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☒
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Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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☐
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Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Delaware
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25-1792394
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification Number)
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1000 Six PPG Place
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Pittsburgh,
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Pennsylvania
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15222-5479
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(Address of principal executive offices)
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(Zip Code)
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Title of each class
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Trading Symbol
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Name of each exchange on which registered
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Common stock, par value $0.10
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ATI
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New York Stock Exchange
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Large accelerated filer
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☒
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Accelerated filer
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☐
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Non-accelerated filer
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☐ (Do not check if a smaller reporting company)
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Smaller reporting company
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☐
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Emerging growth company
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☐
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Page
Number
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2019
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2018
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2017
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|||
High Performance Materials & Components
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58
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%
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58
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%
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|
59
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%
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Flat Rolled Products
|
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42
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%
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42
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%
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41
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%
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(In millions)
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2019
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2018
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2017
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||||||
Company-Funded:
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||||||
High Performance Materials & Components
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$
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12.3
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$
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17.6
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$
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9.3
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Flat Rolled Products
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3.3
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|
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2.6
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|
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2.7
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|||
Corporate
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2.2
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2.5
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1.3
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|||
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17.8
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22.7
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13.3
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Customer-Funded:
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||||||
High Performance Materials & Components
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2.4
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2.2
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1.4
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|||
Total Research and Development
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$
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20.2
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$
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24.9
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$
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14.7
|
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•
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make it more difficult for us to satisfy our obligations with respect to our outstanding indebtedness;
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•
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increase our vulnerability to general adverse economic and industry conditions;
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•
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require us to dedicate a substantial portion of our cash flow from operations to payments on our indebtedness, thereby reducing the availability of our cash flow to fund working capital, capital expenditures, our strategic growth initiatives and development efforts and other general corporate purposes;
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•
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limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;
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•
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restrict us from taking advantage of business opportunities;
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•
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place us at a competitive disadvantage compared to our competitors that have less indebtedness; and
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•
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limit our ability to borrow additional funds for working capital, capital expenditures, acquisitions, debt service requirements, execution of our business strategy or other general corporate purposes.
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Company / Index
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Dec 2014
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Dec 2015
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Dec 2016
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Dec 2017
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Dec 2018
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Dec 2019
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|||||
ATI
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100.00
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33.26
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47.86
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72.53
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65.41
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62.08
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S&P 500 Index
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100.00
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101.38
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113.51
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138.29
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132.23
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173.86
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S&P MidCap 400 Industrials Index
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100.00
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96.87
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124.70
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154.05
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131.12
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175.11
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Source: Standard & Poor’s
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(In millions)
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||||||||||
For the Years Ended December 31,
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2019
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2018
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2017
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2016
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2015
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||||||||||
Revenue by Market:
|
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||||||||||
Aerospace & Defense
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$
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2,130.4
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$
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1,965.5
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$
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1,718.1
|
|
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$
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1,590.4
|
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$
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1,514.0
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Oil & Gas
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510.6
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546.2
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|
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418.2
|
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280.8
|
|
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538.0
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|||||
Automotive
|
|
296.6
|
|
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323.4
|
|
|
273.7
|
|
|
232.8
|
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293.8
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|
|||||
Energy
|
|
286.3
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|
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234.5
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192.2
|
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232.6
|
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368.1
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|
|||||
Food Equipment & Appliances
|
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205.8
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244.9
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226.0
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172.2
|
|
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217.3
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|||||
Construction/Mining
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195.0
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226.0
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192.9
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160.6
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226.3
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|||||
Medical
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172.4
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183.1
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183.0
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195.8
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220.7
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|||||
Electronics/Communication/Computers
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163.2
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156.9
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151.6
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109.7
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126.4
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|||||
Other
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162.2
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166.1
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169.4
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159.7
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215.0
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|||||
Total
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$
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4,122.5
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$
|
4,046.6
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$
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3,525.1
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$
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3,134.6
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$
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3,719.6
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(In millions, except per share amounts)
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||||||||||
For the Years Ended December 31,
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2019
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2018
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2017
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2016
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2015
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||||||||||
Results of Operations:
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||||||||||
Sales:
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||||||||||
High Performance Materials & Components
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$
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2,398.1
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|
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$
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2,334.2
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$
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2,067.4
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$
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1,930.4
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$
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1,985.9
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Flat Rolled Products
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1,724.4
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1,712.4
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1,457.7
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1,204.2
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1,733.7
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|
|||||
Total Sales
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$
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4,122.5
|
|
|
$
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4,046.6
|
|
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$
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3,525.1
|
|
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$
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3,134.6
|
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$
|
3,719.6
|
|
Segment operating profit (loss):
|
|
|
|
|
|
|
|
|
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||||||||||
High Performance Materials & Components
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$
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343.1
|
|
|
$
|
335.4
|
|
|
$
|
246.4
|
|
|
$
|
168.7
|
|
|
$
|
157.1
|
|
Flat Rolled Products
|
|
37.6
|
|
|
77.8
|
|
|
37.0
|
|
|
(163.0
|
)
|
|
(241.9
|
)
|
|||||
Total segment operating profit (loss)
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|
$
|
380.7
|
|
|
$
|
413.2
|
|
|
$
|
283.4
|
|
|
$
|
5.7
|
|
|
$
|
(84.8
|
)
|
Income (loss) before income taxes
|
|
$
|
241.6
|
|
|
$
|
247.7
|
|
|
$
|
(86.5
|
)
|
|
$
|
(734.0
|
)
|
|
$
|
(478.0
|
)
|
Income tax provision (benefit)
|
|
(28.5
|
)
|
|
11.0
|
|
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(6.8
|
)
|
|
(106.9
|
)
|
|
(112.1
|
)
|
|||||
Net income (loss)
|
|
270.1
|
|
|
236.7
|
|
|
(79.7
|
)
|
|
(627.1
|
)
|
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(365.9
|
)
|
|||||
Less: Net income attributable to noncontrolling interests
|
|
12.5
|
|
|
14.3
|
|
|
12.2
|
|
|
13.8
|
|
|
12.0
|
|
|||||
Net income (loss) attributable to ATI
|
|
$
|
257.6
|
|
|
$
|
222.4
|
|
|
$
|
(91.9
|
)
|
|
$
|
(640.9
|
)
|
|
$
|
(377.9
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic net income (loss) attributable to ATI per common share
|
|
$
|
2.05
|
|
|
$
|
1.78
|
|
|
$
|
(0.83
|
)
|
|
$
|
(5.97
|
)
|
|
$
|
(3.53
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Diluted net income (loss) attributable to ATI per common share
|
|
$
|
1.85
|
|
|
$
|
1.61
|
|
|
$
|
(0.83
|
)
|
|
$
|
(5.97
|
)
|
|
$
|
(3.53
|
)
|
(In millions, except per share amounts and ratios)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of and for the Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Working capital
