Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 08, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
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 Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 125,684,396 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Public Float | $ 3.2 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||||||||||
Sales | $ 1,037.9 | $ 1,020.2 | $ 1,009.5 | $ 979 | $ 909.9 | $ 869.1 | $ 880.2 | $ 865.9 | $ 4,046.6 | $ 3,525.1 | $ 3,134.6 |
Costs and expenses: | |||||||||||
Cost of sales | 3,416.3 | 3,028.1 | 2,911.8 | ||||||||
Gross profit | 147.6 | 160.4 | 173.7 | 148.6 | 142.6 | 105.3 | 124.3 | 124.8 | 630.3 | 497 | 222.8 |
Selling and administrative expenses | 268.2 | 248 | 240.8 | ||||||||
Impairment of goodwill | 114.4 | 0 | 114.4 | 0 | |||||||
Restructuring charges | 0 | 0 | 523.8 | ||||||||
Operating income (loss) | 362.1 | 134.6 | (541.8) | ||||||||
Nonoperating retirement benefit expense | (33.9) | (54.3) | (70.6) | ||||||||
Interest expense, net | (101) | (133.8) | (124) | ||||||||
Debt extinguishment charge | (37) | 0 | (37) | 0 | |||||||
Other income, net | 20.5 | 4 | 2.4 | ||||||||
Income (loss) before income taxes | 247.7 | (86.5) | (734) | ||||||||
Income tax provision (benefit) | 11 | (6.8) | (106.9) | ||||||||
Net income (loss) | 45 | 55.6 | 75.6 | 60.5 | 5.2 | (119.4) | 13.4 | 21.1 | 236.7 | (79.7) | (627.1) |
Less: Net income attributable to noncontrolling interests | 14.3 | 12.2 | 13.8 | ||||||||
Net income (loss) attributable to ATI | $ 41.1 | $ 50.5 | $ 72.8 | $ 58 | $ 1.7 | $ (121.2) | $ 10.1 | $ 17.5 | $ 222.4 | $ (91.9) | $ (640.9) |
Basic net income (loss) per common share | |||||||||||
Continuing operations attributable to ATI per common share (in dollars per share) | $ 1.78 | $ (0.83) | $ (5.97) | ||||||||
Basic net income (loss) attributable to ATI per common share (in dollars per share) | $ 0.33 | $ 0.40 | $ 0.58 | $ 0.46 | $ 0.01 | $ (1.12) | $ 0.09 | $ 0.16 | 1.78 | (0.83) | (5.97) |
Diluted net income (loss) per common share | |||||||||||
Continuing operations attributable to ATI per common share (in dollars per share) | 1.61 | (0.83) | (5.97) | ||||||||
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ 0.30 | $ 0.37 | $ 0.52 | $ 0.42 | $ 0.01 | $ (1.12) | $ 0.09 | $ 0.16 | $ 1.61 | $ (0.83) | $ (5.97) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 236.7 | $ (79.7) | $ (627.1) |
Currency translation adjustment | |||
Unrealized net change arising during the period | (26.6) | 39.1 | (47.1) |
Total | (26.6) | 39.1 | (47.1) |
Derivatives | |||
Net derivatives gain (loss) on hedge transactions | (6.4) | 14.3 | 21.2 |
Reclassification to net income (loss) of net realized loss (gain) | (11.7) | (7.2) | 7.9 |
Income taxes on derivative transactions | 0 | 0 | 9.5 |
Total | (18.1) | 7.1 | 19.6 |
Postretirement benefit plans- Actuarial loss | |||
Amortization of net actuarial loss | 76.5 | 71.6 | 75 |
Net loss arising during the period | (141.4) | (42.7) | (92.1) |
Postretirement benefit plans- Prior Service Cost | |||
Amortization to net income (loss) of net prior service cost (credits) | (2.6) | (1.6) | (0.4) |
Income taxes on postretirement benefit plans | 0 | 0 | 43.9 |
Total | (67.5) | 27.3 | (61.4) |
Other comprehensive income (loss), net of tax | (112.2) | 73.5 | (88.9) |
Comprehensive income (loss) | 124.5 | (6.2) | (716) |
Less: Comprehensive income attributable to noncontrolling interests | 8.1 | 19.8 | 4.1 |
Comprehensive income (loss) attributable to ATI | $ 116.4 | $ (26) | $ (720.1) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 382 | $ 141.6 |
Accounts receivable, net | 527.8 | 545.3 |
Short-term contract assets | 51.2 | 0 |
Inventories, net | 1,211.1 | 1,176.1 |
Prepaid expenses and other current assets | 74.6 | 52.7 |
Total Current Assets | 2,246.7 | 1,915.7 |
Property, plant and equipment, net | 2,475 | 2,495.7 |
Goodwill | 534.7 | 531.4 |
Other assets | 245.4 | 242.6 |
Total Assets | 5,501.8 | 5,185.4 |
Liabilities and Stockholders’ Equity | ||
Accounts payable | 498.8 | 420.1 |
Accrued liabilities | 260.1 | 282.4 |
Short-term contract liabilities | 71.4 | 0 |
Short-term debt and current portion of long-term debt | 6.6 | 10.1 |
Total Current Liabilities | 836.9 | 712.6 |
Long-term debt | 1,535.5 | 1,530.6 |
Accrued postretirement benefits | 318.4 | 317.8 |
Pension liabilities | 730 | 697 |
Deferred income taxes | 12.9 | 9.7 |
Long-term contract liabilities | 7.3 | 0 |
Other long-term liabilities | 69.2 | 73.2 |
Total Liabilities | 3,510.2 | 3,340.9 |
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- 126,695,171 shares at December 31, 2018 and 2017; outstanding-125,684,396 shares at December 31, 2018 and 125,857,197 shares at December 31, 2017 | 12.7 | 12.7 |
Additional paid-in capital | 1,615.4 | 1,596.3 |
Retained earnings | 1,422 | 1,184.3 |
Treasury stock: 1,010,775 shares at December 31, 2018 and 837,974 shares at December 31, 2017 | (30.6) | (26.1) |
Accumulated other comprehensive loss, net of tax | (1,133.8) | (1,027.8) |
Total ATI Stockholders’ Equity | 1,885.7 | 1,739.4 |
Noncontrolling interests | ||
Noncontrolling Interests | 105.9 | 105.1 |
Total Stockholders’ Equity | 1,991.6 | 1,844.5 |
Total Liabilities and Stockholders’ Equity | $ 5,501.8 | $ 5,185.4 |
Consolidated Balance Sheets (PA
Consolidated Balance Sheets (PARENTHETICAL) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.10 | $ 0.10 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.10 | $ 0.10 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, issued | 126,695,171 | 126,695,171 |
Common stock, oustanding | 125,684,396 | 125,857,197 |
Treasury Stock | 1,010,775 | 837,974 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Activities: | |||
Net income (loss) | $ 236.7 | $ (79.7) | $ (627.1) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 156.4 | 160.8 | 170.3 |
Deferred taxes | 2.1 | (1.4) | (119.8) |
Gain on joint venture deconsolidation | (15.9) | 0 | 0 |
Impairment of goodwill | 0 | 114.4 | 0 |
Non-cash restructuring charges | 0 | 0 | 471.3 |
Debt extinguishment charge | 0 | 37 | 0 |
Change in operating assets and liabilities: | |||
Retirement benefits | (32.6) | (110.3) | (80) |
Accounts receivable | 16 | (93.2) | (51.8) |
Inventories | (108.5) | (139.2) | 234.7 |
Accounts payable | 153.7 | 125.8 | (51.2) |
Accrued income taxes | 1.4 | (1.9) | 9.3 |
Accrued liabilities and other | (16.5) | 10.1 | 0.6 |
Cash provided by (used in) operating activities | 392.8 | 22.4 | (43.7) |
Investing Activities: | |||
Purchases of property, plant and equipment | (139.2) | (122.7) | (202.2) |
Purchases of businesses | (10) | 0 | 0 |
Asset disposals and other | 4.1 | 3.1 | 2.2 |
Cash flows provided by (used in) investing activities | (145.1) | (119.6) | (200) |
Financing Activities: | |||
Borrowings on long-term debt | 7.1 | 8.5 | 387.5 |
Payments on long-term debt and capital leases | (6.4) | (353) | (2.7) |
Net (payments) borrowings under credit facilities | (5.9) | 1.6 | 3.1 |
Debt issuance costs | 0 | (0.8) | (10.4) |
Debt extinguishment charge | 0 | (35.8) | 0 |
Issuance of common stock | 0 | 397.8 | 0 |
Dividends paid to shareholders | 0 | 0 | (25.8) |
Dividends paid to noncontrolling interests | (10) | (8) | (16) |
Sale to noncontrolling interest | 14.4 | 3.7 | 0 |
Acquisition of noncontrolling interests | 0 | 0 | (12.2) |
Shares repurchased for income tax withholding on share-based compensation | (6.5) | (4.8) | 0 |
Cash (used in) provided by financing activities | (7.3) | 9.2 | 323.5 |
Increase (decrease) in cash and cash equivalents | 240.4 | (88) | 79.8 |
Cash and cash equivalents at beginning of year | 141.6 | 229.6 | 149.8 |
Cash and cash equivalents at end of year | $ 382 | $ 141.6 | $ 229.6 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - Pension Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employer contributions | $ 49.3 | $ 143.4 | |
U.S. [Member] | |||
Employer contributions | $ 40 | $ 135 | $ 115 |
Statements of Changes in Consol
Statements of Changes in Consolidated Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Beginning balance at Dec. 31, 2015 | $ 2,184.4 | $ 11 | $ 1,161.7 | $ 1,945.9 | $ (21.3) | $ (1,014.5) | $ 101.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (627.1) | (640.9) | 13.8 | ||||
Other comprehensive income (loss) | (88.9) | (79.2) | (9.7) | ||||
