Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Oct. 23, 2015 | Jun. 30, 2014 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-Q | ||
Document Period End Date | Sep. 30, 2015 | ||
Amendment Flag | false | ||
Entity Registrant Name | ALLEGHENY TECHNOLOGIES INCORPORATED | ||
Entity Central Index Key | 1,018,963 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 109,208,000 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | Q3 | ||
Entity Public Float | $ 4,900,000,000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash and cash equivalents | $ 197.5 | $ 269.5 |
Accounts receivable, net of allowances for doubtful accounts of $4.7 million and $4.8 million as of September 30, 2015 and December 31, 2014, respectively | 497.5 | 603.6 |
Inventories, net | 1,356.1 | 1,472.8 |
Prepaid expenses and other current assets | 47.5 | 136.2 |
Total current assets | 2,098.6 | 2,482.1 |
Property, plant and equipment, net | 2,938.2 | 2,961.8 |
Cost in excess of net assets acquired | 780.2 | 780.4 |
Other assets | 344.1 | 358.3 |
Total assets | 6,161.1 | 6,582.6 |
Current Liabilities: | ||
Accounts payable | 367.1 | 556.7 |
Accrued liabilities | 329.8 | 323.2 |
Deferred income taxes | 36.2 | 62.2 |
Short-term debt and current portion of long-term debt | 4 | 17.8 |
Total current liabilities | 737.1 | 959.9 |
Long-term debt | 1,501.6 | 1,509.1 |
Accrued postretirement benefits | 388.9 | 415.8 |
Pension liabilities | 713 | 739.3 |
Deferred income taxes | 190.7 | 80.9 |
Other long-term liabilities | 112.2 | 156.2 |
Total liabilities | 3,643.5 | 3,861.2 |
Redeemable noncontrolling interest | 12.1 | 12.1 |
ATI Stockholders' Equity: | ||
Preferred stock, par value $0.10: authorized-50,000,000 shares; issued-none | 0 | 0 |
Common stock, par value $0.10: authorized-500,000,000 shares; issued-109,695,171 shares at September 30, 2015 and December 31, 2014; outstanding- 109,208,000 shares at September 30, 2015 and 108,710,914 shares at December 31, 2014 | 11 | 11 |
Additional paid-in capital | 1,158.8 | 1,164.2 |
Retained earnings | 2,181.7 | 2,398.9 |
Treasury stock: 487,171 shares at September 30, 2015 and 984,257 shares at December 31, 2014 | (20.4) | (44.3) |
Accumulated other comprehensive loss, net of tax | (925.4) | (931.4) |
Total ATI stockholders’ equity | 2,405.7 | 2,598.4 |
Noncontrolling interests | ||
Noncontrolling interests | 99.8 | 110.9 |
Total Equity | 2,505.5 | 2,709.3 |
Total Liabilities and Equity | $ 6,161.1 | $ 6,582.6 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Allowances for doubtful accounts | $ 4.7 | $ 4.8 |
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, issued | 109,695,171 | 109,695,171 |
Common stock, oustanding | 109,208,000 | 108,710,914 |
Treasury stock | 487,171 | 984,257 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 832.7 | $ 1,069.6 | $ 2,980.7 | $ 3,175.9 |
Costs and expenses: | ||||
Cost of sales | 861.4 | 972.6 | 2,822.9 | 2,919.2 |
Selling and administrative expenses | 62.5 | 68.7 | 198 | 202.1 |
Income (loss) before interest, other income and income taxes | (91.2) | 28.3 | (40.2) | 54.6 |
Interest expense, net | (27.5) | (25.2) | (81) | (82.8) |
Other income, net | 0.8 | 1 | 2.3 | 2.9 |
Income (loss) from continuing operations before income taxes | (117.9) | 4.1 | (118.9) | (25.3) |
Income tax provision (benefit) | 23.4 | 0.5 | 23.7 | (12.4) |
Income (loss) from continuing operations | (141.3) | 3.6 | (142.6) | (12.9) |
Income (loss) from discontinued operations, net of tax | 0 | (0.7) | 0 | (2.8) |
Net income (loss) | (141.3) | 2.9 | (142.6) | (15.7) |
Less: Net income attributable to noncontrolling interests | 3.3 | 3.6 | 8.4 | 9 |
Net income (loss) attributable to ATI | $ (144.6) | $ (0.7) | $ (151) | $ (24.7) |
Continuing operations attributable to ATI per common share (in dollars per share) | $ (1.35) | $ 0 | $ (1.41) | $ (0.20) |
Discontinued operations attributable to ATI per common share (in dollars per share) | 0 | (0.01) | 0 | (0.03) |
Basic net loss attributable to ATI per common share (in dollars per share) | (1.35) | (0.01) | (1.41) | (0.23) |
Continuing operations attributable to ATI per common share (in dollars per share) | (1.35) | 0 | (1.41) | (0.20) |
Discontinued operations attributable to ATI per common share (in dollars per share) | 0 | (0.01) | 0 | (0.03) |
Diluted net loss attributable to ATI per common share (in dollars per share) | (1.35) | (0.01) | (1.41) | (0.23) |
Dividends declared per common share (in dollars per share) | $ 0.18 | $ 0.18 | $ 0.54 | $ 0.54 |
Loss from continuing operations, net of tax | $ (144.6) | $ 0 | $ (151) | $ (21.9) |
Loss from discontinued operations, net of tax | $ 0 | $ (0.7) | $ 0 | $ (2.8) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (141.3) | $ 2.9 | $ (142.6) | $ (15.7) |
Currency translation adjustment | ||||
Unrealized net change arising during the period | (16.2) | (16.6) | (18.7) | (12.2) |
Unrealized holding gain on securities | ||||
Net gain (loss) arising during the period | 0 | 0 | (0.1) | 0.1 |
Derivatives | ||||
Net derivatives gain (loss) on hedge transactions | (26.8) | 28 | (18.7) | 50.1 |
Reclassification to net loss of net realized gain | (3.3) | (2.6) | (8.1) | (1) |
Income taxes on derivative transactions | (11.6) | 9.8 | (10.3) | 18.9 |
Total | (18.5) | 15.6 | (16.5) | 30.2 |
Postretirement benefit plans | ||||
Amortization of net actuarial loss | 18.8 | 22.1 | 56.2 | 66.1 |
Amortization to net loss of net prior service cost (credits) | 1.5 | (0.2) | 4.5 | (0.5) |
Income taxes on postretirement benefit plans | 7.8 | 8.5 | 23.2 | 25.3 |
Total | 12.5 | 13.4 | 37.5 | 40.3 |
Other comprehensive income (loss), net of tax | (22.2) | 12.4 | 2.2 | 58.4 |
Comprehensive income (loss) | (163.5) | 15.3 | (140.4) | 42.7 |
Less: Comprehensive income attributable to noncontrolling interests | (0.8) | 5.4 | 4.6 | 7.8 |
Comprehensive income (loss) attributable to ATI | $ (162.7) | $ 9.9 | $ (145) | $ 34.9 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Activities: | ||
Net loss | $ (142.6) | $ (15.7) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 141.4 | 131.6 |
Deferred taxes | 9.6 | 15 |
Changes in operating asset and liabilities: | ||
Inventories | 116.7 | (88.6) |
Accounts receivable | 106.1 | (89.9) |
Accounts payable | (189.7) | 8 |
Retirement benefits | 7.9 | 19.3 |
Accrued income taxes | 61 | (25.1) |
Accrued liabilities and other | (1.5) | 7.2 |
Cash provided by (used in) operating activities | 108.9 | (38.2) |
Investing Activities: | ||
Purchases of property, plant and equipment | (99.5) | (157.5) |
Purchases of businesses, net of cash acquired | (0.5) | (92.5) |
Asset disposals and other | 0 | 1.9 |
Cash used in investing activities | (100) | (248.1) |
Financing Activities: | ||
Payments on long-term debt and capital leases | (23.3) | (414.7) |
New borrowings under credit facilities | 1.7 | 0 |
Dividends paid to stockholders | (57.9) | (57.8) |
Exercises of stock options and other | 0 | 0.1 |
Shares repurchased for income tax withholding on share-based compensation | (1.4) | (3.9) |
Cash used in financing activities | (80.9) | (476.3) |
Increase (decrease) in cash and cash equivalents | ||
Decrease in cash and cash equivalents | (72) | (762.6) |
Cash and cash equivalents at beginning of period | 269.5 | 1,026.8 |
Cash and cash equivalents at end of period | $ 197.5 | $ 264.2 |
STATEMENTS OF CHANGES IN CONSOL
STATEMENTS OF CHANGES IN CONSOLIDATED EQUITY - USD ($) $ in Millions | Total | [CommonStockMember] | [AdditionalPaidInCapitalMember] | [RetainedEarningsMember] | [TreasuryStockMember] | [AccumulatedOtherComprehensiveIncomeMember] | [NoncontrollingInterestMember] |
Total Stockholders' Equity at Dec. 31, 2013 | $ 2,994.7 | $ 11 | $ 1,185.9 | $ 2,490.1 | $ (79.6) | $ (713.2) | $ 100.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (15.6) | (24.7) | 9.1 | ||||
Net income (loss) | (15.7) | ||||||
Other comprehensive income (loss) | 58.4 | 59.6 | (1.2) | ||||
Cash dividends on common stock ($0.54 per share) | (57.8) | (57.8) | |||||
Conversion of convertible notes | 5 | (0.5) | 5.5 | ||||
Employee stock plans | (5.1) | (24) | (10.7) | 29.6 | |||
Total Stockholders' Equity at Sep. 30, 2014 | 2,979.6 | 11 | 1,161.9 | 2,396.4 | (44.5) | (653.6) | 108.4 |
Total Stockholders' Equity at Dec. 31, 2014 | 2,709.3 | 11 | 1,164.2 | 2,398.9 | (44.3) | (931.4) | 110.9 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (142.6) | (151) | 8.4 | ||||
Other comprehensive income (loss) | 2.2 | 6 | (3.8) | ||||
Cash dividends on common stock ($0.54 per share) | (57.9) | (57.9) | |||||
Noncontrolling Interest, Dividends | 16 | 16 | |||||
Redeemable noncontrolling interest | 0 | (0.3) | 0.3 | ||||
Employee stock plans | 10.5 | (5.4) | (8) | 23.9 | |||
Total Stockholders' Equity at Sep. 30, 2015 | $ 2,505.5 | $ 11 | $ 1,158.8 | $ 2,181.7 | $ (20.4) | $ (925.4) | $ 99.8 |
STATEMENTS OF CHANGES IN CONSO8
STATEMENTS OF CHANGES IN CONSOLIDATED EQUITY (PARENTHETICAL) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends on common stock per share | $ 0.54 | $ 0.54 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies The interim consolidated financial statements include the accounts of Allegheny Technologies Incorporated and its subsidiaries. Unless the context requires otherwise, “Allegheny Technologies”, “ATI” and “the Company” refer to Allegheny Technologies Incorporated and its subsidiaries. These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by U.S. generally accepted accounting principles for complete financial statements. In management’s opinion, all adjustments (which include only normal recurring adjustments) considered necessary for a fair presentation have been included. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2014 Annual Report on Form 10-K. The results of operations for these interim periods are not necessarily indicative of the operating results for any future period. The December 31, 2014 financial information has been derived from the Company’s audited consolidated financial statements. In 2013, the Company sold or announced closures of certain businesses that are reported as discontinued operations. Remaining closure activities were completed in 2014. Financial results for discontinued operations for the three and nine months ended September 30, 2014 were sales of $3.3 million and $14.9 million , respectively, and pretax losses of $0.5 million and $3.5 million , respectively. New Accounting Pronouncements Adopted In January 2015, the Company adopted changes issued by the Financial Accounting Standards Board (FASB) to the criteria for reporting discontinued operations. Under the new criteria, a disposal of a component of an entity is required to be reported as discontinued operations only if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The criteria that there be no significant continuing involvement in the operations of the component after the disposal transaction has been removed under the new guidance. The new guidance also requires the presentation of the assets and liabilities of a disposal group that includes a discontinued operation for each comparative period and requires additional disclosures about discontinued operations, including the major line items constituting the pretax profit or loss of the discontinued operation, certain cash flow information for the discontinued operation, expanded disclosures about an entity’s significant continuing involvement in a discontinued operation, and disclosures about a disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation. The provisions of the new guidance are effective for all disposals that occur for the Company beginning in fiscal year 2015. The adoption of these changes had no impact on the consolidated financial statements. Pending Accounting Pronouncements In July 2015, the FASB issued changes to simplify the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new inventory measurement requirements are effective for the Company’s 2017 fiscal year, and will replace the current inventory valuation guidance that requires the use of a lower of cost or market framework. This change in the measurement of inventory does not apply to inventory valued on a LIFO basis, which is the accounting basis used for most of the Company’s inventory. The adoption of these changes is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued new guidance on the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this guidance. This update will be effective for the Company beginning in fiscal year 2016, with early adoption permitted, and is applied on a retrospective basis. The Company plans to adopt this new guidance in the fourth quarter of fiscal year 2015. As of September 30, 2015 and December 31, 2014 , the Company had $9.8 million and $10.9 million , respectively, of debt issuance costs reported as assets on the consolidated balance sheet that will be reclassified to a reduction of the carrying amount of the debt liability upon the Company’s adoption of this new guidance. In August 2015, the FASB issued additional guidance on presentation of debt issuance costs specifically related to line-of-credit arrangements. This guidance indicated no objection to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. As such, the Company will continue to present such costs, as it does today, as an asset. In May 2014, the FASB issued changes to revenue recognition with customers. This update provides a five-step analysis of transactions to determine when and how revenue is recognized. An entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved a one-year deferral of the effective date of this new guidance resulting in it now being effective for the Company beginning in fiscal year 2018. This update may be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at September 30, 2015 and December 31, 2014 were as follows (in millions): September 30, December 31, Raw materials and supplies $ 235.0 $ 249.3 Work-in-process 1,052.2 1,184.1 Finished goods 190.0 172.2 Total inventories at current cost 1,477.2 1,605.6 Adjustment from current cost to LIFO cost basis 85.1 4.8 Inventory valuation reserves (152.9 ) (68.8 ) Progress payments (53.3 ) (68.8 ) Total inventories, net $ 1,356.1 $ 1,472.8 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 Company’s inventory is valued utilizing the LIFO costing methodology. Inventory of the Company’s non-U.S. operations is valued using average cost or FIFO methods. The effect of using the LIFO methodology to value inventory, rather than FIFO, decreased cost of sales by $80.3 million for the first nine months of 2015 , which was offset by an $80.3 million increase in cost of sales for the change in net realizable value reserves on the carrying value of LIFO-based inventory. The first nine months of 2014 results included a $47.9 million increase in cost of sales from using the LIFO costing methodology, which was offset by a $35.0 million decrease in costs of sales for the reduction in net realizable value reserves on the carrying value of LIFO-based inventory. The first nine months of 2015 and 2014 results included $16.6 million and $18.3 million , respectively, in inventory valuation charges related to the market-based valuation of industrial titanium products. |
Property Plant And Equipment
Property Plant And Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | Property, Plant and Equipment Property, plant and equipment at September 30, 2015 and December 31, 2014 was as follows (in millions): September 30, December 31, Land $ 30.3 $ 30.2 Buildings 1,048.2 1,048.9 Equipment and leasehold improvements 3,792.4 3,702.5 4,870.9 4,781.6 Accumulated depreciation and amortization (1,932.7 ) (1,819.8 ) Total property, plant and equipment, net $ 2,938.2 $ 2,961.8 The construction in progress portion of property, plant and equipment at September 30, 2015 was $73.7 million . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at September 30, 2015 and December 31, 2014 was as follows (in millions): September 30, December 31, Allegheny Technologies 5.875% Notes due 2023 (a) $ 500.0 $ 500.0 Allegheny Technologies 5.95% Notes due 2021 500.0 500.0 Allegheny Technologies 9.375% Notes due 2019 350.0 350.0 Allegheny Ludlum 6.95% debentures due 2025 150.0 150.0 ATI Ladish Series B 6.14% Notes due 2016 (b) — 11.9 ATI Ladish Series C 6.41% Notes due 2015 (c) — 10.3 U.S. revolving credit facilities — — Foreign credit facilities 1.7 — Industrial revenue bonds, due through 2020, and other 3.9 4.7 Total short-term and long-term debt 1,505.6 1,526.9 Short-term debt and current portion of long-term debt 4.0 17.8 Total long-term debt $ 1,501.6 $ 1,509.1 (a) Bearing interest at 6.625% effective February 15, 2015. (b) Includes fair value adjustments of $0.4 million at December 31, 2014 . (c) Includes fair value adjustments of $0.3 million at December 31, 2014 . During the first quarter of 2015, Standard & Poor’s (“S&P”) downgraded the Company’s credit rating one notch to BB+ from BBB-, and during the third quarter of 2015, Moody’s downgraded the Company’s credit rating one notch to Ba2 from Ba1. These downgrades resulted in an increase of the interest rate on the Senior Notes due 2023 (the “2023 Notes”) from 6.125% as of December 31, 2014 to 6.625% effective with the interest period beginning February 15, 2015. Additionally, on October 23, 2015, S&P downgraded the Company’s credit rating two notches, to BB-. This downgrade will result in an increase to the interest rate on the 2023 Notes to 7.125% , effective for the interest period beginning August 16, 2015, and represents an additional $2.5 million of interest expense measured on an annual basis. Future downgrades of the Company’s credit ratings by S&P or Moody’s could result in additional increases to the interest cost with respect to the 2023 Notes. Each notch of credit rating downgrade increases interest expense by 0.25% on the 2023 Notes, up to a maximum 4 notches for each of the two credit rating agencies, or a total 2.0% potential interest rate change, of which 1.25% has now occurred following the October 23, 2015 S&P credit rating change. During the third quarter of 2015, the Company prepaid $5.7 million in aggregate principal amount of its 6.14% ATI Ladish Series B senior notes due May 16, 2016 (the “Series B Notes”), representing all of the remaining outstanding Series B Notes. Also during the third quarter of 2015, the Company repaid the $10.0 million aggregate principal amount of its outstanding 6.41% ATI Ladish Series C senior notes, due September 2, 2015 (the “Series C Notes”). The Series B and C Notes were assumed by the Company in the 2011 Ladish acquisition. On September 23, 2015, the Company entered into a $400 million Asset Based Lending (“ABL”) Revolving Credit Facility, which includes a letter of credit sub-facility of up to $200 million . The ABL facility replaces a $400 million revolving credit facility originally entered into on July 31, 2007 (as amended, the “Prior Credit Facility”). Costs associated with entering into the ABL facility were $1.3 million , and are being amortized to interest expense over the 5 -year term of the facility. The ABL facility matures in September 2020 and is collateralized by the accounts receivable and inventory of the Company’s domestic operations. The applicable interest rate for borrowings under the ABL facility includes interest rate spreads based on available borrowing capacity that range between 1.25% and 1.75% for LIBOR-based borrowings and between 0.25% and 0.75% for base rate borrowings. Compared to the Prior Credit Facility, the ABL facility contains no leverage or interest coverage ratios but does contain a financial covenant whereby the Company must maintain a fixed charge coverage ratio of not less than 1.00 : 1.00 after an event of default has occurred or if the undrawn availability under ABL facility is less than the greater of (i) 10% of the then applicable maximum borrowing amount or (ii) $40.0 million . Additionally, the Company must demonstrate liquidity, as calculated in accordance with the terms of the agreement, of at least $500 million on the date that is 91 days prior to June 1, 2019, the maturity date of the 9.375% Senior Notes due 2019, and such liquidity is available until the notes are paid in full or refinanced. There was no impact on the Company’s outstanding debt as a result of the ABL facility. There were no outstanding borrowings made under the ABL facility as of September 30, 2015 , although approximately $4.6 million has been utilized to support the issuance of letters of credit. Average borrowings under the Prior Credit Facility for the first nine months of 2015 were $49.2 million , bearing an average annual interest rate of 2.4% . The Company has an additional separate credit facility for the issuance of letters of credit. As of September 30, 2015 , $32 million in letters of credit were outstanding under this facility. Shanghai STAL Precision Stainless Steel Company Limited (STAL), the Company’s Chinese joint venture company in which ATI has a 60% interest, has a separate $20 million revolving credit facility entered into in April 2015. Borrowings under the STAL revolving credit facility are in U.S. dollars based on U.S. interbank offered rates. The credit facility is supported solely by STAL’s financial capability without any guarantees from the joint venture partners. The credit facility requires STAL to maintain a minimum level of shareholders’ equity, and certain financial ratios. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging | Derivative Financial Instruments and Hedging As part of its risk management strategy, the Company, from time-to-time, utilizes derivative financial instruments to manage its exposure to changes in raw material prices, energy costs, foreign currencies, and interest rates. In accordance with applicable accounting standards, the Company accounts for most of these contracts as hedges. 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 in the consolidated statements 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. Under these contracts, which are generally accounted for as cash flow hedges, the price of the item being hedged is fixed at the time that the contract is entered into and the Company is obligated to make or receive a payment equal to the net change between this fixed price and the market price at the date the contract matures. The majority of ATI’s products are sold utilizing raw material surcharges and index mechanisms. However, as of September 30, 2015 , the Company had entered into financial hedging arrangements, primarily at the request of its customers, related to firm orders, for an aggregate notional amount of approximately 27 million pounds of nickel with hedge dates through 2020. The aggregate notional amount hedged is approximately 25% of a single year’s estimated nickel raw material purchase requirements. At September 30, 2015 , the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges for approximately 95% of its annual forecasted domestic requirements for 2015, approximately 90% for 2016, approximately 55% for 2017, and approximately 15% for 2018. While the majority of the Company’s direct export sales are transacted in U.S. dollars, foreign currency exchange contracts are used, from time-to-time, to limit transactional exposure to changes in currency exchange rates for those transactions denominated in a non-U.S. currency. The Company sometimes purchases foreign currency forward contracts that permit it to sell specified amounts of foreign currencies expected to be received from its export sales for pre-established U.S. dollar amounts at specified dates. The forward contracts are denominated in the same foreign currencies in which export sales are denominated. These contracts are designated as hedges of the variability in cash flows of a portion of the forecasted future export sales transactions which otherwise would expose the Company to foreign currency risk, primarily euros. At September 30, 2015 , the Company held euro forward sales contracts designated as hedges with a notional value of approximately 257 million euro with maturity dates through June 2018, including approximately 54 million euro with maturities in 2015. In addition, the Company may also designate cash balances held in foreign currencies as hedges of forecasted foreign currency transactions. During the first nine months of 2015, the Company net settled 222.5 million euro notional value of foreign currency forward contracts designated as cash flow hedges with 2015 and 2016 maturity dates, receiving cash proceeds of $51 million which is reported in cash provided by operating activities on the consolidated cash flow statement. Deferred gains on these settled cash flow hedges currently recognized in accumulated other comprehensive income will be reclassified to earnings when the underlying transactions occur. The Company subsequently entered into 211 million euro notional value of foreign currency forward contracts designated as fair value hedges in the first nine months of 2015, all with 2015 and 2016 maturity dates and of which 130.5 million euro notional was outstanding as of September 30, 2015 . The Company recorded a $1.8 million charge and $5.6 million benefit in costs of sales on the consolidated statement of operations in the third quarter and nine months ended September 30, 2015 , respectively, for mark-to-market changes on these fair value hedges. The Company may enter into derivative interest rate contracts to maintain a reasonable balance between fixed- and floating-rate debt. There were no unsettled derivative financial instruments related to debt balances for the periods presented. There are no credit risk-related contingent features in the Company’s derivative contracts, and the contracts contained no provisions under which the Company has posted, or would be required to post, collateral. The counterparties to the Company’s derivative contracts are substantial and creditworthy commercial banks that are recognized market makers. The Company controls its credit exposure by diversifying across multiple counterparties and by monitoring credit ratings and credit default swap spreads of its counterparties. The Company also enters into master netting agreements with counterparties when possible. The fair values of the Company’s derivative financial instruments are presented below, representing the gross amounts recognized which are not offset by counterparty or by type of item hedged. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy, which includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs derived principally from or corroborated by observable market data. (In millions) Asset derivatives Balance sheet location September 30, December 31, Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets $ 12.3 $ 23.6 Nickel and other raw material contracts Prepaid expenses and other current assets — 1.1 Foreign exchange contracts Other assets 18.1 28.3 Nickel and other raw material contracts Other assets — 0.5 Total derivatives designated as hedging instruments 30.4 53.5 Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets — 6.4 Total derivatives not designated as hedging instruments — 6.4 Total asset derivatives $ 30.4 $ 59.9 Liability derivatives Balance sheet location Derivatives designated as hedging instruments: Natural gas contracts Accrued liabilities $ 13.6 $ 10.2 Nickel and other raw material contracts Accrued liabilities 19.6 5.8 Foreign exchange contracts Accrued liabilities 0.6 — Electricity contracts Accrued liabilities — 0.1 Natural gas contracts Other long-term liabilities 9.4 7.9 Nickel and other raw material contracts Other long-term liabilities 19.8 3.0 Foreign exchange contracts Other long-term liabilities 0.3 — Total derivatives designated as hedging instruments 63.3 27.0 Derivatives not designated as hedging instruments: Foreign exchange contracts Accrued liabilities 1.1 — Total derivatives not designated as hedging instruments 1.1 — Total liability derivatives $ 64.4 $ 27.0 For derivative financial instruments that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged item affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current period results. For derivative financial instruments that are designated as fair value hedges, changes in the fair value of these derivatives are recognized in current period results. The Company did not use net investment hedges for the periods presented. The effects of derivative instruments in the tables below are presented net of related income taxes. Assuming market prices remain constant with those at September 30, 2015 , a loss of $13.2 million is expected to be recognized over the next 12 months. Activity with regard to derivatives designated as cash flow hedges for the three and nine month periods ended September 30, 2015 and 2014 was as follows (in millions): Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (a) Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (b) Derivatives in Cash Flow Three months ended September 30, Three months ended September 30, Three months ended September 30, Hedging Relationships 2015 2014 2015 2014 2015 2014 Nickel and other raw material contracts $ (13.5 ) $ (4.7 ) $ (2.4 ) $ 1.3 $ — $ — Natural gas contracts (3.7 ) (3.0 ) (1.6 ) — — — Electricity contracts — (0.2 ) — (0.1 ) — — Foreign exchange contracts 0.7 25.1 6.0 0.4 — — Total $ (16.5 ) $ 17.2 $ 2.0 $ 1.6 $ — $ — Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (a) Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (b) Derivatives in Cash Flow Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, Hedging Relationships 2015 2014 2015 2014 2015 2014 Nickel and other raw material contracts $ (26.6 ) $ 5.4 $ (7.0 ) $ 0.5 $ — $ — Natural gas contracts (9.5 ) (1.7 ) (6.4 ) 2.4 — — Electricity contracts — 0.6 (0.1 ) 0.4 — — Foreign exchange contracts 24.6 26.5 18.5 (2.7 ) — — Total $ (11.5 ) $ 30.8 $ 5.0 $ 0.6 $ — $ — (a) The gains (losses) reclassified from accumulated OCI into income related to the effective portion of the derivatives are presented in cost of sales in the same period or periods in which the hedged item affects earnings. (b) The gains (losses) recognized in income on derivatives related to the ineffective portion and the amount excluded from effectiveness testing are presented in selling and administrative expenses. The disclosures of gains or losses presented above for nickel and other raw material contracts and foreign currency contracts do not take into account the anticipated underlying transactions. Since these derivative contracts represent hedges, the net effect of any gain or loss on results of operations may be fully or partially offset. During the first quarter of 2015, the Company net settled 40.3 million euro notional value of foreign currency forward contracts that were not designated as hedges, receiving cash proceeds of $11.8 million which is reported in cash provided by operating activities on the consolidated cash flow statement. The Company also entered into 33 million euro notional value of foreign currency forward contracts not designated as hedges in the first quarter of 2015, of which 32 million euro notional value are outstanding as of September 30, 2015 , with maturity dates into the third quarter of 2016. Derivatives that are not designated as hedging instruments were as follows: (In millions) Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives Not Designated Three months ended September 30, Nine months ended September 30, as Hedging Instruments 2015 2014 2015 2014 Foreign exchange contracts $ — $ 3.1 $ 3.0 $ 4.2 Changes in the fair value of foreign exchange contract derivatives not designated as hedging instruments are recorded in cost of sales. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The estimated fair value of financial instruments at September 30, 2015 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Carrying Amount Total Estimated Fair Value Quoted Prices in Active Markets for Identical Assets(Level 1) Significant Observable Inputs (Level 2) Cash and cash equivalents $ 197.5 $ 197.5 $ 197.5 $ — Derivative financial instruments: Assets 30.4 30.4 — 30.4 Liabilities 64.4 64.4 — 64.4 Debt 1,505.6 1,404.4 1,398.8 5.6 The estimated fair value of financial instruments at December 31, 2014 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Carrying Amount Total Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Cash and cash equivalents $ 269.5 $ 269.5 $ 269.5 $ — Derivative financial instruments: Assets 59.9 59.9 — 59.9 Liabilities 27.0 27.0 — 27.0 Debt 1,526.9 1,616.0 1,589.1 26.9 In accordance with accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards established three levels of a fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. No transfers between levels were reported in 2015 or 2014 . The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash and cash equivalents: Fair value was determined using Level 1 information. Derivative financial instruments: Fair values for derivatives were measured using exchange-traded prices for the hedged items. The fair value was determined using Level 2 information, including consideration of counterparty risk and the Company’s credit risk. Short-term and long-term debt: The fair values of the Company’s publicly traded debt were based on Level 1 information. The fair values of the other short-term and long-term debt were determined using Level 2 information. |
Pension Plans and Other Postret
Pension Plans and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension Plans and Other Postretirement Benefits | Pension Plans and Other Postretirement Benefits The Company has defined benefit pension plans or 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. For the three month periods ended September 30, 2015 and 2014 , the components of pension expense and components of other postretirement benefit expense for the Company’s defined benefit plans included the following (in millions): Pension Benefits Other Postretirement Benefits Three months ended September 30, Three months ended September 30, 2015 2014 2015 2014 Service cost - benefits earned during the year $ 5.7 $ 7.3 $ 0.7 $ 0.7 Interest cost on benefits earned in prior years 30.3 33.4 4.4 6.0 Expected return on plan assets (42.1 ) (46.1 ) — (0.1 ) Amortization of prior service cost (credit) 0.3 0.6 1.2 (0.8 ) Amortization of net actuarial loss 15.1 18.5 3.7 3.6 Total retirement benefit expense $ 9.3 $ 13.7 $ 10.0 $ 9.4 For the nine month periods ended September 30, 2015 and 2014 , the components of pension expense and components of other postretirement benefit expense for the Company’s defined benefit plans included the following (in millions): Pension Benefits Other Postretirement Benefits Nine months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Service cost - benefits earned during the year $ 17.1 $ 22.0 $ 2.1 $ 2.1 Interest cost on benefits earned in prior years 90.8 100.2 13.4 18.0 Expected return on plan assets (126.2 ) (138.2 ) — (0.2 ) Amortization of prior service cost (credit) 0.9 1.8 3.6 (2.3 ) Amortization of net actuarial loss 45.3 55.5 10.9 10.6 Termination benefits — 0.3 — — Total retirement benefit expense $ 27.9 $ 41.6 $ 30.0 $ 28.2 Other postretirement benefit costs for a defined contribution plan were $0.7 million and $2.0 million for the three and nine months ended September 30, 2014 , respectively. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The provision for income taxes for the third quarter 2015 was $23.4 million , which includes a $63.9 million valuation allowance on a portion of the Company’s deferred tax assets with future expiration dates. Through the nine months ended September 30, 2015, the Company's results reflected a three year cumulative loss from U.S. operations; prior thereto, the Company's historical results reflected a three year cumulative profit. The three year cumulative loss limits the ability to consider other positive subjective evidence, such as projections of future results, to assess the realizability of deferred tax assets. As a result of this assessment, the Company established a valuation allowance during the three month period ended September 30, 2015. The non-cash charge was comprised of a $56.6 million valuation allowance for certain state and federal tax benefits recognized in prior years, and a $7.3 million valuation allowance recorded as part of the current year’s effective tax rate, representing approximately a 6% tax rate impact. Third quarter 2014 results included a provision for income taxes of $0.5 million , which included discrete tax benefits of $3.4 million primarily associated with adjustments to prior years’ and foreign taxes. For the nine months ended September 30, 2015 , the provision for income taxes was $23.7 million , compared to a benefit for income taxes of $12.4 million for the 2014 comparable period. In addition to the valuation allowance discussed above, the income tax rate in 2015 and 2014 is also impacted by the Company’s inability to use the federal domestic manufacturing deduction tax benefit due to net operating loss carryforwards. Year to date results for 2015 included discrete tax expense of $57.9 million , primarily due to the $63.9 million valuation allowance discussed above. The prior year to date period included discrete tax benefits of $7.8 million , primarily associated with adjustments to prior years’ and foreign taxes. A federal income tax refund of $59.9 million was received in the first quarter of 2015. Also in 2015, the Company resolved various uncertain tax position matters related to temporary differences which resulted in $60.9 million of the long-term liability for uncertain tax positions as of December 31, 2014 being reclassified to a deferred tax liability. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company operates in two business segments: High Performance Materials & Components and Flat Rolled Products. Effective with the third quarter 2015, the Company changed its method of determining business unit performance as internally reported to its senior management, CEO, and Board of Directors. Segment operating results are now reported excluding all effects of LIFO inventory accounting and any related changes in net realizable value inventory reserves which offset the Company’s aggregate net debit LIFO valuation balance. Additionally, segment operating results are now measured including all retirement benefit expense attributable to the business unit, for both current and former employees. Previously, the Company excluded defined benefit pension expense and all defined benefit and defined contribution postretirement medical and life insurance expense from segment operating profit. This change better aligns comparative operating performance following the 2014 U.S. defined benefit pension freeze for all non-represented employees and the change in 2015 to a company-wide defined contribution retirement plan structure. Under the Company’s previous reporting methodology, defined contribution retirement plan expense remained in segment operating results whereas defined benefit plan costs were excluded. Operating results for business segments, corporate and closed company and other expenses now include all applicable retirement benefit plan costs for pension and other postretirement benefits. For the three and nine month periods ended September 30, 2015 and 2014 , the amount of defined benefit pension expense and all defined benefit and defined contribution postretirement medical and life insurance expense included in business segment results, corporate expense and closed company and other expenses was as follows: (in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 High Performance Materials & Components $ 3.0 $ 5.1 $ 9.1 $ 15.6 Flat Rolled Products 14.7 15.6 44.1 46.8 Total 17.7 20.7 53.2 62.4 Corporate expenses 1.0 1.3 2.9 4.0 Closed company and other expenses 0.6 1.8 1.7 5.4 Total retirement benefit expense $ 19.3 $ 23.8 $ 57.8 $ 71.8 Management considers these changes to be a more useful method of measuring business unit financial performance based on changes to retirement benefit plans and the impact of the Company’s aggregate net debit LIFO position. The segment results below reflect these changes for all periods presented. The measure of segment operating profit also excludes income taxes, corporate expenses, net interest expense, closed company expenses and restructuring costs, if any. Discontinued operations are also excluded. Management believes segment operating profit, as defined, provides an appropriate measure of controllable operating results at the business segment level. Following is certain financial information with respect to the Company’s business segments for the periods indicated (in millions): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Total sales: High Performance Materials & Components $ 490.1 $ 527.1 $ 1,588.5 $ 1,562.6 Flat Rolled Products 377.8 587.0 1,516.0 1,747.1 867.9 1,114.1 3,104.5 3,309.7 Intersegment sales: High Performance Materials & Components 15.4 19.4 59.9 56.4 Flat Rolled Products 19.8 25.1 63.9 77.4 35.2 44.5 123.8 133.8 Sales to external customers: High Performance Materials & Components 474.7 507.7 1,528.6 1,506.2 Flat Rolled Products 358.0 561.9 1,452.1 1,669.7 $ 832.7 $ 1,069.6 $ 2,980.7 $ 3,175.9 Operating profit (loss): High Performance Materials & Components $ 18.8 $ 53.8 $ 136.1 $ 162.5 Flat Rolled Products (91.8 ) 6.1 (121.8 ) (32.7 ) Total operating profit (loss) (73.0 ) 59.9 14.3 129.8 LIFO and net realizable value reserves (0.2 ) (10.0 ) — (12.9 ) Corporate expenses (10.7 ) (11.4 ) (33.6 ) (37.3 ) Closed company and other expenses (6.5 ) (9.2 ) (18.6 ) (22.1 ) Interest expense, net (27.5 ) (25.2 ) (81.0 ) (82.8 ) Income (loss) from continuing operations before income taxes $ (117.9 ) $ 4.1 $ (118.9 ) $ (25.3 ) |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 9 Months Ended |
