433.6 $ 303.4 $ 170.3 Advanced Alloys & Solutions 276.6 375.3 246.8 Total segment EBITDA 710.2 678.7 417.1 Corporate expenses (62.3) (60.3) (53.7) Closed operations and other income (expenses) (13.3) (5.6) 3.1 Depreciation & amortization (146.1) (142.9) (143.9) Interest expense, net (92.8) (87.4) (96.9) Restructuring and other credits (charges) (See Note 19) (31.4) (23.7) 10.5 Strike related costs — — (63.2) Retirement benefit settlement gain (loss) (See Note 14) (41.7) — 64.9 Pension remeasurement gain (loss) (See Note 14) (26.8) 100.3 147.2 Joint venture restructuring credit (See Note 7) — 0.9 — Debt extinguishment charge (See Note 10) — — (65.5) Gain (loss) on asset sales and sale of business, net (0.6) (105.4) 13.8 Income before income taxes $ 295.2 $ 354.6 $ 233.4 Beginning in 2020, the U.S. government enacted various relief packages in response to the COVID-19 pandemic. Results for the fiscal year ended January 1, 2023 include $34 million related to this government sponsored COVID relief in segment EBITDA. HPMC segment results for fiscal year 2022 include $27 million of benefits from the AMJP Program and employee retention credits, and AA&S segment results for fiscal year 2022 include $7 million in employee retention credits. Corporate expenses are primarily classified as selling and administrative expenses in the consolidated statement of operations, and consist of salaries and benefits, incentive compensation, facility leases and other costs of ATI’s corporate functions. Closed operations and other expenses are primarily presented in selling and administrative expenses in the consolidated statements of operations. These items included costs at closed facilities, including legal matters, environmental, real estate and other facility costs, and changes in foreign currency remeasurement impacts primarily related to ATI’s European Treasury Center operation. Closed operations and other expenses in fiscal year 2023 reflect higher retirement benefit expense and higher insurance costs associated with an outstanding insurance claim involving our captive insurance company compared to prior year periods. Depreciation expense in fiscal year 2023 includes $3.8 million of accelerated depreciation of fixed assets related to the restructuring of our European operations and the closure of our Robinson, PA operations. During the fiscal year ended January 2, 2022, the Company recorded $63.2 million in strike related costs, of which $59.7 million were excluded from AA&S segment EBITDA and $3.5 million were excluded from HPMC segment EBITDA. These items primarily consisted of overhead costs recognized in the period due to below-normal operating rates, higher costs for outside conversion activities, and ongoing benefit costs for striking employees. Loss on asset sales and sales of businesses for fiscal year 2023 is related to a $0.6 million loss on the sale of the Company’s Northbrook, IL operations, for which no proceeds were received but $0.3 million of transaction costs were paid and reported as an investing activity on the consolidated statement of cash flows. Gain (loss) on asset sales and sales of businesses, net, for fiscal year 2022 relate to a $112.2 million loss on the sale of the Company’s Sheffield, UK operations, partially offset by a $6.8 million gain from the sale of assets from the Pico Rivera, CA operations. The $13.8 million gain on asset sales in fiscal year 2021 consists of a gain on the sale of the Company’s Flowform Products business. See Note 6 for further explanation regarding the sale of business transactions in fiscal years 2022 and 2021. Certain additional information regarding the Company’s business segments is presented below: Fiscal Year (In millions) 2023 2022 2021 Depreciation and amortization: High Performance Materials & Components $ 71.1 $ 68.3 $ 75.0 Advanced Alloys & Solutions 67.9 67.4 64.5 Other 7.1 7.2 4.4 Total depreciation and amortization $ 146.1 $ 142.9 $ 143.9 Capital expenditures: High Performance Materials & Components $ 100.4 $ 33.3 $ 40.2 Advanced Alloys & Solutions 97.2 89.6 110.6 Corporate 3.1 8.0 1.8 Total capital expenditures $ 200.7 $ 130.9 $ 152.6 Fiscal Year Identifiable assets: 2023 2022 2021 High Performance Materials & Components $ 1,990.9 $ 1,749.3 $ 1,624.8 Advanced Alloys & Solutions 1,996.7 1,981.1 1,914.0 Corporate: Deferred Taxes 135.7 4.7 6.3 Cash and cash equivalents and other 861.8 710.5 740.1 Total assets $ 4,985.1 $ 4,445.6 $ 4,285.2 Fiscal Year Fiscal Year Fiscal Year ($ in millions) 2023 Percent 2022 Percent 2021 Percent Total assets: United States $ 4,463.7 90 % $ 3,942.7 89 % $ 3,587.0 84 % China 295.8 6 % 321.1 7 % 406.4 9 % United Kingdom 16.9 — % 13.4 — % 153.9 4 % Other 208.7 4 % 168.4 4 % 137.9 3 % Total Assets $ 4,985.1 100 % $ 4,445.6 100 % $ 4,285.2 100 % |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Note 19. Restructuring and other charges For the fiscal year ended December 31, 2023, restructuring and other charges were $31.4 million and include $7.7 million of severance-related restructuring charges and $23.7 million of charges included within cost of sales on the consolidated statements of operations. The $7.7 million of severance-related restructuring charges represent severance for the involuntary reduction of approximately 110 employees primarily for the restructuring of the European operations and across ATI’s domestic operations in conjunction with the continued transformation. The $23.7 million of charges within cost of sales include $11.5 million of start up costs, $1.9 million of costs associated with an unplanned outage at our Lockport, NY facility, and $10.3 million primarily for asset write-offs for the restructuring of our European operations and the closure of our Robinson, PA operations. For the fiscal year ended January 1, 2023, restructuring and other charges were $23.7 million, which included a $28.5 million charge for a litigation settlement (see Note 21), partially offset by $4.8 million of restructuring credits for reductions in severance-related reserves related to approximately 110 employees based on changes in planned operating rates and revised workforce estimates. For the fiscal year ended January 2, 2022, restructuring and other charges were a net benefit of $10.5 million, which primarily included $11.3 million of reversals of previously-recognized restructuring charges separately classified on the consolidated statement of operations, as well as an $0.8 million charge for inventory valuation reserves classified in cost of sales on the consolidated statement of operations related to the fiscal year 2020 idling of the Albany, OR primary titanium facility. Restructuring items in fiscal year 2021 include a $12.0 million reduction in severance-related reserves related to approximately 350 employees based on changes in planned operating rates and revised workforce reduction estimates, partially offset by $0.7 million of other costs related to facility idlings. Restructuring reserves for severance cost activity is as follows: Severance and Employee Benefit Costs December 31, 2023 January 1, 2023 January 2, 2022 Beginning of fiscal year balance $ 9.8 $ 17.7 $ 43.4 Additions/(Adjustments) 7.7 (4.8) (12.0) Payments (2.3) (3.1) (13.7) End of fiscal year balance $ 15.2 $ 9.8 $ 17.7 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets At December 31, 2023 and January 1, 2023, the Company had $227.2 million of goodwill on its consolidated balance sheet, all of which relates to the HPMC segment. The Company performs its annual goodwill impairment evaluations in the fourth quarter of each fiscal year. The $227.2 million of goodwill as of December 31, 2023 on the Company’s consolidated balance sheet is comprised of $161.2 million at the Forged Products reporting unit and $66.0 million at the Specialty Materials reporting unit. For the Company’s annual goodwill impairment evaluation in fiscal year 2023, quantitative goodwill assessments were performed for these two HPMC reporting units with goodwill. This quantitative fair value assessment includes discounted cash flow and multiples of cash earnings valuation techniques, plus valuation comparisons to recent public sale transactions of similar businesses, if any, which represents Level 3 unobservable information in the fair value hierarchy. These impairment assessments and valuation methods require the Company to make estimates and assumptions regarding revenue growth, changes in working capital and capital expenditures, selling prices and profitability that drive cash flows, and the weighted average cost of capital. Many of these assumptions are determined by reference to market participants the Company has identified. For example, the weighted average cost of capital used in the discounted cash flow assessment was 12.0% and the long-term growth rates ranged from 3% to 3.5%. In order to validate the reasonableness of the estimated fair values of the reporting units as of the valuation date, a reconciliation of the aggregate fair values of all reporting units to market capitalization was performed using a reasonable control premium. Although the Company believes that the estimates and assumptions used were reasonable, actual results could differ from those estimates and assumptions. The Specialty Materials reporting unit had a fair value that was significantly in excess of carrying value. The Forged Products reporting unit had a fair value that exceeded carrying value by approximately 60% for the fiscal year 2023 annual assessment, which increased compared to the annual evaluation for fiscal year 2022. No impairments were determined to exist from the annual goodwill impairment evaluation for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022. No indicators of impairment were observed in fiscal years 2023, 2022 and 2021 associated with any of the Company’s long-lived assets. Accumulated goodwill impairment losses as of December 31, 2023, January 1, 2023 and January 2, 2022 were $528.0 million. Other intangible assets, which are included in Other assets on the accompanying consolidated balance sheets as of December 31, 2023 and January 1, 2023 were as follows: December 31, 2023 January 1, 2023 (in millions) Gross Accumulated Gross Accumulated Technology $ 61.2 $ (38.6) $ 61.2 $ (35.4) Customer relationships 24.8 (12.6) 24.8 (11.6) Trademarks 48.8 (32.5) 48.8 (29.3) Total amortizable intangible assets $ 134.8 $ (83.7) $ 134.8 $ (76.3) Amortization expense related to intangible assets was approximately $7 million for the fiscal year ended December 31, 2023 and $8 million for each of the fiscal years ended January 1, 2023 and January 2, 2022. For each of the fiscal years 2024 through 2028, annual amortization expense is expected to be approximately $7 million. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2023 | |
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 fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 is as follows: Fiscal Year (in millions) 2023 2022 2021 HPMC AA&S Total HPMC AA&S Total HPMC AA&S Total Diversified Global Markets: Aerospace & Defense: Jet-Engines- Commercial $ 1,255.3 $ 78.2 $ 1,333.5 $ 975.7 $ 87.8 $ 1,063.5 $ 480.9 $ 36.3 $ 517.2 Airframes- Commercial 350.6 388.8 739.4 184.1 284.8 468.9 132.8 129.9 262.7 Defense 181.0 220.9 401.9 158.2 183.0 341.2 221.8 131.0 352.8 Total Aerospace & Defense $ 1,786.9 $ 687.9 $ 2,474.8 $ 1,318.0 $ 555.6 $ 1,873.6 $ 835.5 $ 297.2 $ 1,132.7 Energy: Oil & Gas 10.6 404.0 414.6 35.0 441.7 476.7 42.2 290.1 332.3 Specialty Energy 93.9 179.3 273.2 113.6 163.0 276.6 136.1 123.5 259.6 Total Energy 104.5 583.3 687.8 148.6 604.7 753.3 178.3 413.6 591.9 Automotive 24.6 186.1 210.7 11.2 290.9 302.1 8.7 296.4 305.1 Medical 102.6 74.3 176.9 73.2 89.9 163.1 60.3 71.2 131.5 Construction/Mining 35.0 127.9 162.9 34.1 142.3 176.4 24.0 98.2 122.2 Electronics 3.1 156.8 159.9 2.4 197.6 200.0 1.2 213.9 215.1 Food Equipment & Appliances — 71.9 71.9 0.2 158.3 158.5 0.1 153.0 153.1 Other 63.5 165.3 228.8 53.5 155.5 209.0 47.0 101.2 148.2 Total $ 2,120.2 $ 2,053.5 $ 4,173.7 $ 1,641.2 $ 2,194.8 $ 3,836.0 $ 1,155.1 $ 1,644.7 $ 2,799.8 Fiscal Year (in millions) 2023 2022 2021 HPMC AA&S Total HPMC AA&S Total HPMC AA&S Total Primary Geographical Market: United States $ 915.3 $ 1,335.5 $ 2,250.8 $ 742.9 $ 1,475.7 $ 2,218.6 $ 571.3 $ 963.6 $ 1,534.9 China 70.1 263.2 333.3 59.8 292.0 351.8 49.5 320.9 370.4 United Kingdom 224.8 34.3 259.1 165.7 52.0 217.7 136.7 17.2 153.9 Germany 204.2 38.8 243.0 148.4 52.5 200.9 74.1 47.2 121.3 France 172.4 47.0 219.4 125.7 31.5 157.2 48.7 9.8 58.5 Mexico 102.3 25.4 127.7 56.7 23.4 80.1 25.6 37.6 63.2 Rest of World 431.1 309.3 740.4 342.0 267.7 609.7 249.2 248.4 497.6 Total $ 2,120.2 $ 2,053.5 $ 4,173.7 $ 1,641.2 $ 2,194.8 $ 3,836.0 $ 1,155.1 $ 1,644.7 $ 2,799.8 Comparative information of the Company’s major products based on their percentages of sales is included in the following table. HRPF conversion service sales in the AA&S segment are excluded from this presentation. Fiscal Year 2023 2022 2021 HPMC AA&S Total HPMC AA&S Total HPMC AA&S Total Diversified Products: Nickel-based alloys and specialty alloys 44 % 54 % 49 % 49 % 54 % 52 % 43 % 44 % 43 % Precision forgings, castings and components 33 % — % 17 % 34 % — % 15 % 38 % — % 16 % Titanium and titanium-based alloys 22 % 12 % 17 % 17 % 7 % 11 % 19 % 6 % 12 % Precision rolled strip 1 % 19 % 10 % — % 25 % 14 % — % 33 % 19 % Zirconium and related alloys — % 15 % 7 % — % 14 % 8 % — % 17 % 10 % Total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % The Company maintains a backlog of confirmed orders totaling $3.8 billion, $2.9 billion and $2.1 billion at December 31, 2023, January 1, 2023 and January 2, 2022, respectively. Due to the structure of the Company’s LTAs, 70% of this backlog at December 31, 2023 represented booked orders with performance obligations that will be satisfied within the next twelve months. The backlog does not reflect any elements of variable consideration. Accounts Receivable As of December 31, 2023 and January 1, 2023, accounts receivable with customers were $628.2 million and $586.9 million, respectively. The following represents the rollforward of accounts receivable - reserve for doubtful accounts for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022: (in millions) Accounts Receivable - Reserve for Doubtful Accounts Balance as of January 3, 2021 $ 4.3 Expense to increase the reserve 0.3 Write-off of uncollectible accounts (0.8) Balance as of January 2, 2022 3.8 Expense to increase the reserve 4.6 Write-off of uncollectible accounts (0.7) Balance as of January 1, 2023 7.7 Expense to increase the reserve 0.1 Write-off of uncollectible accounts (4.6) Balance as of December 31, 2023 $ 3.2 Contract balances The following represents the rollforward of contract assets and liabilities for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022: (in millions) Contract Assets Fiscal Year Short-term 2023 2022 2021 Balance as of beginning of fiscal year $ 64.1 $ 53.9 $ 38.9 Recognized in current year 84.1 105.0 93.8 Reclassified to accounts receivable (89.5) (88.0) (76.2) Reclassification to/from contract liability 0.4 (6.8) (2.6) Balance as of period end $ 59.1 $ 64.1 $ 53.9 (in millions) Contract Liabilities Fiscal Year Short-term 2023 2022 2021 Balance as of beginning of fiscal year $ 149.1 $ 116.2 $ 111.8 Recognized in current year 133.4 183.1 161.5 Amounts in beginning balance reclassified to revenue (107.9) (99.8) (85.1) Current year amounts reclassified to revenue (40.9) (72.3) (72.9) Divestiture — — (0.8) Other (0.7) 0.7 0.1 Reclassification to/from long-term and contract asset 30.6 21.2 1.6 Balance as of period end $ 163.6 $ 149.1 $ 116.2 Fiscal Year Long-term (a) 2023 2022 2021 Balance as of beginning of fiscal year $ 66.8 $ 84.4 $ 32.0 Recognized in current year 2.8 10.4 56.6 Reclassification to/from short-term (30.2) (28.0) (4.2) Balance as of period end $ 39.4 $ 66.8 $ 84.4 (a) Long-term contract liabilities are included in Other long-term liabilities on the consolidated balance sheets. Contract costs for obtaining and fulfilling a contract were $8.1 million and $7.3 million as of December 31, 2023 and January 1, 2023, respectively, which are reported in other long-term assets on the consolidated balance sheets. Amortization expense for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 of these contract costs was $1.2 million, $1.0 million, and $1.0 million, respectively. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at December 31, 2023 and January 1, 2023 were as follows (in millions): Fiscal Year 2023 2022 Raw materials and supplies $ 234.9 $ 213.6 Work-in-process 973.6 941.1 Finished goods 114.5 111.9 1,323.0 1,266.6 Inventory valuation reserves (75.5) (70.9) Total inventories, net $ 1,247.5 $ 1,195.7 |
Property Plant And Equipment
Property Plant And Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | Property, Plant and Equipment Property, plant and equipment at December 31, 2023 and January 1, 2023 was as follows: Fiscal Year (In millions) 2023 2022 Land $ 32.3 $ 31.5 Buildings 692.7 601.6 Equipment and leasehold improvements 3,024.3 2,895.5 3,749.3 3,528.6 Accumulated depreciation and amortization (2,083.4) (1,979.5) Total property, plant and equipment, net $ 1,665.9 $ 1,549.1 Construction in progress at December 31, 2023 and January 1, 2023 was $305.9 million and $262.1 million, respectively. Capital expenditures on the consolidated statement of cash flows for the fiscal years ended December 31, 2023 and January 1, 2023 exclude $41.9 million and $38.3 million, respectively, of incurred but unpaid capital expenditures that were included in property, plant and equipment and accrued at December 31, 2023 and January 1, 2023, respectively. Depreciation and amortization for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 was as follows: Fiscal Year (In millions) 2023 2022 2021 Depreciation of property, plant and equipment $ 117.4 $ 115.4 $ 117.4 Software and other amortization 28.7 27.5 26.5 Total depreciation and amortization $ 146.1 $ 142.9 $ 143.9 |
Divestitures - (Notes)
Divestitures - (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Divestitures On May 12, 2022, the Company completed the sale of its Sheffield, UK operations, which included facilities for melting and re-melting, machining and bar mill operations, and was part of the Specialty Materials business in the HPMC segment. A $112.2 million loss on sale of the Sheffield operations is reported in loss on asset sales and sales of businesses, net, on the consolidated statement of operations for fiscal year 2022, and is excluded from HPMC segment results. The loss includes $26.8 million related to the UK defined benefit pension plan, of which $26.1 million was reported as a net pension asset but which was in a deficit funding position for UK statutory reporting purposes, and $0.7 million in accumulated other comprehensive loss on the consolidated ATI balance sheet. The loss also includes $20.0 million of cumulative translation adjustment foreign exchange losses since ATI’s acquisition of these operations in 1998. The Company received proceeds, net of transaction costs, of $0.3 million in fiscal year 2022, which is reported as an investing activity on the consolidated statement of cash flows. In fiscal year 2021, the Sheffield operations had external sales of $36 million, with over 80% of its sales to energy markets, primarily oil & gas, and had a net loss before tax of $7 million. The Company completed the sale of the Pico Rivera, CA operations, as part of the strategy to exit standard stainless products, on January 31, 2022. The Company received cash proceeds of $6.2 million on the sale of these assets in fiscal year 2022. The Company recognized a $6.8 million pretax gain on sale, including de-recognizing certain lease liabilities, which is reported in loss on asset sales and sales of businesses, net, on the consolidated statement of operations in fiscal year 2022 and is excluded from AA&S segment results. |
Joint Ventures
Joint Ventures | 12 Months Ended |
Dec. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Ventures | Joint Ventures The financial results of majority-owned joint ventures are consolidated into the Company’s operating results and financial position, with the minority ownership interest recognized in the consolidated statement of 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. Stockholders’ equity includes undistributed earnings of investees accounted for under the equity method of accounting of approximately $0.7 million at December 31, 2023. 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 ® (PRS) stainless products mainly for the electronics and automotive markets located in Asia. Cash and cash equivalents held by STAL as of December 31, 2023 were $75.3 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. Next Gen Alloys LLC funds its development activities through the sale of shares to the two joint venture partners, and in the first quarter of fiscal year 2022 the Company received $0.9 million from sales of noncontrolling interests to its joint venture partner, which is reported as a financing activity on the consolidated statements of cash flows. Cash and cash equivalents held by this joint venture as of December 31, 2023 were $1.0 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 fiscal year 2018 for $17.5 million, of which $12.0 million had been received by ATI through January 2, 2022. ATI received the remaining $5.5 million from Tsingshan in the fourth quarter of fiscal year 2022, which is reported as a financing activity on the consolidated statement of cash flows. 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 imported 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 fiscal year 2020, and the 25% tariff remained in place. Due to repeated tariff exclusion denials, the DRAP facility was idled in an orderly shut down process that was completed in fiscal year 2020. ATI’s share of the A&T Stainless results were losses of $1.8 million and $0.9 million for the fiscal years ended December 31, 2023 and January 2, 2022, respectively, and were income of $9.1 million for the fiscal year ended January 1, 2023, which are included within other income/expense, net, on the consolidated statements of operations. In April 2022, ATI and A&T Stainless entered into a settlement agreement with the United States pursuant to which the United States, without admitting liability, agreed to refund a substantial portion of the Section 232 tariffs previously paid by A&T Stainless. As a result of the settlement agreement, A&T Stainless recorded tariff refunds and accrued interest of approximately $19.7 million, which was recognized as income by the joint venture in fiscal year 2022. ATI’s share of the A&T Stainless results for the fiscal year ended January 1, 2023 included ATI’s $9.9 million share of this tariff refund and accrued interest. AA&S segment results in fiscal years 2023 and 2021 include equity method recognition of A&T Stainless operating losses of $1.8 million and $0.9 million, respectively, and in fiscal year 2022 include equity method recognition of A&T Stainless operating income of $8.2 million. In fiscal year 2022, A&T Stainless reversed $1.8 million of previously-recognized charges for contractual termination benefits as a result of revised estimates and ATI’s share of this credit for termination benefits in fiscal year 2022 was excluded from AA&S segment results. As of December 31, 2023, ATI had net receivables from A&T Stainless for working capital advances and administrative services of $1.5 million, of which $0.5 million was reported in prepaid expenses and other current assets and $1.0 million in other long-term assets on the consolidated balance sheet. As of January 1, 2023, ATI had net receivables from A&T Stainless for working capital advances and administrative services of $3.2 million, of which $0.4 million was reported in prepaid expenses and other current assets and $2.8 million in other long-term assets on the consolidated balance sheet. Uniti: ATI had a 50% interest in the industrial titanium joint venture known as Uniti LLC (Uniti), with the remaining 50% interest held by VSMPO, a Russian producer of titanium, aluminum, and specialty steel products. On March 9, 2022, the Company announced the termination of Uniti, and this joint venture is expected to be fully dissolved in the first quarter of fiscal year 2024. No impairments were recorded as a result of the decision to terminate the Uniti joint venture. Uniti was accounted for under the equity method of accounting. ATI’s share of Uniti’s income was $0.2 million in fiscal year 2023, $4.4 million in fiscal year 2022, and $1.0 million in fiscal year 2021, which is included in AA&S segment’s operating results, and within other income/expense, net, on the consolidated statements of operations. Sales to Uniti, which are included in ATI’s consolidated statements of operations, were $4.9 million in fiscal year 2023, $45.0 million in fiscal year 2022, and $45.8 million in fiscal year 2021. Accounts receivable from Uniti was $4.5 million at January 1, 2023. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | Asset Retirement Obligations The Company maintains reserves where a legal obligation exists to perform an asset retirement activity and the fair value of the liability can be reasonably estimated. These asset retirement obligations (AROs) include liabilities where the timing and (or) method of settlement may be conditional on a future event, that may or may not be within the control of the entity. At December 31, 2023, the Company had recognized AROs of $18.3 million related to landfill closures, decommissioning costs, facility leases and conditional AROs associated with manufacturing activities using what may be characterized as potentially hazardous materials. Estimates of AROs are evaluated annually in the fourth quarter, or more frequently if material new information becomes known. Accounting for asset retirement obligations requires significant estimation and in certain cases, the Company has determined that an ARO exists, but the amount of the obligation is not reasonably estimable. The Company may determine that additional AROs are required to be recognized as new information becomes available. Changes in asset retirement obligations for the years ended December 31, 2023 and January 1, 2023 were as follows: Fiscal Year (In millions) 2023 2022 Balance at beginning of fiscal year $ 17.8 $ 19.0 Accretion expense 0.7 0.8 Payments (0.2) (2.0) Balance at end of fiscal year $ 18.3 $ 17.8 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 12 Months Ended |
Dec. 31, 2023 | |
Additional Financial Information Disclosure [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Cash and cash equivalents at December 31, 2023 and January 1, 2023 were as follows: Fiscal Year (In millions) 2023 2022 Cash $ 329.8 $ 164.9 Other short-term investments 414.1 419.1 Total cash and cash equivalents $ 743.9 $ 584.0 Other current liabilities included salaries, wages and other employee-related liabilities of $102.3 million and $100.8 million at December 31, 2023 and January 1, 2023, respectively, and accrued interest of $23.7 million and $11.8 million at December 31, 2023 and January 1, 2023, respectively. Other income (expense) for the fiscal years ended December 31, 2023, January 1, 2023, and January 2, 2022 was as follows: Fiscal Year (in millions) 2023 2022 2021 Rent, royalty income and other income $ 2.6 $ 2.3 $ 1.1 Gains from disposal of property, plant and equipment, net 0.3 0.2 2.9 Net equity income (loss) on joint ventures (See Note 7) (1.6) 12.6 0.1 Gain on sales of businesses, net (See Note 6) — — 13.8 Joint venture restructuring credit (charge) (See Note 7) — 0.9 — Litigation settlement (See Note 21) — (28.5) — Other — — 0.3 Total other income (expense), net $ 1.3 $ (12.5) $ 18.2 Supplier Financing consolidated balance sheets |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at December 31, 2023 and January 1, 2023 was as follows: Fiscal Year (In millions) 2023 2022 ATI Inc. 7.25% Notes due 2030 $ 425.0 $ — ATI Inc. 5.875% Senior Notes due 2027 350.0 350.0 ATI Inc. 5.125% Senior Notes due 2031 350.0 350.0 ATI Inc. 4.875% Notes due 2029 325.0 325.0 ATI Inc. 3.5% Convertible Senior Notes due 2025 291.4 291.4 Allegheny Ludlum 6.95% Debentures due 2025 (a) 150.0 150.0 ABL Term Loan 200.0 200.0 U.S. revolving credit facility — — Foreign credit agreements 5.0 19.4 Finance leases and other 102.8 79.4 Debt issuance costs (19.6) (17.2) Total short-term and long-term debt 2,179.6 1,748.0 Short-term debt and current portion of long-term debt 31.9 41.7 Total long-term debt $ 2,147.7 $ 1,706.3 (a) The payment obligations of these debentures issued by Allegheny Ludlum, LLC are fully and unconditionally guaranteed by ATI. Interest expense was $105.8 million in fiscal year 2023, $92.1 million in fiscal year 2022, and $97.6 million in fiscal year 2021. Interest expense was reduced by $13.5 million, $5.1 million, and $4.3 million, in fiscal years 2023, 2022, and 2021, respectively, from interest capitalization on capital projects. Interest and commitment fees paid were $114.7 million in fiscal year 2023, $92.8 million in fiscal year 2022, and $97.5 million in fiscal year 2021. Net interest expense includes interest income of $13.0 million in fiscal year 2023, $4.7 million in fiscal year 2022, and $0.7 million in fiscal year 2021. Scheduled principal payments during the next five fiscal years are $31.9 million in 2024, $465.3 million in 2025, $18.5 million in 2026, $565.3 million in 2027, and $9.6 million in 2028. See Note 11, Leases, for the portion of these scheduled principal payments that are related to finance leases. Debt Extinguishment Charge In October 2021, ATI recognized a $65.5 million debt extinguishment charge on the redemption of its 5.875% Senior Notes due 2023 (2023 Notes), which included a $64.5 million cash make-whole payment related to the early extinguishment of the 2023 Notes as required by the applicable indenture, and a $1.0 million charge for deferred debt issue costs, as further discussed below. 2030 Notes In August 2023, ATI issued $425 million aggregate principal amount of 7.25% Senior Notes due 2030 (2030 Notes). Interest on the 2030 Notes is payable semi-annually in arrears at a rate of 7.25% per year. The 2030 Notes will mature on August 15, 2030. Net proceeds were $418.8 million from this issuance, of which $222 million was used to fund ATI’s U.S. qualified defined benefit pension plan in order to facilitate a pension derisking strategy (see Note 14), and the remaining proceeds were used for liquidity and general corporate purposes. Underwriting fees and other third-party expenses for the issuance of the 2030 Notes were $6.2 million, and are being amortized to interest expense over the 7-year term of the 2030 Notes. The 2030 Notes are unsecured and unsubordinated obligations of the Company and equally ranked with all of its existing and future senior unsecured debt. The 2030 Notes restrict the Company’s ability to create certain liens, to enter into sale leaseback transactions, guarantee indebtedness and to consolidate or merge all, or substantially all, of its assets. The Company has the option to redeem the 2030 Notes, as a whole or in part, at any time or from time to time, on at least 15 days, but not more than 60 days, prior notice to the holders of the Notes at redemption prices specified in the 2030 Notes. The 2030 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the 2030 Notes) at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased, plus any accrued and unpaid interest on the 2030 Notes repurchased. 2029 and 2031 Notes On September 14, 2021, ATI issued $325 million aggregate principal amount of 4.875% Senior Notes due 2029 (2029 Notes) and $350 million aggregate principal amount of 5.125% Senior Notes due 2031 (2031 Notes). Interest on the 2029 Notes is payable semi-annually in arrears at a rate of 4.875% per year, and the 2029 Notes will mature on October 1, 2029. Interest on the 2031 Notes is payable semi-annually in arrears at a rate of 5.125% per year, and the 2031 Notes will mature on October 1, 2031. Total combined net proceeds of $665.7 million from both of these issuances were primarily used to fund the full redemption of the $500 million aggregate principal amount outstanding of the 2023 Notes on October 14, 2021, including a make-whole payment and accrued interest, resulting in a $65.5 million debt extinguishment charge. Underwriting fees and other third-party expenses for the issuance of the 2029 and 2031 Notes were $4.7 million each, and are being amortized to interest expense over the 8-year and 10-year terms of the 2029 and 2031 Notes, respectively. The 2029 and 2031 Notes are unsecured and unsubordinated obligations of the Company and equally ranked with all of its existing and future senior unsecured debt. The 2029 and 2031 Notes restrict the Company’s ability to create certain liens, to enter into sale leaseback transactions, guarantee indebtedness and to consolidate or merge all, or substantially all, of its assets. The Company has the option to redeem the 2029 and 2031 Notes, as a whole or in part, at any time or from time to time, on at least 15 days, but not more than 60 days, prior notice to the holders of the Notes at redemption prices specified in the 2029 and 2031 Notes. The 2029 and 2031 Notes are subject to repurchase upon the occurrence of a change in control repurchase event (as defined in the 2029 and 2031 Notes) at a repurchase price in cash equal to 101% of the aggregate principal amount of the Notes repurchased, plus any accrued and unpaid interest on the 2029 or 2031 Notes repurchased, as applicable. 2025 Convertible Notes As of December 31, 2023, the Company had $291.4 million aggregate principal amount of 3.5% Convertible Senior Notes due 2025 (2025 Convertible Notes) outstanding which mature on June 15, 2025. As of December 31, 2023 and January 1, 2023, the fair value of the 2025 Convertible Notes was $864 million and $590 million, respectively, based on the quoted market price, which is classified in Level 1 of the fair value hierarchy. 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 fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022. Remaining deferred issuance costs were $2.9 million and $4.8 million at December 31, 2023 and January 1, 2023, respectively. Interest expense on the 2025 Convertible Notes was as follows: Fiscal Year (in millions) 2023 2022 2021 Contractual coupon rate $ 10.2 $ 10.2 $ 10.2 Amortization of debt issuance costs 1.9 1.8 1.7 Total interest expense $ 12.1 $ 12.0 $ 11.9 Currently, 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. Holders of the 2025 Convertible Notes may require ATI to repurchase their 2025 Convertible Notes upon the occurrence of certain events that constitute a fundamental change under the indenture governing the 2025 Convertible Notes at a purchase price equal to 100% of the principal amount thereof, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. In connection with certain corporate events or if ATI issues a notice of redemption, it will, under certain circumstances, increase the conversion rate for holders who elect to convert their 2025 Convertible Notes in connection with such corporate event or during the relevant redemption period. In connection with the pricing of the 2025 Convertible Notes, ATI entered into privately negotiated capped call transactions with certain of the initial purchasers or their respective affiliates. 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 In fiscal year 2022, $82.5 million of the 2022 Convertible Senior Notes were converted into 5.7 million shares of ATI common stock, with the remaining $1.7 million of outstanding principal balance paid in cash for notes that were not converted at the July 1, 2022 maturity date. The conversion rate for the 2022 Convertible Notes was 69.2042 shares of ATI common stock per $1,000 principal amount of the 2022 Convertible Notes, equivalent to a conversion price of $14.45 per share. Interest on the 2022 Convertible Notes at the 4.75% cash coupon rate was payable semi-annually in arrears on each January 1 and July 1. Including amortization of deferred issuance costs, the effective interest rate was 5.4% for the fiscal years ended January 1, 2023 and January 2, 2022. Interest expense on the 2022 Convertible Notes was as follows: Fiscal Year (in millions) 2022 2021 Contractual coupon rate $ 2.0 $ 4.0 Amortization of debt issuance costs 0.3 0.5 Total interest expense $ 2.3 $ 4.5 2023 Notes The 5.875% stated interest rate payable on the 2023 Notes was subject to adjustment in the event of changes in the credit ratings on the 2023 Notes by either Moody’s or Standard & Poor’s. Each notch of credit rating downgrade from the credit ratings in effect when the 2023 Notes were issued in July 2013 increased interest expense by 0.25% on the 2023 Notes, up to a maximum 4 notches by each of the two rating agencies, or a total 2.0% potential interest rate change up to 7.875%. The annual interest rate on the 2023 Notes was at the maximum 7.875% from February 2016 until their redemption in October 2021 as discussed above. Credit Agreements The Company has an Asset Based Lending (ABL) Credit Facility, which is collateralized by the accounts receivable and inventory of the Company’s operations. The ABL facility also provides the Company with the option of including certain machinery and equipment as additional collateral for purposes of determining availability under the facility. The ABL facility, which matures in September 2027, includes a $600 million revolving credit facility, a letter of credit sub-facility of up to $200 million, a $200 million term loan (ABL Term Loan), and a swing loan facility of up to $60 million. The ABL Term Loan has an interest rate of 2.0% above adjusted Secured Overnight Financing Rate (SOFR) 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 $300 million 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 ABL 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 SOFR-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) 10% of the then applicable maximum loan amount under the revolving credit portion of the ABL and the outstanding ABL Term Loan balance, or (ii) $60.0 million. The Company was in compliance with the fixed charge coverage ratio as of December 31, 2023. Additionally, the Company must demonstrate minimum liquidity specified by the facility during the 90-day period immediately preceding the stated maturity date of its 3.5% Convertible Senior Notes due 2025 and the 6.95% Debentures due 2025 issued by the Company’s wholly owned subsidiary, Allegheny Ludlum LLC. 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) $120 million or (b) 20% of the sum of the maximum loan amount under the revolving credit portion of the ABL and the outstanding ABL Term Loan balance. On September 9, 2022, the Company amended and restated the ABL and costs associated with entering into this amendment were $2.4 million, and are being amortized to interest expense over the term of the facility ending September 2027, along with $1.7 million of unamortized deferred costs previously recorded for the ABL. As of December 31, 2023, there were no outstanding borrowings under the revolving portion of the ABL, and $31.7 million was utilized to support the issuance of letters of credit. There were average revolving credit borrowings of $13 million bearing an average annual interest rate of 6.5% under the ABL during fiscal year 2023. There were no revolving credit borrowings under the ABL during fiscal year 2022. The Company also has foreign credit facilities, primarily in China, that total $58 million based on December 31, 2023 foreign exchange rates, under which $5.0 million and $19.4 million was drawn as of December 31, 2023 and January 1, 2023, respectively. The Company has no off-balance sheet financing relationships as defined in Item 303(a)(4) of SEC Regulation S-K, with variable interest entities, structured finance entities, or any other unconsolidated entities. At December 31, 2023, the Company had not guaranteed any third-party indebtedness. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The following represents the components of lease cost and other information for both operating and financing leases for the fiscal years 2023, 2022 and 2021: ($ in millions) Fiscal Year 2023 2022 2021 Lease Cost Finance Lease Cost: Amortization of right of use asset $ 10.9 $ 8.9 $ 7.1 Interest on lease liabilities 4.6 4.1 3.1 Operating lease cost 17.6 16.4 22.7 Short-term lease cost 4.5 2.9 1.6 Variable lease cost 1.0 1.0 0.9 Sublease income (0.4) — (0.3) Total lease cost $ 38.2 $ 33.3 $ 35.1 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 4.6 $ 4.1 $ 3.0 Operating cash flows from operating leases $ 16.8 $ 17.4 $ 20.0 Financing cash flows from finance leases $ 24.9 $ 20.9 $ 14.3 Right of use assets obtained in exchange for new finance lease liabilities $ 54.6 $ 15.3 $ 58.9 Right of use assets obtained in exchange for new operating lease liabilities $ 25.8 $ 18.0 $ 4.8 Weighted average remaining lease term - finance leases 4 years 4 years 5 years Weighted average remaining lease term - operating leases 7 years 6 years 5 years Weighted average discount rate - finance leases 5.4 % 5.6 % 5.2 % Weighted average discount rate - operating leases 7.1 % 6.8 % 6.5 % The following table reconciles future minimum undiscounted rental commitments for operating leases to the operating lease liabilities recorded on the consolidated balance sheet as of December 31, 2023 (in millions): Fiscal Year December 31, 2023 2024 $ 17.0 2025 14.4 2026 13.2 2027 10.4 2028 8.2 2029 and thereafter 24.9 Total undiscounted lease payments $ 88.1 Present value adjustment (19.4) Operating lease liabilities $ 68.7 The following table reconciles future minimum undiscounted rental commitments for finance leases to the finance lease liabilities recorded on the consolidated balance sheet as of December 31, 2023 (in millions): Fiscal Year December 31, 2023 2024 $ 32.4 2025 27.8 2026 20.8 2027 16.9 2028 10.5 2029 and thereafter 9.1 Total undiscounted lease payments $ 117.5 Present value adjustment (15.3) Finance lease liabilities $ 102.2 |
