| Consolidated Balance Sheets (USD $) | ||
| In Millions, except Share data | Jun. 30, 2009
| Dec. 31, 2008
|
| Assets | ||
| Cash and cash equivalents | 850.7 | 469.9 |
| Account receivable, net | 398.2 | 530.5 |
| Inventories, net | 692.9 | 887.6 |
| Prepaid expenses and other current assets | 76.2 | 41.4 |
| Total Current Assets | 2,018 | 1929.4 |
| Property, plant and equipment, net | 1,787 | 1633.6 |
| Cost in excess of net assets acquired | 197.3 | 190.9 |
| Prepaid pension asset | 122.2 | 0 |
| Deferred income taxes | 49.9 | 281.6 |
| Other assets | 147 | 134.9 |
| Total Assets | 4321.4 | 4170.4 |
| Liabilities and Equity | ||
| Accounts payable | 236.4 | 278.5 |
| Accrued liabilities | 229.6 | 322 |
| Deferred income taxes | 35.3 | 78.2 |
| Short-term debt and current portion of long-term debt | 17.5 | 15.2 |
| Total Current Liabilities | 518.8 | 693.9 |
| Long-term debt | 1055.9 | 494.6 |
| Accrued postretirement benefits | 449.8 | 446.9 |
| Pension liabilities | 34.5 | 378.2 |
| Other long-term liabilities | 114.8 | 127.8 |
| Total Liabilities | 2173.8 | 2141.4 |
| Equity: | ||
| Preferred Stock Par Value, Issued | 0 | 0 |
| Common Stock Par Value, Issued | 10.2 | 10.2 |
| Additional Paid in Capital | 641.5 | 651.8 |
| Retained Earnings | 2227.2 | 2286.7 |
| Treasury Stock, Value | 208.7 | 244.8 |
| Accumulated other comprehensive income (loss), net of tax | -594.7 | -746.5 |
| Total ATI Stockholders' Equity | 2075.5 | 1957.4 |
| Noncontrolling Interests | 72.1 | 71.6 |
| Total Equity | 2147.6 | 2,029 |
| Total Liabilities and Equity | 4321.4 | 4170.4 |
| Preferred Stock | ||
| Preferred Stock, Par Value Per Share | 0.1 | 0.1 |
| Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
| Preferred Stock, Shares Issued | 0 | 0 |
| Common Stock | ||
| Common Stock, Par Value Per Share | 0.1 | 0.1 |
| Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
| Common Stock, Shares, Issued | 102,404,256 | 102,404,256 |
| Common Stock, Shares, Outstanding | 98,073,010 | 97,330,969 |
| Treasury Stock | ||
| Treasury Stock, Shares | 4,331,246 | 5,073,287 |
| Consolidated Statements of Operations (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Jun. 30, 2009 | 3 Months Ended
Jun. 30, 2008 | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Sales | $710 | 1461.2 | 1541.6 | 2804.6 |
| Cost and expenses: | ||||
| Cost of sales | 634.8 | 1128.9 | 1385.7 | 2181.7 |
| Selling and administrative expenses | 64.4 | 79.2 | 145.2 | 149.4 |
| Income (Loss) before interest, other income (expense) and income taxes | 10.8 | 253.1 | 10.7 | 473.5 |
| Interest expense, net | -1.3 | -1.3 | -1.2 | -1.1 |
| Debt extinguishment costs | -9.2 | 0 | -9.2 | 0 |
| Other income (expense), net | -0.3 | 0.6 | 0 | 1.6 |
| Income before income tax provision | 0 | 252.4 | 0.3 | 474 |
| Income tax provision | 11.7 | 81.2 | 6.7 | 159.1 |
| Net income (loss) | -11.7 | 171.2 | -6.4 | 314.9 |
| Less: Net income attributable to noncontrolling interests | 1.7 | 2.3 | 1.1 | 4 |
| Net income (loss) attributable to ATI | -13.4 | 168.9 | -7.5 | 310.9 |
| Basic net income (loss) per common share attributable to ATI common stockholders | -0.14 | 1.68 | -0.08 | 3.09 |
| Diluted net income (loss) per common share attributable to ATI common stockholders | -0.14 | 1.66 | -0.08 | 3.06 |
| Dividends Declared Per Common Share | 0.18 | 0.18 | 0.36 | 0.36 |
| Consolidated Statements of Cash Flows (USD $) | ||
| In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Operating Activities: | ||
| Net income (loss) | -6.4 | 314.9 |
| Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | ||
| Depreciation and Amortization | 64.4 | 56.5 |
| Deferred Income Taxes | 108.3 | 26.9 |
| Change in operating assets and liabilities: | ||
| Inventories | 194.6 | -255.1 |
| Accounts receivable | 132.3 | -86.1 |
| Accounts payable | -42.1 | 62.8 |
| Retirement benefits | -299.4 | -13.8 |
| Accrued income taxes | -42.2 | -3.1 |
| Accrued liabilities and other | -28.2 | -6.7 |
| Cash provided by operating activities | 81.3 | 96.3 |
| Investing Activities: | ||
| Purchases of Property, Plant and Equipment | -211.5 | -255.4 |
| Asset disposals and other | -1.3 | -0.2 |
| Cash used in investing activites | -212.8 | -255.6 |
| Financing Activities: | ||
| Borrowings on long-term debt | 752.5 | 0 |
| Payments of long-term debt and capital leases | -188.6 | -8.8 |
| Net repayments under credit facilities | 2.4 | 3.4 |
| Debt issuance costs | -18.1 | 0 |
| Dividends paid to shareholders | -35.3 | -36.4 |