|
|
$
|
1,453.8
|
|
|
$
|
1,409.8
|
|
|
$
|
1,203.1
|
|
|
$
|
1,057.8
|
|
|
$
|
1,181.1
|
|
Total assets
|
|
5,634.6
|
|
|
5,501.8
|
|
|
5,185.4
|
|
|
5,170.0
|
|
|
5,751.7
|
|
|||||
Long-term debt
|
|
1,387.4
|
|
|
1,535.5
|
|
|
1,530.6
|
|
|
1,771.9
|
|
|
1,491.8
|
|
|||||
Total debt
|
|
1,398.9
|
|
|
1,542.1
|
|
|
1,540.7
|
|
|
1,877.0
|
|
|
1,495.7
|
|
|||||
Cash and cash equivalents
|
|
490.8
|
|
|
382.0
|
|
|
141.6
|
|
|
229.6
|
|
|
149.8
|
|
|||||
Total ATI Stockholders’ equity
|
|
2,090.1
|
|
|
1,885.7
|
|
|
1,739.4
|
|
|
1,355.2
|
|
|
2,082.8
|
|
|||||
Noncontrolling interests
|
|
103.1
|
|
|
105.9
|
|
|
105.1
|
|
|
89.6
|
|
|
101.6
|
|
|||||
Total Stockholders’ equity
|
|
2,193.2
|
|
|
1,991.6
|
|
|
1,844.5
|
|
|
1,444.8
|
|
|
2,184.4
|
|
|||||
Dividends declared per common share
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.24
|
|
|
$
|
0.62
|
|
(Dollars in millions, except per share amounts)
|
|
2019
|
|
2018
|
||||
Sales
|
|
$
|
4,122.5
|
|
|
$
|
4,046.6
|
|
Gross profit
|
|
$
|
637.8
|
|
|
$
|
630.3
|
|
Gross profit % of sales
|
|
15.5
|
%
|
|
15.6
|
%
|
||
Income before income taxes
|
|
$
|
241.6
|
|
|
$
|
247.7
|
|
Net income
|
|
$
|
257.6
|
|
|
$
|
222.4
|
|
Diluted net income per common share
|
|
$
|
1.85
|
|
|
$
|
1.61
|
|
•
|
We continued to be an industry leader in on-time delivery of high quality materials and components as indicated by our ability to secure extensions on various important long-term agreements (LTAs) in the HPMC segment in 2019. We extended supply agreements with GE Aviation that are expected to generate $2.5 billion in revenues and which begin in January 2021 and are multi-year agreements. We extended our long-term agreement through 2029 with Rolls-Royce to supply rotating disc quality specialty materials for their Trent engine family. This agreement covers the production of a wide-range of critical products used to make Rolls-Royce’s next-generation jet engines as well as spare parts for in-service engines. We also announced the expansion and 6.5 year extension of our LTA with BWX Technologies to supply materials for the manufacture of naval nuclear components.
|
•
|
The FRP segment achieved its third straight year of profitability despite the negative impacts from Section 232 tariffs, elevated retirement benefit expense, and soft demand for our standard stainless products and related cost inefficiencies. We remain focused on continuous improvement and profitable growth in this segment. We extended and expanded our agreement with NLMK USA for one year, through December 2020, to provide carbon steel hot-rolling conversion services at our world-class HRFP. This agreement includes significant guaranteed volumes and fixed fee-per-ton revenues.
|
•
|
We generated $230 million in cash from operating activities in 2019, which included $145 million in contributions to ATI’s U.S. defined benefit pension trust, and we achieved our long-range managed working capital target at 30% of annualized sales. We also generated $250 million in cash from non-core asset sales, including two transactions to monetize some of our long-held oil and gas rights and the divestitures of two non-core carbon steel forging facilities and our titanium investment castings business. Overall, we ended the year with $491 million of cash on hand.
|
•
|
In the fourth quarter 2019, we reduced our total debt outstanding by $150 million and lowered our Debt to Adjusted EBITDA ratio to 2.69 at December 31, 2019 compared to 3.07 at year-end 2018 (see the Financial Condition and Liquidity section of Management’s Discussion and Analysis for this calculation). We issued $350 million of 5.875% Senior Notes due 2027, the proceeds of which, along with cash on hand, were used to early redeem our $500 million 5.95% Senior Notes due 2021. In recognition of these improving credit metrics, Moody’s upgraded ATI’s credit rating one notch to B1.
|
•
|
On September 30, 2019, we amended and restated our Asset Based Lending (ABL) Credit Facility, extending the facility through 2024 and increasing the revolving credit portion of the facility by $100 million. See Financial Condition and Liquidity for further explanation.
|
•
|
We continued to make capital investments to support our strategic growth initiatives and to have the installed asset base in service and qualified when needed for additional production capacity associated with extended and expanded long-term agreements, principally involving customers in the aerospace & defense markets, including our iso-thermal press and heat-treating capacity expansion at our Iso-Thermal Forging Center of Excellence in Cudahy, WI.
|
•
|
We made further progress on our risk management strategy for retirement benefit obligations by completing a $96 million risk transfer through the purchase of an annuity contract with a nationally recognized insurance company. This annuity buyout removed 10% of plan participants, bringing the total pension participant reduction to more than 50% over the past seven years.
|
|
|
Fiscal Year Ended
|
||||||
|
|
December 31,
|
|
December 31,
|
||||
|
|
2019
|
2018
|
|||||
Sales:
|
|
|
|
|
||||
High Performance Materials & Components
|
|
$
|
2,398.1
|
|
|
$
|
2,334.2
|
|
Flat Rolled Products
|
|
1,724.4
|
|
|
1,712.4
|
|
||
Total external sales
|
|
$
|
4,122.5
|
|
|
$
|
4,046.6
|
|
|
|
|
|
|
||||
Operating profit:
|
|
|
|
|
||||
High Performance Materials & Components
|
|
$
|
343.1
|
|
|
$
|
335.4
|
|
% of Sales
|
|
14.3
|
%
|
|
14.4
|
%
|
||
Flat Rolled Products
|
|
$
|
37.6
|
|
|
$
|
77.8
|
|
% of Sales
|
|
2.2
|
%
|
|
4.5
|
%
|
||
Total operating profit
|
|
$
|
380.7
|
|
|
$
|
413.2
|
|
% of Sales
|
|
9.2
|
%
|
|
10.2
|
%
|
||
|
|
|
|
|
||||
LIFO and net realizable value reserves
|
|
$
|
(0.1
|
)
|
|
$
|
(0.7
|
)
|
Corporate expenses
|
|
(66.8
|
)
|
|
(58.1
|
)
|
||
Closed operations and other expense
|
|
(25.5
|
)
|
|
(21.6
|
)
|
||
Restructuring and other charges
|
|
(4.5
|
)
|
|
—
|
|
||
Gain on joint venture deconsolidation
|
|
—
|
|
|
15.9
|
|
||
Joint venture impairment charge
|
|
(11.4
|
)
|
|
—
|
|
||
Gains on asset sales, net
|
|
89.8
|
|
|
—
|
|
||
Debt extinguishment charge
|
|
(21.6
|
)
|
|
—
|
|
||
Interest expense, net
|
|
(99.0
|
)
|
|
(101.0
|
)
|
||
Income before income taxes
|
|
$
|
241.6
|
|
|
$
|
247.7
|
|
Market
|
|
2019
|
|
2018
|
||||||||||
Aerospace & Defense
|
|
$
|
2,130.4
|
|
|
52
|
%
|
|
$
|
1,965.5
|
|
|
49
|
%
|
Oil & Gas
|
|
510.6
|
|
|
12
|
%
|
|
546.2
|
|
|
13
|
%
|
||
Automotive
|
|
296.6
|
|
|
7
|
%
|
|
323.4
|
|
|
8
|
%
|
||
Energy
|
|
286.3
|
|
|
7
|
%
|
|
234.5
|
|
|
6
|
%
|
||
Food Equipment & Appliances
|
|
205.8
|
|
|
5
|
%
|
|
244.9
|
|
|
6
|
%
|
||
Construction/Mining
|
|
195.0
|
|
|
5
|
%
|
|
226.0
|
|
|
6
|
%
|
||
Medical
|
|
172.4
|
|
|
4
|
%
|
|
183.1
|
|
|
4
|
%
|
||
Electronics/Computers/Communication
|
|
163.2
|
|
|
4
|
%
|
|
156.9
|
|
|
4
|
%
|
||
Other
|
|
162.2
|
|
|
4
|
%
|
|
166.1
|
|
|
4
|
%
|
||
Total
|
|
$
|
4,122.5
|
|
|
100
|
%
|
|
$
|
4,046.6
|
|
|
100
|
%
|
For the Years Ended December 31,
|
|
2019
|
|
2018
|
||
High-Value Products
|
|
|
|
|
||
Nickel-based alloys and specialty alloys
|
|
32
|
%
|
|
30
|
%
|
Precision forgings, castings and components
|
|
18
|
%
|
|
20
|
%
|
Titanium and titanium-based alloys
|
|
18
|
%
|
|
17
|
%
|
Precision and engineered strip
|
|
13
|
%
|
|
14
|
%
|
Zirconium and related alloys
|
|
6
|
%
|
|
5
|
%
|
Total High-Value Products
|
|
87
|
%
|
|
86
|
%
|
Standard Products
|
|
|
|
|
||
Total Standard Products
|
|
13
|
%
|
|
14
|
%
|
Grand Total
|
|
100
|
%
|
|
100
|
%
|
For the Years Ended December 31,
|
|
2019
|
|
2018
|
||||||||||
United States
|
|
$
|
2,454.6
|
|
|
58
|
%
|
|
$
|
2,348.1
|
|
|
58
|
%
|
Europe
|
|
800.0
|
|
|
22
|
%
|
|
877.2
|
|
|
22
|
%
|
||
Asia
|
|
638.1
|
|
|
15
|
%
|
|
602.1
|
|
|
15
|
%
|
||
Canada
|
|
106.3
|
|
|
2
|
%
|
|
106.5
|
|
|
2
|
%
|
||
Other
|
|
123.5
|
|
|
3
|
%
|
|
112.7
|
|
|
3
|
%
|
||
Total sales
|
|
$
|
4,122.5
|
|
|
100
|
%
|
|
$
|
4,046.6
|
|
|
100
|
%
|
(In millions)
|
|
2019
|
|
% Change
|
|
2018
|
|||||
Sales to external customers
|
|
$
|
2,398.1
|
|
|
3
|
%
|
|
$
|
2,334.2
|
|
Segment operating profit
|
|
$
|
343.1
|
|
|
2
|
%
|
|
$
|
335.4
|
|
Segment operating profit as a percentage of sales
|
|
14.3
|
%
|
|
|
|
14.4
|
%
|
|||
International sales as a percentage of sales
|
|
45.0
|
%
|
|
|
|
48.0
|
%
|
Market
|
|
2019
|
|
2018
|
|
Change
|
|||||||||||||||
Aerospace & Defense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Jet Engines
|
|
$
|
1,066.6
|
|
|
44
|
%
|
|
$
|
1,100.6
|
|
|
47
|
%
|
|
$
|
(34.0
|
)
|
|
(3
|
)%
|
Airframes
|
|
481.0
|
|
|
20
|
%
|
|
411.2
|
|
|
18
|
%
|
|
69.8
|
|
|
17
|
%
|
|||
Government Aerospace & Defense
|
|
331.5
|
|
|
14
|
%
|
|
259.5
|
|
|
11
|
%
|
|
72.0
|
|
|
28
|
%
|
|||
Total Aerospace & Defense
|
|
1,879.1
|
|
|
78
|
%
|
|
1,771.3
|
|
|
76
|
%
|
|
107.8
|
|
|
6
|
%
|
|||
Medical
|
|
159.2
|
|
|
7
|
%
|
|
168.5
|
|
|
7
|
%
|
|
(9.3
|
)
|
|
(6
|
)%
|
|||
Energy
|
|
156.9
|
|
|
7
|
%
|
|
131.4
|
|
|
6
|
%
|
|
25.5
|
|
|
19
|
%
|
|||
Oil & Gas
|
|
64.3
|
|
|
3
|
%
|
|
74.9
|
|
|
3
|
%
|
|
(10.6
|
)
|
|
(14
|
)%
|
|||
Construction/Mining
|
|
42.5
|
|
|
2
|
%
|
|
72.8
|
|
|
3
|
%
|
|
(30.3
|
)
|
|
(42
|
)%
|
|||
Other
|
|
96.1
|
|
|
3
|
%
|
|
115.3
|
|
|
5
|
%
|
|
(19.2
|
)
|
|
(17
|
)%
|
|||
Total
|
|
$
|
2,398.1
|
|
|
100
|
%
|
|
$
|
2,334.2
|
|
|
100
|
%
|
|
$
|
63.9
|
|
|
3
|
%
|
For the Years Ended December 31,
|
|
2019
|
|
2018
|
||
High-Value Products
|
|
|
|
|
||
Nickel-based alloys and specialty alloys
|
|
32
|
%
|
|
31
|
%
|
Precision forgings, castings and components
|
|
30
|
%
|
|
34
|
%
|
Titanium and titanium-based alloys
|
|
28
|
%
|
|
25
|
%
|
Zirconium and related alloys
|
|
10
|
%
|
|
10
|
%
|
Total High-Value Products
|
|
100
|
%
|
|
100
|
%
|
(In millions)
|
|
2019
|
|
% Change
|
|
2018
|
|||||
Sales to external customers
|
|
$
|
1,724.4
|
|
|
1
|
%
|
|
$
|
1,712.4
|
|
Segment operating profit
|
|
$
|
37.6
|
|
|
(52
|
)%
|
|
$
|
77.8
|
|
Segment operating profit as a percentage of sales
|
|
2.2
|
%
|
|
|
|
4.5
|
%
|
|||
International sales as a percentage of sales
|
|
34.2
|
%
|
|
|
|
33.8
|
%
|
Market
|
|
2019
|
|
2018
|
|
Change
|
|||||||||||||||
Oil & Gas
|
|
$
|
446.3
|
|
|
26
|
%
|
|
$
|
471.3
|
|
|
28
|
%
|
|
$
|
(25.0
|
)
|
|
(5
|
)%
|
Automotive
|
|
286.1
|
|
|
17
|
%
|
|
313.9
|
|
|
18
|
%
|
|
(27.8
|
)
|
|
(9
|
)%
|
|||
Aerospace & Defense
|
|
251.3
|
|
|
15
|
%
|
|
194.2
|
|
|
11
|
%
|
|
57.1
|
|
|
29
|
%
|
|||
Food Equipment & Appliances
|
|
205.5
|
|
|
12
|
%
|
|
244.5
|
|
|
14
|
%
|
|
(39.0
|
)
|
|
(16
|
)%
|
|||
Electronics/Computers/Communication
|
|
157.4
|
|
|
9
|
%
|
|
149.0
|
|
|
9
|
%
|
|
8.4
|
|
|
6
|
%
|
|||
Construction/Mining
|
|
152.5
|
|
|
9
|
%
|
|
153.2
|
|
|
9
|
%
|
|
(0.7
|
)
|
|
—
|
%
|
|||
Energy
|
|
129.4
|
|
|
7
|
%
|
|
103.1
|
|
|
6
|
%
|
|
26.3
|
|
|
26
|
%
|
|||
Other
|
|
95.9
|
|
|
5
|
%
|
|
83.2
|
|
|
5
|
%
|
|
12.7
|
|
|
15
|
%
|
|||
Total
|
|
$
|
1,724.4
|
|
|
100
|
%
|
|
$
|
1,712.4
|
|
|
100
|
%
|
|
$
|
12.0
|
|
|
1
|
%
|
For the Years Ended December 31,
|
|
2019
|
|
2018
|
||
High-Value Products
|
|
|
|
|
||
Precision and engineered strip
|
|
32
|
%
|
|
33
|
%
|
Nickel-based alloys and specialty alloys
|
|
32
|
%
|
|
28
|
%
|
Titanium and titanium-based alloys
|
|
6
|
%
|
|
5
|
%
|
Total High-Value Products
|
|
70
|
%
|
|
66
|
%
|
Standard Products
|
|
|
|
|
||
Total Standard Products
|
|
30
|
%
|
|
34
|
%
|
Grand Total
|
|
100
|
%
|
|
100
|
%
|
|
|
2019
|
|
2018
|
|
% change
|
|||
Volume (000’s pounds):
|
|
|
|
|
|
|
|||
High-Value
|
|
351,841
|
|
|
346,564
|
|
|
2
|
%
|
Standard
|
|
361,736
|
|
|
400,995
|
|
|
(10
|
)%
|
Total
|
|
713,577
|
|
|
747,559
|
|
|
(5
|
)%
|
Average prices (per lb.):
|
|
|
|
|
|
|
|||
High-Value
|
|
$3.30
|
|
$3.20
|
|
3
|
%
|
||
Standard
|
|
$1.41
|
|
$1.41
|
|
—
|
%
|
||
Combined Average
|
|
$2.34
|
|
$2.24
|
|
4
|
%
|
(In millions)
|
|
December 31,
2019 |
|
December 31,
2018 |
||||
Accounts receivable
|
|
$
|
554.1
|
|
|
$
|
527.8
|
|
Short-term contract assets
|
|
38.5
|
|
|
51.2
|
|
||
Inventory
|
|
1,155.3
|
|
|
1,211.1
|
|
||
Accounts payable
|
|
(521.2
|
)
|
|
(498.8
|
)
|
||
Short-term contract liabilities
|
|
(78.7
|
)
|
|
(71.4
|
)
|
||
Subtotal
|
|
1,148.0
|
|
|
1,219.9
|
|
||
Allowance for doubtful accounts
|
|
4.6
|
|
|
6.0
|
|
||
LIFO reserve
|
|
(33.6
|
)
|
|
(2.9
|
)
|
||
Inventory reserves
|
|
104.1
|
|
|
88.5
|
|
||
Managed working capital
|
|
$
|
1,223.1
|
|
|
$
|
1,311.5
|
|
Annualized prior 3 months sales
|
|
$
|
4,047.4
|
|
|
$
|
4,151.3
|
|
Managed working capital as a % of annualized sales
|
|
30.0
|
%
|
|
31.6
|
%
|
||
December 31, 2019 change in managed working capital
|
|
$
|
(88.4
|
)
|
|
|
|
|
December 31,
2019 |
|
December 31,
2018 |
||||
Income before income taxes
|
|
$
|
241.6
|
|
|
$
|
247.7
|
|
Interest expense
|
|
99.0
|
|
|
101.0
|
|
||
Depreciation and amortization
|
|
151.1
|
|
|
156.4
|
|
||
Joint venture impairment charge
|
|
11.4
|
|
|
—
|
|
||
Debt extinguishment charge
|
|
21.6
|
|
|
—
|
|
||
Adjusted EBITDA
|
|
$
|
524.7
|
|
|
$
|
505.1
|
|
|
|
|
|
|
||||
Total debt (a)
|
|
$
|
1,411.2
|
|
|
$
|
1,552.5
|
|
Less: Cash
|
|
(490.8
|
)
|
|
(382.0
|
)
|
||
Net debt
|
|
$
|
920.4
|
|
|
$
|
1,170.5
|
|
|
|
|
|
|
||||
Debt to Adjusted EBITDA
|
|
2.69
|
|
|
3.07
|
|
||
Net Debt to Adjusted EBITDA
|
|
1.75
|
|
|
2.32
|
|
(In millions)
|
|
December 31,
2019 |
|
December 31,
2018 |
||||
Total debt (a)
|
|
$
|
1,411.2
|
|
|
$
|
1,552.5
|
|
Less: Cash
|
|
(490.8
|
)
|
|
(382.0
|
)
|
||
Net debt
|
|
$
|
920.4
|
|
|
$
|
1,170.5
|
|
Total ATI stockholders’ equity
|
|
2,090.1
|
|
|
1,885.7
|
|
||
Net ATI capital
|
|
$
|
3,010.5
|
|
|
$
|
3,056.2
|
|
Net debt to ATI capital
|
|
30.6
|
%
|
|
38.3
|
%
|
(In millions)
|
|
December 31,
2019 |
|
December 31,
2018 |
||||
Total debt (a)
|
|
$
|
1,411.2
|
|
|
$
|
1,552.5
|
|
Total ATI stockholders’ equity
|
|
2,090.1
|
|
|
1,885.7
|
|
||
Total ATI capital
|
|
$
|
3,501.3
|
|
|
$
|
3,438.2
|
|
Total debt to ATI capital
|
|
40.3
|
%
|
|
45.2
|
%
|
(In millions)
|
|
Total
|
|
Less than 1
year
|
|
1-3
years
|
|
4-5
years
|
|
After 5
years
|
||||||||||
Contractual Cash Obligations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total Debt including Finance Leases
|
|
$
|
1,411.2
|
|
|
$
|
11.5
|
|
|
$
|
296.3
|
|
|
$
|
603.4
|
|
|
$
|
500.0
|
|
Interest on Debt (A)
|
|
444.7
|
|
|
95.4
|
|
|
169.3
|
|
|
107.9
|
|
|
72.1
|
|
|||||
Operating Lease Obligations (B)
|
|
97.8
|
|
|
20.0
|
|
|
33.5
|
|
|
19.7
|
|
|
24.6
|
|
|||||
Other Long-term Liabilities
|
|
91.2
|
|
|
—
|
|
|
33.9
|
|
|
20.5
|
|
|
36.8
|
|
|||||
Pension and OPEB Obligations (C)
|
|
713.4
|
|
|
171.8
|
|
|
247.7
|
|
|
169.8
|
|
|
124.1
|
|
|||||
Unconditional Purchase Obligations
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Raw Materials (D)
|
|
1,245.9
|
|
|
317.7
|
|
|
374.2
|
|
|
308.0
|
|
|
246.0
|
|
|||||
Capital expenditures
|
|
116.5
|
|
|
105.4
|
|
|
10.6
|
|
|
0.3
|
|
|
0.2
|
|
|||||
Other (E)
|
|
82.8
|
|
|
46.4
|
|
|
27.1
|
|
|
8.8
|
|
|
0.5
|
|
|||||
Total
|
|
$
|
4,203.5
|
|
|
$
|
768.2
|
|
|
$
|
1,192.6
|
|
|
$
|
1,238.4
|
|
|
$
|
1,004.3
|
|
Other Financial Commitments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Lines of Credit (F)
|
|
$
|
566.9
|
|
|
$
|
66.9
|
|
|
$
|
—
|
|
|
$
|
500.0
|
|
|
$
|
—
|
|
Guarantees
|
|
$
|
27.9
|
|
|
|
|
|
|
|
|
|
(A)
|
Amounts include contractual interest payments using the interest rates in effect as of December 31, 2019 applicable to the Company’s 2022 Convertible Notes, the 2023 Notes, the Term Loan due 2024, the Allegheny Ludlum 6.95% Debentures due 2025 and the 2027 Notes.
|
(B)
|
Amounts include operating lease obligations at their undiscounted value. These obligations are presented in other current liabilities and other long-term liabilities on the consolidated balance sheets at their discounted value, using applicable interest rates. See Note 11, Leases for further information.
|
(C)
|
Based on current actuarial studies, amounts include payments for the next 10 years to defined benefit pension plans, assuming the expected long-term returns on pension assets are achieved. Projections of minimum required payments to the U.S. qualified defined benefit pension plans are subject to significant uncertainty based on a number of factors including actual pension plan asset returns, changes in estimates of participant longevity, and changes in interest rates. Amounts also include actuarial projections of payments under other postemployment benefit plans for the next 10 years. In most retiree healthcare plans, our contributions are capped based on the cost as of a certain date. See Note 14, Retirement Benefits for further information.
|
(D)
|
We have contracted for physical delivery for certain of our raw materials to meet a portion of our needs. These contracts are based upon fixed or variable price provisions. We used current market prices as of December 31, 2019, for raw material obligations with variable pricing.
|
(E)
|
We have various contractual obligations that extend through 2025 for services involving production facilities and administrative operations. Our purchase obligation as disclosed represents the estimated termination fees payable if we were to exit these contracts.
|
(F)
|
At December 31, 2019, there were no amounts drawn under foreign credit agreements. Drawn amounts on the U.S. facility were $35.3 million utilized under the $500 million ABL facility for standby letters of credit, which renew annually. These letters of credit are used to support: $29.8 million in workers’ compensation and general insurance arrangements, $5.4 million related to environmental matters and $0.1 million for ATI’s assurance of performance to a customer.