Leases | Leases The following represents the components of lease cost and other information for both operating and financing leases for the fiscal years 2023, 2022 and 2021: ($ in millions) Fiscal Year 2023 2022 2021 Lease Cost Finance Lease Cost: Amortization of right of use asset $ 10.9 $ 8.9 $ 7.1 Interest on lease liabilities 4.6 4.1 3.1 Operating lease cost 17.6 16.4 22.7 Short-term lease cost 4.5 2.9 1.6 Variable lease cost 1.0 1.0 0.9 Sublease income (0.4) — (0.3) Total lease cost $ 38.2 $ 33.3 $ 35.1 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 4.6 $ 4.1 $ 3.0 Operating cash flows from operating leases $ 16.8 $ 17.4 $ 20.0 Financing cash flows from finance leases $ 24.9 $ 20.9 $ 14.3 Right of use assets obtained in exchange for new finance lease liabilities $ 54.6 $ 15.3 $ 58.9 Right of use assets obtained in exchange for new operating lease liabilities $ 25.8 $ 18.0 $ 4.8 Weighted average remaining lease term - finance leases 4 years 4 years 5 years Weighted average remaining lease term - operating leases 7 years 6 years 5 years Weighted average discount rate - finance leases 5.4 % 5.6 % 5.2 % Weighted average discount rate - operating leases 7.1 % 6.8 % 6.5 % The following table reconciles future minimum undiscounted rental commitments for operating leases to the operating lease liabilities recorded on the consolidated balance sheet as of December 31, 2023 (in millions): Fiscal Year December 31, 2023 2024 $ 17.0 2025 14.4 2026 13.2 2027 10.4 2028 8.2 2029 and thereafter 24.9 Total undiscounted lease payments $ 88.1 Present value adjustment (19.4) Operating lease liabilities $ 68.7 The following table reconciles future minimum undiscounted rental commitments for finance leases to the finance lease liabilities recorded on the consolidated balance sheet as of December 31, 2023 (in millions): Fiscal Year December 31, 2023 2024 $ 32.4 2025 27.8 2026 20.8 2027 16.9 2028 10.5 2029 and thereafter 9.1 Total undiscounted lease payments $ 117.5 Present value adjustment (15.3) Finance lease liabilities $ 102.2 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023, 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 4 million pounds of nickel with hedge dates through fiscal year 2024. The aggregate notional amount hedged is approximately 6% of a single year’s estimated nickel raw material purchase requirements. These derivative instruments are used to hedge the variability of a selling price that is based on the London Metals Exchange (LME) index for nickel, as well as to hedge the variability of the purchase cost of nickel based on this LME index. Any gain or loss associated with these hedging arrangements is included in sales or cost of sales, depending on whether the underlying risk being hedged was the variable selling price or the variable raw material cost, respectively. At December 31, 2023, the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges. At December 31, 2023, the company hedged approximately 75% of the Company’s annual forecasted domestic requirements for natural gas for fiscal year 2024 and approximately 35% for fiscal year 2025. 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. 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 December 31, 2023, 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 that matures in June 2024 which converts a portion of the ABL Term Loan to a 4.21% fixed rate. 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 ABL Term Loan borrowings. The ineffective portion at hedge inception, determined from the fair value of the swap immediately prior to amendment in July 2019, was amortized to interest expense over the initial ABL 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 were 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) December 31, January 1, 2023 Asset derivatives Balance sheet location Derivatives designated as hedging instruments: Interest rate swap Prepaid expenses and other current assets $ 0.7 $ 1.4 Foreign exchange contracts Prepaid expenses and other current assets 0.1 — Natural gas contracts Prepaid expenses and other current assets — 2.4 Nickel and other raw material contracts Prepaid expenses and other current assets — 12.5 Interest rate swap Other assets — 0.5 Natural gas contracts Other assets 0.1 0.7 Nickel and other raw material contracts Other assets — 0.5 Total derivatives designated as hedging instruments 0.9 18.0 Total asset derivatives $ 0.9 $ 18.0 Liability derivatives Balance sheet location Derivatives designated as hedging instruments: Natural gas contracts Other current liabilities $ 5.6 $ 2.0 Nickel and other raw material contracts Other current liabilities 7.5 2.1 Natural gas contracts Other long-term liabilities 1.1 0.5 Total derivatives designated as hedging instruments 14.2 4.6 Total liability derivatives $ 14.2 $ 4.6 Assuming market prices remain constant with those at December 31, 2023, a pre-tax loss of $12.3 million is expected to be recognized over the next 12 months. 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. There were no outstanding fair value hedges as of December 31, 2023 or January 1, 2023. The cash flow impact for all derivative financial instruments is reported in cash flows provided by operating activities on the consolidated statement of cash flows. 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. Activity with regard to derivatives designated as cash flow hedges for the fiscal years ended December 31, 2023 and January 1, 2023 were as follows (in millions): Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Amount of Gain (Loss) Fiscal Year 2023 2022 2023 2022 Nickel and other raw material contracts $ (11.0) $ 27.1 $ 2.5 $ 20.5 Natural gas contracts (11.3) 10.9 (5.7) 11.5 Foreign exchange contracts 0.2 0.7 0.2 0.7 Interest rate swap 0.3 2.3 1.1 (0.1) Total $ (21.8) $ 41.0 $ (1.9) $ 32.6 (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 sales and 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 ABL 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 | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The estimated fair value of financial instruments at December 31, 2023 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Total Quoted Prices in Significant Cash and cash equivalents $ 743.9 $ 743.9 $ 743.9 $ — Derivative financial instruments: Assets 0.9 0.9 — 0.9 Liabilities 14.2 14.2 — 14.2 Debt (a) 2,199.2 2,746.7 2,438.9 307.8 The estimated fair value of financial instruments at January 1, 2023 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Total Quoted Prices in Significant Cash and cash equivalents $ 584.0 $ 584.0 $ 584.0 $ — Derivative financial instruments: Assets 18.0 18.0 — 18.0 Liabilities 4.6 4.6 — 4.6 Debt (a) 1,765.2 1,964.5 1,665.7 298.8 (a) The total carrying amount for debt excludes debt issuance costs related to the recognized debt liability which is presented in the consolidated balance sheets as a direct reduction from the carrying amount of the debt liability. In accordance with accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards established three levels of a fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash and cash equivalents: Fair values were 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 2025 Convertible Notes, the Allegheny Ludlum 6.95% Debentures due 2025, the 2027 Notes, the 2029 Notes, 2030 notes (after issuance in the third quarter of fiscal year 2023) and the 2031 Notes were determined using Level 1 information. The fair values of other short-term and long-term debt were determined using Level 2 information. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2023 | |
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 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. In the fourth quarter of fiscal year 2023, the Company voluntarily changed the method of accounting for recognizing actuarial gains and losses for the defined benefit pension plans. See Note 1 for amounts recognized related to this change. The information within this Note has been revised to reflect the change in accounting principle for current and prior periods. ATI instituted several initiatives over a multi-year period as part of its retirement benefit liability derisking strategy. Future benefit accruals for all participants in the U.S. defined benefit pension plans other than those subject to a CBA were frozen at the end of fiscal year 2014, and subsequently CBAs were negotiated to close these plans to new entrants. As a result of these actions, the Company has completely closed all defined benefit pension plans to new entrants, and has substantially limited the number of employees still accruing benefit service to less than 800 participants. Additionally, all of ATI’s remaining collectively-bargained, capped defined benefit retiree health care plans are closed to new entrants. These liability management actions have transitioned ATI’s retirement benefit and other postretirement benefit programs largely to a defined contribution structure. From fiscal years 2013 to 2022, five annuity buyouts of retired participants and two voluntary cash out programs of deferred participants during this period helped to reduce the total participants in ATI’s U.S. qualified defined benefit pension plans by more than 60%. During the fourth quarter of fiscal year 2023, the Company purchased group annuity contracts from an insurer covering approximately 85% of the Company’s U.S. qualified defined benefit pension plan obligations. Under these contracts, the Company transferred the pension obligations and associated assets for approximately 8,200 plan participants to the selected insurance company. To facilitate this pension derisking strategy, the Company completed a voluntary cash out for term vested employees and contributed $222 million to its pension plan in the third quarter of fiscal year 2023, to fully fund remaining pension liabilities ahead of this annuity transaction. After these actions, the Company’s U.S. qualified defined benefit pension plan includes approximately 1,980 participants. Costs for defined contribution retirement plans were $38.8 million in fiscal year 2023, $31.1 million in fiscal year 2022, and $20.4 million in fiscal year 2021. Company contributions to these defined contribution plans are funded with cash. In fiscal year 2022, the Company implemented certain plan design changes to the ATI 401(k) Savings Plan which decreased the qualified non-elective contribution percentage and increased the Company match contribution percentage. Other postretirement benefit costs for a defined contribution plan under the terms of a CBA were $1.0 million for both the fiscal years ended December 31, 2023 and January 1, 2023. There were no costs for this plan in fiscal year 2021. The components of pension and other postretirement benefit expense for the Company’s defined benefit plans included the following: Pension Benefits Other Postretirement Benefits Fiscal Year (In millions) 2023 2022 Revised 2021 Revised 2023 2022 2021 Service cost—benefits earned during the year $ 6.0 $ 11.9 $ 15.1 $ 0.6 $ 1.1 $ 1.5 Interest cost on benefits earned in prior years 79.7 69.7 68.4 10.9 7.7 8.0 Expected return on plan assets (84.8) (128.2) (136.4) — — — Amortization of prior service cost (credit) 0.3 0.4 0.6 (0.9) (0.9) (2.4) Amortization of net actuarial loss — — — 6.0 13.2 13.9 Recognized actuarial loss (gain)- mark to market 26.8 (100.3) (147.2) — — — Settlement loss (gain) 41.7 0.7 — — — (64.9) Total retirement benefit expense (income) $ 69.7 $ (145.8) $ (199.5) $ 16.6 $ 21.1 $ (43.9) In the fourth quarter of fiscal year 2023, the Company voluntarily changed the method of accounting for recognizing actuarial gains and losses for its defined benefit pension plans. Under the accounting method change, remeasurement of projected benefit obligation and plan assets for defined benefit pension plans are immediately recognized in earnings through net periodic pension benefit cost from remeasurements annually in the fourth quarter and on an interim basis due to triggering events that require remeasurement. This resulted in an actuarial loss of $26.8 million in fiscal year 2023 and actuarial gains of $100.3 million and $147.2 million in fiscal years 2022 and 2021, respectively, within nonoperating retirement benefit income/expense on the consolidated statements of operations. On October 17, 2023, the Company completed a voluntary cash out for term vested employees and a large annuity buyout related to approximately 8,200 U.S. qualified defined benefit pension plan participants. As a result of the annuity buyout, ATI recognized a $41.7 million pretax settlement loss, which is recorded in nonoperating retirement benefit income/expense on the consolidated statement of operations. On May 12, 2022, the Company completed the sale of its Sheffield, UK operations (see Note 6). As a result of this sale, ATI recognized a $0.7 million settlement loss, which is recorded in loss on asset sales and sales of businesses, net, on the consolidated statement of operations, related to the amount in accumulated other comprehensive loss for the UK defined benefit pension plan that transferred as part of the sale. Pension liabilities and assets for this UK defined benefit pension plan that were removed as a result of this divestiture are included below in the tables of changes in benefit obligations and changes in plan assets, respectively. On July 14, 2021, ATI announced that a new four-year labor agreement with the USW was ratified (see Note 1 for further discussion). As a result of this new CBA, ATI recognized a $64.9 million pretax settlement gain, which is recorded in nonoperating retirement benefit income/expense on the consolidated statement of operations, related to a plan termination that eliminated certain postretirement medical benefit liabilities, comprised of $43.0 million of long-term postretirement benefit liabilities as of July 2021 and $21.9 million of amounts recorded in accumulated other comprehensive income at that date. Discrete tax effects related to this event were $15.5 million of income tax expense (see Note 17 for further discussion). Actuarial assumptions used to develop the components of defined benefit pension expense and other postretirement benefit expense were as follows: Pension Benefits Other Postretirement Benefits Fiscal Year 2023 2022 2021 2023 2022 2021 Discount rate (a) 5.55% - 6.40% 2.95 % 2.60 % 5.45 % 2.80 % 2.45 % Rate of increase in future compensation levels 3.00% 2.00% - 3.00% 1.00 % — — — Weighted average expected long-term rate of return on assets (a) 5.80% - 6.57% 6.43 % 6.71 % — % — % — % (a) Pension expense for fiscal year 2023 was initially measured at a 5.55% discount rate and 6.57% weighted average expected long-term rate of return on assets. The U.S. qualified pension plans were remeasured using a 6.40% weighted average discount rate and 5.80% weighted average expected long-term rate of return on assets as of October 17, 2023, following the large annuity buyout of retirees. Actuarial assumptions used for the valuation of defined benefit pension and other postretirement benefit obligations at the end of the respective periods were as follows: Pension Benefits Other Postretirement Benefits Fiscal Year 2023 2022 2023 2022 Discount rate 5.60 % 5.55 % 5.40 % 5.45 % Rate of increase in future compensation levels 3.00 % 3.00 % — — A reconciliation of the funded status for the Company’s defined benefit pension and other postretirement benefit plans at December 31, 2023 and January 1, 2023 was as follows: Pension Benefits Other Postretirement Benefits Fiscal Year (In millions) 2023 2022 2023 2022 Change in benefit obligations: Benefit obligation at beginning of fiscal year $ 1,818.3 $ 2,517.0 $ 212.7 $ 287.3 Service cost 6.0 11.9 0.6 1.1 Interest cost 79.7 69.7 10.9 7.7 Benefits paid (153.9) (155.6) (26.4) (29.7) Subsidy received — — — 0.3 Divestiture — (75.8) — — Effect of currency rates — (3.2) — — Net actuarial (gains) losses – discount rate change (95.8) (556.8) 0.7 (48.2) – other (5.3) 11.1 3.1 (5.8) Plan settlement (1,350.6) — — — Benefit obligation at end of fiscal year $ 298.4 $ 1,818.3 $ 201.6 $ 212.7 Actuarial effects of changes in discount rates are separately identified in the preceding table. Pension Benefits Other Postretirement Benefits Fiscal Year (In millions) 2023 2022 2023 2022 Change in plan assets: Fair value of plan assets at beginning of fiscal year $ 1,599.5 $ 2,120.9 $ — $ — Actual returns on plan assets and plan expenses (83.9) (317.0) — — Employer contributions 278.0 57.4 — — Divestiture — (101.8) — — Effect of currency rates — (4.4) — — Plan settlement (1,350.6) — — — Benefits paid (153.9) (155.6) — — Fair value of plan assets at end of fiscal year $ 289.1 $ 1,599.5 $ — $ — On October 17, 2023, the Company completed a voluntary cash out for term vested employees and a large annuity buyout related to approximately 8,200 U.S. qualified defined benefit pension plan participants. These actions resulted in a reduction in the benefit obligations and plan assets of $1.35 billion. Assets (liabilities) recognized in the consolidated balance sheets: Pension Benefits Other Postretirement Benefits Fiscal Year 2023 2022 2023 2022 Current assets $ 2.4 $ — $ — $ — Noncurrent assets 33.6 12.5 — — Current liabilities (5.6) (5.7) (26.4) (27.8) Noncurrent liabilities (39.7) (225.6) (175.2) (184.9) Total amount recognized $ (9.3) $ (218.8) $ (201.6) $ (212.7) Changes to accumulated other comprehensive loss related to pension and other postretirement benefit plans in fiscal years 2023 and 2022 were as follows: Pension Benefits Other Postretirement Benefits Fiscal Year (In millions) 2023 2022 Revised 2023 2022 Beginning of year accumulated other comprehensive loss $ (8.8) $ (9.9) $ (55.8) $ (121.2) Amortization of net actuarial loss — — 6.0 13.2 Amortization of prior service cost (credit) 0.3 0.4 (0.9) (0.9) Settlement loss 1.1 0.7 — — Remeasurements — — (3.8) 53.1 End of year accumulated other comprehensive loss $ (7.4) $ (8.8) $ (54.5) $ (55.8) Net change in accumulated other comprehensive loss $ 1.4 $ 1.1 $ 1.3 $ 65.4 Amounts included in accumulated other comprehensive loss at December 31, 2023 and January 1, 2023 were as follows: Pension Benefits Other Postretirement Benefits Fiscal Year (In millions) 2023 2022 Revised 2023 2022 Prior service (cost) credit $ (7.4) $ (8.8) $ 1.7 $ 2.5 Net actuarial loss — — (56.2) (58.3) Accumulated other comprehensive loss (7.4) (8.8) (54.5) (55.8) Deferred tax effect 1.9 2.1 27.5 27.8 Accumulated other comprehensive loss, net of tax $ (5.5) $ (6.7) $ (27.0) $ (28.0) Amounts in accumulated other comprehensive loss presented above do not include any effects of deferred tax asset valuation allowances. See Note 15 for further discussion on deferred tax asset valuation allowances. Retirement benefit expense for fiscal year 2024 for defined benefit plans is estimated to be approximately $21 million, comprised of $6 million for pension expense and $15 million of expense for other postretirement benefits. For other postretirement benefits, the net actuarial loss is recognized in the consolidated statement of operations using a corridor method. For both pension and other postretirement benefits, prior service cost (credit) amortization is recognized in level amounts over the expected service of the active membership as of the amendment effective date. Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost in fiscal year 2024 are: (In millions) Pension Other Total Amortization of prior service cost (credit) $ 0.4 $ (0.9) $ (0.5) Amortization of net actuarial loss — 5.3 5.3 Amortization of accumulated other comprehensive loss $ 0.4 $ 4.4 $ 4.8 The accumulated benefit obligation for all defined benefit pension plans was $283.1 million and $1,716.8 million at December 31, 2023 and January 1, 2023, respectively. Additional information for pension plans with accumulated benefit obligations and projected benefit obligations in excess of plan assets: Pension Benefits Fiscal Year (In millions) 2023 2022 Projected benefit obligation $ 45.3 $ 1,727.3 Accumulated benefit obligation $ 45.3 $ 1,716.8 Fair value of plan assets $ — $ 1,496.0 Cash contributions to ATI’s U.S. qualified defined benefit pension plans were $272 million in fiscal year 2023, $50 million in fiscal year 2022 and $67 million in fiscal year 2021. The Company funds the U.S. defined benefit pension plans in accordance with the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code. The Company has no required cash contributions to its U.S. qualified defined benefit pension plan in fiscal year 2024. In addition, for fiscal year 2024, the Company expects approximately $6 million of payments for U.S. nonqualified pension benefits. The following table summarizes expected benefit payments from the Company’s various pension and other postretirement defined benefit plans through fiscal year 2033, and also includes estimated Medicare Part D subsidies projected to be received during this period based on currently available information. Pension benefit payments for the U.S. qualified defined benefit pension plan are made from pension plan assets. (In millions) Fiscal Year Pension Other Medicare Part 2024 $ 12.1 $ 26.5 $ — 2025 13.3 24.2 — 2026 14.6 22.3 — 2027 16.0 20.6 — 2028 17.0 18.9 — 2029-2033 96.7 71.6 — The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for health care plans was 7.2% in 2024 and is assumed to gradually decrease to 4.0% in the year 2048 and remain at that level thereafter. Assumed health care cost trend rates can have a significant effect on the amounts reported for the health care plans, however, the Company’s contributions for most of its retiree health plans are capped based on a fixed premium amount, which limits the impact of future health care cost increases. The fair values of the Company’s pension plan assets are determined using net asset value (NAV) as a practical expedient, or by information categorized in the fair value hierarchy level based on the inputs used to determine fair value, as further discussed in Note 13. The fair values at December 31, 2023 were as follows: (In millions) Quoted Prices in Significant Significant Asset category Total NAV (Level 1) (Level 2) (Level 3) Equity securities: U.S. equities $ 0.1 $ — $ 0.1 $ — $ — International equities 0.1 — 0.1 — — Fixed income and cash equivalents 130.3 8.3 122.0 — — Private equity 60.8 60.8 — — — Alternative investments- hedge funds, real estate and other 97.8 97.8 — — — Total assets $ 289.1 $ 166.9 $ 122.2 $ — $ — The fair values of the Company’s pension plan assets at January 1, 2023 were as follows: (In millions) Quoted Prices in Significant Significant Asset category Total NAV (Level 1) (Level 2) (Level 3) Equity securities: U.S. equities $ 363.1 $ 202.6 $ 160.5 $ — $ — International equities 299.7 284.8 14.9 — — Fixed income and cash equivalents 455.4 330.8 13.8 110.8 — Private equity 224.3 224.3 — — — Alternative investments- hedge funds, real estate and other 257.0 257.0 — — — Total assets $ 1,599.5 $ 1,299.5 $ 189.2 $ 110.8 $ — A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Investments in U.S. and International equities, and Fixed Income are predominantly held in common/collective trust funds and registered investment companies. Some of these investments are publicly traded securities and are classified as Level 1, while others are public investment vehicles valued using the NAV provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. These investments are not classified in the fair value hierarchy. In addition, some fixed income instruments are investments in debt instruments that are valued using external pricing vendors and are classified within Level 2 of the fair value hierarchy. Private equity investments include both Direct Funds and Fund-of-Funds. Direct Funds are investments in Limited Partnership (LP) interests. Fund-of-Funds are investments in private equity funds that invest in other private equity funds or LPs. Fair value of these investments is determined utilizing net asset values, and are not classified in the fair value hierarchy. Alternative investments include hedge fund and real estate investments that are made as a limited partner in funds managed by a general partner. Fair value of these investments is determined utilizing net asset values, and are not classified in the fair value hierarchy. For certain investments which have formal financial valuations reported on a one-quarter lag, fair value is determined utilizing net asset values adjusted for subsequent cash flows, estimated financial performance and other significant events. For fiscal year 2024, the expected long-term rate of return on defined benefit pension assets is 5.80%. In developing expected long-term rate of return assumptions, the Company evaluated input from its third party pension plan asset managers and actuaries, including reviews of their asset class return expectations and long-term inflation assumptions. An expected long-term rate of return is based on expected asset allocations within ranges for each investment category and projected annual compound returns. The Company’s actual, weighted average returns on pension assets for the last five fiscal years have been 2.0% for 2023, (14.5)% for 2022, 12.4% for 2021, 15.2% for 2020, and 15.1% for 2019. The ATI Pension Plan (the Plan), the Company’s remaining U.S. qualified defined benefit pension plan, continues to invest in a diversified portfolio consisting of an array of asset classes that attempts to maintain the Plan’s funded status while maximizing returns and minimizing volatility. These asset classes may include U.S. domestic equities, non-U.S. developed market equities, emerging market equities, hedge funds, private equity, traditional fixed income consisting of long government/credit and alternative credit, and real estate. The Company continually monitors the investment results of these asset classes and its fund managers, and explores other potential asset classes for possible future investment. The ability to redeem investments at year-end are based on the type of investment and the agreements with fund managers. Generally, the Company’s fixed income and equity investments are readily redeemable with limited restrictions. The ability to redeem investments in hedge funds can vary significantly. Managers may require longer notice periods and may limit the amount able to be redeemed in a period (e.g., month or quarter) to a percent of the overall investment. Investments in private equity are not redeemable at ATI’s option. Distributions are based on the sale of the underlying investments in the fund, subject to the terms in each fund agreement. The target asset allocations for ATI Pension Plan for fiscal year 2024, by major investment category, are: Asset category Target asset allocation range Equities 0% - 20% Fixed income and cash equivalents 50% - 100% Private equity and other 0% - 40% As of December 31, 2023, the Company’s pension plan had outstanding commitments to invest up to $7 million in global debt securities and $33 million in private equity investments. These commitments are expected to be satisfied through the reallocation of pension trust assets while maintaining investments within the target asset allocation ranges. The Company contributes to several multiemployer defined benefit pension plans under collective bargaining agreements that cover certain of its union-represented employees. The risks of participating in such plans are different from the risks of single-employer plans, in the following respects: a. Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. b. If a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. c. If the Company ceases to have an obligation to contribute to the multiemployer plan in which it had been a contributing employer, it may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of the Company’s participation in the plan prior to the cessation of its obligation to contribute. The amount that an employer that has ceased to have an obligation to contribute to a multiemployer plan is required to pay to the plan is referred to as a withdrawal liability. The Company’s participation in multiemployer plans for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 is reported in the following table. Pension FIP / RP Status in millions Expiration Dates EIN / Pension Company Contributions Surcharge Fiscal Year Fiscal Year Pension Fund 2023 2022 2023 2022 2021 Steelworkers Western Independent Shops Pension Plan 90-0169564 Green Green N/A $ 0.7 $ 0.1 $ 0.1 No 2/28/2025 Boilermakers-Blacksmiths National Pension Trust 48-6168020 Red Green Yes 2.6 2.3 2.0 No 9/30/2026 IAM National Pension Fund 51-6031295 Red Red Yes 1.9 1.9 1.9 Yes Various between 2024-2028 (4) Total contributions $ 5.2 $ 4.3 $ 4.0 (1) The most recent Pension Protection Act Zone Status is based on information provided to ATI and other participating employers by each plan, as certified by the plan’s actuary. A plan in the “deep red” zone had been determined to be in “critical and declining status”, based on criteria established by the Internal Revenue Code (Code), and is in critical status (as defined by the “red” zone) and is projected to become insolvent (run out of money to pay benefits) within 15 years (or within 20 years if a special rule applies). A plan in the “red” zone had been determined to be in “critical status”, based on criteria established by the Code, and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Code, and is generally less than 80% funded. A plan in the “green” zone has been determined to be neither in “critical status” nor in “endangered status”, and is generally at least 80% funded. Additionally, a plan may voluntarily place itself into a rehabilitation plan. In April 2019, the Company received notification from the IAM National Pension Fund (IAM Fund) that its’ actuary certified the IAM Fund as “endangered status” for the plan year beginning January 1, 2019, and that the IAM Fund was voluntarily placing itself in “red” zone status and implementing a rehabilitation plan. In April 2020, 2021, 2022, and 2023 the Company received notification from the IAM Fund that it was certified by its actuary as being in “red” zone status for the plan years beginning January 1, 2020, 2021 and 2022. A contribution surcharge was imposed as of June 1, 2019 in addition to the contribution rate specified in the applicable collective bargaining agreements. The contribution surcharge remains in effect, and ends when an employer begins contributing under a collective bargaining agreement that includes terms consistent with the rehabilitation plan. In April 2019, the Company received notifications from the Boilermakers-Blacksmiths National Pension Trust (Blacksmiths Trust) that it was certified by its actuary as being in “red” zone status for the plan year beginning January 1, 2019. A rehabilitation plan was adopted for the Blacksmiths Trust, and the Company and the Blacksmiths union agreed to adopt the rehabilitation plan in 2019 prior to a contribution surcharge being imposed. In April 2020 and 2021, the funding status improved for the Blacksmiths Trust as it was certified by its actuary as being in the “yellow” zone for the plan years beginning January 1, 2020 and 2021. In April 2022, the funding status further improved to being in the “green” zone for the plan year beginning January 1, 2022. In April 2023, the Blacksmiths Trust was certified by its actuary as being in “red” zone status for the plan years beginning January 1, 2023. A rehabilitation plan has been adopted for the Blacksmiths Trust, and the Company and the Blacksmiths union agreed to adopt the rehabilitation plan in 2023 prior to a contribution surcharge being imposed. (2) The “FIP / RP Status Pending / Implemented” column indicates whether a Funding Improvement Plan, as required under the Code by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” or “deep red” zones, is pending or has been implemented as of the end of the plan year that ended in 2023. (3) The “Surcharge Imposed” column indicates whether ATI’s contribution rate for 2023 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status” or “critical and declining status”, in accordance with the requirements of the Code. (4) The Company is party to five separate bargaining agreements that require contributions to this plan. Expiration dates of these collective bargaining agreements range between April 26, 2024 and July 14, 2028. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in AOCI by component, net of tax, for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 were as follows (in millions): Post- Currency Derivatives Deferred Tax Asset Valuation Allowance Revised Total Revised Balance, January 3, 2021 $ (1,119.9) $ (55.5) $ 2.1 $ (50.3) $ (1,223.6) Cumulative effect of change in accounting principle (a) 1,030.3 — — (a) 42.9 1,073.2 OCI before reclassifications 6.6 (9.4) 11.7 — 8.9 Amounts reclassified from AOCI (b) (3.6) (c) — (e) (8.7) (f) 12.5 0.2 Net current-period OCI 1,033.3 (9.4) 3.0 55.4 1,082.3 Balance, January 2, 2022 (86.6) (64.9) 5.1 5.1 (141.3) OCI before reclassifications 41.3 (25.2) 41.0 — 57.1 Amounts reclassified from AOCI (b) 10.6 (d) 20.0 (e) (32.6) (f) 18.8 16.8 Net current-period OCI 51.9 (5.2) 8.4 18.8 73.9 Balance, January 1, 2023 (34.7) (70.1) 13.5 23.9 (67.4) OCI before reclassifications (2.9) 1.7 (21.8) — (23.0) Amounts reclassified from AOCI (b) 5.1 (c) — (e) 1.9 (f) 0.2 7.2 Net current-period OCI 2.2 1.7 (19.9) 0.2 (15.8) Balance, December 31, 2023 $ (32.5) $ (68.4) $ (6.4) $ 24.1 $ (83.2) Attributable to noncontrolling interests: Balance, January 3, 2021 $ — $ 21.2 $ — $ — $ 21.2 OCI before reclassifications — 4.8 — — 4.8 Amounts reclassified from AOCI — (c) — — — — Net current-period OCI — 4.8 — — 4.8 Balance, January 2, 2022 — 26.0 — — 26.0 OCI before reclassifications — (18.3) — — (18.3) Amounts reclassified from AOCI — (c) — — — — Net current-period OCI — (18.3) — — (18.3) Balance, January 1, 2023 — 7.7 — — 7.7 OCI before reclassifications — (0.4) — — (0.4) Amounts reclassified from AOCI — (c) — — — — Net current-period OCI — (0.4) — — (0.4) Balance, December 31, 2023 $ — $ 7.3 $ — $ — $ 7.3 (a) In the fourth quarter of fiscal year 2023, the Company voluntarily changed its method of accounting for recognizing actuarial gains and losses for our defined benefit pension plans. See Note 1 for amounts recognized related to this change. The information within this Note has been revised to reflect the change in accounting principle for current and prior periods. (b) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 14) and/or loss on asset sales and sales of businesses, net, as part of the loss on sale of the Sheffield, UK operations (see Note 6). (c) No amounts were reclassified to earnings. (d) Amounts were included in loss on asset sales and sales of businesses, net, as part of the loss on sale of the Sheffield, UK operations (see Note 6). (e) Amounts related to derivatives are included in sales, cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 12). (f) Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates. The fiscal year 2021 income tax provision includes $6.4 million of tax expense for the recognition of a stranded deferred tax balance arising from deferred tax valuation allowances that was associated with certain postretirement medical benefits due to plan termination (see Notes 14 and 17). 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 fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 were as follows: Amount reclassified from AOCI (d) Fiscal year ended Details about AOCI Components (In millions) December 31, 2023 January 1, 2023 January 2, 2022 Affected line item in the Postretirement benefit plans Revised Prior service credit $ 0.6 (a) $ 0.5 (a) $ 1.8 (a) Actuarial losses (6.0) (a) (13.2) (a) (13.9) (a) Settlement gain (loss) (1.1) (a) (0.7) (b) 21.9 (a) (6.5) (d) (13.4) (d) 9.8 (d) Total before tax (1.4) (2.8) 6.2 Tax provision (benefit) (e) $ (5.1) $ (10.6) $ 3.6 Net of tax Currency translation adjustment — (d) (20.0) (b,d) — (d) Derivatives Nickel and other raw material contracts $ 3.3 (c) $ 26.9 (c) $ 7.1 (c) Natural gas contracts (7.5) (c) 15.1 (c) 5.3 (c) Foreign exchange contracts 0.3 (c) 0.9 (c) 0.1 (c) Interest rate swap 1.4 (c) (0.1) (c) (1.1) (c) (2.5) (d) 42.8 (d) 11.4 (d) Total before tax (0.6) 10.2 2.7 Tax provision (benefit) (e) $ (1.9) $ 32.6 $ 8.7 Net of tax (a) Amounts are included in nonoperating retirement benefit expense (see Note 14). (b) Amounts in fiscal year 2022 were included in loss on asset sales and sales of businesses, net, as part of the loss on sale of the Sheffield, UK operations (see Note 6). (c) Amounts related to derivatives, with the exception of the interest rate swap, are included in sales or 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 ABL Term Loan is recognized in earnings (see Note 12). (d) 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. (e) These amounts exclude the impact of any deferred tax asset valuation allowances, when applicable, including recognition of stranded balances (see Note 17 for further explanation). |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock Authorized preferred stock may be issued in one or more series, with designations, powers and preferences as shall be designated by the Board of Directors. At December 31, 2023, there were no shares of preferred stock issued. Dividends Under the ABL facility, there is no limit on dividend declarations or payments provided that the undrawn availability, after giving effect to a particular dividend payment, is at least the greater of $120 million and 20% of the total facility size, after giving effect to any repayment of term loans, and no event of default under the ABL facility has occurred and is continuing or would result from paying the dividend. In addition, there is no limit on dividend declarations or payments if the undrawn availability is less than the greater of $120 million and 20% of the total facility size, after giving effect to any repayment of term loans, but more than the greater of $75 million and 12.5% of the total facility size, after giving effect to any repayment of term loans, if (i) no event of default has occurred and is continuing or would result from paying the dividend, (ii) the Company demonstrates to the administrative agent that, prior to and after giving effect to the payment of the dividend (A) the undrawn availability, as measured both at the time of the dividend payment and as an average for the 60 consecutive day period immediately preceding the dividend payment, is at least the greater of $75 million and 12.5% of the total facility size, after giving effect to any repayment of term loans, and (B) the Company maintains a fixed charge coverage ratio of at least 1.00:1.00, as calculated in accordance with the terms of the ABL facility. Share-based Compensation In May 2022, the Company’s stockholders approved the ATI Inc. 2022 Incentive Plan (the “2022 Incentive Plan”). Following adoption, all new share-based compensation awards are being made under the 2022 Incentive Plan. Shares previously remaining available for grant under prior incentive plans, or which become available for award due to the forfeiture or cancellation of prior awards under those prior plans, are available for award under the 2022 Incentive Plan. Outstanding grants previously made under prior incentive plans remain in effect in accordance with relevant terms. Awards earned under the Company’s share-based incentive compensation programs are paid with shares held in treasury or newly issued shares depending on the level of treasury shares held. At December 31, 2023, 5.4 million shares of common stock were available for future awards under the 2022 Incentive Plan. The general terms of each arrangement granted under the 2022 Incentive Plan, and predecessor plans, the method of estimating fair value for each arrangement, and award activity is reported below. The Company’s share-based incentive compensation program consists of both service-based and performance/market-based awards. These awards convey participants the right to receive shares of ATI common stock if the service conditions, and performance or market requirements, of the awards are attained. Service-based awards: Restricted share units (RSUs) are rights to receive shares of Company stock when the award vests. The RSUs generally vest over three years based on employment service, with one-third of the award vesting on each of the first, second and third anniversaries of the grant date. RSU awards to non-employee directors vest in one year. No dividends are accumulated or paid on the RSUs. The fair value of the RSU award is measured based on the stock price at the grant date. Compensation expense related to RSU awards was $14.5 million in fiscal year 2023, $13.4 million in fiscal year 2022, and $14.3 million in fiscal year 2021. Approximately $8.7 million of unrecognized fair value compensation expense relating to restricted stock units is expected to be recognized through fiscal year 2026, with $6.6 million expected to be recognized in fiscal year 2024, including estimates of service period forfeitures. Activity under the Company’s RSU awards for the fiscal years ended December 31, 2023, January 1, 2023, and January 2, 2022 was as follows: Fiscal Year (Shares in thousands, $ in millions) 2023 2022 2021 Number of Weighted Number of Weighted Number of Weighted Nonvested, beginning of fiscal year 1,479 $ 26.0 1,409 $ 25.6 929 $ 17.9 Granted 512 16.0 831 14.8 1,033 17.5 Vested (729) (13.1) (634) (12.3) (505) (8.9) Forfeited (42) (0.9) (127) (2.1) (48) (0.9) Nonvested, end of fiscal year 1,220 $ 28.0 1,479 $ 26.0 1,409 $ 25.6 Performance condition awards: The Company awarded performance share units (PSUs) with performance requirements through fiscal year 2020. These PSU award opportunities, the last of which vested at the conclusion of its applicable three-year performance period on January 1, 2023, were determined at a target number of units, and the number of shares