| Dividends paid to noncontrolling interests | -0.8 | 0 |
| Shares repurchased for income tax withholding on share-based compensation | -0.7 | -15.5 |
| Exercises of stock options | 0 | 1.1 |
| Tax benefit on share-based compensation | 0.4 | -9.2 |
| Purchase of treasury stock | 0 | -88.4 |
| Cash provided by (used in) financing activities | 512.3 | -153.8 |
| Increase (decrease) in cash and cash equivalents | 380.8 | -313.1 |
| Cash and cash equivalents at beginning of the year | 469.9 | 623.3 |
| Cash and cash equivalents at end of period | 850.7 | 310.2 |
| Statement of Changes in Consolidated Equity (USD $) | ||
| In Millions | 6 Months Ended
Jun. 30, 2009 | 6 Months Ended
Jun. 30, 2008 |
| Stockholders' Equity, Beginning Balance | $2,029 | 2279.2 |
| Net income (loss) | -6.4 | 314.9 |
| Pension plans and other postretirement benefits | 99.7 | 4.1 |
| Foreign currency translation gains | 26.1 | 12.3 |
| Unrealized gains on derivatives | 26.2 | 17.4 |
| Comprehensive income | 145.6 | 348.7 |
| Purchase of Treasury Stock | -88.4 | |
| Effect of changing the measurement date for pension plans and other postretirement benefits, net of tax | 1.2 | |
| Cash Dividends on Common Stock ($0.36 per share) | -35.3 | -36.4 |
| Cash Dividends paid to noncontrolling interests | -0.8 | |
| Employee stock plans | 9.1 | -13.4 |
| Stockholders' Equity, Ending Balance | 2147.6 | 2490.9 |
| Additional Paid-in Capital [Member] | ||
| Stockholders' Equity, Beginning Balance | 651.8 | 693.7 |
| Employee stock plans - Additional Paid-In Capital | -10.3 | -49.2 |
| Stockholders' Equity, Ending Balance | 641.5 | 644.5 |
| Common Stock [Member] | ||
| Stockholders' Equity, Beginning Balance | 10.2 | 10.2 |
| Retained Earnings [Member] | ||
| Stockholders' Equity, Beginning Balance | 2286.7 | 1830.7 |
| Net income (loss) | -7.5 | 310.9 |
| Comprehensive income | -7.5 | 310.9 |
| Cash Dividends on Common Stock ($0.36 per share) | -35.3 | -36.4 |
| Employee stock plans - Retained Earnings | -16.7 | -0.4 |
| Stockholders' Equity, Ending Balance | 2227.2 | 2104.8 |
| Treasury Stock [Member] | ||
| Stockholders' Equity, Beginning Balance | -244.8 | -75.4 |
| Purchase of Treasury Stock | -88.4 | |
| Employee stock plans - Treasury Stock | 36.1 | 36.2 |
| Stockholders' Equity, Ending Balance | -208.7 | -127.6 |
| Accumulated Other Comprehensive Income [Member] | ||
| Stockholders' Equity, Beginning Balance | -746.5 | -237.2 |
| Pension plans and other postretirement benefits | 99.7 | 4.1 |
| Foreign currency translation gains | 25.9 | 6.3 |
| Unrealized gains on derivatives | 26.2 | 17.4 |
| Comprehensive income | 151.8 | 27.8 |
| Effect of changing the measurement date for pension plans and other postretirement benefits, net of tax | 1.2 | |
| Stockholders' Equity, Ending Balance | -594.7 | -208.2 |
| Comprehensive Income [Member] | ||
| Stockholders' Equity, Beginning Balance | 0 | 0 |
| Net income (loss) | -7.5 | 310.9 |
| Pension plans and other postretirement benefits | 99.7 | 4.1 |
| Foreign currency translation gains | 25.9 | 6.3 |
| Unrealized gains on derivatives | 26.2 | 17.4 |
| Comprehensive income | 144.3 | 338.7 |
| Noncontrolling Interests [Member] | ||
| Stockholders' Equity, Beginning Balance | 71.6 | 57.2 |
| Net income (loss) | 1.1 | 4 |
| Foreign currency translation gains | 0.2 | 6 |
| Comprehensive income | 1.3 | 10 |
| Cash Dividends paid to noncontrolling interests | -0.8 | |
| Stockholders' Equity, Ending Balance | 72.1 | 67.2 |
| Accounting Policies | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Accounting Policies | |
| Significant Accounting Policies [Text Block] | Note 1. Accounting Policies Basis of Presentation The interim consolidated financial statements include the accounts of Allegheny Technologies Incorporated and its subsidiaries. Unless the context requires otherwise, Allegheny Technologies, ATI and the Company refer to Allegheny Technologies Incorporated and its subsidiaries. These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by U.S. generally accepted accounting principles for complete financial statements. In managements opinion, all adjustments (which include only normal recurring adjustments) considered necessary for a fair presentation have been included. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Companys 2008 Annual Report on Form 10-K. The results of operations for these interim periods are not necessarily indicative of the operating results for any future period. In preparing the financial statements for the period ended June 30, 2009, the Company has evaluated subsequent events through the date of issue, which was August 3, 2009. The December 31, 2008 financial information has been derived from our audited financial statements, which were revised in the current period to reflect changes in the presentation of noncontrolling interests (formerly minority interests) in accordance with the required adoption of the accounting standard discussed below. Certain amounts from prior years have been reclassified to conform with the 2009 presentation. New Accounting Pronouncement Adopted As required, in the first quarter 2009, the Company adopted FASB Statement of Financial Accounting Standards No. 160 (FAS 160), Noncontrolling Interests in Consolidated Financial Statements. Early adoption of this standard was prohibited. FAS 160 changes the classification of noncontrolling (minority) interests on the balance sheet and the accounting for and reporting of transactions between the reporting entity and holders of such noncontrolling interests. Under the new standard, noncontrolling interests are considered equity and are reported as an element of stockholders equity rather than within the mezzanine or liability sections of the balance sheet. In addition, the practice of reporting minority interest expense or benefit changed. Under the new standard, net income encompasses the total income before noncontrolling interest expense or benefit. The income statement includes separate disclosure of the attribution of income or loss between the controlling and noncontrolling interests. Absent a change in control, increases and decreases in the noncontrolling ownership interest amount are accounted for as equity transactions. As a result of adopting FAS 160, the balance sheet and the income statement have been recast retrospectively for the presentation of noncontrolling interest in our STAL |
| Inventories | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Inventories | |
| Inventory Disclosure [Text Block] | Note 2. Inventories Inventories at June 30, 2009 and December 31, 2008 were as follows (in millions): June 30, December 31, 2009 2008 Raw materials and supplies $ 138.3 $ 163.6 Work-in-process 580.1 772.6 Finished goods 129.9 164.9 Total inventories at current cost 848.3 1,101.1 Less allowances to reduce current cost values to LIFO basis (151.1) (205.6) Progress payments (4.3) (7.9) Total inventories, net $ 692.9 $ 887.6 Inventories are stated at the lower of cost (last-in, first-out (LIFO), first-in, first-out (FIFO), and average cost methods) or market, less progress payments. Most of the Companys inventory is valued utilizing the LIFO costing methodology. Inventory of the Companys non-U.S. operations is valued using average cost or FIFO methods. The effect of using the LIFO methodology to value inventory, rather than FIFO, decreased cost of sales by $54.5 million for the first six months of 2009 compared to an increase to cost of sales of $4.7 million for the first six months of 2008. |
| Supplemental Financial Statement Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Supplemental Financial Statement Information | |
| Fair Value Disclosures [Text Block] | Note 3. Supplemental Financial Statement Information The estimated fair value of financial instruments at June 30, 2009 and December 31, 2008 was as follows: (In millions) June 30, 2009 December 31, 2008 Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value Cash and cash equivalents $ 850.7 $ 850.7 $ 469.9 $ 469.9 Derivative financial instruments: Assets 23.7 23.7 17.2 17.2 Liabilities 26.2 26.2 61.5 61.5 Debt: Allegheny Technologies $402.5 million 4.25% Convertible Notes due 2014 $ 402.5 442.3 Allegheny Technologies $350 million 9.375% Notes due 2019 350.0 367.5 Allegheny Technologies $300 million 8.375% Notes due 2011, net (a) 118.1 125.9 304.2 306.6 Allegheny Ludlum 6.95% debentures due 2025 150.0 126.4 150.0 144.3 Promissory note for JL asset acquisition 25.6 25.6 30.7 30.7 Foreign credit agreements 18.2 18.2 15.6 15.6 Industrial revenue bonds, due through 2020 8.8 8.8 9.0 9.0 Capitalized leases and other 0.2 0.2 0.3 0.3 (a) Includes fair value adjustments for settled interest rate swap contracts of $2.2 million at June 30, 2009, and $6.7 million at December 31, 2008. The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash and cash equivalents: The carrying amount on the balance sheet approximates fair value. Derivative financial instruments: Fair values for derivatives were measured using exchange-traded prices for the hedged items. The fair value was determined using Level 2 information, including consideration of counterparty risk and the Companys credit risk. Short-term and long-term debt: The fair values of the Allegheny Technologies 4.25% Convertible Notes, the Allegheny Technologies 9.375% Notes, the Allegheny Technologies 8.375% Notes, and the Allegheny Ludlum 6.95% debentures were based on quoted market prices. The carrying amounts of the other short-term and long-term debt approximate fair value. |