Cash dividends on common stock | (25.8) | (25.8) | |||||
Purchase of subsidiary shares from noncontrolling interest | (0.1) | (0.1) | |||||
Dividends paid to noncontrolling interest | (16) | (16) | |||||
Employee Stock Plans | 18.3 | 27.1 | (2.1) | (6.7) | |||
Ending balance at Dec. 31, 2016 | 1,444.8 | 11 | 1,188.8 | 1,277.1 | (28) | (1,093.7) | 89.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (79.7) | (91.9) | 12.2 | ||||
Other comprehensive income (loss) | 73.5 | 65.9 | 7.6 | ||||
Issuance of common stock | 397.8 | 1.7 | 396.1 | ||||
Dividends paid to noncontrolling interest | (8) | (8) | |||||
Sales of subsidiary shares to noncontrolling interest | 3.7 | 3.7 | |||||
Employee Stock Plans | 12.4 | 11.4 | (0.9) | 1.9 | |||
Ending balance at Dec. 31, 2017 | 1,844.5 | 12.7 | 1,596.3 | 1,184.3 | (26.1) | (1,027.8) | 105.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | 236.7 | 222.4 | 14.3 | ||||
Other comprehensive income (loss) | (112.2) | (106) | (6.2) | ||||
Cumulative effect of adoption of new accounting standard | 15.5 | 15.5 | |||||
Dividends paid to noncontrolling interest | (10) | (10) | |||||
Sales of subsidiary shares to noncontrolling interest | 2.7 | 2.7 | |||||
Employee Stock Plans | 14.4 | 19.1 | (0.2) | (4.5) | |||
Ending balance at Dec. 31, 2018 | $ 1,991.6 | $ 12.7 | $ 1,615.4 | $ 1,422 | $ (30.6) | $ (1,133.8) | $ 105.9 |
Statements of Changes in Cons_2
Statements of Changes in Consolidated Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends on common stock per share | $ 0 | $ 0 | $ 0.24 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of Allegheny Technologies Incorporated and its subsidiaries. The financial results of majority-owned joint ventures are consolidated into the Company’s operating results and financial position, with the minority ownership interest recognized in the consolidated statement of operations as net income attributable to noncontrolling interests, and as equity attributable to the noncontrolling interests within total stockholders’ equity. Investments in which the Company exercises significant influence, but which it does not control (generally a 20% to 50% ownership interest) are accounted for under the equity method of accounting, whereby ATI’s carrying value of the equity method investment on the statement of financial position is the capital investment and any undistributed profit or loss, and is classified in Other (noncurrent) assets. The profit or loss attributable to ATI from equity method investments is included in the results of operations. See Note 6 for further explanation of the Company’s joint ventures. Intercompany accounts and transactions have been eliminated. Unless the context requires otherwise, “Allegheny Technologies,” “ATI” and the “Company” refer to Allegheny Technologies Incorporated and its subsidiaries. Risks and Uncertainties and Use of Estimates The preparation of consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Management believes that the estimates are reasonable. Certain prior year amounts have been reclassified in order to conform with the 2018 presentation. The Company markets its products to a diverse customer base, principally throughout the United States. No single customer accounted for more than 10% of sales for any year presented. The major end markets for the ATI’s products are customers in the aerospace & defense, oil & gas, electrical energy, automotive, construction and mining, food equipment and appliances, and medical markets. At December 31, 2018, ATI has approximately 8,800 full-time employees, of which approximately 15% are located outside the United States. Approximately 40% of ATI’s workforce is covered by various collective bargaining agreements (CBAs), predominantly with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied & Industrial Service Workers International Union, AFL-CIO, CLC (USW). New CBAs were ratified in 2018 with approximately 900 USW-represented employees, and there are no expired CBAs as of the end of 2018. The Company’s next significant CBA expiration date is in the first quarter of 2020 involving USW-represented employees located primarily within the Flat Rolled Products segment operations and at two facilities in the High Performance Materials & Components segment. Cash and Cash Equivalents Cash equivalents are highly liquid investments that are readily convertible to cash with original maturities of three months or less. Accounts Receivable Accounts receivable are presented net of a reserve for doubtful accounts of $6.0 million and $5.9 million at December 31, 2018 and 2017 , respectively. Trade credit is extended based upon evaluations of each customer’s ability to perform its obligations, which are updated periodically. Accounts receivable reserves are determined based upon an aging of accounts and a review for collectability of specific accounts. Amounts are written-off against the reserve in the period it is determined that the receivable is uncollectible. Inventories Inventories are stated at the lower of cost (last-in, first-out (LIFO), first-in, first-out (FIFO), and average cost methods) or market. Costs include direct material, direct labor and applicable manufacturing and engineering overhead, and other direct costs. 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 Company evaluates product lines on a quarterly basis to identify inventory carrying values that exceed estimated net realizable value. In applying the lower of cost or market principle, market means current replacement cost, subject to a ceiling (market value shall not exceed net realizable value) and a floor (market shall not be less than net realizable value reduced by an allowance for a normal profit margin). The calculation of a resulting reserve, if any, is recognized as an expense in the period that the need for the reserve is identified. However, in cases where inventory at FIFO cost is lower than the LIFO carrying value, a write-down of the inventory to market may be required, subject to the ceiling and floor. It is the Company’s general policy to write-down to scrap value any inventory that is identified as slow-moving or aged more than twelve months, subject to sales, backlog and anticipated orders considerations. In some instances this aging criterion is up to twenty-four months. Long-Lived Assets Property, plant and equipment are recorded at cost, including capitalized interest, and include long-lived assets acquired under capital leases. Depreciation is primarily recorded using the straight-line method. Property, plant and equipment associated with the Hot-Rolling and Processing Facility (HRPF) in the Flat Rolled Products segment, and the Company’s idled Rowley titanium sponge production facility in the High Performance Materials & Components segment (prior to its indefinite idling in August 2016 - see Note 17 for further explanation), are being depreciated utilizing the units of production method of depreciation, which the Company believes provides a better matching of costs and revenues. The Company periodically reviews estimates of useful life and production capacity assigned to new and in service assets. Significant enhancements, including major maintenance activities that extend the lives of property and equipment, are capitalized. Costs related to repairs and maintenance are charged to expense in the period incurred. The cost and related accumulated depreciation of property and equipment retired or disposed of are removed from the accounts and any related gains or losses are included in income. The Company monitors the recoverability of the carrying value of its long-lived assets. An impairment charge is recognized when an indicator of impairment occurs and the expected net undiscounted future cash flows from an asset’s use (including any proceeds from disposition) are less than the asset’s carrying value and the asset’s carrying value exceeds its fair value. Assets to be disposed of by sale are stated at the lower of their fair values or carrying amounts and depreciation is no longer recognized. Goodwill Goodwill is reviewed annually for impairment, or more frequently if impairment indicators arise. The review for goodwill impairment requires a comparison of the fair value of each reporting unit that has