awarded was based on attainment of two ATI financial performance metrics. PSU awards through fiscal year 2020 are accounted for as performance condition plans with service vesting requirements, with compensation expense during the performance period recognized based on estimates of attaining the performance criteria, including estimated forfeitures. The metrics for PSU awards granted in fiscal years 2019 and 2020 measured (1) net income attributable to ATI and (2) return on capital employed, over a three-year performance period with a threshold attainment of 25% and a maximum attainment of 200% of the target financial performance metrics and target share units, measured over the applicable three-year performance period. For certain senior executives, the number of PSUs to be awarded based on the performance criteria was modified up or down by up to 20% based on the Company’s relative total shareholder return (TSR) over the performance measurement period (“TSR Modifier”), but not above the maximum number of PSUs to be vested. The TSR Modifier measured the return of the Company’s stock price (including assumed dividend reinvestment, if any) at the end of the performance period as compared to the stock prices (including assumed dividend reinvestment, if any) of a group of industry peers. The fair value of the PSU award was measured based on the stock price at the grant date, including the effect of the TSR Modifier. The fair value of the TSR Modifier was determined by using Monte Carlo simulations of stock price correlation, projected dividend yields and other variables over a three-year time horizon matching the TSR performance measurement period. Expense recognition varied with the level of performance achieved. Market condition awards: The Company awarded PSUs with market requirements in fiscal years 2021, 2022 and 2023. These PSU award opportunities are determined at a target number of share units, and the number of shares awarded is based on TSR, representing the measured return of the Company’s stock price (including assumed dividend reinvestment, if any) at the end of the three year period as compared to the stock prices (including assumed dividend reinvestment, if any) of a group of industry peers. The fiscal year 2021, 2022 and 2023 PSU awards are accounted for as a market condition plan with service vesting requirements, with expense recognized over the service period without regard to the level of TSR attainment or shares awarded. The actual number of shares awarded at the end of the measurement period may range from a minimum of zero to a maximum of two times target. For the fiscal year 2021 and 2022 awards, TSR is determined over eight distinct quarterly periods as measured from January 1 of the grant year of the award through the end of each quarterly period starting with the first quarter ending in the second year following the grant of the award. For the 2023 awards, TSR is determined over four distinct quarterly periods as measured from January 1 of the grant year of the award through the end of each quarterly period starting with the first quarter ending in the third year following the grant of the award; earned payouts from each TSR measurement period are averaged to determine the final payout at the conclusion of the three-year period. The fair value for this award was determined by using Monte Carlo simulations of stock price correlation, projected dividend yields and other variables over the three-year time horizon matching the TSR measurement period. In fiscal year 2022, the Company awarded a new one-time grant of PSUs with market requirements, called the Breakout Performance Award (BPA). In fiscal year 2023, 46,046 additional share units under the fiscal year 2022 BPA were awarded to new members of senior management and 4,807 shares were issued due to retirement vesting. The BPA has a target number of share units, and the number of shares awarded is based on the absolute return on the Company’s stock during a four-year measurement period. The service vesting requirements of the BPA award are four years for one half of the award and five years for the remaining half. The BPA award is accounted for as a market condition plan with service vesting requirements, with expense recognized over the service periods without regard to the level of absolute return attainment or shares awarded. The actual number of BPA shares awarded at the end of the measurement period may range from a minimum of zero to a maximum of three times target. The fair value for this award was determined by using Monte Carlo simulations of stock price correlation, projected dividend yields and other variables over the four-year time horizon matching the BPA measurement period. At December 31, 2023, a maximum of 4.8 million shares have been reserved for issuance for all PSU awards. The Company recognized $14.6 million, $12.6 million and $6.8 million of compensation expense in fiscal years 2023, 2022 and 2021, respectively, for all PSU awards. Forfeited share units in fiscal years 2023, 2022 and 2021 were 19,863, 159,298, and 71,801, respectively, with a weighted average grant date fair value of $0.5 million, $3.4 million, and $1.7 million, respectively. The fair value of each PSU award, the target share units awarded and projected future compensation expense to be recognized for these awards, including actual and estimated forfeitures at December 31, 2023 was as follows: (Shares in thousands, $ in millions) PSU Award Performance Period Award Fair Value December 31, 2023 Unrecognized Compensation Expense Compensation Expense Expected to be Recognized in the next 12 months Target Share Units Fiscal Year 2021-2023 $ 9.3 $ — $ — 459 Fiscal Year 2022-2024 $ 11.0 3.9 3.9 494 Fiscal Year 2023-2025 $ 12.6 8.9 4.2 330 Fiscal Year 2022-2025 BPA $ 20.3 11.0 4.4 857 Total $ 23.8 $ 12.5 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes for the Company’s U.S. and non-U.S. operations was as follows: Fiscal Year (In millions) 2023 2022 Revised 2021 Revised U.S. $ 258.2 $ 394.3 $ 168.7 Non-U.S. 37.0 (39.7) 64.7 Income before income taxes $ 295.2 $ 354.6 $ 233.4 The income tax provision (benefit) was as follows: Fiscal Year (In millions) 2023 2022 2021 Current: Federal $ 3.0 $ 5.0 $ 0.7 State 0.5 3.7 (0.3) Foreign 7.8 10.0 9.4 Total 11.3 18.7 9.8 Deferred: Federal (96.1) (3.3) 18.6 State (42.5) 0.2 (0.9) Foreign (0.9) (0.1) (0.7) Total (139.5) (3.2) 17.0 Income tax provision (benefit) $ (128.2) $ 15.5 $ 26.8 The following is a reconciliation of income taxes computed at the statutory U.S. Federal income tax rate to the actual effective income tax provision (benefit): Fiscal Year (In millions) 2023 2022 Revised 2021 Revised Taxes computed at the federal rate $ 62.0 $ 74.5 $ 49.0 Goodwill — — 2.6 State and local income taxes, net of federal tax benefit 1.2 2.9 0.4 Valuation allowance (198.8) (84.4) (29.2) Repatriation of foreign earnings (GILTI ) 5.0 — 2.0 Divestiture — 23.0 — Recognition of stranded deferred tax balance — — 3.9 Foreign earnings taxed at different rate 2.7 3.2 3.0 Withholding taxes 4.8 2.6 3.4 Preferential tax rate (3.6) (4.9) (6.2) Other (1.5) (1.4) (2.1) Income tax provision (benefit) $ (128.2) $ 15.5 $ 26.8 The Company’s income tax expense has been impacted by the effects of valuation allowances on federal and state deferred tax assets for fiscal years 2021 through 2023. The Company recognizes deferred tax assets to the extent it believes these deferred tax assets are more likely than not to be realized. Valuation allowances are established when it is estimated that it is more likely than not the tax benefit of the deferred tax asset will not be realized. In making such determination, the Company considers all available evidence, both positive and negative, regarding the estimated future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards, historical taxable income in prior carryback periods if carryback is permitted, and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. The verifiable evidence such as future reversals of existing temporary differences and the ability to carryback are considered before the subjective sources such as estimated future taxable income exclusive of temporary differences and tax planning strategies. In situations where a three-year cumulative loss position exists, the ability to consider projections of future results as positive evidence to assess the realizability of deferred tax assets is subjective. If the Company determines that it would not be able to realize its deferred tax assets in the future in excess of their recorded net amount, an adjustment to the deferred tax asset valuation allowance would result. Since fiscal year 2020, ATI’s U.S. operations were in a three-year cumulative loss position, limiting the ability to utilize future projections as verifiable sources of income when analyzing the need for a valuation allowance. This cumulative loss continued until fiscal year 2023 when ATI exited the three-year cumulative loss position and the Company concluded it was appropriate to consider future projections as a source of income when analyzing the need for a valuation allowance. In fiscal year 2023, ATI recorded a tax benefit associated with the valuation allowance due to the current year income for the U.S. operations and a $140.3 million additional benefit was recorded related to the valuation allowance release associated with ATI’s ability to utilize projections for future income. Revised fiscal years 2022 and 2021 results reflect the voluntary change, as discussed in Note 1, in the method of accounting for recognizing actuarial gains and losses for defined benefit pension plans whereby gains or losses from the remeasurement of the projected benefit obligation and plan assets for these pension plans are immediately recognized in earnings. These gains and losses were historically recognized in AOCI which included a full valuation allowance offset in AOCI. Overall, the underlying liability associated with pension did not change with this accounting policy change, therefore the deferred tax asset did not change for each year, only the reclassification of taxes recorded changed from AOCI on the consolidated balance sheet to the consolidated statement of operations. Given the full valuation allowance offset, there was no impact to earnings from this reclassification in prior years. In fiscal year 2022, ATI recorded a tax benefit associated with the valuation allowance due to the current year income for the U.S. operations. As a result of the current year income, ATI utilized net operating loss carryovers which in turn resulted in a release of the corresponding valuation allowance on the operating loss deferred tax assets. The provision for income taxes for the fiscal year ended January 1, 2023, is mainly attributable to the Company’s foreign operations and state income tax expense associated with states that limit net operating loss utilization. On May 12, 2022, the Company sold its Sheffield, UK operations which resulted in a pre-tax loss of $112.2 million (see Note 6 for further explanation) for which the benefit was disallowed for tax purposes, resulting in a $23.0 million tax expense impact as shown in the effective tax rate reconciliation table above. In fiscal year 2021, ATI incurred tax expense associated with the valuation allowance due to the postretirement medical benefit settlement gain along with the U.S. operations plus permanent adjustments (goodwill and Global Intangible Low-Taxed Income (GILTI)) being a loss. The provision for income taxes for the fiscal year ended January 2, 2022 is mainly attributable to the $15.5 million in discrete tax effects related to the postretirement medical benefits settlement gain discussed in Note 14, in accordance with ATI’s accounting policy for recognizing deferred tax amounts stranded in AOCI. This $15.5 million is presented within two lines in the above table, $11.6 million within valuation allowance and $3.9 million on the recognition of stranded deferred tax balance line which represents the difference between current and historical tax rates in AOCI. The $11.6 million has two components: $5.2 million of additional required valuation allowance on ATI’s net deferred tax assets following the reduction of deferred tax liabilities in AOCI associated with the recognition of the AOCI portion of the retirement benefit settlement gain of $21.9 million, and $6.4 million of “trapped” valuation allowances remaining in AOCI from prior periods that are now recognized upon extinguishment of the retirement benefit plan (see Notes 14 and 15). In fiscal year 2021, the Company allocated $12.2 million of the goodwill from ATI’s Forged Products reporting unit to the sale of Flowform Products (see Note 6 for further explanation) which was non-deductible for tax purposes, resulting in a $2.6 million expense included as a reconciling item in the table above. The Company also maintained valuation allowances on deferred tax amounts recorded in AOCI in fiscal years 2023, 2022 and 2021 of $24.1 million, $23.9 million, and $5.1 million, respectively, which are not reflected in the preceding table reconciling amounts recognized in the income tax provision (benefit) recorded in the statement of operations (see Note 15). Additionally, the Tax Cuts and Jobs Act (Tax Act) requires a current year inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations, commonly referred to as GILTI. In fiscal years 2023 and 2021, the amount of GILTI represents a full inclusion due to ATI’s net operating loss utilization and inability to utilize GILTI credits when taxable income is zero. In fiscal year 2022, due to the loss on the sale of the Sheffield operations, there is no current year inclusion. The Company has elected to recognize GILTI liabilities as an element of income tax expense in the period incurred. In the fourth quarter of fiscal year 2021, the Company was granted a preferential tax rate related to the PRS joint venture operations in China for tax years 2021 through 2023. The preferential tax rate is 15%, compared to the statutory rate of 25%. As of December 31, 2023, the preferential tax rate has expired, and the Company will prospectively utilize the 25% statutory tax rate pending a ruling by the Chinese government on a new preferential rate tax application which will be filed in 2024. Deferred income taxes result from temporary differences in the recognition of income and expense for financial and income tax reporting purposes, and differences between the fair value of assets acquired in business combinations accounted for as purchases for financial reporting purposes and their corresponding tax bases. Deferred income taxes represent future tax benefits or costs to be recognized when those temporary differences reverse. The categories of assets and liabilities that have resulted in differences in the timing of the recognition of income and expense at December 31, 2023 and January 1, 2023 were as follows: Fiscal Year (In millions) 2023 2022 Deferred income tax assets Net operating loss tax carryovers $ 133.0 $ 184.1 Pensions 2.2 51.7 Postretirement benefits other than pensions 48.5 51.5 Tax credits 43.5 42.0 Research and development 20.7 7.4 Inventory valuation 1.1 — Other items 107.5 95.6 Gross deferred income tax assets 356.5 432.3 Valuation allowance for deferred tax assets (60.3) (266.9) Total deferred income tax assets 296.2 165.4 Deferred income tax liabilities Basis of property, plant and equipment 124.8 122.2 Inventory valuation — 17.1 Basis of amortizable intangible assets 14.9 16.4 Other items 25.5 23.0 Total deferred tax liabilities 165.2 178.7 Net deferred tax asset (liability) $ 131.0 $ (13.3) Changes in the valuation allowance for deferred tax assets in fiscal year 2023 in the above table compared to fiscal year 2022 include the following: • $198.8 million of valuation allowance recorded as income tax benefit and included in the reconciliation of the current year income tax provision and $7.8 million of a benefit related to current year activity is recorded on the state and local income tax line within the rate reconciliation above. • Reductions in the valuation allowance related to the benefit in AOCI of $0.2 million (as discussed in Note 15). In fiscal year 2023, the deferred tax liability related to inventory changed from a deferred tax liability to a deferred tax asset. This change is related to the recognition of the deferred tax liability associated with the accounting policy change from the LIFO inventory cost method adopted by the Company during the fourth quarter of fiscal year 2021, which for tax purposes is recognized over four years versus one year for book purposes. The following summarizes the carryforward periods for the tax attributes related to NOLs and credits by jurisdiction. ($ in millions, U.S. and U.K. NOL amounts are pre-tax and all other items are after-tax) Jurisdiction Attribute Amount Expiration Period Amount expiring within 5 years Amount expiring in 5-20 years U.S. NOL $213 20 years $— $213 U.S. NOL $129 Indefinite $— $— U.S. Foreign Tax Credit $22 10 years $22 $— U.S. Research and Development Credit $11 20 years $— $11 State NOL $80 Various $15 $65 State NOL $1 Indefinite $— $— State Credits $9 Various $4 $5 U.K. NOL $4 Indefinite $— $— Poland Economic Zone Credit $4 7 years $4 $— Income taxes paid and amounts received as refunds were as follows: Fiscal Year (In millions) 2023 2022 2021 Income taxes paid $ 16.7 $ 18.9 $ 14.2 Income tax refunds received (0.9) (0.4) (0.6) Income taxes paid, net $ 15.8 $ 18.5 $ 13.6 Deferred taxes of $7.7 million have been recorded for foreign withholding taxes on earnings expected to be repatriated to the U.S. The Company does not intend to distribute previously taxed earnings resulting from the one-time transition tax under the Tax Act, and has not recorded any deferred taxes related to such amounts. The remaining excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries is indefinitely reinvested, and the determination of any deferred tax liability on this amount is not practicable. Uncertain tax positions are recorded using a two-step process based on (1) determining whether it is more-likely-than-not the tax positions will be sustained on the basis of the technical merits of the position and (2) for those positions that meet the more-likely-than-not recognition threshold, the Company records the largest amount of the tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The changes in the liability for unrecognized income tax benefits for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 were as follows: Fiscal Year (In millions) 2023 2022 2021 Balance at beginning of fiscal year $ 9.1 $ 14.2 $ 15.2 Increases in prior period tax positions 1.2 — — Decreases in prior period tax positions — (3.3) — Increases in current period tax positions — — 0.3 Expiration of the statute of limitations (1.4) (1.8) (1.3) Balance at end of fiscal year $ 8.9 $ 9.1 $ 14.2 For fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022, the liability includes $7.2 million, $7.8 million and $12.3 million, respectively, of unrecognized tax benefits that are classified within deferred income taxes as a reduction of NOL carryforwards and other tax attributes. The total estimated unrecognized tax benefit that, if recognized, would affect ATI’s effective tax rate is approximately $1.7 million. At this time, the Company believes that it is reasonably possible that approximately $0.5 million of the estimated unrecognized tax benefits as of December 31, 2023 will be recognized within the next twelve months based on the expiration of statutory review periods. The Company recognizes accrued interest and penalties related to uncertain tax positions as income tax expense. The amounts accrued for interest and penalty charges for the fiscal years 2023, 2022 and 2021 were not significant. At December 31, 2023 and January 1, 2023, the accrued liabilities for interest and penalties related to unrecognized tax benefits were $1.3 million and $1.4 million, respectively. The Company, and/or one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. A summary of tax years that remain subject to examination, by major tax jurisdiction, is as follows: Jurisdiction Earliest Year Open to U.S. Federal 2020 States: Pennsylvania 2020 Foreign: China 2020 Poland 2017 United Kingdom 2021 |
Per Share Information
Per Share Information | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Per Share Information | Per Share Information The following table sets forth the computation of basic and diluted net income per common share: (In millions, except per share amounts) Fiscal Year 2023 2022 Revised 2021 Revised Numerator: Numerator for basic net income per common share - Net income attributable to ATI $ 410.8 $ 323.5 $ 184.6 Effect of dilutive securities: 4.75% Convertible Senior Notes due 2022 — 2.2 4.4 3.5% Convertible Senior Notes due 2025 10.6 11.3 11.8 Numerator for diluted net income per common share - Net income attributable to ATI after assumed conversions $ 421.4 $ 337.0 $ 200.8 Denominator: Denominator for basic net income per common share—weighted average shares 128.1 127.5 127.1 Effect of dilutive securities: Share-based compensation 3.1 2.1 1.0 4.75% Convertible Senior Notes due 2022 — 2.8 5.8 3.5% Convertible Senior Notes due 2025 18.8 18.8 18.8 Denominator for diluted net income per common share—adjusted weighted average shares and assumed conversions 150.0 151.2 152.7 Basic net income attributable to ATI per common share $ 3.21 $ 2.54 $ 1.45 Diluted net income attributable to ATI per common share $ 2.81 $ 2.23 $ 1.32 Common stock that would be issuable upon the assumed conversion of the 2025 Convertible Notes, and the 2022 Convertible Notes prior to their maturity, 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. The 2022 Convertible Notes were converted as of June 30, 2022 (see Note 10 for further explanation). There were no anti-dilutive shares for fiscal years 2023, 2022 and 2021. In February 2022 and April 2023, the Company’s Board of Directors authorized the repurchase of up to $150 million and $75 million, respectively, of ATI stock. In fiscal year 2023, ATI used $85.2 million to repurchase 2.0 million shares of its common stock under both programs. In fiscal year 2022, ATI used $139.9 million to repurchase 5.2 million shares of its common stock under the $150 million program. In addition, in November 2023, the Company’s Board of Directors authorized the repurchase of an additional $150 million of ATI stock. Effective January 2, 2023, the Company’s share repurchases are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. Excise taxes incurred in fiscal year 2023 on share repurchases represent direct costs of the repurchase and are recorded as part of the cost basis of the shares within treasury stock. The cost of share repurchases for fiscal year 2023 of $85.8 million differs from the repurchases of common stock amounts in the consolidated statements of cash flows due to these excise taxes. Repurchases under these programs were or may be made in the open market or in privately negotiated transactions, with the amount and timing of repurchases depending on market conditions and corporate needs. Open market repurchases are structured to occur within the pricing and volume requirements of SEC Rule 10b-18. The Company’s ongoing stock repurchase programs do not obligate the Company to repurchase any specific number of shares and may be modified, suspended, or terminated at any time by the Company’s Board of Directors without prior notice. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Future minimum rental commitments under leases are disclosed in Note 11. Commitments for expenditures on property, plant and equipment at December 31, 2023 were approximately $86.1 million. 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 December 31, 2023, the Company’s reserves for environmental remediation obligations totaled approximately $13 million, of which $7 million was included in other current liabilities Based on currently available information, it is reasonably possible that the costs for active matters may exceed the Company’s recorded reserves by as much as $17 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 associated with 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. 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. 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. ATI Titanium LLC (ATI Titanium), a subsidiary of ATI Inc., was party 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. ATI Titanium and USM reached a litigation settlement in fiscal year 2022 for $28.5 million, which is reported within other (nonoperating) expense on the consolidated statement of operations and was paid in the fiscal year ended January 1, 2023. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following selected quarterly operating results for each quarter of fiscal years 2023 and 2022 have been revised to reflect the voluntary change in accounting method as described in Note 1. Quarterly financial data for fiscal years 2023 and 2022 was as follows: Quarter Ended (In millions except share and per share amounts) April 2, 2023 July 2, 2023 October 1, 2023 December 31, 2023 Fiscal Year 2023 - Sales $ 1,038.1 $ 1,046.0 $ 1,025.6 $ 1,064.0 Operating income 112.6 120.3 125.2 108.3 Net income 86.6 93.5 94.1 149.2 Net income attributable to ATI 84.5 90.4 90.2 145.7 Basic income attributable to ATI per common share* $ 0.66 $ 0.70 $ 0.70 $ 1.15 Diluted income attributable to ATI per common share* $ 0.58 $ 0.62 $ 0.62 $ 0.99 Quarter Ended April 3, 2022 July 3, 2022 October 2, 2022 January 1, 2023 Fiscal Year 2022- Sales $ 834.1 $ 959.5 $ 1,032.0 $ 1,010.4 Operating income 77.0 17.2 113.2 108.7 Net income 51.2 10.4 80.2 197.3 Net income attributable to ATI 46.9 6.7 76.9 193.0 Basic income attributable to ATI per common share* $ 0.37 $ 0.05 $ 0.59 $ 1.49 Diluted income attributable to ATI per common share* $ 0.33 $ 0.05 $ 0.53 $ 1.30 * The sum of quarterly earnings per share may not equal the annual earnings per share due to changes in the weighted-average shares between periods and the dilutive effect of dilutive share equivalents. The comparability of the Company’s quarterly financial results during fiscal years 2023 and 2022 was impacted by certain items, as follows: First quarter of fiscal year 2023 results include a $1.2 million pre-tax ($1.1 million, net of tax) charge for costs to restart the Company’s titanium operations in Albany, OR. Second quarter of fiscal year 2023 results include pre-tax charges totaling $10.6 million ($10.2 million, net of tax), which include $4.5 million for start-up costs, $2.7 million of severance-related restructuring charges, $2.8 million primarily for asset write-offs related to the closure of our Robinson, PA operation, and $0.6 million for the loss on the sale of the Company’s Northbrook, IL operation. Third quarter of fiscal year 2023 results include pre-tax net charges totaling $4.2 million ($4.0 million, net of tax), which include $2.8 million for start-up costs and $1.9 million of costs associated with an unplanned outage at the Company’s Lockport, NY melt facility, partially offset by a $0.5 million credit for restructuring charges, primarily related to lowered severance-related reserves based on changes in planned operating rates and revised workforce reduction estimates. Fourth quarter of fiscal year 2023 results include net pre-tax charges totaling $88.3 million ($84.7 million, net of tax), which include $3.0 million for start-up costs, $5.5 million of severance-related restructuring charges, $11.3 million for inventory and asset write-offs related to the restructuring of the Company’s European operations, $26.8 million for a pension plan remeasurement loss, and $41.7 million for a pension plan settlement loss. Fourth quarter of fiscal year 2023 results also include a $140.3 million discrete tax benefit primarily related to the reversal of a portion of deferred tax valuation allowances due to exiting the three-year cumulative loss condition for U.S. Federal and state jurisdictions at fiscal year-end 2023. First quarter of fiscal year 2022 results include net pre-tax net charges totaling $25.8 million ($25.8 million, net of tax), which include an $8.6 million litigation reserve for the case of US Magnesium, LLC v. ATI Titanium LLC and a $25.1 million partial loss on the sale of the Company’s Sheffield, UK operations, partially offset by a $1.1 million credit for restructuring charges, primarily related to lowered severance-related reserves based on changes in planned operating rates and revised workforce reduction estimates and a $6.8 million gain on the sale of the Company’s Pico Rivera, CA operations. Second quarter of fiscal year 2022 results include net pre-tax net charges totaling $85.8 million ($85.9 million, net of tax), which include an $87.1 million loss on the sale of our Sheffield, UK operations, which was completed in the second quarter of fiscal year 2022, partially offset by a $1.3 million credit for restructuring charges, primarily related to lowered severance-related reserves based on changes in planned operating rates and revised workforce reduction estimates. Third quarter of fiscal year 2022 results include pre-tax net charges totaling $17.3 million ($16.3 million, net of tax), which include a $19.9 million litigation reserve, partially offset by a $2.6 million credit for restructuring charges, primarily related to lowered severance-related reserves based on changes in planned operating rates and revised workforce reduction estimates. Fourth quarter of fiscal year 2022 results include a $100.3 million pre-tax and net of tax pension plan remeasurement gain. Below reflects the quarterly impact of the change in accounting principle on our quarterly financial data presented: (dollars in millions, except per share data) As Computed Under Previous Policy As Reported Under New Policy Effect of Accounting Change Three months ended April 2, 2023 Net income $ 72.2 $ 86.6 $ 14.4 Net income attributable to ATI $ 70.1 $ 84.5 $ 14.4 Basic income attributable to ATI per common share* $ 0.55 $ 0.66 $ 0.11 Diluted income attributable to ATI per common share* $ 0.48 $ 0.58 $ 0.10 Three months ended July 2, 2023 Net income $ 79.1 $ 93.5 $ 14.4 Net income attributable to ATI $ 76.0 $ 90.4 $ 14.4 Basic income attributable to ATI per common share* $ 0.59 $ 0.70 $ 0.11 Diluted income attributable to ATI per common share* $ 0.52 $ 0.62 $ 0.10 Three months ended October 1, 2023 Net income $ 79.6 $ 94.1 $ 14.5 Net income attributable to ATI $ 75.7 $ 90.2 $ 14.5 Basic income attributable to ATI per common share* $ 0.59 $ 0.70 $ 0.11 Diluted income attributable to ATI per common share* $ 0.52 $ 0.62 $ 0.10 Three months ended December 31, 2023 Net income (loss) $ (550.1) $ 149.2 $ 699.3 Net income (loss) attributable to ATI $ (553.6) $ 145.7 $ 699.3 Basic income (loss) attributable to ATI per common share* $ (4.35) $ 1.15 $ 5.50 Diluted income (loss) attributable to ATI per common share* $ (4.35) $ 0.99 $ 5.34 (dollars in millions, except per share data) As Computed Under Previous Policy As Reported Under New Policy Effect of Accounting Change Three months ended April 3, 2022 Net income $ 35.2 $ 51.2 $ 16.0 Net income attributable to ATI $ 30.9 $ 46.9 $ 16.0 Basic income attributable to ATI per common share* $ 0.24 $ 0.37 $ 0.13 Diluted income attributable to ATI per common share* $ 0.23 $ 0.33 $ 0.10 Three months ended July 3, 2022 Operating income (loss) $ (11.6) $ 17.2 $ 28.8 Net income (loss) $ (34.3) $ 10.4 $ 44.7 Net income (loss) attributable to ATI $ (38.0) $ 6.7 $ 44.7 Basic income (loss) attributable to ATI per common share* $ (0.31) $ 0.05 $ 0.36 Diluted income (loss) attributable to ATI per common share* $ (0.31) $ 0.05 $ 0.36 Three months ended October 2, 2022 Net income $ 64.4 $ 80.2 $ 15.8 Net income attributable to ATI $ 61.1 $ 76.9 $ 15.8 Basic income attributable to ATI per common share* $ 0.47 $ 0.59 $ 0.12 Diluted income attributable to ATI per common share* $ 0.42 $ 0.53 $ 0.11 Three months ended January 1, 2023 Net income $ 81.2 $ 197.3 $ 116.1 Net income attributable to ATI $ 76.9 $ 193.0 $ 116.1 Basic income attributable to ATI per common share* $ 0.60 $ 1.49 $ 0.89 Diluted income attributable to ATI per common share* $ 0.53 $ 1.30 $ 0.77 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Oct. 01, 2023 | Jul. 02, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Pay vs Performance Disclosure | |||||||||||
Net income attributable to ATI | $ 145.7 | $ 90.2 | $ 90.4 | $ 84.5 | $ 193 | $ 76.9 | $ 6.7 | $ 46.9 | $ 410.8 | $ 323.5 | $ 184.6 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Timothy J. Harris [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | During the quarterly period ended December 31, 2023, Timothy J. Harris entered into a pre-arranged stock trading plan on November 14, 2023, which provides for the potential sale of up to 12,650 shares of the Company’s Common Stock between February 12, 2024 and November 8, 2024. |
Name | Timothy J. Harris |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | November 14, 2023 |
Arrangement Duration | 270 days |
Aggregate Available | 12,650 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation and Reporting The consolidated financial statements include the accounts of ATI Inc. and its subsidiaries. The financial results of majority-owned joint ventures are consolidated into the Company’s operating results and financial position, with the minority ownership interest recognized in the consolidated statement of operations as net income attributable to noncontrolling interests, and as equity attributable to the noncontrolling interests within total stockholders’ equity. The results for the Shanghai STAL Precision Stainless Steel Company Limited (STAL) are reported on a one month lag. 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, whereby ATI’s carrying value of the equity method investment on the consolidated balance sheet is the capital investment and any undistributed profit or loss. The investments are classified in other (noncurrent) assets on the consolidated balance sheet. The profit or loss attributable to ATI from equity method investments is included in the consolidated statements of operations as a component of Other (non-operating) income (expense). See Note 7 for further explanation of the Company’s joint ventures. Intercompany accounts and transactions have been eliminated. Unless the context requires otherwise, “ATI” and the “Company” refer to ATI Inc. and its subsidiaries. |
Fiscal Year | Fiscal Year |
Use of Estimates | Risks and Uncertainties and Use of Estimates |
Concentration Risks | The Company markets its products to a diverse customer base, principally throughout the United States. No single customer accounted for more than 10% of sales for any year presented. The major end markets for ATI’s products are customers in the aerospace & defense, energy, automotive, construction and mining, food equipment and appliances, and medical markets. |
Change in Accounting Principle | Change in Accounting Principle During the fourth quarter of fiscal year 2023, the Company voluntarily changed the method of accounting for recognizing actuarial gains and losses for its defined benefit pension plans. Under the accounting method change, remeasurement of projected benefit obligation and plan assets for defined benefit pension plans are immediately recognized in earnings through net periodic pension benefit cost within nonoperating retirement benefit expense on the consolidated statements of operations, with pension plans to be remeasured annually in the fourth quarter or on an interim basis as triggering events require remeasurement. Prior to this accounting method change, the Company deferred the recognition of these gains and losses in accumulated other comprehensive loss on the consolidated balance sheet. The accumulated actuarial gains/losses were then amortized into net periodic benefit costs within nonoperating retirement benefit expense on the consolidated statement of operations over the average expected remaining life of plan participants. While the historical accounting principle was acceptable, we believe that the current accounting policy is preferable because it provides a better representation of the operating results of the Company and the economic performance of plan assets in relation to the measurement of its benefit obligations for the period. The change in accounting will more clearly reflect the current period impact of the Company’s pension asset investment strategy to readers of the financial statements. |
Cash Equivalents and Investments | Cash and Cash Equivalents Cash equivalents are highly liquid investments that are readily convertible to cash with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable Accounts receivable are presented net of a reserve for doubtful accounts of $3.2 million and $7.7 million at December 31, 2023 and January 1, 2023, respectively. Trade credit is extended based upon evaluations of each customer’s ability to perform its obligations, which are updated periodically. The Company’s accounts receivable reserves are determined based on expected credit losses. Amounts are written-off against the reserve in the period it is determined that the receivable is uncollectible. |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out (FIFO) and average cost methods) or net realizable value. Costs include direct material, direct labor and applicable manufacturing and engineering overhead, and other direct costs. The term net realizable value is defined as estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The Company evaluates product lines on a quarterly basis to identify inventory carrying values that exceed estimated net realizable value. The calculation of a resulting reserve, if any, is recognized as an expense in the period that the need for the reserve is identified. It is the Company’s general policy to write-down to scrap value any inventory that is identified as slow-moving or aged more than twelve months, subject to sales, backlog and anticipated order considerations. In some instances this aging criterion is up to twenty-four months. Inventory valuation reserves also include amounts pertaining to intercompany profit elimination between different subsidiaries. |
Long-Lived Assets | Long-Lived Assets Property, plant and equipment are recorded at cost, including capitalized interest, and include long-lived assets acquired under finance leases. Depreciation is primarily recorded using the straight-line method. The Company periodically reviews estimates of useful life and production capacity assigned to new and in service assets. Significant enhancements, including major maintenance activities that extend the lives of property and equipment, are capitalized. Costs related to repairs and maintenance are charged to expense in the period incurred. The cost and related accumulated depreciation of property and equipment retired or disposed of are removed from the accounts and any related gains or losses are included in income. The Company monitors the recoverability of the carrying value of its long-lived assets. An impairment charge is recognized when an indicator of impairment occurs and the expected net undiscounted future cash flows from an asset’s use (including any proceeds from disposition) are less than the asset’s carrying value and the asset’s carrying value exceeds its fair value. If an impairment loss is recognized, the adjusted carrying value of the long-lived asset is its new cost basis and this new cost basis is depreciated over the remaining useful life of the asset. Assets to be disposed of by sale are stated at the lower of their fair values or carrying amounts and depreciation is no longer recognized. |
Leases | Leases The Company classifies leases as either operating or financing, and records a right-of-use (ROU) asset and a lease liability on the consolidated balance sheets as further discussed below. The lease liability is equal to the present value of the minimum lease payments for the term of the lease, including any optional renewal periods determined to be reasonably certain to be exercised, using the discount rate determined at lease commencement. This discount rate is the rate implicit in the lease, if known; otherwise, the incremental borrowing rate (IBR) for the expected lease term is used. The Company’s IBRs approximate the rate the Company would have to pay to borrow on a collateralized basis over a similar term at lease inception. The ROU asset is equal to the initial measurement of the lease liability plus any lease payments made to the lessor at or before the commencement date and any unamortized initial direct costs incurred by the lessee, less any unamortized lease incentives received. The Company has elected to not separate lease components from non-lease components for all asset classes, and has made an accounting policy election to apply the short-term exception, which does not require the capitalization of leases with terms of 12 months or less. The Company has lease contracts for real property and machinery and equipment. At inception of a contract, the Company determines whether the contract is or contains a lease. If the Company has a right to obtain substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the asset, then the contract contains a lease. Several of the Company’s real property lease contracts include options to extend the lease term, and the Company reassesses the likelihood of renewal on at least an annual basis. In addition, several real property leases include variable lease payments, for items such as common area maintenance and utilities, which are expensed as incurred as variable lease expense. There are two types of leases: operating leases and finance leases. Lease classification is determined at lease commencement. A finance lease exists when specific criteria are met that indicate that all the risk and rewards related to the leased assets are transferred to the lessee. All other leases not meeting the finance lease criteria are classified as operating leases. Operating lease expense is recognized on a straight-line basis on the consolidated statement of operations. Finance leases have front-loaded expense recognition which is reported as amortization expense and interest expense on the consolidated statement of operations. ROU assets for operating leases are classified in other long-term assets property, plant and equipment other current liabilities other long-term liabilities short-term debt long-term debt |