|
|
|
Fiscal year ended December 31,
|
||||||||
|
|
2019
|
2018
|
2017
|
||||||
LIFO benefit (charge)
|
|
$
|
25.5
|
|
$
|
(28.6
|
)
|
$
|
(54.2
|
)
|
NRV benefit (charge)
|
|
(25.6
|
)
|
27.9
|
|
54.0
|
|
|||
Net cost of sales impact
|
|
$
|
(0.1
|
)
|
$
|
(0.7
|
)
|
$
|
(0.2
|
)
|
For the Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
Sales
|
|
$
|
4,122.5
|
|
|
$
|
4,046.6
|
|
|
$
|
3,525.1
|
|
|
|
|
|
|
|
|
||||||
Cost of sales
|
|
3,484.7
|
|
|
3,416.3
|
|
|
3,028.1
|
|
|||
Gross profit
|
|
637.8
|
|
|
630.3
|
|
|
497.0
|
|
|||
Selling and administrative expenses
|
|
267.2
|
|
|
268.2
|
|
|
248.0
|
|
|||
Impairment of goodwill
|
|
—
|
|
|
—
|
|
|
114.4
|
|
|||
Restructuring charges
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|||
Operating income
|
|
366.1
|
|
|
362.1
|
|
|
134.6
|
|
|||
Nonoperating retirement benefit expense
|
|
(73.6
|
)
|
|
(33.9
|
)
|
|
(54.3
|
)
|
|||
Interest expense, net
|
|
(99.0
|
)
|
|
(101.0
|
)
|
|
(133.8
|
)
|
|||
Debt extinguishment charge
|
|
(21.6
|
)
|
|
—
|
|
|
(37.0
|
)
|
|||
Other income, net
|
|
69.7
|
|
|
20.5
|
|
|
4.0
|
|
|||
Income (loss) before income taxes
|
|
241.6
|
|
|
247.7
|
|
|
(86.5
|
)
|
|||
Income tax provision (benefit)
|
|
(28.5
|
)
|
|
11.0
|
|
|
(6.8
|
)
|
|||
Net income (loss)
|
|
270.1
|
|
|
236.7
|
|
|
(79.7
|
)
|
|||
Less: Net income attributable to noncontrolling interests
|
|
12.5
|
|
|
14.3
|
|
|
12.2
|
|
|||
Net income (loss) attributable to ATI
|
|
$
|
257.6
|
|
|
$
|
222.4
|
|
|
$
|
(91.9
|
)
|
|
|
|
|
|
|
|
||||||
Basic net income (loss) attributable to ATI per common share
|
|
$
|
2.05
|
|
|
$
|
1.78
|
|
|
$
|
(0.83
|
)
|
|
|
|
|
|
|
|
||||||
Diluted net income (loss) attributable to ATI per common share
|
|
$
|
1.85
|
|
|
$
|
1.61
|
|
|
$
|
(0.83
|
)
|
For the Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net income (loss)
|
|
$
|
270.1
|
|
|
$
|
236.7
|
|
|
$
|
(79.7
|
)
|
Currency translation adjustment
|
|
|
|
|
|
|
||||||
Unrealized net change arising during the period
|
|
(4.0
|
)
|
|
(26.6
|
)
|
|
39.1
|
|
|||
Derivatives
|
|
|
|
|
|
|
||||||
Net derivatives gain (loss) on hedge transactions
|
|
9.7
|
|
|
(6.4
|
)
|
|
14.3
|
|
|||
Reclassification to net income (loss) of net realized loss gain
|
|
(4.1
|
)
|
|
(11.7
|
)
|
|
(7.2
|
)
|
|||
Income taxes on derivative transactions
|
|
(4.7
|
)
|
|
—
|
|
|
—
|
|
|||
Total
|
|
10.3
|
|
|
(18.1
|
)
|
|
7.1
|
|
|||
Postretirement benefit plans
|
|
|
|
|
|
|
||||||
Actuarial loss
|
|
|
|
|
|
|
||||||
Amortization of net actuarial loss
|
|
87.2
|
|
|
76.5
|
|
|
71.6
|
|
|||
Net loss arising during the period
|
|
(180.5
|
)
|
|
(141.4
|
)
|
|
(42.7
|
)
|
|||
Prior service cost
|
|
|
|
|
|
|
||||||
Amortization to net income (loss) of net prior service credits
|
|
(2.6
|
)
|
|
(2.6
|
)
|
|
(1.6
|
)
|
|||
Income taxes on postretirement benefit plans
|
|
(20.4
|
)
|
|
—
|
|
|
—
|
|
|||
Total
|
|
(75.5
|
)
|
|
(67.5
|
)
|
|
27.3
|
|
|||
Other comprehensive income (loss), net of tax
|
|
(69.2
|
)
|
|
(112.2
|
)
|
|
73.5
|
|
|||
Comprehensive income (loss)
|
|
200.9
|
|
|
124.5
|
|
|
(6.2
|
)
|
|||
Less: Comprehensive income attributable to noncontrolling interests
|
|
11.2
|
|
|
8.1
|
|
|
19.8
|
|
|||
Comprehensive income (loss) attributable to ATI
|
|
$
|
189.7
|
|
|
$
|
116.4
|
|
|
$
|
(26.0
|
)
|
(In millions, except share and per share amounts)
|
|
December 31,
2019 |
|
December 31,
2018 |
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
490.8
|
|
|
$
|
382.0
|
|
Accounts receivable, net
|
|
554.1
|
|
|
527.8
|
|
||
Shot-term contract assets
|
|
38.5
|
|
|
51.2
|
|
||
Inventories, net
|
|
1,155.3
|
|
|
1,211.1
|
|
||
Prepaid expenses and other current assets
|
|
64.3
|
|
|
74.6
|
|
||
Total Current Assets
|
|
2,303.0
|
|
|
2,246.7
|
|
||
Property, plant and equipment, net
|
|
2,450.1
|
|
|
2,475.0
|
|
||
Goodwill
|
|
525.8
|
|
|
534.7
|
|
||
Other assets
|
|
355.7
|
|
|
245.4
|
|
||
Total Assets
|
|
$
|
5,634.6
|
|
|
$
|
5,501.8
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
||||
Accounts payable
|
|
$
|
521.2
|
|
|
$
|
498.8
|
|
Short-term contract liabilities
|
|
78.7
|
|
|
71.4
|
|
||
Short-term debt and current portion of long-term debt
|
|
11.5
|
|
|
6.6
|
|
||
Other current liabilities
|
|
237.8
|
|
|
260.1
|
|
||
Total Current Liabilities
|
|
849.2
|
|
|
836.9
|
|
||
Long-term debt
|
|
1,387.4
|
|
|
1,535.5
|
|
||
Accrued postretirement benefits
|
|
312.5
|
|
|
318.4
|
|
||
Pension liabilities
|
|
731.5
|
|
|
730.0
|
|
||
Other long-term liabilities
|
|
160.8
|
|
|
89.4
|
|
||
Total Liabilities
|
|
3,441.4
|
|
|
3,510.2
|
|
||
Equity:
|
|
|
|
|
||||
ATI Stockholders’ Equity:
|
|
|
|
|
||||
Preferred stock, par value $0.10: authorized-50,000,000 shares; issued-none
|
|
—
|
|
|
—
|
|
||
Common stock, par value $0.10: authorized-500,000,000 shares; issued- 126,695,171 shares at December 31, 2019 and 2018; outstanding-126,085,348 shares at December 31, 2019 and 125,684,396 shares at December 31, 2018
|
|
12.7
|
|
|
12.7
|
|
||
Additional paid-in capital
|
|
1,618.0
|
|
|
1,615.4
|
|
||
Retained earnings
|
|
1,679.3
|
|
|
1,422.0
|
|
||
Treasury stock: 609,823 shares at December 31, 2019 and 1,010,775 shares at December 31, 2018
|
|
(18.2
|
)
|
|
(30.6
|
)
|
||
Accumulated other comprehensive loss, net of tax
|
|
(1,201.7
|
)
|
|
(1,133.8
|
)
|
||
Total ATI Stockholders’ Equity
|
|
2,090.1
|
|
|
1,885.7
|
|
||
Noncontrolling Interests
|
|
103.1
|
|
|
105.9
|
|
||
Total Stockholders’ Equity
|
|
2,193.2
|
|
|
1,991.6
|
|
||
Total Liabilities and Stockholders’ Equity
|
|
$
|
5,634.6
|
|
|
$
|
5,501.8
|
|
For the Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
Operating Activities:
|
|
|
|
|
|
|
||||||
Net income (loss)
|
|
$
|
270.1
|
|
|
$
|
236.7
|
|
|
$
|
(79.7
|
)
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
|
|
|
|
|
|
||||||
Depreciation and amortization
|
|
151.1
|
|
|
156.4
|
|
|
160.8
|
|
|||
Deferred taxes
|
|
(40.9
|
)
|
|
2.1
|
|
|
(1.4
|
)
|
|||
Gain on joint venture deconsolidation
|
|
—
|
|
|
(15.9
|
)
|
|
—
|
|
|||
Impairment of goodwill
|
|
—
|
|
|
—
|
|
|
114.4
|
|
|||
Debt extinguishment charge
|
|
21.6
|
|
|
—
|
|
|
37.0
|
|
|||
Gain from disposal of property, plant and equipment, net
|
|
(90.6
|
)
|
|
(1.2
|
)
|
|
(0.5
|
)
|
|||
Net loss from sales of businesses
|
|
1.8
|
|
|
—
|
|
|
—
|
|
|||
Non-cash joint venture impairment charge
|
|
11.4
|
|
|
—
|
|
|
—
|
|
|||
Change in operating assets and liabilities:
|
|
|
|
|
|
|
||||||
Retirement benefits
|
|
(103.3
|
)
|
|
(32.6
|
)
|
|
(110.3
|
)
|
|||
Accounts receivable
|
|
(52.1
|
)
|
|
16.0
|
|
|
(93.2
|
)
|
|||
Inventories
|
|
25.4
|
|
|
(108.5
|
)
|
|
(139.2
|
)
|
|||
Accounts payable
|
|
30.1
|
|
|
153.7
|
|
|
125.8
|
|
|||
Accrued income taxes
|
|
4.9
|
|
|
1.4
|
|
|
(1.9
|
)
|
|||
Accrued liabilities and other
|
|
0.6
|
|
|
(15.3
|
)
|
|
10.6
|
|
|||
Cash provided by operating activities
|
|
230.1
|
|
|
392.8
|
|
|
22.4
|
|
|||
Investing Activities:
|
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment
|
|
(168.2
|
)
|
|
(139.2
|
)
|
|
(122.7
|
)
|
|||
Proceeds from disposal of property, plant and equipment
|
|
92.0
|
|
|
2.8
|
|
|
2.7
|
|
|||
Purchases of businesses
|
|
—
|
|
|
(10.0
|
)
|
|
—
|
|
|||
Proceeds from sales of businesses, net of transaction costs
|
|
158.1
|
|
|
—
|
|
|
—
|
|
|||
Other
|
|
(0.2
|
)
|
|
1.3
|
|
|
0.4
|
|
|||
Cash provided by (used in) investing activities
|
|
81.7
|
|
|
(145.1
|
)
|
|
(119.6
|
)
|
|||
Financing Activities:
|
|
|
|
|
|
|
||||||
Borrowings on long-term debt
|
|
350.0
|
|
|
7.1
|
|
|
8.5
|
|
|||
Payments on long-term debt and finance leases
|
|
(507.6
|
)
|
|
(6.4
|
)
|
|
(353.0
|
)
|
|||
Net borrowings (payments) under credit facilities
|
|
4.9
|
|
|
(5.9
|
)
|
|
1.6
|
|
|||
Debt issuance costs
|
|
(5.5
|
)
|
|
—
|
|
|
(0.8
|
)
|
|||
Debt extinguishment charge
|
|
(20.9
|
)
|
|
—
|
|
|
(35.8
|
)
|
|||
Issuance of common stock
|
|
—
|
|
|
—
|
|
|
397.8
|
|
|||
Dividends paid to noncontrolling interests
|
|
(14.0
|
)
|
|
(10.0
|
)
|
|
(8.0
|
)
|
|||
Sale to noncontrolling interest
|
|
—
|
|
|
14.4
|
|
|
3.7
|
|
|||
Shares repurchased for income tax withholding on share-based compensation
|
|
(9.9
|
)
|
|
(6.5
|
)
|
|
(4.8
|
)
|
|||
Cash (used in) provided by financing activities
|
|
(203.0
|
)
|
|
(7.3
|
)
|
|
9.2
|
|
|||
Increase (decrease) in cash and cash equivalents
|
|
108.8
|
|
|
240.4
|
|
|
(88.0
|
)
|
|||
Cash and cash equivalents at beginning of year
|
|
382.0
|
|
|
141.6
|
|
|
229.6
|
|
|||
Cash and cash equivalents at end of year
|
|
$
|
490.8
|
|
|
$
|
382.0
|
|
|
$
|
141.6
|
|
|
|
ATI Stockholders
|
|
|
|
|
||||||||||||||||||||||
(In millions, except per share amounts)
|
|
Common
Stock
|
|
Additional
Paid-In
Capital
|
|
Retained
Earnings
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Non-
controlling
Interests
|
|
Total
Equity
|
||||||||||||||
Balance, December 31, 2016
|
|
$
|
11.0
|
|
|
$
|
1,188.8
|
|
|
$
|
1,277.1
|
|
|
$
|
(28.0
|
)
|
|
$
|
(1,093.7
|
)
|
|
$
|
89.6
|
|
|
$
|
1,444.8
|
|
Net income (loss)
|
|
—
|
|
|
—
|
|
|
(91.9
|
)
|
|
—
|
|
|
—
|
|
|
12.2
|
|
|
(79.7
|
)
|
|||||||
Other comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
65.9
|
|
|
7.6
|
|
|
73.5
|
|
|||||||
Issuance of common stock
|
|
1.7
|
|
|
396.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
397.8
|
|
|||||||
Dividends paid to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8.0
|
)
|
|
(8.0
|
)
|
|||||||
Sales of subsidiary shares to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|
3.7
|
|
|||||||
Employee stock plans
|
|
—
|
|
|
11.4
|
|
|
(0.9
|
)
|
|
1.9
|
|
|
—
|
|
|
—
|
|
|
12.4
|
|
|||||||
Balance, December 31, 2017
|
|
$
|
12.7
|
|
|
$
|
1,596.3
|
|
|
$
|
1,184.3
|
|
|
$
|
(26.1
|
)
|
|
$
|
(1,027.8
|
)
|
|
$
|
105.1
|
|
|
$
|
1,844.5
|
|
Net income
|
|
—
|
|
|
—
|
|
|
222.4
|
|
|
—
|
|
|
—
|
|
|
14.3
|
|
|
236.7
|
|
|||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(106.0
|
)
|
|
(6.2
|
)
|
|
(112.2
|
)
|
|||||||
Cumulative effect of adoption of new accounting standard
|
|
—
|
|
|
—
|
|
|
15.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15.5
|
|
|||||||
Dividends paid to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10.0
|
)
|
|
(10.0
|
)
|
|||||||
Sale of subsidiary shares to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.7
|
|
|
2.7
|
|
|||||||
Employee stock plans
|
|
—
|
|
|
19.1
|
|
|
(0.2
|
)
|
|
(4.5
|
)
|
|
—
|
|
|
—
|
|
|
14.4
|
|
|||||||
Balance, December 31, 2018
|
|
$
|
12.7
|
|
|
$
|
1,615.4
|
|
|
$
|
1,422.0
|
|
|
$
|
(30.6
|
)
|
|
$
|
(1,133.8
|
)
|
|
$
|
105.9
|
|
|
$
|
1,991.6
|
|
Net income
|
|
—
|
|
|
—
|
|
|
257.6
|
|
|
—
|
|
|
—
|
|
|
12.5
|
|
|
270.1
|
|
|||||||
Other comprehensive loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(67.9
|
)
|
|
(1.3
|
)
|
|
(69.2
|
)
|
|||||||
Dividends paid to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14.0
|
)
|
|
(14.0
|
)
|
|||||||
Employee stock plans
|
|
—
|
|
|
2.6
|
|
|
(0.3
|
)
|
|
12.4
|
|
|
—
|
|
|
—
|
|
|
14.7
|
|
|||||||
Balance, December 31, 2019
|
|
$
|
12.7
|
|
|
$
|
1,618.0
|
|
|
$
|
1,679.3
|
|
|
$
|
(18.2
|
)
|
|
$
|
(1,201.7
|
)
|
|
$
|
103.1
|
|
|
$
|
2,193.2
|
|
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. This approach is consistent with our revenue recognition approach in prior years.
|
(in millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||
|
|
HPMC
|
FRP
|
Total
|
|
HPMC
|
FRP
|
Total
|
|
HPMC
|
FRP
|
Total
|
||||||||||||||||||
Diversified Global Markets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Aerospace & Defense
|
|
$
|
1,879.1
|
|
$
|
251.3
|
|
$
|
2,130.4
|
|
|
$
|
1,771.3
|
|
$
|
194.2
|
|
$
|
1,965.5
|
|
|
$
|
1,568.9
|
|
$
|
149.2
|
|
$
|
1,718.1
|
|
Oil & Gas
|
|
64.3
|
|
446.3
|
|
510.6
|
|
|
74.9
|
|
471.3
|
|
546.2
|
|
|
63.9
|
|
354.3
|
|
418.2
|
|
|||||||||
Automotive
|
|
10.5
|
|
286.1
|
|
296.6
|
|
|
9.5
|
|
313.9
|
|
323.4
|
|
|
8.8
|
|
264.9
|
|
273.7
|
|
|||||||||
Energy
|
|
156.9
|
|
129.4
|
|
286.3
|
|
|
131.4
|
|
103.1
|
|
234.5
|
|
|
113.1
|
|
79.1
|
|
192.2
|
|
|||||||||
Food Equipment & Appliances
|
|
0.3
|
|
205.5
|
|
205.8
|
|
|
0.4
|
|
244.5
|
|
244.9
|
|
|
1.1
|
|
224.9
|
|
226.0
|
|
|||||||||
Construction/Mining
|
|
42.5
|
|
152.5
|
|
195.0
|
|
|
72.8
|
|
153.2
|
|
226.0
|
|
|
51.1
|
|
141.8
|
|
192.9
|
|
|||||||||
Medical
|
|
159.2
|
|
13.2
|
|
172.4
|
|
|
168.5
|
|
14.6
|
|
183.1
|
|
|
170.4
|
|
12.6
|
|
183.0
|
|
|||||||||
Electronics/Computers/Communications
|
|
5.8
|
|
157.4
|
|
163.2
|
|
|
7.9
|
|
149.0
|
|
156.9
|
|
|
4.4
|
|
147.2
|
|
151.6
|
|
|||||||||
Other
|
|
79.5
|
|
82.7
|
|
162.2
|
|
|
97.5
|
|
68.6
|
|
166.1
|
|
|
85.7
|
|
83.7
|
|
169.4
|
|
|||||||||
Total
|
|
$
|
2,398.1
|
|
$
|
1,724.4
|
|
$
|
4,122.5
|
|
|
$
|
2,334.2
|
|
$
|
1,712.4
|
|
$
|
4,046.6
|
|
|
$
|
2,067.4
|
|
$
|
1,457.7
|
|
$
|
3,525.1
|
|
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
|
HPMC
|
FRP
|
Total
|
|
HPMC
|
FRP
|
Total
|
|
HPMC
|
FRP
|
Total
|
|||||||||
Diversified Products:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
High-Value Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Nickel-based alloys and specialty alloys
|
|
32
|
%
|
32
|
%
|
32
|
%
|
|
31
|
%
|
28
|
%
|
30
|
%
|
|
31
|
%
|
24
|
%
|
28
|
%
|
Precision forgings, castings and components
|
|
30
|
%
|
—
|
%
|
18
|
%
|
|
34
|
%
|
—
|
%
|
20
|
%
|
|
32
|
%
|
—
|
%
|
19
|
%
|
Titanium and titanium-based alloys
|
|
28
|
%
|
6
|
%
|
18
|
%
|
|
25
|
%
|
5
|
%
|
17
|
%
|
|
26
|
%
|
5
|
%
|
17
|
%
|
Precision and engineered strip
|
|
—
|
%
|
32
|
%
|
13
|
%
|
|
—
|
%
|
33
|
%
|
14
|
%
|
|
—
|
%
|
34
|
%
|
14
|
%
|
Zirconium and related alloys
|
|
10
|
%
|
—
|
%
|
6
|
%
|
|
10
|
%
|
—
|
%
|
5
|
%
|
|
11
|
%
|
—
|
%
|
6
|
%
|
Total High-Value Products
|
|
100
|
%
|
70
|
%
|
87
|
%
|
|
100
|
%
|
66
|
%
|
86
|
%
|
|
100
|
%
|
63
|
%
|
84
|
%
|
Standard Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Standard stainless products
|
|
—
|
%
|
30
|
%
|
13
|
%
|
|
—
|
%
|
34
|
%
|
14
|
%
|
|
—
|
%
|
37
|
%
|
16
|
%
|
Total
|
|
100
|
%
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
|
100
|
%
|
100
|
%
|
100
|
%
|
(in millions)
|
||||||
Contract Liabilities
|
||||||
Short-term
|
2019
|
2018
|
||||
Balance as of beginning of fiscal year
|
$
|
71.4
|
|
$
|
69.7
|
|
Recognized in current year
|
126.1
|
|
76.7
|
|
||
Amounts in beginning balance reclassified to revenue
|
(49.2
|
)
|
(49.6
|
)
|
||
Current year amounts reclassified to revenue
|
(76.0
|
)
|
(42.7
|
)
|
||
Other
|
1.9
|
|
2.7
|
|
||
Reclassification to/from long-term
|
4.5
|
|
14.6
|
|
||
Balance as of period end
|
$
|
78.7
|
|
$
|
71.4
|
|
|
|
|
||||
Long-term
|
2019
|
2018
|
||||
Balance as of beginning of fiscal year
|
$
|
7.3
|
|
$
|
22.2
|
|
Recognized in current year
|
24.2
|
|
0.7
|
|
||
Amounts in beginning balance reclassified to revenue
|
(1.1
|
)
|
(1.0
|
)
|
||
Current year amounts reclassified to revenue
|
—
|
|
—
|
|
||
Other
|
—
|
|
—
|
|
||
Reclassification to/from short-term
|
(4.5
|
)
|
(14.6
|
)
|
||
Balance as of period end
|
$
|
25.9
|
|
$
|
7.3
|
|
|
|
2019
|
|
2018
|
||||
Raw materials and supplies
|
|
$
|
164.9
|
|
|
$
|
191.5
|
|
Work-in-process
|
|
899.6
|
|
|
914.1
|
|
||
Finished goods
|
|
161.3
|
|
|
191.1
|
|
||
Total inventories at current cost
|
|
1,225.8
|
|
|
1,296.7
|
|
||
Adjustment from current cost to LIFO cost basis
|
|
33.6
|
|
|
2.9
|
|
||
Inventory valuation reserves
|
|
(104.1
|
)
|
|
(88.5
|
)
|
||
Total inventories, net
|
|
$
|
1,155.3
|
|
|
$
|
1,211.1
|
|
|
|
Fiscal year ended December 31,
|
||||||||
|
|
2019
|
2018
|
2017
|
||||||
LIFO benefit (charge)
|
|
$
|
25.5
|
|
$
|
(28.6
|
)
|
$
|
(54.2
|
)
|
NRV benefit (charge)
|
|
(25.6
|
)
|
27.9
|
|
54.0
|
|
|||
Net cost of sales impact
|
|
$
|
(0.1
|
)
|
$
|
(0.7
|
)
|
$
|
(0.2
|
)
|
(In millions)
|
|
2019
|
|
2018
|
||||
Land
|
|
$
|
34.6
|
|
|
$
|
31.5
|
|
Buildings
|
|
832.7
|
|
|
851.7
|
|
||
Equipment and leasehold improvements
|
|
3,671.3
|
|
|
3,622.7
|
|
||
|
|
4,538.6
|
|
|
4,505.9
|
|
||
Accumulated depreciation and amortization
|
|
(2,088.5
|
)
|
|
(2,030.9
|
)
|
||
Total property, plant and equipment, net
|
|
$
|
2,450.1
|
|
|
$
|
2,475.0
|
|
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Depreciation of property, plant and equipment
|
|
$
|
127.1
|
|
|
$
|
131.9
|
|
|
$
|
135.2
|
|
Software and other amortization
|
|
24.0
|
|
|
24.5
|
|
|
25.6
|
|
|||
Total depreciation and amortization
|
|
$
|
151.1
|
|
|
$
|
156.4
|
|
|
$
|
160.8
|
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
(in millions)
|
|
Gross
carrying
amount
|
|
Accumulated
amortization
|
|
Gross
carrying
amount
|
|
Accumulated
amortization
|
||||||||
Technology
|
|
$
|
76.8
|
|
|
$
|
(29.7
|
)
|
|
$
|
93.4
|
|
|
$
|
(31.9
|
)
|
Customer relationships
|
|
27.0
|
|
|
(9.3
|
)
|
|
35.7
|
|
|
(10.6
|
)
|
||||
Trademarks
|
|
52.4
|
|
|
(20.9
|
)
|
|
64.6
|
|
|
(21.5
|
)
|
||||
Total amortizable intangible assets
|
|
$
|
156.2
|
|
|
$
|
(59.9
|
)
|
|
$
|
193.7
|
|
|
$
|
(64.0
|
)
|
(In millions)
|
|
2019
|
|
2018
|
||||
Balance at beginning of year
|
|
$
|
23.1
|
|
|
$
|
23.5
|
|
Accretion expense
|
|
0.9
|
|
|
0.8
|
|
||
Payments
|
|
(0.3
|
)
|
|
(1.2
|
)
|
||
Balance at end of year
|
|
$
|
23.7
|
|
|
$
|
23.1
|
|
(In millions)
|
|
2019
|
|
2018
|
||||
Cash
|
|
$
|
190.8
|
|
|
$
|
264.4
|
|
Other short-term investments
|
|
300.0
|
|
|
117.6
|
|
||
Total cash and cash equivalents
|
|
$
|
490.8
|
|
|
$
|
382.0
|
|
(in millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Rent, royalty income and other income
|
|
$
|
2.9
|
|
|
$
|
3.1
|
|
|
$
|
3.5
|
|
Gains from disposal of property, plant and equipment, net
|
|
90.7
|
|
|
1.3
|
|
|
0.5
|
|
|||
Equity loss on joint ventures (See Note 7)
|
|
(10.7
|
)
|
|
(1.0
|
)
|
|
—
|
|
|||
Loss on sales of businesses, net (See Note 6)
|
|
(1.9
|
)
|
|
—
|
|
|
—
|
|
|||
Gain on joint venture deconsolidation (See Note 7)
|
|
—
|
|
|
15.9
|
|
|
—
|
|
|||
Joint venture impairment charge (See Note 7)
|
|
(11.4
|
)
|
|
—
|
|
|
—
|
|
|||
Other
|
|
0.1
|
|
|
1.2
|
|
|
—
|
|
|||
Total other income, net
|
|
$
|
69.7
|
|
|
$
|
20.5
|
|
|
$
|
4.0
|
|
(In millions)
|
|
2019
|
|
2018
|
||||
Allegheny Technologies $500 million 5.875% Senior Notes due 2023 (a)
|
|
$
|
500.0
|
|
|
$
|
500.0
|
|
Allegheny Technologies $500 million 5.95% Senior Notes due 2021
|
|
—
|
|
|
500.0
|
|
||
Allegheny Technologies $350 million 5.875% Senior Notes due 2027
|
|
350.0
|
|
|
—
|
|
||
Allegheny Technologies $287.5 million 4.75% Convertible Senior Notes due 2022
|
|
287.5
|
|
|
287.5
|
|
||
Allegheny Ludlum 6.95% Debentures due 2025
|
|
150.0
|
|
|
150.0
|
|
||
Term Loan due 2024
|
|
100.0
|
|
|
100.0
|
|
||
U.S. revolving credit facility
|
|
—
|
|
|
—
|
|
||
Foreign credit agreements
|
|
4.9
|
|
|
—
|
|
||
Finance leases and other
|
|
18.8
|
|
|
15.0
|
|
||
Debt issuance costs
|
|
(12.3
|
)
|
|
(10.4
|
)
|
||
Total short-term and long-term debt
|
|
1,398.9
|
|
|
1,542.1
|
|
||
Short-term debt and current portion of long-term debt
|
|
11.5
|
|
|
6.6
|
|
||
Total long-term debt
|
|
$
|
1,387.4
|
|
|
$
|
1,535.5
|
|
(a)
|
Bearing interest at 7.875% effective February 15, 2016.