goodwill associated with its operations with its carrying amount, including goodwill. If this comparison reflects impairment, then the loss would be measured as the excess of the carrying value over the calculated fair value. Generally accepted accounting standards provide the option to qualitatively assess goodwill for impairment before completing a quantitative assessment. Under the qualitative approach, if, after assessing the totality of events or circumstances, including both macroeconomic, industry and market factors, and entity-specific factors, the Company determines it is likely (more likely than not) that the fair value of a reporting unit is greater than its carrying amount, then the quantitative impairment analysis is not required. The quantitative assessment may be performed each year for a reporting unit at the Company’s option without first performing a qualitative assessment. The Company’s quantitative assessment of goodwill for possible impairment includes estimating the fair market value of a reporting unit which has goodwill associated with its operations using discounted cash flow and multiples of cash earnings valuation techniques, plus valuation comparisons to recent public sale transactions of similar businesses, if any. These impairment assessments and valuation methods require the Company to make estimates and assumptions regarding future operating results, cash flows, changes in working capital and capital expenditures, selling prices, profitability, and the cost of capital. Many of these assumptions are determined by reference to market participants identified by the Company. Although management believes that the estimates and assumptions used were reasonable, actual results could differ from those estimates and assumptions. Other events and changes in circumstances may also require goodwill to be tested for impairment between annual measurement dates. While a decline in stock price and market capitalization is not specifically cited as a goodwill impairment indicator, a company’s stock price and market capitalization should be considered in determining whether it is more likely than not that the fair value of a reporting unit is less that its carrying value. Additionally, a significant decline in a company’s stock price may suggest that an adverse change in the business climate may have caused the fair value of one or more reporting units to fall below carrying value. A sustained decline in market capitalization below book value may be determined to require an interim goodwill impairment review. Environmental Costs that mitigate or prevent future environmental contamination or extend the life, increase the capacity or improve the safety or efficiency of property utilized in current operations are capitalized. Other costs that relate to current operations or an existing condition caused by past operations are expensed. Environmental liabilities are recorded when the Company’s liability is probable and the costs are reasonably estimable, but generally not later than the completion of the feasibility study or the Company’s recommendation of a remedy or commitment to an appropriate plan of action. The accruals are reviewed periodically and, as investigations and remediations proceed, adjustments of the accruals are made to reflect new information as appropriate. Accruals for losses from environmental remediation obligations do not take into account the effects of inflation, and anticipated expenditures are not discounted to their present value. The accruals are not reduced by possible recoveries from insurance carriers or other third parties, but do reflect allocations among potentially responsible parties (PRPs) at Federal Superfund sites or similar state-managed sites after an assessment is made of the likelihood that such parties will fulfill their obligations at such sites and after appropriate cost-sharing or other agreements are entered. The measurement of environmental liabilities by the Company is based on currently available facts, present laws and regulations, and current technology. Such estimates take into consideration the Company’s prior experience in site investigation and remediation, the data concerning cleanup costs available from other companies and regulatory authorities, and the professional judgment of the Company’s environmental experts in consultation with outside environmental specialists, when necessary. Foreign Currency Translation Assets and liabilities of international operations are translated into U.S. dollars using year-end exchange rates, while revenues and expenses are translated at average exchange rates during the period. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity. Sales Recognition On January 1, 2018, the Company adopted Accounting Standards Codification Topic 606 (ASC 606), Revenue from Contracts with Customers. This new guidance provides a five-step analysis of transactions to determine when and how revenue is recognized, and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The following is the Company’s accounting policy as it relates to the five-step analysis for revenue recognition: 1. Identify the contract : The Company has determined that the contract with the customer is established when the customer purchase order is accepted or acknowledged. Long-term agreements (LTAs),which typically extend multiple years, are used by the Company and certain of its customers for its specialty materials, in the form of mill products, powders, parts and components, to reduce their supply uncertainty. While these LTAs generally define commercial terms including pricing, termination clauses and other contractual requirements, they do not represent the contract with the customer. 2. Identify the performance obligation in the contract : When the Company accepts or acknowledges the customer purchase order, the type of good or service is defined on a line by line basis. Individual performance obligations are established by virtue of the individual line items identified on the sales order acknowledgment at the time of issuance. Generally, the Company’s revenue relates to the sale of goods and contains a single performance obligation for each distinct good. Conversion services that transform customer-owned inventory to a different dimension, product form, and/or changed mechanical properties are classified as “goods”. 3. Determine the transaction price : Pricing is also defined on a sales order acknowledgment on a line item basis and includes an estimate of variable consideration when required by the terms of the individual customer contract. Variable consideration is when the selling price of the good is not known, or is subject to adjustment under certain conditions. Types of variable consideration may include volume discounts, customer rebates and surcharges. ATI also provides assurances that goods or services will meet the product specifications contained within the acknowledged customer contract. As such, returns and refunds reserves are estimated based upon past product line history or, at certain locations, on a claim by claim basis. 4. Allocate the transaction price to the performance obligation : Since a customer contract generally contains only one performance obligation, this step of the analysis is generally not applicable to the Company. 