Sep. 30, 2015 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest The holders of the 15% noncontrolling interest in ATI Flowform Products have a put option to require the Company to purchase their equity interest at a redemption value determinable from a specified formula based on a multiple of EBITDA (subject to a fixed minimum linked to the original acquisition date value). The put option is fully exercisable beginning in the second quarter of 2017, and is also exercisable under certain other circumstances. The put option cannot be separated from the noncontrolling interest, and the combination of a noncontrolling interest and the redemption feature requires classification as redeemable noncontrolling interest in the consolidated balance sheet, separate from Stockholders’ Equity. The carrying amount of the redeemable noncontrolling interest approximates its maximum redemption value. Any subsequent change in maximum redemption value is adjusted through retained earnings. The adjustment to the carrying amount for the nine months ended September 30, 2015 reduced retained earnings by $0.3 million . The Company applied the two-class method of calculating earnings per share, and as such this adjustment to the carrying amount was reflected in earnings per share. The redeemable noncontrolling interest was $12.1 million as of September 30, 2015 and December 31, 2014 , which was unchanged from the acquisition date value. |
Per Share Information
Per Share Information | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Per Share Information | Per Share Information The following table sets forth the computation of basic and diluted income from continuing operations per common share: Three months ended Nine months ended (In millions, except per share amounts) September 30, September 30, 2015 2014 2015 2014 Numerator for basic loss from continuing operations per common share – Loss from continuing operations attributable to ATI $ (144.6 ) $ — $ (151.0 ) $ (21.9 ) Redeemable noncontrolling interest (Note 10) (0.2 ) — (0.3 ) — Numerator for diluted loss from continuing operations per common share – Loss from continuing operations available to ATI after assumed conversions $ (144.8 ) $ — $ (151.3 ) $ (21.9 ) Denominator for basic net loss per common share – weighted average shares 107.3 107.2 107.3 107.1 Effect of dilutive securities: Share-based compensation — 0.8 — — 4.25% Convertible Notes due 2014 — — — — Denominator for diluted net loss per common share – adjusted weighted average shares assuming conversions 107.3 108.0 107.3 107.1 Basic loss from continuing operations attributable to ATI per common share $ (1.35 ) $ — $ (1.41 ) $ (0.20 ) Diluted loss from continuing operations attributable to ATI per common share $ (1.35 ) $ — $ (1.41 ) $ (0.20 ) Common stock that would be issuable upon the assumed conversion of the 2014 Convertible Notes (prior to maturity on June 2, 2014) and other option equivalents and contingently issuable shares are excluded from the computation of contingently issuable shares, and therefore, from the denominator for diluted earnings per share, if the effect of inclusion is anti-dilutive. There were 0.8 million and 0.9 million anti-dilutive shares for the three and nine month periods ended September 30, 2015 , respectively, and 6.0 million anti-dilutive shares for the nine month period ended September 30, 2014 . There were no anti-dilutive shares for three months ended September 30, 2014 . |
Financial Information for Subsi
Financial Information for Subsidiary and Guarantor Parent | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Financial Information for Subsidiary and Guarantor Parent | Financial Information for Subsidiary and Guarantor Parent The payment obligations under the $150 million 6.95% debentures due 2025 issued by Allegheny Ludlum, LLC (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. ATI 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. Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Balance Sheets September 30, 2015 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ 5.4 $ 6.9 $ 185.2 $ — $ 197.5 Accounts receivable, net 0.1 125.2 372.2 — 497.5 Intercompany notes receivable — — 2,561.0 (2,561.0 ) — Inventories, net — 303.8 1,052.3 — 1,356.1 Prepaid expenses and other current assets 5.4 4.9 37.2 — 47.5 Total current assets 10.9 440.8 4,207.9 (2,561.0 ) 2,098.6 Property, plant and equipment, net 2.3 1,557.2 1,378.7 — 2,938.2 Cost in excess of net assets acquired — 126.6 653.6 — 780.2 Intercompany notes receivable — — 200.0 (200.0 ) — Investment in subsidiaries 6,150.7 37.7 — (6,188.4 ) — Other assets 22.7 33.8 287.6 — 344.1 Total assets $ 6,186.6 $ 2,196.1 $ 6,727.8 $ (8,949.4 ) $ 6,161.1 Liabilities and stockholders’ equity: Accounts payable $ 5.2 $ 160.7 $ 201.2 $ — $ 367.1 Accrued liabilities 35.4 84.7 209.7 — 329.8 Intercompany notes payable 1,386.6 1,174.4 — (2,561.0 ) — Deferred income taxes 36.2 — — — 36.2 Short-term debt and current portion of long-term debt 0.6 0.1 3.3 — 4.0 Total current liabilities 1,464.0 1,419.9 414.2 (2,561.0 ) 737.1 Long-term debt 1,350.8 150.2 0.6 — 1,501.6 Intercompany notes payable — 200.0 — (200.0 ) — Accrued postretirement benefits — 248.2 140.7 — 388.9 Pension liabilities 654.9 5.6 52.5 — 713.0 Deferred income taxes 190.7 — — — 190.7 Other long-term liabilities 20.7 20.9 70.6 — 112.2 Total liabilities 3,681.1 2,044.8 678.6 (2,761.0 ) 3,643.5 Redeemable noncontrolling interest — — 12.1 — 12.1 Total stockholders’ equity 2,505.5 151.3 6,037.1 (6,188.4 ) 2,505.5 Total liabilities and stockholders’ equity $ 6,186.6 $ 2,196.1 $ 6,727.8 $ (8,949.4 ) $ 6,161.1 Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Operations and Comprehensive Income For the three months ended September 30, 2015 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 286.3 $ 546.4 $ — $ 832.7 Cost of sales 9.2 363.5 488.7 — 861.4 Selling and administrative expenses 22.9 9.3 30.3 — 62.5 Income (loss) before interest, other income and income taxes (32.1 ) (86.5 ) 27.4 — (91.2 ) Interest income (expense), net (29.5 ) (12.6 ) 14.6 — (27.5 ) Other income (loss) including equity in income of unconsolidated subsidiaries (56.3 ) 0.2 0.7 56.2 0.8 Income (loss) from continuing operations before income tax provision (benefit) (117.9 ) (98.9 ) 42.7 56.2 (117.9 ) Income tax provision (benefit) 23.4 (35.1 ) 11.0 24.1 23.4 Income (loss) from continuing operations (141.3 ) (63.8 ) 31.7 32.1 (141.3 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (141.3 ) (63.8 ) 31.7 32.1 (141.3 ) Less: Net income attributable to noncontrolling interests — — 3.3 — 3.3 Net income (loss) attributable to ATI $ (141.3 ) $ (63.8 ) $ 28.4 $ 32.1 $ (144.6 ) Comprehensive income (loss) attributable to ATI $ (163.5 ) $ (60.5 ) $ 16.7 $ 44.6 $ (162.7 ) Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Operations and Comprehensive Income For the nine months ended September 30, 2015 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,231.5 $ 1,749.2 $ — $ 2,980.7 Cost of sales 22.0 1,296.5 1,504.4 — 2,822.9 Selling and administrative expenses 70.1 30.4 97.5 — 198.0 Income (loss) before interest, other income and income taxes (92.1 ) (95.4 ) 147.3 — (40.2 ) Interest income (expense), net (86.1 ) (37.3 ) 42.4 — (81.0 ) Other income (loss) including equity in income of unconsolidated subsidiaries 59.3 0.8 1.8 (59.6 ) 2.3 Income (loss) from continuing operations before income tax provision (benefit) (118.9 ) (131.9 ) 191.5 (59.6 ) (118.9 ) Income tax provision (benefit) 23.7 (46.3 ) 67.4 (21.1 ) 23.7 Income (loss) from continuing operations (142.6 ) (85.6 ) 124.1 (38.5 ) (142.6 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (142.6 ) (85.6 ) 124.1 (38.5 ) (142.6 ) Less: Net income attributable to noncontrolling interests — — 8.4 — 8.4 Net income (loss) attributable to ATI $ (142.6 ) $ (85.6 ) $ 115.7 $ (38.5 ) $ (151.0 ) Comprehensive income (loss) attributable to ATI $ (140.4 ) $ (76.0 ) $ 101.9 $ (30.5 ) $ (145.0 ) Condensed Statements of Cash Flows For the nine months ended September 30, 2015 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ (61.3 ) $ (171.1 ) $ 341.3 $ — $ 108.9 Investing Activities: Purchases of property, plant and equipment (0.1 ) (45.0 ) (54.4 ) — (99.5 ) Purchases of businesses, net of cash acquired — — (0.5 ) — (0.5 ) Net receipts/(payments) on intercompany activity — — (333.3 ) 333.3 — Asset disposals and other — 0.2 (0.2 ) — — Cash flows provided by (used in) investing activities (0.1 ) (44.8 ) (388.4 ) 333.3 (100.0 ) Financing Activities: Payments on long-term debt and capital leases (0.4 ) (0.1 ) (22.8 ) — (23.3 ) Net receipts/(payments) on intercompany activity 124.2 209.1 — (333.3 ) — Dividends paid to stockholders (57.9 ) — — — (57.9 ) Other (1.3 ) — 1.6 — 0.3 Cash flows provided by (used in) financing activities 64.6 209.0 (21.2 ) (333.3 ) (80.9 ) Increase (decrease) in cash and cash equivalents $ 3.2 $ (6.9 ) $ (68.3 ) $ — $ (72.0 ) Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Balance Sheets December 31, 2014 Guarantor Non-guarantor (In millions) Parent Subsidiary Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ 2.2 $ 13.8 $ 253.5 $ — $ 269.5 Accounts receivable, net 0.1 209.1 394.4 — 603.6 Intercompany notes receivable — — 2,390.8 (2,390.8 ) — Inventories, net — 387.7 1,085.1 — 1,472.8 Prepaid expenses and other current assets 63.7 13.2 59.3 — 136.2 Total current assets 66.0 623.8 4,183.1 (2,390.8 ) 2,482.1 Property, plant and equipment, net 2.2 1,545.1 1,414.5 — 2,961.8 Cost in excess of net assets acquired — 126.6 653.8 — 780.4 Intercompany notes receivable — — 200.0 (200.0 ) — Investment in subsidiaries 6,149.4 37.7 — (6,187.1 ) — Other assets 23.7 28.0 306.6 — 358.3 Total assets $ 6,241.3 $ 2,361.2 $ 6,758.0 $ (8,777.9 ) $ 6,582.6 Liabilities and stockholders’ equity: Accounts payable $ 4.5 $ 302.0 $ 250.2 $ — $ 556.7 Accrued liabilities 47.5 72.0 203.7 — 323.2 Intercompany notes payable 1,232.6 1,158.2 — (2,390.8 ) — Deferred income taxes 62.2 — — — 62.2 Short-term debt and current portion of long-term debt 0.5 0.1 17.2 — 17.8 Total current liabilities 1,347.3 1,532.3 471.1 (2,390.8 ) 959.9 Long-term debt 1,350.6 150.3 8.2 — 1,509.1 Intercompany notes payable — 200.0 — (200.0 ) — Accrued postretirement benefits — 153.0 262.8 — 415.8 Pension liabilities 675.5 6.0 57.8 — 739.3 Deferred income taxes 80.9 — — — 80.9 Other long-term liabilities 77.7 22.5 56.0 — 156.2 Total liabilities 3,532.0 2,064.1 855.9 (2,590.8 ) 3,861.2 Redeemable noncontrolling interest — — 12.1 — 12.1 Total stockholders’ equity 2,709.3 297.1 5,890.0 (6,187.1 ) 2,709.3 Total liabilities and stockholders’ equity $ 6,241.3 $ 2,361.2 $ 6,758.0 $ (8,777.9 ) $ 6,582.6 Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Operations and Comprehensive Income For the three months ended September 30, 2014 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 473.8 $ 595.8 $ — $ 1,069.6 Cost of sales 7.8 465.0 499.8 — 972.6 Selling and administrative expenses 27.5 12.2 29.0 — 68.7 Income (loss) before interest, other income and income taxes (35.3 ) (3.4 ) 67.0 — 28.3 Interest income (expense), net (26.4 ) (11.3 ) 12.5 — (25.2 ) Other income (loss) including equity in income of unconsolidated subsidiaries 65.8 0.4 0.5 (65.7 ) 1.0 Income (loss) from continuing operations before income tax provision (benefit) 4.1 (14.3 ) 80.0 (65.7 ) 4.1 Income tax provision (benefit) 0.5 (4.6 ) 23.4 (18.8 ) 0.5 Income (loss) from continuing operations 3.6 (9.7 ) 56.6 (46.9 ) 3.6 Income (loss) from discontinued operations, net of tax (0.7 ) — (0.7 ) 0.7 (0.7 ) Net income (loss) 2.9 (9.7 ) 55.9 (46.2 ) 2.9 Less: Net income attributable to noncontrolling interests — — 3.6 — 3.6 Net income (loss) attributable to ATI $ 2.9 $ (9.7 ) $ 52.3 $ (46.2 ) $ (0.7 ) Comprehensive income (loss) attributable to ATI $ 15.3 $ (7.8 ) $ 34.1 $ (31.7 ) $ 9.9 Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Operations and Comprehensive Income For the nine months ended September 30, 2014 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,415.5 $ 1,760.4 $ — $ 3,175.9 Cost of sales 34.9 1,429.8 1,454.5 — 2,919.2 Selling and administrative expenses 75.5 32.6 94.0 — 202.1 Income (loss) before interest, other income and income taxes (110.4 ) (46.9 ) 211.9 — 54.6 Interest income (expense), net (83.5 ) (33.1 ) 33.8 — (82.8 ) Other income (loss) including equity in income of unconsolidated subsidiaries 168.6 0.9 1.9 (168.5 ) 2.9 Income (loss) from continuing operations before income tax provision (benefit) (25.3 ) (79.1 ) 247.6 (168.5 ) (25.3 ) Income tax provision (benefit) (12.4 ) (27.7 ) 88.4 (60.7 ) (12.4 ) Income (loss) from continuing operations (12.9 ) (51.4 ) 159.2 (107.8 ) (12.9 ) Income (loss) from discontinued operations, net of tax (2.8 ) — (2.8 ) 2.8 (2.8 ) Net income (loss) (15.7 ) (51.4 ) 156.4 (105.0 ) (15.7 ) Less: Net income attributable to noncontrolling interests — — 9.0 — 9.0 Net income (loss) attributable to ATI $ (15.7 ) $ (51.4 ) $ 147.4 $ (105.0 ) $ (24.7 ) Comprehensive income (loss) attributable to ATI $ 42.7 $ (45.4 ) $ 136.8 $ (99.2 ) $ 34.9 Condensed Statements of Cash Flows For the nine months ended September 30, 2014 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ (60.0 ) $ (263.2 ) $ 285.0 $ — $ (38.2 ) Investing Activities: Purchases of property, plant and equipment (0.1 ) (117.2 ) (40.2 ) — (157.5 ) Purchases of businesses, net of cash acquired — — (92.5 ) — (92.5 ) Net receipts/(payments) on intercompany activity — — (905.4 ) 905.4 — Asset disposals and other — 1.6 0.3 — 1.9 Cash flows provided by (used in) investing activities (0.1 ) (115.6 ) (1,037.8 ) 905.4 (248.1 ) Financing Activities: Payments on long-term debt and capital leases (397.8 ) (0.1 ) (16.8 ) — (414.7 ) Net receipts/(payments) on intercompany activity 521.9 383.5 — (905.4 ) — Dividends paid to stockholders (57.8 ) — — — (57.8 ) Other (3.8 ) — — — (3.8 ) Cash flows provided by (used in) financing activities 62.5 383.4 (16.8 ) (905.4 ) (476.3 ) Increase (decrease) in cash and cash equivalents $ 2.4 $ 4.6 $ (769.6 ) $ — $ (762.6 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, for the three month period ended September 30, 2015 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Unrealized holding gains on securities Derivatives Total Attributable to ATI: Balance, June 30, 2015 $ (906.5 ) $ (19.0 ) $ (0.1 ) $ 18.3 $ (907.3 ) OCI before reclassifications — (12.1 ) — (16.5 ) (28.6 ) Amounts reclassified from AOCI (a) 12.5 (b) — (b) — (c) (2.0 ) 10.5 Net current-period OCI 12.5 (12.1 ) — (18.5 ) (18.1 ) Balance, September 30, 2015 $ (894.0 ) $ (31.1 ) $ (0.1 ) $ (0.2 ) $ (925.4 ) Attributable to noncontrolling interests: Balance, June 30, 2015 $ — $ $ 25.3 $ — $ — $ 25.3 OCI before reclassifications — (4.1 ) — — (4.1 ) Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — (4.1 ) — — (4.1 ) Balance, September 30, 2015 $ — $ 21.2 $ — $ — $ 21.2 The changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, for the nine month period ended September 30, 2015 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Unrealized holding gains on securities Derivatives Total Attributable to ATI: Balance, December 31, 2014 $ (931.5 ) $ (16.2 ) $ — $ 16.3 $ (931.4 ) OCI before reclassifications — (14.9 ) (0.1 ) (11.5 ) (26.5 ) Amounts reclassified from AOCI (a) 37.5 (b) — (b) — (c) (5.0 ) 32.5 Net current-period OCI 37.5 (14.9 ) (0.1 ) (16.5 ) 6.0 Balance, September 30, 2015 $ (894.0 ) $ (31.1 ) $ (0.1 ) $ (0.2 ) $ (925.4 ) Attributable to noncontrolling interests: Balance, December 31, 2014 $ — $ $ 25.0 $ — $ — $ 25.0 OCI before reclassifications — (3.8 ) — — (3.8 ) Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — (3.8 ) — — (3.8 ) Balance, September 30, 2015 $ — $ 21.2 $ — $ — $ 21.2 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 7). (b) No amounts were reclassified to earnings. (c) Amounts are included in cost of goods sold in the period or periods the hedged item affects earnings (see Note 5). The changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, for the three month period ended September 30, 2014 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Unrealized holding gains on securities Derivatives Total Attributable to ATI: Balance, June 30, 2014 $ (692.0 ) $ 22.7 $ 0.1 $ 5.0 $ (664.2 ) OCI before reclassifications — (18.4 ) — 17.2 (1.2 ) Amounts reclassified from AOCI (a) 13.4 (b) — (b) — (c) (1.6 ) 11.8 Net current-period OCI 13.4 (18.4 ) — 15.6 10.6 Balance, September 30, 2014 $ (678.6 ) $ 4.3 $ 0.1 $ 20.6 $ (653.6 ) Attributable to noncontrolling interests: Balance, June 30, 2014 $ — $ 24.1 $ — $ — $ 24.1 OCI before reclassifications — 1.8 — — 1.8 Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — 1.8 — — $ 1.8 Balance, September 30, 2014 $ — $ 25.9 $ — $ — $ 25.9 The changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, for the nine month period ended September 30, 2014 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Unrealized holding gains on securities Derivatives Total Attributable to ATI: Balance, December 31, 2013 $ (718.9 ) $ 15.3 $ — $ (9.6 ) $ (713.2 ) OCI before reclassifications — (11.0 ) 0.1 30.8 19.9 Amounts reclassified from AOCI (a) 40.3 (b) — (b) — (c) (0.6 ) 39.7 Net current-period OCI 40.3 (11.0 ) 0.1 30.2 59.6 