Goodwill | Goodwill Goodwill is reviewed annually for impairment, or more frequently if impairment indicators arise. The review for goodwill impairment requires a comparison of the fair value of each reporting unit that has goodwill associated with its operations with its carrying amount, including goodwill. If this comparison reflects impairment, then the loss would be measured as the excess of the carrying value over the calculated fair value. Generally accepted accounting principles provide the option to qualitatively assess goodwill for impairment before completing a quantitative assessment. Under the qualitative approach, if, after assessing the totality of events or circumstances, including both macroeconomic, industry and market factors, and entity-specific factors, the Company determines it is likely (more likely than not) that the fair value of a reporting unit is greater than its carrying amount, then the quantitative impairment analysis is not required. The quantitative assessment may be performed each year for a reporting unit at the Company’s option without first performing a qualitative assessment. The Company’s quantitative assessment of goodwill for possible impairment includes estimating the fair market value of a reporting unit which has goodwill associated with its operations using discounted cash flow and multiples of cash earnings valuation techniques, plus valuation comparisons to recent public sale transactions of similar businesses, if any. These impairment assessments and valuation methods require the Company to make estimates and assumptions regarding revenue growth, changes in working capital and capital expenditures, selling prices and profitability that drive cash flows, and the weighted average cost of capital. Many of these assumptions are determined by reference to market participants identified by the Company. Although management believes that the estimates and assumptions used were reasonable, actual results could differ from those estimates and assumptions. Other events and changes in circumstances may also require goodwill to be tested for impairment between annual measurement dates. While a decline in stock price and market capitalization is not specifically cited as a goodwill impairment indicator, a company’s stock price and market capitalization should be considered in determining whether it is more likely than not that the fair value of a reporting unit is less that its carrying value. Additionally, a significant decline in a company’s stock price may suggest that an adverse change in the business climate may have caused the fair value of one or more reporting units to fall below carrying value. A sustained decline in market capitalization below book value may be determined to require an interim goodwill impairment review. |
Environmental | Environmental Costs that mitigate or prevent future environmental contamination or extend the life, increase the capacity or improve the safety or efficiency of property utilized in current operations are capitalized. Other costs that relate to current operations or an existing condition caused by past operations are expensed. Environmental liabilities are recorded when the Company’s liability is probable and the costs are reasonably estimable, but generally not later than the completion of the feasibility study or the Company’s recommendation of a remedy or commitment to an appropriate plan of action. The accruals are reviewed periodically and, as investigations and remediations proceed, adjustments of the accruals are made to reflect new information as appropriate. Accruals for losses from environmental remediation obligations are not discounted to their present value. The accruals are not reduced by possible recoveries from insurance carriers or other third parties, but do reflect allocations among potentially responsible parties (PRPs) at Federal Superfund sites or similar state-managed sites after an assessment is made of the likelihood that such parties will fulfill their obligations at such sites and after appropriate cost-sharing or other agreements are entered. The measurement of environmental liabilities by the Company is based on currently available facts, present laws and regulations, and current technology. Such estimates take into consideration the Company’s prior experience in site investigation and remediation, the data concerning cleanup costs available from other companies and regulatory authorities, and the professional judgment of the Company’s environmental experts in consultation with outside environmental specialists, when necessary. 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. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of international operations are translated into U.S. dollars using fiscal year-end exchange rates, while revenues and expenses are translated at average exchange rates during the period. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity. |
Sales Recognition | Sales Recognition The following is the Company’s accounting policy as it relates to Accounting Standards Codification Topic 606 (ASC 606), Contracts with Revenue from Customers. This guidance provides a five-step analysis of transactions to determine when and how revenue is recognized, and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The following is the Company’s accounting policy as it relates to the five-step analysis for revenue recognition: 1. Identify the contract : The Company has determined that the contract with the customer is established when the customer purchase order is accepted or acknowledged. Long-term agreements (LTAs), which typically extend multiple years, are used by the Company and certain of its customers for its specialty materials, in the form of mill products, powders, parts and components, to reduce their supply uncertainty. While these LTAs generally define commercial terms including pricing, termination clauses and other contractual requirements, they do not represent the contract with the customer. 2. Identify the performance obligation in the contract : When the Company accepts or acknowledges the customer purchase order, the type of good or service is defined on a line by line basis. Individual performance obligations are established by virtue of the individual line items identified on the sales order acknowledgment at the time of issuance. Generally, the Company’s revenue relates to the sale of goods and contains a single performance obligation for each distinct good. Conversion services that transform customer-owned inventory to a different dimension, product form, and/or changed mechanical properties are classified as “goods”. 3. Determine the transaction price : Pricing is also defined on a sales order acknowledgment on a line item basis and includes an estimate of variable consideration when required by the terms of the individual customer contract. Variable consideration is when the selling price of the good is not known or is subject to adjustment under certain conditions. Types of variable consideration may include volume discounts, customer rebates and surcharges. ATI also provides assurances that goods or services will meet the product specifications contained within the acknowledged customer contract. As such, returns and refunds reserves are estimated based upon past product line history or, at certain locations, on a claim by claim basis. 4. Allocate the transaction price to the performance obligation : Since a customer contract generally contains only one performance obligation, this step of the analysis is generally not applicable to the Company. 5. Recognize revenue when or as the performance obligation is satisfied : Performance obligations generally occur at a point in time and are satisfied when control passes to the customer. For most transactions, control passes at the time of shipment in accordance with agreed upon delivery terms. On occasion, shipping and handling charges occur after the customer obtains control of the good. When this occurs, the shipping and handling services are considered activities to fulfill the promise to transfer the good. Certain customer agreements involving production of parts and components require revenue to be recognized over time due to there being no alternative use for the product without significant economic loss and an enforceable right to payment including a normal profit margin from the customer in the event of contract termination. The Company uses an input method for determining the amount of revenue, and associated standard cost, to recognize over-time revenue, cost and gross margin for these customer agreements. The input methods used for these agreements include costs incurred and labor hours expended, both of which give an accurate representation of the progress made toward complete satisfaction of that particular performance obligation. Contract assets are recognized when ATI’s conditional right to consideration for goods or services have transferred to the customer. A conditional right indicates that additional performance obligations associated with the contract are yet to be satisfied. Contract assets are assessed separately for impairment purposes. If ATI’s right to consideration from the customer is unconditional, this asset is accounted for as a receivable and presented separately from other contract assets. A right is unconditional if nothing other than the passage of time is required before payment of that consideration is due. Performance obligations that are recognized as revenue at a point-in-time and are billed to the customer are recognized as accounts receivable. Payment terms vary from customer to customer depending upon credit worthiness, prior payment history and other credit considerations. Contract costs are the incremental costs of obtaining and fulfilling a contract (i.e., costs that would not have been incurred if the contract had not been obtained) to provide goods and services to customers. Contract costs for ATI largely consist of design and development costs for molds, dies and other tools that ATI will own and that will be used in producing the products under the supply arrangement. Contract costs are classified as non-current assets and amortized to expense on a systematic and rational basis over a period consistent with the transfer to the customer of the goods or services to which the asset relates. Contract liabilities are recognized when ATI has received consideration from a customer to transfer goods or services at a future point in time when the Company performs under the contract. Elements of variable consideration discussed above may be recorded as contract liabilities. In addition, progress billings and advance payments from customers for costs incurred to date are also reported as contract liabilities. |
Research and Development | Research and Development Research, development and technical service activities are closely interrelated and are directed toward development of new products, improvement of existing products, cost reduction, process improvement and control, quality assurance and control, development of new manufacturing methods, and improvement of existing manufacturing methods. Research and development costs are expensed as incurred. Company funded research and development costs were $20.7 million in fiscal year 2023, $16.3 million in fiscal year 2022, and $16.5 million in fiscal year 2021. Customer funded research and development costs were $1.4 million in fiscal year 2023, $1.4 million in fiscal year 2022, and $3.5 million in fiscal year 2021. |
Government Assistance | Government Assistance The Company enters into agreements with U.S. federal agencies, U.S. state and local governments, and foreign governments that provide financial assistance and incentives supporting both new capital projects to expand and enhance manufacturing capabilities and also to sustain and maintain existing operations. Depending on the nature of the government program, the financial impacts may be recorded as a reduction to cost of sales through direct offset of labor and overhead costs or lower depreciation expense, or as a reduction of selling, general and administrative expenses for property tax abatement or other similar categories. Benefits from government assistance are recognized as the activities are incurred, subject to ongoing assessments of meeting other relevant terms such as employment or expenditure levels. In November 2021, ATI entered into an agreement with the U.S. Department of Transportation under the Aviation Manufacturing Jobs Protection (AMJP) program for a grant of up to $22.2 million. The receipt of the award was primarily conditioned upon the Company committing to not furlough or lay off a defined group of employees in the High Performance Materials & Components (HPMC) segment operations during the six-month period of performance between November 2021 and May 2022. The AMJP grant benefit was recognized over the six-month performance period as a reduction to cost of sales in proportion to the compensation expense that the award was intended to defray, with $16.6 million recognized in fiscal year 2022 operating results. Cash receipts from the AMJP program were $11.0 million in fiscal year 2022, and this program is now completed. ATI is a party to various U.S. states’ economic development incentive programs that provide economic benefits in the forms of property tax relief or cash payments to offset capital expenditures. These programs generally include requirements for levels of capital spending and/or employment to qualify for the government assistance. For the fiscal years ended December 31, 2023 and January 1, 2023, these state-level programs reduced selling, general and administrative expenses by $1.4 million and $1.6 million, respectively, and cash receipts were $3.4 million and $2.8 million, respectively. Receivables for ongoing programs are $1.2 million and $3.7 million as of December 31, 2023 and January 1, 2023, respectively. |
Stock-based Compensation | Stock-based Compensation The Company accounts for stock-based compensation transactions, such as nonvested restricted stock or stock units and performance equity awards, using fair value. Compensation expense for an award is estimated at the date of grant and is recognized over the requisite service period. Compensation expense is adjusted for equity awards that do not vest because service or performance conditions are not satisfied. However, compensation expense already recognized on plans which vest based solely on the attainment of market conditions, such as total shareholder return measures, is not adjusted based on the award attainment status at the end of the measurement period. Compensation expense is adjusted for estimated forfeitures over the award measurement period. |
Income Taxes | Income Taxes The provision for, or benefit from, income taxes includes deferred taxes resulting from temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback and/or carryforward period available under tax law. The Company evaluates on a quarterly basis whether, based on all available evidence, it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is estimated that it is more likely than not that the tax benefit of the deferred tax asset will not be realized. The evaluation includes the consideration of all available evidence, both positive and negative, regarding the estimated future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards, historical taxable income in prior carryback periods if carryback is permitted, and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. The verifiable evidence such as future reversals of existing temporary differences and the ability to carryback are considered before the subjective sources such as estimated future taxable income exclusive of temporary differences and tax planning strategies. It is the Company’s policy to classify interest and penalties recognized on underpayment of income taxes as income tax expense. It is also the Company’s policy to recognize deferred tax amounts stranded in accumulated other comprehensive income (AOCI), which result from tax rate differences on changes in AOCI balances, as an element of income tax expense in the period that the related balance sheet item associated with the AOCI balance ceases to exist. In the case of derivative financial instruments accounted for as hedges, or marketable securities, ATI uses the portfolio method where the stranded deferred tax amount is recognized when all items of a particular category, such as cash flow hedges of a particular risk such as a foreign currency hedge, are settled. In the case of defined benefit pension and other postretirement benefit plans, the stranded deferred tax balance is recognized as an element of income tax expense in the period the benefit plan is extinguished or divested. |
Net Income Per Common Share | Net Income Per Common Share Basic and diluted net income per share are calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the fiscal year. Diluted amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding. The calculations of all diluted income/loss per share figures for a period exclude the potentially dilutive effect of dilutive share equivalents if there is a net loss since the inclusion in the calculation of additional shares in the net loss per share would result in a lower per share loss and therefore be anti-dilutive. |
New Accounting Pronouncements Adopted and Pending Accounting Pronouncements | New Accounting Pronouncements Adopted In August 2020, the Financial Accounting Standards Board (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 was effective for the Company in fiscal year 2022, with early adoption permitted. The Company early adopted this new accounting guidance related to accounting for convertible instruments effective January 4, 2021 using the modified transition approach with the cumulative effect recognized as an adjustment to the opening balance of retained earnings. This new guidance was 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 4, 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 no longer included the non-cash interest expense of the equity component as required under prior accounting standards and is 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. In September 2022, the FASB issued new accounting guidance related to disclosures about supplier finance programs. Supplier finance programs allow a buyer to offer its suppliers the option for access to payment in advance of an invoice due date, which is paid by a third-party finance provider or intermediary on the basis of invoices that the buyer has confirmed as valid. This new guidance requires a buyer in a supplier finance program to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude, using both qualitative and quantitative information about its supplier finance programs. This new guidance, with the exception of disclosures on rollforward information, is effective for the Company in fiscal year 2023. The Company adopted this new accounting guidance effective January 2, 2023. The rollforward information disclosures are effective for the Company in fiscal year 2024, with early adoption permitted. The Company did not early adopt this guidance. The adoption of these changes did not have an impact on the Company’s consolidated financial statements other than disclosure requirements which are included in Note 9. Pending Accounting Pronouncements In November 2023, the FASB issued new accounting guidance related to segment reporting disclosures. This guidance requires additional disclosures on an annual and interim basis of segment information, including significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and the presentation and composition of other segment items, which is the difference between segment revenue less segment expenses and the measure of segment profit or loss. The guidance also requires that all current segment disclosures required on an annual basis be provided on an interim basis and requires disclosure of the title and position of the CODM and how the CODM uses the reported measure of segment profit or loss in assessing performance and allocating resources. This guidance does not change how an entity identifies its reportable segments. This new guidance for annual disclosures will be effective for the Company for fiscal year 2024 and for interim disclosures will be effective for the Company for fiscal year 2025. The guidance must be applied retrospectively and early adoption is permitted. The Company does not expect to early adopt this guidance and does not expect these changes to have an impact on the Company’s consolidated financial statements other than disclosure requirements. |
Asset Retirement Obligations | Asset Retirement Obligations The Company maintains reserves where a legal obligation exists to perform an asset retirement activity and the fair value of the liability can be reasonably estimated. These asset retirement obligations (AROs) include liabilities where the timing and (or) method of settlement may be conditional on a future event, that may or may not be within the control of the entity. At December 31, 2023, the Company had recognized AROs of $18.3 million related to landfill closures, decommissioning costs, facility leases and conditional AROs associated with manufacturing activities using what may be characterized as potentially hazardous materials. Estimates of AROs are evaluated annually in the fourth quarter, or more frequently if material new information becomes known. Accounting for asset retirement obligations requires significant estimation and in certain cases, the Company has determined that an ARO exists, but the amount of the obligation is not reasonably estimable. The Company may determine that additional AROs are required to be recognized as new information becomes available. |
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 December 31, 2023, 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 4 million pounds of nickel with hedge dates through fiscal year 2024. The aggregate notional amount hedged is approximately 6% of a single year’s estimated nickel raw material purchase requirements. These derivative instruments are used to hedge the variability of a selling price that is based on the London Metals Exchange (LME) index for nickel, as well as to hedge the variability of the purchase cost of nickel based on this LME index. Any gain or loss associated with these hedging arrangements is included in sales or cost of sales, depending on whether the underlying risk being hedged was the variable selling price or the variable raw material cost, respectively. At December 31, 2023, the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges. At December 31, 2023, the company hedged approximately 75% of the Company’s annual forecasted domestic requirements for natural gas for fiscal year 2024 and approximately 35% for fiscal year 2025. 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. 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 December 31, 2023, 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 that matures in June 2024 which converts a portion of the ABL Term Loan to a 4.21% fixed rate. 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 ABL Term Loan borrowings. The ineffective portion at hedge inception, determined from the fair value of the swap immediately prior to amendment in July 2019, was amortized to interest expense over the initial ABL 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 were 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. 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 |
Pension Plans and Other Postretirement 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 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. |
Asset Retirement Obligations (P
Asset Retirement Obligations (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations The Company maintains reserves where a legal obligation exists to perform an asset retirement activity and the fair value of the liability can be reasonably estimated. These asset retirement obligations (AROs) include liabilities where the timing and (or) method of settlement may be conditional on a future event, that may or may not be within the control of the entity. At December 31, 2023, the Company had recognized AROs of $18.3 million related to landfill closures, decommissioning costs, facility leases and conditional AROs associated with manufacturing activities using what may be characterized as potentially hazardous materials. Estimates of AROs are evaluated annually in the fourth quarter, or more frequently if material new information becomes known. Accounting for asset retirement obligations requires significant estimation and in certain cases, the Company has determined that an ARO exists, but the amount of the obligation is not reasonably estimable. The Company may determine that additional AROs are required to be recognized as new information becomes available. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
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 December 31, 2023, 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 4 million pounds of nickel with hedge dates through fiscal year 2024. The aggregate notional amount hedged is approximately 6% of a single year’s estimated nickel raw material purchase requirements. These derivative instruments are used to hedge the variability of a selling price that is based on the London Metals Exchange (LME) index for nickel, as well as to hedge the variability of the purchase cost of nickel based on this LME index. Any gain or loss associated with these hedging arrangements is included in sales or cost of sales, depending on whether the underlying risk being hedged was the variable selling price or the variable raw material cost, respectively. At December 31, 2023, the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges. At December 31, 2023, the company hedged approximately 75% of the Company’s annual forecasted domestic requirements for natural gas for fiscal year 2024 and approximately 35% for fiscal year 2025. 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. 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 December 31, 2023, 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 that matures in June 2024 which converts a portion of the ABL Term Loan to a 4.21% fixed rate. 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 ABL Term Loan borrowings. The ineffective portion at hedge inception, determined from the fair value of the swap immediately prior to amendment in July 2019, was amortized to interest expense over the initial ABL 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 were 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. 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 |
Commitment and Contingencies (P
Commitment and Contingencies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental | Environmental Costs that mitigate or prevent future environmental contamination or extend the life, increase the capacity or improve the safety or efficiency of property utilized in current operations are capitalized. Other costs that relate to current operations or an existing condition caused by past operations are expensed. Environmental liabilities are recorded when the Company’s liability is probable and the costs are reasonably estimable, but generally not later than the completion of the feasibility study or the Company’s recommendation of a remedy or commitment to an appropriate plan of action. The accruals are reviewed periodically and, as investigations and remediations proceed, adjustments of the accruals are made to reflect new information as appropriate. Accruals for losses from environmental remediation obligations are not discounted to their present value. The accruals are not reduced by possible recoveries from insurance carriers or other third parties, but do reflect allocations among potentially responsible parties (PRPs) at Federal Superfund sites or similar state-managed sites after an assessment is made of the likelihood that such parties will fulfill their obligations at such sites and after appropriate cost-sharing or other agreements are entered. The measurement of environmental liabilities by the Company is based on currently available facts, present laws and regulations, and current technology. Such estimates take into consideration the Company’s prior experience in site investigation and remediation, the data concerning cleanup costs available from other companies and regulatory authorities, and the professional judgment of the Company’s environmental experts in consultation with outside environmental specialists, when necessary. 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of the Effect of Change in the Accounting Principle on the Consolidated Financial Statements | The following table reflects the effect of the change in the accounting principle on the consolidated financial statements: For the Fiscal Year Ending December 31, 2023 As Computed Under Previous Policy As Reported under New Policy Effect of Accounting Change (dollars in millions, except per share data) Statement of Operations Nonoperating retirement benefit expense $ (1,036.6) $ (79.7) $ 956.9 Income (loss) before income taxes $ (661.7) $ 295.2 $ 956.9 Income tax benefit $ (342.5) $ (128.2) $ 214.3 Net income (loss) $ (319.2) $ 423.4 $ 742.6 Net income (loss) attributable to ATI $ (331.8) $ 410.8 $ 742.6 Basic net income (loss) per common share $ (2.59) $ 3.21 $ 5.80 Diluted net income (loss) per common share $ (2.59) $ 2.81 $ 5.40 Statement of Comprehensive Income (Loss) Net income (loss) $ (319.2) $ 423.4 $ 742.6 Postretirement benefit plans Actuarial gain/ loss Amortization of net actuarial loss $ 55.7 $ 6.0 $ (49.7) Net loss arising during the period $ (71.4) $ (3.8) $ 67.6 Settlement loss included in net income (loss) $ 975.9 $ 1.1 $ (974.8) Income taxes on postretirement benefits $ 214.6 $ 0.3 $ (214.3) Total $ 745.0 $ 2.4 $ (742.6) Other comprehensive income (loss), net of tax $ 726.4 $ (16.2) $ (742.6) Balance Sheet Retained loss $ (154.9) $ (70.1) $ 84.8 Accumulated other comprehensive income (loss), net of tax $ 1.6 $ (83.2) $ (84.8) Statement of Cash Flows Operating Activities: Net income (loss) $ (319.2) $ 423.4 $ 742.6 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred taxes $ (352.5) $ (138.2) $ 214.3 Change in operating assets and liabilities: Retirement benefits $ 1,010.7 $ 53.8 $ (956.9) Statements of Changes in Consolidated Equity Retained Loss Net income (loss) $ (331.8) $ 410.8 $ 742.6 Balance, December 31, 2023 $ (154.9) $ (70.1) $ 84.8 Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) $ 726.8 $ (15.8) $ (742.6) Balance, December 31, 2023 $ 1.6 $ (83.2) $ (84.8) Total Equity Net income (loss) $ (319.2) $ 423.4 $ 742.6 Other comprehensive income (loss) $ 726.4 $ (16.2) $ (742.6) For the Fiscal Year Ending January 1, 2023 As Computed Under Previous Policy As Reported under New Policy Effect of Accounting Change (dollars in millions, except per share data) Statement of Operations Loss on asset sales and sales of businesses, net $ 134.2 $ 105.4 $ (28.8) Operating income $ 287.3 $ 316.1 $ 28.8 Nonoperating retirement benefit income (expense) $ (25.4) $ 138.4 $ 163.8 Income before income taxes $ 162.0 $ 354.6 $ 192.6 Net income $ 146.5 $ 339.1 $ 192.6 Net income attributable to ATI $ 130.9 $ 323.5 $ 192.6 Basic net income per common share $ 1.03 $ 2.54 $ 1.51 Diluted net income per common share $ 0.96 $ 2.23 $ 1.27 Statement of Comprehensive Income (Loss) Net income $ 146.5 $ 339.1 $ 192.6 Postretirement benefit plans Actuarial gain/loss Amortization of net actuarial loss $ 76.7 $ 13.2 $ (63.5) Net gain arising during the period $ 155.0 $ 54.7 $ (100.3) Settlement loss included in net income $ 29.5 $ 0.7 $ (28.8) Total $ 260.7 $ 68.1 $ (192.6) Other comprehensive income, net of tax $ 248.2 $ 55.6 $ (192.6) Balance Sheet Retained earnings (loss) $ 176.9 $ (480.9) $ (657.8) Accumulated other comprehensive loss, net of tax $ (725.2) $ (67.4) $ 657.8 Statement of Cash Flows Operating Activities: Net income $ 146.5 $ 339.1 $ 192.6 Adjustments to reconcile net income to net cash provided by operating activities: Net loss from sales of businesses $ 141.0 $ 112.2 $ (28.8) Change in operating assets and liabilities: Retirement benefits $ 4.6 $ (159.2) $ (163.8) Statements of Changes in Consolidated Equity Retained Earnings (Loss) Net income $ 130.9 $ 323.5 $ 192.6 Balance, January 1, 2023 $ 176.9 $ (480.9) $ (657.8) Accumulated Other Comprehensive Income (Loss) Other comprehensive income $ 266.5 $ 73.9 $ (192.6) Balance, January 1, 2023 $ (725.2) $ (67.4) $ 657.8 Total Equity Net income $ 146.5 $ 339.1 $ 192.6 Other comprehensive income $ 248.2 $ 55.6 $ (192.6) For the Fiscal Year Ending January 2, 2022 As Computed Under Previous Policy As Reported under New Policy Effect of Accounting Change (dollars in millions, except per share data) Statement of Operations Nonoperating retirement benefit income $ 37.2 $ 260.0 $ 222.8 Income before income taxes $ 10.6 $ 233.4 $ 222.8 Net income (loss) $ (16.2) $ 206.6 $ 222.8 Net income (loss) attributable to ATI $ (38.2) $ 184.6 $ 222.8 Basic net income (loss) per common share $ (0.30) $ 1.45 $ 1.75 Diluted net income (loss) per common share $ (0.30) $ 1.32 $ 1.62 Statement of Comprehensive Income (Loss) Net income (loss) $ (16.2) $ 206.6 $ 222.8 Postretirement benefit plans Actuarial gain/loss Amortization of net actuarial loss $ 89.5 $ 13.9 $ (75.6) Net gain arising during the period $ 155.9 $ 8.7 $ (147.2) Total $ 237.2 $ 14.4 $ (222.8) Other comprehensive income, net of tax $ 236.7 $ 13.9 $ (222.8) Balance Sheet Retained earnings (loss) $ 72.7 $ (777.7) $ (850.4) Accumulated other comprehensive loss, net of tax $ (991.7) $ (141.3) $ 850.4 Statement of Cash Flows Operating Activities: Net income (loss) $ (16.2) $ 206.6 $ 222.8 Change in operating assets and liabilities: Retirement benefits $ (39.1) $ (261.9) $ (222.8) Statements of Changes in Consolidated Equity Retained Earnings (Loss) Net income (loss) $ (38.2) $ 184.6 $ 222.8 Cumulative effect of change in accounting principle $ — $ (1,073.2) $ (1,073.2) Balance, January 2, 2022 $ 72.7 $ (777.7) $ (850.4) Accumulated Other Comprehensive Income (Loss) Other comprehensive income $ 231.9 $ 9.1 $ (222.8) Cumulative effect of change in accounting principle $ — $ 1,073.2 $ 1,073.2 Balance, January 2, 2022 $ (991.7) $ (141.3) $ 850.4 Total Equity Net income (loss) $ (16.2) $ 206.6 $ 222.8 Other comprehensive income $ 236.7 $ 13.9 $ (222.8) Below reflects the quarterly impact of the change in accounting principle on our quarterly financial data presented: (dollars in millions, except per share data) As Computed Under Previous Policy As Reported Under New Policy Effect of Accounting Change Three months ended April 2, 2023 Net income $ 72.2 $ 86.6 $ 14.4 Net income attributable to ATI $ 70.1 $ 84.5 $ 14.4 Basic income attributable to ATI per common share* $ 0.55 $ 0.66 $ 0.11 Diluted income attributable to ATI per common share* $ 0.48 $ 0.58 $ 0.10 Three months ended July 2, 2023 Net income $ 79.1 $ 93.5 $ 14.4 Net income attributable to ATI $ 76.0 $ 90.4 $ 14.4 Basic income attributable to ATI per common share* $ 0.59 $ 0.70 $ 0.11 Diluted income attributable to ATI per common share* $ 0.52 $ 0.62 $ 0.10 Three months ended October 1, 2023 Net income $ 79.6 $ 94.1 $ 14.5 Net income attributable to ATI $ 75.7 $ 90.2 $ 14.5 Basic income attributable to ATI per common share* $ 0.59 $ 0.70 $ 0.11 Diluted income attributable to ATI per common share* $ 0.52 $ 0.62 $ 0.10 Three months ended December 31, 2023 Net income (loss) $ (550.1) $ 149.2 $ 699.3 Net income (loss) attributable to ATI $ (553.6) $ 145.7 $ 699.3 Basic income (loss) attributable to ATI per common share* $ (4.35) $ 1.15 $ 5.50 Diluted income (loss) attributable to ATI per common share* $ (4.35) $ 0.99 $ 5.34 (dollars in millions, except per share data) As Computed Under Previous Policy As Reported Under New Policy Effect of Accounting Change Three months ended April 3, 2022 Net income $ 35.2 $ 51.2 $ 16.0 Net income attributable to ATI $ 30.9 $ 46.9 $ 16.0 Basic income attributable to ATI per common share* $ 0.24 $ 0.37 $ 0.13 Diluted income attributable to ATI per common share* $ 0.23 $ 0.33 $ 0.10 Three months ended July 3, 2022 Operating income (loss) $ (11.6) $ 17.2 $ 28.8 Net income (loss) $ (34.3) $ 10.4 $ 44.7 Net income (loss) attributable to ATI $ (38.0) $ 6.7 $ 44.7 Basic income (loss) attributable to ATI per common share* $ (0.31) $ 0.05 $ 0.36 Diluted income (loss) attributable to ATI per common share* $ (0.31) $ 0.05 $ 0.36 Three months ended October 2, 2022 Net income $ 64.4 $ 80.2 $ 15.8 Net income attributable to ATI $ 61.1 $ 76.9 $ 15.8 Basic income attributable to ATI per common share* $ 0.47 $ 0.59 $ 0.12 Diluted income attributable to ATI per common share* $ 0.42 $ 0.53 $ 0.11 Three months ended January 1, 2023 Net income $ 81.2 $ 197.3 $ 116.1 Net income attributable to ATI $ 76.9 $ 193.0 $ 116.1 Basic income attributable to ATI per common share* $ 0.60 $ 1.49 $ 0.89 Diluted income attributable to ATI per common share* $ 0.53 $ 1.30 $ 0.77 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of sales by segment | Fiscal Year (In millions) 2023 2022 2021 Total sales: High Performance Materials & Components $ 2,302.0 $ 1,815.7 $ 1,248.3 Advanced Alloys & Solutions 2,336.9 2,433.7 1,762.4 Total sales 4,638.9 4,249.4 3,010.7 Intersegment sales: High Performance Materials & Components 181.8 174.5 93.2 Advanced Alloys & Solutions 283.4 238.9 117.7 Total intersegment sales 465.2 413.4 210.9 Sales to external customers: High Performance Materials & Components 2,120.2 1,641.2 1,155.1 Advanced Alloys & Solutions 2,053.5 2,194.8 1,644.7 Total sales to external customers $ 4,173.7 $ 3,836.0 $ 2,799.8 |
Schedule of operating profit (loss) by segment | Fiscal Year (In millions) 2023 2022 Revised 2021 Revised EBITDA: High Performance Materials & Components $ 433.6 $ 303.4 $ 170.3 Advanced Alloys & Solutions 276.6 375.3 246.8 Total segment EBITDA 710.2 678.7 417.1 Corporate expenses (62.3) (60.3) (53.7) Closed operations and other income (expenses) (13.3) (5.6) 3.1 Depreciation & amortization (146.1) (142.9) (143.9) Interest expense, net (92.8) (87.4) (96.9) Restructuring and other credits (charges) (See Note 19) (31.4) (23.7) 10.5 Strike related costs — — (63.2) Retirement benefit settlement gain (loss) (See Note 14) (41.7) — 64.9 Pension remeasurement gain (loss) (See Note 14) (26.8) 100.3 147.2 Joint venture restructuring credit (See Note 7) — 0.9 — Debt extinguishment charge (See Note 10) — — (65.5) Gain (loss) on asset sales and sale of business, net (0.6) (105.4) 13.8 Income before income taxes $ 295.2 $ 354.6 $ 233.4 |
Schedule of other financial information by segment | Certain additional information regarding the Company’s business segments is presented below: Fiscal Year (In millions) 2023 2022 2021 Depreciation and amortization: High Performance Materials & Components $ 71.1 $ 68.3 $ 75.0 Advanced Alloys & Solutions 67.9 67.4 64.5 Other 7.1 7.2 4.4 Total depreciation and amortization $ 146.1 $ 142.9 $ 143.9 Capital expenditures: High Performance Materials & Components $ 100.4 $ 33.3 $ 40.2 Advanced Alloys & Solutions 97.2 89.6 110.6 Corporate 3.1 8.0 1.8 Total capital expenditures $ 200.7 $ 130.9 $ 152.6 Fiscal Year Identifiable assets: 2023 2022 2021 High Performance Materials & Components $ 1,990.9 $ 1,749.3 $ 1,624.8 Advanced Alloys & Solutions 1,996.7 1,981.1 1,914.0 Corporate: Deferred Taxes 135.7 4.7 6.3 Cash and cash equivalents and other 861.8 710.5 740.1 Total assets $ 4,985.1 $ 4,445.6 $ 4,285.2 |
Schedule of company assets by country | Fiscal Year Fiscal Year Fiscal Year ($ in millions) 2023 Percent 2022 Percent 2021 Percent Total assets: United States $ 4,463.7 90 % $ 3,942.7 89 % $ 3,587.0 84 % China 295.8 6 % 321.1 7 % 406.4 9 % United Kingdom 16.9 — % 13.4 — % 153.9 4 % Other 208.7 4 % 168.4 4 % 137.9 3 % Total Assets $ 4,985.1 100 % $ 4,445.6 100 % $ 4,285.2 100 % |
Restructuring and Related Activ