|
($ in millions)
|
|
Fiscal year ended
|
||
|
|
December 31, 2019
|
||
Lease Cost
|
|
|
||
Finance Lease Cost:
|
|
|
||
Amortization of right of use asset
|
|
$
|
1.7
|
|
Interest on lease liabilities
|
|
0.5
|
|
|
Operating lease cost
|
|
20.5
|
|
|
Short-term lease cost
|
|
3.1
|
|
|
Variable lease cost
|
|
0.8
|
|
|
Sublease income
|
|
—
|
|
|
Total lease cost
|
|
$
|
26.6
|
|
|
|
|
||
Other information
|
|
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
|
|
||
Operating cash flows from finance leases
|
|
$
|
0.5
|
|
Operating cash flows from operating leases
|
|
$
|
20.8
|
|
Financing cash flows from finance leases
|
|
$
|
2.4
|
|
Right of use assets obtained in exchange for new finance lease liabilities
|
|
$
|
14.1
|
|
Right of use assets obtained in exchange for new operating lease liabilities (a)
|
|
$
|
35.9
|
|
Weighted average remaining lease term - finance leases
|
|
4 years
|
|
|
Weighted average remaining lease term - operating leases
|
|
6 years
|
|
|
Weighted average discount rate - finance leases
|
|
5.3
|
%
|
|
Weighted average discount rate - operating leases
|
|
7.0
|
%
|
|
|
December 31, 2019
|
||
2020
|
|
$
|
20.0
|
|
2021
|
|
18.2
|
|
|
2022
|
|
15.3
|
|
|
2023
|
|
11.7
|
|
|
2024
|
|
8.0
|
|
|
2025 and thereafter
|
|
24.6
|
|
|
Total undiscounted lease payments
|
|
$
|
97.8
|
|
Present value adjustment
|
|
(20.1
|
)
|
|
Operating lease liabilities
|
|
$
|
77.7
|
|
|
|
December 31, 2019
|
||
2020
|
|
$
|
4.5
|
|
2021
|
|
4.2
|
|
|
2022
|
|
3.9
|
|
|
2023
|
|
2.7
|
|
|
2024
|
|
0.7
|
|
|
2025 and thereafter
|
|
—
|
|
|
Total undiscounted lease payments
|
|
$
|
16.0
|
|
Present value adjustment
|
|
(1.5
|
)
|
|
Finance lease liabilities
|
|
$
|
14.5
|
|
(In millions)
|
|
|
|
December 31,
2019 |
|
December 31,
2018 |
||||
Asset derivatives
|
|
Balance sheet location
|
|
|
||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
||||
Natural gas contracts
|
|
Prepaid expenses and other current assets
|
|
$
|
—
|
|
|
$
|
0.8
|
|
Nickel and other raw material contracts
|
|
Prepaid expenses and other current assets
|
|
4.4
|
|
|
1.2
|
|
||
Natural gas contracts
|
|
Other assets
|
|
—
|
|
|
0.2
|
|
||
Nickel and other raw material contracts
|
|
Other assets
|
|
1.2
|
|
|
0.8
|
|
||
Total derivatives designated as hedging instruments
|
|
|
|
5.6
|
|
|
3.0
|
|
||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
||||
Foreign exchange contracts
|
|
Prepaid expenses and other current assets
|
|
—
|
|
|
0.4
|
|
||
Total derivatives not designated as hedging instruments:
|
|
—
|
|
|
0.4
|
|
||||
Total asset derivatives
|
|
|
|
$
|
5.6
|
|
|
$
|
3.4
|
|
|
|
|
|
|
|
|
||||
Liability derivatives
|
|
Balance sheet location
|
|
|
|
|
||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
||||
Interest rate swap
|
|
Other current liabilities
|
|
$
|
0.3
|
|
|
$
|
0.2
|
|
Foreign exchange contracts
|
|
Other current liabilities
|
|
—
|
|
|
0.6
|
|
||
Natural gas contracts
|
|
Other current liabilities
|
|
2.5
|
|
|
0.1
|
|
||
Nickel and other raw material contracts
|
|
Other current liabilities
|
|
2.5
|
|
|
6.8
|
|
||
Interest rate swap
|
|
Other long-term liabilities
|
|
1.2
|
|
|
0.3
|
|
||
Natural gas contracts
|
|
Other long-term liabilities
|
|
1.0
|
|
|
0.3
|
|
||
Nickel and other raw material contracts
|
|
Other long-term liabilities
|
|
—
|
|
|
2.1
|
|
||
Total derivatives designated as hedging instruments
|
|
|
|
7.5
|
|
|
10.4
|
|
||
Total liability derivatives
|
|
|
|
$
|
7.5
|
|
|
$
|
10.4
|
|
Derivatives in Cash Flow
Hedging Relationships
|
|
Amount of Gain (Loss)
Recognized in OCI on
Derivatives
|
|
Amount of Gain (Loss)
Reclassified from
Accumulated OCI
into Income (a)
|
||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|||||||||
Nickel and other raw material contracts
|
|
$
|
11.3
|
|
|
$
|
(6.4
|
)
|
|
$
|
3.9
|
|
|
$
|
7.7
|
|
Natural gas contracts
|
|
(4.0
|
)
|
|
1.5
|
|
|
(0.9
|
)
|
|
0.4
|
|
||||
Foreign exchange contracts
|
|
1.0
|
|
|
0.5
|
|
|
0.5
|
|
|
1.0
|
|
||||
Interest rate swap
|
|
(0.9
|
)
|
|
(0.5
|
)
|
|
(0.4
|
)
|
|
(0.2
|
)
|
||||
Total
|
|
$
|
7.4
|
|
|
$
|
(4.9
|
)
|
|
$
|
3.1
|
|
|
$
|
8.9
|
|
(a)
|
The gains (losses) reclassified from accumulated OCI into income related to the derivatives, with the exception of the interest rate swap, are presented in cost of sales in the same period or periods in which the hedged item affects earnings. The gains (losses) reclassified from accumulated OCI into income on the interest rate swap are presented in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings.
|
(In millions)
|
|
Amount of Gain (Loss) Recognized
in Income on Derivatives
|
||||||
Derivatives Not Designated as Hedging Instruments
|
|
2019
|
|
2018
|
||||
Foreign exchange contracts
|
|
$
|
0.1
|
|
|
$
|
0.3
|
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
(In millions)
|
|
Total
Carrying
Amount
|
|
Total
Estimated
Fair Value
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant
Observable
Inputs
(Level 2)
|
||||||||
Cash and cash equivalents
|
|
$
|
490.8
|
|
|
$
|
490.8
|
|
|
$
|
490.8
|
|
|
$
|
—
|
|
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
5.6
|
|
|
5.6
|
|
|
—
|
|
|
5.6
|
|
||||
Liabilities
|
|
7.5
|
|
|
7.5
|
|
|
—
|
|
|
7.5
|
|
||||
Debt (a)
|
|
1,411.2
|
|
|
1,676.5
|
|
|
1,552.8
|
|
|
123.7
|
|
|
|
|
|
Fair Value Measurements at Reporting Date Using
|
||||||||||||
(In millions)
|
|
Total
Carrying
Amount
|
|
Total
Estimated
Fair Value
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant
Observable
Inputs
(Level 2)
|
||||||||
Cash and cash equivalents
|
|
$
|
382.0
|
|
|
$
|
382.0
|
|
|
$
|
382.0
|
|
|
$
|
—
|
|
Derivative financial instruments:
|
|
|
|
|
|
|
|
|
||||||||
Assets
|
|
3.4
|
|
|
3.4
|
|
|
—
|
|
|
3.4
|
|
||||
Liabilities
|
|
10.4
|
|
|
10.4
|
|
|
—
|
|
|
10.4
|
|
||||
Debt (a)
|
|
1,552.5
|
|
|
1,739.4
|
|
|
1,624.4
|
|
|
115.0
|
|
(a)
|
The total carrying amount for debt excludes debt issuance costs related to the recognized debt liability which is presented in the consolidated balance sheet as a direct reduction from the carrying amount of the debt liability.