Balance, September 30, 2014 $ (678.6 ) $ 4.3 $ 0.1 $ 20.6 $ (653.6 ) Attributable to noncontrolling interests: Balance, December 31, 2013 $ — $ 27.1 $ — $ — $ 27.1 OCI before reclassifications — (1.2 ) — — (1.2 ) Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — (1.2 ) — — $ (1.2 ) Balance, September 30, 2014 $ — $ 25.9 $ — $ — $ 25.9 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 7). (b) No amounts were reclassified to earnings. (c) Amounts are included in cost of goods sold in the period or periods the hedged item affects earnings (see Note 5). Reclassifications out of AOCI for the three and nine month periods ended September 30, 2015 and 2014 were as follows: Amount reclassified from AOCI Details about AOCI Components (In millions) Three months ended September 30, 2015 Three months ended September 30, 2014 Nine months ended September 30, 2015 Nine months ended September 30, 2014 Affected line item in the statements of operations Postretirement benefit plans Prior service (cost) credit $ (1.5 ) $ 0.2 (a) $ (4.5 ) $ 0.5 (a) Actuarial losses (18.8 ) (22.1 ) (a) (56.2 ) (66.1 ) (a) (20.3 ) (21.9 ) (c) (60.7 ) (65.6 ) (c) Total before tax (7.8 ) (8.5 ) (23.2 ) (25.3 ) Tax provision (benefit) $ (12.5 ) $ (13.4 ) $ (37.5 ) $ (40.3 ) Net of tax Derivatives Nickel and other raw material contracts $ (3.9 ) $ 2.1 (b) $ (11.4 ) $ 0.8 (b) Natural gas contracts (2.6 ) — (b) (10.4 ) 3.9 (b) Electricity contracts — (0.1 ) (b) (0.2 ) 0.7 (b) Foreign exchange contracts 9.8 0.6 (b) 30.1 (4.4 ) (b) 3.3 2.6 (c) 8.1 1.0 (c) Total before tax 1.3 1.0 3.1 0.4 Tax provision (benefit) $ 2.0 $ 1.6 $ 5.0 $ 0.6 Net of tax (a) Amounts are included in the computation of pension and other postretirement benefit expense, which is reported in both cost of goods sold and selling and administrative expenses. For additional information, see Note 7. (b) Amounts are included in cost of goods sold in the period or periods the hedged item affects earnings. For additional information, see Note 5. (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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various domestic and international environmental laws and regulations that govern the discharge of pollutants and disposal of wastes, and which may require that it investigate and remediate the effects of the release or disposal of materials at sites associated with past and present operations. The Company could incur substantial cleanup costs, fines, and civil or criminal sanctions, third party property damage or personal injury claims as a result of violations or liabilities under these laws or noncompliance with environmental permits required at its facilities. The Company is currently involved in the investigation and remediation of a number of its current and former sites, as well as third party sites. Environmental liabilities are recorded when the Company’s liability is probable and the costs are reasonably estimable. In many cases, however, the Company is not able to determine whether it is liable or, if liability is probable, to reasonably estimate the loss or range of loss. Estimates of the Company’s liability remain subject to additional uncertainties, including the nature and extent of site contamination, available remediation alternatives, the extent of corrective actions that may be required, and the number, participation, and financial condition of other potentially responsible parties (“PRPs”). The Company adjusts its accruals to reflect new information as appropriate. Future adjustments could have a material adverse effect on the Company’s consolidated results of operations in a given period, but the Company cannot reliably predict the amounts of such future adjustments. At September 30, 2015 , the Company’s reserves for environmental remediation obligations totaled approximately $16 million , of which $9 million was included in other current liabilities. The reserve includes estimated probable future costs of $4 million for federal Superfund and comparable state-managed sites; $10 million for formerly owned or operated sites for which the Company has remediation or indemnification obligations; $1 million for owned or controlled sites at which Company operations have been discontinued; and $1 million for sites utilized by the Company in its ongoing operations. The Company continues to evaluate whether it may be able to recover a portion of past and future costs for environmental liabilities from third parties and to pursue such recoveries where appropriate. Based on currently available information, it is reasonably possible that costs for recorded matters may exceed the Company’s recorded reserves by as much as $18 million . However, future investigation or remediation activities may result in the discovery of additional hazardous materials, potentially higher levels of contamination than discovered during prior investigation, and may impact costs of the success or lack thereof in remedial solutions. Therefore, future developments, administrative actions or liabilities relating to environmental matters could have a material adverse effect on the Company’s consolidated financial condition or results of operations. The timing of expenditures depends on a number of factors that vary by site. The Company expects that it will expend present accruals over many years and that remediation of all sites with which it has been identified will be completed within thirty years. See Note 20. Commitments and Contingencies to the Company’s consolidated financial statements in the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2014 for a discussion of legal proceedings affecting the Company. A number of other lawsuits, claims and proceedings have been or may be asserted against the Company relating to the conduct of its currently and formerly owned businesses, including those pertaining to product liability, patent infringement, commercial, government contracting, construction, employment, employee and retiree benefits, taxes, environmental, health and safety and occupational disease, and stockholder and corporate governance matters. While the outcome of litigation cannot be predicted with certainty, and some of these lawsuits, claims or proceedings may be determined adversely to the Company, management does not believe that the disposition of any such pending matters is likely to have a material adverse effect on the Company’s financial condition or liquidity, although the resolution in any reporting period of one or more of these matters could have a material adverse effect on the Company’s consolidated results of operations for that period. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On October 15, 2015, in response to business conditions, the Company commenced a reduction in force among salaried employees within the High Performance Materials & Components segment and the ATI Corporate office. A charge of approximately $6 million will be recognized in the fourth quarter 2015 for severance and other post-employment benefits arising from the reduction in force. The $6 million in cash costs for the termination benefits will be paid over a period of up to 12 months. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis Of Accounting | The interim consolidated financial statements include the accounts of Allegheny Technologies Incorporated and its subsidiaries. Unless the context requires otherwise, “Allegheny Technologies”, “ATI” and “the Company” refer to Allegheny Technologies Incorporated and its subsidiaries. These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by U.S. generally accepted accounting principles for complete financial statements. In management’s opinion, all adjustments (which include only normal recurring adjustments) considered necessary for a fair presentation have been included. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2014 Annual Report on Form 10-K. The results of operations for these interim periods are not necessarily indicative of the operating results for any future period. The December 31, 2014 financial information has been derived from the Company’s audited consolidated financial statements. In 2013, the Company sold or announced closures of certain businesses that are reported as discontinued operations. Remaining closure activities were completed in 2014. Financial results for discontinued operations for the three and nine months ended September 30, 2014 were sales of $3.3 million and $14.9 million , respectively, and pretax losses of $0.5 million and $3.5 million , respectively. |
New Accounting Pronouncements | New Accounting Pronouncements Adopted In January 2015, the Company adopted changes issued by the Financial Accounting Standards Board (FASB) to the criteria for reporting discontinued operations. Under the new criteria, a disposal of a component of an entity is required to be reported as discontinued operations only if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. The criteria that there be no significant continuing involvement in the operations of the component after the disposal transaction has been removed under the new guidance. The new guidance also requires the presentation of the assets and liabilities of a disposal group that includes a discontinued operation for each comparative period and requires additional disclosures about discontinued operations, including the major line items constituting the pretax profit or loss of the discontinued operation, certain cash flow information for the discontinued operation, expanded disclosures about an entity’s significant continuing involvement in a discontinued operation, and disclosures about a disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation. The provisions of the new guidance are effective for all disposals that occur for the Company beginning in fiscal year 2015. The adoption of these changes had no impact on the consolidated financial statements. Pending Accounting Pronouncements In July 2015, the FASB issued changes to simplify the measurement of inventory valuation at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The new inventory measurement requirements are effective for the Company’s 2017 fiscal year, and will replace the current inventory valuation guidance that requires the use of a lower of cost or market framework. This change in the measurement of inventory does not apply to inventory valued on a LIFO basis, which is the accounting basis used for most of the Company’s inventory. The adoption of these changes is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued new guidance on the presentation of debt issuance costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this guidance. This update will be effective for the Company beginning in fiscal year 2016, with early adoption permitted, and is applied on a retrospective basis. The Company plans to adopt this new guidance in the fourth quarter of fiscal year 2015. As of September 30, 2015 and December 31, 2014 , the Company had $9.8 million and $10.9 million , respectively, of debt issuance costs reported as assets on the consolidated balance sheet that will be reclassified to a reduction of the carrying amount of the debt liability upon the Company’s adoption of this new guidance. In August 2015, the FASB issued additional guidance on presentation of debt issuance costs specifically related to line-of-credit arrangements. This guidance indicated no objection to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. As such, the Company will continue to present such costs, as it does today, as an asset. In May 2014, the FASB issued changes to revenue recognition with customers. This update provides a five-step analysis of transactions to determine when and how revenue is recognized. An entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In July 2015, the FASB approved a one-year deferral of the effective date of this new guidance resulting in it now being effective for the Company beginning in fiscal year 2018. This update may be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying this update recognized at the date of initial application. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. |
Inventory | Inventories are stated at the lower of cost (last-in, first-out (“LIFO”), first-in, first-out (“FIFO”), and average cost methods) or market, less progress payments. Most of the Company’s inventory is valued utilizing the LIFO costing methodology. Inventory of the Company’s non-U.S. operations is valued using average cost or FIFO methods. |
Derivatives | For derivative financial instruments that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged item affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current period results. For derivative financial instruments that are designated as fair value hedges, changes in the fair value of these derivatives are recognized in current period results. The Company did not use net investment hedges for the periods presented. The effects of derivative instruments in the tables below are presented net of related income taxes. As part of its risk management strategy, the Company, from time-to-time, utilizes derivative financial instruments to manage its exposure to changes in raw material prices, energy costs, foreign currencies, and interest rates. In accordance with applicable accounting standards, the Company accounts for most of these contracts as hedges. 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 in the consolidated statements 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. Under these contracts, which are generally accounted for as cash flow hedges, the price of the item being hedged is fixed at the time that the contract is entered into and the Company is obligated to make or receive a payment equal to the net change between this fixed price and the market price at the date the contract matures. The majority of ATI’s products are sold utilizing raw material surcharges and index mechanisms. However, as of September 30, 2015 , the Company had entered into financial hedging arrangements, primarily at the request of its customers, related to firm orders, for an aggregate notional amount of approximately 27 million pounds of nickel with hedge dates through 2020. The aggregate notional amount hedged is approximately 25% of a single year’s estimated nickel raw material purchase requirements. At September 30, 2015 , the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges for approximately 95% of its annual forecasted domestic requirements for 2015, approximately 90% for 2016, approximately 55% for 2017, and approximately 15% for 2018. While the majority of the Company’s direct export sales are transacted in U.S. dollars, foreign currency exchange contracts are used, from time-to-time, to limit transactional exposure to changes in currency exchange rates for those transactions denominated in a non-U.S. currency. The Company sometimes purchases foreign currency forward contracts that permit it to sell specified amounts of foreign currencies expected to be received from its export sales for pre-established U.S. dollar amounts at specified dates. The forward contracts are denominated in the same foreign currencies in which export sales are denominated. These contracts are designated as hedges of the variability in cash flows of a portion of the forecasted future export sales transactions which otherwise would expose the Company to foreign currency risk, primarily euros. At September 30, 2015 , the Company held euro forward sales contracts designated as hedges with a notional value of approximately 257 million euro with maturity dates through June 2018, including approximately 54 million euro with maturities in 2015. In addition, the Company may also designate cash balances held in foreign currencies as hedges of forecasted foreign currency transactions. During the first nine months of 2015, the Company net settled 222.5 million euro notional value of foreign currency forward contracts designated as cash flow hedges with 2015 and 2016 maturity dates, receiving cash proceeds of $51 million which is reported in cash provided by operating activities on the consolidated cash flow statement. Deferred gains on these settled cash flow hedges currently recognized in accumulated other comprehensive income will be reclassified to earnings when the underlying transactions occur. The Company subsequently entered into 211 million euro notional value of foreign currency forward contracts designated as fair value hedges in the first nine months of 2015, all with 2015 and 2016 maturity dates and of which 130.5 million euro notional was outstanding as of September 30, 2015 . The Company recorded a $1.8 million charge and $5.6 million benefit in costs of sales on the consolidated statement of operations in the third quarter and nine months ended September 30, 2015 , respectively, for mark-to-market changes on these fair value hedges. The Company may enter into derivative interest rate contracts to maintain a reasonable balance between fixed- and floating-rate debt. There were no unsettled derivative financial instruments related to debt balances for the periods presented. There are no credit risk-related contingent features in the Company’s derivative contracts, and the contracts contained no provisions under which the Company has posted, or would be required to post, collateral. The counterparties to the Company’s derivative contracts are substantial and creditworthy commercial banks that are recognized market makers. The Company controls its credit exposure by diversifying across multiple counterparties and by monitoring credit ratings and credit default swap spreads of its counterparties. The Company also enters into master netting agreements with counterparties when possible. The fair values of the Company’s derivative financial instruments are presented below, representing the gross amounts recognized which are not offset by counterparty or by type of item hedged. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy, which includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs derived principally from or corroborated by observable market data. |
Pension And Other Postretirement Plans | The Company has defined benefit pension plans or 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. |