Restructuring and Related Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring reserves for severance cost activity is as follows: Severance and Employee Benefit Costs December 31, 2023 January 1, 2023 January 2, 2022 Beginning of fiscal year balance $ 9.8 $ 17.7 $ 43.4 Additions/(Adjustments) 7.7 (4.8) (12.0) Payments (2.3) (3.1) (13.7) End of fiscal year balance $ 15.2 $ 9.8 $ 17.7 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Other intangible assets, which are included in Other assets on the accompanying consolidated balance sheets as of December 31, 2023 and January 1, 2023 were as follows: December 31, 2023 January 1, 2023 (in millions) Gross Accumulated Gross Accumulated Technology $ 61.2 $ (38.6) $ 61.2 $ (35.4) Customer relationships 24.8 (12.6) 24.8 (11.6) Trademarks 48.8 (32.5) 48.8 (29.3) Total amortizable intangible assets $ 134.8 $ (83.7) $ 134.8 $ (76.3) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 is as follows: Fiscal Year (in millions) 2023 2022 2021 HPMC AA&S Total HPMC AA&S Total HPMC AA&S Total Diversified Global Markets: Aerospace & Defense: Jet-Engines- Commercial $ 1,255.3 $ 78.2 $ 1,333.5 $ 975.7 $ 87.8 $ 1,063.5 $ 480.9 $ 36.3 $ 517.2 Airframes- Commercial 350.6 388.8 739.4 184.1 284.8 468.9 132.8 129.9 262.7 Defense 181.0 220.9 401.9 158.2 183.0 341.2 221.8 131.0 352.8 Total Aerospace & Defense $ 1,786.9 $ 687.9 $ 2,474.8 $ 1,318.0 $ 555.6 $ 1,873.6 $ 835.5 $ 297.2 $ 1,132.7 Energy: Oil & Gas 10.6 404.0 414.6 35.0 441.7 476.7 42.2 290.1 332.3 Specialty Energy 93.9 179.3 273.2 113.6 163.0 276.6 136.1 123.5 259.6 Total Energy 104.5 583.3 687.8 148.6 604.7 753.3 178.3 413.6 591.9 Automotive 24.6 186.1 210.7 11.2 290.9 302.1 8.7 296.4 305.1 Medical 102.6 74.3 176.9 73.2 89.9 163.1 60.3 71.2 131.5 Construction/Mining 35.0 127.9 162.9 34.1 142.3 176.4 24.0 98.2 122.2 Electronics 3.1 156.8 159.9 2.4 197.6 200.0 1.2 213.9 215.1 Food Equipment & Appliances — 71.9 71.9 0.2 158.3 158.5 0.1 153.0 153.1 Other 63.5 165.3 228.8 53.5 155.5 209.0 47.0 101.2 148.2 Total $ 2,120.2 $ 2,053.5 $ 4,173.7 $ 1,641.2 $ 2,194.8 $ 3,836.0 $ 1,155.1 $ 1,644.7 $ 2,799.8 Fiscal Year (in millions) 2023 2022 2021 HPMC AA&S Total HPMC AA&S Total HPMC AA&S Total Primary Geographical Market: United States $ 915.3 $ 1,335.5 $ 2,250.8 $ 742.9 $ 1,475.7 $ 2,218.6 $ 571.3 $ 963.6 $ 1,534.9 China 70.1 263.2 333.3 59.8 292.0 351.8 49.5 320.9 370.4 United Kingdom 224.8 34.3 259.1 165.7 52.0 217.7 136.7 17.2 153.9 Germany 204.2 38.8 243.0 148.4 52.5 200.9 74.1 47.2 121.3 France 172.4 47.0 219.4 125.7 31.5 157.2 48.7 9.8 58.5 Mexico 102.3 25.4 127.7 56.7 23.4 80.1 25.6 37.6 63.2 Rest of World 431.1 309.3 740.4 342.0 267.7 609.7 249.2 248.4 497.6 Total $ 2,120.2 $ 2,053.5 $ 4,173.7 $ 1,641.2 $ 2,194.8 $ 3,836.0 $ 1,155.1 $ 1,644.7 $ 2,799.8 Comparative information of the Company’s major products based on their percentages of sales is included in the following table. HRPF conversion service sales in the AA&S segment are excluded from this presentation. Fiscal Year 2023 2022 2021 HPMC AA&S Total HPMC AA&S Total HPMC AA&S Total Diversified Products: Nickel-based alloys and specialty alloys 44 % 54 % 49 % 49 % 54 % 52 % 43 % 44 % 43 % Precision forgings, castings and components 33 % — % 17 % 34 % — % 15 % 38 % — % 16 % Titanium and titanium-based alloys 22 % 12 % 17 % 17 % 7 % 11 % 19 % 6 % 12 % Precision rolled strip 1 % 19 % 10 % — % 25 % 14 % — % 33 % 19 % Zirconium and related alloys — % 15 % 7 % — % 14 % 8 % — % 17 % 10 % Total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % |
Schedule of Accounts Receivable - Reserve for Doubtful Accounts | The following represents the rollforward of accounts receivable - reserve for doubtful accounts for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022: (in millions) Accounts Receivable - Reserve for Doubtful Accounts Balance as of January 3, 2021 $ 4.3 Expense to increase the reserve 0.3 Write-off of uncollectible accounts (0.8) Balance as of January 2, 2022 3.8 Expense to increase the reserve 4.6 Write-off of uncollectible accounts (0.7) Balance as of January 1, 2023 7.7 Expense to increase the reserve 0.1 Write-off of uncollectible accounts (4.6) Balance as of December 31, 2023 $ 3.2 |
Schedule of Contract Assets and Liabilities | The following represents the rollforward of contract assets and liabilities for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022: (in millions) Contract Assets Fiscal Year Short-term 2023 2022 2021 Balance as of beginning of fiscal year $ 64.1 $ 53.9 $ 38.9 Recognized in current year 84.1 105.0 93.8 Reclassified to accounts receivable (89.5) (88.0) (76.2) Reclassification to/from contract liability 0.4 (6.8) (2.6) Balance as of period end $ 59.1 $ 64.1 $ 53.9 (in millions) Contract Liabilities Fiscal Year Short-term 2023 2022 2021 Balance as of beginning of fiscal year $ 149.1 $ 116.2 $ 111.8 Recognized in current year 133.4 183.1 161.5 Amounts in beginning balance reclassified to revenue (107.9) (99.8) (85.1) Current year amounts reclassified to revenue (40.9) (72.3) (72.9) Divestiture — — (0.8) Other (0.7) 0.7 0.1 Reclassification to/from long-term and contract asset 30.6 21.2 1.6 Balance as of period end $ 163.6 $ 149.1 $ 116.2 Fiscal Year Long-term (a) 2023 2022 2021 Balance as of beginning of fiscal year $ 66.8 $ 84.4 $ 32.0 Recognized in current year 2.8 10.4 56.6 Reclassification to/from short-term (30.2) (28.0) (4.2) Balance as of period end $ 39.4 $ 66.8 $ 84.4 (a) Long-term contract liabilities are included in Other long-term liabilities on the consolidated balance sheets. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories at December 31, 2023 and January 1, 2023 were as follows (in millions): Fiscal Year 2023 2022 Raw materials and supplies $ 234.9 $ 213.6 Work-in-process 973.6 941.1 Finished goods 114.5 111.9 1,323.0 1,266.6 Inventory valuation reserves (75.5) (70.9) Total inventories, net $ 1,247.5 $ 1,195.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property plant and equipment, net | Property, plant and equipment at December 31, 2023 and January 1, 2023 was as follows: Fiscal Year (In millions) 2023 2022 Land $ 32.3 $ 31.5 Buildings 692.7 601.6 Equipment and leasehold improvements 3,024.3 2,895.5 3,749.3 3,528.6 Accumulated depreciation and amortization (2,083.4) (1,979.5) Total property, plant and equipment, net $ 1,665.9 $ 1,549.1 |
Schedule depreciation and amortization | Depreciation and amortization for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 was as follows: Fiscal Year (In millions) 2023 2022 2021 Depreciation of property, plant and equipment $ 117.4 $ 115.4 $ 117.4 Software and other amortization 28.7 27.5 26.5 Total depreciation and amortization $ 146.1 $ 142.9 $ 143.9 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of changes in asset retirement obligations | Changes in asset retirement obligations for the years ended December 31, 2023 and January 1, 2023 were as follows: Fiscal Year (In millions) 2023 2022 Balance at beginning of fiscal year $ 17.8 $ 19.0 Accretion expense 0.7 0.8 Payments (0.2) (2.0) Balance at end of fiscal year $ 18.3 $ 17.8 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Additional Financial Information Disclosure [Abstract] | |
Schedule of cash and cash equivalents | Cash and cash equivalents at December 31, 2023 and January 1, 2023 were as follows: Fiscal Year (In millions) 2023 2022 Cash $ 329.8 $ 164.9 Other short-term investments 414.1 419.1 Total cash and cash equivalents $ 743.9 $ 584.0 |
Schedule of other non-operating income (expense) | Other income (expense) for the fiscal years ended December 31, 2023, January 1, 2023, and January 2, 2022 was as follows: Fiscal Year (in millions) 2023 2022 2021 Rent, royalty income and other income $ 2.6 $ 2.3 $ 1.1 Gains from disposal of property, plant and equipment, net 0.3 0.2 2.9 Net equity income (loss) on joint ventures (See Note 7) (1.6) 12.6 0.1 Gain on sales of businesses, net (See Note 6) — — 13.8 Joint venture restructuring credit (charge) (See Note 7) — 0.9 — Litigation settlement (See Note 21) — (28.5) — Other — — 0.3 Total other income (expense), net $ 1.3 $ (12.5) $ 18.2 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt at December 31, 2023 and January 1, 2023 was as follows: Fiscal Year (In millions) 2023 2022 ATI Inc. 7.25% Notes due 2030 $ 425.0 $ — ATI Inc. 5.875% Senior Notes due 2027 350.0 350.0 ATI Inc. 5.125% Senior Notes due 2031 350.0 350.0 ATI Inc. 4.875% Notes due 2029 325.0 325.0 ATI Inc. 3.5% Convertible Senior Notes due 2025 291.4 291.4 Allegheny Ludlum 6.95% Debentures due 2025 (a) 150.0 150.0 ABL Term Loan 200.0 200.0 U.S. revolving credit facility — — Foreign credit agreements 5.0 19.4 Finance leases and other 102.8 79.4 Debt issuance costs (19.6) (17.2) Total short-term and long-term debt 2,179.6 1,748.0 Short-term debt and current portion of long-term debt 31.9 41.7 Total long-term debt $ 2,147.7 $ 1,706.3 (a) The payment obligations of these debentures issued by Allegheny Ludlum, LLC are fully and unconditionally guaranteed by ATI. |
Interest Income and Interest Expense Disclosure | Interest expense on the 2025 Convertible Notes was as follows: Fiscal Year (in millions) 2023 2022 2021 Contractual coupon rate $ 10.2 $ 10.2 $ 10.2 Amortization of debt issuance costs 1.9 1.8 1.7 Total interest expense $ 12.1 $ 12.0 $ 11.9 Fiscal Year (in millions) 2022 2021 Contractual coupon rate $ 2.0 $ 4.0 Amortization of debt issuance costs 0.3 0.5 Total interest expense $ 2.3 $ 4.5 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Cost Components | The following represents the components of lease cost and other information for both operating and financing leases for the fiscal years 2023, 2022 and 2021: ($ in millions) Fiscal Year 2023 2022 2021 Lease Cost Finance Lease Cost: Amortization of right of use asset $ 10.9 $ 8.9 $ 7.1 Interest on lease liabilities 4.6 4.1 3.1 Operating lease cost 17.6 16.4 22.7 Short-term lease cost 4.5 2.9 1.6 Variable lease cost 1.0 1.0 0.9 Sublease income (0.4) — (0.3) Total lease cost $ 38.2 $ 33.3 $ 35.1 Other information Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from finance leases $ 4.6 $ 4.1 $ 3.0 Operating cash flows from operating leases $ 16.8 $ 17.4 $ 20.0 Financing cash flows from finance leases $ 24.9 $ 20.9 $ 14.3 Right of use assets obtained in exchange for new finance lease liabilities $ 54.6 $ 15.3 $ 58.9 Right of use assets obtained in exchange for new operating lease liabilities $ 25.8 $ 18.0 $ 4.8 Weighted average remaining lease term - finance leases 4 years 4 years 5 years Weighted average remaining lease term - operating leases 7 years 6 years 5 years Weighted average discount rate - finance leases 5.4 % 5.6 % 5.2 % Weighted average discount rate - operating leases 7.1 % 6.8 % 6.5 % |
Schedule of Operating Lease Liability Maturities | The following table reconciles future minimum undiscounted rental commitments for operating leases to the operating lease liabilities recorded on the consolidated balance sheet as of December 31, 2023 (in millions): Fiscal Year December 31, 2023 2024 $ 17.0 2025 14.4 2026 13.2 2027 10.4 2028 8.2 2029 and thereafter 24.9 Total undiscounted lease payments $ 88.1 Present value adjustment (19.4) Operating lease liabilities $ 68.7 |
Schedule of Finance Lease Liability Maturities | The following table reconciles future minimum undiscounted rental commitments for finance leases to the finance lease liabilities recorded on the consolidated balance sheet as of December 31, 2023 (in millions): Fiscal Year December 31, 2023 2024 $ 32.4 2025 27.8 2026 20.8 2027 16.9 2028 10.5 2029 and thereafter 9.1 Total undiscounted lease payments $ 117.5 Present value adjustment (15.3) Finance lease liabilities $ 102.2 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | 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) December 31, January 1, 2023 Asset derivatives Balance sheet location Derivatives designated as hedging instruments: Interest rate swap Prepaid expenses and other current assets $ 0.7 $ 1.4 Foreign exchange contracts Prepaid expenses and other current assets 0.1 — Natural gas contracts Prepaid expenses and other current assets — 2.4 Nickel and other raw material contracts Prepaid expenses and other current assets — 12.5 Interest rate swap Other assets — 0.5 Natural gas contracts Other assets 0.1 0.7 Nickel and other raw material contracts Other assets — 0.5 Total derivatives designated as hedging instruments 0.9 18.0 Total asset derivatives $ 0.9 $ 18.0 Liability derivatives Balance sheet location Derivatives designated as hedging instruments: Natural gas contracts Other current liabilities $ 5.6 $ 2.0 Nickel and other raw material contracts Other current liabilities 7.5 2.1 Natural gas contracts Other long-term liabilities 1.1 0.5 Total derivatives designated as hedging instruments 14.2 4.6 Total liability derivatives $ 14.2 $ 4.6 |
Schedule of derivative instruments gain (loss) | Activity with regard to derivatives designated as cash flow hedges for the fiscal years ended December 31, 2023 and January 1, 2023 were as follows (in millions): Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Amount of Gain (Loss) Fiscal Year 2023 2022 2023 2022 Nickel and other raw material contracts $ (11.0) $ 27.1 $ 2.5 $ 20.5 Natural gas contracts (11.3) 10.9 (5.7) 11.5 Foreign exchange contracts 0.2 0.7 0.2 0.7 Interest rate swap 0.3 2.3 1.1 (0.1) Total $ (21.8) $ 41.0 $ (1.9) $ 32.6 (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 sales and 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 ABL Term Loan is recognized in earnings. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instrument fair value | The estimated fair value of financial instruments at December 31, 2023 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Total Quoted Prices in Significant Cash and cash equivalents $ 743.9 $ 743.9 $ 743.9 $ — Derivative financial instruments: Assets 0.9 0.9 — 0.9 Liabilities 14.2 14.2 — 14.2 Debt (a) 2,199.2 2,746.7 2,438.9 307.8 The estimated fair value of financial instruments at January 1, 2023 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Total Quoted Prices in Significant Cash and cash equivalents $ 584.0 $ 584.0 $ 584.0 $ — Derivative financial instruments: Assets 18.0 18.0 — 18.0 Liabilities 4.6 4.6 — 4.6 Debt (a) 1,765.2 1,964.5 1,665.7 298.8 (a) |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of defined benefit plans | The components of pension and other postretirement benefit expense for the Company’s defined benefit plans included the following: Pension Benefits Other Postretirement Benefits Fiscal Year (In millions) 2023 2022 Revised 2021 Revised 2023 2022 2021 Service cost—benefits earned during the year $ 6.0 $ 11.9 $ 15.1 $ 0.6 $ 1.1 $ 1.5 Interest cost on benefits earned in prior years 79.7 69.7 68.4 10.9 7.7 8.0 Expected return on plan assets (84.8) (128.2) (136.4) — — — Amortization of prior service cost (credit) 0.3 0.4 0.6 (0.9) (0.9) (2.4) Amortization of net actuarial loss — — — 6.0 13.2 13.9 Recognized actuarial loss (gain)- mark to market 26.8 (100.3) (147.2) — — — Settlement loss (gain) 41.7 0.7 — — — (64.9) Total retirement benefit expense (income) $ 69.7 $ (145.8) $ (199.5) $ 16.6 $ 21.1 $ (43.9) |
Schedule of assumptions used | Actuarial assumptions used to develop the components of defined benefit pension expense and other postretirement benefit expense were as follows: Pension Benefits Other Postretirement Benefits Fiscal Year 2023 2022 2021 2023 2022 2021 Discount rate (a) 5.55% - 6.40% 2.95 % 2.60 % 5.45 % 2.80 % 2.45 % Rate of increase in future compensation levels 3.00% 2.00% - 3.00% 1.00 % — — — Weighted average expected long-term rate of return on assets (a) 5.80% - 6.57% 6.43 % 6.71 % — % — % — % (a) Pension expense for fiscal year 2023 was initially measured at a 5.55% discount rate and 6.57% weighted average expected long-term rate of return on assets. The U.S. qualified pension plans were remeasured using a 6.40% weighted average discount rate and 5.80% weighted average expected long-term rate of return on assets as of October 17, 2023, following the large annuity buyout of retirees. |
Schedule of assumptions used for year end valuation | Actuarial assumptions used for the valuation of defined benefit pension and other postretirement benefit obligations at the end of the respective periods were as follows: Pension Benefits Other Postretirement Benefits Fiscal Year 2023 2022 2023 2022 Discount rate 5.60 % 5.55 % 5.40 % 5.45 % Rate of increase in future compensation levels 3.00 % 3.00 % — — |
Schedule of changes in projected benefit obligations | A reconciliation of the funded status for the Company’s defined benefit pension and other postretirement benefit plans at December 31, 2023 and January 1, 2023 was as follows: Pension Benefits Other Postretirement Benefits Fiscal Year (In millions) 2023 2022 2023 2022 Change in benefit obligations: Benefit obligation at beginning of fiscal year $ 1,818.3 $ 2,517.0 $ 212.7 $ 287.3 Service cost 6.0 11.9 0.6 1.1 Interest cost 79.7 69.7 10.9 7.7 Benefits paid (153.9) (155.6) (26.4) (29.7) Subsidy received — — — 0.3 Divestiture — (75.8) — — Effect of currency rates — (3.2) — — Net actuarial (gains) losses – discount rate change (95.8) (556.8) 0.7 (48.2) – other (5.3) 11.1 3.1 (5.8) Plan settlement (1,350.6) — — — Benefit obligation at end of fiscal year $ 298.4 $ 1,818.3 $ 201.6 $ 212.7 |
Schedule of changes in fair value of plan assets | Pension Benefits Other Postretirement Benefits Fiscal Year (In millions) 2023 2022 2023 2022 Change in plan assets: Fair value of plan assets at beginning of fiscal year $ 1,599.5 $ 2,120.9 $ — $ — Actual returns on plan assets and plan expenses (83.9) (317.0) — — Employer contributions 278.0 57.4 — — Divestiture — (101.8) — — Effect of currency rates — (4.4) — — Plan settlement (1,350.6) — — — Benefits paid (153.9) (155.6) — — Fair value of plan assets at end of fiscal year $ 289.1 $ 1,599.5 $ — $ — |
Schedule of amounts recognized in balance sheet | Assets (liabilities) recognized in the consolidated balance sheets: Pension Benefits Other Postretirement Benefits Fiscal Year 2023 2022 2023 2022 Current assets $ 2.4 $ — $ — $ — Noncurrent assets 33.6 12.5 — — Current liabilities (5.6) (5.7) (26.4) (27.8) Noncurrent liabilities (39.7) (225.6) (175.2) (184.9) Total amount recognized $ (9.3) $ (218.8) $ (201.6) $ (212.7) |
Schedule of amounts recognized in other comprehensive income | Changes to accumulated other comprehensive loss related to pension and other postretirement benefit plans in fiscal years 2023 and 2022 were as follows: Pension Benefits Other Postretirement Benefits Fiscal Year (In millions) 2023 2022 Revised 2023 2022 Beginning of year accumulated other comprehensive loss $ (8.8) $ (9.9) $ (55.8) $ (121.2) Amortization of net actuarial loss — — 6.0 13.2 Amortization of prior service cost (credit) 0.3 0.4 (0.9) (0.9) Settlement loss 1.1 0.7 — — Remeasurements — — (3.8) 53.1 End of year accumulated other comprehensive loss $ (7.4) $ (8.8) $ (54.5) $ (55.8) Net change in accumulated other comprehensive loss $ 1.4 $ 1.1 $ 1.3 $ 65.4 |
Schedule of net periodic benefit cost not yet recognized | Amounts included in accumulated other comprehensive loss at December 31, 2023 and January 1, 2023 were as follows: Pension Benefits Other Postretirement Benefits Fiscal Year (In millions) 2023 2022 Revised 2023 2022 Prior service (cost) credit $ (7.4) $ (8.8) $ 1.7 $ 2.5 Net actuarial loss — — (56.2) (58.3) Accumulated other comprehensive loss (7.4) (8.8) (54.5) (55.8) Deferred tax effect 1.9 2.1 27.5 27.8 Accumulated other comprehensive loss, net of tax $ (5.5) $ (6.7) $ (27.0) $ (28.0) |
Schedule of amounts in accumulated other comprehensive income to be recognized | Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost in fiscal year 2024 are: (In millions) Pension Other Total Amortization of prior service cost (credit) $ 0.4 $ (0.9) $ (0.5) Amortization of net actuarial loss — 5.3 5.3 Amortization of accumulated other comprehensive loss $ 0.4 $ 4.4 $ 4.8 |
Schedule of accumulated benefit obligations in excess of fair value of plan assets | Additional information for pension plans with accumulated benefit obligations and projected benefit obligations in excess of plan assets: Pension Benefits Fiscal Year (In millions) 2023 2022 Projected benefit obligation $ 45.3 $ 1,727.3 Accumulated benefit obligation $ 45.3 $ 1,716.8 Fair value of plan assets $ — $ 1,496.0 |
Schedule of expected benefit payments | The following table summarizes expected benefit payments from the Company’s various pension and other postretirement defined benefit plans through fiscal year 2033, and also includes estimated Medicare Part D subsidies projected to be received during this period based on currently available information. Pension benefit payments for the U.S. qualified defined benefit pension plan are made from pension plan assets. (In millions) Fiscal Year Pension Other Medicare Part 2024 $ 12.1 $ 26.5 $ — 2025 13.3 24.2 — 2026 14.6 22.3 — 2027 16.0 20.6 — 2028 17.0 18.9 — 2029-2033 96.7 71.6 — |
Schedule of allocation of plan assets | The fair values of the Company’s pension plan assets are determined using net asset value (NAV) as a practical expedient, or by information categorized in the fair value hierarchy level based on the inputs used to determine fair value, as further discussed in Note 13. The fair values at December 31, 2023 were as follows: (In millions) Quoted Prices in Significant Significant Asset category Total NAV (Level 1) (Level 2) (Level 3) Equity securities: U.S. equities $ 0.1 $ — $ 0.1 $ — $ — International equities 0.1 — 0.1 — — Fixed income and cash equivalents 130.3 8.3 122.0 — — Private equity 60.8 60.8 — — — Alternative investments- hedge funds, real estate and other 97.8 97.8 — — — Total assets $ 289.1 $ 166.9 $ 122.2 $ — $ — The fair values of the Company’s pension plan assets at January 1, 2023 were as follows: (In millions) Quoted Prices in Significant Significant Asset category Total NAV (Level 1) (Level 2) (Level 3) Equity securities: U.S. equities $ 363.1 $ 202.6 $ 160.5 $ — $ — International equities 299.7 284.8 14.9 — — Fixed income and cash equivalents 455.4 330.8 13.8 110.8 — Private equity 224.3 224.3 — — — Alternative investments- hedge funds, real estate and other 257.0 257.0 — — — Total assets $ 1,599.5 $ 1,299.5 $ 189.2 $ 110.8 $ — |
Schedule of target asset allocations for pension plans | The target asset allocations for ATI Pension Plan for fiscal year 2024, by major investment category, are: Asset category Target asset allocation range Equities 0% - 20% Fixed income and cash equivalents 50% - 100% Private equity and other 0% - 40% |
Schedule of multiemployer plans | The Company’s participation in multiemployer plans for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 is reported in the following table. Pension FIP / RP Status in millions Expiration Dates EIN / Pension Company Contributions Surcharge Fiscal Year Fiscal Year Pension Fund 2023 2022 2023 2022 2021 Steelworkers Western Independent Shops Pension Plan 90-0169564 Green Green N/A $ 0.7 $ 0.1 $ 0.1 No 2/28/2025 Boilermakers-Blacksmiths National Pension Trust 48-6168020 Red Green Yes 2.6 2.3 2.0 No 9/30/2026 IAM National Pension Fund 51-6031295 Red Red Yes 1.9 1.9 1.9 Yes Various between 2024-2028 (4) Total contributions $ 5.2 $ 4.3 $ 4.0 (1) The most recent Pension Protection Act Zone Status is based on information provided to ATI and other participating employers by each plan, as certified by the plan’s actuary. A plan in the “deep red” zone had been determined to be in “critical and declining status”, based on criteria established by the Internal Revenue Code (Code), and is in critical status (as defined by the “red” zone) and is projected to become insolvent (run out of money to pay benefits) within 15 years (or within 20 years if a special rule applies). A plan in the “red” zone had been determined to be in “critical status”, based on criteria established by the Code, and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Code, and is generally less than 80% funded. A plan in the “green” zone has been determined to be neither in “critical status” nor in “endangered status”, and is generally at least 80% funded. Additionally, a plan may voluntarily place itself into a rehabilitation plan. In April 2019, the Company received notification from the IAM National Pension Fund (IAM Fund) that its’ actuary certified the IAM Fund as “endangered status” for the plan year beginning January 1, 2019, and that the IAM Fund was voluntarily placing itself in “red” zone status and implementing a rehabilitation plan. In April 2020, 2021, 2022, and 2023 the Company received notification from the IAM Fund that it was certified by its actuary as being in “red” zone status for the plan years beginning January 1, 2020, 2021 and 2022. A contribution surcharge was imposed as of June 1, 2019 in addition to the contribution rate specified in the applicable collective bargaining agreements. The contribution surcharge remains in effect, and ends when an employer begins contributing under a collective bargaining agreement that includes terms consistent with the rehabilitation plan. In April 2019, the Company received notifications from the Boilermakers-Blacksmiths National Pension Trust (Blacksmiths Trust) that it was certified by its actuary as being in “red” zone status for the plan year beginning January 1, 2019. A rehabilitation plan was adopted for the Blacksmiths Trust, and the Company and the Blacksmiths union agreed to adopt the rehabilitation plan in 2019 prior to a contribution surcharge being imposed. In April 2020 and 2021, the funding status improved for the Blacksmiths Trust as it was certified by its actuary as being in the “yellow” zone for the plan years beginning January 1, 2020 and 2021. In April 2022, the funding status further improved to being in the “green” zone for the plan year beginning January 1, 2022. In April 2023, the Blacksmiths Trust was certified by its actuary as being in “red” zone status for the plan years beginning January 1, 2023. A rehabilitation plan has been adopted for the Blacksmiths Trust, and the Company and the Blacksmiths union agreed to adopt the rehabilitation plan in 2023 prior to a contribution surcharge being imposed. (2) The “FIP / RP Status Pending / Implemented” column indicates whether a Funding Improvement Plan, as required under the Code by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” or “deep red” zones, is pending or has been implemented as of the end of the plan year that ended in 2023. (3) The “Surcharge Imposed” column indicates whether ATI’s contribution rate for 2023 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status” or “critical and declining status”, in accordance with the requirements of the Code. (4) The Company is party to five separate bargaining agreements that require contributions to this plan. Expiration dates of these collective bargaining agreements range between April 26, 2024 and July 14, 2028. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The changes in AOCI by component, net of tax, for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 were as follows (in millions): Post- Currency Derivatives Deferred Tax Asset Valuation Allowance Revised Total Revised Balance, January 3, 2021 $ (1,119.9) $ (55.5) $ 2.1 $ (50.3) $ (1,223.6) Cumulative effect of change in accounting principle (a) 1,030.3 — — (a) 42.9 1,073.2 OCI before reclassifications 6.6 (9.4) 11.7 — 8.9 Amounts reclassified from AOCI (b) (3.6) (c) — (e) (8.7) (f) 12.5 0.2 Net current-period OCI 1,033.3 (9.4) 3.0 55.4 1,082.3 Balance, January 2, 2022 (86.6) (64.9) 5.1 5.1 (141.3) OCI before reclassifications 41.3 (25.2) 41.0 — 57.1 Amounts reclassified from AOCI (b) 10.6 (d) 20.0 (e) (32.6) (f) 18.8 16.8 Net current-period OCI 51.9 (5.2) 8.4 18.8 73.9 Balance, January 1, 2023 (34.7) (70.1) 13.5 23.9 (67.4) OCI before reclassifications (2.9) 1.7 (21.8) — (23.0) Amounts reclassified from AOCI (b) 5.1 (c) — (e) 1.9 (f) 0.2 7.2 Net current-period OCI 2.2 1.7 (19.9) 0.2 (15.8) Balance, December 31, 2023 $ (32.5) $ (68.4) $ (6.4) $ 24.1 $ (83.2) Attributable to noncontrolling interests: Balance, January 3, 2021 $ — $ 21.2 $ — $ — $ 21.2 OCI before reclassifications — 4.8 — — 4.8 Amounts reclassified from AOCI — (c) — — — — Net current-period OCI — 4.8 — — 4.8 Balance, January 2, 2022 — 26.0 — — 26.0 OCI before reclassifications — (18.3) — — (18.3) Amounts reclassified from AOCI — (c) — — — — Net current-period OCI — (18.3) — — (18.3) Balance, January 1, 2023 — 7.7 — — 7.7 OCI before reclassifications — (0.4) — — (0.4) Amounts reclassified from AOCI — (c) — — — — Net current-period OCI — (0.4) — — (0.4) Balance, December 31, 2023 $ — $ 7.3 $ — $ — $ 7.3 (a) In the fourth quarter of fiscal year 2023, the Company voluntarily changed its method of accounting for recognizing actuarial gains and losses for our defined benefit pension plans. See Note 1 for amounts recognized related to this change. The information within this Note has been revised to reflect the change in accounting principle for current and prior periods. (b) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 14) and/or loss on asset sales and sales of businesses, net, as part of the loss on sale of the Sheffield, UK operations (see Note 6). (c) No amounts were reclassified to earnings. (d) Amounts were included in loss on asset sales and sales of businesses, net, as part of the loss on sale of the Sheffield, UK operations (see Note 6). (e) Amounts related to derivatives are included in sales, cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 12). |
Reclassification out of accumulated other comprehensive income | Reclassifications out of AOCI for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 were as follows: Amount reclassified from AOCI (d) Fiscal year ended Details about AOCI Components (In millions) December 31, 2023 January 1, 2023 January 2, 2022 Affected line item in the Postretirement benefit plans Revised Prior service credit $ 0.6 (a) $ 0.5 (a) $ 1.8 (a) Actuarial losses (6.0) (a) (13.2) (a) (13.9) (a) Settlement gain (loss) (1.1) (a) (0.7) (b) 21.9 (a) (6.5) (d) (13.4) (d) 9.8 (d) Total before tax (1.4) (2.8) 6.2 Tax provision (benefit) (e) $ (5.1) $ (10.6) $ 3.6 Net of tax Currency translation adjustment — (d) (20.0) (b,d) — (d) Derivatives Nickel and other raw material contracts $ 3.3 (c) $ 26.9 (c) $ 7.1 (c) Natural gas contracts (7.5) (c) 15.1 (c) 5.3 (c) Foreign exchange contracts 0.3 (c) 0.9 (c) 0.1 (c) Interest rate swap 1.4 (c) (0.1) (c) (1.1) (c) (2.5) (d) 42.8 (d) 11.4 (d) Total before tax (0.6) 10.2 2.7 Tax provision (benefit) (e) $ (1.9) $ 32.6 $ 8.7 Net of tax (a) Amounts are included in nonoperating retirement benefit expense (see Note 14). (b) Amounts in fiscal year 2022 were included in loss on asset sales and sales of businesses, net, as part of the loss on sale of the Sheffield, UK operations (see Note 6). (c) Amounts related to derivatives, with the exception of the interest rate swap, are included in sales or 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 ABL Term Loan is recognized in earnings (see Note 12). (d) 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. (e) These amounts exclude the impact of any deferred tax asset valuation allowances, when applicable, including recognition of stranded balances (see Note 17 for further explanation). |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Nonvested stock rollforward | Activity under the Company’s RSU awards for the fiscal years ended December 31, 2023, January 1, 2023, and January 2, 2022 was as follows: Fiscal Year (Shares in thousands, $ in millions) 2023 2022 2021 Number of Weighted Number of Weighted Number of Weighted Nonvested, beginning of fiscal year 1,479 $ 26.0 1,409 $ 25.6 929 $ 17.9 Granted 512 16.0 831 14.8 1,033 17.5 Vested (729) (13.1) (634) (12.3) (505) (8.9) Forfeited (42) (0.9) (127) (2.1) (48) (0.9) Nonvested, end of fiscal year 1,220 $ 28.0 1,479 $ 26.0 1,409 $ 25.6 |
Disclosure of Fair Value of PSU Awards | The fair value of each PSU award, the target share units awarded and projected future compensation expense to be recognized for these awards, including actual and estimated forfeitures at December 31, 2023 was as follows: (Shares in thousands, $ in millions) PSU Award Performance Period Award Fair Value December 31, 2023 Unrecognized Compensation Expense Compensation Expense Expected to be Recognized in the next 12 months Target Share Units Fiscal Year 2021-2023 $ 9.3 $ — $ — 459 Fiscal Year 2022-2024 $ 11.0 3.9 3.9 494 Fiscal Year 2023-2025 $ 12.6 8.9 4.2 330 Fiscal Year 2022-2025 BPA $ 20.3 11.0 4.4 857 Total $ 23.8 $ 12.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax | Income (loss) before income taxes for the Company’s U.S. and non-U.S. operations was as follows: Fiscal Year (In millions) 2023 2022 Revised 2021 Revised U.S. $ 258.2 $ 394.3 $ 168.7 Non-U.S. 37.0 (39.7) 64.7 Income before income taxes $ 295.2 $ 354.6 $ 233.4 |
Schedule income tax provision (benefit) | The income tax provision (benefit) was as follows: Fiscal Year (In millions) 2023 2022 2021 Current: Federal $ 3.0 $ 5.0 $ 0.7 State 0.5 3.7 (0.3) Foreign 7.8 10.0 9.4 Total 11.3 18.7 9.8 Deferred: Federal (96.1) (3.3) 18.6 State (42.5) 0.2 (0.9) Foreign (0.9) (0.1) (0.7) Total (139.5) (3.2) 17.0 Income tax provision (benefit) $ (128.2) $ 15.5 $ 26.8 |
Schedule of effective income tax rate reconciliation | The following is a reconciliation of income taxes computed at the statutory U.S. Federal income tax rate to the actual effective income tax provision (benefit): Fiscal Year (In millions) 2023 2022 Revised 2021 Revised Taxes computed at the federal rate $ 62.0 $ 74.5 $ 49.0 Goodwill — — 2.6 State and local income taxes, net of federal tax benefit 1.2 2.9 0.4 Valuation allowance (198.8) (84.4) (29.2) Repatriation of foreign earnings (GILTI ) 5.0 — 2.0 Divestiture — 23.0 — Recognition of stranded deferred tax balance — — 3.9 Foreign earnings taxed at different rate 2.7 3.2 3.0 Withholding taxes 4.8 2.6 3.4 Preferential tax rate (3.6) (4.9) (6.2) Other (1.5) (1.4) (2.1) Income tax provision (benefit) $ (128.2) $ 15.5 $ 26.8 |
Schedule of deferred tax assets and liabilities | Deferred income taxes result from temporary differences in the recognition of income and expense for financial and income tax reporting purposes, and differences between the fair value of assets acquired in business combinations accounted for as purchases for financial reporting purposes and their corresponding tax bases. Deferred income taxes represent future tax benefits or costs to be recognized when those temporary differences reverse. The categories of assets and liabilities that have resulted in differences in the timing of the recognition of income and expense at December 31, 2023 and January 1, 2023 were as follows: Fiscal Year (In millions) 2023 2022 Deferred income tax assets Net operating loss tax carryovers $ 133.0 $ 184.1 Pensions 2.2 51.7 Postretirement benefits other than pensions 48.5 51.5 Tax credits 43.5 42.0 Research and development 20.7 7.4 Inventory valuation 1.1 — Other items 107.5 95.6 Gross deferred income tax assets 356.5 432.3 Valuation allowance for deferred tax assets (60.3) (266.9) Total deferred income tax assets 296.2 165.4 Deferred income tax liabilities Basis of property, plant and equipment 124.8 122.2 Inventory valuation — 17.1 Basis of amortizable intangible assets 14.9 16.4 Other items 25.5 23.0 Total deferred tax liabilities 165.2 178.7 Net deferred tax asset (liability) $ 131.0 $ (13.3) |
Schedule of NOL's and tax credits | The following summarizes the carryforward periods for the tax attributes related to NOLs and credits by jurisdiction. ($ in millions, U.S. and U.K. NOL amounts are pre-tax and all other items are after-tax) Jurisdiction Attribute Amount Expiration Period Amount expiring within 5 years Amount expiring in 5-20 years U.S. NOL $213 20 years $— $213 U.S. NOL $129 Indefinite $— $— U.S. Foreign Tax Credit $22 10 years $22 $— U.S. Research and Development Credit $11 20 years $— $11 State NOL $80 Various $15 $65 State NOL $1 Indefinite $— $— State Credits $9 Various $4 $5 U.K. NOL $4 Indefinite $— $— Poland Economic Zone Credit $4 7 years $4 $— |
Schedule of income taxes paid | Income taxes paid and amounts received as refunds were as follows: Fiscal Year (In millions) 2023 2022 2021 Income taxes paid $ 16.7 $ 18.9 $ 14.2 Income tax refunds received (0.9) (0.4) (0.6) Income taxes paid, net $ 15.8 $ 18.5 $ 13.6 |
Schedule of changes in unrecognized income tax benefits | The changes in the liability for unrecognized income tax benefits for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 were as follows: Fiscal Year (In millions) 2023 2022 2021 Balance at beginning of fiscal year $ 9.1 $ 14.2 $ 15.2 Increases in prior period tax positions 1.2 — — Decreases in prior period tax positions — (3.3) — Increases in current period tax positions — — 0.3 Expiration of the statute of limitations (1.4) (1.8) (1.3) Balance at end of fiscal year $ 8.9 $ 9.1 $ 14.2 |
Summary of income tax examinations | A summary of tax years that remain subject to examination, by major tax jurisdiction, is as follows: Jurisdiction Earliest Year Open to U.S. Federal 2020 States: Pennsylvania 2020 Foreign: China 2020 Poland 2017 United Kingdom 2021 |
Per Share Information (Tables)
Per Share Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule earnings per share | The following table sets forth the computation of basic and diluted net income per common share: (In millions, except per share amounts) Fiscal Year 2023 2022 Revised 2021 Revised Numerator: Numerator for basic net income per common share - Net income attributable to ATI $ 410.8 $ 323.5 $ 184.6 Effect of dilutive securities: 4.75% Convertible Senior Notes due 2022 — 2.2 4.4 3.5% Convertible Senior Notes due 2025 10.6 11.3 11.8 Numerator for diluted net income per common share - Net income attributable to ATI after assumed conversions $ 421.4 $ 337.0 $ 200.8 Denominator: Denominator for basic net income per common share—weighted average shares 128.1 127.5 127.1 Effect of dilutive securities: Share-based compensation 3.1 2.1 1.0 4.75% Convertible Senior Notes due 2022 — 2.8 5.8 3.5% Convertible Senior Notes due 2025 18.8 18.8 18.8 Denominator for diluted net income per common share—adjusted weighted average shares and assumed conversions 150.0 151.2 152.7 Basic net income attributable to ATI per common share $ 3.21 $ 2.54 $ 1.45 Diluted net income attributable to ATI per common share $ 2.81 $ 2.23 $ 1.32 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | Quarterly financial data for fiscal years 2023 and 2022 was as follows: Quarter Ended (In millions except share and per share amounts) April 2, 2023 July 2, 2023 October 1, 2023 December 31, 2023 Fiscal Year 2023 - Sales $ 1,038.1 $ 1,046.0 $ 1,025.6 $ 1,064.0 Operating income 112.6 120.3 125.2 108.3 Net income 86.6 93.5 94.1 149.2 Net income attributable to ATI 84.5 90.4 90.2 145.7 Basic income attributable to ATI per common share* $ 0.66 $ 0.70 $ 0.70 $ 1.15 Diluted income attributable to ATI per common share* $ 0.58 $ 0.62 $ 0.62 $ 0.99 Quarter Ended April 3, 2022 July 3, 2022 October 2, 2022 January 1, 2023 Fiscal Year 2022- Sales $ 834.1 $ 959.5 $ 1,032.0 $ 1,010.4 Operating income 77.0 17.2 113.2 108.7 Net income 51.2 10.4 80.2 197.3 Net income attributable to ATI 46.9 6.7 76.9 193.0 Basic income attributable to ATI per common share* $ 0.37 $ 0.05 $ 0.59 $ 1.49 Diluted income attributable to ATI per common share* $ 0.33 $ 0.05 $ 0.53 $ 1.30 |