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||
Service cost—benefits earned during the year
|
|
$
|
12.7
|
|
|
$
|
16.4
|
|
|
$
|
14.1
|
|
|
$
|
1.9
|
|
|
$
|
2.5
|
|
|
$
|
2.4
|
|
Interest cost on benefits earned in prior years
|
|
105.5
|
|
|
104.8
|
|
|
116.7
|
|
|
14.8
|
|
|
12.7
|
|
|
14.6
|
|
||||||
Expected return on plan assets
|
|
(131.3
|
)
|
|
(157.9
|
)
|
|
(146.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Amortization of prior service cost (credit)
|
|
0.3
|
|
|
0.3
|
|
|
1.3
|
|
|
(2.9
|
)
|
|
(2.9
|
)
|
|
(2.9
|
)
|
||||||
Amortization of net actuarial loss
|
|
73.7
|
|
|
65.9
|
|
|
62.6
|
|
|
13.5
|
|
|
10.6
|
|
|
9.0
|
|
||||||
Curtailment loss
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total retirement benefit expense
|
|
$
|
60.9
|
|
|
$
|
29.9
|
|
|
$
|
47.8
|
|
|
$
|
27.3
|
|
|
$
|
22.9
|
|
|
$
|
23.1
|
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||||
|
|
2019
|
|
2018
|
|
2017
|
|
2019
|
|
2018
|
|
2017
|
||||||
Discount rate
|
|
4.40
|
%
|
|
3.85
|
%
|
|
4.45
|
%
|
|
4.35
|
%
|
|
3.80
|
%
|
|
4.35
|
%
|
Rate of increase in future compensation levels
|
|
0.50 - 1.00%
|
|
|
0.50 - 1.00%
|
|
|
0.50 - 1.00%
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Weighted average expected long-term rate of return on assets
|
|
7.52
|
%
|
|
7.75
|
%
|
|
7.75
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
4.0
|
%
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Discount rate
|
|
3.40
|
%
|
|
4.40
|
%
|
|
3.25
|
%
|
|
4.35
|
%
|
Rate of increase in future compensation levels
|
|
0.50 - 1.00%
|
|
|
0.50 - 1.00%
|
|
|
—
|
|
|
—
|
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Change in benefit obligations:
|
|
|
|
|
|
|
|
|
||||||||
Benefit obligation at beginning of year
|
|
$
|
2,497.7
|
|
|
$
|
2,829.8
|
|
|
$
|
359.1
|
|
|
$
|
349.9
|
|
Service cost
|
|
12.7
|
|
|
16.4
|
|
|
1.9
|
|
|
2.5
|
|
||||
Interest cost
|
|
105.5
|
|
|
104.8
|
|
|
14.8
|
|
|
12.7
|
|
||||
Benefits paid
|
|
(274.6
|
)
|
|
(294.5
|
)
|
|
(37.7
|
)
|
|
(36.5
|
)
|
||||
Subsidy paid
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Effect of currency rates
|
|
2.8
|
|
|
(4.5
|
)
|
|
—
|
|
|
—
|
|
||||
Net actuarial (gains) losses – discount rate change
|
|
266.0
|
|
|
(150.4
|
)
|
|
30.5
|
|
|
(17.8
|
)
|
||||
– other
|
|
14.3
|
|
|
(5.7
|
)
|
|
(18.1
|
)
|
|
48.3
|
|
||||
Plan curtailments
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
—
|
|
||||
Plan amendments
|
|
9.5
|
|
|
1.4
|
|
|
(5.2
|
)
|
|
—
|
|
||||
Benefit obligation at end of year
|
|
$
|
2,633.9
|
|
|
$
|
2,497.7
|
|
|
$
|
345.3
|
|
|
$
|
359.1
|
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Change in plan assets:
|
|
|
|
|
|
|
|
|
||||||||
Fair value of plan assets at beginning of year
|
|
$
|
1,772.2
|
|
|
$
|
2,129.6
|
|
|
$
|
0.1
|
|
|
$
|
0.6
|
|
Actual returns on plan assets and plan expenses
|
|
248.2
|
|
|
(107.2
|
)
|
|
—
|
|
|
(0.5
|
)
|
||||
Employer contributions
|
|
153.4
|
|
|
49.3
|
|
|
—
|
|
|
—
|
|
||||
Effect of currency rates
|
|
2.9
|
|
|
(5.0
|
)
|
|
—
|
|
|
—
|
|
||||
Benefits paid
|
|
(274.6
|
)
|
|
(294.5
|
)
|
|
—
|
|
|
—
|
|
||||
Fair value of plan assets at end of year
|
|
$
|
1,902.1
|
|
|
$
|
1,772.2
|
|
|
$
|
0.1
|
|
|
$
|
0.1
|
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Beginning of year accumulated other comprehensive loss
|
|
$
|
(1,470.3
|
)
|
|
$
|
(1,426.1
|
)
|
|
$
|
(107.0
|
)
|
|
$
|
(83.7
|
)
|
Amortization of net actuarial loss
|
|
73.7
|
|
|
65.9
|
|
|
13.5
|
|
|
10.6
|
|
||||
Amortization of prior service cost (credit)
|
|
0.3
|
|
|
0.3
|
|
|
(2.9
|
)
|
|
(2.9
|
)
|
||||
Remeasurements
|
|
(173.4
|
)
|
|
(110.4
|
)
|
|
(7.1
|
)
|
|
(31.0
|
)
|
||||
End of year accumulated other comprehensive loss
|
|
$
|
(1,569.7
|
)
|
|
$
|
(1,470.3
|
)
|
|
$
|
(103.5
|
)
|
|
$
|
(107.0
|
)
|
Net change in accumulated other comprehensive loss
|
|
$
|
(99.4
|
)
|
|
$
|
(44.2
|
)
|
|
$
|
3.5
|
|
|
$
|
(23.3
|
)
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
(In millions)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Prior service (cost) credit
|
|
$
|
(11.2
|
)
|
|
$
|
(2.1
|
)
|
|
$
|
11.0
|
|
|
$
|
8.8
|
|
Net actuarial loss
|
|
(1,558.5
|
)
|
|
(1,468.2
|
)
|
|
(114.5
|
)
|
|
(115.8
|
)
|
||||
Accumulated other comprehensive loss
|
|
(1,569.7
|
)
|
|
(1,470.3
|
)
|
|
(103.5
|
)
|
|
(107.0
|
)
|
||||
Deferred tax effect
|
|
555.7
|
|
|
536.2
|
|
|
34.4
|
|
|
35.3
|
|
||||
Accumulated other comprehensive loss, net of tax
|
|
$
|
(1,014.0
|
)
|
|
$
|
(934.1
|
)
|
|
$
|
(69.1
|
)
|
|
$
|
(71.7
|
)
|
(In millions)
|
|
Pension
Benefits
|
|
Other
Postretirement
Benefits
|
|
Total
|
||||||
Amortization of prior service cost (credit)
|
|
$
|
0.6
|
|
|
$
|
(3.8
|
)
|
|
$
|
(3.2
|
)
|
Amortization of net actuarial loss
|
|
74.5
|
|
|
10.8
|
|
|
85.3
|
|
|||
Amortization of accumulated other comprehensive loss
|
|
$
|
75.1
|
|
|
$
|
7.0
|
|
|
$
|
82.1
|
|
|
|
Pension Benefits
|
||||||
(In millions)
|
|
2019
|
|
2018
|
||||
Projected benefit obligation
|
|
$
|
2,538.9
|
|
|
$
|
2,420.8
|
|
Accumulated benefit obligation
|
|
$
|
2,526.1
|
|
|
$
|
2,405.6
|
|
Fair value of plan assets
|
|
$
|
1,802.4
|
|
|
$
|
1,686.1
|
|
(In millions)
|
|
Pension
Benefits
|
|
Other
Postretirement
Benefits
|
|
Medicare Part
D Subsidy
|
||||||
2020
|
|
$
|
174.7
|
|
|
$
|
32.8
|
|
|
$
|
0.3
|
|
2021
|
|
172.0
|
|
|
34.1
|
|
|
0.3
|
|
|||
2022
|
|
170.3
|
|
|
31.6
|
|
|
0.2
|
|
|||
2023
|
|
168.3
|
|
|
29.4
|
|
|
0.2
|
|
|||
2024
|
|
166.0
|
|
|
27.4
|
|
|
0.2
|
|
|||
2025- 2029
|
|
786.5
|
|
|
110.1
|
|
|
0.7
|
|
(In millions)
|
|
|
|
|
|
Quoted Prices in
Active Markets for
Identical Assets
|
|
Significant
Observable Inputs
|
|
Significant
Unobservable Inputs
|
||||||||||
Asset category
|
|
Total
|
|
NAV
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. equities
|
|
443.6
|
|
|
254.7
|
|
|
188.9
|
|
|
—
|
|
|
—
|
|
|||||
International equities
|
|
326.1
|
|
|
299.6
|
|
|
26.5
|
|
|
—
|
|
|
—
|
|
|||||
Debt securities and cash:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed income and cash equivalents
|
|
650.7
|
|
|
419.9
|
|
|
58.7
|
|
|
172.1
|
|
|
—
|
|
|||||
Floating rate
|
|
51.0
|
|
|
51.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Private equity
|
|
129.0
|
|
|
129.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Hedge funds
|
|
263.9
|
|
|
263.9
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate and other
|
|
37.8
|
|
|
37.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total assets
|
|
$
|
1,902.1
|
|
|
$
|
1,455.9
|
|
|
$
|
274.1
|
|
|
$
|
172.1
|
|
|
$
|
—
|
|
(In millions)
|
|
|
|
|
|
Quoted Prices in
Active Markets for
Identical Assets
|
|
Significant
Observable Inputs
|
|
Significant
Unobservable Inputs
|
||||||||||
Asset category
|
|
Total
|
|
NAV
|
|
(Level 1)
|
|
(Level 2)
|
|
(Level 3)
|
||||||||||
Equity securities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. equities
|
|
362.9
|
|
|
219.9
|
|
|
143.0
|
|
|
—
|
|
|
—
|
|
|||||
International equities
|
|
377.4
|
|
|
335.7
|
|
|
41.7
|
|
|
—
|
|
|
—
|
|
|||||
Debt securities and cash:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed income and cash equivalents
|
|
493.7
|
|
|
116.9
|
|
|
6.3
|
|
|
370.5
|
|
|
—
|
|
|||||
Floating rate
|
|
90.1
|
|
|
68.9
|
|
|
21.2
|
|
|
—
|
|
|
—
|
|
|||||
Private equity
|
|
137.1
|
|
|
137.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Hedge funds
|
|
258.3
|
|
|
258.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Real estate and other
|
|
52.7
|
|
|
52.7
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total assets
|
|
$
|
1,772.2
|
|
|
$
|
1,189.5
|
|
|
$
|
212.2
|
|
|
$
|
370.5
|
|
|
$
|
—
|
|
Asset category
|
|
Target asset allocation range
|
U.S. equity
|
|
18% - 40%
|
Global equity
|
|
10% - 30%
|
Debt securities and cash
|
|
15% - 40%
|
Private equity
|
|
0% - 15%
|
Hedge funds
|
|
10% - 20%
|
Real estate and other
|
|
0% - 10%
|
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.
|
|
|
|
|
Pension
Protection Act
Zone Status (1)
|
|
FIP / RP Status
Pending /
Implemented (2)
|
|
in millions
|
|
|
|
Expiration Dates
of Collective
Bargaining
Agreements
|
||||||||||||
|
|
EIN / Pension
Plan Number
|
|
|
|
Company Contributions
|
|
Surcharge
Imposed (3)
|
|
|||||||||||||||
Pension Fund
|
|
|
2019
|
|
2018
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
||||||||||
Steelworkers Western Independent Shops Pension Plan
|
|
90-0169564
/ 001
|
|
Green
|
|
Green
|
|
N/A
|
|
$
|
0.9
|
|
|
$
|
0.8
|
|
|
$
|
0.6
|
|
|
No
|
|
2/29/2020
|
Boilermakers-Blacksmiths National Pension Trust
|
|
48-6168020
/ 001
|
|
Red
|
|
Yellow
|
|
Yes
|
|
2.5
|
|
|
2.5
|
|
|
2.2
|
|
|
No
|
|
9/30/2026
|
|||
IAM National Pension Fund
|
|
51-6031295
/ 002
|
|
Red
|
|
Green
|
|
Yes
|
|
2.2
|
|
|
2.1
|
|
|
1.7
|
|
|
Yes
|
|
Various between 2021-2022 (4)
|
|||
Total contributions
|
|
|
|
|
|
|
|
|
|
$
|
5.6
|
|
|
$
|
5.4
|
|
|
$
|
4.5
|
|
|
|
|
|
(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 “red” zone had been determined to be in “critical status”, based on criteria established by the Internal Revenue Code (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. A 5% contribution surcharge has been imposed as of June 1, 2019 for the rest of 2019, increasing to a 10% surcharge rate beginning January 1, 2020 in addition to the contribution rate specified in the applicable collective bargaining agreements. The contribution surcharge 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 notification 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 has been 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.
|
(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” zone, is pending or has been implemented as of the end of the plan year that ended in 2019.
|
(3)
|
The “Surcharge Imposed” column indicates whether ATI’s contribution rate for 2019 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical 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 November 14, 2021 and July 14, 2022.
|
|
Post-
retirement
benefit plans
|
|
Currency
translation
adjustment
|
|
Derivatives
|
|
|
Deferred Tax Asset Valuation Allowance
|
|
Total
|
|||||||||
Attributable to ATI:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, December 31, 2016
|
$
|
(965.5
|
)
|
|
$
|
(85.0
|
)
|
|
$
|
2.4
|
|
|
$
|
(45.6
|
)
|
|
$
|
(1,093.7
|
)
|
OCI before reclassifications
|
|
(32.5
|
)
|
|
|
31.5
|
|
|
|
11.1
|
|
|
|
—
|
|
|
10.1
|
|
|
Amounts reclassified from AOCI
|
(a)
|
43.5
|
|
|
(b)
|
—
|
|
|
(c)
|
(4.5
|
)
|
|
(d)
|
16.8
|
|
|
55.8
|
|
|
Net current-period OCI
|
|
11.0
|
|
|
|
31.5
|
|
|
|
6.6
|
|
|
|
16.8
|
|
|
65.9
|
|
|
Balance, December 31, 2017
|
|
(954.5
|
)
|
|
|
(53.5
|
)
|
|
|
9.0
|
|
|
|
(28.8
|
)
|
|
(1,027.8
|
)
|
|
OCI before reclassifications
|
|
(107.2
|
)
|
|
|
(20.4
|
)
|
|
|
(4.9
|
)
|
|
|
—
|
|
|
(132.5
|
)
|
|
Amounts reclassified from AOCI
|
(a)
|
55.9
|
|
|
(b)
|
—
|
|
|
(c)
|
(8.9
|
)
|
|
(d)
|
(20.5
|
)
|
|
26.5
|
|
|
Net current-period OCI
|
|
(51.3
|
)
|
|
|
(20.4
|
)
|
|
|
(13.8
|
)
|
|
|
(20.5
|
)
|
|
(106.0
|
)
|
|
Balance, December 31, 2018
|
|
(1,005.8
|
)
|
|
|
(73.9
|
)
|
|
|
(4.8
|
)
|
|
|
(49.3
|
)
|
|
(1,133.8
|
)
|
|
OCI before reclassifications
|
|
(141.6
|
)
|
|
|
(2.7
|
)
|
|
|
7.4
|
|
|
|
—
|
|
|
(136.9
|
)
|
|
Amounts reclassified from AOCI
|
(a)
|
64.3
|
|
|
(b)
|
—
|
|
|
(c)
|
(3.1
|
)
|
|
(d)
|
7.8
|
|
|
69.0
|
|
|
Net current-period OCI
|
|
(77.3
|
)
|
|
|
(2.7
|
)
|
|
|
4.3
|
|
|
|
7.8
|
|
|
(67.9
|
)
|
|
Balance, December 31, 2019
|
$
|
(1,083.1
|
)
|
|
$
|
(76.6
|
)
|
|
$
|
(0.5
|
)
|
|
$
|
(41.5
|
)
|
|
$
|
(1,201.7
|
)
|
Attributable to noncontrolling interests:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Balance, December 31, 2016
|
$
|
—
|
|
|
$
|
9.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9.7
|
|
OCI before reclassifications
|
|
—
|
|
|
|
7.6
|
|
|
|
—
|
|
|
|
—
|
|
|
7.6
|
|
|
Amounts reclassified from AOCI
|
|
—
|
|
|
(b)
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
Net current-period OCI
|
|
—
|
|
|
|
7.6
|
|
|
|
—
|
|
|
|
—
|
|
|
7.6
|
|
|
Balance, December 31, 2017
|
|
—
|
|
|
|
17.3
|
|
|
|
—
|
|
|
|
—
|
|
|
17.3
|
|
|
OCI before reclassifications
|
|
—
|
|
|
|
(6.2
|
)
|
|
|
—
|
|
|
|
—
|
|
|
(6.2
|
)
|
|
Amounts reclassified from AOCI
|
|
—
|
|
|
(b)
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
Net current-period OCI
|
|
—
|
|
|
|
(6.2
|
)
|
|
|
—
|
|
|
|
—
|
|
|
(6.2
|
)
|
|
Balance, December 31, 2018
|
|
—
|
|
|
|
11.1
|
|
|
|
—
|
|
|
|
—
|
|
|
11.1
|
|
|
OCI before reclassifications
|
|
—
|
|
|
|
(1.3
|
)
|
|
|
—
|
|
|
|
—
|
|
|
(1.3
|
)
|
|
Amounts reclassified from AOCI
|
|
—
|
|
|
(b)
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
—
|
|
|
Net current-period OCI
|
|
—
|
|
|
|
(1.3
|
)
|
|
|
—
|
|
|
|
—
|
|
|
(1.3
|
)
|
|
Balance, December 31, 2019
|
$
|
—
|
|
|
$
|
9.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9.8
|
|
(a)
|
Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 14).
|
(b)
|
No amounts were reclassified to earnings.
|
(c)
|
For 2018, following the Company’s January 1, 2018 adoption of changes issued by the FASB related to accounting guidance for derivatives, amounts related to derivatives are included in cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 12). For 2017, amounts related to the effective portion of the derivatives were included in cost of goods sold in the period or periods the hedged item affects earnings, and amounts related to the ineffective portion of the derivatives were presented in selling and administrative expenses on the consolidated statements of operations (see Note 12).
|
(d)
|
Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates. The 2019 income tax provision includes $6.0 million of tax expense for the recognition of a stranded deferred tax balance arising from deferred tax valuation allowances that was associated with a cash flow hedge portfolio that fully settled in the fourth quarter of 2019.
|
|
|
Amount reclassified from AOCI (c)
|
|
|
|
||||||||||||
|
|
Fiscal year ended
|
|
|
|
||||||||||||
Details about AOCI Components
(In millions)
|
|
December 31, 2019
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
|
|
Affected line item in the
consolidated statement of operations
|
||||||
Postretirement benefit plans
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Prior service credit
|
|
$
|
2.6
|
|
|
(a)
|
|
$
|
2.6
|
|
(a)
|
$
|
1.6
|
|
(a)
|
|
|
Actuarial losses
|
|
(87.2
|
)
|
|
(a)
|
|
(76.5
|
)
|
(a)
|
(71.6
|
)
|
(a)
|
|
|
|||
|
|
(84.6
|
)
|
|
(c)
|
|
(73.9
|
)
|
(c)
|
(70.0
|
)
|
(c)
|
|
Total before tax
|
|||
|
|
(20.3
|
)
|
|
|
|
(18.0
|
)
|
|
(26.5
|
)
|
|
|
Tax benefit (d)
|
|||
|
|
$
|
(64.3
|
)
|
|
|
|
$
|
(55.9
|
)
|
|
$
|
(43.5
|
)
|
|
|
Net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Derivatives
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Nickel and other raw material contracts
|
|
$
|
5.1
|
|
|
(b)
|
|
$
|
10.2
|
|
(b)
|
$
|
(3.4
|
)
|
(b)
|
|
|
Natural gas contracts
|
|
(1.2
|
)
|
|
(b)
|
|
0.5
|
|
(b)
|
(5.3
|
)
|
(b)
|
|
|
|||
Foreign exchange contracts
|
|
0.7
|
|
|
(b)
|
|
1.3
|
|
(b)
|
15.9
|
|
(b)
|
|
|
|||
Interest rate swap
|
|
(0.5
|
)
|
|
(b)
|
|
(0.3
|
)
|
(b)
|
—
|
|
(b)
|
|
|
|||
|
|
4.1
|
|
|
(c)
|
|
11.7
|
|
(c)
|
7.2
|
|
(c)
|
|
Total before tax
|
|||
|
|
1.0
|
|
|
|
|
2.8
|
|
|
2.7
|
|
|
|
Tax provision (d)
|
|||
|
|
$
|
3.1
|
|
|
|
|
$
|
8.9
|
|
|
$
|
4.5
|
|
|
|
Net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
Amounts are included in nonoperating retirement benefit expense (see Note 14).
|
(b)
|
For 2018, following the Company’s January 1, 2018 adoption of changes issued by the FASB related to accounting guidance for derivatives, amounts related to derivatives, with the exception of the interest rate swap are included in cost of goods sold in the period or periods the hedged item affects earnings. Amounts related to the interest rate swap are included in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings (see Note 12). For 2017, amounts related to the effective portion of the derivatives were included in cost of goods sold in the period or periods the hedged item affects earnings, and amounts related to the ineffective portion of the derivatives were presented in selling and administrative expenses on the consolidated statements of operations (see Note 12).
|
(c)
|
For pretax items, positive amounts are income and negative amounts are expense in terms of the impact to net income. Tax effects are presented in conformity with ATI’s presentation in the consolidated statements of operations.
|
(d)
|
These amounts exclude the impact of any deferred tax asset valuation allowances, when applicable, including recognition of stranded balances (see Note 17 for further explanation).
|
(Shares in thousands, $ in millions)
|
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
|
Number of
shares/units
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Number of
shares/units
|
|
Weighted
Average Grant
Date Fair
Value
|
|
Number of
shares
|
|
Weighted
Average Grant
Date Fair
Value
|
|||||||||
Nonvested, beginning of year
|
|
1,055
|
|
|
$
|
28.3
|
|
|
1,320
|
|
|
$
|
32.5
|
|
|
1,852
|
|
|
$
|
51.5
|
|
Granted
|
|
396
|
|
|
10.8
|
|
|
290
|
|
|
7.8
|
|
|
378
|
|
|
7.1
|
|
|||
Vested
|
|
(681
|
)
|
|
(14.5
|
)
|
|
(540
|
)
|
|
(11.7
|
)
|
|
(591
|
)
|
|
(16.9
|
)
|
|||
Forfeited
|
|
(14
|
)
|
|
(0.4
|
)
|
|
(15
|
)
|
|
(0.3
|
)
|
|
(319
|
)
|
|
(9.2
|
)
|
|||
Nonvested, end of year
|
|
756
|
|
|
$
|
24.2
|
|
|
1,055
|
|
|
$
|
28.3
|
|
|
1,320
|
|
|
$
|
32.5
|
|
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
U.S.
|
|
$
|
190.2
|
|
|
$
|
190.8
|
|
|
$
|
(119.8
|
)
|
Non-U.S.