Commitments And Contingencies | Environmental liabilities are recorded when the Company’s liability is probable and the costs are reasonably estimable. In many cases, however, the Company is not able to determine whether it is liable or, if liability is probable, to reasonably estimate the loss or range of loss. Estimates of the Company’s liability remain subject to additional uncertainties, including the nature and extent of site contamination, available remediation alternatives, the extent of corrective actions that may be required, and the number, participation, and financial condition of other potentially responsible parties (“PRPs”). The Company adjusts its accruals to reflect new information as appropriate. Future adjustments could have a material adverse effect on the Company’s consolidated results of operations in a given period, but the Company cannot reliably predict the amounts of such future adjustments. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories at September 30, 2015 and December 31, 2014 were as follows (in millions): September 30, December 31, Raw materials and supplies $ 235.0 $ 249.3 Work-in-process 1,052.2 1,184.1 Finished goods 190.0 172.2 Total inventories at current cost 1,477.2 1,605.6 Adjustment from current cost to LIFO cost basis 85.1 4.8 Inventory valuation reserves (152.9 ) (68.8 ) Progress payments (53.3 ) (68.8 ) Total inventories, net $ 1,356.1 $ 1,472.8 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property Plant And Equipment | Property, plant and equipment at September 30, 2015 and December 31, 2014 was as follows (in millions): September 30, December 31, Land $ 30.3 $ 30.2 Buildings 1,048.2 1,048.9 Equipment and leasehold improvements 3,792.4 3,702.5 4,870.9 4,781.6 Accumulated depreciation and amortization (1,932.7 ) (1,819.8 ) Total property, plant and equipment, net $ 2,938.2 $ 2,961.8 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | Debt at September 30, 2015 and December 31, 2014 was as follows (in millions): September 30, December 31, Allegheny Technologies 5.875% Notes due 2023 (a) $ 500.0 $ 500.0 Allegheny Technologies 5.95% Notes due 2021 500.0 500.0 Allegheny Technologies 9.375% Notes due 2019 350.0 350.0 Allegheny Ludlum 6.95% debentures due 2025 150.0 150.0 ATI Ladish Series B 6.14% Notes due 2016 (b) — 11.9 ATI Ladish Series C 6.41% Notes due 2015 (c) — 10.3 U.S. revolving credit facilities — — Foreign credit facilities 1.7 — Industrial revenue bonds, due through 2020, and other 3.9 4.7 Total short-term and long-term debt 1,505.6 1,526.9 Short-term debt and current portion of long-term debt 4.0 17.8 Total long-term debt $ 1,501.6 $ 1,509.1 (a) Bearing interest at 6.625% effective February 15, 2015. (b) Includes fair value adjustments of $0.4 million at December 31, 2014 . (c) Includes fair value adjustments of $0.3 million at December 31, 2014 . |
Derivative Financial Instrume28
Derivative Financial Instruments and Hedging (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments In Statement Of Financial Position Fair Value | The fair values of the Company’s derivative financial instruments are presented below, representing the gross amounts recognized which are not offset by counterparty or by type of item hedged. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy, which includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs derived principally from or corroborated by observable market data. (In millions) Asset derivatives Balance sheet location September 30, December 31, Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets $ 12.3 $ 23.6 Nickel and other raw material contracts Prepaid expenses and other current assets — 1.1 Foreign exchange contracts Other assets 18.1 28.3 Nickel and other raw material contracts Other assets — 0.5 Total derivatives designated as hedging instruments 30.4 53.5 Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets — 6.4 Total derivatives not designated as hedging instruments — 6.4 Total asset derivatives $ 30.4 $ 59.9 Liability derivatives Balance sheet location Derivatives designated as hedging instruments: Natural gas contracts Accrued liabilities $ 13.6 $ 10.2 Nickel and other raw material contracts Accrued liabilities 19.6 5.8 Foreign exchange contracts Accrued liabilities 0.6 — Electricity contracts Accrued liabilities — 0.1 Natural gas contracts Other long-term liabilities 9.4 7.9 Nickel and other raw material contracts Other long-term liabilities 19.8 3.0 Foreign exchange contracts Other long-term liabilities 0.3 — Total derivatives designated as hedging instruments 63.3 27.0 Derivatives not designated as hedging instruments: Foreign exchange contracts Accrued liabilities 1.1 — Total derivatives not designated as hedging instruments 1.1 — Total liability derivatives $ 64.4 $ 27.0 |
Schedule Of Derivative Instruments Gain Loss In Statement Of Financial Performance | Activity with regard to derivatives designated as cash flow hedges for the three and nine month periods ended September 30, 2015 and 2014 was as follows (in millions): Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (a) Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (b) Derivatives in Cash Flow Three months ended September 30, Three months ended September 30, Three months ended September 30, Hedging Relationships 2015 2014 2015 2014 2015 2014 Nickel and other raw material contracts $ (13.5 ) $ (4.7 ) $ (2.4 ) $ 1.3 $ — $ — Natural gas contracts (3.7 ) (3.0 ) (1.6 ) — — — Electricity contracts — (0.2 ) — (0.1 ) — — Foreign exchange contracts 0.7 25.1 6.0 0.4 — — Total $ (16.5 ) $ 17.2 $ 2.0 $ 1.6 $ — $ — Amount of Gain (Loss) Recognized in OCI on Derivatives (Effective Portion) Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) (a) Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) (b) Derivatives in Cash Flow Nine months ended September 30, Nine months ended September 30, Nine months ended September 30, Hedging Relationships 2015 2014 2015 2014 2015 2014 Nickel and other raw material contracts $ (26.6 ) $ 5.4 $ (7.0 ) $ 0.5 $ — $ — Natural gas contracts (9.5 ) (1.7 ) (6.4 ) 2.4 — — Electricity contracts — 0.6 (0.1 ) 0.4 — — Foreign exchange contracts 24.6 26.5 18.5 (2.7 ) — — Total $ (11.5 ) $ 30.8 $ 5.0 $ 0.6 $ — $ — (a) The gains (losses) reclassified from accumulated OCI into income related to the effective portion of the derivatives are presented in cost of sales in the same period or periods in which the hedged item affects earnings. (b) The gains (losses) recognized in income on derivatives related to the ineffective portion and the amount excluded from effectiveness testing are presented in selling and administrative expenses. |
Schedule Of Derivative Instruments Not Designated as Hedging Instruments | Derivatives that are not designated as hedging instruments were as follows: (In millions) Amount of Gain (Loss) Recognized in Income on Derivatives Derivatives Not Designated Three months ended September 30, Nine months ended September 30, as Hedging Instruments 2015 2014 2015 2014 Foreign exchange contracts $ — $ 3.1 $ 3.0 $ 4.2 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value By Balance Sheet Grouping | The estimated fair value of financial instruments at September 30, 2015 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Carrying Amount Total Estimated Fair Value Quoted Prices in Active Markets for Identical Assets(Level 1) Significant Observable Inputs (Level 2) Cash and cash equivalents $ 197.5 $ 197.5 $ 197.5 $ — Derivative financial instruments: Assets 30.4 30.4 — 30.4 Liabilities 64.4 64.4 — 64.4 Debt 1,505.6 1,404.4 1,398.8 5.6 The estimated fair value of financial instruments at December 31, 2014 was as follows: Fair Value Measurements at Reporting Date Using (In millions) Total Carrying Amount Total Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Cash and cash equivalents $ 269.5 $ 269.5 $ 269.5 $ — Derivative financial instruments: Assets 59.9 59.9 — 59.9 Liabilities 27.0 27.0 — 27.0 Debt 1,526.9 1,616.0 1,589.1 26.9 |
Pension Plans and Other Postr30
Pension Plans and Other Postretirement Benefits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule Of Defined Benefit Plans Disclosures | For the three month periods ended September 30, 2015 and 2014 , the components of pension expense and components of other postretirement benefit expense for the Company’s defined benefit plans included the following (in millions): Pension Benefits Other Postretirement Benefits Three months ended September 30, Three months ended September 30, 2015 2014 2015 2014 Service cost - benefits earned during the year $ 5.7 $ 7.3 $ 0.7 $ 0.7 Interest cost on benefits earned in prior years 30.3 33.4 4.4 6.0 Expected return on plan assets (42.1 ) (46.1 ) — (0.1 ) Amortization of prior service cost (credit) 0.3 0.6 1.2 (0.8 ) Amortization of net actuarial loss 15.1 18.5 3.7 3.6 Total retirement benefit expense $ 9.3 $ 13.7 $ 10.0 $ 9.4 For the nine month periods ended September 30, 2015 and 2014 , the components of pension expense and components of other postretirement benefit expense for the Company’s defined benefit plans included the following (in millions): Pension Benefits Other Postretirement Benefits Nine months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Service cost - benefits earned during the year $ 17.1 $ 22.0 $ 2.1 $ 2.1 Interest cost on benefits earned in prior years 90.8 100.2 13.4 18.0 Expected return on plan assets (126.2 ) (138.2 ) — (0.2 ) Amortization of prior service cost (credit) 0.9 1.8 3.6 (2.3 ) Amortization of net actuarial loss 45.3 55.5 10.9 10.6 Termination benefits — 0.3 — — Total retirement benefit expense $ 27.9 $ 41.6 $ 30.0 $ 28.2 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule Of Defined Benefit Plan Expense Allocation | For the three and nine month periods ended September 30, 2015 and 2014 , the amount of defined benefit pension expense and all defined benefit and defined contribution postretirement medical and life insurance expense included in business segment results, corporate expense and closed company and other expenses was as follows: (in millions) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 High Performance Materials & Components $ 3.0 $ 5.1 $ 9.1 $ 15.6 Flat Rolled Products 14.7 15.6 44.1 46.8 Total 17.7 20.7 53.2 62.4 Corporate expenses 1.0 1.3 2.9 4.0 Closed company and other expenses 0.6 1.8 1.7 5.4 Total retirement benefit expense $ 19.3 $ 23.8 $ 57.8 $ 71.8 |
Schedule Of Segment Reporting Information By Segment | Following is certain financial information with respect to the Company’s business segments for the periods indicated (in millions): Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Total sales: High Performance Materials & Components $ 490.1 $ 527.1 $ 1,588.5 $ 1,562.6 Flat Rolled Products 377.8 587.0 1,516.0 1,747.1 867.9 1,114.1 3,104.5 3,309.7 Intersegment sales: High Performance Materials & Components 15.4 19.4 59.9 56.4 Flat Rolled Products 19.8 25.1 63.9 77.4 35.2 44.5 123.8 133.8 Sales to external customers: High Performance Materials & Components 474.7 507.7 1,528.6 1,506.2 Flat Rolled Products 358.0 561.9 1,452.1 1,669.7 $ 832.7 $ 1,069.6 $ 2,980.7 $ 3,175.9 Operating profit (loss): High Performance Materials & Components $ 18.8 $ 53.8 $ 136.1 $ 162.5 Flat Rolled Products (91.8 ) 6.1 (121.8 ) (32.7 ) Total operating profit (loss) (73.0 ) 59.9 14.3 129.8 LIFO and net realizable value reserves (0.2 ) (10.0 ) — (12.9 ) Corporate expenses (10.7 ) (11.4 ) (33.6 ) (37.3 ) Closed company and other expenses (6.5 ) (9.2 ) (18.6 ) (22.1 ) Interest expense, net (27.5 ) (25.2 ) (81.0 ) (82.8 ) Income (loss) from continuing operations before income taxes $ (117.9 ) $ 4.1 $ (118.9 ) $ (25.3 ) |
Per Share Information (Tables)
Per Share Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share Diluted By Common Class | The following table sets forth the computation of basic and diluted income from continuing operations per common share: Three months ended Nine months ended (In millions, except per share amounts) September 30, September 30, 2015 2014 2015 2014 Numerator for basic loss from continuing operations per common share – Loss from continuing operations attributable to ATI $ (144.6 ) $ — $ (151.0 ) $ (21.9 ) Redeemable noncontrolling interest (Note 10) (0.2 ) — (0.3 ) — Numerator for diluted loss from continuing operations per common share – Loss from continuing operations available to ATI after assumed conversions $ (144.8 ) $ — $ (151.3 ) $ (21.9 ) Denominator for basic net loss per common share – weighted average shares 107.3 107.2 107.3 107.1 Effect of dilutive securities: Share-based compensation — 0.8 — — 4.25% Convertible Notes due 2014 — — — — Denominator for diluted net loss per common share – adjusted weighted average shares assuming conversions 107.3 108.0 107.3 107.1 Basic loss from continuing operations attributable to ATI per common share $ (1.35 ) $ — $ (1.41 ) $ (0.20 ) Diluted loss from continuing operations attributable to ATI per common share $ (1.35 ) $ — $ (1.41 ) $ (0.20 ) |
Financial Information for Sub33
Financial Information for Subsidiary and Guarantor Parent (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Balance Sheets | Balance Sheets September 30, 2015 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ 5.4 $ 6.9 $ 185.2 $ — $ 197.5 Accounts receivable, net 0.1 125.2 372.2 — 497.5 Intercompany notes receivable — — 2,561.0 (2,561.0 ) — Inventories, net — 303.8 1,052.3 — 1,356.1 Prepaid expenses and other current assets 5.4 4.9 37.2 — 47.5 Total current assets 10.9 440.8 4,207.9 (2,561.0 ) 2,098.6 Property, plant and equipment, net 2.3 1,557.2 1,378.7 — 2,938.2 Cost in excess of net assets acquired — 126.6 653.6 — 780.2 Intercompany notes receivable — — 200.0 (200.0 ) — Investment in subsidiaries 6,150.7 37.7 — (6,188.4 ) — Other assets 22.7 33.8 287.6 — 344.1 Total assets $ 6,186.6 $ 2,196.1 $ 6,727.8 $ (8,949.4 ) $ 6,161.1 Liabilities and stockholders’ equity: Accounts payable $ 5.2 $ 160.7 $ 201.2 $ — $ 367.1 Accrued liabilities 35.4 84.7 209.7 — 329.8 Intercompany notes payable 1,386.6 1,174.4 — (2,561.0 ) — Deferred income taxes 36.2 — — — 36.2 Short-term debt and current portion of long-term debt 0.6 0.1 3.3 — 4.0 Total current liabilities 1,464.0 1,419.9 414.2 (2,561.0 ) 737.1 Long-term debt 1,350.8 150.2 0.6 — 1,501.6 Intercompany notes payable — 200.0 — (200.0 ) — Accrued postretirement benefits — 248.2 140.7 — 388.9 Pension liabilities 654.9 5.6 52.5 — 713.0 Deferred income taxes 190.7 — — — 190.7 Other long-term liabilities 20.7 20.9 70.6 — 112.2 Total liabilities 3,681.1 2,044.8 678.6 (2,761.0 ) 3,643.5 Redeemable noncontrolling interest — — 12.1 — 12.1 Total stockholders’ equity 2,505.5 151.3 6,037.1 (6,188.4 ) 2,505.5 Total liabilities and stockholders’ equity $ 6,186.6 $ 2,196.1 $ 6,727.8 $ (8,949.4 ) $ 6,161.1 Balance Sheets December 31, 2014 Guarantor Non-guarantor (In millions) Parent Subsidiary Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ 2.2 $ 13.8 $ 253.5 $ — $ 269.5 Accounts receivable, net 0.1 209.1 394.4 — 603.6 Intercompany notes receivable — — 2,390.8 (2,390.8 ) — Inventories, net — 387.7 1,085.1 — 1,472.8 Prepaid expenses and other current assets 63.7 13.2 59.3 — 136.2 Total current assets 66.0 623.8 4,183.1 (2,390.8 ) 2,482.1 Property, plant and equipment, net 2.2 1,545.1 1,414.5 — 2,961.8 Cost in excess of net assets acquired — 126.6 653.8 — 780.4 Intercompany notes receivable — — 200.0 (200.0 ) — Investment in subsidiaries 6,149.4 37.7 — (6,187.1 ) — Other assets 23.7 28.0 306.6 — 358.3 Total assets $ 6,241.3 $ 2,361.2 $ 6,758.0 $ (8,777.9 ) $ 6,582.6 Liabilities and stockholders’ equity: Accounts payable $ 4.5 $ 302.0 $ 250.2 $ — $ 556.7 Accrued liabilities 47.5 72.0 203.7 — 323.2 Intercompany notes payable 1,232.6 1,158.2 — (2,390.8 ) — Deferred income taxes 62.2 — — — 62.2 Short-term debt and current portion of long-term debt 0.5 0.1 17.2 — 17.8 Total current liabilities 1,347.3 1,532.3 471.1 (2,390.8 ) 959.9 Long-term debt 1,350.6 150.3 8.2 — 1,509.1 Intercompany notes payable — 200.0 — (200.0 ) — Accrued postretirement benefits — 153.0 262.8 — 415.8 Pension liabilities 675.5 6.0 57.8 — 739.3 Deferred income taxes 80.9 — — — 80.9 Other long-term liabilities 77.7 22.5 56.0 — 156.2 Total liabilities 3,532.0 2,064.1 855.9 (2,590.8 ) 3,861.2 Redeemable noncontrolling interest — — 12.1 — 12.1 Total stockholders’ equity 2,709.3 297.1 5,890.0 (6,187.1 ) 2,709.3 Total liabilities and stockholders’ equity $ 6,241.3 $ 2,361.2 $ 6,758.0 $ (8,777.9 ) $ 6,582.6 |
Statements of Operations and Comprehensive Income | Statements of Operations and Comprehensive Income For the three months ended September 30, 2014 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 473.8 $ 595.8 $ — $ 1,069.6 Cost of sales 7.8 465.0 499.8 — 972.6 Selling and administrative expenses 27.5 12.2 29.0 — 68.7 Income (loss) before interest, other income and income taxes (35.3 ) (3.4 ) 67.0 — 28.3 Interest income (expense), net (26.4 ) (11.3 ) 12.5 — (25.2 ) Other income (loss) including equity in income of unconsolidated subsidiaries 65.8 0.4 0.5 (65.7 ) 1.0 Income (loss) from continuing operations before income tax provision (benefit) 4.1 (14.3 ) 80.0 (65.7 ) 4.1 Income tax provision (benefit) 0.5 (4.6 ) 23.4 (18.8 ) 0.5 Income (loss) from continuing operations 3.6 (9.7 ) 56.6 (46.9 ) 3.6 Income (loss) from discontinued operations, net of tax (0.7 ) — (0.7 ) 0.7 (0.7 ) Net income (loss) 2.9 (9.7 ) 55.9 (46.2 ) 2.9 Less: Net income attributable to noncontrolling interests — — 3.6 — 3.6 Net income (loss) attributable to ATI $ 2.9 $ (9.7 ) $ 52.3 $ (46.2 ) $ (0.7 ) Comprehensive income (loss) attributable to ATI $ 15.3 $ (7.8 ) $ 34.1 $ (31.7 ) $ 9.9 Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Operations and Comprehensive Income For the nine months ended September 30, 2014 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,415.5 $ 1,760.4 $ — $ 3,175.9 Cost of sales 34.9 1,429.8 1,454.5 — 2,919.2 Selling and administrative expenses 75.5 32.6 94.0 — 202.1 Income (loss) before interest, other income and income taxes (110.4 ) (46.9 ) 211.9 — 54.6 Interest income (expense), net (83.5 ) (33.1 ) 33.8 — (82.8 ) Other income (loss) including equity in income of unconsolidated subsidiaries 168.6 0.9 1.9 (168.5 ) 2.9 Income (loss) from continuing operations before income tax provision (benefit) (25.3 ) (79.1 ) 247.6 (168.5 ) (25.3 ) Income tax provision (benefit) (12.4 ) (27.7 ) 88.4 (60.7 ) (12.4 ) Income (loss) from continuing operations (12.9 ) (51.4 ) 159.2 (107.8 ) (12.9 ) Income (loss) from discontinued operations, net of tax (2.8 ) — (2.8 ) 2.8 (2.8 ) Net income (loss) (15.7 ) (51.4 ) 156.4 (105.0 ) (15.7 ) Less: Net income attributable to noncontrolling interests — — 9.0 — 9.0 Net income (loss) attributable to ATI $ (15.7 ) $ (51.4 ) $ 147.4 $ (105.0 ) $ (24.7 ) Comprehensive income (loss) attributable to ATI $ 42.7 $ (45.4 ) $ 136.8 $ (99.2 ) $ 34.9 Statements of Operations and Comprehensive Income For the three months ended September 30, 2015 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 286.3 $ 546.4 $ — $ 832.7 Cost of sales 9.2 363.5 488.7 — 861.4 Selling and administrative expenses 22.9 9.3 30.3 — 62.5 Income (loss) before interest, other income and income taxes (32.1 ) (86.5 ) 27.4 — (91.2 ) Interest income (expense), net (29.5 ) (12.6 ) 14.6 — (27.5 ) Other income (loss) including equity in income of unconsolidated subsidiaries (56.3 ) 0.2 0.7 56.2 0.8 Income (loss) from continuing operations before income tax provision (benefit) (117.9 ) (98.9 ) 42.7 56.2 (117.9 ) Income tax provision (benefit) 23.4 (35.1 ) 11.0 24.1 23.4 Income (loss) from continuing operations (141.3 ) (63.8 ) 31.7 32.1 (141.3 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (141.3 ) (63.8 ) 31.7 32.1 (141.3 ) Less: Net income attributable to noncontrolling interests — — 3.3 — 3.3 Net income (loss) attributable to ATI $ (141.3 ) $ (63.8 ) $ 28.4 $ 32.1 $ (144.6 ) Comprehensive income (loss) attributable to ATI $ (163.5 ) $ (60.5 ) $ 16.7 $ 44.6 $ (162.7 ) Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Operations and Comprehensive Income For the nine months ended September 30, 2015 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,231.5 $ 1,749.2 $ — $ 2,980.7 Cost of sales 22.0 1,296.5 1,504.4 — 2,822.9 Selling and administrative expenses 70.1 30.4 97.5 — 198.0 Income (loss) before interest, other income and income taxes (92.1 ) (95.4 ) 147.3 — (40.2 ) Interest income (expense), net (86.1 ) (37.3 ) 42.4 — (81.0 ) Other income (loss) including equity in income of unconsolidated subsidiaries 59.3 0.8 1.8 (59.6 ) 2.3 Income (loss) from continuing operations before income tax provision (benefit) (118.9 ) (131.9 ) 191.5 (59.6 ) (118.9 ) Income tax provision (benefit) 23.7 (46.3 ) 67.4 (21.1 ) 23.7 Income (loss) from continuing operations (142.6 ) (85.6 ) 124.1 (38.5 ) (142.6 ) Income (loss) from discontinued operations, net of tax — — — — — Net income (loss) (142.6 ) (85.6 ) 124.1 (38.5 ) (142.6 ) Less: Net income attributable to noncontrolling interests — — 8.4 — 8.4 Net income (loss) attributable to ATI $ (142.6 ) $ (85.6 ) $ 115.7 $ (38.5 ) $ (151.0 ) Comprehensive income (loss) attributable to ATI $ (140.4 ) $ (76.0 ) $ 101.9 $ (30.5 ) $ (145.0 ) |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows For the nine months ended September 30, 2015 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ (61.3 ) $ (171.1 ) $ 341.3 $ — $ 108.9 Investing Activities: Purchases of property, plant and equipment (0.1 ) (45.0 ) (54.4 ) — (99.5 ) Purchases of businesses, net of cash acquired — — (0.5 ) — (0.5 ) Net receipts/(payments) on intercompany activity — — (333.3 ) 333.3 — Asset disposals and other — 0.2 (0.2 ) — — Cash flows provided by (used in) investing activities (0.1 ) (44.8 ) (388.4 ) 333.3 (100.0 ) Financing Activities: Payments on long-term debt and capital leases (0.4 ) (0.1 ) (22.8 ) — (23.3 ) Net receipts/(payments) on intercompany activity 124.2 209.1 — (333.3 ) — Dividends paid to stockholders (57.9 ) — — — (57.9 ) Other (1.3 ) — 1.6 — 0.3 Cash flows provided by (used in) financing activities 64.6 209.0 (21.2 ) (333.3 ) (80.9 ) Increase (decrease) in cash and cash equivalents $ 3.2 $ (6.9 ) $ (68.3 ) $ — $ (72.0 ) Condensed Statements of Cash Flows For the nine months ended September 30, 2014 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ (60.0 ) $ (263.2 ) $ 285.0 $ — $ (38.2 ) Investing Activities: Purchases of property, plant and equipment (0.1 ) (117.2 ) (40.2 ) — (157.5 ) Purchases of businesses, net of cash acquired — — (92.5 ) — (92.5 ) Net receipts/(payments) on intercompany activity — — (905.4 ) 905.4 — Asset disposals and other — 1.6 0.3 — 1.9 Cash flows provided by (used in) investing activities (0.1 ) (115.6 ) (1,037.8 ) 905.4 (248.1 ) Financing Activities: Payments on long-term debt and capital leases (397.8 ) (0.1 ) (16.8 ) — (414.7 ) Net receipts/(payments) on intercompany activity 521.9 383.5 — (905.4 ) — Dividends paid to stockholders (57.8 ) — — — (57.8 ) Other (3.8 ) — — — (3.8 ) Cash flows provided by (used in) financing activities 62.5 383.4 (16.8 ) (905.4 ) (476.3 ) Increase (decrease) in cash and cash equivalents $ 2.4 $ 4.6 $ (769.6 ) $ — $ (762.6 ) |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |
Schedule Of Accumulated Other Comprehensive Income Loss | The changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, for the three month period ended September 30, 2015 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Unrealized holding gains on securities Derivatives Total Attributable to ATI: Balance, June 30, 2015 $ (906.5 ) $ (19.0 ) $ (0.1 ) $ 18.3 $ (907.3 ) OCI before reclassifications — (12.1 ) — (16.5 ) (28.6 ) Amounts reclassified from AOCI (a) 12.5 (b) — (b) — (c) (2.0 ) 10.5 Net current-period OCI 12.5 (12.1 ) — (18.5 ) (18.1 ) Balance, September 30, 2015 $ (894.0 ) $ (31.1 ) $ (0.1 ) $ (0.2 ) $ (925.4 ) Attributable to noncontrolling interests: Balance, June 30, 2015 $ — $ $ 25.3 $ — $ — $ 25.3 OCI before reclassifications — (4.1 ) — — (4.1 ) Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — (4.1 ) — — (4.1 ) Balance, September 30, 2015 $ — $ 21.2 $ — $ — $ 21.2 The changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, for the nine month period ended September 30, 2015 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Unrealized holding gains on securities Derivatives Total Attributable to ATI: Balance, December 31, 2014 $ (931.5 ) $ (16.2 ) $ — $ 16.3 $ (931.4 ) OCI before reclassifications — (14.9 ) (0.1 ) (11.5 ) (26.5 ) Amounts reclassified from AOCI (a) 37.5 (b) — (b) — (c) (5.0 ) 32.5 Net current-period OCI 37.5 (14.9 ) (0.1 ) (16.5 ) 6.0 Balance, September 30, 2015 $ (894.0 ) $ (31.1 ) $ (0.1 ) $ (0.2 ) $ (925.4 ) Attributable to noncontrolling interests: Balance, December 31, 2014 $ — $ $ 25.0 $ — $ — $ 25.0 OCI before reclassifications — (3.8 ) — — (3.8 ) Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — (3.8 ) — — (3.8 ) Balance, September 30, 2015 $ — $ 21.2 $ — $ — $ 21.2 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 7). (b) No amounts were reclassified to earnings. (c) Amounts are included in cost of goods sold in the period or periods the hedged item affects earnings (see Note 5). The changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, for the three month period ended September 30, 2014 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Unrealized holding gains on securities Derivatives Total Attributable to ATI: Balance, June 30, 2014 $ (692.0 ) $ 22.7 $ 0.1 $ 5.0 $ (664.2 ) OCI before reclassifications — (18.4 ) — 17.2 (1.2 ) Amounts reclassified from AOCI (a) 13.4 (b) — (b) — (c) (1.6 ) 11.8 Net current-period OCI 13.4 (18.4 ) — 15.6 10.6 Balance, September 30, 2014 $ (678.6 ) $ 4.3 $ 0.1 $ 20.6 $ (653.6 ) Attributable to noncontrolling interests: Balance, June 30, 2014 $ — $ 24.1 $ — $ — $ 24.1 OCI before reclassifications — 1.8 — — 1.8 Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — 1.8 — — $ 1.8 Balance, September 30, 2014 $ — $ 25.9 $ — $ — $ 25.9 The changes in accumulated other comprehensive income (loss) (AOCI) by component, net of tax, for the nine month period ended September 30, 2014 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Unrealized holding gains on securities Derivatives Total Attributable to ATI: Balance, December 31, 2013 $ (718.9 ) $ 15.3 $ — $ (9.6 ) $ (713.2 ) OCI before reclassifications — (11.0 ) 0.1 30.8 19.9 Amounts reclassified from AOCI (a) 40.3 (b) — (b) — (c) (0.6 ) 39.7 Net current-period OCI 40.3 (11.0 ) 0.1 30.2 59.6 Balance, September 30, 2014 $ (678.6 ) $ 4.3 $ 0.1 $ 20.6 $ (653.6 ) Attributable to noncontrolling interests: Balance, December 31, 2013 $ — $ 27.1 $ — $ — $ 27.1 OCI before reclassifications — (1.2 ) — — (1.2 ) Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — (1.2 ) — — $ (1.2 ) Balance, September 30, 2014 $ — $ 25.9 $ — $ — $ 25.9 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 7). (b) No amounts were reclassified to earnings. (c) Amounts are included in cost of goods sold in the period or periods the hedged item affects earnings (see Note 5). |
Reclassification out of Accumulated Other Comprehensive Income | Reclassifications out of AOCI for the three and nine month periods ended September 30, 2015 and 2014 were as follows: Amount reclassified from AOCI Details about AOCI Components (In millions) Three months ended September 30, 2015 Three months ended September 30, 2014 Nine months ended September 30, 2015 Nine months ended September 30, 2014 Affected line item in the statements of operations Postretirement benefit plans Prior service (cost) credit $ (1.5 ) $ 0.2 (a) $ (4.5 ) $ 0.5 (a) Actuarial losses (18.8 ) (22.1 ) (a) (56.2 ) (66.1 ) (a) (20.3 ) (21.9 ) (c) (60.7 ) (65.6 ) (c) Total before tax (7.8 ) (8.5 ) (23.2 ) (25.3 ) Tax provision (benefit) $ (12.5 ) $ (13.4 ) $ (37.5 ) $ (40.3 ) Net of tax Derivatives Nickel and other raw material contracts $ (3.9 ) $ 2.1 (b) $ (11.4 ) $ 0.8 (b) Natural gas contracts (2.6 ) — (b) (10.4 ) 3.9 (b) Electricity contracts — (0.1 ) (b) (0.2 ) 0.7 (b) Foreign exchange contracts 9.8 0.6 (b) 30.1 (4.4 ) (b) 3.3 2.6 (c) 8.1 1.0 (c) Total before tax 1.3 1.0 3.1 0.4 Tax provision (benefit) $ 2.0 $ 1.6 $ 5.0 $ 0.6 Net of tax (a) Amounts are included in the computation of pension and other postretirement benefit expense, which is reported in both cost of goods sold and selling and administrative expenses. For additional information, see Note 7. (b) Amounts are included in cost of goods sold in the period or periods the hedged item affects earnings. For additional information, see Note 5. (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. |
Accounting Policies (Discontinu
Accounting Policies (Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Accounting Policies [Abstract] | ||
Discontinued operations sales | $ 3.3 | $ 14.9 |
Discontinued operations pretax loss | $ (0.5) | $ (3.5) |
Accounting Policies (Accounting
Accounting Policies (Accounting Pronouncements) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Accounting Standard Update 2015-03 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Debt issuance costs to be reclassified | $ 9.8 | $ 10.9 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Inventory Disclosure [Abstract] | |||
Raw materials and supplies | $ 235 | $ 249.3 | |
Work-in-process | 1,052.2 | 1,184.1 | |
Finished goods | 190 | 172.2 | |
Total inventories at current cost | 1,477.2 | 1,605.6 | |
Adjustment from current cost to LIFO cost basis | 85.1 | 4.8 | |
Inventory valuation reserves | (152.9) | (68.8) | |
Progress payments | (53.3) | (68.8) | |
Total inventories, net | 1,356.1 | $ 1,472.8 | |
Inventory [Line Items] | |||
Inventory, LIFO Reserve, Effect on Income, Net | (80.3) | $ 47.9 | |
Net realizable value on LIFO inventory [Member] | |||
Inventory [Line Items] | |||
Change in inventory valuation reserve | 80.3 | (35) | |
Industrial titanium products [Member] | |||
Inventory [Line Items] | |||
Change in inventory valuation reserve | $ 16.6 | $ 18.3 |
Property, Plant and Equipment38
Property, Plant and Equipment (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 30.3 | $ 30.2 |
Buildings | 1,048.2 | 1,048.9 |
Equipment and leasehold improvements | 3,792.4 | 3,702.5 |
Property Plant And Equipment, gross | 4,870.9 | 4,781.6 |
Accumulated depreciation and amortization | (1,932.7) | (1,819.8) |
Total property, plant and equipment, net | 2,938.2 | $ 2,961.8 |
Construction in progress | $ 73.7 |
Debt Schedule of Debt (Details)
Debt Schedule of Debt (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2014 | Feb. 15, 2015 | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | |||||
Total Debt | $ 1,505.6 | $ 1,526.9 | |||
Short-term debt and current portion of long-term debt | 4 | 17.8 | |||
Long-term debt | 1,501.6 | 1,509.1 | |||
Domestic Bank Group $400 million asset-based credit facility | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | 0 | ||||
Allegheny Technologies 5.875% Notes due 2023 (a) | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | [1] | $ 500 | $ 500 | ||
Debt Instrument, Issuer | Allegheny Technologies | ||||
Debt Instrument, Maturity Date | Aug. 15, 2023 | Aug. 15, 2023 | |||
Interest rate | 6.625% | 6.125% | 6.625% | 5.875% | |
Allegheny Technologies 5.95% Notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 500 | $ 500 | |||
Allegheny Technologies 9.375% Notes due 2019 | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | 350 | 350 | |||
Allegheny Ludlum 6.95% debentures due 2025 | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 150 | 150 | |||
Interest rate | 6.95% | ||||
ATI Ladish Series B 6.14% Notes due 2016 (b) | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | [2] | $ 0 | 11.9 | ||
Business Acquisition Purchase Price Allocation Notes Payable and L T Debt | 0.4 | ||||
ATI Ladish Series C 6.41% Notes due 2015 (c) | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | [3] | 0 | 10.3 | ||
Business Acquisition Purchase Price Allocation Notes Payable and L T Debt | 0.3 | ||||
Domestic Bank Group $400 million credit facility | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | 0 | ||||
Foreign credit facilities | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | 1.7 | 0 | |||
Industrial revenue bonds, due through 2020, and other | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 3.9 | $ 4.7 | |||
ATI Ladish Series B 6.14% Notes due 2016 (b) | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuer | ATI Ladish | ||||
Debt Instrument, Maturity Date | May 16, 2016 | ||||
Interest rate | 6.14% | ||||
ATI Ladish Series C 6.41% Notes due 2015 (c) | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuer | ATI Ladish | ||||
Debt Instrument, Maturity Date | Sep. 2, 2015 | ||||
Interest rate | 6.41% | ||||
Allegheny Technologies 5.95% Notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuer | Allegheny Technologies | ||||
Debt Instrument, Maturity Date | Jan. 15, 2021 | Jan. 15, 2021 | |||
Interest rate | 5.95% | 5.95% | |||
Industrial revenue bonds, due through 2020, and other | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Maturity Date Range, End | Jan. 1, 2020 | Jan. 1, 2020 | |||
Allegheny Ludlum 6.95% debentures due 2025 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuer | Allegheny Ludlum | ||||
Debt Instrument, Maturity Date | Dec. 15, 2025 | Dec. 15, 2025 | |||
Interest rate | 6.95% | ||||
Allegheny Technologies 9.375% Notes due 2019 | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Issuer | Allegheny Technologies | ||||
Debt Instrument, Maturity Date | Jun. 1, 2019 | Jun. 1, 2019 | |||
Interest rate | 9.375% | 9.375% | |||
Revolving credit facility | Domestic Bank Group $400 million asset-based credit facility | |||||
Debt Instrument [Line Items] | |||||
Long-term Debt, Gross | $ 0 | ||||
[1] | Bearing interest at 6.625% effective February 15, 2015. | ||||
[2] | Includes fair value adjustments of $0.4 million at December 31, 2014. | ||||
[3] | Includes fair value adjustments of $0.3 million at December 31, 2014. |
Debt Narrative (Details)
Debt Narrative (Details) | Oct. 23, 2015USD ($) | Sep. 23, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015USD ($) | Feb. 15, 2015 | Dec. 31, 2014USD ($) | Dec. 31, 2013 | |
STAL Precision Stainless Steel Company Limited | ||||||||
Debt Instrument [Line Items] | ||||||||
Ownership interest (percentage) | 60.00% | 60.00% | ||||||
ATI Ladish Series B 6.14% Notes due 2016 (b) | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 6.14% | |||||||
Repayment of debt during period | $ 5,700,000 | |||||||
ATI Ladish Series C 6.41% Notes due 2015 (c) | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 6.41% | |||||||
Repayment of debt during period | $ 10,000,000 | |||||||
Allegheny Technologies 5.875% Notes due 2023 (a) | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 6.625% | 6.625% | 6.625% | 6.125% | 5.875% | |||
Outstanding borrowings | [1] | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||||
Domestic Bank Group $400 million asset-based credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding borrowings | 0 | 0 | ||||||
Amount utilized to support the issuance of letters of credit | 4,600,000 | 4,600,000 | ||||||
Domestic Bank Group $400 million asset-based credit facility | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 400,000,000 | |||||||
Debt issuance costs | $ 1,300,000 | |||||||
Term of facility (in years) | 5 years | |||||||
Minimum fixed charge coverage ratio allowed in event of default | 1 | |||||||
Minimum remaining borrowing capacity as a percent of maximum borrowing capacity | 10.00% | |||||||
Minimum remaining borrowing capacity | $ 40,000,000 | |||||||
Minimum required liquidity prior to maturity of 9.375% Senior Notes due 2019 | $ 500,000,000 | |||||||
Minimum required liquidity number of days prior to maturity of 9.375% Senior Notes due 2019 | 91 days | |||||||
Outstanding borrowings | 0 | 0 | ||||||
Domestic Bank Group $400 million asset-based credit facility | Revolving credit facility | Minimum | LIBOR based borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate (percentage) | 1.25% | |||||||
Domestic Bank Group $400 million asset-based credit facility | Revolving credit facility | Minimum | Base rate borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate (percentage) | 0.25% | |||||||
Domestic Bank Group $400 million asset-based credit facility | Revolving credit facility | Maximum | LIBOR based borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate (percentage) | 1.75% | |||||||
Domestic Bank Group $400 million asset-based credit facility | Revolving credit facility | Maximum | Base rate borrowings | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable interest rate (percentage) | 0.75% | |||||||
Domestic Bank Group $400 million asset-based credit facility | Letter of credit sub-facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 200,000,000 | |||||||
Domestic Bank Group $400 million credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding borrowings | 0 | |||||||
Average borrowings during period | $ 49,200,000 | |||||||
Interest rate during period | 2.40% | |||||||
Domestic Bank Group $400 million credit facility | Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 400,000,000 | |||||||
Seperateletter of Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Letters of credit outstanding | 32,000,000 | $ 32,000,000 | ||||||
STAL Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 20,000,000 | $ 20,000,000 | ||||||
Subsequent Event | Allegheny Technologies 5.875% Notes due 2023 (a) | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 7.125% | |||||||
Additional annual interest expense to be incurred | $ 2,500,000 | |||||||
Increase in interest expense per downgrade notch (percent) | 0.25% | |||||||
Maximum number of downgrade notches | 4 | |||||||
Maximum potential increase in interest rate expense (percent) | 2.00% | |||||||
Increase in stated interest rate due to credit downgrade (percent) | 1.25% | |||||||
[1] | Bearing interest at 6.625% effective February 15, 2015. |
Derivative Financial Instrume41
Derivative Financial Instruments and Hedging (Details) € in Millions, lb in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2015EUR (€) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)lb | Sep. 30, 2015EUR (€)lb | Sep. 30, 2014USD ($) | |
Notional Disclosures [Abstract] | |||||||
Percentage of estimated annual nickel requirements | 25.00% | 25.00% | |||||
Percentage of forecasted natural gas usage hedged for 2015 | 95.00% | 95.00% | |||||
Percentage Of Forecasted Natural Gas Usage Hedged for 2016 | 90.00% | 90.00% | |||||
Percentage Of Forecasted Natural Gas Usage Hedged for 2017 | 55.00% | 55.00% | |||||
Percentage Of Forecasted Natural Gas Usage Hedged for 2018 | 15.00% | 15.00% | |||||
Reclassification of Cash Flow Hedge Gain (Loss) [Abstract] | |||||||
Cash Flow Hedge Gain (Loss) To Be Reclassified Within Twelve Months | $ (13.2) | ||||||
Other Comprehensive Income | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Recognized In Other Comprehensive Income Effective Portion Net | $ (16.5) | $ 17.2 | (11.5) | $ 30.8 | |||
Cost Of Sales | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Reclassified From Accumulated OCI Into Income Effective Portion Net | 2 | 1.6 | 5 | 0.6 | |||
Selling And Administrative Expenses | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Recognized In Income Ineffective Portion And Amount Excluded From Effectiveness Testing Net | 0 | 0 | $ 0 | 0 | |||
Nickel | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Notional amount of nickel hedge (in pounds of nickel) | lb | 27 | 27 | |||||
Nickel and other raw material contracts | Other Comprehensive Income | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Recognized In Other Comprehensive Income Effective Portion Net | (13.5) | (4.7) | $ (26.6) | 5.4 | |||
Nickel and other raw material contracts | Cost Of Sales | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Reclassified From Accumulated OCI Into Income Effective Portion Net | (2.4) | 1.3 | (7) | 0.5 | |||
Nickel and other raw material contracts | Selling And Administrative Expenses | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Recognized In Income Ineffective Portion And Amount Excluded From Effectiveness Testing Net | 0 | 0 | 0 | 0 | |||
Natural gas contracts | Other Comprehensive Income | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Recognized In Other Comprehensive Income Effective Portion Net | (3.7) | (3) | (9.5) | (1.7) | |||
Natural gas contracts | Cost Of Sales | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Reclassified From Accumulated OCI Into Income Effective Portion Net | (1.6) | 0 | (6.4) | 2.4 | |||
Natural gas contracts | Selling And Administrative Expenses | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Recognized In Income Ineffective Portion And Amount Excluded From Effectiveness Testing Net | 0 | 0 | 0 | 0 | |||