| Property, Plant and Equipment Disclosure [Text Block] | Property, plant and equipment at June 30, 2009 and December 31, 2008 were as follows (in millions): June 30, December 31, 2009 2008 Land $ 23.6 $ 23.1 Buildings 321.0 310.9 Equipment and leasehold improvements 2,707.7 2,508.5 3,052.3 2,842.5 Accumulated depreciation and amortization (1,265.3) (1,208.9) Total property, plant and equipment, net $ 1,787.0 $ 1,633.6 |
| Debt | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Debt | |
| Debt Disclosure [Text Block] | Note 4. Debt Debt at June 30, 2009 and December 31, 2008 was as follows (in millions): June 30, December 31, 2009 2008 Allegheny Technologies $402.5 million 4.25% Convertible Notes due 2014 $ 402.5 $ Allegheny Technologies $350 million 9.375% Notes due 2019 350.0 Allegheny Technologies $300 million 8.375% Notes due 2011, net (a) 118.1 304.2 Allegheny Ludlum 6.95% debentures due 2025 150.0 150.0 Domestic Bank Group $400 million unsecured credit agreement Promissory note for JL asset acquisition 25.6 30.7 Foreign credit agreements 18.2 15.6 Industrial revenue bonds, due through 2020 8.8 9.0 Other 0.2 0.3 Total short-term and long-term debt 1,073.4 509.8 Short-term debt and current portion of long-term debt (17.5) (15.2) Total long-term debt $ 1,055.9 $ 494.6 (a) Includes fair value adjustments for settled interest rate swap contracts of $2.2 million at June 30, 2009 and $6.7 million at December 31, 2008. Convertible Notes In June2009, the Company issued and sold $402.5 million in aggregate principal amount of 4.25% Convertible Senior Notes due 2014 (the Convertible Notes). Interest is payable semi-annually on June1 and December1 of each year. The Convertible Notes were issued under ATIs shelf registration statement and are not listed on any national securities exchange. Net proceeds of $390.2 million from the sale of the Convertible Notes were used to make a $350 million voluntary cash contribution to the Companys U.S. defined benefit pension plan, and the balance was used for general corporate purposes including funding of contributions to trusts established to fund retiree medical benefits. The Convertible Notes are unsecured and unsubordinated obligations of the Company and equally ranked with all of its existing and future senior unsecured debt. The underwriting fees and other third-party expenses for the issuance of the Convertible Notes were $12.3 million and will be amortized to interest expense over the 5-year term of the Convertible Notes. The Company does not have the right to redeem the Convertible Notes prior to the stated maturity date. Holders of the Convertible Notes have the option to convert their notes into shares of ATI common stock at any time prior to the close of business on the second scheduled trading day immediately preceding the stated maturity date (June 1, 2014). The initial conversion rate for the Convertible Notes is 23.9263 shares of ATI common stock per $1,000 (in whole dollars) principal amount of notes (9,630,335 shares), equivalent to a conversion price of approximately $41.795 per share, subject to adjustment, as defined in the Convertible Notes. Other than receiving cash in lieu of fractional shares, holders do not have the option to receive cash instead of shares of common stock upon conversion. Accrued and unpaid interest that exists upon conversion of a note will be deemed paid by the delivery of shares of ATI common stock |
| Per Share Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Per Share Information | |