|
|
51.4
|
|
|
56.9
|
|
|
33.3
|
|
|||
Income (loss) before income taxes
|
|
$
|
241.6
|
|
|
$
|
247.7
|
|
|
$
|
(86.5
|
)
|
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Current:
|
|
|
|
|
|
|
||||||
Federal
|
|
$
|
2.2
|
|
|
$
|
1.0
|
|
|
$
|
(0.8
|
)
|
State
|
|
0.2
|
|
|
(0.8
|
)
|
|
(1.3
|
)
|
|||
Foreign
|
|
8.1
|
|
|
10.1
|
|
|
6.2
|
|
|||
Total
|
|
10.5
|
|
|
10.3
|
|
|
4.1
|
|
|||
Deferred:
|
|
|
|
|
|
|
||||||
Federal
|
|
(4.6
|
)
|
|
1.3
|
|
|
2.4
|
|
|||
State
|
|
(40.4
|
)
|
|
(0.5
|
)
|
|
(14.4
|
)
|
|||
Foreign
|
|
6.0
|
|
|
(0.1
|
)
|
|
1.1
|
|
|||
Total
|
|
(39.0
|
)
|
|
0.7
|
|
|
(10.9
|
)
|
|||
Income tax provision (benefit)
|
|
$
|
(28.5
|
)
|
|
$
|
11.0
|
|
|
$
|
(6.8
|
)
|
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Taxes computed at the federal rate
|
|
$
|
50.7
|
|
|
$
|
52.0
|
|
|
$
|
(30.3
|
)
|
Goodwill impairment
|
|
—
|
|
|
—
|
|
|
36.6
|
|
|||
State and local income taxes, net of federal tax benefit
|
|
0.3
|
|
|
(0.5
|
)
|
|
—
|
|
|||
Valuation allowance
|
|
(90.1
|
)
|
|
(48.0
|
)
|
|
(14.5
|
)
|
|||
Repatriation of foreign earnings (GILTI starting in 2018)
|
|
3.5
|
|
|
5.4
|
|
|
14.2
|
|
|||
Restructuring
|
|
4.2
|
|
|
—
|
|
|
—
|
|
|||
Impacts of U.S. Tax Act
|
|
—
|
|
|
5.9
|
|
|
(4.1
|
)
|
|||
Foreign earnings taxed at different rate
|
|
2.7
|
|
|
3.2
|
|
|
(3.5
|
)
|
|||
Adjustment to prior years’ taxes
|
|
—
|
|
|
(5.8
|
)
|
|
(5.2
|
)
|
|||
Withholding taxes
|
|
2.7
|
|
|
2.7
|
|
|
2.2
|
|
|||
Preferential tax rate
|
|
(4.1
|
)
|
|
(4.8
|
)
|
|
(3.7
|
)
|
|||
Other
|
|
1.6
|
|
|
0.9
|
|
|
1.5
|
|
|||
Income tax provision (benefit)
|
|
$
|
(28.5
|
)
|
|
$
|
11.0
|
|
|
$
|
(6.8
|
)
|
(In millions)
|
|
2019
|
|
2018
|
||||
Deferred income tax assets
|
|
|
|
|
||||
Pensions
|
|
$
|
155.5
|
|
|
$
|
159.4
|
|
Postretirement benefits other than pensions
|
|
83.8
|
|
|
87.3
|
|
||
Net operating loss tax carryovers
|
|
264.4
|
|
|
307.5
|
|
||
Tax credits
|
|
42.6
|
|
|
49.7
|
|
||
Other items
|
|
86.1
|
|
|
69.7
|
|
||
Gross deferred income tax assets
|
|
632.4
|
|
|
673.6
|
|
||
Valuation allowance for deferred tax assets
|
|
(94.5
|
)
|
|
(194.8
|
)
|
||
Total deferred income tax assets
|
|
537.9
|
|
|
478.8
|
|
||
Deferred income tax liabilities
|
|
|
|
|
||||
Bases of property, plant and equipment
|
|
364.2
|
|
|
371.5
|
|
||
Inventory valuation
|
|
65.5
|
|
|
67.1
|
|
||
Bases of amortizable intangible assets
|
|
23.7
|
|
|
29.9
|
|
||
Other items
|
|
27.0
|
|
|
14.5
|
|
||
Total deferred tax liabilities
|
|
480.4
|
|
|
483.0
|
|
||
Net deferred tax asset (liability)
|
|
$
|
57.5
|
|
|
$
|
(4.2
|
)
|
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Income taxes paid
|
|
$
|
15.1
|
|
|
$
|
9.7
|
|
|
$
|
10.4
|
|
Income tax refunds received
|
|
(9.2
|
)
|
|
(1.6
|
)
|
|
(7.1
|
)
|
|||
Income taxes paid, net
|
|
$
|
5.9
|
|
|
$
|
8.1
|
|
|
$
|
3.3
|
|
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance at beginning of year
|
|
$
|
14.7
|
|
|
$
|
14.7
|
|
|
$
|
22.7
|
|
Increases in prior period tax positions
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Decreases in prior period tax positions
|
|
—
|
|
|
(0.1
|
)
|
|
(0.7
|
)
|
|||
Increases in current period tax positions
|
|
0.9
|
|
|
0.7
|
|
|
0.7
|
|
|||
Expiration of the statute of limitations
|
|
(1.2
|
)
|
|
(0.6
|
)
|
|
(0.4
|
)
|
|||
Settlements
|
|
—
|
|
|
—
|
|
|
(7.6
|
)
|
|||
Balance at end of year
|
|
$
|
14.4
|
|
|
$
|
14.7
|
|
|
$
|
14.7
|
|
Jurisdiction
|
|
Earliest Year Open to
Examination |
U.S. Federal
|
|
2018
|
States:
|
|
|
Pennsylvania
|
|
2016
|
Foreign:
|
|
|
China
|
|
2016
|
Poland
|
|
2013
|
United Kingdom
|
|
2017
|
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Total sales:
|
|
|
|
|
|
|
||||||
High Performance Materials & Components
|
|
$
|
2,501.9
|
|
|
$
|
2,413.6
|
|
|
$
|
2,127.0
|
|
Flat Rolled Products
|
|
1,820.9
|
|
|
1,799.0
|
|
|
1,527.5
|
|
|||
Total sales
|
|
4,322.8
|
|
|
4,212.6
|
|
|
3,654.5
|
|
|||
Intersegment sales:
|
|
|
|
|
|
|
||||||
High Performance Materials & Components
|
|
103.8
|
|
|
79.4
|
|
|
59.6
|
|
|||
Flat Rolled Products
|
|
96.5
|
|
|
86.6
|
|
|
69.8
|
|
|||
Total intersegment sales
|
|
200.3
|
|
|
166.0
|
|
|
129.4
|
|
|||
Sales to external customers:
|
|
|
|
|
|
|
||||||
High Performance Materials & Components
|
|
2,398.1
|
|
|
2,334.2
|
|
|
2,067.4
|
|
|||
Flat Rolled Products
|
|
1,724.4
|
|
|
1,712.4
|
|
|
1,457.7
|
|
|||
Total sales to external customers
|
|
$
|
4,122.5
|
|
|
$
|
4,046.6
|
|
|
$
|
3,525.1
|
|
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Operating profit:
|
|
|
|
|
|
|
||||||
High Performance Materials & Components
|
|
$
|
343.1
|
|
|
$
|
335.4
|
|
|
$
|
246.4
|
|
Flat Rolled Products
|
|
37.6
|
|
|
77.8
|
|
|
37.0
|
|
|||
Total operating profit
|
|
380.7
|
|
|
413.2
|
|
|
283.4
|
|
|||
LIFO and net realizable value reserves (See Note 3)
|
|
(0.1
|
)
|
|
(0.7
|
)
|
|
(0.2
|
)
|
|||
Corporate expenses
|
|
(66.8
|
)
|
|
(58.1
|
)
|
|
(50.5
|
)
|
|||
Closed operations and other expenses
|
|
(25.5
|
)
|
|
(21.6
|
)
|
|
(34.0
|
)
|
|||
Restructuring and other charges
|
|
(4.5
|
)
|
|
—
|
|
|
—
|
|
|||
Impairment of goodwill (See Note 5)
|
|
—
|
|
|
—
|
|
|
(114.4
|
)
|
|||
Debt extinguishment charge (See Note 10)
|
|
(21.6
|
)
|
|
—
|
|
|
(37.0
|
)
|
|||
Gain on joint venture deconsolidation (See Note 7)
|
|
—
|
|
|
15.9
|
|
|
—
|
|
|||
Joint venture impairment charge (See Note 7)
|
|
(11.4
|
)
|
|
—
|
|
|
—
|
|
|||
Gain on asset sales, net
|
|
89.8
|
|
|
—
|
|
|
—
|
|
|||
Interest expense, net
|
|
(99.0
|
)
|
|
(101.0
|
)
|
|
(133.8
|
)
|
|||
Income (loss) before income taxes
|
|
$
|
241.6
|
|
|
$
|
247.7
|
|
|
$
|
(86.5
|
)
|
(In millions)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Depreciation and amortization:
|
|
|
|
|
|
|
||||||
High Performance Materials & Components
|
|
$
|
99.1
|
|
|
$
|
106.5
|
|
|
$
|
109.3
|
|
Flat Rolled Products
|
|
49.1
|
|
|
47.0
|
|
|
45.6
|
|
|||
Corporate
|
|
2.9
|
|
|
2.9
|
|
|
5.9
|
|
|||
Total depreciation and amortization
|
|
$
|
151.1
|
|
|
$
|
156.4
|
|
|
$
|
160.8
|
|
Capital expenditures:
|
|
|
|
|
|
|
||||||
High Performance Materials & Components
|
|
$
|
132.5
|
|
|
$
|
79.8
|
|
|
$
|
62.7
|
|
Flat Rolled Products
|
|
34.8
|
|
|
56.4
|
|
|
59.1
|
|
|||
Corporate
|
|
0.9
|
|
|
3.0
|
|
|
0.9
|
|
|||
Total capital expenditures
|
|
$
|
168.2
|
|
|
$
|
139.2
|
|
|
$
|
122.7
|
|
Identifiable assets:
|
|
2019
|
|
2018
|
|
2017
|
||||||
High Performance Materials & Components
|
|
$
|
2,689.9
|
|
|
$
|
2,765.4
|
|
|
$
|
2,662.3
|
|
Flat Rolled Products
|
|
2,255.8
|
|
|
2,225.7
|
|
|
2,218.4
|
|
|||
Discontinued Operations
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|||
Corporate:
|
|
|
|
|
|
|
||||||
Deferred Taxes
|
|
64.5
|
|
|
8.7
|
|
|
7.6
|
|
|||
Cash and cash equivalents and other
|
|
624.4
|
|
|
502.0
|
|
|
296.9
|
|
|||
Total assets
|
|
$
|
5,634.6
|
|
|
$
|
5,501.8
|
|
|
$
|
5,185.4
|
|
($ in millions)
|
|
2019
|
|
Percent
of total
|
|
2018
|
|
Percent
of total
|
|
2017
|
|
Percent
of total
|
|||||||||
Total assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
United States
|
|
$
|
4,956.4
|
|
|
88
|
%
|
|
$
|
4,859.1
|
|
|
88
|
%
|
|
$
|
4,547.7
|
|
|
88
|
%
|
China
|
|
288.1
|
|
|
5
|
%
|
|
287.3
|
|
|
5
|
%
|
|
276.0
|
|
|
5
|
%
|
|||
United Kingdom
|
|
141.3
|
|
|
3
|
%
|
|
136.7
|
|
|
3
|
%
|
|
122.7
|
|
|
2
|
%
|
|||
Other
|
|
248.8
|
|
|
4
|
%
|
|
218.7
|
|
|
4
|
%
|
|
239.0
|
|
|
5
|
%
|
|||
Total Assets
|
|
$
|
5,634.6
|
|
|
100
|
%
|
|
$
|
5,501.8
|
|
|
100
|
%
|
|
$
|
5,185.4
|
|
|
100
|
%
|
For the Years Ended December 31,
|
|
2019
|
|
2018
|
|
2017
|
||||||
Numerator:
|
|
|
|
|
|
|
||||||
Numerator for basic net income (loss) per common share -
|
|
|
|
|
|
|
||||||
Net income (loss) attributable to ATI
|
|
$
|
257.6
|
|
|
$
|
222.4
|
|
|
$
|
(91.9
|
)
|
Effect of dilutive securities:
|
|
|
|
|
|
|
||||||
4.75% Convertible Senior Notes due 2022
|
|
12.8
|
|
|
12.9
|
|
|
—
|
|
|||
Numerator for diluted net income (loss) per common share -
|
|
|
|
|
|
|
||||||
Net income (loss) attributable to ATI after assumed conversions
|
|
$
|
270.4
|
|
|
$
|
235.3
|
|
|
$
|
(91.9
|
)
|
Denominator:
|
|
|
|
|
|
|
||||||
Denominator for basic net income (loss) per common share—weighted average shares
|
|
125.8
|
|
|
125.2
|
|
|
110.1
|
|
|||
Effect of dilutive securities:
|
|
|
|
|
|
|
||||||
Share-based compensation
|
|
0.8
|
|
|
0.8
|
|
|
—
|
|
|||
4.75% Convertible Senior Notes due 2022
|
|
19.9
|
|
|
19.9
|
|
|
—
|
|
|||
Denominator for diluted net income (loss) per common share—adjusted weighted average shares and assumed conversions
|
|
146.5
|
|
|
145.9
|
|
|
110.1
|
|
|||
Basic net income (loss) attributable to ATI per common share
|
|
$
|
2.05
|
|
|
$
|
1.78
|
|
|
$
|
(0.83
|
)
|
Diluted net income (loss) attributable to ATI per common share
|
|
$
|
1.85
|
|
|
$
|
1.61
|
|
|
$
|
(0.83
|
)
|
(In millions)
|
|
Guarantor
Parent
|
|
Subsidiary
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
0.3
|
|
|
$
|
4.2
|
|
|
$
|
486.3
|
|
|
$
|
—
|
|
|
$
|
490.8
|
|
Accounts receivable, net
|
|
—
|
|
|
123.7
|
|
|
430.4
|
|
|
—
|
|
|
554.1
|
|
|||||
Intercompany notes receivable
|
|
—
|
|
|
—
|
|
|
4,402.8
|
|
|
(4,402.8
|
)
|
|
—
|
|
|||||
Short-term contract assets
|
|
—
|
|
|
—
|
|
|
38.5
|
|
|
—
|
|
|
38.5
|
|
|||||
Inventories, net
|
|
—
|
|
|
213.0
|
|
|
942.3
|
|
|
—
|
|
|
1,155.3
|
|
|||||
Prepaid expenses and other current assets
|
|
5.6
|
|
|
18.5
|
|
|
40.2
|
|
|
—
|
|
|
64.3
|
|
|||||
Total current assets
|
|
5.9
|
|
|
359.4
|
|
|
6,340.5
|
|
|
(4,402.8
|
)
|
|
2,303.0
|
|
|||||
Property, plant and equipment, net
|
|
6.5
|
|
|
1,539.3
|
|
|
904.3
|
|
|
—
|
|
|
2,450.1
|
|
|||||
Goodwill
|
|
—
|
|
|
—
|
|
|
525.8
|
|
|
—
|
|
|
525.8
|
|
|||||
Intercompany notes receivable
|
|
—
|
|
|
—
|
|
|
200.0
|
|
|
(200.0
|
)
|
|
—
|
|
|||||
Investments in subsidiaries
|
|
6,434.3
|
|
|
37.7
|
|
|
—
|
|
|
(6,472.0
|
)
|
|
—
|
|
|||||
Other assets
|
|
98.3
|
|
|
83.1
|
|
|
174.3
|
|
|
—
|
|
|
355.7
|
|
|||||
Total assets
|
|
$
|
6,545.0
|
|
|
$
|
2,019.5
|
|
|
$
|
8,144.9
|
|
|
$
|
(11,074.8
|
)
|
|
$
|
5,634.6
|
|
Liabilities and stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
|
$
|
4.6
|
|
|
$
|
184.0
|
|
|
$
|
332.6
|
|
|
$
|
—
|
|
|
$
|
521.2
|
|
Intercompany notes payable
|
|
2,457.1
|
|
|
1,945.7
|
|
|
—
|
|
|
(4,402.8
|
)
|
|
—
|
|
|||||
Short-term contract liabilities
|
|
—
|
|
|
26.4
|
|
|
52.3
|
|
|
—
|
|
|
78.7
|
|
|||||
Short-term debt and current portion of long-term debt
|
|
1.4
|
|
|
0.2
|
|
|
9.9
|
|
|
—
|
|
|
11.5
|
|
|||||
Other current liabilities
|
|
51.5
|
|
|
68.1
|
|
|
118.2
|
|
|
—
|
|
|
237.8
|
|
|||||
Total current liabilities
|
|
2,514.6
|
|
|
2,224.4
|
|
|
513.0
|
|
|
(4,402.8
|
)
|
|
849.2
|
|
|||||
Long-term debt
|
|
1,130.1
|
|
|
150.4
|
|
|
106.9
|
|
|
—
|
|
|
1,387.4
|
|
|||||
Intercompany notes payable
|
|
—
|
|
|
200.0
|
|
|
—
|
|
|
(200.0
|
)
|
|
—
|
|
|||||
Accrued postretirement benefits
|
|
—
|
|
|
261.2
|
|
|
51.3
|
|
|
—
|
|
|
312.5
|
|
|||||
Pension liabilities
|
|
678.8
|
|
|
3.8
|
|
|
48.9
|
|
|
—
|
|
|
731.5
|
|
|||||
Other long-term liabilities
|
|
28.3
|
|
|
44.1
|
|
|
88.4
|
|
|
—
|
|
|
160.8
|
|
|||||
Total liabilities
|
|
4,351.8
|
|
|
2,883.9
|
|
|
808.5
|
|
|
(4,602.8
|
)
|
|
3,441.4
|
|
|||||
Total stockholders’ equity (deficit)
|
|
2,193.2
|
|
|
(864.4
|
)
|
|
7,336.4
|
|
|
(6,472.0
|
)
|
|
2,193.2
|
|
|||||
Total liabilities and stockholders’ equity
|
|
$
|
6,545.0
|
|
|
$
|
2,019.5
|
|
|
$
|
8,144.9
|
|
|
$
|
(11,074.8
|
)
|
|
$
|
5,634.6
|
|
(In millions)
|
|
Guarantor
Parent
|
|
Subsidiary
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Sales
|
|
$
|
—
|
|
|
$
|
1,429.0
|
|
|
$
|
2,693.5
|
|
|
$
|
—
|
|
|
$
|
4,122.5
|
|
Cost of sales
|
|
13.5
|
|
|
1,302.8
|
|
|
2,168.4
|
|
|
—
|
|
|
3,484.7
|
|
|||||
Gross profit (loss)
|
|
(13.5
|
)
|
|
126.2
|
|
|
525.1
|
|
|
—
|
|
|
637.8
|
|
|||||
Selling and administrative expenses
|
|
116.5
|
|
|
33.2
|
|
|
117.5
|
|
|
—
|
|
|
267.2
|
|
|||||
Restructuring charges
|
|
4.5
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4.5
|
|
|||||
Operating income (loss)
|
|
(134.5
|
)
|
|
93.0
|
|
|
407.6
|
|
|
—
|
|
|
366.1
|
|
|||||
Nonoperating retirement benefit expense
|
|
(47.5
|
)
|
|
(24.7
|
)
|
|
(1.4
|
)
|
|
—
|
|
|
(73.6
|
)
|
|||||
Interest income (expense), net
|
|
(148.2
|
)
|
|
(131.6
|
)
|
|
180.8
|
|
|
—
|
|
|
(99.0
|
)
|
|||||
Debt extinguishment charge
|
|
(21.6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(21.6
|
)
|
|||||
Other income (expense) including equity in income of unconsolidated subsidiaries
|
|
593.4
|
|
|
(22.0
|
)
|
|
90.2
|
|
|
(591.9
|
)
|
|
69.7
|
|
|||||
Income (loss) before income taxes
|
|
241.6
|
|
|
(85.3
|
)
|
|
677.2
|
|
|
(591.9
|
)
|
|
241.6
|
|
|||||
Income tax provision (benefit)
|
|
(28.5
|
)
|
|
(18.3
|
)
|
|
115.6
|
|
|
(97.3
|
)
|
|
(28.5
|
)
|
|||||
Net income (loss)
|
|
270.1
|
|
|
(67.0
|
)
|
|
561.6
|
|
|
(494.6
|
)
|
|
270.1
|
|
|||||
Less: Net income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
12.5
|
|
|
—
|
|
|
12.5
|
|
|||||
Net income (loss) attributable to ATI
|
|
$
|
270.1
|
|
|
$
|
(67.0
|
)
|
|
$
|
549.1
|
|
|
$
|
(494.6
|
)
|
|
$
|
257.6
|
|
(In millions)