5. Recognize revenue when or as the performance obligation is satisfied : Performance obligations generally occur at a point in time and are satisfied when control passes to the customer. For most transactions, control passes at the time of shipment in accordance with agreed upon delivery terms. On occasion, shipping and handling charges occur after the customer obtains control of the good. When this occurs, the shipping and handling services are considered activities to fulfill the promise to transfer the good. This approach is consistent with our revenue recognition approach in prior years. The Company has several customer agreements involving production of parts and components in the High Performance Materials and Components segment that require revenue to be recognized over time due to there being no alternative use for the product without significant economic loss and an enforceable right to payment including a normal profit margin from the customer in the event of contract termination. The Company uses an input method for determining the amount of revenue, and associated standard cost, to recognize over-time revenue, cost and gross margin for these customer agreements. The input methods used for these agreements include costs incurred and labor hours expended, both of which give an accurate representation of the progress made toward complete satisfaction of that particular performance obligation. Contract assets are recognized when ATI’s conditional right to consideration for goods or services have transferred to the customer. A conditional right indicates that additional performance obligations associated with the contract are yet to be satisfied. Contract assets are assessed separately for impairment purposes. If ATI’s right to consideration from the customer is unconditional, this asset is accounted for as a receivable and presented separately from other contract assets. A right is unconditional if nothing other than the passage of time is required before payment of that consideration is due. Performance obligations that are recognized as revenue at a point-in-time and are billed to the customer are recognized as accounts receivable. Payment terms vary from customer to customer depending upon credit worthiness, prior payment history and other credit considerations. Contract costs are the incremental costs of obtaining and fulfilling a contract (i.e., costs that would not have been incurred if the contract had not been obtained) to provide goods and services to customers. Contract costs for ATI largely consist of design and development costs for molds, dies and other tools that ATI will own and that will be used in producing the products under the supply arrangement. Contract costs are classified as non-current assets and amortized to expense on a systematic and rational basis over a period consistent with the transfer to the customer of the goods or services to which the asset relates. Contract liabilities are recognized when ATI has received consideration from a customer to transfer goods or services at a future point in time when the Company performs under the contract. Elements of variable consideration discussed above may be recorded as contract liabilities. In addition, progress billings and advance payments from customers for costs incurred to date are also reported as contract liabilities. Research and Development Our research, development and technical service activities are closely interrelated and are directed toward development of new products, improvement of existing products, cost reduction, process improvement and control, quality assurance and control, development of new manufacturing methods, and improvement of existing manufacturing methods. Research and development costs are expensed as incurred. Company funded research and development costs were $22.7 million in 2018 , $13.3 million in 2017 , and $14.7 million in 2016 . Customer funded research and development costs were $2.2 million in 2018 , $1.4 million in 2017 , and $2.2 million in 2016 . Stock-based Compensation The Company accounts for stock-based compensation transactions, such as nonvested stock and performance equity awards, using fair value. Compensation expense for an award is estimated at the date of grant and is recognized over the requisite service period. Compensation expense is adjusted for equity awards that do not vest because service or performance conditions are not satisfied. However, compensation expense already recognized on plans which vest based solely on the attainment of market conditions, such as total shareholder return measures, is not adjusted based on the award attainment status at the end of the measurement period. Compensation expense is adjusted for estimated forfeitures over the award measurement period. Income Taxes The provision for, or benefit from, income taxes includes deferred taxes resulting from temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback and/or carryforward period available under tax law. The Company evaluates on a quarterly basis whether, based on all available evidence, it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is estimated that it is more likely than not that the tax benefit of the deferred tax asset will not be realized. The evaluation includes the consideration of all available evidence, both positive and negative, regarding the estimated future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards, historical taxable income in prior carryback periods if carryback is permitted, and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. The verifiable evidence such as future reversals of existing temporary differences and the ability to carryback are considered before the subjective sources such as estimate future taxable income exclusive of temporary differences and tax planning strategies. It is the Company’s policy to classify interest and penalties recognized on underpayment of income taxes as income tax expense. It is also the Company’s policy to recognize deferred tax amounts stranded in accumulated other comprehensive income (AOCI), which result from tax rate differences on changes in AOCI balances, as an element of income tax expense in the period that the related balance sheet item associated with the AOCI balance ceases to exist. In the case of derivative financial instruments accounted for as hedges, or marketable securities, ATI uses the portfolio method where the stranded deferred tax amount is recognized when all items of a particular category, such as cash flow hedges of a particular risk such as a foreign currency hedge, are settled. In the case of defined benefit pension and other postretirement benefit plans, the stranded deferred tax balance is recognized as an element of income tax expense in the period the benefit plan is extinguished. Net Income Per Common Share Basic and diluted net income per share are calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the year. Diluted amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding. The calculations of all diluted income/loss per share figures for a period exclude the potentially dilutive effect of dilutive share equivalents if there is a net loss since the inclusion in the calculation of additional shares in the net loss per share would result in a lower per share loss and therefore be anti-dilutive. New Accounting Pronouncements Adopted In January 2018, the Company adopted changes issued by the Financial Accounting Standards Board (FASB) related to revenue recognition with customers. See Note 2 for further explanation related to this adoption, including all newly expanded disclosure requirements. In January 2018, the Company adopted changes issued by the FASB related to changes to the accounting for defined benefit pension and other postretirement benefit expenses. This new guidance requires the disaggregation of the service cost component from the other components of net benefit cost. The service cost component of net benefit cost is now reported in the same line item on the consolidated statement of operations as other compensation costs arising from services rendered by the pertinent employees, while the other components of net benefit cost are now presented in the consolidated statement of operations separately, outside a subtotal of operating income. The amendments also provide explicit guidance to allow only the service cost component of net benefit cost to be eligible for capitalization. With this adoption, the change in presentation of net benefit cost in the consolidated statement of operations was applied retrospectively, and the change in capitalization for only service cost was applied prospectively. The Company adopted this new guidance using the practical expedient that permits the use of the amounts disclosed in the retirement benefits footnote for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. This required accounting change did have a material impact to previously-reported operating income (loss) in the consolidated statement of operations due to the change in presentation of non-service cost expense components. For the fiscal years of 2017 and 2016, applying the practical expedient, operating results were higher by $54.3 million and $70.6 million , respectively, with the