Electricity contracts | Other Comprehensive Income | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Recognized In Other Comprehensive Income Effective Portion Net | 0 | (0.2) | 0 | 0.6 | |||
Electricity contracts | Cost Of Sales | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Reclassified From Accumulated OCI Into Income Effective Portion Net | 0 | (0.1) | (0.1) | 0.4 | |||
Electricity contracts | Selling And Administrative Expenses | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Recognized In Income Ineffective Portion And Amount Excluded From Effectiveness Testing Net | 0 | 0 | 0 | 0 | |||
Foreign exchange contracts | Other Comprehensive Income | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Recognized In Other Comprehensive Income Effective Portion Net | 0.7 | 25.1 | 24.6 | 26.5 | |||
Foreign exchange contracts | Cost Of Sales | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Reclassified From Accumulated OCI Into Income Effective Portion Net | 6 | 0.4 | 18.5 | (2.7) | |||
Foreign exchange contracts | Selling And Administrative Expenses | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Recognized In Income Ineffective Portion And Amount Excluded From Effectiveness Testing Net | 0 | 0 | 0 | 0 | |||
Designated as Hedging Instrument | Foreign exchange forward | Cash Flow Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Notional amount of derivatives net settled | € | € 222.5 | ||||||
Cash proceeds from settlement of hedge | 51 | ||||||
Designated as Hedging Instrument | Foreign exchange forward | Cost Of Sales | Fair Value Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Recognized In Income Net | (1.8) | 5.6 | |||||
Designated as Hedging Instrument | Foreign exchange forward | Maturity dates Through 2018 | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Notional amount of derivative | € | 257 | ||||||
Designated as Hedging Instrument | Foreign exchange forward | Maturity Dates Through 2015 | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Notional amount of derivative | € | 54 | ||||||
Designated as Hedging Instrument | Foreign exchange forward | Maturity Dates Through 2016 | Fair Value Hedging | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Notional amount of derivative | € | 130.5 | ||||||
Derivative, Notional Amount, Contract Entered During Period | € | 211 | ||||||
Not Designated as Hedging Instrument | Foreign exchange forward | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Notional amount of derivatives net settled | € | € 40.3 | ||||||
Cash proceeds from settlement of hedge | $ 11.8 | ||||||
Not Designated as Hedging Instrument | Foreign exchange forward | Maturity Dates Through 2016 | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Notional amount of derivative | € | € 33 | € 32 | |||||
Not Designated as Hedging Instrument | Foreign exchange contracts | Cost Of Sales | |||||||
Derivative Instruments Gain Loss [Line Items] | |||||||
Derivative Instruments Gain Loss Recognized In Income Net | $ 0 | $ 3.1 | $ 3 | $ 4.2 |
Derivative Financial Instrume42
Derivative Financial Instruments and Hedging (Details2) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | $ 30.4 | $ 59.9 |
Derivative Fair Value Of Derivative Liability | 64.4 | 27 |
Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 30.4 | 53.5 |
Derivative Fair Value Of Derivative Liability | 63.3 | 27 |
Designated as Hedging Instrument | Nickel and other raw material contracts | Prepaid expenses and other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 0 | 1.1 |
Designated as Hedging Instrument | Nickel and other raw material contracts | Other assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 0 | 0.5 |
Designated as Hedging Instrument | Nickel and other raw material contracts | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 19.6 | 5.8 |
Designated as Hedging Instrument | Nickel and other raw material contracts | Other long-term liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 19.8 | 3 |
Designated as Hedging Instrument | Natural gas contracts | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 13.6 | 10.2 |
Designated as Hedging Instrument | Natural gas contracts | Other long-term liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 9.4 | 7.9 |
Designated as Hedging Instrument | Electricity contracts | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 0 | 0.1 |
Designated as Hedging Instrument | Foreign exchange contracts | Prepaid expenses and other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 12.3 | 23.6 |
Designated as Hedging Instrument | Foreign exchange contracts | Other assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 18.1 | 28.3 |
Designated as Hedging Instrument | Foreign exchange contracts | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 0.6 | 0 |
Designated as Hedging Instrument | Foreign exchange contracts | Other long-term liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | 0.3 | 0 |
Not Designated as Hedging Instrument | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 0 | 6.4 |
Derivative Fair Value Of Derivative Liability | 1.1 | 0 |
Not Designated as Hedging Instrument | Foreign exchange contracts | Prepaid expenses and other current assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Asset | 0 | 6.4 |
Not Designated as Hedging Instrument | Foreign exchange contracts | Accrued liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Fair Value Of Derivative Liability | $ 1.1 | $ 0 |
Fair Value of Financial Instr43
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying Reported Amount Fair Value Disclosure | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 197.5 | $ 269.5 |
Derivative financial instruments, Assets | 30.4 | 59.9 |
Derivative Financial Instruments, liabilities | 64.4 | 27 |
Debt | 1,505.6 | 1,526.9 |
Estimate Of Fair Value Fair Value Disclosure | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 197.5 | 269.5 |
Derivative financial instruments, Assets | 30.4 | 59.9 |
Derivative Financial Instruments, liabilities | 64.4 | 27 |
Debt | 1,404.4 | 1,616 |
Estimate Of Fair Value Fair Value Disclosure | Fair Value Inputs Level 1 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 197.5 | 269.5 |
Derivative financial instruments, Assets | 0 | 0 |
Derivative Financial Instruments, liabilities | 0 | 0 |
Debt | 1,398.8 | 1,589.1 |
Estimate Of Fair Value Fair Value Disclosure | Fair Value Inputs Level 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Derivative financial instruments, Assets | 30.4 | 59.9 |
Derivative Financial Instruments, liabilities | 64.4 | 27 |
Debt | $ 5.6 | $ 26.9 |
Pension Plans and Other Postr44
Pension Plans and Other Postretirement Benefits (Details1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Plans Defined Benefit | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the year | $ 5.7 | $ 7.3 | $ 17.1 | $ 22 |
Interest cost on benefits earned in prior years | 30.3 | 33.4 | 90.8 | 100.2 |
Expected return on plan assets | (42.1) | (46.1) | (126.2) | (138.2) |
Amortization of prior service cost (credit) | 0.3 | 0.6 | 0.9 | 1.8 |
Amortization of net actuarial loss | 15.1 | 18.5 | 45.3 | 55.5 |
Termination benefits | 0 | 0.3 | ||
Total retirement benefit expense | 9.3 | 13.7 | 27.9 | 41.6 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost - benefits earned during the year | 0.7 | 0.7 | 2.1 | 2.1 |
Interest cost on benefits earned in prior years | 4.4 | 6 | 13.4 | 18 |
Expected return on plan assets | 0 | (0.1) | 0 | (0.2) |
Amortization of prior service cost (credit) | 1.2 | (0.8) | 3.6 | (2.3) |
Amortization of net actuarial loss | 3.7 | 3.6 | 10.9 | 10.6 |
Termination benefits | 0 | 0 | ||
Total retirement benefit expense | $ 10 | $ 9.4 | $ 30 | $ 28.2 |
Pension Plans and Other Postr45
Pension Plans and Other Postretirement Benefits Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined contribution plan, cost recognized | $ 0.7 | $ 2 |
Income Taxes - Quarterly Disclo
Income Taxes - Quarterly Disclosure (Details9) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)year | Sep. 30, 2014USD ($) | |
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Income tax (provision) benefit | $ (23.4) | $ (0.5) | $ (23.7) | $ 12.4 | |
Change in Deferred Tax Assets Valuation Allowance | 63.9 | ||||
Number of Years in Cumulative Loss Position | year | 3 | ||||
Deferred tax asset valuation allowance recorded as part of effective tax rate (percent) | 6.00% | ||||
Discrete tax benefits (expense) | $ 3.4 | $ (57.9) | $ 7.8 | ||
Unrecognized Tax Benefits, Period Increase (Decrease) | $ (60.9) | ||||
Federal | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Tax refund received | $ 59.9 | ||||
Discrete Item | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Change in Deferred Tax Assets Valuation Allowance | 56.6 | ||||
Part of Effective Tax Rate [Member] | |||||
Investments, Owned, Federal Income Tax Note [Line Items] | |||||
Change in Deferred Tax Assets Valuation Allowance | $ 7.3 |
Business Segments (Details)
Business Segments (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Abstract] | ||||
Number of business segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Retirement Benefit Expense | $ 19.3 | $ 23.8 | $ 57.8 | $ 71.8 |
Sales | 832.7 | 1,069.6 | 2,980.7 | 3,175.9 |
Operating profit (loss): | (73) | 59.9 | 14.3 | 129.8 |
LIFO and net realizable value reserves | 0.2 | 10 | 0 | 12.9 |
Corporate expenses | (10.7) | (11.4) | (33.6) | (37.3) |
Closed company and other expenses | (6.5) | (9.2) | (18.6) | (22.1) |
Interest expense, net | (27.5) | (25.2) | (81) | (82.8) |
Income (loss) from continuing operations before income tax provision (benefit) | (117.9) | 4.1 | (118.9) | (25.3) |
High Performance Materials & Components | ||||
Segment Reporting Information [Line Items] | ||||
Total sales: | 474.7 | 507.7 | 1,528.6 | 1,506.2 |
Operating profit (loss): | 18.8 | 53.8 | 136.1 | 162.5 |
Flat Rolled Products | ||||
Segment Reporting Information [Line Items] | ||||
Total sales: | 358 | 561.9 | 1,452.1 | 1,669.7 |
Operating profit (loss): | (91.8) | 6.1 | (121.8) | (32.7) |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Retirement Benefit Expense | 17.7 | 20.7 | 53.2 | 62.4 |
Total sales: | 867.9 | 1,114.1 | 3,104.5 | 3,309.7 |
Operating Segments | High Performance Materials & Components | ||||
Segment Reporting Information [Line Items] | ||||
Retirement Benefit Expense | 3 | 5.1 | 9.1 | 15.6 |
Total sales: | 490.1 | 527.1 | 1,588.5 | 1,562.6 |
Operating Segments | Flat Rolled Products | ||||
Segment Reporting Information [Line Items] | ||||
Retirement Benefit Expense | 14.7 | 15.6 | 44.1 | 46.8 |
Total sales: | 377.8 | 587 | 1,516 | 1,747.1 |
Intersegment Sales | ||||
Segment Reporting Information [Line Items] | ||||
Total sales: | 35.2 | 44.5 | 123.8 | 133.8 |
Intersegment Sales | High Performance Materials & Components | ||||
Segment Reporting Information [Line Items] | ||||
Total sales: | 15.4 | 19.4 | 59.9 | 56.4 |
Intersegment Sales | Flat Rolled Products | ||||
Segment Reporting Information [Line Items] | ||||
Total sales: | 19.8 | 25.1 | 63.9 | 77.4 |
Non-Segment | Corporate expenses | ||||
Segment Reporting Information [Line Items] | ||||
Retirement Benefit Expense | 1 | 1.3 | 2.9 | 4 |
Non-Segment | Closed company and other expenses | ||||
Segment Reporting Information [Line Items] | ||||
Retirement Benefit Expense | $ 0.6 | $ 1.8 | $ 1.7 | $ 5.4 |
Redeemable Noncontrolling Int48
Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Feb. 07, 2014 | |
Redeemable Noncontrolling Interest [Line Items] | |||
Redeemable noncontrolling interest | $ 0 | ||
Redeemable noncontrolling interest | 12.1 | $ 12.1 | |
Dynamic Flowform [Member] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 15.00% | ||
[RetainedEarningsMember] | |||
Redeemable Noncontrolling Interest [Line Items] | |||
Redeemable noncontrolling interest | $ (0.3) |
Per Share Information (Details)
Per Share Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Loss from continuing operations attributable to ATI | $ (144.6) | $ 0 | $ (151) | $ (21.9) |
Redeemable noncontrolling interest | (0.2) | 0 | (0.3) | 0 |
Loss from continuing operations available to ATI after assumed conversions | $ (144.8) | $ 0 | $ (151.3) | $ (21.9) |
Denominator for basic net loss per common share-weighted average shares | 107.3 | 107.2 | 107.3 | 107.1 |
Share-based compensation | 0 | 0.8 | 0 | 0 |
4.25% Convertible Notes due 2014 | 0 | 0 | 0 | 0 |
Denominator for diluted net loss per common share – adjusted weighted average shares assuming conversions | 107.3 | 108 | 107.3 | 107.1 |
Basic income (loss) from continuing operations attributable to ATI per common share (in dollars per share) | $ (1.35) | $ 0 | $ (1.41) | $ (0.20) |
Diluted income (loss) from continuing operations attributable to ATI per common share (in dollars per share) | $ (1.35) | $ 0 | $ (1.41) | $ (0.20) |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount | 0.8 | 0 | 0.9 | 6 |
Financial Information for Sub50
Financial Information for Subsidiary and Guarantor Parent (Narrative) (Details) - Allegheny Ludlum 6.95% debentures due 2025 - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 150 | $ 150 |
Interest rate | 6.95% |
Financial Information for Sub51
Financial Information for Subsidiary and Guarantor Parent (B.S.) (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Cash and cash equivalents | $ 197.5 | $ 269.5 | $ 264.2 | $ 1,026.8 |
Accounts receivable, net | 497.5 | 603.6 | ||
Intercompany notes receivable | 0 | 0 | ||
Inventories, net | 1,356.1 | 1,472.8 | ||
Prepaid expenses and other current assets | 47.5 | 136.2 | ||
Total current assets | 2,098.6 | 2,482.1 | ||
Property, plant and equipment, net | 2,938.2 | 2,961.8 | ||
Cost in excess of net assets acquired | 780.2 | 780.4 | ||
Intercompany notes receivable | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets | 344.1 | 358.3 | ||
Total assets | 6,161.1 | 6,582.6 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 367.1 | 556.7 | ||
Accrued liabilities | 329.8 | 323.2 | ||
Intercompany notes payable | 0 | 0 | ||
Deferred income taxes | 36.2 | 62.2 | ||
Short-term debt and current portion of long-term debt | 4 | 17.8 | ||
Total current liabilities | 737.1 | 959.9 | ||
Long-term debt | 1,501.6 | 1,509.1 | ||
Intercompany notes payable | 0 | 0 | ||
Accrued postretirement benefits | 388.9 | 415.8 | ||
Pension liabilities | 713 | 739.3 | ||
Deferred income taxes | 190.7 | 80.9 | ||
Other long-term liabilities | 112.2 | 156.2 | ||
Total liabilities | 3,643.5 | 3,861.2 | ||
Redeemable noncontrolling interest | 12.1 | 12.1 | ||
Total stockholders’ equity | 2,505.5 | 2,709.3 | $ 2,979.6 | $ 2,994.7 |
Total Liabilities and Equity | 6,161.1 | 6,582.6 | ||
Parent Company | ||||
ASSETS | ||||
Cash and cash equivalents | 5.4 | 2.2 | ||
Accounts receivable, net | 0.1 | 0.1 | ||
Intercompany notes receivable | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepaid expenses and other current assets | 5.4 | 63.7 | ||
Total current assets | 10.9 | 66 | ||
Property, plant and equipment, net | 2.3 | 2.2 | ||
Cost in excess of net assets acquired | 0 | 0 | ||
Intercompany notes receivable | 0 | 0 | ||
Investment in subsidiaries | 6,150.7 | 6,149.4 | ||
Other assets | 22.7 | 23.7 | ||
Total assets | 6,186.6 | 6,241.3 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 5.2 | 4.5 | ||
Accrued liabilities | 35.4 | 47.5 | ||
Intercompany notes payable | 1,386.6 | 1,232.6 | ||
Deferred income taxes | 36.2 | 62.2 | ||
Short-term debt and current portion of long-term debt | 0.6 | 0.5 | ||
Total current liabilities | 1,464 | 1,347.3 | ||
Long-term debt | 1,350.8 | 1,350.6 | ||
Intercompany notes payable | 0 | 0 | ||
Accrued postretirement benefits | 0 | 0 | ||
Pension liabilities | 654.9 | 675.5 | ||
Deferred income taxes | 190.7 | 80.9 | ||
Other long-term liabilities | 20.7 | 77.7 | ||
Total liabilities | 3,681.1 | 3,532 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total stockholders’ equity | 2,505.5 | 2,709.3 | ||
Total Liabilities and Equity | 6,186.6 | 6,241.3 | ||
Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 6.9 | 13.8 | ||
Accounts receivable, net | 125.2 | 209.1 | ||
Intercompany notes receivable | 0 | 0 | ||
Inventories, net | 303.8 | 387.7 | ||
Prepaid expenses and other current assets | 4.9 | 13.2 | ||
Total current assets | 440.8 | 623.8 | ||
Property, plant and equipment, net | 1,557.2 | 1,545.1 | ||
Cost in excess of net assets acquired | 126.6 | 126.6 | ||
Intercompany notes receivable | 0 | 0 | ||
Investment in subsidiaries | 37.7 | 37.7 | ||
Other assets | 33.8 | 28 | ||
Total assets | 2,196.1 | 2,361.2 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 160.7 | 302 | ||
Accrued liabilities | 84.7 | 72 | ||
Intercompany notes payable | 1,174.4 | 1,158.2 | ||
Deferred income taxes | 0 | 0 | ||
Short-term debt and current portion of long-term debt | 0.1 | 0.1 | ||
Total current liabilities | 1,419.9 | 1,532.3 | ||
Long-term debt | 150.2 | 150.3 | ||
Intercompany notes payable | 200 | 200 | ||
Accrued postretirement benefits | 248.2 | 153 | ||
Pension liabilities | 5.6 | 6 | ||
Deferred income taxes | 0 | 0 | ||
Other long-term liabilities | 20.9 | 22.5 | ||
Total liabilities | 2,044.8 | 2,064.1 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total stockholders’ equity | 151.3 | 297.1 | ||
Total Liabilities and Equity | 2,196.1 | 2,361.2 | ||
NonGuarantor Subsidiaries | ||||
ASSETS | ||||
Cash and cash equivalents | 185.2 | 253.5 | ||
Accounts receivable, net | 372.2 | 394.4 | ||
Intercompany notes receivable | 2,561 | 2,390.8 | ||
Inventories, net | 1,052.3 | 1,085.1 | ||
Prepaid expenses and other current assets | 37.2 | 59.3 | ||
Total current assets | 4,207.9 | 4,183.1 | ||
Property, plant and equipment, net | 1,378.7 | 1,414.5 | ||
Cost in excess of net assets acquired | 653.6 | 653.8 | ||
Intercompany notes receivable | 200 | 200 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets | 287.6 | 306.6 | ||
Total assets | 6,727.8 | 6,758 | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 201.2 | 250.2 | ||
Accrued liabilities | 209.7 | 203.7 | ||
Intercompany notes payable | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Short-term debt and current portion of long-term debt | 3.3 | 17.2 | ||
Total current liabilities | 414.2 | 471.1 | ||
Long-term debt | 0.6 | 8.2 | ||
Intercompany notes payable | 0 | 0 | ||
Accrued postretirement benefits | 140.7 | 262.8 | ||
Pension liabilities | 52.5 | 57.8 | ||
Deferred income taxes | 0 | 0 | ||
Other long-term liabilities | 70.6 | 56 | ||
Total liabilities | 678.6 | 855.9 | ||
Redeemable noncontrolling interest | 12.1 | 12.1 | ||
Total stockholders’ equity | 6,037.1 | 5,890 | ||
Total Liabilities and Equity | 6,727.8 | 6,758 | ||
Consolidation Eliminations | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Intercompany notes receivable | (2,561) | (2,390.8) | ||
Inventories, net | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | (2,561) | (2,390.8) | ||
Property, plant and equipment, net | 0 | 0 | ||
Cost in excess of net assets acquired | 0 | 0 | ||
Intercompany notes receivable | (200) | (200) | ||
Investment in subsidiaries | (6,188.4) | (6,187.1) | ||
Other assets | 0 | 0 | ||
Total assets | (8,949.4) | (8,777.9) | ||
LIABILITIES AND EQUITY | ||||
Accounts payable | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Intercompany notes payable | (2,561) | (2,390.8) | ||
Deferred income taxes | 0 | 0 | ||
Short-term debt and current portion of long-term debt | 0 | 0 | ||
Total current liabilities | (2,561) | (2,390.8) | ||
Long-term debt | 0 | 0 | ||
Intercompany notes payable | (200) | (200) | ||