| Earnings Per Share [Text Block] | Note 5. Per Share Information The following table sets forth the computation of basic and diluted net income (loss) per common share (in millions, except per share amounts): Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Numerator for basic and diluted net income (loss) per common share - net income (loss) attributable to ATI common stockholders $ (13.4) $ 168.9 $ (7.5) $ 310.9 Denominator: Denominator for basic net income (loss) per common share-weighted average shares 97.2 100.7 97.2 100.7 Effect of dilutive securities: Option equivalents 0.5 0.5 Contingently issuable shares 0.3 0.3 Denominator for diluted net income (loss) per common share adjusted weighted average shares and assumed conversions 97.2 101.5 97.2 101.5 Basic net income (loss) per common share attributable to ATI common stockholders $ (0.14) $ 1.68 $ (0.08) $ 3.09 Diluted net income (loss) per common share attributable to ATI common stockholders $ (0.14) $ 1.66 $ (0.08) $ 3.06 Common stock which would be issuable that relate to the assumed conversion of the 2014 Notes and other option equivalents and contingently issuable shares were excluded from the computation of contingently issuable shares, and therefore the denominator for diluted earnings per share, for the three months and six months ended June30, 2009, because the effect of inclusion would have been anti-dilutive. Excluded shares for the three months and six months ended June 30, 2009 were 4.3 million and 2.4 million, respectively. |
| Derivative Financial Instruments and Hedging | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Derivative Financial Instruments and Hedging | |
| Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 6. Derivative Financial Instruments and Hedging As part of its risk management strategy, the Company, from time-to-time, utilizes derivative financial instruments to manage its exposure to changes in raw material prices, energy costs, foreign currencies, and interest rates. In accordance with applicable accounting standards, the Company accounts for all of these contracts as hedges. In general, hedge effectiveness is determined by examining the relationship between offsetting changes in fair value or cash flows attributable to the item being hedged, and the financial instrument being used for the hedge. Effectiveness is measured utilizing regression analysis and other techniques to determine whether the change in the fair market value or cash flows of the derivative exceeds the change in fair value or cash flow of the hedged item. Calculated ineffectiveness, if any, is immediately recognized on the statement of operations. The Company sometimes uses futures and swap contracts to manage exposure to changes in prices for forecasted purchases of raw materials, such as nickel, and natural gas. Generally under these contracts, which are accounted for as cash flow hedges, the price of the item being hedged is fixed at the time that the contract is entered into and the Company is obligated to make or receive a payment equal to the net change between this fixed price and the market price at the date the contract matures. The majority of ATIs products are sold utilizing raw material surcharges and index mechanisms. However, as of June 30, 2009, the Company had entered into financial hedging arrangements primarily at the request of its customers, related to firm orders, for approximately 6% of the Companys total annual nickel requirements through 2010. Any gain or loss associated with these hedging arrangements is included in the selling price to the customer requesting the hedge over the designated hedge period. At June 30, 2009, the outstanding financial derivatives used to hedge the Companys exposure to natural gas cost volatility represented approximately 40% of our forecasted requirements for the next three years. While the majority of the Companys direct export sales are transacted in U.S. dollars, foreign currency exchange contracts are used, from time-to-time, to limit transactional exposure to changes in currency exchange rates for those transactions denominated in a non-U.S. currency. The Company sometimes purchases foreign currency forward contracts that permit it to sell specified amounts of foreign currencies expected to be received from its export sales for pre-established U.S. dollar amounts at specified dates. The forward contracts are denominated in the same foreign currencies in which export sales are denominated. These contracts are designated as hedges of the variability in cash flows of a portion of the forecasted future export sales transactions which otherwise would expose the Company to foreign currency risk. At June 30, 2009, the outstanding financial derivatives used to hedge the Companys exposure to foreign currency, primarily euros, represented approximately 7% of our forecasted total internat |
| Income Taxes | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Income Taxes | |