reclassification of this amount representing the other components of net benefit cost to a newly-created nonoperating retirement benefit expense category. There was no net impact to the reported results before income taxes as a result of this accounting change. This change in presentation of net benefit cost did not affect ATI’s measure of segment operating profit; all defined benefit pension and other postretirement benefit expense attributable to business segment operations remains a component of business segment financial performance. The Company did have a one-time, unfavorable impact of $5.4 million to pre-tax reported results in 2018 upon adoption, primarily affecting the Flat Rolled Products business segment, due to the change limiting only the service cost component of net benefit cost to be capitalizable into inventory. In January 2018, the Company early adopted changes issued by the FASB related to changes to its accounting guidance for derivatives and hedging, which changes both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Some changes resulting from this new guidance include the elimination of the concept of recognizing periodic hedge ineffectiveness for cash flow hedges, changes to the recognition and presentation of changes in the fair value of the hedging instrument, enhancement of the ability to use the critical-terms-match method for the cash flow hedge of groups of forecasted transactions when the timing of the hedged transactions does not perfectly match the hedging instrument’s maturity date, and the addition of new disclosure requirements and amendments to existing ones. The Company applied this new guidance to hedging relationships existing on January 1, 2018, the date of adoption. The adoption of these changes did not have a material impact on the Company’s financial statements, and disclosures in Note 10 reflect the requirements of this adoption. In February 2018, the FASB issued limited changes to accounting standards to address the income tax accounting for certain provisions of the Tax Cuts and Jobs Act (the “Tax Act”). Accounting standards require the effect of a change in tax laws or rates on deferred tax assets and liabilities to be included in income from continuing operations in the reporting period that the change was enacted, including tax effects that were initially recognized directly in other comprehensive income at the previous rate. This results in stranded amounts in AOCI related to the income tax rate differential, as the net-of-tax AOCI balance is not adjusted for the tax rate change. This new accounting guidance provides the option to make a one-time reclassification from AOCI to retained earnings for stranded tax effects resulting from the newly enacted U.S. federal tax rate under the Tax Act, calculated on the basis of the difference between the historical and newly enacted U.S. federal tax rate on deferred tax assets and liabilities related to items within AOCI. ATI adopted this new accounting guidance in 2018, electing not to make the one-time reclassification. In August 2018, the FASB issued new accounting guidance for implementation costs incurred in a cloud computing arrangement that is a service contract. This guidance specifies which implementation costs can be capitalized in a hosting arrangement that is a service contract. The guidance aligns the accounting for implementation costs for hosting arrangements, regardless of whether they convey a license to the hosted software. This guidance is required to be adopted either retrospectively or prospectively by the Company beginning in fiscal year 2020 with early adoption permitted, including adoption in any interim period. The Company early adopted this guidance in 2018 on a retrospective basis, which did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued new disclosure guidance for defined benefit plans, which modified certain required disclosures. This guidance is required to be adopted retrospectively by the Company beginning in fiscal year 2021, with early adoption permitted. The Company early adopted this guidance in 2018, which did not have an impact on the Company’s consolidated financial statements other than disclosures. Pending Accounting Pronouncements In February 2016, the FASB issued new accounting guidance for leases. This new guidance will require that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than twelve months, with the result being the recognition of a right of use asset and a lease liability. The new lease accounting requirements are effective for ATI’s 2019 fiscal year, and management has adopted the standard effective January 1, 2019, electing the alternative transition method, which does not require the restatement of prior years. Management has elected the package of practical expedients, which allows entities to not reassess (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. Management has also elected the practical expedient to not separate lease components from non-lease components, and will not be electing the hindsight practical expedient to determine the lease term. Management has made an accounting policy election to apply the short-term lease exception, which does not require the capitalization of leases with terms of 12 months or less. The Company has completed the process of evaluating its existing lease portfolio, including accumulating all of the necessary information required to properly account for the leases under the new standard. In addition, ATI has implemented a company-wide lease management system to assist in the accounting and has implemented additional changes to its processes and internal controls to ensure the standard’s reporting and disclosure requirements are met. The Company will recognize approximately $52 million of right of use assets and approximately $56 million of lease liabilities on its consolidated balance sheet on January 1, 2019 for operating leases as a result of this adoption. The adoption will not have a material impact on the Company’s results of operations or cash flows, but will result in increased financial statement footnote disclosures in 2019 regarding leases. In August 2018, the FASB issued new disclosure guidance on fair value measurement. This new guidance modifies the disclosure requirements on fair value measurements, including removal and modifications of various current disclosures as well as some additional disclosure requirements for Level 3 fair value measurements. Some of these disclosure changes must be applied prospectively while others retrospectively depending on requirement. This guidance is required to be adopted by the Company beginning in fiscal year 2020 with early adoption permitted. The Company does not plan to early adopt this guidance. The adoption of these changes is not expected to have an impact on the Company’s consolidated financial statements other than disclosures. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Adoption Method and Impact On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers. The Company applied ASC 606 to all contracts not completed at January 1, 2018 and adopted the accounting standard using the modified retrospective method, with the cumulative effect of initially applying ASC 606 recognized at the beginning of the 2018 fiscal year. Comparative information has not been adjusted and continues to be reported under the previous accounting guidance. The Company recognized a $15.5 million increase to retained earnings at the beginning of the 2018 fiscal year for the cumulative effect of adoption of this standard, representing the favorable impact to prior results had the over-time revenue recognition requirements under ASC 606 been applied to several customer agreements. Contract assets of $49.7 million were recorded, along with a $34.2 million reduction to work-in-process inventory as a result of the ASC 606 adoption using the modified retrospective method. A portion of the cumulative effect impact of over-time revenue recognition related to inventory that is valued utilizing the last-in, first-out (LIFO) costing methodology. As such, an $11.8 million adjustment to the LIFO inventory valuation balance was required, with an equal and offsetting adjustment to net realizable value (NRV) inventory reserves, resulting in no net