|
|
Guarantor
Parent
|
|
Subsidiary
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income (loss)
|
|
$
|
270.1
|
|
|
$
|
(67.0
|
)
|
|
$
|
561.6
|
|
|
$
|
(494.6
|
)
|
|
$
|
270.1
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currency translation adjustment arising during the period
|
|
(4.0
|
)
|
|
—
|
|
|
(4.0
|
)
|
|
4.0
|
|
|
(4.0
|
)
|
|||||
Net derivative gain on hedge transactions
|
|
10.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10.3
|
|
|||||
Pension and postretirement benefits
|
|
(75.5
|
)
|
|
3.8
|
|
|
(15.2
|
)
|
|
11.4
|
|
|
(75.5
|
)
|
|||||
Other comprehensive income (loss), net of tax
|
|
(69.2
|
)
|
|
3.8
|
|
|
(19.2
|
)
|
|
15.4
|
|
|
(69.2
|
)
|
|||||
Comprehensive income (loss)
|
|
200.9
|
|
|
(63.2
|
)
|
|
542.4
|
|
|
(479.2
|
)
|
|
200.9
|
|
|||||
Less: Comprehensive income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
11.2
|
|
|
—
|
|
|
11.2
|
|
|||||
Comprehensive income (loss) attributable to ATI
|
|
$
|
200.9
|
|
|
$
|
(63.2
|
)
|
|
$
|
531.2
|
|
|
$
|
(479.2
|
)
|
|
$
|
189.7
|
|
(In millions)
|
|
Guarantor
Parent
|
|
Subsidiary
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows provided by (used in) operating activities
|
|
$
|
16.1
|
|
|
$
|
(109.1
|
)
|
|
$
|
344.1
|
|
|
$
|
(21.0
|
)
|
|
$
|
230.1
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of property, plant and equipment
|
|
(0.7
|
)
|
|
(33.4
|
)
|
|
(134.1
|
)
|
|
—
|
|
|
(168.2
|
)
|
|||||
Net receipts (payments) on intercompany activity
|
|
—
|
|
|
—
|
|
|
(308.0
|
)
|
|
308.0
|
|
|
—
|
|
|||||
Proceeds from disposals of property, plant and equipment
|
|
—
|
|
|
0.1
|
|
|
91.9
|
|
|
—
|
|
|
92.0
|
|
|||||
Proceeds from sales of businesses, net of transaction costs
|
|
—
|
|
|
—
|
|
|
158.1
|
|
|
—
|
|
|
158.1
|
|
|||||
Other
|
|
(0.2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.2
|
)
|
|||||
Cash flows provided by (used in) investing activities
|
|
(0.9
|
)
|
|
(33.3
|
)
|
|
(192.1
|
)
|
|
308.0
|
|
|
81.7
|
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings on long-term debt
|
|
350.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
350.0
|
|
|||||
Payments on long-term debt and finance leases
|
|
(500.7
|
)
|
|
(0.2
|
)
|
|
(6.7
|
)
|
|
—
|
|
|
(507.6
|
)
|
|||||
Net borrowings under credit facilities
|
|
—
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
|
4.9
|
|
|||||
Debt issuance costs
|
|
(5.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5.5
|
)
|
|||||
Debt extinguishment charge
|
|
(20.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20.9
|
)
|
|||||
Net receipts (payments) on intercompany activity
|
|
172.0
|
|
|
136.0
|
|
|
—
|
|
|
(308.0
|
)
|
|
—
|
|
|||||
Dividends paid to stockholders
|
|
—
|
|
|
—
|
|
|
(21.0
|
)
|
|
21.0
|
|
|
—
|
|
|||||
Dividends paid to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(14.0
|
)
|
|
—
|
|
|
(14.0
|
)
|
|||||
Shares repurchased for income tax withholding on share-based compensation and other
|
|
(9.9
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9.9
|
)
|
|||||
Cash flows provided by (used in) financing activities
|
|
(15.0
|
)
|
|
135.8
|
|
|
(36.8
|
)
|
|
(287.0
|
)
|
|
(203.0
|
)
|
|||||
Increase (decrease) in cash and cash equivalents
|
|
$
|
0.2
|
|
|
$
|
(6.6
|
)
|
|
$
|
115.2
|
|
|
$
|
—
|
|
|
$
|
108.8
|
|
(In millions)
|
|
Guarantor
Parent
|
|
Subsidiary
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
0.1
|
|
|
$
|
10.8
|
|
|
$
|
371.1
|
|
|
$
|
—
|
|
|
$
|
382.0
|
|
Accounts receivable, net
|
|
—
|
|
|
126.3
|
|
|
401.5
|
|
|
—
|
|
|
527.8
|
|
|||||
Intercompany notes receivable
|
|
—
|
|
|
—
|
|
|
3,968.8
|
|
|
(3,968.8
|
)
|
|
—
|
|
|||||
Short-term contract assets
|
|
—
|
|
|
—
|
|
|
51.2
|
|
|
—
|
|
|
51.2
|
|
|||||
Inventories, net
|
|
—
|
|
|
216.1
|
|
|
995.0
|
|
|
—
|
|
|
1,211.1
|
|
|||||
Prepaid expenses and other current assets
|
|
12.9
|
|
|
29.3
|
|
|
32.4
|
|
|
—
|
|
|
74.6
|
|
|||||
Total current assets
|
|
13.0
|
|
|
382.5
|
|
|
5,820.0
|
|
|
(3,968.8
|
)
|
|
2,246.7
|
|
|||||
Property, plant and equipment, net
|
|
1.7
|
|
|
1,548.4
|
|
|
924.9
|
|
|
—
|
|
|
2,475.0
|
|
|||||
Goodwill
|
|
—
|
|
|
—
|
|
|
534.7
|
|
|
—
|
|
|
534.7
|
|
|||||
Intercompany notes receivable
|
|
—
|
|
|
—
|
|
|
200.0
|
|
|
(200.0
|
)
|
|
—
|
|
|||||
Investments in subsidiaries
|
|
6,096.4
|
|
|
37.7
|
|
|
—
|
|
|
(6,134.1
|
)
|
|
—
|
|
|||||
Other assets
|
|
35.6
|
|
|
30.7
|
|
|
179.1
|
|
|
—
|
|
|
245.4
|
|
|||||
Total assets
|
|
$
|
6,146.7
|
|
|
$
|
1,999.3
|
|
|
$
|
7,658.7
|
|
|
$
|
(10,302.9
|
)
|
|
$
|
5,501.8
|
|
Liabilities and stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
|
$
|
3.3
|
|
|
$
|
177.5
|
|
|
$
|
318.0
|
|
|
$
|
—
|
|
|
$
|
498.8
|
|
Intercompany notes payable
|
|
2,102.8
|
|
|
1,866.0
|
|
|
—
|
|
|
(3,968.8
|
)
|
|
—
|
|
|||||
Short-term contract liabilities
|
|
—
|
|
|
33.0
|
|
|
38.4
|
|
|
—
|
|
|
71.4
|
|
|||||
Short-term debt and current portion of long-term debt
|
|
0.2
|
|
|
0.7
|
|
|
5.7
|
|
|
—
|
|
|
6.6
|
|
|||||
Other current liabilities
|
|
59.1
|
|
|
71.7
|
|
|
129.3
|
|
|
—
|
|
|
260.1
|
|
|||||
Total current liabilities
|
|
2,165.4
|
|
|
2,148.9
|
|
|
491.4
|
|
|
(3,968.8
|
)
|
|
836.9
|
|
|||||
Long-term debt
|
|
1,278.8
|
|
|
151.8
|
|
|
104.9
|
|
|
—
|
|
|
1,535.5
|
|
|||||
Intercompany notes payable
|
|
—
|
|
|
200.0
|
|
|
—
|
|
|
(200.0
|
)
|
|
—
|
|
|||||
Accrued postretirement benefits
|
|
—
|
|
|
259.2
|
|
|
59.2
|
|
|
—
|
|
|
318.4
|
|
|||||
Pension liabilities
|
|
681.6
|
|
|
4.0
|
|
|
44.4
|
|
|
—
|
|
|
730.0
|
|
|||||
Other long-term liabilities
|
|
29.3
|
|
|
17.6
|
|
|
42.5
|
|
|
—
|
|
|
89.4
|
|
|||||
Total liabilities
|
|
4,155.1
|
|
|
2,781.5
|
|
|
742.4
|
|
|
(4,168.8
|
)
|
|
3,510.2
|
|
|||||
Total stockholders’ equity (deficit)
|
|
1,991.6
|
|
|
(782.2
|
)
|
|
6,916.3
|
|
|
(6,134.1
|
)
|
|
1,991.6
|
|
|||||
Total liabilities and stockholders’ equity
|
|
$
|
6,146.7
|
|
|
$
|
1,999.3
|
|
|
$
|
7,658.7
|
|
|
$
|
(10,302.9
|
)
|
|
$
|
5,501.8
|
|
(In millions)
|
|
Guarantor
Parent
|
|
Subsidiary
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Sales
|
|
$
|
—
|
|
|
$
|
1,410.3
|
|
|
$
|
2,636.3
|
|
|
$
|
—
|
|
|
$
|
4,046.6
|
|
Cost of sales
|
|
16.6
|
|
|
1,302.4
|
|
|
2,097.3
|
|
|
—
|
|
|
3,416.3
|
|
|||||
Gross profit (loss)
|
|
(16.6
|
)
|
|
107.9
|
|
|
539.0
|
|
|
—
|
|
|
630.3
|
|
|||||
Selling and administrative expenses
|
|
101.7
|
|
|
34.2
|
|
|
132.3
|
|
|
—
|
|
|
268.2
|
|
|||||
Operating income (loss)
|
|
(118.3
|
)
|
|
73.7
|
|
|
406.7
|
|
|
—
|
|
|
362.1
|
|
|||||
Nonoperating retirement benefit expense
|
|
(12.7
|
)
|
|
(19.5
|
)
|
|
(1.7
|
)
|
|
—
|
|
|
(33.9
|
)
|
|||||
Interest income (expense), net
|
|
(138.8
|
)
|
|
(114.6
|
)
|
|
152.4
|
|
|
—
|
|
|
(101.0
|
)
|
|||||
Other income (expense) including equity in income of unconsolidated subsidiaries
|
|
517.5
|
|
|
16.8
|
|
|
0.8
|
|
|
(514.6
|
)
|
|
20.5
|
|
|||||
Income (loss) before income taxes
|
|
247.7
|
|
|
(43.6
|
)
|
|
558.2
|
|
|
(514.6
|
)
|
|
247.7
|
|
|||||
Income tax provision (benefit)
|
|
11.0
|
|
|
(8.7
|
)
|
|
83.9
|
|
|
(75.2
|
)
|
|
11.0
|
|
|||||
Net income (loss)
|
|
236.7
|
|
|
(34.9
|
)
|
|
474.3
|
|
|
(439.4
|
)
|
|
236.7
|
|
|||||
Less: Net income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
14.3
|
|
|
—
|
|
|
14.3
|
|
|||||
Net income (loss) attributable to ATI
|
|
$
|
236.7
|
|
|
$
|
(34.9
|
)
|
|
$
|
460.0
|
|
|
$
|
(439.4
|
)
|
|
$
|
222.4
|
|
(In millions)
|
|
Guarantor
Parent
|
|
Subsidiary
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income (loss)
|
|
$
|
236.7
|
|
|
$
|
(34.9
|
)
|
|
$
|
474.3
|
|
|
$
|
(439.4
|
)
|
|
$
|
236.7
|
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currency translation adjustment arising during the period
|
|
(26.6
|
)
|
|
—
|
|
|
(26.6
|
)
|
|
26.6
|
|
|
(26.6
|
)
|
|||||
Net derivative loss on hedge transactions
|
|
(18.1
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(18.1
|
)
|
|||||
Pension and postretirement benefits
|
|
(67.5
|
)
|
|
(19.1
|
)
|
|
0.7
|
|
|
18.4
|
|
|
(67.5
|
)
|
|||||
Other comprehensive income (loss), net of tax
|
|
(112.2
|
)
|
|
(19.1
|
)
|
|
(25.9
|
)
|
|
45.0
|
|
|
(112.2
|
)
|
|||||
Comprehensive income (loss)
|
|
124.5
|
|
|
(54.0
|
)
|
|
448.4
|
|
|
(394.4
|
)
|
|
124.5
|
|
|||||
Less: Comprehensive income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
8.1
|
|
|
—
|
|
|
8.1
|
|
|||||
Comprehensive income (loss) attributable to ATI
|
|
$
|
124.5
|
|
|
$
|
(54.0
|
)
|
|
$
|
440.3
|
|
|
$
|
(394.4
|
)
|
|
$
|
116.4
|
|
(In millions)
|
|
Guarantor
Parent
|
|
Subsidiary
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows provided by (used in) operating activities
|
|
$
|
(107.0
|
)
|
|
$
|
(223.9
|
)
|
|
$
|
738.7
|
|
|
$
|
(15.0
|
)
|
|
$
|
392.8
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of property, plant and equipment
|
|
(2.1
|
)
|
|
(26.2
|
)
|
|
(110.9
|
)
|
|
—
|
|
|
(139.2
|
)
|
|||||
Net receipts (payments) on intercompany activity
|
|
—
|
|
|
—
|
|
|
(346.5
|
)
|
|
346.5
|
|
|
—
|
|
|||||
Proceeds from disposal of property, plant and equipment
|
|
—
|
|
|
2.6
|
|
|
0.2
|
|
|
—
|
|
|
2.8
|
|
|||||
Purchases of businesses
|
|
—
|
|
|
—
|
|
|
(10.0
|
)
|
|
—
|
|
|
(10.0
|
)
|
|||||
Other
|
|
1.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.3
|
|
|||||
Cash flows provided by (used in) investing activities
|
|
(0.8
|
)
|
|
(23.6
|
)
|
|
(467.2
|
)
|
|
346.5
|
|
|
(145.1
|
)
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings on long-term debt
|
|
—
|
|
|
—
|
|
|
7.1
|
|
|
—
|
|
|
7.1
|
|
|||||
Payments on long-term debt and finance leases
|
|
(0.2
|
)
|
|
(0.9
|
)
|
|
(5.3
|
)
|
|
—
|
|
|
(6.4
|
)
|
|||||
Net payments under credit facilities
|
|
—
|
|
|
—
|
|
|
(5.9
|
)
|
|
—
|
|
|
(5.9
|
)
|
|||||
Net receipts (payments) on intercompany activity
|
|
112.5
|
|
|
234.0
|
|
|
—
|
|
|
(346.5
|
)
|
|
—
|
|
|||||
Dividends paid to stockholders
|
|
—
|
|
|
—
|
|
|
(15.0
|
)
|
|
15.0
|
|
|
—
|
|
|||||
Dividends paid to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(10.0
|
)
|
|
—
|
|
|
(10.0
|
)
|
|||||
Sale of noncontrolling interests
|
|
—
|
|
|
11.7
|
|
|
2.7
|
|
|
—
|
|
|
14.4
|
|
|||||
Shares repurchased for income tax withholding on share-based compensation and other
|
|
(6.5
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6.5
|
)
|
|||||
Cash flows provided by (used in) financing activities
|
|
105.8
|
|
|
244.8
|
|
|
(26.4
|
)
|
|
(331.5
|
)
|
|
(7.3
|
)
|
|||||
Increase (decrease) in cash and cash equivalents
|
|
$
|
(2.0
|
)
|
|
$
|
(2.7
|
)
|
|
$
|
245.1
|
|
|
$
|
—
|
|
|
$
|
240.4
|
|
(In millions)
|
|
Guarantor
Parent
|
|
Subsidiary
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Sales
|
|
$
|
—
|
|
|
$
|
1,178.9
|
|
|
$
|
2,346.2
|
|
|
$
|
—
|
|
|
$
|
3,525.1
|
|
Cost of sales
|
|
14.6
|
|
|
1,085.5
|
|
|
1,928.0
|
|
|
—
|
|
|
3,028.1
|
|
|||||
Gross profit (loss)
|
|
(14.6
|
)
|
|
93.4
|
|
|
418.2
|
|
|
—
|
|
|
497.0
|
|
|||||
Selling and administrative expenses
|
|
86.6
|
|
|
36.9
|
|
|
124.5
|
|
|
—
|
|
|
248.0
|
|
|||||
Impairment of goodwill
|
|
—
|
|
|
—
|
|
|
114.4
|
|
|
—
|
|
|
114.4
|
|
|||||
Operating income (loss)
|
|
(101.2
|
)
|
|
56.5
|
|
|
179.3
|
|
|
—
|
|
|
134.6
|
|
|||||
Nonoperating retirement benefit expense
|
|
(32.2
|
)
|
|
(18.7
|
)
|
|
(3.4
|
)
|
|
—
|
|
|
(54.3
|
)
|
|||||
Interest income (expense), net
|
|
(155.8
|
)
|
|
(90.0
|
)
|
|
112.0
|
|
|
—
|
|
|
(133.8
|
)
|
|||||
Debt extinguishment charge
|
|
(37.0
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(37.0
|
)
|
|||||
Other income (expense) including equity in income of unconsolidated subsidiaries
|
|
239.7
|
|
|
1.6
|
|
|
2.4
|
|
|
(239.7
|
)
|
|
4.0
|
|
|||||
Income (loss) before income taxes
|
|
(86.5
|
)
|
|
(50.6
|
)
|
|
290.3
|
|
|
(239.7
|
)
|
|
(86.5
|
)
|
|||||
Income tax provision (benefit)
|
|
(6.8
|
)
|
|
(16.6
|
)
|
|
131.4
|
|
|
(114.8
|
)
|
|
(6.8
|
)
|
|||||
Net income (loss)
|
|
(79.7
|
)
|
|
(34.0
|
)
|
|
158.9
|
|
|
(124.9
|
)
|
|
(79.7
|
)
|
|||||
Less: Net income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
12.2
|
|
|
—
|
|
|
12.2
|
|
|||||
Net income (loss) attributable to ATI
|
|
$
|
(79.7
|
)
|
|
$
|
(34.0
|
)
|
|
$
|
146.7
|
|
|
$
|
(124.9
|
)
|
|
$
|
(91.9
|
)
|
(In millions)
|
|
Guarantor
Parent
|
|
Subsidiary
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income (loss)
|
|
$
|
(79.7
|
)
|
|
$
|
(34.0
|
)
|
|
$
|
158.9
|
|
|
$
|
(124.9
|
)
|
|
$
|
(79.7
|
)
|
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Currency translation adjustment arising during the period
|
|
39.1
|
|
|
—
|
|
|
39.1
|
|
|
(39.1
|
)
|
|
39.1
|
|
|||||
Net derivative gain on hedge transactions
|
|
7.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7.1
|
|
|||||
Pension and postretirement benefits
|
|
27.3
|
|
|
(5.8
|
)
|
|
(10.7
|
)
|
|
16.5
|
|
|
27.3
|
|
|||||
Other comprehensive income (loss), net of tax
|
|
73.5
|
|
|
(5.8
|
)
|
|
28.4
|
|
|
(22.6
|
)
|
|
73.5
|
|
|||||
Comprehensive income (loss)
|
|
(6.2
|
)
|
|
(39.8
|
)
|
|
187.3
|
|
|
(147.5
|
)
|
|
(6.2
|
)
|
|||||
Less: Comprehensive income attributable to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
19.8
|
|
|
—
|
|
|
19.8
|
|
|||||
Comprehensive income (loss) attributable to ATI