| Income Tax Disclosure [Text Block] | Note 7. Income Taxes Second quarter 2009 results included a provision for income taxes of $11.7 million compared to an income tax provision of $81.2 million, or 32.2% of income before tax, for the comparable 2008 period. The second quarter 2009 tax provision included a non-recurring tax charge of $11.5 million, primarily associated with the tax consequences of the June 2009 $350 million voluntary contribution to the pension plan. The effective tax rate, excluding the non-recurring tax charge, was 41.1% for 2009. The second quarter 2008 tax provision included a favorable discrete net tax benefit of $11.2 million, primarily associated with a tax refund related to prior years. For the first half 2009, the provision of income taxes was $6.7 million compared to $159.1 million, or 33.6% of income before tax, for the first half 2008. The 2009 first quarter benefited from a lower income tax provision due primarily to $5.1 million of discrete adjustments associated primarily with prior years taxes. The 2008 first quarter included a discrete benefit of $2.6 million related to foreign taxes. As a result of the $350 million voluntary pension contribution in June 2009 which was designated to pertain to the 2008 tax year, the Company received a U.S. Federal income tax refund of $108.5 million in the second quarter 2009. |
| Pension Plans and Other Postretirement Benefits | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Pension Plans and Other Postretirement Benefits | |
| Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 8. Pension Plans and Other Postretirement Benefits The Company has defined benefit pension plans and defined contribution plans covering substantially all employees. Benefits under the defined benefit pension plans are generally based on years of service and/or final average pay. The Company funds the U.S. pension plans in accordance with the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code. The Company also sponsors several postretirement plans covering certain salaried and hourly employees. The plans provide health care and life insurance benefits for eligible retirees. In most plans, Company contributions towards premiums are capped based on the cost as of a certain date, thereby creating a defined contribution. For the non-collectively bargained plans, the Company maintains the right to amend or terminate the plans at its discretion. In June 2009, the Company made a $350 million voluntary cash contribution to its U.S. defined benefit pension plan to improve the plans funded position. As a result of this significant voluntary pension contribution and the associated remeasurement of plan assets and liabilities, 2009 pension expense is expected to be reduced by $27.5 million to $98.7 million, compared to a previous estimate of $126.2 million. As a result, retirement benefit expense, which includes pension expense and other post-retirement expense, is now expected to be approximately $25.5 million in both the third and fourth quarters of 2009. For the three and six month periods ended June 30, 2009 and 2008, the components of pension (income) expense and components of other postretirement benefit expense for the Companys defined benefit plans included the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 Pension Benefits: Service cost - benefits earned during the year $ 6.0 $ 7.0 $ 12.1 $ 14.0 Interest cost on benefits earned in prior years 34.5 32.7 68.9 65.3 Expected return on plan assets (37.2) (50.2) (71.9) (100.4) Amortization of prior service cost 4.1 4.2 8.2 8.3 Amortization of net actuarial loss 20.2 3.3 41.8 6.5 Total pension (income) expense $ 27.6 $ (3.0) $ 59.1 $ (6.3) Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 Other Postretirement Benefits: Service cost - benefits earned during the year $ 0.8 $ 0.7 $ 1.5 $ 1.5 Interest cost on benefits earned in prior years 8.1 7.9 16.3 15.8 Expected return on plan assets (0.4) (1.4) (0.8) (2.8) Amortization of prior service cost (credit) (4.8) (5.3) (9.6) (10.6) Amortization of net actuarial loss 1.6 1.3 3.2 |
| Business Segments | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Business Segments | |