cumulative effect retained earnings impact for LIFO using the modified retrospective adoption method. See Note 3 for further information on inventory. In addition, as a result of this over-time recognition of these customer agreements, fiscal year 2018 sales on the consolidated statement of operations were lower by $4.3 million and cost of sales were lower by $5.4 million as compared to what those amounts would have been under the previous revenue recognition guidance. On the consolidated balance sheet, inventories, net, were $5.4 million higher at December 31, 2018 as compared to what this amount would have been under the previous guidance. Also, $45.3 million of contract assets were recognized on the consolidated balance sheet at December 31, 2018 ( $45.2 million in short-term contract assets and $0.1 million in other long-term assets) related to this over-time revenue recognition. Also, as of January 1, 2018, amounts related largely to cash in advance from customers and progress billings were reclassified on the consolidated balance sheet to contract assets and liabilities in accordance with the new accounting guidance. Such reclassification resulted in a $3.9 million increase in accounts receivable, $28.8 million increase in inventories, net, $44.8 million decrease in accrued liabilities, and $10.7 million decrease in other-long term liabilities on January 1, 2018, with an offsetting increase in contract assets and liabilities ( $3.7 million in short-term contracts assets, $69.7 million in short-term contract liabilities and $22.2 million in other long-term liabilities). There was no impact to cash flow from operating activities on the consolidated statement of cash flows as a result of this accounting standard adoption. As of December 31, 2018 , accounts receivable were higher by $3.9 million , inventories were higher by $9.5 million , accrued liabilities were lower by $52.0 million , and other long-term liabilities were lower by $7.3 million due to these reclassifications to contract assets and liabilities ( $6.0 million in short-term contract assets, $71.4 million short-term contract liabilities and $7.3 million in long-term contract liabilities). Disaggregation of Revenue The Company operates in two business segments; High Performance Materials & Components (HPMC) and Flat Rolled Products (FRP). Revenue is disaggregated within these two business segments by diversified global markets, primary geographical markets, and diversified products. Comparative information of the Company’s overall revenues (in millions) by global and geographical markets for the fiscal years ended December 31, 2018 , 2017 and 2016 were as follows: (in millions) 2018 2017 2016 HPMC FRP Total HPMC FRP Total HPMC FRP Total Diversified Global Markets: Aerospace & Defense $ 1,771.3 $ 194.2 $ 1,965.5 $ 1,568.9 $ 149.2 $ 1,718.1 $ 1,439.2 $ 151.2 $ 1,590.4 Oil & Gas 74.9 471.3 546.2 63.9 354.3 418.2 46.5 234.3 280.8 Automotive 9.5 313.9 323.4 8.8 264.9 273.7 7.6 225.2 232.8 Food Equipment & Appliances 0.4 244.5 244.9 1.1 224.9 226.0 1.8 170.4 172.2 Electrical Energy 131.4 103.1 234.5 113.1 79.1 192.2 129.1 103.5 232.6 Construction/Mining 72.8 153.2 226.0 51.1 141.8 192.9 36.7 123.9 160.6 Medical 168.5 14.6 183.1 170.4 12.6 183.0 185.3 10.5 195.8 Electronics/Computers/Communications 7.9 149.0 156.9 4.4 147.2 151.6 3.4 106.3 109.7 Other 97.5 68.6 166.1 85.7 83.7 169.4 80.8 78.9 159.7 Total $ 2,334.2 $ 1,712.4 $ 4,046.6 $ 2,067.4 $ 1,457.7 $ 3,525.1 $ 1,930.4 $ 1,204.2 $ 3,134.6 (in millions) 2018 2017 2016 HPMC FRP Total HPMC FRP Total HPMC FRP Total Primary Geographical Market: United States $ 1,214.1 $ 1,134.0 $ 2,348.1 $ 1,096.5 $ 974.1 $ 2,070.6 $ 1,057.3 $ 800.2 $ 1,857.5 China 83.1 236.9 320.0 51.1 214.5 265.6 57.8 156.3 214.1 Germany 192.7 54.5 247.2 170.5 46.6 217.1 137.4 40.3 177.7 United Kingdom 232.4 9.7 242.1 220.9 10.7 231.6 171.1 12.7 183.8 Japan 136.5 78.4 214.9 95.2 36.5 131.7 113.4 38.5 151.9 France 172.7 10.9 183.6 157.8 7.8 165.6 134.9 7.7 142.6 Rest of World 302.7 188.0 490.7 275.4 167.5 442.9 258.5 148.5 407.0 Total $ 2,334.2 $ 1,712.4 $ 4,046.6 $ 2,067.4 $ 1,457.7 $ 3,525.1 $ 1,930.4 $ 1,204.2 $ 3,134.6 Comparative information of the Company’s major high-value and standard products based on their percentages of sales is included in the following table. FRP conversion services are excluded from this presentation. 2018 2017 2016 HPMC FRP Total HPMC FRP Total HPMC FRP Total Diversified Products: High-Value Products Nickel-based alloys and specialty alloys 31 % 28 % 30 % 31 % 24 % 28 % 29 % 25 % 28 % Precision forgings, castings and components 34 % — % 20 % 32 % — % 19 % 29 % — % 18 % Titanium and titanium-based alloys 25 % 5 % 17 % 26 % 5 % 17 % 29 % 4 % 20 % Precision and engineered strip — % 33 % 14 % — % 34 % 14 % — % 36 % 13 % Zirconium and related alloys 10 % — % 5 % 11 % — % 6 % 13 % — % 8 % Total High-Value Products 100 % 66 % 86 % 100 % 63 % 84 % 100 % 65 % 87 % Standard Products Stainless steel sheet — % 20 % 8 % — % 21 % 9 % — % 19 % 7 % Specialty stainless sheet — % 10 % 4 % — % 12 % 5 % — % 11 % 4 % Stainless steel plate and other — % 4 % 2 % — % 4 % 2 % — % 5 % 2 % Total Standard Products — % 34 % 14 % — % 37 % 16 % — % 35 % 13 % Total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % The Company maintains a backlog of confirmed orders totaling $2.2 billion , $2.1 billion and $1.7 billion at December 31, 2018 , 2017 and 2016 , respectively. Due to the structure of the Company’s LTAs, 85% of this backlog at December 31, 2018 represented booked orders with performance obligations that will be satisfied within the next twelve months. The backlog does not reflect any elements of variable consideration. Accounts Receivable As of December 31, 2018 and 2017 , accounts receivable with customers were $533.8 million and $550.9 million , respectively. The following represents the rollforward of accounts receivable - reserve for doubtful accounts for the fiscal years ended December 31, 2018 , 2017 and 2016: (in millions) Accounts Receivable - Reserve for Doubtful Accounts Balance as of December 31, 2015 $ 4.5 Expense to increase the reserve 4.8 Write-off of uncollectible accounts (2.0 ) Balance as of December 31, 2016 7.3 Expense to increase the reserve 0.1 Write-off of uncollectible accounts (1.5 ) Balance as of December 31, 2017 5.9 Expense to increase the reserve 1.9 Write-off of uncollectible accounts (1.8 ) Balance as of December 31, 2018 $ 6.0 Contract balances The following represents the rollforward of contract assets and liabilities for the fiscal year ended December 31, 2018 : (in millions) Contract Assets Short-term Balance as of January 1, 2018 $ 36.5 Recognized in current year 92.9 Reclassified to accounts receivable (95.8 ) Impairment — Reclassification to/from long-term 16.8 Other 0.8 Balance as of December 31, 2018 $ 51.2 Long-term Balance as of January 1, 2018 $ 16.9 Recognized in current year — Reclassified to accounts receivable — Impairment — Reclassification to/from short-term (16.8 ) Balance as of December 31, 2018 $ 0.1 (in millions) Contract Liabilities Short-term Balance as of January 1, 2018 $ 69.7 Recognized in current year 76.7 Amounts in beginning balance reclassified to revenue (49.6 ) Current year amounts reclassified to revenue (42.7 ) Other 2.7 Reclassification to/from long-term 14.6 Balance as of December 31, 2018 $ 71.4 Long-term Balance as of January 1, 2018 $ 22.2 Recognized in current year 0.7 Amounts in beginning balance reclassified to revenue (1.0 ) Current year amounts reclassified to revenue — Other — Reclassification to/from short-term (14.6 ) Balance as of December 31, 2018 $ 7.3 Contract costs for obtaining and fulfilling a contract were $5.2 million as of December 31, 2018 , which are reported in other long-term assets on the consolidated balance sheet. Amortization expense for the fiscal year ended December 31, 2018 of these contract costs was $1.2 million . |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories at December 31, 2018 and 2017 were as follows (in millions): 2018 2017 Raw materials and supplies $ 191.5 $ 162.8 Work-in-process 914.1 955.5 Finished goods 191.1 165.0 Total inventories at current cost 1,296.7 1,283.3 Adjustment from current cost to LIFO cost basis 2.9 43.1 Inventory valuation reserves (88.5 ) (121.5 ) Progress payments — (28.8 ) Total inventories, net $ 1,211.1 $ 1,176.1 Inventories, before progress payments, determined on the LIFO method were $794.3 million at December 31, 2018 , and $821.2 million at December 31, 2017 . The remainder of the inventory was determined using the FIFO and average cost methods, and these inventory values do not differ materially from current cost. Due to deflationary impacts primarily related to raw materials, the carrying value of the Company’s inventory as valued on LIFO exceeds current replacement cost, and based on a lower of cost or market value analysis, the Company maintains net realizable value (NRV) inventory valuation reserves to adjust carrying value of LIFO inventory to current replacement cost. These NRV reserves were $8.0 million and $47.5 million at December 31, 2018 and 2017 , respectively. In applying the lower of cost or market principle, market means current replacement cost, subject to a ceiling (market value shall not exceed net realizable value) and a floor (market shall not exceed net realizable value reduced by an allowance for a normal profit margin). Impacts to cost of sales for changes in the LIFO costing methodology and associated NRV inventory reserves were as follows (in millions): Fiscal year ended December 31, 2018 2017 2016 LIFO benefit (charge) $ (28.6 ) $ (54.2 ) $ (39.1 ) NRV benefit (charge) 27.9 54.0 39.9 Net cost of sales impact $ (0.7 ) $ (0.2 ) $ 0.8 During 2018 , inventory usage resulted in liquidations of LIFO inventory quantities, decreasing cost of sales by $0.8 million . During 2017 and 2016 , inventory usage resulted in liquidations of LIFO inventory quantities, increasing cost of sales by $4.6 million and $61.5 million , respectively. These inventories were carried at differing costs prevailing in prior years as compared with the cost of current manufacturing cost and purchases. The results for fiscal year 2016 included $17.7 million in inventory valuation charges related to the market-based valuation of titanium products. Additionally, in the third quarter of 2016, in conjunction with the indefinite idling of the Company’s Rowley, UT titanium sponge facility (see Note 17 for further explanation), an additional $11.3 million charge was taken to revalue titanium sponge inventory based on revised assessments of industrial grade titanium market conditions and expected utilization of this inventory. As a result of the adoption of ASC 606 on revenue recognition on January 1, 2018, progress payments were reclassified on the consolidated balance sheet from inventories to contract liabilities. In addition, a cumulative effect adjustment for the ASC 606 adoption relating to contracts requiring over-time revenue recognition resulted in a $34.2 million reduction to work-in-process inventory at the January 1 adoption date. A portion of that inventory is valued utilizing the LIFO costing methodology. As such, an $11.8 million reduction to the LIFO valuation balance was required, with an offsetting $11.8 million adjustment to the NRV reserve, resulting in no retained earnings impact. See Note 2 for further explanation of the ASC 606 adoption. |
Property Plant And Equipment
Property Plant And Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property Plant and Equipment | Property, Plant and Equipment Property, plant and equipment at December 31, 2018 and 2017 was as follows: (In millions) 2018 2017 Land $ 31.5 $ 31.7 Buildings 851.7 844.5 Equipment and leasehold improvements 3,622.7 3,597.6 4,505.9 4,473.8 Accumulated depreciation and amortization (2,030.9 ) (1,978.1 ) Total property, plant and equipment, net $ 2,475.0 $ 2,495.7 Construction in progress at December 31, 2018 and 2017 was $83.7 million and $90.7 million , respectively. Depreciation and amortization for the years ended December 31, 2018 , 2017 and 2016 was as follows: (In millions) 2018 2017 2016 Depreciation of property, plant and equipment $ 131.9 $ 135.2 $ 141.9 Software and other amortization 24.5 25.6 28.4 Total depreciation and amortization $ 156.4 $ 160.8 $ 170.3 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets At December 31, 2018 , the Company had $534.7 million of goodwill on its consolidated balance sheet, all of which relates to the High Performance Materials & Components (HPMC) segment. Goodwill increased $3.3 million in 2018 as a result of $6.0 million from the acquisition of Addaero Manufacturing (Addaero), offset by $2.7 million from the impact of foreign currency translation on goodwill denominated in functional currencies other than the U.S. dollar. On July 12, 2018, the Company acquired the assets of Addaero for $10.0 million of cash consideration. Addaero is a leader in metal alloy-based additive manufacturing for the aerospace and defense industries, located in New Britain, CT. Management expects the acquisition to expand the Company’s capabilities to provide comprehensive customer solutions ranging from the design of parts for additive manufacturing to the production of ready-to-install components. The acquisition of Addaero is another building block in the strategy to enhance ATI’s full specialty materials capabilities to provide end customers with finished products. This business is reported as part of the HPMC segment from the date of the acquisition. The purchase price allocation includes a $2.0 million technology intangible asset and goodwill of $6.0 million , which is deductible for tax purposes. The final allocation of the purchase price was completed in the third quarter of 2018. The Company performs its annual goodwill impairment evaluations in the fourth quarter of each year. For the Company’s annual goodwill impairment evaluation performed in the fourth quarter of 2018, quantitative goodwill assessments were performed for the two HPMC reporting units with goodwill. Both of these reporting units had fair values that were significantly in excess of carrying value, and as a result, no impairments were determined to exist from the annual goodwill impairment evaluation for the year ended December 31, 2018. In order to validate the reasonableness of the estimated fair values of the reporting units as of the valuation date, a reconciliation of the aggregate fair values of all reporting units to market capitalization was performed using a reasonable control premium. During the third quarter of 2017, the Company performed an interim goodwill impairment analysis on ATI Cast Products, a titanium investment casting business, due to impairment indicators including lower actual results versus projections. This reporting unit had a fair value that exceeded carrying value by 12% according to the 2016 annual goodwill impairment evaluation. For the 2017 interim impairment analysis, fair value was determined by using a quantitative assessment using a discounted cash flow technique, which represents Level 3 unobservable information in the fair value hierarchy. As a result of the 2017 interim goodwill impairment evaluation, the Company determined that the fair value of the Cast Products business was significantly below the carrying value, including goodwill. This was primarily due to lower projected revenues, profitability and cash flows associated with revised expectations for the rate of operational improvement and profitability of this business based on current customer agreements. Consequently, during the third quarter of 2017, the Company recorded a $114.4 million pre-tax impairment charge to write-off all of the goodwill associated with ATI Cast Products, most of which was assigned from the Company’s 2011 Ladish acquisition that was not deductible for income tax purposes. This goodwill impairment charge was excluded from 2017 HPMC business segment results. There were no goodwill impairments for the year ended December 31, 2016. Accumulated goodwill impairment losses as of December 31, 2018 and 2017 were both $241.0 million . Other intangible assets, which are included in Other assets on the accompanying consolidated balance sheets as of December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 (in millions) Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Technology $ 93.4 $ (31.9 ) $ 91.4 $ (27.4 ) Customer relationships 35.7 (10.6 ) 35.7 (9.1 ) Trademarks 64.6 (21.5 ) 64.6 (17.2 ) Total amortizable intangible assets $ 193.7 $ (64.0 ) $ 191.7 $ (53.7 ) Amortization expense related to intangible assets was approximately $10 million for the years ended December 31, 2018 , 2017 and 2016 . For each of the years ending December 31, 2019 through 2023, annual amortization expense is expected to be approximately $10 million . |