Summary of the Effect of Change in the Accounting Principle on the Consolidated Financial Statements | The following table reflects the effect of the change in the accounting principle on the consolidated financial statements: For the Fiscal Year Ending December 31, 2023 As Computed Under Previous Policy As Reported under New Policy Effect of Accounting Change (dollars in millions, except per share data) Statement of Operations Nonoperating retirement benefit expense $ (1,036.6) $ (79.7) $ 956.9 Income (loss) before income taxes $ (661.7) $ 295.2 $ 956.9 Income tax benefit $ (342.5) $ (128.2) $ 214.3 Net income (loss) $ (319.2) $ 423.4 $ 742.6 Net income (loss) attributable to ATI $ (331.8) $ 410.8 $ 742.6 Basic net income (loss) per common share $ (2.59) $ 3.21 $ 5.80 Diluted net income (loss) per common share $ (2.59) $ 2.81 $ 5.40 Statement of Comprehensive Income (Loss) Net income (loss) $ (319.2) $ 423.4 $ 742.6 Postretirement benefit plans Actuarial gain/ loss Amortization of net actuarial loss $ 55.7 $ 6.0 $ (49.7) Net loss arising during the period $ (71.4) $ (3.8) $ 67.6 Settlement loss included in net income (loss) $ 975.9 $ 1.1 $ (974.8) Income taxes on postretirement benefits $ 214.6 $ 0.3 $ (214.3) Total $ 745.0 $ 2.4 $ (742.6) Other comprehensive income (loss), net of tax $ 726.4 $ (16.2) $ (742.6) Balance Sheet Retained loss $ (154.9) $ (70.1) $ 84.8 Accumulated other comprehensive income (loss), net of tax $ 1.6 $ (83.2) $ (84.8) Statement of Cash Flows Operating Activities: Net income (loss) $ (319.2) $ 423.4 $ 742.6 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred taxes $ (352.5) $ (138.2) $ 214.3 Change in operating assets and liabilities: Retirement benefits $ 1,010.7 $ 53.8 $ (956.9) Statements of Changes in Consolidated Equity Retained Loss Net income (loss) $ (331.8) $ 410.8 $ 742.6 Balance, December 31, 2023 $ (154.9) $ (70.1) $ 84.8 Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) $ 726.8 $ (15.8) $ (742.6) Balance, December 31, 2023 $ 1.6 $ (83.2) $ (84.8) Total Equity Net income (loss) $ (319.2) $ 423.4 $ 742.6 Other comprehensive income (loss) $ 726.4 $ (16.2) $ (742.6) For the Fiscal Year Ending January 1, 2023 As Computed Under Previous Policy As Reported under New Policy Effect of Accounting Change (dollars in millions, except per share data) Statement of Operations Loss on asset sales and sales of businesses, net $ 134.2 $ 105.4 $ (28.8) Operating income $ 287.3 $ 316.1 $ 28.8 Nonoperating retirement benefit income (expense) $ (25.4) $ 138.4 $ 163.8 Income before income taxes $ 162.0 $ 354.6 $ 192.6 Net income $ 146.5 $ 339.1 $ 192.6 Net income attributable to ATI $ 130.9 $ 323.5 $ 192.6 Basic net income per common share $ 1.03 $ 2.54 $ 1.51 Diluted net income per common share $ 0.96 $ 2.23 $ 1.27 Statement of Comprehensive Income (Loss) Net income $ 146.5 $ 339.1 $ 192.6 Postretirement benefit plans Actuarial gain/loss Amortization of net actuarial loss $ 76.7 $ 13.2 $ (63.5) Net gain arising during the period $ 155.0 $ 54.7 $ (100.3) Settlement loss included in net income $ 29.5 $ 0.7 $ (28.8) Total $ 260.7 $ 68.1 $ (192.6) Other comprehensive income, net of tax $ 248.2 $ 55.6 $ (192.6) Balance Sheet Retained earnings (loss) $ 176.9 $ (480.9) $ (657.8) Accumulated other comprehensive loss, net of tax $ (725.2) $ (67.4) $ 657.8 Statement of Cash Flows Operating Activities: Net income $ 146.5 $ 339.1 $ 192.6 Adjustments to reconcile net income to net cash provided by operating activities: Net loss from sales of businesses $ 141.0 $ 112.2 $ (28.8) Change in operating assets and liabilities: Retirement benefits $ 4.6 $ (159.2) $ (163.8) Statements of Changes in Consolidated Equity Retained Earnings (Loss) Net income $ 130.9 $ 323.5 $ 192.6 Balance, January 1, 2023 $ 176.9 $ (480.9) $ (657.8) Accumulated Other Comprehensive Income (Loss) Other comprehensive income $ 266.5 $ 73.9 $ (192.6) Balance, January 1, 2023 $ (725.2) $ (67.4) $ 657.8 Total Equity Net income $ 146.5 $ 339.1 $ 192.6 Other comprehensive income $ 248.2 $ 55.6 $ (192.6) For the Fiscal Year Ending January 2, 2022 As Computed Under Previous Policy As Reported under New Policy Effect of Accounting Change (dollars in millions, except per share data) Statement of Operations Nonoperating retirement benefit income $ 37.2 $ 260.0 $ 222.8 Income before income taxes $ 10.6 $ 233.4 $ 222.8 Net income (loss) $ (16.2) $ 206.6 $ 222.8 Net income (loss) attributable to ATI $ (38.2) $ 184.6 $ 222.8 Basic net income (loss) per common share $ (0.30) $ 1.45 $ 1.75 Diluted net income (loss) per common share $ (0.30) $ 1.32 $ 1.62 Statement of Comprehensive Income (Loss) Net income (loss) $ (16.2) $ 206.6 $ 222.8 Postretirement benefit plans Actuarial gain/loss Amortization of net actuarial loss $ 89.5 $ 13.9 $ (75.6) Net gain arising during the period $ 155.9 $ 8.7 $ (147.2) Total $ 237.2 $ 14.4 $ (222.8) Other comprehensive income, net of tax $ 236.7 $ 13.9 $ (222.8) Balance Sheet Retained earnings (loss) $ 72.7 $ (777.7) $ (850.4) Accumulated other comprehensive loss, net of tax $ (991.7) $ (141.3) $ 850.4 Statement of Cash Flows Operating Activities: Net income (loss) $ (16.2) $ 206.6 $ 222.8 Change in operating assets and liabilities: Retirement benefits $ (39.1) $ (261.9) $ (222.8) Statements of Changes in Consolidated Equity Retained Earnings (Loss) Net income (loss) $ (38.2) $ 184.6 $ 222.8 Cumulative effect of change in accounting principle $ — $ (1,073.2) $ (1,073.2) Balance, January 2, 2022 $ 72.7 $ (777.7) $ (850.4) Accumulated Other Comprehensive Income (Loss) Other comprehensive income $ 231.9 $ 9.1 $ (222.8) Cumulative effect of change in accounting principle $ — $ 1,073.2 $ 1,073.2 Balance, January 2, 2022 $ (991.7) $ (141.3) $ 850.4 Total Equity Net income (loss) $ (16.2) $ 206.6 $ 222.8 Other comprehensive income $ 236.7 $ 13.9 $ (222.8) Below reflects the quarterly impact of the change in accounting principle on our quarterly financial data presented: (dollars in millions, except per share data) As Computed Under Previous Policy As Reported Under New Policy Effect of Accounting Change Three months ended April 2, 2023 Net income $ 72.2 $ 86.6 $ 14.4 Net income attributable to ATI $ 70.1 $ 84.5 $ 14.4 Basic income attributable to ATI per common share* $ 0.55 $ 0.66 $ 0.11 Diluted income attributable to ATI per common share* $ 0.48 $ 0.58 $ 0.10 Three months ended July 2, 2023 Net income $ 79.1 $ 93.5 $ 14.4 Net income attributable to ATI $ 76.0 $ 90.4 $ 14.4 Basic income attributable to ATI per common share* $ 0.59 $ 0.70 $ 0.11 Diluted income attributable to ATI per common share* $ 0.52 $ 0.62 $ 0.10 Three months ended October 1, 2023 Net income $ 79.6 $ 94.1 $ 14.5 Net income attributable to ATI $ 75.7 $ 90.2 $ 14.5 Basic income attributable to ATI per common share* $ 0.59 $ 0.70 $ 0.11 Diluted income attributable to ATI per common share* $ 0.52 $ 0.62 $ 0.10 Three months ended December 31, 2023 Net income (loss) $ (550.1) $ 149.2 $ 699.3 Net income (loss) attributable to ATI $ (553.6) $ 145.7 $ 699.3 Basic income (loss) attributable to ATI per common share* $ (4.35) $ 1.15 $ 5.50 Diluted income (loss) attributable to ATI per common share* $ (4.35) $ 0.99 $ 5.34 (dollars in millions, except per share data) As Computed Under Previous Policy As Reported Under New Policy Effect of Accounting Change Three months ended April 3, 2022 Net income $ 35.2 $ 51.2 $ 16.0 Net income attributable to ATI $ 30.9 $ 46.9 $ 16.0 Basic income attributable to ATI per common share* $ 0.24 $ 0.37 $ 0.13 Diluted income attributable to ATI per common share* $ 0.23 $ 0.33 $ 0.10 Three months ended July 3, 2022 Operating income (loss) $ (11.6) $ 17.2 $ 28.8 Net income (loss) $ (34.3) $ 10.4 $ 44.7 Net income (loss) attributable to ATI $ (38.0) $ 6.7 $ 44.7 Basic income (loss) attributable to ATI per common share* $ (0.31) $ 0.05 $ 0.36 Diluted income (loss) attributable to ATI per common share* $ (0.31) $ 0.05 $ 0.36 Three months ended October 2, 2022 Net income $ 64.4 $ 80.2 $ 15.8 Net income attributable to ATI $ 61.1 $ 76.9 $ 15.8 Basic income attributable to ATI per common share* $ 0.47 $ 0.59 $ 0.12 Diluted income attributable to ATI per common share* $ 0.42 $ 0.53 $ 0.11 Three months ended January 1, 2023 Net income $ 81.2 $ 197.3 $ 116.1 Net income attributable to ATI $ 76.9 $ 193.0 $ 116.1 Basic income attributable to ATI per common share* $ 0.60 $ 1.49 $ 0.89 Diluted income attributable to ATI per common share* $ 0.53 $ 1.30 $ 0.77 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Principles of Consolidation (Details) | Dec. 31, 2023 |
Uniti [Member] | |
Noncontrolling Interest [Line Items] | |
Equity method investment ownership percentage | 50% |
Allegheny & Tsingshan Stainless | |
Noncontrolling Interest [Line Items] | |
Equity method investment ownership percentage | 50% |
Shanghai STAL Precision Stainless Steel Co Ltd [Member] | Allegheny Technologies Inc | |
Noncontrolling Interest [Line Items] | |
Joint venture ownership percentage | 60% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Risks and Uncertainties and Use of Estimates (Details) - employee | 12 Months Ended | |
Dec. 31, 2023 | Jan. 02, 2022 | |
Accounting Policies [Abstract] | ||
Number of employees | 7,300 | |
Percent of employees located outside of the U.S. | 15% | |
Percent of employees covered by collective bargaining agreements | 35% | |
Entity Number Of Employees Covered By USW Collective Bargaining Agreements Expiring February 28 2021 | 1,100 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Change in Accounting Principle (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2023 | Oct. 01, 2023 | Jul. 02, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 04, 2021 | Jan. 03, 2021 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Loss on asset sales and sales of businesses, net | $ 0.4 | $ 105.4 | $ 0 | ||||||||||
Operating income | $ 108.3 | $ 125.2 | $ 120.3 | $ 112.6 | $ 108.7 | $ 113.2 | $ 17.2 | $ 77 | 466.4 | 316.1 | 117.6 | ||
Nonoperating retirement benefit income (expense) | (79.7) | 138.4 | 260 | ||||||||||
Income (loss) before income taxes | 295.2 | 354.6 | 233.4 | ||||||||||
Income tax provision (benefit) | (128.2) | 15.5 | 26.8 | ||||||||||
Net income | 149.2 | 94.1 | 93.5 | 86.6 | 197.3 | 80.2 | 10.4 | 51.2 | 423.4 | 339.1 | 206.6 | ||
Net loss (gain) from sales of businesses | 0.6 | 112.2 | (13.8) | ||||||||||
Net income attributable to ATI | $ 145.7 | $ 90.2 | $ 90.4 | $ 84.5 | $ 193 | $ 76.9 | $ 6.7 | $ 46.9 | $ 410.8 | $ 323.5 | $ 184.6 | ||
Basic net income (loss) attributable to ATI per common share (in dollars per share) | $ 1.15 | $ 0.70 | $ 0.70 | $ 0.66 | $ 1.49 | $ 0.59 | $ 0.05 | $ 0.37 | $ 3.21 | $ 2.54 | $ 1.45 | ||
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ 0.99 | $ 0.62 | $ 0.62 | $ 0.58 | $ 1.30 | $ 0.53 | $ 0.05 | $ 0.33 | $ 2.81 | $ 2.23 | $ 1.32 | ||
Amortization of net actuarial loss | $ 6 | $ 13.2 | $ 13.9 | ||||||||||
Net loss arising during the period | (3.8) | 54.7 | 8.7 | ||||||||||
Settlement loss (gain) included in net income (loss) | 1.1 | 0.7 | (21.9) | ||||||||||
Income taxes on postretirement benefit plans | 0.3 | 0 | (15.5) | ||||||||||
Total | 2.4 | 68.1 | 14.4 | ||||||||||
Other comprehensive income (loss), net of tax | (16.2) | 55.6 | 13.9 | ||||||||||
Retained loss | $ (70.1) | $ (480.9) | (70.1) | (480.9) | (777.7) | ||||||||
Accumulated other comprehensive loss, net of tax | (83.2) | (67.4) | (83.2) | (67.4) | (141.3) | $ (1,223.6) | |||||||
Deferred taxes | (138.2) | (0.1) | 1 | ||||||||||
Retirement benefits | 53.8 | (159.2) | (261.9) | ||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 1,480.5 | 1,157.2 | 1,480.5 | 1,157.2 | 832.7 | 641.4 | |||||||
Change in Accounting Principle, Other | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 0 | ||||||||||||
Retained Earnings | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Net income | 410.8 | 323.5 | 184.6 | ||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | (70.1) | (480.9) | (70.1) | (480.9) | (777.7) | 106.5 | |||||||
Retained Earnings | Change in Accounting Principle, Other | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (1,073.2) | (1,073.2) | |||||||||||
Retained Earnings | Accounting Standards Update 2020-06 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 4.4 | ||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Other comprehensive income (loss), net of tax | (15.8) | 73.9 | 9.1 | ||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | (83.2) | (67.4) | (83.2) | (67.4) | (141.3) | (1,223.6) | |||||||
Accumulated Other Comprehensive Income (Loss) | Change in Accounting Principle, Other | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 1,073.2 | $ 1,073.2 | |||||||||||
Reported Under The Previous Policy | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Loss on asset sales and sales of businesses, net | 134.2 | ||||||||||||
Operating income | 287.3 | ||||||||||||
Nonoperating retirement benefit income (expense) | (1,036.6) | (25.4) | |||||||||||
Income (loss) before income taxes | (661.7) | 162 | |||||||||||
Income tax provision (benefit) | (342.5) | ||||||||||||
Net income | (319.2) | 146.5 | |||||||||||
Net loss (gain) from sales of businesses | 141 | ||||||||||||
Net income attributable to ATI | $ (331.8) | $ 130.9 | |||||||||||
Basic net income (loss) attributable to ATI per common share (in dollars per share) | $ (2.59) | $ 1.03 | |||||||||||
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ (2.59) | $ 0.96 | |||||||||||
Amortization of net actuarial loss | $ 55.7 | $ 76.7 | |||||||||||
Net loss arising during the period | (71.4) | 155 | |||||||||||
Settlement loss (gain) included in net income (loss) | 975.9 | 29.5 | |||||||||||
Income taxes on postretirement benefit plans | 214.6 | ||||||||||||
Total | 745 | 260.7 | |||||||||||
Other comprehensive income (loss), net of tax | 726.4 | 248.2 | |||||||||||
Retained loss | (154.9) | 176.9 | (154.9) | 176.9 | |||||||||
Accumulated other comprehensive loss, net of tax | 1.6 | (725.2) | 1.6 | (725.2) | |||||||||
Deferred taxes | (352.5) | ||||||||||||
Retirement benefits | 1,010.7 | 4.6 | |||||||||||
Reported Under The Previous Policy | Retained Earnings | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Net income | (331.8) | 130.9 | |||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | (154.9) | 176.9 | (154.9) | 176.9 | |||||||||
Reported Under The Previous Policy | Accumulated Other Comprehensive Income (Loss) | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Other comprehensive income (loss), net of tax | 726.8 | 266.5 | |||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 1.6 | (725.2) | 1.6 | (725.2) | |||||||||
Revision of Prior Period, Change in Accounting Principle, Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Loss on asset sales and sales of businesses, net | (28.8) | ||||||||||||
Operating income | 28.8 | ||||||||||||
Nonoperating retirement benefit income (expense) | 956.9 | 163.8 | |||||||||||
Income (loss) before income taxes | 956.9 | 192.6 | |||||||||||
Income tax provision (benefit) | 214.3 | ||||||||||||
Net income | 742.6 | 192.6 | |||||||||||
Net loss (gain) from sales of businesses | (28.8) | ||||||||||||
Net income attributable to ATI | $ 742.6 | $ 192.6 | |||||||||||
Basic net income (loss) attributable to ATI per common share (in dollars per share) | $ 5.80 | $ 1.51 | |||||||||||
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ 5.40 | $ 1.27 | |||||||||||
Amortization of net actuarial loss | $ (49.7) | $ (63.5) | |||||||||||
Net loss arising during the period | 67.6 | (100.3) | |||||||||||
Settlement loss (gain) included in net income (loss) | (974.8) | (28.8) | |||||||||||
Income taxes on postretirement benefit plans | (214.3) | ||||||||||||
Total | (742.6) | (192.6) | |||||||||||
Other comprehensive income (loss), net of tax | (742.6) | (192.6) | |||||||||||
Retained loss | 84.8 | (657.8) | 84.8 | (657.8) | |||||||||
Accumulated other comprehensive loss, net of tax | (84.8) | 657.8 | (84.8) | 657.8 | |||||||||
Deferred taxes | 214.3 | ||||||||||||
Retirement benefits | (956.9) | (163.8) | |||||||||||
Revision of Prior Period, Change in Accounting Principle, Adjustment | Retained Earnings | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Net income | 742.6 | 192.6 | |||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 84.8 | (657.8) | 84.8 | (657.8) | |||||||||
Revision of Prior Period, Change in Accounting Principle, Adjustment | Accumulated Other Comprehensive Income (Loss) | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Other comprehensive income (loss), net of tax | (742.6) | (192.6) | |||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | (84.8) | 657.8 | $ (84.8) | $ 657.8 | |||||||||
As Computed Under Previous Policy | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Operating income | $ (11.6) | ||||||||||||
Nonoperating retirement benefit income (expense) | 37.2 | ||||||||||||
Income (loss) before income taxes | 10.6 | ||||||||||||
Net income | (550.1) | $ 79.6 | $ 79.1 | $ 72.2 | 81.2 | $ 64.4 | (34.3) | $ 35.2 | (16.2) | ||||
Net income attributable to ATI | $ (553.6) | $ 75.7 | $ 76 | $ 70.1 | $ 76.9 | $ 61.1 | $ (38) | $ 30.9 | $ (38.2) | ||||
Basic net income (loss) attributable to ATI per common share (in dollars per share) | $ (4.35) | $ 0.59 | $ 0.59 | $ 0.55 | $ 0.60 | $ 0.47 | $ (0.31) | $ 0.24 | $ (0.30) | ||||
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ (4.35) | $ 0.52 | $ 0.52 | $ 0.48 | $ 0.53 | $ 0.42 | $ (0.31) | $ 0.23 | $ (0.30) | ||||
Amortization of net actuarial loss | $ 89.5 | ||||||||||||
Net loss arising during the period | 155.9 | ||||||||||||
Total | 237.2 | ||||||||||||
Other comprehensive income (loss), net of tax | 236.7 | ||||||||||||
Retained loss | 72.7 | ||||||||||||
Accumulated other comprehensive loss, net of tax | (991.7) | ||||||||||||
Retirement benefits | (39.1) | ||||||||||||
As Computed Under Previous Policy | Retained Earnings | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Net income | (38.2) | ||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 72.7 | ||||||||||||
As Computed Under Previous Policy | Retained Earnings | Change in Accounting Principle, Other | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 0 | ||||||||||||
As Computed Under Previous Policy | Accumulated Other Comprehensive Income (Loss) | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Other comprehensive income (loss), net of tax | 231.9 | ||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | (991.7) | ||||||||||||
As Computed Under Previous Policy | Accumulated Other Comprehensive Income (Loss) | Change in Accounting Principle, Other | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | 0 | ||||||||||||
Effect of Accounting Change | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Operating income | $ 28.8 | ||||||||||||
Nonoperating retirement benefit income (expense) | 222.8 | ||||||||||||
Income (loss) before income taxes | 222.8 | ||||||||||||
Net income | $ 699.3 | $ 14.5 | $ 14.4 | $ 14.4 | $ 116.1 | $ 15.8 | 44.7 | $ 16 | 222.8 | ||||
Net income attributable to ATI | $ 699.3 | $ 14.5 | $ 14.4 | $ 14.4 | $ 116.1 | $ 15.8 | $ 44.7 | $ 16 | $ 222.8 | ||||
Basic net income (loss) attributable to ATI per common share (in dollars per share) | $ 5.50 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.89 | $ 0.12 | $ 0.36 | $ 0.13 | $ 1.75 | ||||
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ 5.34 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.77 | $ 0.11 | $ 0.36 | $ 0.10 | $ 1.62 | ||||
Amortization of net actuarial loss | $ (75.6) | ||||||||||||
Net loss arising during the period | (147.2) | ||||||||||||
Total | (222.8) | ||||||||||||
Other comprehensive income (loss), net of tax | (222.8) | ||||||||||||
Retained loss | (850.4) | 1,070 | |||||||||||
Accumulated other comprehensive loss, net of tax | 850.4 | ||||||||||||
Retirement benefits | (222.8) | ||||||||||||
Effect of Accounting Change | Retained Earnings | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Net income | 222.8 | ||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | (850.4) | ||||||||||||
Effect of Accounting Change | Retained Earnings | Change in Accounting Principle, Other | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | (1,073.2) | ||||||||||||
Effect of Accounting Change | Accumulated Other Comprehensive Income (Loss) | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Other comprehensive income (loss), net of tax | (222.8) | ||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 850.4 | ||||||||||||
Effect of Accounting Change | Accumulated Other Comprehensive Income (Loss) | Change in Accounting Principle, Other | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 1,073.2 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 |
Accounting Policies [Abstract] | ||||
Allowances for Doubtful Accounts | $ 3.2 | $ 7.7 | $ 3.8 | $ 4.3 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Leases (Details) | Dec. 31, 2023 |
Accounting Policies [Abstract] | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Short-term debt and current portion of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Government Receivable (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Nov. 30, 2021 | |
Aviation Manufacturing Jobs Protection | |||
Accounting Policies [Abstract] | |||
Grants receivable | $ 22.2 | ||
Government Assistance [Line Items] | |||
Grants receivable | $ 22.2 | ||
Government assistance, transaction duration | 6 months | ||
Reduction of expenses from grant benefits | $ 16.6 | ||
Cash receipts from government assistance | 11 | ||
US States' Economic Development Incentive Program | |||
Accounting Policies [Abstract] | |||
Grants receivable | $ 1.2 | 3.7 | |
Government Assistance [Line Items] | |||
Grants receivable | 1.2 | 3.7 | |
Reduction of expenses from grant benefits | 1.4 | 1.6 | |
Cash receipts from government assistance | $ 3.4 | $ 2.8 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Accounting Policies [Abstract] | |||
Research and Development Expense | $ 20.7 | $ 16.3 | $ 16.5 |
Customer funded research and development costs | $ 1.4 | $ 1.4 | $ 3.5 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies - New and Pending Accounting Pronouncements (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ 1,480.5 | $ 1,157.2 | $ 832.7 | $ 641.4 |
Additional Paid-In Capital | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity, including portion attributable to noncontrolling interest | 1,697.1 | 1,668.1 | 1,596.7 | 1,625.5 |
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (70.1) | $ (480.9) | $ (777.7) | 106.5 |
Accounting Standards Update 2020-06 | Additional Paid-In Capital | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity, including portion attributable to noncontrolling interest | (49.8) | |||
Accounting Standards Update 2020-06 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity, including portion attributable to noncontrolling interest | 4.4 | |||
ATI Convertible Senior Notes, 3.5%, Due 2025 [Member] | Convertible Debt [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | 3.50% | |
ATI Inc., Convertible Senior Notes, 3.5%, Due 2025 | Convertible Debt [Member] | Accounting Standards Update 2020-06 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Stockholders' equity, including portion attributable to noncontrolling interest | $ (45.4) |
Business Segments - Narrative (
Business Segments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Oct. 01, 2023 | Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Segment Reporting Information [Line Items] | |||||||
Gain (loss) on asset sales and sale of business, net | $ (0.6) | $ (105.4) | $ 13.8 | ||||
Proceeds from sales of businesses, net of transaction costs | (0.3) | 0.3 | 53.1 | ||||
Restructuring and other credits (charges) | (31.4) | (23.7) | 10.5 | ||||
Income (loss) from equity method investments | (1.6) | 12.6 | 0.1 | ||||
Total international sales | 1,922.9 | 1,617.4 | 1,264.9 | ||||
Sales by U.S. operations to foreign countries | 1,498.7 | 1,217.9 | 846.3 | ||||
Inventory valuation reserves | 75.5 | 70.9 | |||||
Closed operations and other income (expenses) | (13.3) | (5.6) | 3.1 | ||||
Net gain (loss) on sale of businesses | 0 | 0 | 13.8 | ||||
Income From Government Assistance, CARES Act | 34 | ||||||
Restructuring charges | $ (0.5) | $ (2.6) | $ (1.3) | $ (1.1) | |||
Asset Write-offs | |||||||
Segment Reporting Information [Line Items] | |||||||
Restructuring charges | 10.3 | ||||||
Facility Closing | |||||||
Segment Reporting Information [Line Items] | |||||||
Depreciation | $ 3.8 | ||||||
Sheffield, UK Operations | |||||||
Segment Reporting Information [Line Items] | |||||||
Net gain (loss) on sale of businesses | $ (87.1) | (25.1) | (112.2) | ||||
Pico Rivera, CA Operations | |||||||
Segment Reporting Information [Line Items] | |||||||
Gain (Loss) on disposition of other assets | $ 6.8 | 6.8 | |||||
High Performance Materials & Components | |||||||
Segment Reporting Information [Line Items] | |||||||
Employee Retention Credits, Aviation Manufacturing Jobs Protection Program | 27 | ||||||
Advanced Alloys & Solutions [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Employee retention credits | 7 | ||||||
Allegheny & Tsingshan Stainless | |||||||
Segment Reporting Information [Line Items] | |||||||
Equity method investment ownership percentage | 50% | ||||||
Income (loss) from equity method investments | $ (1.8) | 9.1 | (0.9) | ||||
Allegheny & Tsingshan Stainless | Advanced Alloys & Solutions [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Income (loss) from equity method investments | $ (1.8) | 8.2 | (0.9) | ||||
Uniti [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Equity method investment ownership percentage | 50% | ||||||
Uniti [Member] | Advanced Alloys & Solutions [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Income (loss) from equity method investments | $ 0.2 | 4.4 | 1 | ||||
Operating Segments | |||||||
Segment Reporting Information [Line Items] | |||||||
Depreciation | $ 117.4 | $ 115.4 | $ 117.4 | ||||
Aerospace & Defense Market Concentration Risk [Member] | Revenue Benchmark [Member] | High Performance Materials & Components | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of sales | 85% | ||||||
Energy and Aerospace & Defense Market Concentration [Member] | Revenue Benchmark [Member] | Advanced Alloys & Solutions [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of sales | 60% | ||||||
Commercial Jet Engines Concentration | Revenue Benchmark [Member] | High Performance Materials & Components | |||||||
Segment Reporting Information [Line Items] | |||||||
Percentage of sales | 60% | ||||||
Allegheny Technologies Inc | STAL Precision Stainless Steel Company Limited [Member] | |||||||
Segment Reporting Information [Line Items] | |||||||
Joint venture ownership percentage | 60% |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Oct. 01, 2023 | Jul. 02, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 1,064 | $ 1,025.6 | $ 1,046 | $ 1,038.1 | $ 1,010.4 | $ 1,032 | $ 959.5 | $ 834.1 | $ 4,173.7 | $ 3,836 | $ 2,799.8 |
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 4,638.9 | 4,249.4 | 3,010.7 | ||||||||
Operating Segments | Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 465.2 | 413.4 | 210.9 | ||||||||
Operating Segments | External Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 4,173.7 | 3,836 | 2,799.8 | ||||||||
Operating Segments | High Performance Materials & Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 2,302 | 1,815.7 | 1,248.3 | ||||||||
Operating Segments | High Performance Materials & Components | Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 181.8 | 174.5 | 93.2 | ||||||||
Operating Segments | High Performance Materials & Components | External Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 2,120.2 | 1,641.2 | 1,155.1 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 2,336.9 | 2,433.7 | 1,762.4 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 283.4 | 238.9 | 117.7 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | External Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 2,053.5 | $ 2,194.8 | $ 1,644.7 |
Business Segments (Details8)
Business Segments (Details8) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Inventory valuation reserves | $ 75,500,000 | $ 70,900,000 | |
Segment EBITDA | 710,200,000 | 678,700,000 | $ 417,100,000 |
Corporate expenses | (62,300,000) | (60,300,000) | (53,700,000) |
Closed operations and other income (expenses) | (13,300,000) | (5,600,000) | 3,100,000 |
Depreciation and amortization | (146,100,000) | (142,900,000) | (143,900,000) |
Interest expense, net | (92,800,000) | (87,400,000) | (96,900,000) |
Restructuring and other credits (charges) | (31,400,000) | (23,700,000) | 10,500,000 |
Strike related costs | $ 0 | $ 0 | $ (63,200,000) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Settlement Gain (Loss), Statement Of Income Or Comprehensive Income, Extensible Enumeration, Not Disclosed Flag | Retirement benefit settlement gain (loss) (See Note 14) | Retirement benefit settlement gain (loss) (See Note 14) | Retirement benefit settlement gain (loss) (See Note 14) |
Retirement benefit settlement gain (loss) | $ (41,700,000) | $ 0 | $ 64,900,000 |
Defined Benefit Plan Net Periodic Benefit Cost Credit Immediate Recognition Of Actuarial Gain Loss Statement Of Income Or Comprehensive Income Extensible List Not Disclosed Flag | Pension remeasurement gain (loss) (See Note 14) | Pension remeasurement gain (loss) (See Note 14) | Pension remeasurement gain (loss) (See Note 14) |
Pension remeasurement gain (loss) | $ (26,800,000) | $ 100,300,000 | $ 147,200,000 |
Joint venture restructuring credit (charge) | 0 | 900,000 | 0 |
Debt extinguishment charge | 0 | 0 | (65,500,000) |
Gain (loss) on asset sales and sale of business, net | (600,000) | (105,400,000) | 13,800,000 |
Income (loss) before income taxes | 295,200,000 | 354,600,000 | 233,400,000 |
Pension Benefits [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Retirement benefit settlement gain (loss) | (41,700,000) | (700,000) | 0 |
Pension remeasurement gain (loss) | (26,800,000) | 100,300,000 | 147,200,000 |
High Performance Materials & Components | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Strike related costs | 3,500,000 | ||
Impairment of goodwill | 0 | 0 | 0 |
Various AA&S Segment Operations | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Strike related costs | 59,700,000 | ||
Operating Segments | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Depreciation and amortization | (146,100,000) | (142,900,000) | (143,900,000) |
Operating Segments | High Performance Materials & Components | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment EBITDA | 433,600,000 | 303,400,000 | 170,300,000 |
Depreciation and amortization | (71,100,000) | (68,300,000) | (75,000,000) |
Operating Segments | Advanced Alloys & Solutions [Member] | |||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | |||
Segment EBITDA | 276,600,000 | 375,300,000 | 246,800,000 |
Depreciation and amortization | $ (67,900,000) | $ (67,400,000) | $ (64,500,000) |
Business Segments (Details2)
Business Segments (Details2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 146.1 | $ 142.9 | $ 143.9 |
Capital expenditures | 200.7 | 130.9 | 152.6 |
Operating Segments | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | 146.1 | 142.9 | 143.9 |
Capital expenditures | 200.7 | 130.9 | 152.6 |
Operating Segments | High Performance Materials & Components | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | 71.1 | 68.3 | 75 |
Capital expenditures | 100.4 | 33.3 | 40.2 |
Operating Segments | Corporate [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | 7.1 | 7.2 | 4.4 |
Capital expenditures | 3.1 | 8 | 1.8 |
Operating Segments | Advanced Alloys & Solutions [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | 67.9 | 67.4 | 64.5 |
Capital expenditures | $ 97.2 | $ 89.6 | $ 110.6 |
Business Segments (Details3)
Business Segments (Details3) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 |
Segment Reporting Asset Reconciling Item [Line Items] | |||
Assets | $ 4,985.1 | $ 4,445.6 | $ 4,285.2 |
Deferred taxes | 296.2 | 165.4 | |
Corporate, Non-Segment [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Deferred taxes | 135.7 | 4.7 | 6.3 |
Cash and cash equivalents and other | 861.8 | 710.5 | 740.1 |
High Performance Materials & Components | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Assets | 1,990.9 | 1,749.3 | 1,624.8 |
Advanced Alloys & Solutions [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Assets | $ 1,996.7 | $ 1,981.1 | $ 1,914 |
Business Segments (Details4)
Business Segments (Details4) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Oct. 01, 2023 | Jul. 02, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 1,064 | $ 1,025.6 | $ 1,046 | $ 1,038.1 | $ 1,010.4 | $ 1,032 | $ 959.5 | $ 834.1 | $ 4,173.7 | $ 3,836 | $ 2,799.8 |
Assets | $ 4,985.1 | $ 4,445.6 | $ 4,985.1 | $ 4,445.6 | $ 4,285.2 | ||||||
Percent of total | 100% | 100% | 100% | 100% | 100% | ||||||
United States | |||||||||||
Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 2,250.8 | $ 2,218.6 | $ 1,534.9 | ||||||||
Assets | $ 4,463.7 | $ 3,942.7 | $ 4,463.7 | $ 3,942.7 | $ 3,587 | ||||||
Percent of total | 90% | 89% | 90% | 89% | 84% | ||||||
China | |||||||||||
Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 333.3 | $ 351.8 | $ 370.4 | ||||||||
Assets | $ 295.8 | $ 321.1 | $ 295.8 | $ 321.1 | $ 406.4 | ||||||
Percent of total | 6% | 7% | 6% | 7% | 9% | ||||||
UNITED KINGDOM | |||||||||||
Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 259.1 | $ 217.7 | $ 153.9 | ||||||||
Assets | $ 16.9 | $ 13.4 | $ 16.9 | $ 13.4 | $ 153.9 | ||||||
Percent of total | 0% | 0% | 0% | 0% | 4% | ||||||
Germany | |||||||||||
Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 243 | $ 200.9 | $ 121.3 | ||||||||
Other [Member] | |||||||||||
Long-Lived Assets [Line Items] | |||||||||||
Assets | $ 208.7 | $ 168.4 | $ 208.7 | $ 168.4 | $ 137.9 | ||||||
Percent of total | 4% | 4% | 4% | 4% | 3% |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Oct. 01, 2023 USD ($) | Oct. 02, 2022 USD ($) | Jul. 03, 2022 USD ($) | Apr. 03, 2022 USD ($) | Dec. 31, 2023 USD ($) employee | Jan. 01, 2023 USD ($) employee | Jan. 02, 2022 USD ($) employee | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and other charges (credits) | $ 31.4 | $ 23.7 | $ (10.5) | ||||
Restructuring charges (credits) | $ 7.7 | (4.8) | (11.3) | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | employee | 110 | ||||||
Inventory write-down | 0.8 | ||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring charges | $ (0.5) | $ (2.6) | $ (1.3) | $ (1.1) | |||
Other nonoperating income (expense), litigation reserve | $ (19.9) | (8.6) | $ 0 | (28.5) | 0 | ||
Cost of sales | 3,371.1 | $ 3,121.8 | 2,466.6 | ||||
Facility Idling | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring charges | $ 0.7 | ||||||
Employee Severance | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Reduction in severance related reserves, workforce | employee | 110 | 350 | |||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, Beginning Balance | $ 17.7 | 9.8 | $ 17.7 | $ 43.4 | |||
Restructuring charges | 7.7 | (4.8) | (12) | ||||
Payments for Restructuring | (2.3) | (3.1) | (13.7) | ||||
Restructuring Reserve, Ending Balance | 15.2 | 9.8 | $ 17.7 | ||||
Start Up Costs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring charges | 2.8 | 11.5 | |||||
Unplanned Outage Costs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring charges | $ 1.9 | 1.9 | |||||
Asset Write-offs | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring charges | 10.3 | ||||||
Unusual or Infrequent Item, or Both | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Cost of sales | 23.7 | ||||||
Other Current Liabilities [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, Beginning Balance | 5.4 | ||||||
Restructuring Reserve, Ending Balance | 10.9 | 5.4 | |||||
Other Noncurrent Liabilities [Member] | |||||||
Restructuring Reserve [Roll Forward] | |||||||
Restructuring Reserve, Beginning Balance | 4.4 | ||||||
Restructuring Reserve, Ending Balance | $ 4.3 | $ 4.4 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Jan. 01, 2023 USD ($) | Jan. 02, 2022 USD ($) | Aug. 13, 2021 USD ($) | |
Goodwill [Line Items] | ||||
Goodwill | $ 227,200,000 | $ 227,200,000 | ||
Accumulated goodwill impairment | $ 528,000,000 | 528,000,000 | $ 528,000,000 | |
Flowform Products | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 12,200,000 | |||
Weighted average cost of capital | Fair Value, Inputs, Level 3 [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, fair value measurement input | 0.120 | |||
Long-term growth rate | Fair Value, Inputs, Level 3 [Member] | Minimum | ||||
Goodwill [Line Items] | ||||
Goodwill, fair value measurement input | 0.03 | |||
Long-term growth rate | Fair Value, Inputs, Level 3 [Member] | Maximum | ||||
Goodwill [Line Items] | ||||
Goodwill, fair value measurement input | 0.035 | |||
High Performance Materials & Components | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 227,200,000 | |||
Impairment of goodwill | 0 | $ 0 | $ 0 | |
Forged Products | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 161,200,000 | |||
Percentage of fair value in excess of carrying value | 60% | |||
Specialty Materials [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | $ 66,000,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 7 | $ 8 | $ 8 |
Gross carrying amount | 134.8 | 134.8 | |
Accumulated amortization | 83.7 | 76.3 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2024 | 7 | ||
2025 | 7 | ||
2026 | 7 | ||
2027 | 7 | ||
2028 | 7 | ||
Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 61.2 | 61.2 | |
Accumulated amortization | 38.6 | 35.4 | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 24.8 | 24.8 | |
Accumulated amortization | 12.6 | 11.6 | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 48.8 | 48.8 | |
Accumulated amortization | $ 32.5 | $ 29.3 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2023 USD ($) | Oct. 01, 2023 USD ($) | Jul. 02, 2023 USD ($) | Apr. 02, 2023 USD ($) | Jan. 01, 2023 USD ($) | Oct. 02, 2022 USD ($) | Jul. 03, 2022 USD ($) | Apr. 03, 2022 USD ($) | Dec. 31, 2023 USD ($) segment | Jan. 01, 2023 USD ($) | Jan. 02, 2022 USD ($) | Jan. 03, 2021 USD ($) | |
Revenue from Contract with Customer [Abstract] | ||||||||||||
Sales | $ 1,064,000,000 | $ 1,025,600,000 | $ 1,046,000,000 | $ 1,038,100,000 | $ 1,010,400,000 | $ 1,032,000,000 | $ 959,500,000 | $ 834,100,000 | $ 4,173,700,000 | $ 3,836,000,000 | $ 2,799,800,000 | |
Short-term contract assets | 59,100,000 | 64,100,000 | 59,100,000 | 64,100,000 | 53,900,000 | $ 38,900,000 | ||||||
Short-term contract liabilities | 163,600,000 | 149,100,000 | 163,600,000 | 149,100,000 | 116,200,000 | 111,800,000 | ||||||
Long-term contract liabilities | 39,400,000 | 66,800,000 | $ 39,400,000 | 66,800,000 | 84,400,000 | $ 32,000,000 | ||||||
Number of business segments | segment | 2 | |||||||||||
Revenue, Performance Obligation [Abstract] | ||||||||||||
Confirmed order backlog | 3,800,000,000 | 2,900,000,000 | $ 3,800,000,000 | 2,900,000,000 | 2,100,000,000 | |||||||
Confirmed orders with current performance obligations | 0.70 | 0.70 | ||||||||||
Accounts receivable with customers | 628,200,000 | 586,900,000 | 628,200,000 | 586,900,000 | ||||||||
Contract costs for obtaining and fulfilling contracts | $ 8,100,000 | $ 7,300,000 | 8,100,000 | 7,300,000 | ||||||||
Amortization of contract costs | $ 1,200,000 | $ 1,000,000 | $ 1,000,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Oct. 01, 2023 | Jul. 02, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,064 | $ 1,025.6 | $ 1,046 | $ 1,038.1 | $ 1,010.4 | $ 1,032 | $ 959.5 | $ 834.1 | $ 4,173.7 | $ 3,836 | $ 2,799.8 |
Percent of total revenue | 100% | 100% | 100% | ||||||||
Nickel-based alloys and specialty alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 49% | 52% | 43% | ||||||||
Precision Forgings, Casting and Components [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 17% | 15% | 16% | ||||||||
Titanium and Titanium-based Alloys [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 17% | 11% | 12% | ||||||||
Zirconium and related alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 7% | 8% | 10% | ||||||||
Precision rolled strip | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 10% | 14% | 19% | ||||||||
China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 333.3 | $ 351.8 | $ 370.4 | ||||||||
Germany | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 243 | 200.9 | 121.3 | ||||||||
UNITED KINGDOM | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 259.1 | 217.7 | 153.9 | ||||||||
Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 740.4 | 609.7 | 497.6 | ||||||||
France | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 219.4 | 157.2 | 58.5 | ||||||||
MEXICO | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 127.7 | 80.1 | 63.2 | ||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,250.8 | 2,218.6 | 1,534.9 | ||||||||
Total Aerospace & Defense | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,474.8 | 1,873.6 | 1,132.7 | ||||||||
Total Energy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 687.8 | 753.3 | 591.9 | ||||||||
Automotive | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 210.7 | 302.1 | 305.1 | ||||||||
Food Equipment & Appliances | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 71.9 | 158.5 | 153.1 | ||||||||
Construction/Mining | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 162.9 | 176.4 | 122.2 | ||||||||
Medical Market [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 176.9 | 163.1 | 131.5 | ||||||||
Electronic Devices Market [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 159.9 | 200 | 215.1 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 228.8 | 209 | 148.2 | ||||||||
Jet Engines- Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,333.5 | 1,063.5 | 517.2 | ||||||||
Airframes- Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 739.4 | 468.9 | 262.7 | ||||||||
Defense | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 401.9 | 341.2 | 352.8 | ||||||||
Oil & Gas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 414.6 | 476.7 | 332.3 | ||||||||
Specialty Energy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 273.2 | 276.6 | 259.6 | ||||||||
Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 4,638.9 | 4,249.4 | 3,010.7 | ||||||||
Operating Segments | High Performance Materials & Components | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 2,302 | $ 1,815.7 | $ 1,248.3 | ||||||||
Percent of total revenue | 100% | 100% | 100% | ||||||||
Operating Segments | High Performance Materials & Components | Nickel-based alloys and specialty alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 44% | 49% | 43% | ||||||||
Operating Segments | High Performance Materials & Components | Precision Forgings, Casting and Components [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 33% | 34% | 38% | ||||||||
Operating Segments | High Performance Materials & Components | Titanium and Titanium-based Alloys [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 22% | 17% | 19% | ||||||||
Operating Segments | High Performance Materials & Components | Zirconium and related alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 0% | 0% | 0% | ||||||||
Operating Segments | High Performance Materials & Components | Precision rolled strip | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 1% | 0% | 0% | ||||||||
Operating Segments | High Performance Materials & Components | China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 70.1 | $ 59.8 | $ 49.5 | ||||||||
Operating Segments | High Performance Materials & Components | Germany | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 204.2 | 148.4 | 74.1 | ||||||||
Operating Segments | High Performance Materials & Components | UNITED KINGDOM | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 224.8 | 165.7 | 136.7 | ||||||||
Operating Segments | High Performance Materials & Components | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 431.1 | 342 | 249.2 | ||||||||
Operating Segments | High Performance Materials & Components | France | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 172.4 | 125.7 | 48.7 | ||||||||
Operating Segments | High Performance Materials & Components | MEXICO | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 102.3 | 56.7 | 25.6 | ||||||||
Operating Segments | High Performance Materials & Components | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 915.3 | 742.9 | 571.3 | ||||||||
Operating Segments | High Performance Materials & Components | Total Aerospace & Defense | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,786.9 | 1,318 | 835.5 | ||||||||
Operating Segments | High Performance Materials & Components | Total Energy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 104.5 | 148.6 | 178.3 | ||||||||
Operating Segments | High Performance Materials & Components | Automotive | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 24.6 | 11.2 | 8.7 | ||||||||
Operating Segments | High Performance Materials & Components | Food Equipment & Appliances | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0 | 0.2 | 0.1 | ||||||||
Operating Segments | High Performance Materials & Components | Construction/Mining | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 35 | 34.1 | 24 | ||||||||
Operating Segments | High Performance Materials & Components | Medical Market [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 102.6 | 73.2 | 60.3 | ||||||||
Operating Segments | High Performance Materials & Components | Electronic Devices Market [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 3.1 | 2.4 | 1.2 | ||||||||
Operating Segments | High Performance Materials & Components | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 63.5 | 53.5 | 47 | ||||||||
Operating Segments | High Performance Materials & Components | Jet Engines- Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,255.3 | 975.7 | 480.9 | ||||||||
Operating Segments | High Performance Materials & Components | Airframes- Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 350.6 | 184.1 | 132.8 | ||||||||