|
|
$
|
(6.2
|
)
|
|
$
|
(39.8
|
)
|
|
$
|
167.5
|
|
|
$
|
(147.5
|
)
|
|
$
|
(26.0
|
)
|
(In millions)
|
|
Guarantor
Parent
|
|
Subsidiary
|
|
Non-guarantor
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Cash flows provided by (used in) operating activities
|
|
$
|
(78.8
|
)
|
|
$
|
(101.5
|
)
|
|
$
|
214.7
|
|
|
$
|
(12.0
|
)
|
|
$
|
22.4
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of property, plant and equipment
|
|
(0.9
|
)
|
|
(38.5
|
)
|
|
(83.3
|
)
|
|
—
|
|
|
(122.7
|
)
|
|||||
Net receipts (payments) on intercompany activity
|
|
—
|
|
|
—
|
|
|
(223.9
|
)
|
|
223.9
|
|
|
—
|
|
|||||
Proceeds from disposal of property, plant and equipment
|
|
—
|
|
|
0.1
|
|
|
2.6
|
|
|
—
|
|
|
2.7
|
|
|||||
Other
|
|
—
|
|
|
—
|
|
|
0.4
|
|
|
—
|
|
|
0.4
|
|
|||||
Cash flows provided by (used in) investing activities
|
|
(0.9
|
)
|
|
(38.4
|
)
|
|
(304.2
|
)
|
|
223.9
|
|
|
(119.6
|
)
|
|||||
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Borrowings on long-term debt
|
|
—
|
|
|
—
|
|
|
8.5
|
|
|
—
|
|
|
8.5
|
|
|||||
Payments on long-terms debt and finance leases
|
|
(350.4
|
)
|
|
(0.3
|
)
|
|
(2.3
|
)
|
|
—
|
|
|
(353.0
|
)
|
|||||
Net borrowings under credit facilities
|
|
—
|
|
|
—
|
|
|
1.6
|
|
|
—
|
|
|
1.6
|
|
|||||
Debt issuance costs
|
|
—
|
|
|
—
|
|
|
(0.8
|
)
|
|
—
|
|
|
(0.8
|
)
|
|||||
Debt extinguishment charge
|
|
(35.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(35.8
|
)
|
|||||
Net receipts (payments) on intercompany activity
|
|
72.7
|
|
|
151.2
|
|
|
—
|
|
|
(223.9
|
)
|
|
—
|
|
|||||
Issuance of common stock
|
|
397.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
397.8
|
|
|||||
Dividends paid to stockholders
|
|
—
|
|
|
—
|
|
|
(12.0
|
)
|
|
12.0
|
|
|
—
|
|
|||||
Dividends paid to noncontrolling interests
|
|
—
|
|
|
—
|
|
|
(8.0
|
)
|
|
—
|
|
|
(8.0
|
)
|
|||||
Sale to noncontrolling interest
|
|
—
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
|
3.7
|
|
|||||
Shares repurchased for income tax withholding on share-based compensation
|
|
(4.8
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4.8
|
)
|
|||||
Cash flows provided by (used in) financing activities
|
|
79.5
|
|
|
150.9
|
|
|
(9.3
|
)
|
|
(211.9
|
)
|
|
9.2
|
|
|||||
Increase (decrease) in cash and cash equivalents
|
|
$
|
(0.2
|
)
|
|
$
|
11.0
|
|
|
$
|
(98.8
|
)
|
|
$
|
—
|
|
|
$
|
(88.0
|
)
|
|
|
Quarter Ended
|
||||||||||||||
(In millions, except per share amounts)
|
|
March 31
|
|
June 30
|
|
September 30
|
|
December 31
|
||||||||
2019 -
|
|
|
|
|
|
|
|
|
||||||||
Sales
|
|
$
|
1,004.8
|
|
|
$
|
1,080.4
|
|
|
$
|
1,018.7
|
|
|
$
|
1,018.6
|
|
Gross Profit
|
|
131.1
|
|
|
177.7
|
|
|
159.7
|
|
|
169.3
|
|
||||
Net income
|
|
16.3
|
|
|
78.5
|
|
|
115.3
|
|
|
60.0
|
|
||||
Net income attributable to ATI
|
|
15.0
|
|
|
75.1
|
|
|
111.0
|
|
|
56.5
|
|
||||
Basic income attributable to ATI per common share
|
|
$
|
0.12
|
|
|
$
|
0.60
|
|
|
$
|
0.88
|
|
|
$
|
0.45
|
|
Diluted income attributable to ATI per common share
|
|
$
|
0.12
|
|
|
$
|
0.54
|
|
|
$
|
0.78
|
|
|
$
|
0.41
|
|
Average shares outstanding
|
|
125.8
|
|
|
126.1
|
|
|
126.1
|
|
|
126.1
|
|
||||
2018 -
|
|
|
|
|
|
|
|
|
||||||||
Sales
|
|
$
|
979.0
|
|
|
$
|
1,009.5
|
|
|
$
|
1,020.2
|
|
|
$
|
1,037.9
|
|
Gross Profit
|
|
148.6
|
|
|
173.7
|
|
|
160.4
|
|
|
147.6
|
|
||||
Net income
|
|
60.5
|
|
|
75.6
|
|
|
55.6
|
|
|
45.0
|
|
||||
Net income attributable to ATI
|
|
58.0
|
|
|
72.8
|
|
|
50.5
|
|
|
41.1
|
|
||||
Basic income attributable to ATI per common share
|
|
$
|
0.46
|
|
|
$
|
0.58
|
|
|
$
|
0.40
|
|
|
$
|
0.33
|
|
Diluted income attributable to ATI per common share
|
|
$
|
0.42
|
|
|
$
|
0.52
|
|
|
$
|
0.37
|
|
|
$
|
0.30
|
|
Average shares outstanding
|
|
125.7
|
|
|
125.7
|
|
|
125.7
|
|
|
125.7
|
|
•
|
$4.5 million pre-tax ($4.3 million, net of tax) restructuring charge to streamline ATI’s salaried workforce primarily to improve the cost competitiveness of the U.S.-based Flat Rolled Products business. See Note 18 for further explanation.
|
•
|
$21.6 million pre-tax ($20.5 million, net of tax) debt extinguishment charge for the full redemption of the 2021 Notes. See Note 10 for further explanation.
|
•
|
$11.4 million pre-tax ($10.8 million, net of tax) joint venture impairment charge related to the A&T Stainless joint venture. See Note 7 for further explanation.
|
•
|
$41.9 million net discrete tax benefit primarily related to the reversal of a significant portion of the Company's deferred tax valuation allowances. See Note 17 for further explanation.
|
(1)
|
Includes stock-settled equity awards previously granted under the Allegheny Technologies Incorporated 2015 Incentive Plan (the “2015 Incentive Plan”) and the Allegheny Technologies Incorporated 2017 Incentive Plan (the “2017 Incentive Plan”). Amounts reflected for such performance-based awards represent the maximum number of shares to be awarded at the conclusion of the applicable performance cycle.
|
(2)
|
Outstanding stock-settled awards are not included in this calculation.
|
(3)
|
Represents shares available for issuance under the 2017 Incentive Plan (which provides for the issuance of stock options, stock appreciation rights, restricted shares, restricted stock units, performance and other stock-based awards). See Note 16. Stockholders’ Equity for a discussion of the Company’s stock-based compensation plans.
|
Exhibit
No.
|
|
Description
|
|
|
|
3.1
|
|
|
3.2
|
|
|
4.1
|
|
|
4.2
|
|
|
Exhibit
No.
|
|
Description
|
4.3
|
|
|
4.4
|
|
|
4.5
|
|
|
4.6
|
|
|
4.7
|
|
|
4.8
|
|
|
4.9
|
|
|
4.10
|
|
|
4.11
|
|
|
4.12
|
|
|
4.13
|
|
|
10.1
|
|
|
10.2
|
|
|
10.3
|
|
|
10.4
|
|
|
10.5
|
|
|
10.6
|
|
|
10.7
|
|
|
10.8
|
|
|
10.9
|
|
|
10.10
|
|
Exhibit
No.
|
|
Description
|
10.11
|
|
|
10.12
|
|
|
10.13
|
|
|
10.14
|
|
|
10.15
|
|
|
10.16
|
|
|
10.17
|
|
|
10.18
|
|
|
10.19
|
|
|
10.20
|
|
|
21.1
|
|
|
23.1
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
101.INS
|
|
Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
101.SCH
|
|
Inline XBRL Taxonomy Extension Schema Document.
|
101.CAL
|
|
Inline XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF
|
|
Inline XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB
|
|
Inline XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE
|
|
Inline XBRL Taxonomy Extension Presentation Linkbase Document.
|
104
|
|
Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
*
|
Management contract or compensatory plan or arrangement required to be filed as an Exhibit to this Report.
|
|
|
ALLEGHENY TECHNOLOGIES INCORPORATED
|
||
|
|
|
|
|
Date:
|
February 25, 2020
|
By
|
|
/s/ Robert S. Wetherbee
|
|
|
|
|
Robert S. Wetherbee
|
|
|
|
|
President and Chief Executive Officer
|
/s/ Robert S. Wetherbee
|
|
/s/ Donald P. Newman
|
Robert S. Wetherbee
President and Chief Executive Officer and Director
(Principal Executive Officer)
|
|
Donald P. Newman
Senior Vice President, Finance and Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
/s/ Diane C. Creel
|
|
/s/ Karl D. Schwartz
|
Diane C. Creel
Board Chair
|
|
Karl D. Schwartz
Vice President, Controller and
Chief Accounting Officer
(Principal Accounting Officer)
|
|
|
|
/s/ Leroy M. Ball
|
|
/s/ David P. Hess
|
Leroy M. Ball
Director
|
|
David P. Hess
Director
|
|
|
|
/s/ Herbert J. Carlisle
|
|
/s/ Marianne Kah
|
Herbert J. Carlisle
Director
|
|
Marianne Kah
Director
|
|
|
|
/s/ Carolyn Corvi
|
|
/s/ David J. Morehouse
|
Carolyn Corvi
Director
|
|
David J. Morehouse
Director
|
|
|
|
/s/ James C. Diggs
|
|
/s/ John R. Pipski
|
James C. Diggs
Director
|
|
John R. Pipski
Director
|
|
|
|
/s/ J. Brett Harvey
|
|
/s/ James E. Rohr
|
J. Brett Harvey
Director
|
|
James E. Rohr
Director
|
•
|
The Company’s Board of Directors is classified into three classes;
|
•
|
In addition to the requirements of law and the other provisions of the Certificate of Incorporation, the affirmative vote of at least two-thirds of the outstanding shares of Common Stock is required for the adoption or authorization of any of the following events unless the event has been approved at a meeting of the Company’s Board of Directors by the vote of more than two-thirds of the incumbent members of the Company’s Board of Directors:
|
•
|
Any merger or consolidation of the Company with or into any other corporation;
|
•
|
Any sale, lease, exchange, transfer or other disposition, but excluding a mortgage or any other security device, of all or substantially all of the Company’s assets;
|
•
|
Any merger or consolidation of a Significant Shareholder (as defined in the Certificate of Incorporation) with or into the Company or a direct or indirect subsidiary of the Company;
|
•
|
Any sale, lease, exchange, transfer or other disposition to the Company or to a direct or indirect subsidiary of the Company of any Common Stock held by a Significant Shareholder or any other assets of a Significant Shareholder which, if included with all other dispositions consummated during the same fiscal year of the Company by the same Significant Shareholder, would result in dispositions of assets having an aggregate fair value in excess of five percent of the Company’s total consolidated assets as shown on the Company’s certified balance sheet as of the end of the fiscal year preceding the proposed disposition;
|
•
|
Any reclassification of the Common Stock, or any re-capitalization involving the Common Stock, consummated within five years after a Significant Shareholder becomes a Significant Shareholder, whereby the number of outstanding shares of Common Stock is reduced or any of those shares are converted into or exchanged for cash or other securities;
|
•
|
Any dissolution; and
|
•
|
Any agreement, contract or other arrangement providing for any of these transactions but notwithstanding anything not including any merger pursuant to the Delaware General Corporation Law, as amended from time to time, which does not require a vote of the Company’s stockholders for approval;
|
•
|
The Company’s stockholders may not alter, amend, supplement or repeal, or adopt any provision inconsistent with the purpose or intent of, certain provisions contained in the Certificate of Incorporation other than by the affirmative vote of 75% of the combined voting power of all of the Company’s outstanding voting securities entitled to vote generally in an election of directors, voting together as a single class;
|
•
|
The Company’s stockholders may not adopt, amend or repeal the Bylaws other than by the affirmative vote of 75% of the combined voting power of all of the Company’s outstanding
|
•
|
Any action required or permitted to be taken by the Company’s stockholders must be effected at a duly called annual or special meeting of stockholders and may not be effected by the written consent of the stockholders; and
|
•
|
Special meetings of the stockholders may be called at any time by a majority of the Company’s directors and may not be called by any other person or persons or in any other manner.
|
Name of Subsidiary
|
|
State or Country of Incorporation
|
ALC Funding Corporation
|
|
Delaware
|
Allegheny Ludlum, LLC
|
|
Pennsylvania
|
ATI Flat Rolled Products Holdings LLC
|
|
Pennsylvania
|
ATI Ladish LLC
|
|
Wisconsin
|
ATI Operating Holdings, LLC
|
|
Delaware
|
ATI Properties, Inc.
|
|
Delaware
|
Shanghai STAL Precision Stainless Steel Company Limited (1)
|
|
China
|
TDY Holdings, LLC
|
|
Delaware
|
TDY Industries, LLC
|
|
California
|
|
(1)
|
Registration Statements (Form S-3 No. 333-224542) of Allegheny Technologies Incorporated, and
|
|
(2)
|
Registration Statements (Form S-8 Nos. 333-203784, 333-217942, 333-188641, 333-181491, 333-166628, 333-145651, 333-142559, 333-129485, 333-59161, 333-10229, and 333-45965) pertaining to the employee benefit plans of Allegheny Technologies Incorporated;
|
1.
|
I have reviewed this report on Form 10-K of Allegheny Technologies Incorporated;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a.
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b.
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c.
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d.
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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b.
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Robert S. Wetherbee
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Robert S. Wetherbee
|
President and Chief Executive Officer
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1.
|
I have reviewed this report on Form 10-K of Allegheny Technologies Incorporated;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
|
Based on my knowledge, the financial statements, and other financial information included in this annual report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ Donald P. Newman
|
Donald P. Newman
|
Senior Vice President, Finance and
|
Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date:
|
February 25, 2020
|
|
/s/ Robert S. Wetherbee
|
|
|
|
Robert S. Wetherbee
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
Date:
|
February 25, 2020
|
|
/s/ Donald P. Newman
|
|
|
|
Donald P. Newman
|
|
|
|
Senior Vice President, Finance and
|
|
|
|
Chief Financial Officer
|