| Segment Reporting Disclosure [Text Block] | Note 9. Business Segments Following is certain financial information with respect to the Companys business segments for the periods indicated (in millions): Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Total sales: High Performance Metals $ 336.7 $ 560.2 $ 743.7 $ 1,085.3 Flat-Rolled Products 342.1 851.0 729.0 1611.6 Engineered Products 60.1 135.7 135.7 264.2 738.9 1,546.9 1,608.4 2,961.1 Intersegment sales: High Performance Metals 16.2 55.7 35.3 99.8 Flat-Rolled Products 6.9 16.9 15.6 30.6 Engineered Products 5.8 13.1 15.9 26.1 28.9 85.7 66.8 156.5 Sales to external customers: High Performance Metals 320.5 504.5 708.4 985.5 Flat-Rolled Products 335.2 834.1 713.4 1581.0 Engineered Products 54.3 122.6 119.8 238.1 $ 710.0 $ 1,461.2 $ 1,541.6 $ 2,804.6 Operating profit (loss): High Performance Metals $ 41.0 $ 150.8 $ 95.3 $ 282.2 Flat-Rolled Products 22.3 113.6 30.0 216.5 Engineered Products (9.4) 11.0 (15.5) 16.7 Total operating profit 53.9 275.4 109.8 515.4 Corporate expenses (8.6) (15.4) (23.0) (33.1) Interest income, net (1.3) (1.3) (1.2) (1.1) Other expense, net of gains on asset sales (1.4) (3.0) (5.4) (3.9) Debt extinguishment costs (9.2) (9.2) Retirement benefit expense (33.4) (3.3) (70.7) (3.3) Income before income taxes $ $ 252.4 $ 0.3 $ 474.0 Retirement benefit expense represents defined benefit plan pension expense, and other postretirement benefit expense for both defined benefit and defined contribution plans. Operating profit with respect to the Companys business segments excludes any retirement benefit expense. Corporate expenses for the three months ended June 30, 2009 were $8.6 million, compared to $15.4 million for the three months ended June 30, 2008. This decrease is due primarily to lower expenses associated with long-term performance-based cash incentive compensation programs. Other expense, net of gains on asset sales, primarily includes charges incurred in connection with closed operations and other non-operating income or expense. These items are presented primarily in selling and administrative expenses and in other expense in the statement of income. These items resulted in net charges of $1.4 million for the three months ended June 30, 2009 and $3.0 million for the three months ended June 30, 2008. This increase was primarily related to lower foreign currency |
| Financial Information for Subsidiary and Gurantor | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Financial Information for Subsidiary and Gurantor | |
| Schedule of Condensed Financial Statements [Text Block] | Note 10. Financial Information for Subsidiary and Guarantor Parent The payment obligations under the $150 million 6.95% debentures due 2025 issued by Allegheny Ludlum Corporation (the Subsidiary) are fully and unconditionally guaranteed by Allegheny Technologies Incorporated (the Guarantor Parent). In accordance with positions established by the Securities and Exchange Commission, the following financial information sets forth separately financial information with respect to the Subsidiary, the non-guarantor subsidiaries and the Guarantor Parent. The principal elimination entries eliminate investments in subsidiaries and certain intercompany balances and transactions. Investments in subsidiaries, which are eliminated in consolidation, are included in other assets on the balance sheets. Allegheny Technologies is the plan sponsor for the U.S. qualified defined benefit pension plan (the Plan) which covers certain current and former employees of the Subsidiary and the non-guarantor subsidiaries. As a result, the balance sheets presented for the Subsidiary and the non-guarantor subsidiaries do not include any Plan assets or liabilities, or the related deferred taxes. The Plan assets, liabilities and related deferred taxes and pension income or expense are recognized by the Guarantor Parent. Management and royalty fees charged to the Subsidiary and to the non-guarantor subsidiaries by the Guarantor Parent have been excluded solely for purposes of this presentation. Cash flows related to intercompany activity between the Guarantor Parent, the Subsidiary, and the non-guarantor subsidiaries are presented as financing activities on the condensed statements of cash flows. Note 10. CONTINUED Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Balance Sheets June 30, 2009 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ 1.1 $ 637.5 $ 212.1 $ $ 850.7 Accounts receivable, net 0.1 143.4 254.7 398.2 Inventories, net 103.8 589.1 692.9 Prepaid expenses and other current assets 31.8 10.7 33.7 76.2 Total current assets 33.0 895.4 1,089.6 2,018.0 Property, plant and equipment, net 2.1 408.0 1,376.9 1,787.0 Cost in excess of net assets acquired 112.1 85.2 197.3 Prepaid pension asset 122.2 122.2 Deferred income taxes 49.9 49.9 Investments in subsidiaries and other assets 3,839.0 1,278.2 1,161.6 (6,131.8) 147.0 Total assets $4,046.2 $ 2,693.7 $ 3,713.3 $(6,131.8) $4,321.4 Liabilities and stockholders equity: Accounts payable $ 3.4 $ 103.7 $ 129.3 $ $ 236.4 Accrued liabilities 935.3 |