Operating Segments | High Performance Materials & Components | Defense | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 181 | 158.2 | 221.8 | ||||||||
Operating Segments | High Performance Materials & Components | Oil & Gas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 10.6 | 35 | 42.2 | ||||||||
Operating Segments | High Performance Materials & Components | Specialty Energy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 93.9 | 113.6 | 136.1 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 2,336.9 | $ 2,433.7 | $ 1,762.4 | ||||||||
Percent of total revenue | 100% | 100% | 100% | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Nickel-based alloys and specialty alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 54% | 54% | 44% | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Precision Forgings, Casting and Components [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 0% | 0% | 0% | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Titanium and Titanium-based Alloys [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 12% | 7% | 6% | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Zirconium and related alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 15% | 14% | 17% | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Precision rolled strip | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 19% | 25% | 33% | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 263.2 | $ 292 | $ 320.9 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Germany | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 38.8 | 52.5 | 47.2 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | UNITED KINGDOM | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 34.3 | 52 | 17.2 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 309.3 | 267.7 | 248.4 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | France | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 47 | 31.5 | 9.8 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | MEXICO | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 25.4 | 23.4 | 37.6 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,335.5 | 1,475.7 | 963.6 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Total Aerospace & Defense | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 687.9 | 555.6 | 297.2 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Total Energy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 583.3 | 604.7 | 413.6 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Automotive | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 186.1 | 290.9 | 296.4 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Food Equipment & Appliances | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 71.9 | 158.3 | 153 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Construction/Mining | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 127.9 | 142.3 | 98.2 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Medical Market [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 74.3 | 89.9 | 71.2 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Electronic Devices Market [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 156.8 | 197.6 | 213.9 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 165.3 | 155.5 | 101.2 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Jet Engines- Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 78.2 | 87.8 | 36.3 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Airframes- Commercial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 388.8 | 284.8 | 129.9 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Defense | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 220.9 | 183 | 131 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Oil & Gas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 404 | 441.7 | 290.1 | ||||||||
Operating Segments | Advanced Alloys & Solutions [Member] | Specialty Energy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 179.3 | 163 | 123.5 | ||||||||
External Customers | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 4,173.7 | 3,836 | 2,799.8 | ||||||||
External Customers | Operating Segments | High Performance Materials & Components | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,120.2 | 1,641.2 | 1,155.1 | ||||||||
External Customers | Operating Segments | Advanced Alloys & Solutions [Member] | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 2,053.5 | $ 2,194.8 | $ 1,644.7 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Accounts Receivable Reserve for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning Balance | $ 7.7 | $ 3.8 | $ 4.3 |
Expense to increase the reserve | 0.1 | 4.6 | 0.3 |
Write-off of uncollectible accounts | (4.6) | (0.7) | (0.8) |
Ending Balance | $ 3.2 | $ 7.7 | $ 3.8 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Contract Assets, Current [Roll Forward] | |||
Balance as of beginning of fiscal year | $ 64.1 | $ 53.9 | $ 38.9 |
Recognized in current year | 84.1 | 105 | 93.8 |
Reclassified to accounts receivable | (89.5) | (88) | (76.2) |
Reclassification to/from contract liability | 0.4 | (6.8) | (2.6) |
Balance as of period end | 59.1 | 64.1 | 53.9 |
Contract Liabilities, Current [Roll Forward] | |||
Balance as of beginning of fiscal year | 149.1 | 116.2 | 111.8 |
Recognized in current year | 133.4 | 183.1 | 161.5 |
Amounts in beginning balance reclassified to revenue | (107.9) | (99.8) | (85.1) |
Current year amounts reclassified to revenue | (40.9) | (72.3) | (72.9) |
Divestiture | 0 | 0 | (0.8) |
Other | (0.7) | 0.7 | 0.1 |
Reclassification to/from long-term and contract asset | 30.6 | 21.2 | 1.6 |
Balance as of period end | 163.6 | 149.1 | 116.2 |
Contract Liabilities, Noncurrent [Roll Forward] | |||
Balance as of beginning of fiscal year | 66.8 | 84.4 | 32 |
Recognized in current year | 2.8 | 10.4 | 56.6 |
Reclassification to/from short-term | (30.2) | (28) | (4.2) |
Balance as of period end | $ 39.4 | $ 66.8 | $ 84.4 |
Inventories Schedule of Invento
Inventories Schedule of Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 |
Inventory, Gross [Abstract] | ||
Raw materials and supplies | $ 234.9 | $ 213.6 |
Work-in-process | 973.6 | 941.1 |
Finished goods | 114.5 | 111.9 |
Total inventories at current cost | 1,323 | 1,266.6 |
Inventory valuation reserves | (75.5) | (70.9) |
Total inventories, net | $ 1,247.5 | $ 1,195.7 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Property Plant And Equipment Details [Abstract] | |||
Land | $ 32.3 | $ 31.5 | |
Buildings | 692.7 | 601.6 | |
Equipment and leasehold improvements | 3,024.3 | 2,895.5 | |
Property plant and equipment, gross | 3,749.3 | 3,528.6 | |
Accumulated depreciation and amortization | (2,083.4) | (1,979.5) | |
Property, plant and equipment, net | 1,665.9 | 1,549.1 | |
Construction in progress | 305.9 | 262.1 | |
Depreciation, Depletion and Amortization [Abstract] | |||
Software and other amortization | 7 | 8 | $ 8 |
Total depreciation and amortization | 146.1 | 142.9 | 143.9 |
Capital Expenditures Incurred but Not yet Paid | 41.9 | 38.3 | |
Operating Segments | |||
Depreciation, Depletion and Amortization [Abstract] | |||
Depreciation of property, plant and equipment | 117.4 | 115.4 | 117.4 |
Software and other amortization | 28.7 | 27.5 | 26.5 |
Total depreciation and amortization | $ 146.1 | $ 142.9 | $ 143.9 |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jul. 03, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Aug. 13, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Goodwill | $ 227.2 | $ 227.2 | ||||
Gain (loss) on disposal | 0 | 0 | $ 13.8 | |||
Proceeds from sales of businesses, net of transaction costs | $ (0.3) | 0.3 | 53.1 | |||
Flowform Products | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Consideration received | $ 55 | |||||
Proceeds from sale of businesses, net of transaction costs | 53.1 | |||||
Goodwill | $ 12.2 | |||||
Gain (loss) on disposal | 13.8 | |||||
Sheffield, UK Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (loss) on disposal | $ (87.1) | $ (25.1) | (112.2) | |||
Prior year revenue from facilities sold | 36 | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Defined Benefit Pension Plan | (26.8) | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Net Pension Asset | (26.1) | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, AOCI Pension | (0.7) | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Cumulative Translation Adjustment | (20) | |||||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | $ (7) | |||||
Sheffield, UK Operations | Total Energy | Revenue Benchmark | Product Concentration Risk | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Percentage of sales | 80% | |||||
Pico Rivera, CA Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (Loss) on disposition of other assets | $ 6.8 | 6.8 | ||||
Proceeds from Sale of Other Assets | $ 6.2 |
Joint Ventures (Details)
Joint Ventures (Details) - USD ($) $ in Millions | 10 Months Ended | 12 Months Ended | 58 Months Ended | ||
Dec. 30, 2018 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 01, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||
Cash and cash equivalents | $ 743.9 | $ 584 | $ 584 | ||
Income (loss) from equity method investments | (1.6) | 12.6 | $ 0.1 | ||
Accounts receivable, net | 625 | 579.2 | 579.2 | ||
Undistributed earnings of investees accounted for under equity method | 0.7 | ||||
Sale to noncontrolling interests | 0 | 6.4 | 0 | ||
Sales of subsidiary shares to noncontrolling interest | 0.9 | ||||
Noncontrolling Interests | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Sales of subsidiary shares to noncontrolling interest | 0.9 | ||||
Shanghai STAL Precision Stainless Steel Co Ltd [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cash and cash equivalents | 75.3 | ||||
Next Gen Alloys LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cash and cash equivalents | $ 1 | ||||
Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment ownership percentage | 50% | ||||
Income (loss) from equity method investments | $ (1.8) | 9.1 | (0.9) | ||
Business Exit Costs | (1.8) | ||||
Uniti [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment ownership percentage | 50% | ||||
Accounts receivable, net | 4.5 | 4.5 | |||
Uniti [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Revenue from related parties | $ 4.9 | 45 | 45.8 | ||
Advanced Alloys & Solutions [Member] | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity method investments | (1.8) | 8.2 | (0.9) | ||
Advanced Alloys & Solutions [Member] | Uniti [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity method investments | 0.2 | 4.4 | $ 1 | ||
Advanced Alloys & Solutions [Member] | Related Party | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Due from affiliates | 1.5 | 3.2 | 3.2 | ||
Prepaid expenses and other current assets [Member] | Advanced Alloys & Solutions [Member] | Related Party | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Due from affiliates | 0.5 | 0.4 | 0.4 | ||
Other Noncurrent Assets [Member] | Advanced Alloys & Solutions [Member] | Related Party | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Due from affiliates | $ 1 | 2.8 | 2.8 | ||
Allegheny Technologies Inc | Shanghai STAL Precision Stainless Steel Co Ltd [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture ownership percentage | 60% | ||||
Allegheny Technologies Inc | Next Gen Alloys LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture ownership percentage | 51% | ||||
Allegheny Technologies Inc | China Baowu Steel Group Corporation Limited [Member] | Shanghai STAL Precision Stainless Steel Co Ltd [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture ownership percentage by unaffiliated entity | 40% | ||||
VSMPO | VSMPO | Uniti [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint venture ownership percentage by unaffiliated entity | 50% | ||||
Tsingshan Group | Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity method investment ownership percentage | 50% | ||||
Sale to noncontrolling interests | $ 12 | 5.5 | $ 17.5 | ||
Allegheny & Tsingshan Stainless | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income from Tariff Refunds | 19.7 | ||||
Allegheny & Tsingshan Stainless | Import Duties | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Income (loss) from equity method investments | $ 9.9 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 |
Loss Contingencies [Line Items] | |||
Asset retirement obligation | $ 18.3 | $ 17.8 | $ 19 |
Asset Retirement Obligations -
Asset Retirement Obligations - Change in Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Balance at beginning of year | $ 17.8 | $ 19 |
Accretion expense | 0.7 | 0.8 |
Payments | (0.2) | (2) |
Balance at end of year | $ 18.3 | $ 17.8 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 |
Cash and Cash Equivalents [Abstract] | ||
Cash | $ 329.8 | $ 164.9 |
Other short-term investments | 414.1 | 419.1 |
Total cash and cash equivalents | $ 743.9 | $ 584 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 |
Additional Financial Information Disclosure [Abstract] | ||
Accrued salaries, wages and payroll liabilities | $ 102.3 | $ 100.8 |
Accrued interest | $ 23.7 | $ 11.8 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Other Non-operating Income (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Oct. 02, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Rent, royalty income and other income | $ 2.6 | $ 2.3 | $ 1.1 | ||
Gains from disposal of property, plant and equipment, net | 0.3 | 0.2 | 2.9 | ||
Income (loss) from equity method investments | (1.6) | 12.6 | 0.1 | ||
Joint venture restructuring credit (charge) | 0 | 0.9 | 0 | ||
Net gain (loss) on sale of businesses | 0 | 0 | 13.8 | ||
Other nonoperating income (expense), litigation reserve | $ (19.9) | $ (8.6) | 0 | (28.5) | 0 |
Other | 0 | 0 | 0.3 | ||
Other income (loss), net | 1.3 | (12.5) | 18.2 | ||
Gain (loss) on asset sales and sale of business, net | (0.6) | (105.4) | 13.8 | ||
Supplier Finance Program, Obligation, Current | $ 15.6 | $ 23.7 | |||
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable | |||
Flowform Products | |||||
Disaggregation of Revenue [Line Items] | |||||
Net gain (loss) on sale of businesses | $ 13.8 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2023 | Jan. 01, 2023 | Aug. 11, 2023 | Sep. 09, 2022 | Sep. 08, 2022 | Jan. 02, 2022 | |
Debt Instrument [Line Items] | ||||||
Debt Issuance Costs, Net | $ 19,600,000 | $ 17,200,000 | ||||
Total short-term and long-term debt | 2,179,600,000 | 1,748,000,000 | ||||
Short-term debt and current portion of long-term debt | 31,900,000 | 41,700,000 | ||||
Total long-term debt | $ 2,147,700,000 | $ 1,706,300,000 | ||||
ATI $350 million 5.875% Senior Notes due 2027 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate stated percentage | 5.875% | 5.875% | ||||
Debt instrument carrying amount | $ 350,000,000 | $ 350,000,000 | ||||
Debt Instrument, Issuer | ATI Inc. | ATI Inc. | ||||
Debt Instrument, Maturity Date | Dec. 01, 2027 | Dec. 01, 2027 | ||||
ATI $287.5 million Convertible Senior Notes, 4.75%, Due 2022 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate stated percentage | 4.75% | |||||
Allegheny Ludlum 6.95% Debentures due 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate stated percentage | 6.95% | 6.95% | ||||
Debt instrument carrying amount | $ 150,000,000 | $ 150,000,000 | ||||
Debt Instrument, Issuer | Allegheny Ludlum | Allegheny Ludlum | ||||
Debt Instrument, Maturity Date | Dec. 15, 2025 | Dec. 15, 2025 | ||||
ATI 2031Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate stated percentage | 5.125% | 5.125% | ||||
Debt instrument carrying amount | $ 350,000,000 | $ 350,000,000 | ||||
Debt instrument, term | 10 years | |||||
Debt Instrument, Issuer | ATI Inc. | ATI Inc. | ||||
Debt Instrument, Maturity Date | Oct. 01, 2031 | Oct. 01, 2031 | ||||
ATI 2029 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate stated percentage | 4.875% | 4.875% | ||||
Debt instrument carrying amount | $ 325,000,000 | $ 325,000,000 | ||||
Debt instrument, term | 8 years | |||||
Debt Instrument, Issuer | ATI Inc. | ATI Inc. | ||||
Debt Instrument, Maturity Date | Oct. 01, 2029 | Oct. 01, 2029 | ||||
2027 Term Loan | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate stated percentage | 4.21% | |||||
Debt instrument carrying amount | $ 200,000,000 | $ 200,000,000 | ||||
Debt Instrument, Issuer | ATI Inc. | ATI Inc. | ||||
Debt Instrument, Maturity Date | Sep. 30, 2027 | Sep. 30, 2027 | ||||
Domestic Bank Group $600 million asset-based credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Short-Term Debt | $ 0 | $ 0 | ||||
ATI 2030 Notes | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate stated percentage | 7.25% | |||||
Debt instrument carrying amount | $ 425,000,000 | 0 | ||||
Debt Issuance Costs, Net | $ 6,200,000 | |||||
Debt instrument, term | 7 years | |||||
Debt Instrument, Issuer | ATI Inc. | |||||
Debt Instrument, Maturity Date | Aug. 15, 2030 | |||||
Finance leases and other [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument carrying amount | $ 102,800,000 | 79,400,000 | ||||
Foreign credit agreements [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument carrying amount | $ 5,000,000 | $ 19,400,000 | ||||
Convertible Debt [Member] | ATI Convertible Senior Notes, 3.5%, Due 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument interest rate stated percentage | 3.50% | 3.50% | 3.50% | |||
Debt instrument carrying amount | $ 291,400,000 | $ 291,400,000 | ||||
Debt Issuance Costs, Net | $ 2,900,000 | $ 4,800,000 | ||||
Debt Instrument, Issuer | ATI Inc. | ATI Inc. | ||||
Debt Instrument, Maturity Date | Jun. 15, 2025 | Jun. 15, 2025 | ||||
Revolving Credit Facility [Member] | Domestic Bank Group $600 million asset-based credit facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt Issuance Costs, Net | $ 2,400,000 | $ 1,700,000 |
Debt - Narrative (Details)
Debt - Narrative (Details) $ / shares in Units, shares in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Aug. 11, 2023 USD ($) | Oct. 01, 2023 USD ($) | Dec. 31, 2023 USD ($) tradingDays $ / shares | Jan. 01, 2023 USD ($) shares | Jan. 02, 2022 USD ($) $ / shares | Sep. 09, 2027 USD ($) | Sep. 09, 2022 USD ($) | Sep. 08, 2022 USD ($) | Jan. 03, 2021 USD ($) | Dec. 31, 2013 | |
Debt Instrument [Line Items] | ||||||||||
Payments of debt issuance costs | $ 6,200,000 | $ 0 | $ 9,500,000 | |||||||
Debt extinguishment charge | 0 | 0 | 65,500,000 | |||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | 0 | 0 | 64,500,000 | |||||||
Debt Issuance Costs, Net | 19,600,000 | 17,200,000 | ||||||||
Interest expense, net | 92,800,000 | 87,400,000 | 96,900,000 | |||||||
Percentage of Forecast [Abstract] | ||||||||||
Conversion of convertible notes | $ 82,500,000 | |||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | shares | 5.7 | |||||||||
Repayment of Long-term Debt, Long-term Lease Obligation, and Capital Security | 25,200,000 | $ 23,100,000 | 515,600,000 | |||||||
Interest expense | 105,800,000 | 92,100,000 | 97,600,000 | |||||||
Interest costs capitalized | 13,500,000 | 5,100,000 | 4,300,000 | |||||||
Interest costs paid | 114,700,000 | 92,800,000 | 97,500,000 | |||||||
Interest income | 13,000,000 | 4,700,000 | 700,000 | |||||||
2024 | 31,900,000 | |||||||||
2025 | 465,300,000 | |||||||||
2026 | 18,500,000 | |||||||||
2027 | 565,300,000 | |||||||||
2028 | 9,600,000 | |||||||||
Debt extinguishment charge | 0 | 0 | $ (65,500,000) | |||||||
Pension Benefits [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Employer contributions | $ 222,000,000 | 278,000,000 | 57,400,000 | |||||||
Percentage of Forecast [Abstract] | ||||||||||
Pension plan contributions | $ 222,000,000 | 278,000,000 | 57,400,000 | |||||||
Fair Value Measurements at Reporting Date Using Total Estimated Fair Value | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | 2,746,700,000 | 1,964,500,000 | ||||||||
Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | 2,438,900,000 | 1,665,700,000 | ||||||||
Foreign credit agreements [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument carrying amount | $ 5,000,000 | $ 19,400,000 | ||||||||
ATI $500 million 5.875% Senior Notes due 2023 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 5.875% | |||||||||
Increase in interest expense per downgrade notch, percent | 0.25% | |||||||||
Maximum number of downgrade notches | 4 | |||||||||
Maximum increase in interest rate expense, percent | 2% | |||||||||
Debt instrument carrying amount | $ 500,000,000 | |||||||||
Write off of Deferred Debt Issuance Cost | $ 1,000,000 | |||||||||
ATI $500 million 5.875% Senior Notes due 2023 [Member] | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 7.875% | |||||||||
ATI Convertible Senior Notes, 4.75%, Due 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 4.75% | |||||||||
ATI Convertible Senior Notes, 4.75%, Due 2022 [Member] | Convertible Debt [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Conversion price of convertible notes | $ / shares | $ 14.45 | |||||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.40% | 5.40% | ||||||||
Interest Expense, Debt, Excluding Amortization | $ 2,000,000 | $ 4,000,000 | ||||||||
Amortization of Debt Issuance Costs | 300,000 | 500,000 | ||||||||
Interest expense, net | $ 2,300,000 | $ 4,500,000 | ||||||||
Percentage of Forecast [Abstract] | ||||||||||
Convertible debt conversion rate in shares of stock | 0.0692042 | |||||||||
ATI $350 million 5.875% Senior Notes due 2027 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 5.875% | 5.875% | ||||||||
Debt instrument carrying amount | $ 350,000,000 | $ 350,000,000 | ||||||||
ATI Convertible Senior Notes, 3.5%, Due 2025 [Member] | Convertible Debt [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 3.50% | 3.50% | 3.50% | |||||||
Debt instrument carrying amount | $ 291,400,000 | $ 291,400,000 | ||||||||
Number of equity instruments issuable | 18,800,000 | |||||||||
Conversion price of convertible notes | $ / shares | $ 15.49 | |||||||||
Debt Instrument, Convertible, Redemption Price As A Percent Of Principal Amount | 100% | |||||||||
Debt Instrument, Convertible, Threshold Percentage of Stock Price Trigger | 130% | |||||||||
Debt Instrument, Convertible, Threshold Trading Days | tradingDays | 20 | |||||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | tradingDays | 30 | |||||||||
Debt Issuance Costs, Net | $ 2,900,000 | $ 4,800,000 | ||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.20% | 4.20% | 4.20% | |||||||
Debt Instrument, Convertible, Cap Price | $ / shares | $ 19.76 | |||||||||
Interest Expense, Debt, Excluding Amortization | $ 10,200,000 | $ 10,200,000 | $ 10,200,000 | |||||||
Amortization of Debt Issuance Costs | 1,900,000 | 1,800,000 | 1,700,000 | |||||||
Interest expense, net | $ 12,100,000 | 12,000,000 | 11,900,000 | |||||||
Percentage of Forecast [Abstract] | ||||||||||
Convertible debt conversion rate in shares of stock | 0.0645745 | |||||||||
ATI Convertible Senior Notes, 3.5%, Due 2025 [Member] | Convertible Debt [Member] | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) | Fair Value Measurements at Reporting Date Using Total Estimated Fair Value | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt | $ 864,000,000 | $ 590,000,000 | ||||||||
ATI 2029 and 2031 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, redemption price, percentage | 101% | |||||||||
Proceeds from Debt, Net of Issuance Costs | 665,700,000 | |||||||||
ATI 2029 and 2031 Notes | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, notice period required for redemption | 15 days | |||||||||
ATI 2029 and 2031 Notes | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, notice period required for redemption | 60 days | |||||||||
ATI 2029 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 4.875% | 4.875% | ||||||||
Payments of debt issuance costs | 4,700,000 | |||||||||
Debt instrument carrying amount | $ 325,000,000 | $ 325,000,000 | ||||||||
Debt instrument, term | 8 years | |||||||||
ATI 2031Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 5.125% | 5.125% | ||||||||
Payments of debt issuance costs | $ 4,700,000 | |||||||||
Debt instrument carrying amount | $ 350,000,000 | $ 350,000,000 | ||||||||
Debt instrument, term | 10 years | |||||||||
ATI Inc., Convertible Senior Notes, 4.75%, Due 2022 | ||||||||||
Percentage of Forecast [Abstract] | ||||||||||
Repayment of Long-term Debt, Long-term Lease Obligation, and Capital Security | 1,700,000 | |||||||||
Domestic Bank Group $600 million asset-based credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility amount outstanding | $ 31,700,000 | |||||||||
Average outstanding amount | 13,000,000 | 0 | ||||||||
Percentage of Forecast [Abstract] | ||||||||||
Bridge Loan | 60,000,000 | |||||||||
Short-Term Debt | $ 0 | 0 | ||||||||
Interest rate during period | 6.50% | |||||||||
2027 Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 4.21% | |||||||||
Debt instrument carrying amount | $ 200,000,000 | 200,000,000 | ||||||||
Debt Instrument, Prepayment Increments, Minimum | $ 25,000,000 | |||||||||
2027 Term Loan | Secured Overnight Financing Rate (SOFR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate spread | 2% | |||||||||
ATI 2030 Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 7.25% | |||||||||
Debt instrument carrying amount | $ 425,000,000 | $ 0 | ||||||||
Debt Issuance Costs, Net | $ 6,200,000 | |||||||||
Debt instrument, term | 7 years | |||||||||
Debt instrument, redemption price, percentage | 101% | |||||||||
Proceeds from Debt, Net of Issuance Costs | $ 418,800,000 | |||||||||
ATI 2030 Notes | Minimum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, notice period required for redemption | 15 days | |||||||||
ATI 2030 Notes | Maximum | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument, notice period required for redemption | 60 days | |||||||||
Allegheny Ludlum 6.95% Debentures due 2025 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 6.95% | 6.95% | ||||||||
Debt instrument carrying amount | $ 150,000,000 | $ 150,000,000 | ||||||||
Allegheny Ludlum 6.95% Debentures due 2025 [Member] | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 6.95% | |||||||||
Revolving Credit Facility [Member] | Domestic Bank Group $600 million asset-based credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit maximum borrowing capacity | $ 600,000,000 | |||||||||
Fixed charge coverage ratio | 1 | |||||||||
Remaining borrowing capacity, percent of minimum borrowing capacity | 10% | |||||||||
Minimum remaining borrowing capacity | $ 60,000,000 | |||||||||
Debt Issuance Costs, Net | $ 2,400,000 | $ 1,700,000 | ||||||||
Debt Covenant, Undrawn Availability Requirement, Amount | $ 120,000,000 | |||||||||
Debt Covenant, Undrawn Availability Requirement, Percent Of Total Available Liquidity | 20% | |||||||||
Revolving Credit Facility [Member] | Domestic Bank Group $600 million asset-based credit facility | Minimum | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate spread | 0.25% | |||||||||
Revolving Credit Facility [Member] | Domestic Bank Group $600 million asset-based credit facility | Minimum | Secured Overnight Financing Rate (SOFR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate spread | 1.25% | |||||||||
Revolving Credit Facility [Member] | Domestic Bank Group $600 million asset-based credit facility | Maximum | Base Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate spread | 0.75% | |||||||||
Revolving Credit Facility [Member] | Domestic Bank Group $600 million asset-based credit facility | Maximum | Secured Overnight Financing Rate (SOFR) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate spread | 1.75% | |||||||||
Letter of Credit [Member] | Domestic Bank Group $600 million asset-based credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit maximum borrowing capacity | $ 200,000,000 | |||||||||
Foreign Line of Credit | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit maximum borrowing capacity | 58,000,000 | |||||||||
Interest Rate Swap [Member] | 2027 Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Derivative notional amount | $ 50,000,000 | |||||||||
Forecast | Revolving Credit Facility [Member] | Domestic Bank Group $600 million asset-based credit facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Increase to Maximum Borrowing Capacity | $ 300,000,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 01, 2024 | |
Leases [Abstract] | ||||
Progress payments made on behalf of company, paid | $ 28.4 | |||
Progress payments made on behalf of company, scheduled to be paid | $ 39.7 | |||
Lessee, finance lease, lease not yet commenced, right-of-use asset to be recognized | 68.1 | |||
Lessee, finance lease, lease not yet commenced, liability to be recognized | $ 68.1 | |||
Proceeds from sale of ongoing CIP projects converted to leases | $ 2.8 | $ 1.8 | $ 16.2 |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost Components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Finance Lease Cost: | |||
Amortization of right of use asset | $ 10.9 | $ 8.9 | $ 7.1 |
Interest on lease liabilities | 4.6 | 4.1 | 3.1 |
Operating lease cost | 17.6 | 16.4 | 22.7 |
Short-term lease cost | 4.5 | 2.9 | 1.6 |
Variable lease cost | 1 | 1 | 0.9 |
Sublease income | (0.4) | 0 | (0.3) |
Total lease cost | 38.2 | 33.3 | 35.1 |
Cash paid for amounts included in the measurement of lease liabilities | |||
Operating cash flows from finance leases | 4.6 | 4.1 | 3 |
Operating cash flows from operating leases | 16.8 | 17.4 | 20 |
Financing cash flows from finance leases | 24.9 | 20.9 | 14.3 |
Right of use assets obtained in exchange for new finance lease liabilities | 54.6 | 15.3 | 58.9 |
Right of use assets obtained in exchange for new operating lease liabilities | $ 25.8 | $ 18 | $ 4.8 |
Weighted average remaining lease term - finance leases | 4 years | 4 years | 5 years |
Weighted average remaining lease term - operating leases | 7 years | 6 years | 5 years |
Weighted average discount rate - finance leases | 5.40% | 5.60% | 5.20% |
Weighted average discount rate - operating leases | 7.10% | 6.80% | 6.50% |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Liability Maturities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 17 |
2025 | 14.4 |
2026 | 13.2 |
2027 | 10.4 |
2028 | 8.2 |
2029 and thereafter | 24.9 |
Total undiscounted lease payments | 88.1 |
Present value adjustment | (19.4) |
Operating lease liabilities | $ 68.7 |
Leases - Schedule of Finance Le
Leases - Schedule of Finance Lease Liability Maturities (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 32.4 |
2025 | 27.8 |
2026 | 20.8 |
2027 | 16.9 |
2028 | 10.5 |
2029 and thereafter | 9.1 |
Total undiscounted lease payments | 117.5 |
Present value adjustment | (15.3) |
Finance lease liabilities | $ 102.2 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Liabilities |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging - Narrative (Details) € in Millions, lb in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2023 USD ($) lb | Dec. 31, 2023 EUR (€) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Percentage of estimated annual nickel requirements | 6% | |
Derivative [Line Items] | ||
Pre-tax cash flow hedge gain (loss) to be reclassified within twelve months | $ (12.3) | |
Nickel [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount (in pounds of nickel) | lb | 4 | |
Cash Flow Hedging [Member] | Natural gas contracts [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Percentage Of Forecasted Natural Gas Usage Hedged for 2024 | 75% | |
Percentage of forecasted natural gas usage hedged for 2025 | 35% | |
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Maturity Dates Through 2023 | ||
Derivative [Line Items] | ||
Derivative notional amount | € | € 0 | |
2027 Term Loan | ||
Derivative [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.21% | 4.21% |
2027 Term Loan | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative notional amount | $ 50 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | $ 0.9 | $ 18 |
Fair value of derivative liability | 14.2 | 4.6 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0.9 | 18 |
Fair value of derivative liability | 14.2 | 4.6 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0.1 | 0 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0.7 | 1.4 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0 | 0.5 |
Nickel and other raw material contracts [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0 | 12.5 |
Nickel and other raw material contracts [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0 | 0.5 |
Nickel and other raw material contracts [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 7.5 | 2.1 |
Natural gas contracts [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0 | 2.4 |
Natural gas contracts [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0.1 | 0.7 |
Natural gas contracts [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 5.6 | 2 |
Natural gas contracts [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | $ 1.1 | $ 0.5 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging - Schedule of Derivative Instruments Gain (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gain (loss) on hedge transactions | $ (28.5) | $ 53.8 | $ 15.5 |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) | (2.5) | 42.8 | $ 11.4 |
Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gain (loss) on hedge transactions | (21.8) | 41 | |
Cost of Sales and Interest Expense [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) | (1.9) | 32.6 | |
Nickel and other raw material contracts [Member] | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gain (loss) on hedge transactions | (11) | 27.1 | |
Nickel and other raw material contracts [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) | 2.5 | 20.5 | |
Natural gas contracts [Member] | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gain (loss) on hedge transactions | (11.3) | 10.9 | |
Natural gas contracts [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) | (5.7) | 11.5 | |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gain (loss) on hedge transactions | 0.2 | 0.7 | |
Foreign Exchange Contract [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) | 0.2 | 0.7 | |
Interest Rate Swap [Member] | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Net derivatives gain (loss) on hedge transactions | 0.3 | 2.3 | |
Interest Rate Swap [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) | $ 1.1 | $ (0.1) |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Jan. 01, 2023 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Derivative Asset Statement Of Financial Position Extensible Enumeration Not Disclosed Flag | Assets | |
Derivative Liability Statement Of Financial Position Extensible Enumeration Not Disclosed Flag | Liabilities | |
Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 743.9 | $ 584 |
Derivative financial instruments: Assets | 0 | 0 |
Derivative financial instruments: Liabilities | 0 | 0 |
Debt | 2,438.9 | 1,665.7 |
Fair Value Measurements at Reporting Date Using Significant Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Derivative financial instruments: Assets | 0.9 | 18 |
Derivative financial instruments: Liabilities | 14.2 | 4.6 |
Debt | 307.8 | 298.8 |
Total Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 743.9 | 584 |
Derivative financial instruments: Assets | 0.9 | 18 |
Derivative financial instruments: Liabilities | 14.2 | 4.6 |
Debt | 2,199.2 | 1,765.2 |
Fair Value Measurements at Reporting Date Using Total Estimated Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 743.9 | 584 |
Derivative financial instruments: Assets | 0.9 | 18 |
Derivative financial instruments: Liabilities | 14.2 | 4.6 |
Debt | 2,746.7 | 1,964.5 |
Fair Value Measurements at Reporting Date Using Total Estimated Fair Value | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) | ATI Convertible Senior Notes, 3.5%, Due 2025 [Member] | Convertible Debt [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt | $ 864 | $ 590 |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments - Narrative (Details) | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Dec. 31, 2013 |
ATI Convertible Senior Notes, 4.75%, Due 2022 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt instrument interest rate stated percentage | 4.75% | |||
ATI $500 million 5.875% Senior Notes due 2023 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt instrument interest rate stated percentage | 5.875% | |||
Allegheny Ludlum 6.95% Debentures due 2025 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt instrument interest rate stated percentage | 6.95% | 6.95% | ||
Allegheny Ludlum 6.95% Debentures due 2025 [Member] | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Debt instrument interest rate stated percentage | 6.95% |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Oct. 01, 2023 USD ($) | Dec. 29, 2024 | Dec. 31, 2023 USD ($) employee | Jan. 01, 2023 USD ($) | Jan. 02, 2022 USD ($) | Jan. 03, 2021 | Dec. 29, 2019 | Oct. 17, 2023 uSRetireeAndBeneficiary | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Projected Retirement Benefit Expense In Next 12 months | $ 21 | |||||||
Defined Contribution Plan, Cost | 38.8 | $ 31.1 | $ 20.4 | |||||
Income tax provision (benefit) | (128.2) | 15.5 | 26.8 | |||||
Settlement loss (gain) included in net income (loss) | 1.1 | 0.7 | (21.9) | |||||
Transfer Of Defined Benefit Pension Plan, Percentage | 85% | |||||||
Number Of U.S. Retirees And Beneficiaries Transferred | uSRetireeAndBeneficiary | 8,200 | |||||||
Number Of U.S. Retirees And Beneficiaries | uSRetireeAndBeneficiary | 1,980 | |||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Post- retirement benefit plans [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Income tax provision (benefit) | (1.4) | (2.8) | 6.2 | |||||
Settlement loss (gain) included in net income (loss) | 1.1 | 0.7 | (21.9) | |||||
Collective-Bargaining Arrangement, Other | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Income tax provision (benefit) | 15.5 | |||||||
Other Postretirement Benefits | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Employer contributions | 0 | 0 | ||||||
Projected Retirement Benefit Expense In Next 12 months | 15 | |||||||
Defined Contribution Plan, Cost | $ 1 | $ 1 | $ 0 | |||||
Assumed increase in per capita cost of covered benefits in next 12 months | 7.20% | |||||||
Assumed ultimate health care cost trend rate | 4% | |||||||
Expected long-term rate of return on assets | 0% | 0% | 0% | |||||
Fair value of plan assets | $ 0 | $ 0 | $ 0 | |||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 0 | 0 | $ 43 | |||||
Settlement loss (gain) included in net income (loss) | 0 | 0 | ||||||
Pension Benefits [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Employer contributions | $ 222 | 278 | 57.4 | |||||
Projected Retirement Benefit Expense In Next 12 months | 6 | |||||||
Accumulated benefit obligation | $ 283.1 | $ 1,716.8 | ||||||
Expected long-term rate of return on assets | 6.43% | 6.71% | ||||||
Actual return on plan assets | 2% | (14.50%) | 12.40% | 15.20% | 15.10% | |||
Fair value of plan assets | $ 289.1 | $ 1,599.5 | $ 2,120.9 | |||||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Settlement | 1,350.6 | 0 | ||||||
Settlement loss (gain) included in net income (loss) | 1.1 | 0.7 | ||||||
Pension Benefits [Member] | Global debt securities and cash [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Unfunded commitments | 7 | |||||||
Pension Benefits [Member] | Private equity [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Unfunded commitments | 33 | |||||||
Fair value of plan assets | 60.8 | 224.3 | ||||||
Pension Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Fair value of plan assets | 0 | 0 | ||||||
Pension Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Private equity [Member] | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Fair value of plan assets | $ 0 | $ 0 | ||||||
Pension Benefits [Member] | Forecast | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Expected long-term rate of return on assets | 5.80% | |||||||
Pension Benefits [Member] | United States | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Defined benefit plan, number of employees accruing benefit service | employee | 800 | |||||||
Percent reduction in defined benefit plan participation | 60% | |||||||
Employer contributions | $ 272 | $ 50 | $ 67 | |||||
Nonqualified plans | ||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||
Estimated employer contributions in next 12 months | $ 6 |
Retirement Benefits (Details 1)
Retirement Benefits (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Pension remeasurement gain (loss) | $ (26.8) | $ 100.3 | $ 147.2 |
Settlement loss (gain) | 41.7 | 0 | (64.9) |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | 6 | 11.9 | 15.1 |
Interest cost on benefits earned in prior years | 79.7 | 69.7 | 68.4 |
Expected return on plan assets | (84.8) | (128.2) | (136.4) |
Amortization of prior service cost (credit) | 0.3 | 0.4 | 0.6 |
Amortization of net actuarial loss | 0 | 0 | 0 |
Pension remeasurement gain (loss) | (26.8) | 100.3 | 147.2 |
Settlement loss (gain) | 41.7 | 0.7 | 0 |
Total retirement benefit expense (income) | 69.7 | (145.8) | (199.5) |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost - benefits earned during the year | 0.6 | 1.1 | 1.5 |
Interest cost on benefits earned in prior years | 10.9 | 7.7 | 8 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (0.9) | (0.9) | (2.4) |
Amortization of net actuarial loss | 6 | 13.2 | 13.9 |
Pension remeasurement gain (loss) | 0 | 0 | 0 |
Settlement loss (gain) | 0 | 0 | (64.9) |
Total retirement benefit expense (income) | $ 16.6 | $ 21.1 | $ (43.9) |
Retirement Benefits (Details 2)
Retirement Benefits (Details 2) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.95% | 2.60% | |
Rate of increase in future compensation levels | 3% | 1% | |
Expected long-term rate of return on assets | 6.43% | 6.71% | |
Pension Benefits [Member] | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.55% | ||
Rate of increase in future compensation levels | 2% | ||
Expected long-term rate of return on assets | 5.80% | ||