Accrued postretirement benefits | 0 | 0 | ||
Pension liabilities | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | (2,761) | (2,590.8) | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Total stockholders’ equity | (6,188.4) | (6,187.1) | ||
Total Liabilities and Equity | $ (8,949.4) | $ (8,777.9) |
Financial Information for Sub52
Financial Information for Subsidiary and Guarantor Parent (I.S.) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Sales | $ 832.7 | $ 1,069.6 | $ 2,980.7 | $ 3,175.9 |
Cost of sales | 861.4 | 972.6 | 2,822.9 | 2,919.2 |
Selling and administrative expenses | 62.5 | 68.7 | 198 | 202.1 |
Income (loss) before interest, other income and income taxes | (91.2) | 28.3 | (40.2) | 54.6 |
Interest income (expense), net | (27.5) | (25.2) | (81) | (82.8) |
Other income (loss) including equity in income of unconsolidated subsidiaries | 0.8 | 1 | 2.3 | 2.9 |
Income (loss) from continuing operations before income tax provision (benefit) | (117.9) | 4.1 | (118.9) | (25.3) |
Income tax provision (benefit) | 23.4 | 0.5 | 23.7 | (12.4) |
Income (loss) from continuing operations | (141.3) | 3.6 | (142.6) | (12.9) |
Income (loss) from discontinued operations, net of tax | 0 | (0.7) | 0 | (2.8) |
Net income (loss) | (141.3) | 2.9 | (142.6) | (15.7) |
Less: Net income attributable to noncontrolling interests | 3.3 | 3.6 | 8.4 | 9 |
Net income (loss) attributable to ATI | (144.6) | (0.7) | (151) | (24.7) |
Comprehensive income (loss) attributable to ATI | (162.7) | 9.9 | (145) | 34.9 |
Parent Company | ||||
Income Statement [Abstract] | ||||
Sales | 0 | 0 | 0 | 0 |
Cost of sales | 9.2 | 7.8 | 22 | 34.9 |
Selling and administrative expenses | 22.9 | 27.5 | 70.1 | 75.5 |
Income (loss) before interest, other income and income taxes | (32.1) | (35.3) | (92.1) | (110.4) |
Interest income (expense), net | (29.5) | (26.4) | (86.1) | (83.5) |
Other income (loss) including equity in income of unconsolidated subsidiaries | (56.3) | 65.8 | 59.3 | 168.6 |
Income (loss) from continuing operations before income tax provision (benefit) | (117.9) | 4.1 | (118.9) | (25.3) |
Income tax provision (benefit) | 23.4 | 0.5 | 23.7 | (12.4) |
Income (loss) from continuing operations | (141.3) | 3.6 | (142.6) | (12.9) |
Income (loss) from discontinued operations, net of tax | 0 | (0.7) | 0 | (2.8) |
Net income (loss) | (141.3) | 2.9 | (142.6) | (15.7) |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to ATI | (141.3) | 2.9 | (142.6) | (15.7) |
Comprehensive income (loss) attributable to ATI | (163.5) | 15.3 | (140.4) | 42.7 |
Subsidiaries | ||||
Income Statement [Abstract] | ||||
Sales | 286.3 | 473.8 | 1,231.5 | 1,415.5 |
Cost of sales | 363.5 | 465 | 1,296.5 | 1,429.8 |
Selling and administrative expenses | 9.3 | 12.2 | 30.4 | 32.6 |
Income (loss) before interest, other income and income taxes | (86.5) | (3.4) | (95.4) | (46.9) |
Interest income (expense), net | (12.6) | (11.3) | (37.3) | (33.1) |
Other income (loss) including equity in income of unconsolidated subsidiaries | 0.2 | 0.4 | 0.8 | 0.9 |
Income (loss) from continuing operations before income tax provision (benefit) | (98.9) | (14.3) | (131.9) | (79.1) |
Income tax provision (benefit) | (35.1) | (4.6) | (46.3) | (27.7) |
Income (loss) from continuing operations | (63.8) | (9.7) | (85.6) | (51.4) |
Income (loss) from discontinued operations, net of tax | 0 | 0 | 0 | 0 |
Net income (loss) | (63.8) | (9.7) | (85.6) | (51.4) |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to ATI | (63.8) | (9.7) | (85.6) | (51.4) |
Comprehensive income (loss) attributable to ATI | (60.5) | (7.8) | (76) | (45.4) |
NonGuarantor Subsidiaries | ||||
Income Statement [Abstract] | ||||
Sales | 546.4 | 595.8 | 1,749.2 | 1,760.4 |
Cost of sales | 488.7 | 499.8 | 1,504.4 | 1,454.5 |
Selling and administrative expenses | 30.3 | 29 | 97.5 | 94 |
Income (loss) before interest, other income and income taxes | 27.4 | 67 | 147.3 | 211.9 |
Interest income (expense), net | 14.6 | 12.5 | 42.4 | 33.8 |
Other income (loss) including equity in income of unconsolidated subsidiaries | 0.7 | 0.5 | 1.8 | 1.9 |
Income (loss) from continuing operations before income tax provision (benefit) | 42.7 | 80 | 191.5 | 247.6 |
Income tax provision (benefit) | 11 | 23.4 | 67.4 | 88.4 |
Income (loss) from continuing operations | 31.7 | 56.6 | 124.1 | 159.2 |
Income (loss) from discontinued operations, net of tax | 0 | (0.7) | 0 | (2.8) |
Net income (loss) | 31.7 | 55.9 | 124.1 | 156.4 |
Less: Net income attributable to noncontrolling interests | 3.3 | 3.6 | 8.4 | 9 |
Net income (loss) attributable to ATI | 28.4 | 52.3 | 115.7 | 147.4 |
Comprehensive income (loss) attributable to ATI | 16.7 | 34.1 | 101.9 | 136.8 |
Consolidation Eliminations | ||||
Income Statement [Abstract] | ||||
Sales | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Selling and administrative expenses | 0 | 0 | 0 | 0 |
Income (loss) before interest, other income and income taxes | 0 | 0 | 0 | 0 |
Interest income (expense), net | 0 | 0 | 0 | 0 |
Other income (loss) including equity in income of unconsolidated subsidiaries | 56.2 | (65.7) | (59.6) | (168.5) |
Income (loss) from continuing operations before income tax provision (benefit) | 56.2 | (65.7) | (59.6) | (168.5) |
Income tax provision (benefit) | 24.1 | (18.8) | (21.1) | (60.7) |
Income (loss) from continuing operations | 32.1 | (46.9) | (38.5) | (107.8) |
Income (loss) from discontinued operations, net of tax | 0 | 0.7 | 0 | 2.8 |
Net income (loss) | 32.1 | (46.2) | (38.5) | (105) |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to ATI | 32.1 | (46.2) | (38.5) | (105) |
Comprehensive income (loss) attributable to ATI | $ 44.6 | $ (31.7) | $ (30.5) | $ (99.2) |
Financial Information for Sub53
Financial Information for Subsidiary and Guarantor Parent (Cash Flow) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows | ||
Cash flows provided by (used in) operating activities | $ 108.9 | $ (38.2) |
Investing Activities: | ||
Purchases of property, plant and equipment | (99.5) | (157.5) |
Purchases of businesses, net of cash acquired | (0.5) | (92.5) |
Net receipts/(payments) on intercompany activity | 0 | 0 |
Asset disposals and other | 0 | 1.9 |
Cash used in investing activities | (100) | (248.1) |
Financing Activities: | ||
Payments on long-term debt and capital leases | (23.3) | (414.7) |
Net receipts/(payments) on intercompany activity | 0 | 0 |
Dividends paid to stockholders | (57.9) | (57.8) |
Other | 0.3 | (3.8) |
Cash used in financing activities | (80.9) | (476.3) |
Decrease in cash and cash equivalents | (72) | (762.6) |
Parent Company | ||
Statement of Cash Flows | ||
Cash flows provided by (used in) operating activities | (61.3) | (60) |
Investing Activities: | ||
Purchases of property, plant and equipment | (0.1) | (0.1) |
Purchases of businesses, net of cash acquired | 0 | 0 |
Net receipts/(payments) on intercompany activity | 0 | 0 |
Asset disposals and other | 0 | 0 |
Cash used in investing activities | (0.1) | (0.1) |
Financing Activities: | ||
Payments on long-term debt and capital leases | (0.4) | (397.8) |
Net receipts/(payments) on intercompany activity | 124.2 | 521.9 |
Dividends paid to stockholders | (57.9) | (57.8) |
Other | (1.3) | (3.8) |
Cash used in financing activities | 64.6 | 62.5 |
Decrease in cash and cash equivalents | 3.2 | 2.4 |
Subsidiaries | ||
Statement of Cash Flows | ||
Cash flows provided by (used in) operating activities | (171.1) | (263.2) |
Investing Activities: | ||
Purchases of property, plant and equipment | (45) | (117.2) |
Purchases of businesses, net of cash acquired | 0 | 0 |
Net receipts/(payments) on intercompany activity | 0 | 0 |
Asset disposals and other | 0.2 | 1.6 |
Cash used in investing activities | (44.8) | (115.6) |
Financing Activities: | ||
Payments on long-term debt and capital leases | (0.1) | (0.1) |
Net receipts/(payments) on intercompany activity | 209.1 | 383.5 |
Dividends paid to stockholders | 0 | 0 |
Other | 0 | 0 |
Cash used in financing activities | 209 | 383.4 |
Decrease in cash and cash equivalents | (6.9) | 4.6 |
NonGuarantor Subsidiaries | ||
Statement of Cash Flows | ||
Cash flows provided by (used in) operating activities | 341.3 | 285 |
Investing Activities: | ||
Purchases of property, plant and equipment | (54.4) | (40.2) |
Purchases of businesses, net of cash acquired | (0.5) | (92.5) |
Net receipts/(payments) on intercompany activity | (333.3) | (905.4) |
Asset disposals and other | (0.2) | 0.3 |
Cash used in investing activities | (388.4) | (1,037.8) |
Financing Activities: | ||
Payments on long-term debt and capital leases | (22.8) | (16.8) |
Net receipts/(payments) on intercompany activity | 0 | 0 |
Dividends paid to stockholders | 0 | 0 |
Other | 1.6 | 0 |
Cash used in financing activities | (21.2) | (16.8) |
Decrease in cash and cash equivalents | (68.3) | (769.6) |
Consolidation Eliminations | ||
Statement of Cash Flows | ||
Cash flows provided by (used in) operating activities | 0 | 0 |
Investing Activities: | ||
Purchases of property, plant and equipment | 0 | 0 |
Purchases of businesses, net of cash acquired | 0 | 0 |
Net receipts/(payments) on intercompany activity | 333.3 | 905.4 |
Asset disposals and other | 0 | 0 |
Cash used in investing activities | 333.3 | 905.4 |
Financing Activities: | ||
Payments on long-term debt and capital leases | 0 | 0 |
Net receipts/(payments) on intercompany activity | (333.3) | (905.4) |
Dividends paid to stockholders | 0 | 0 |
Other | 0 | 0 |
Cash used in financing activities | (333.3) | (905.4) |
Decrease in cash and cash equivalents | $ 0 | $ 0 |
Financial Information for Sub54
Financial Information for Subsidiary and Guarantor Parent (Changes) (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Current assets | $ 2,098.6 | $ 2,482.1 | ||
Assets | 6,161.1 | 6,582.6 | ||
Current liabilities | 737.1 | 959.9 | ||
Liabilities | 3,643.5 | 3,861.2 | ||
Stockholders' equity | 2,505.5 | $ 2,979.6 | 2,709.3 | $ 2,994.7 |
Cash flows provided by (used in) operating activities | 108.9 | (38.2) | ||
Net Cash Provided by (Used in) Investing Activities | (100) | (248.1) | ||
Cash used in financing activities | (80.9) | (476.3) | ||
NonGuarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Current assets | 4,207.9 | 4,183.1 | ||
Assets | 6,727.8 | 6,758 | ||
Current liabilities | 414.2 | 471.1 | ||
Liabilities | 678.6 | 855.9 | ||
Stockholders' equity | 6,037.1 | 5,890 | ||
Cash flows provided by (used in) operating activities | 341.3 | 285 | ||
Net Cash Provided by (Used in) Investing Activities | (388.4) | (1,037.8) | ||
Cash used in financing activities | (21.2) | (16.8) | ||
Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Current assets | 440.8 | 623.8 | ||
Assets | 2,196.1 | 2,361.2 | ||
Current liabilities | 1,419.9 | 1,532.3 | ||
Liabilities | 2,044.8 | 2,064.1 | ||
Stockholders' equity | 151.3 | 297.1 | ||
Cash flows provided by (used in) operating activities | (171.1) | (263.2) | ||
Net Cash Provided by (Used in) Investing Activities | (44.8) | (115.6) | ||
Cash used in financing activities | 209 | 383.4 | ||
Parent Company | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Current assets | 10.9 | 66 | ||
Assets | 6,186.6 | 6,241.3 | ||
Current liabilities | 1,464 | 1,347.3 | ||
Liabilities | 3,681.1 | 3,532 | ||
Stockholders' equity | 2,505.5 | 2,709.3 | ||
Cash flows provided by (used in) operating activities | (61.3) | (60) | ||
Net Cash Provided by (Used in) Investing Activities | (0.1) | (0.1) | ||
Cash used in financing activities | 64.6 | 62.5 | ||
Consolidation Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Current assets | (2,561) | (2,390.8) | ||
Assets | (8,949.4) | (8,777.9) | ||
Current liabilities | (2,561) | (2,390.8) | ||
Liabilities | (2,761) | (2,590.8) | ||
Stockholders' equity | (6,188.4) | $ (6,187.1) | ||
Cash flows provided by (used in) operating activities | 0 | 0 | ||
Net Cash Provided by (Used in) Investing Activities | 333.3 | 905.4 | ||
Cash used in financing activities | $ (333.3) | $ (905.4) |
Accumulated Other Comprehensi55
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | $ (907.3) | $ (664.2) | $ (931.4) | $ (713.2) | ||||
OCI before reclassifications | (28.6) | (1.2) | (26.5) | 19.9 | ||||
Amounts reclassified from AOCI | 10.5 | 11.8 | 32.5 | 39.7 | ||||
Net current-period OCI | (18.1) | 10.6 | 6 | 59.6 | ||||
Ending balance | (925.4) | (653.6) | (925.4) | (653.6) | ||||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||
Beginning balance | 25.3 | 24.1 | 25 | 27.1 | ||||
OCI before reclassifications | (4.1) | 1.8 | (3.8) | (1.2) | ||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||||
Net current-period OCI | (4.1) | 1.8 | (3.8) | (1.2) | ||||
Ending balance | 21.2 | 25.9 | 21.2 | 25.9 | ||||
Post- retirement benefit plans [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (906.5) | (692) | (931.5) | (718.9) | ||||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from AOCI | 12.5 | [1] | 13.4 | [2] | 37.5 | [1] | 40.3 | [2] |
Net current-period OCI | 12.5 | 13.4 | 37.5 | 40.3 | ||||
Ending balance | (894) | (678.6) | (894) | (678.6) | ||||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||
Beginning balance | 0 | 0 | 0 | 0 | ||||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||||
Net current-period OCI | 0 | 0 | 0 | 0 | ||||
Ending balance | 0 | 0 | 0 | 0 | ||||
Currency translation adjustment [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (19) | 22.7 | (16.2) | 15.3 | ||||
OCI before reclassifications | (12.1) | (18.4) | (14.9) | (11) | ||||
Amounts reclassified from AOCI | 0 | [3] | 0 | [4] | 0 | [3] | 0 | [4] |
Net current-period OCI | (12.1) | (18.4) | (14.9) | (11) | ||||
Ending balance | (31.1) | 4.3 | (31.1) | 4.3 | ||||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||
Beginning balance | 25.3 | 24.1 | 25 | 27.1 | ||||
OCI before reclassifications | (4.1) | 1.8 | (3.8) | (1.2) | ||||
Amounts reclassified from AOCI | 0 | [3] | 0 | [4] | 0 | [3] | 0 | [4] |
Net current-period OCI | (4.1) | 1.8 | (3.8) | (1.2) | ||||
Ending balance | 21.2 | 25.9 | 21.2 | 25.9 | ||||
Unrealized holding gains on securities [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | (0.1) | 0.1 | 0 | 0 | ||||
OCI before reclassifications | 0 | 0 | (0.1) | 0.1 | ||||
Amounts reclassified from AOCI | 0 | [3] | 0 | [4] | 0 | [3] | 0 | [4] |
Net current-period OCI | 0 | 0 | (0.1) | 0.1 | ||||
Ending balance | (0.1) | 0.1 | (0.1) | 0.1 | ||||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||
Beginning balance | 0 | 0 | 0 | 0 | ||||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||||
Net current-period OCI | 0 | 0 | 0 | 0 | ||||
Ending balance | 0 | 0 | 0 | 0 | ||||
Derivatives [Member] | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Beginning balance | 18.3 | 5 | 16.3 | (9.6) | ||||
OCI before reclassifications | (16.5) | 17.2 | (11.5) | 30.8 | ||||
Amounts reclassified from AOCI | (2) | [5] | (1.6) | [6] | (5) | [5] | (0.6) | [6] |
Net current-period OCI | (18.5) | 15.6 | (16.5) | 30.2 | ||||
Ending balance | (0.2) | 20.6 | (0.2) | 20.6 | ||||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||||
Beginning balance | 0 | 0 | 0 | 0 | ||||
OCI before reclassifications | 0 | 0 | 0 | 0 | ||||
Amounts reclassified from AOCI | 0 | 0 | 0 | 0 | ||||
Net current-period OCI | 0 | 0 | 0 | 0 | ||||
Ending balance | $ 0 | $ 0 | $ 0 | $ 0 | ||||
[1] | Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 7). | |||||||
[2] | Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 7). | |||||||
[3] | No amounts were reclassified to earnings. | |||||||
[4] | No amounts were reclassified to earnings. | |||||||
[5] | Amounts are included in cost of goods sold in the period or periods the hedged item affects earnings (see Note 5). | |||||||
[6] | Amounts are included in cost of goods sold in the period or periods the hedged item affects earnings (see Note 5). |
Accumulated Other Comprehensi56
Accumulated Other Comprehensive Income (Loss) (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization to net loss of net prior service cost (credits) | $ 1.5 | $ (0.2) | $ 4.5 | $ (0.5) | |
Amount reclassified from AOCI, Postretirement benefit plans, Actuarial losses | 18.8 | 22.1 | 56.2 | 66.1 | |
Income (loss) from continuing operations before income tax provision (benefit) | (117.9) | 4.1 | (118.9) | (25.3) | |
Income tax provision (benefit) | 23.4 | 0.5 | 23.7 | (12.4) | |
Income (loss) from continuing operations | (141.3) | 3.6 | (142.6) | (12.9) | |
Amount reclassified from AOCI, Gain (loss) on derivatives | (861.4) | (972.6) | (2,822.9) | (2,919.2) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Post- retirement benefit plans [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization to net loss of net prior service cost (credits) | [1] | (1.5) | 0.2 | (4.5) | 0.5 |
Amount reclassified from AOCI, Postretirement benefit plans, Actuarial losses | [1] | (18.8) | (22.1) | (56.2) | (66.1) |
Income (loss) from continuing operations before income tax provision (benefit) | [2] | (20.3) | (21.9) | (60.7) | (65.6) |
Income tax provision (benefit) | (7.8) | (8.5) | (23.2) | (25.3) | |
Income (loss) from continuing operations | (12.5) | (13.4) | (37.5) | (40.3) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Income (loss) from continuing operations before income tax provision (benefit) | [2] | 3.3 | 2.6 | 8.1 | 1 |
Income tax provision (benefit) | 1.3 | 1 | 3.1 | 0.4 | |
Income (loss) from continuing operations | 2 | 1.6 | 5 | 0.6 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Nickel and other raw material contracts | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amount reclassified from AOCI, Gain (loss) on derivatives | [3] | (3.9) | 2.1 | (11.4) | 0.8 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Natural gas contracts | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amount reclassified from AOCI, Gain (loss) on derivatives | [3] | (2.6) | 0 | (10.4) | 3.9 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Electricity contracts | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amount reclassified from AOCI, Gain (loss) on derivatives | [3] | 0 | (0.1) | (0.2) | 0.7 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Foreign exchange contracts | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Amount reclassified from AOCI, Gain (loss) on derivatives | [3] | $ 9.8 | $ 0.6 | $ 30.1 | $ (4.4) |
[1] | Amounts are included in the computation of pension and other postretirement benefit expense, which is reported in both cost of goods sold and selling and administrative expenses. For additional information, see Note 7. | ||||
[2] | For pretax items, positive amounts are income and negative amounts are expense in terms of the impact to net income. Tax effects are presented in conformity with ATI’s presentation in the consolidated statements of operations. | ||||
[3] | Amounts are included in cost of goods sold in the period or periods the hedged item affects earnings. For additional information, see Note 5. |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2015USD ($) |
Components of Environmental Loss Accrual [Abstract] | |
Accrual For Environmental Loss Contingencies | $ 16 |
Accrued Environmental Loss Contingencies Current | 9 |
Federal Superfund and comparable state-managed sites | 4 |
Formerly owned or operated sites | 10 |
Owned or controlled sites at which Company operations have been discontinued | 1 |
Sites utilized by the company in its ongoing operations | 1 |
Loss Contingency, Estimate [Abstract] | |
Loss contingency maximum possible loss | $ 18 |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2015USD ($) | |
Subsequent Event | Employee severance and post-employment benefits | |
Subsequent Event [Line Items] | |
Expense due to reduction in workforce | $ 6 |