| Commitments and Contingencies | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Commitment and Contingencies | |
| Commitments and Contingencies Disclosure [Text Block] | Note 11. Commitments and Contingencies The Company is subject to various domestic and international environmental laws and regulations that govern the discharge of pollutants and disposal of wastes, and which may require that it investigate and remediate the effects of the release or disposal of materials at sites associated with past and present operations. The Company could incur substantial cleanup costs, fines, and civil or criminal sanctions, third party property damage or personal injury claims as a result of violations or liabilities under these laws or noncompliance with environmental permits required at its facilities. The Company is currently involved in the investigation and remediation of a number of its current and former sites, as well as third party sites. Environmental liabilities are recorded when the Companys liability is probable and the costs are reasonably estimable. In many cases, however, the Company is not able to determine whether it is liable or, if liability is probable, to reasonably estimate the loss or range of loss. Estimates of the Companys liability remain subject to additional uncertainties, including the nature and extent of site contamination, available remediation alternatives, the extent of corrective actions that may be required, and the number, participation, and financial condition of other potentially responsible parties (PRPs). The Company expects that it will adjust its accruals to reflect new information as appropriate. Future adjustments could have a material adverse effect on the Companys results of operations in a given period, but the Company cannot reliably predict the amounts of such future adjustments. Based on currently available information, the Company does not believe that there is a reasonable possibility that a loss exceeding the amount already accrued for any of the sites with which the Company is currently associated (either individually or in the aggregate) will be an amount that would be material to a decision to buy or sell the Companys securities. Future developments, administrative actions or liabilities relating to environmental matters, however, could have a material adverse effect on the Companys financial condition or results of operations. At June 30, 2009, the Companys reserves for environmental remediation obligations totaled approximately $18 million, of which $8 million was included in other current liabilities. The reserve includes estimated probable future costs of $5 million for federal Superfund and comparable state-managed sites; $7 million for formerly owned or operated sites for which the Company has remediation or indemnification obligations; $3 million for owned or controlled sites at which Company operations have been discontinued; and $3 million for sites utilized by the Company in its ongoing operations. The Company continues to evaluate whether it may be able to recover a portion of future costs for environmental liabilities from third parties. The timing of expenditures depends on a number of factors that vary by site. The Company expects that it will expend present accruals over many years and that remediation of all sit |
| Document Information | |
| 6 Months Ended
Jun. 30, 2009 USD / shares | |
| Document Information | |
| Document Type | 10-Q |
| Amendment Flag | false |
| Document Period End Date | 2009-06-30 |
| Entity Information (USD $) | |||
| 6 Months Ended
Jun. 30, 2009 | Jul. 29, 2009
| Jun. 30, 2008
| |
| Entity Information | |||
| Trading Symbol | ATI | ||
| Entity Registrant Name | ALLEGHENY TECHNOLOGIES INCORPORATED | ||
| Entity Central Index Key | 0001018963 | ||
| Entity Tax Identification Number | 251792394 | ||
| Entity Incorporation, State Country Name | Delaware | ||
| Current Fiscal Year End Date | --12-31 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Voluntary Filers | No | ||
| Entity Current Reporting Status | Yes | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Public Float | $5,930,000,000 | ||
| Entity Common Stock, Shares Outstanding | 98,073,310 |