Pension Benefits [Member] | Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 6.40% | ||
Rate of increase in future compensation levels | 3% | ||
Expected long-term rate of return on assets | 6.57% | ||
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.45% | 2.80% | 2.45% |
Rate of increase in future compensation levels | 0% | 0% | 0% |
Expected long-term rate of return on assets | 0% | 0% | 0% |
Retirement Benefits (Details 3)
Retirement Benefits (Details 3) | Dec. 31, 2023 | Jan. 01, 2023 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.60% | 5.55% |
Rate of increase in future compensation levels | 3% | 3% |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.40% | 5.45% |
Rate of increase in future compensation levels | 0% | 0% |
Retirement Benefits (Details 4)
Retirement Benefits (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Pension Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 1,818.3 | $ 2,517 | |
Service cost | 6 | 11.9 | $ 15.1 |
Interest cost | 79.7 | 69.7 | 68.4 |
Benefits paid | (153.9) | (155.6) | |
Subsidy paid | 0 | 0 | |
Divestiture | 0 | (75.8) | |
Effect of currency rates | 0 | (3.2) | |
Net actuarial (gains) losses - discount rate change | (95.8) | (556.8) | |
Net actuarial (gains) losses - other | (5.3) | 11.1 | |
Plan settlement | (1,350.6) | 0 | |
Benefit obligation at end of year | 298.4 | 1,818.3 | 2,517 |
Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 212.7 | 287.3 | |
Service cost | 0.6 | 1.1 | 1.5 |
Interest cost | 10.9 | 7.7 | 8 |
Benefits paid | (26.4) | (29.7) | |
Subsidy paid | 0 | 0.3 | |
Divestiture | 0 | 0 | |
Effect of currency rates | 0 | 0 | |
Net actuarial (gains) losses - discount rate change | 0.7 | (48.2) | |
Net actuarial (gains) losses - other | 3.1 | (5.8) | |
Plan settlement | 0 | 0 | (43) |
Benefit obligation at end of year | $ 201.6 | $ 212.7 | $ 287.3 |
Retirement Benefits (Details 5)
Retirement Benefits (Details 5) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Oct. 01, 2023 | Dec. 31, 2023 | Jan. 01, 2023 | |
Pension Benefits [Member] | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | $ 1,599.5 | $ 2,120.9 | |
Actual returns on plan assets and plan expenses | (83.9) | (317) | |
Employer contributions | $ 222 | 278 | 57.4 |
Divestiture | 0 | (101.8) | |
Effect of currency rates | 0 | (4.4) | |
Plan settlement | (1,350.6) | 0 | |
Benefits paid | (153.9) | (155.6) | |
Fair value of plan assets at end of year | 289.1 | 1,599.5 | |
Other Postretirement Benefits | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual returns on plan assets and plan expenses | 0 | 0 | |
Employer contributions | 0 | 0 | |
Divestiture | 0 | 0 | |
Effect of currency rates | 0 | 0 | |
Plan settlement | 0 | 0 | |
Benefits paid | 0 | 0 | |
Fair value of plan assets at end of year | $ 0 | $ 0 |
Retirement Benefits (Details 6)
Retirement Benefits (Details 6) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current assets | $ 2.4 | $ 0 |
Noncurrent assets | 33.6 | 12.5 |
Current liabilities | (5.6) | (5.7) |
Noncurrent liabilities | (39.7) | (225.6) |
Total amount recognized | (9.3) | (218.8) |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current assets | 0 | 0 |
Noncurrent assets | 0 | 0 |
Current liabilities | (26.4) | (27.8) |
Noncurrent liabilities | (175.2) | (184.9) |
Total amount recognized | $ (201.6) | $ (212.7) |
Retirement Benefits (Details 7)
Retirement Benefits (Details 7) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |||
Amortization of net actuarial loss | $ 6 | $ 13.2 | $ 13.9 |
Amortization to net income (loss) of net prior service credits | (0.6) | (0.5) | (1.8) |
Settlement loss (gain) included in net income (loss) | 1.1 | 0.7 | (21.9) |
Net gain (loss) arising during the period | (3.8) | 54.7 | 8.7 |
Pension Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |||
Beginning of year accumulated other comprehensive loss | (8.8) | (9.9) | |
Amortization of net actuarial loss | 0 | 0 | |
Amortization to net income (loss) of net prior service credits | 0.3 | 0.4 | |
Settlement loss (gain) included in net income (loss) | 1.1 | 0.7 | |
Net gain (loss) arising during the period | 0 | 0 | |
End of year accumulated other comprehensive loss | (7.4) | (8.8) | (9.9) |
Net change in accumulated other comprehensive loss | 1.4 | 1.1 | |
Other Postretirement Benefits | |||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |||
Beginning of year accumulated other comprehensive loss | (55.8) | (121.2) | |
Amortization of net actuarial loss | 6 | 13.2 | |
Amortization to net income (loss) of net prior service credits | (0.9) | (0.9) | |
Settlement loss (gain) included in net income (loss) | 0 | 0 | |
Net gain (loss) arising during the period | (3.8) | 53.1 | |
End of year accumulated other comprehensive loss | (54.5) | (55.8) | $ (121.2) |
Net change in accumulated other comprehensive loss | $ 1.3 | $ 65.4 |
Retirement Benefits (Details 8)
Retirement Benefits (Details 8) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service (cost) credit | $ (7.4) | $ (8.8) | |
Net actuarial loss | 0 | 0 | |
Accumulated other comprehensive loss | (7.4) | (8.8) | $ (9.9) |
Deferred tax effect | 1.9 | 2.1 | |
Accumulated other comprehensive loss, net of tax | (5.5) | (6.7) | |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service (cost) credit | 1.7 | 2.5 | |
Net actuarial loss | (56.2) | (58.3) | |
Accumulated other comprehensive loss | (54.5) | (55.8) | $ (121.2) |
Deferred tax effect | 27.5 | 27.8 | |
Accumulated other comprehensive loss, net of tax | $ (27) | $ (28) |
Retirement Benefits (Details 9)
Retirement Benefits (Details 9) $ in Millions | Dec. 31, 2023 USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service cost (credit) | $ (0.5) |
Amortization of net actuarial loss | 5.3 |
Amortization of accumulated other comprehensive loss | 4.8 |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service cost (credit) | 0.4 |
Amortization of net actuarial loss | 0 |
Amortization of accumulated other comprehensive loss | 0.4 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service cost (credit) | (0.9) |
Amortization of net actuarial loss | 5.3 |
Amortization of accumulated other comprehensive loss | $ 4.4 |
Retirement Benefits (Details 10
Retirement Benefits (Details 10) - Pension Benefits [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 45.3 | $ 1,727.3 |
Accumulated benefit obligation | 45.3 | 1,716.8 |
Fair value of plan assets | $ 0 | $ 1,496 |
Retirement Benefits (Details 14
Retirement Benefits (Details 14) $ in Millions | Dec. 31, 2023 USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Expected Future Benefit Payments [Abstract] | |
2024 | $ 12.1 |
2025 | 13.3 |
2026 | 14.6 |
2027 | 16 |
2028 | 17 |
2029-2033 | 96.7 |
Other Postretirement Benefits | |
Defined Benefit Plan Expected Future Benefit Payments [Abstract] | |
2024 | 26.5 |
2025 | 24.2 |
2026 | 22.3 |
2027 | 20.6 |
2028 | 18.9 |
2029-2033 | 71.6 |
Medicare Part D Subsidy [Abstract] | |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
2028 | 0 |
2029-2033 | $ 0 |
Retirement Benefits (Details 11
Retirement Benefits (Details 11) - Pension Benefits [Member] - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 289.1 | $ 1,599.5 | $ 2,120.9 |
NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 166.9 | 1,299.5 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 122.2 | 189.2 | |
Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 110.8 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities: Other U.S. equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.1 | 363.1 | |
Equity Securities: Other U.S. equities [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 202.6 | |
Equity Securities: Other U.S. equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.1 | 160.5 | |
Equity Securities: Other U.S. equities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities: Other U.S. equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities: International equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.1 | 299.7 | |
Equity Securities: International equities [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 284.8 | |
Equity Securities: International equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.1 | 14.9 | |
Equity Securities: International equities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities: International equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income and cash equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 130.3 | 455.4 | |
Fixed income and cash equivalents [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.3 | 330.8 | |
Fixed income and cash equivalents [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 122 | 13.8 | |
Fixed income and cash equivalents [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 110.8 | |
Fixed income and cash equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Private equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 60.8 | 224.3 | |
Private equity [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 60.8 | 224.3 | |
Private equity [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Private equity [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Private equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Alternative investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 97.8 | 257 | |
Alternative investments | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 97.8 | 257 | |
Alternative investments | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Alternative investments | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Alternative investments | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Retirement Benefits (Details 13
Retirement Benefits (Details 13) - Pension Benefits [Member] - Forecast | 12 Months Ended |
Dec. 29, 2024 | |
Minimum | Equity Securities: Other U.S. equities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 0 |
Minimum | Private equity [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 0 |
Minimum | Fixed income and cash equivalents [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 50 |
Maximum | Equity Securities: Other U.S. equities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 20 |
Maximum | Private equity [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 40 |
Maximum | Fixed income and cash equivalents [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 100 |
Retirement Benefits (Details 17
Retirement Benefits (Details 17) - Pension Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Multiemployer Plan Disclosure [Line Items] | |||
Company Contributions | $ 5.2 | $ 4.3 | $ 4 |
Steelworkers Western Independent Shops Pension Plan [Member] | |||
Multiemployer Plan Disclosure [Line Items] | |||
Pension Protection Act Zone Status | Green | Green | |
Company Contributions | $ 0.7 | $ 0.1 | 0.1 |
Surcharge Imposed | No | ||
Boilermakers-Blacksmiths National Pension Trust [Member] | |||
Multiemployer Plan Disclosure [Line Items] | |||
Pension Protection Act Zone Status | Red | Green | |
Company Contributions | $ 2.6 | $ 2.3 | 2 |
Surcharge Imposed | No | ||
IAM National Pension Fund [Member] | |||
Multiemployer Plan Disclosure [Line Items] | |||
Pension Protection Act Zone Status | Red | Red | |
Company Contributions | $ 1.9 | $ 1.9 | $ 1.9 |
Surcharge Imposed | Yes |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ (67.4) | $ (141.3) | $ (1,223.6) |
OCI before reclassifications | (23) | 57.1 | 8.9 |
Amounts reclassified from AOCI | 7.2 | 16.8 | 0.2 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (15.8) | 73.9 | 1,082.3 |
Ending balance | (83.2) | (67.4) | (141.3) |
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | 7.7 | 26 | 21.2 |
OCI before reclassifications | (0.4) | (18.3) | 4.8 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net current-period OCI | (0.4) | (18.3) | 4.8 |
Ending balance | 7.3 | 7.7 | 26 |
Tax expense for the recognition of a stranded deferred tax balance arising from deferred tax valuation allowances that was associated with certain postretirement medical benefits due to plan termination | 6.4 | ||
State and local income taxes, net of federal tax benefit | 1.2 | 2.9 | 0.4 |
Cumulative effect of adoption of new accounting standard | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 1,073.2 | ||
Post- retirement benefit plans [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (34.7) | (86.6) | (1,119.9) |
OCI before reclassifications | (2.9) | 41.3 | 6.6 |
Amounts reclassified from AOCI | 5.1 | 10.6 | (3.6) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 2.2 | 51.9 | 1,033.3 |
Ending balance | (32.5) | (34.7) | (86.6) |
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
OCI before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net current-period OCI | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Post- retirement benefit plans [Member] | Cumulative effect of adoption of new accounting standard | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 1,030.3 | ||
Currency translation adjustment [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (70.1) | (64.9) | (55.5) |
OCI before reclassifications | 1.7 | (25.2) | (9.4) |
Amounts reclassified from AOCI | 0 | 20 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 1.7 | (5.2) | (9.4) |
Ending balance | (68.4) | (70.1) | (64.9) |
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | 7.7 | 26 | 21.2 |
OCI before reclassifications | (0.4) | (18.3) | 4.8 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net current-period OCI | (0.4) | (18.3) | 4.8 |
Ending balance | 7.3 | 7.7 | 26 |
Currency translation adjustment [Member] | Cumulative effect of adoption of new accounting standard | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 0 | ||
Derivatives [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 13.5 | 5.1 | 2.1 |
OCI before reclassifications | (21.8) | 41 | 11.7 |
Amounts reclassified from AOCI | 1.9 | (32.6) | (8.7) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (19.9) | 8.4 | 3 |
Ending balance | (6.4) | 13.5 | 5.1 |
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
OCI before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net current-period OCI | 0 | 0 | 0 |
Ending balance | 0 | 0 | 0 |
Derivatives [Member] | Cumulative effect of adoption of new accounting standard | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 0 | ||
Accumulated Deferred Tax Asset Valuation Allowance | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | 23.9 | 5.1 | (50.3) |
OCI before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCI | 0.2 | 18.8 | 12.5 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.2 | 18.8 | 55.4 |
Ending balance | 24.1 | 23.9 | 5.1 |
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | 0 | 0 | 0 |
OCI before reclassifications | 0 | 0 | 0 |
Amounts reclassified from AOCI | 0 | 0 | 0 |
Net current-period OCI | 0 | 0 | 0 |
Ending balance | $ 0 | $ 0 | 0 |
Accumulated Deferred Tax Asset Valuation Allowance | Cumulative effect of adoption of new accounting standard | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 42.9 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Details2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Oct. 01, 2023 | Jul. 02, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization to net income (loss) of net prior service credits | $ (0.6) | $ (0.5) | $ (1.8) | ||||||||
Amortization of net actuarial loss | 6 | 13.2 | 13.9 | ||||||||
Settlement gain (loss) | (1.1) | (0.7) | 21.9 | ||||||||
Cost of sales | (3,371.1) | (3,121.8) | (2,466.6) | ||||||||
Income (loss) before income taxes | 295.2 | 354.6 | 233.4 | ||||||||
Income tax provision (benefit) | (128.2) | 15.5 | 26.8 | ||||||||
Reclassification adjustment included in net income | 0 | 20 | 0 | ||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ (1,064) | $ (1,025.6) | $ (1,046) | $ (1,038.1) | $ (1,010.4) | $ (1,032) | $ (959.5) | $ (834.1) | (4,173.7) | (3,836) | (2,799.8) |
Other Postretirement Benefits | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amortization to net income (loss) of net prior service credits | (0.9) | (0.9) | |||||||||
Amortization of net actuarial loss | 6 | 13.2 | |||||||||
Settlement gain (loss) | 0 | 0 | |||||||||
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 | 0.6 | 0.5 | 1.8 | ||||||||
Amortization of net actuarial loss | (6) | (13.2) | (13.9) | ||||||||
Settlement gain (loss) | (1.1) | (0.7) | 21.9 | ||||||||
Income (loss) before income taxes | (6.5) | (13.4) | 9.8 | ||||||||
Income tax provision (benefit) | (1.4) | (2.8) | 6.2 | ||||||||
Income (loss) | (5.1) | (10.6) | 3.6 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Currency translation adjustment [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification adjustment included in net income | 0 | (20) | 0 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income (loss) before income taxes | (2.5) | 42.8 | 11.4 | ||||||||
Income tax provision (benefit) | (0.6) | 10.2 | 2.7 | ||||||||
Income (loss) | (1.9) | 32.6 | 8.7 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Nickel and other raw material contracts [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | 3.3 | 26.9 | 7.1 | ||||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 3.3 | 26.9 | 7.1 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Natural gas contracts [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | (7.5) | 15.1 | 5.3 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Foreign Exchange Contract [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of sales | 0.3 | 0.9 | 0.1 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Interest Rate Swap [Member] | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Interest Expense | $ 1.4 | $ (0.1) | $ (1.1) |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Millions | 12 Months Ended | |||
Dec. 29, 2024 USD ($) $ / shares shares | Dec. 31, 2023 USD ($) $ / shares shares | Jan. 01, 2023 USD ($) $ / shares shares | Jan. 02, 2022 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Preferred stock, issued | 0 | 0 | ||
Common stock shares available for future awards | 5,400,000 | |||
Restricted stock and RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 512,000 | 831,000 | 1,033,000 | |
Share based compensation expense | $ | $ 14,500,000 | $ 13,400,000 | $ 14,300,000 | |
Unrecognized compensation expense | $ | $ 8,700,000 | |||
Shares vested | 729,000 | 634,000 | 505,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested beginning of the year (shares) | 1,220,000 | 1,479,000 | 1,409,000 | 929,000 |
Granted (shares) | 512,000 | 831,000 | 1,033,000 | |
Vested (shares) | (729,000) | (634,000) | (505,000) | |
Forfeited (shares) | (42,000) | (127,000) | (48,000) | |
Nonvested end of the year (shares) | 1,220,000 | 1,479,000 | 1,409,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Beginning balance (in dollars per share) | $ / shares | $ 28 | $ 26 | $ 25.6 | $ 17.9 |
Granted (in dollars per share) | $ / shares | 16 | 14.8 | 17.5 | |
Vested (in dollars per share) | $ / shares | (13.1) | (12.3) | (8.9) | |
Forfeited (in dollars per share) | $ / shares | (0.9) | (2.1) | (0.9) | |
Ending balance (in dollars per share) | $ / shares | $ 28 | $ 26 | $ 25.6 | |
Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ | $ 23,800,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Forfeited (shares) | (19,863) | (159,298) | (71,801) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Forfeited (in dollars per share) | $ / shares | $ (0.5) | $ (3.4) | $ (1.7) | |
2022-2025 | Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 857,000 | |||
Unrecognized compensation expense | $ | $ 11,000,000 | |||
Shares vested | 4,807 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted (shares) | 857,000 | |||
Vested (shares) | (4,807) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Granted (in dollars per share) | $ / shares | $ 20.3 | |||
2022-2025 | Additional Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (shares) | 46,046 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted (shares) | 46,046 | |||
TSR Modifier [Member] | Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance measurement period | 3 years | |||
2019 PSU [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Adjustment percentage | (20.00%) | |||
2019 PSU [Member] | Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vested | 103,621 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Vested (shares) | (103,621) | |||
2019 and 2020 PSU | Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance measurement period | 3 years | |||
PSU [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Adjustment percentage | 20% | |||
PSU [Member] | Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ | $ 14,600,000 | $ 12,600,000 | $ 6,800,000 | |
Common stock shares available for future awards | 4,800,000 | |||
2020 PSU [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Adjustment percentage | 0% | |||
2020 PSU [Member] | Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vested | 182,628 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Vested (shares) | (182,628) | |||
Breakout Performance Award | Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance measurement period | 4 years | |||
2021 PSU | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Adjustment percentage | 198.50% | |||
2021 PSU | Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares vested | 848,194 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Vested (shares) | (848,194) | |||
Minimum | 2019 and 2020 PSU | Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Attainment level range (percent) | 25% | |||
Minimum | Breakout Performance Award | Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance measurement period | 4 years | |||
Maximum | 2019 and 2020 PSU | Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Attainment level range (percent) | 200% | |||
Maximum | Breakout Performance Award | Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance measurement period | 5 years | |||
Forecast | Restricted stock and RSUs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ | $ 6,600,000 | |||
Revolving Credit Facility [Member] | Domestic Bank Group $600 million asset-based credit facility | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Debt covenant, line of credit facility remaining borrowing capacity after dividends, upper threshold | $ | $ 120,000,000 | |||
Debt covenant, line of credit facility remaining borrowing capacity after dividends as percent of maximum borrowing capacity, upper threshold | 20% | |||
Debt covenant, line of credit facility remaining borrowing capacity after dividends, lower threshold | $ | $ 75,000,000 | |||
Debt covenant, line of credit facility remaining borrowing capacity after dividends as percent of maximum borrowing capacity, lower threshold | 12.50% | |||
Fixed charge coverage ratio | 1 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Fair Value of PSU Awards (Details) - Performance Shares - USD ($) shares in Thousands, $ / shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ 23.8 | ||
Unrecognized compensation expense to be recognized in the next 12 months | 12.5 | ||
2021-2023 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 9.3 | ||
Unrecognized compensation expense | 0 | ||
Unrecognized compensation expense to be recognized in the next 12 months | 0 | ||
Granted (shares) | 459 | ||
2022-2024 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 11 | ||
Unrecognized compensation expense | 3.9 | ||
Unrecognized compensation expense to be recognized in the next 12 months | $ 3.9 | ||
Granted (shares) | 494 | ||
2022-2025 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 20.3 | ||
Unrecognized compensation expense | $ 11 | ||
Unrecognized compensation expense to be recognized in the next 12 months | $ 4.4 | ||
Granted (shares) | 857 | ||
2023-2025 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 12.6 | ||
Unrecognized compensation expense | $ 8.9 | ||
Unrecognized compensation expense to be recognized in the next 12 months | $ 4.2 | ||
Granted (shares) | 330 |
Income Taxes Income by Region (
Income Taxes Income by Region (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 258.2 | $ 394.3 | $ 168.7 |
Non-U.S. | 37 | (39.7) | 64.7 |
Income before income taxes | $ 295.2 | $ 354.6 | $ 233.4 |
Schedule of Income Tax Provisio
Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Components Of Income Tax Expense Benefit Continuing Operations Abstract | |||
Current: Federal | $ 3 | $ 5 | $ 0.7 |
Current: State | 0.5 | 3.7 | (0.3) |
Current: Foreign | 7.8 | 10 | 9.4 |
Total Current | 11.3 | 18.7 | 9.8 |
Deferred: Federal | (96.1) | (3.3) | 18.6 |
Deferred: State | (42.5) | 0.2 | (0.9) |
Deferred: Foreign | (0.9) | (0.1) | (0.7) |
Total Deferred | (139.5) | (3.2) | 17 |
Income tax provision (benefit) | $ (128.2) | $ 15.5 | $ 26.8 |
Reconciliation of Federal Tax R
Reconciliation of Federal Tax Rate to Effective Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Taxes computed at the federal rate | $ 62 | $ 74.5 | $ 49 |
Goodwill | 0 | 0 | 2.6 |
State and local income taxes, net of federal tax benefit | 1.2 | 2.9 | 0.4 |
Valuation allowance | (198.8) | (84.4) | (29.2) |
Repatriation of foreign earnings (GILTI ) | 5 | 0 | 2 |
Divestiture | 0 | 23 | 0 |
Recognition of stranded deferred tax balance | 0 | 0 | 3.9 |
Foreign earnings taxed at different rate | 2.7 | 3.2 | 3 |
Withholding taxes | 4.8 | 2.6 | 3.4 |
Preferential tax rate | (3.6) | (4.9) | (6.2) |
Other | (1.5) | (1.4) | (2.1) |
Income tax provision (benefit) | $ (128.2) | $ 15.5 | $ 26.8 |
Narrative (Details)
Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2023 | Jul. 03, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Aug. 13, 2021 | Jan. 03, 2021 | |
NOL and Tax Credit Carryforwards [Line Items] | ||||||||
Valuation allowance | $ (198.8) | $ (84.4) | $ (29.2) | |||||
Valuation allowance benefit | $ (140.3) | |||||||
Discrete tax effects related to valuation allowance | 11.6 | |||||||
Additional valuation allowance required | 5.2 | |||||||
Accumulated other comprehensive loss, net of tax | 83.2 | 83.2 | 67.4 | 141.3 | $ 1,223.6 | |||
Goodwill | 0 | 0 | 2.6 | |||||
Deferred taxes for foreign withholding taxes | 7.7 | 7.7 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (7.2) | (16.8) | (0.2) | |||||
Goodwill | (227.2) | (227.2) | (227.2) | |||||
Income tax provision (benefit) | (128.2) | 15.5 | 26.8 | |||||
Recognition of stranded deferred tax balance | 0 | 0 | 3.9 | |||||
Settlement gain (loss) | (1.1) | (0.7) | 21.9 | |||||
Tax expense for the recognition of a stranded deferred tax balance arising from deferred tax valuation allowances that was associated with certain postretirement medical benefits due to plan termination | 6.4 | |||||||
Loss on asset sales and sales of businesses, net | 0 | 0 | (13.8) | |||||
State and local income taxes, net of federal tax benefit | 1.2 | 2.9 | 0.4 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (15.8) | 73.9 | 1,082.3 | |||||
Valuation Allowance Benefit | ||||||||
NOL and Tax Credit Carryforwards [Line Items] | ||||||||
State and local income taxes, net of federal tax benefit | (7.8) | |||||||
Collective-Bargaining Arrangement, Other | ||||||||
NOL and Tax Credit Carryforwards [Line Items] | ||||||||
Income tax provision (benefit) | 15.5 | |||||||
Flowform Products | ||||||||
NOL and Tax Credit Carryforwards [Line Items] | ||||||||
Goodwill | $ (12.2) | |||||||
Loss on asset sales and sales of businesses, net | (13.8) | |||||||
Sheffield, UK Operations | ||||||||
NOL and Tax Credit Carryforwards [Line Items] | ||||||||
Loss on asset sales and sales of businesses, net | $ 87.1 | $ 25.1 | 112.2 | |||||
Accumulated Deferred Tax Asset Valuation Allowance | ||||||||
NOL and Tax Credit Carryforwards [Line Items] | ||||||||
Accumulated other comprehensive loss, net of tax | (24.1) | (24.1) | (23.9) | (5.1) | 50.3 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (0.2) | (18.8) | (12.5) | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 0.2 | 18.8 | 55.4 | |||||
Post- retirement benefit plans [Member] | ||||||||
NOL and Tax Credit Carryforwards [Line Items] | ||||||||
Accumulated other comprehensive loss, net of tax | $ 32.5 | 32.5 | 34.7 | 86.6 | $ 1,119.9 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (5.1) | (10.6) | 3.6 | |||||
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 2.2 | 51.9 | 1,033.3 | |||||
Post- retirement benefit plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||
NOL and Tax Credit Carryforwards [Line Items] | ||||||||
Income tax provision (benefit) | (1.4) | (2.8) | 6.2 | |||||
Settlement gain (loss) | $ (1.1) | $ (0.7) | $ 21.9 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Jan. 01, 2023 |
Deferred income tax assets | ||
Net operating loss tax carryovers | $ 133 | $ 184.1 |
Pensions | 2.2 | 51.7 |
Postretirement benefits other than pensions | 48.5 | 51.5 |
Tax credits | 43.5 | 42 |
Research and development | 20.7 | 7.4 |
Inventory valuation | 1.1 | 0 |
Other items | 107.5 | 95.6 |
Gross deferred income tax assets | 356.5 | 432.3 |
Valuation allowance for deferred tax assets | (60.3) | (266.9) |
Total deferred income tax assets | 296.2 | 165.4 |
Deferred income tax liabilities | ||
Bases of property, plant and equipment | 124.8 | 122.2 |
Inventory valuation | 0 | 17.1 |
Basis of amortizable intangible assets | 14.9 | 16.4 |
Other items | 25.5 | 23 |
Total deferred tax liabilities | 165.2 | 178.7 |
Net deferred tax asset | $ 131 | |
Net deferred tax (liability) | $ (13.3) |
Schedule of Income Taxes Paid a
Schedule of Income Taxes Paid and Refunded (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Income Taxes Paid, Net [Abstract] | |||
Income Taxes Paid | $ 16.7 | $ 18.9 | $ 14.2 |
Income tax refunds received | (0.9) | (0.4) | (0.6) |
Income Taxes Paid (Received), Net, Total | $ 15.8 | $ 18.5 | $ 13.6 |
Income Taxes NOL and Tax Credit
Income Taxes NOL and Tax Credit Carryforwards (Details) $ in Millions | Dec. 31, 2023 USD ($) |
State [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | $ 80 |
Tax credit carryforwards | 9 |
UNITED KINGDOM | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 4 |
United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 213 |
Within 5 years [Member] | State [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 15 |
Tax credit carryforwards | 4 |
Within 5 years [Member] | UNITED KINGDOM | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Within 5 years [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Indefinite Expiration Period, Within 5 Years | State [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Indefinite Expiration Period, Within 5 Years | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Within 5-20 years [Member] | State [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 65 |
Tax credit carryforwards | 5 |
Within 5-20 years [Member] | UNITED KINGDOM | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Within 5-20 years [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 213 |
Indefinite Expiration Period | State [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 1 |
Indefinite Expiration Period | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 129 |
Indefinite Expiration Period, 5-20 Years | State [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Indefinite Expiration Period, 5-20 Years | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Foreign Tax Credits [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 22 |
Foreign Tax Credits [Member] | Within 5 years [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 22 |
Foreign Tax Credits [Member] | Within 5-20 years [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 0 |
Research Tax Credit Carryforward [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 11 |
Research Tax Credit Carryforward [Member] | Within 5 years [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 0 |
Research Tax Credit Carryforward [Member] | Within 5-20 years [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 11 |
Economic Zone Credit [Member] | Poland [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 4 |
Economic Zone Credit [Member] | Within 5 years [Member] | Poland [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 4 |
Economic Zone Credit [Member] | Within 5-20 years [Member] | Poland [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | $ 0 |
Schedule of Changes in Unrecogn
Schedule of Changes in Unrecognized Income Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Jan. 03, 2021 | |
Income Tax Uncertainties [Abstract] | ||||
Unrecognized tax benefits classified within deferred taxes as a reduction of net operating loss carryforwards | $ 7.2 | $ 7.8 | $ 12.3 | |
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | ||||
Decreases in prior period tax positions | 0 | (3.3) | 0 | |
Increases in current period tax positions | 0 | 0 | 0.3 | |
Unrecognized tax benefits | 8.9 | 9.1 | 14.2 | $ 15.2 |
Expiration of the statute of limitations | (1.4) | (1.8) | (1.3) | |
Ending balance | 8.9 | 9.1 | 14.2 | |
Increases in prior period tax positions | 1.2 | 0 | $ 0 | |
Income tax penalties and interest accrued | 1.3 | $ 1.4 | ||
Unrecognized tax benefits that would impact effective tax rate | 1.7 | |||
Unrecognized tax benefits that will be recognized within 12 months of year end | $ 0.5 |
Per Share Information (Details)
Per Share Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | Nov. 30, 2023 | Apr. 28, 2023 | Feb. 02, 2022 | |
Earnings Per Share Reconciliation [Abstract] | ||||||
Net income (loss) | $ 410.8 | $ 323.5 | $ 184.6 | |||
Numerator for diluted net income (loss) per common share - Income (loss) attributable to ATI after assumed conversions | $ 421.4 | $ 337 | $ 200.8 | |||
Denominator for basic net income (loss) per common share - weighted average shares (shares) | 128.1 | 127.5 | 127.1 | |||
Effect of dilutive securities: Share-based compensation | 3.1 | 2.1 | 1 | |||
Denominator for diluted net income per common share—adjusted weighted average shares and assumed conversions | 150 | 151.2 | 152.7 | |||
Basic income (loss) attributable to ATI per common share (in dollars per share) | $ 3.21 | $ 2.54 | $ 1.45 | |||
Diluted income (loss) attributable to ATI per common share (in dollars per share) | $ 2.81 | $ 2.23 | $ 1.32 | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 0 | 0 | 0 | |||
Authorized amount | $ 150 | $ 75 | $ 150 | |||
Purchase of treasury stock | $ (85.2) | $ (139.9) | $ 0 | |||
Treasury stock, shares, acquired | 2 | 5.2 | ||||
Purchase of treasury stock | $ (85.8) | $ (139.9) | ||||
ATI Convertible Senior Notes, 4.75%, Due 2022 [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |||||
Earnings Per Share Reconciliation [Abstract] | ||||||
Effect of dilutive securities: Convertible Senior Notes | $ 0 | $ 2.2 | $ 4.4 | |||
Effect of dilutive securities: Convertible Senior Notes | 0 | 2.8 | 5.8 | |||
ATI Convertible Senior Notes, 3.5%, Due 2025 [Member] | ||||||
Earnings Per Share Reconciliation [Abstract] | ||||||
Effect of dilutive securities: Convertible Senior Notes | $ 10.6 | $ 11.3 | $ 11.8 | |||
Effect of dilutive securities: Convertible Senior Notes | 18.8 | 18.8 | 18.8 | |||
Treasury Stock | ||||||
Earnings Per Share Reconciliation [Abstract] | ||||||
Purchase of treasury stock | $ (85.8) | $ (139.9) | ||||
Convertible Debt [Member] | ATI Convertible Senior Notes, 3.5%, Due 2025 [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | 3.50% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Oct. 02, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||||
Purchase obligation, property, plant, and equipment | $ 86.1 | ||||
Accrual for Environmental Loss Contingencies [Abstract] | |||||
Accrual for environmental remediation obligations | 13 | ||||
Accrued environmental loss contingencies recorded in other current liabilities | 7 | ||||
Components of Environmental Loss Accrual [Abstract] | |||||
Federal Superfund and comparable state-managed sites | 3 | ||||
Formerly owned or operated sites | 7 | ||||
Owned or controlled sites at which Company operations have been or plan to be discontinued | 2 | ||||
Owned or controlled sites with ongoing operations | 1 | ||||
Reasonably possible amount by which current matters may exceed reserves | 17 | ||||
Other nonoperating income (expense), litigation reserve | $ (19.9) | $ (8.6) | $ 0 | $ (28.5) | $ 0 |
Environmental Loss Contingency, Statement Of Financial Position, Extensible Enumeration, Not Disclosed Flag | other | ||||
Environmental Loss Contingency, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) - 2023 and 2022 (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Oct. 01, 2023 | Jul. 02, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 1,064 | $ 1,025.6 | $ 1,046 | $ 1,038.1 | $ 1,010.4 | $ 1,032 | $ 959.5 | $ 834.1 | $ 4,173.7 | $ 3,836 | $ 2,799.8 |
Operating income | 108.3 | 125.2 | 120.3 | 112.6 | 108.7 | 113.2 | 17.2 | 77 | 466.4 | 316.1 | 117.6 |
Net income | 149.2 | 94.1 | 93.5 | 86.6 | 197.3 | 80.2 | 10.4 | 51.2 | 423.4 | 339.1 | 206.6 |
Net income attributable to ATI | $ 145.7 | $ 90.2 | $ 90.4 | $ 84.5 | $ 193 | $ 76.9 | $ 6.7 | $ 46.9 | $ 410.8 | $ 323.5 | $ 184.6 |
Basic net income (loss) attributable to ATI per common share (in dollars per share) | $ 1.15 | $ 0.70 | $ 0.70 | $ 0.66 | $ 1.49 | $ 0.59 | $ 0.05 | $ 0.37 | $ 3.21 | $ 2.54 | $ 1.45 |
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ 0.99 | $ 0.62 | $ 0.62 | $ 0.58 | $ 1.30 | $ 0.53 | $ 0.05 | $ 0.33 | $ 2.81 | $ 2.23 | $ 1.32 |
Quarterly Financial Data (Una_4
Quarterly Financial Data (Unaudited) - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Oct. 01, 2023 | Jul. 02, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges (credits) | $ 88.3 | $ 4.2 | $ 10.6 | $ 1.2 | $ 17.3 | $ 85.8 | $ 25.8 | ||||
Restructuring and other charges, net of tax | 84.7 | 4 | 10.2 | $ 1.1 | 16.3 | 85.9 | 25.8 | ||||
Gain (loss) on asset sales and sale of business, net | $ (0.6) | $ (105.4) | $ 13.8 | ||||||||
Restructuring charges | (0.5) | (2.6) | (1.3) | (1.1) | |||||||
Valuation allowance benefit | (140.3) | ||||||||||
Other nonoperating income (expense), litigation reserve | $ (19.9) | (8.6) | 0 | (28.5) | 0 | ||||||
Net gain (loss) on sale of businesses | 0 | 0 | 13.8 | ||||||||
Pension remeasurement gain (loss) | (26.8) | 100.3 | 147.2 | ||||||||
Northbrook, IL Operations | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Gain (loss) on asset sales and sale of business, net | (0.6) | ||||||||||
Sheffield, UK Operations | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Net gain (loss) on sale of businesses | $ (87.1) | (25.1) | (112.2) | ||||||||
Pico Rivera, CA Operations | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Gain (Loss) on disposition of other assets | $ 6.8 | 6.8 | |||||||||
Start Up Costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges (credits) | 3 | 4.5 | |||||||||
Restructuring charges | 2.8 | 11.5 | |||||||||
Employee Severance | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges (credits) | 2.7 | ||||||||||
Restructuring charges | 7.7 | $ (4.8) | $ (12) | ||||||||
Severance-related Restructuring Charges | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges (credits) | 5.5 | ||||||||||
Facility Closing | Robinson, PA | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges (credits) | $ 2.8 | ||||||||||
Facility Closing | Europe | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges (credits) | 11.3 | ||||||||||
Unplanned Outage Costs | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring charges | $ 1.9 | $ 1.9 | |||||||||
Pension Plan Remeasurement Loss | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges (credits) | 26.8 | $ (100.3) | |||||||||
Pension Plan Settlement Loss | |||||||||||
Restructuring Cost and Reserve [Line Items] | |||||||||||
Restructuring and other charges (credits) | $ 41.7 |
Quarterly Financial Data (Una_5
Quarterly Financial Data (Unaudited) - Quarterly Impact (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Oct. 01, 2023 | Jul. 02, 2023 | Apr. 02, 2023 | Jan. 01, 2023 | Oct. 02, 2022 | Jul. 03, 2022 | Apr. 03, 2022 | Dec. 31, 2023 | Jan. 01, 2023 | Jan. 02, 2022 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Operating income | $ 108.3 | $ 125.2 | $ 120.3 | $ 112.6 | $ 108.7 | $ 113.2 | $ 17.2 | $ 77 | $ 466.4 | $ 316.1 | $ 117.6 |
Net income | 149.2 | 94.1 | 93.5 | 86.6 | 197.3 | 80.2 | 10.4 | 51.2 | 423.4 | 339.1 | 206.6 |
Net income attributable to ATI | $ 145.7 | $ 90.2 | $ 90.4 | $ 84.5 | $ 193 | $ 76.9 | $ 6.7 | $ 46.9 | $ 410.8 | $ 323.5 | $ 184.6 |
Basic net income (loss) attributable to ATI per common share (in dollars per share) | $ 1.15 | $ 0.70 | $ 0.70 | $ 0.66 | $ 1.49 | $ 0.59 | $ 0.05 | $ 0.37 | $ 3.21 | $ 2.54 | $ 1.45 |
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ 0.99 | $ 0.62 | $ 0.62 | $ 0.58 | $ 1.30 | $ 0.53 | $ 0.05 | $ 0.33 | $ 2.81 | $ 2.23 | $ 1.32 |
As Computed Under Previous Policy | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Operating income | $ (11.6) | ||||||||||
Net income | $ (550.1) | $ 79.6 | $ 79.1 | $ 72.2 | $ 81.2 | $ 64.4 | (34.3) | $ 35.2 | $ (16.2) | ||
Net income attributable to ATI | $ (553.6) | $ 75.7 | $ 76 | $ 70.1 | $ 76.9 | $ 61.1 | $ (38) | $ 30.9 | $ (38.2) | ||
Basic net income (loss) attributable to ATI per common share (in dollars per share) | $ (4.35) | $ 0.59 | $ 0.59 | $ 0.55 | $ 0.60 | $ 0.47 | $ (0.31) | $ 0.24 | $ (0.30) | ||
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ (4.35) | $ 0.52 | $ 0.52 | $ 0.48 | $ 0.53 | $ 0.42 | $ (0.31) | $ 0.23 | $ (0.30) | ||
Effect of Accounting Change | |||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||
Operating income | $ 28.8 | ||||||||||
Net income | $ 699.3 | $ 14.5 | $ 14.4 | $ 14.4 | $ 116.1 | $ 15.8 | 44.7 | $ 16 | $ 222.8 | ||
Net income attributable to ATI | $ 699.3 | $ 14.5 | $ 14.4 | $ 14.4 | $ 116.1 | $ 15.8 | $ 44.7 | $ 16 | $ 222.8 | ||
Basic net income (loss) attributable to ATI per common share (in dollars per share) | $ 5.50 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.89 | $ 0.12 | $ 0.36 | $ 0.13 | $ 1.75 | ||
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ 5.34 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.77 | $ 0.11 | $ 0.36 | $ 0.10 | $ 1.62 |