Joint Ventures
Joint Ventures | 12 Months Ended |
Dec. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Ventures | Joint Ventures The financial results of majority-owned joint ventures are consolidated into the Company’s operating results and financial position, with the minority ownership interest recognized in the consolidated statement of operations as net income attributable to noncontrolling interests, and as equity attributable to the noncontrolling interests within total stockholders’ equity. Investments in which the Company exercises significant influence, but which it does not control (generally a 20% to 50% ownership interest) are accounted for under the equity method of accounting. Stockholders’ equity includes undistributed earnings of investees accounted for under the equity method of accounting of approximately $24 million at December 31, 2018 . Majority-Owned Joint Ventures STAL: The Company has a 60% interest in the Chinese joint venture known as Shanghai STAL Precision Stainless Steel Company Limited (STAL). The remaining 40% interest in STAL is owned by China Baowu Steel Group Corporation Limited, a state authorized investment company whose equity securities are publicly traded in the People’s Republic of China. STAL is part of ATI’s Flat Rolled Products segment, and manufactures Precision Rolled Strip stainless products mainly for the electronics, communication equipment, computers and automotive markets located in Asia. Cash and cash equivalents held by STAL as of December 31, 2018 were $35.0 million . Next Gen Alloys LLC: During 2017, the Company formed Next Gen Alloys LLC, a joint venture with GE Aviation for the development of a new meltless titanium alloy powder manufacturing technology. ATI owns a 51% interest in this joint venture. The titanium alloy powders are being developed for use in additive manufacturing applications, including 3D printing. Next Gen Alloys LLC funds its’ development activities through the sale of shares to the two joint venture partners, and in 2018 the Company received $2.7 million from sales of noncontrolling interests to its joint venture partner, which is reported as a financing activity on the consolidated statements of cash flows. Cash and cash equivalents held by this joint venture as of December 31, 2018 were $10.1 million . Equity Method Joint Ventures A&T Stainless: On March 1, 2018, the Company announced the formation of the Allegheny & Tsingshan Stainless (A&T Stainless) joint venture with an affiliate company of Tsingshan Group (Tsingshan) to produce 60-inch wide stainless sheet products for sale in North America. Tsingshan purchased a 50% joint venture interest in A&T Stainless for $17.5 million , of which $12.0 million was received in 2018 and reported as a financing activity on the consolidated statements of cash flows. The A&T Stainless operations include the Company’s previously-idled direct roll and pickle (DRAP) facility in Midland, PA. ATI provides hot-rolling conversion services to A&T Stainless using the FRP segment’s Hot-Rolling and Processing Facility. As a result of this sale of a 50% noncontrolling interest and the subsequent deconsolidation of the A&T Stainless entity, the Company recognized a $15.9 million gain during the first quarter of 2018 under deconsolidation and derecognition accounting guidance covering the loss of control of a subsidiary determined to be a business. The gain, including ATI’s retained 50% share, was based on the fair value of the joint venture, as determined by the cash purchase price for the noncontrolling interest, and is reported in other income, net on the consolidated statement of operations, and is excluded from FRP segment results. Following this deconsolidation, ATI accounts for the A&T Stainless joint venture under the equity method of accounting. ATI’s share of the A&T Stainless joint venture results was a $3.9 million loss for the fiscal year ended December 31, 2018 , which is included in the FRP segment’s operating results, and within other income, net, on the consolidated statements of operations. In late March 2018, ATI filed for an exclusion from the recently enacted Section 232 tariffs on behalf of the A&T Stainless JV, which imports semi-finished stainless slab products from Indonesia. In the absence of an exclusion, these slabs are subject to the 25% tariff levied on all stainless steel products imported into the United States. The Company continues to work within the U.S. Commerce Department’s Section 232 tariff exclusion request process to secure an exclusion on behalf of the A&T Stainless joint venture. 2018 results of A&T Stainless were negatively impacted by these tariffs. Sales to A&T Stainless, which are included in ATI’s consolidated statement of operations for the 2018 fiscal year, were $4.1 million . At December 31, 2018, accounts receivable from A&T Stainless were $0.6 million and a receivable for short-term advances for ATI’s funding of the A&T Stainless joint venture during its production ramp-up, which is reported in prepaid expenses and other assets on the consolidated balance sheet and within operating activities on the consolidated cash flow statement, was $10.5 million . Uniti: ATI has a 50% interest in the industrial titanium joint venture known as Uniti LLC (Uniti), with the remaining 50% interest held by VSMPO, a Russian producer of titanium, aluminum, and specialty steel products. Uniti is accounted for under the equity method of accounting. ATI’s share of Uniti’s income was $2.9 million in 2018 , $0.6 million in 2017 , and $0.5 million in 2016 , which is included in FRP segment’s operating results, and within other income, net in fiscal year ended December 31, 2018 on the consolidated statement of operations. This equity income is classified in cost of sales for the fiscal years ended December 31, 2017 and 2016 on the consolidated statements of operations. Sales to Uniti, which are included in ATI’s consolidated statements of operations, were $49.4 million in 2018 , $38.6 million in 2017 , and $20.3 million in 2016 . Accounts receivable from Uniti were $1.8 million and $1.2 million at December 31, 2018 and 2017 , respectively. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation | Asset Retirement Obligations The Company maintains reserves where a legal obligation exists to perform an asset retirement activity and the fair value of the liability can be reasonably estimated. These asset retirement obligations (AROs) include liabilities where the timing and (or) method of settlement may be conditional on a future event, that may or may not be within the control of the entity. At December 31, 2018 , the Company had recognized AROs of $23.1 million related to landfill closures, decommissioning costs, facility leases and conditional AROs associated with manufacturing activities using what may be characterized as potentially hazardous materials. Estimates of AROs are evaluated annually in the fourth quarter, or more frequently if material new information becomes known. Accounting for asset retirement obligations requires significant estimation and in certain cases, the Company has determined that an ARO exists, but the amount of the obligation is not reasonably estimable. The Company may determine that additional AROs are required to be recognized as new information becomes available. Changes in asset retirement obligations for the years ended December 31, 2018 and 2017 were as follows: (In millions) 2018 2017 Balance at beginning of year $ 23.5 $ 23.3 Accretion expense 0.8 0.8 Payments (1.2 ) (0.7 ) Revision of estimates — 0.1 Balance at end of year $ 23.1 $ 23.5 |
Supplemental Financial Statemen
Supplemental Financial Statement Information | 12 Months Ended |
Dec. 31, 2018 | |
Additional Financial Information Disclosure [Abstract] | |
Supplemental Financial Statement Information | Supplemental Financial Statement Information Cash and cash equivalents at December 31, 2018 and 2017 were as follows: (In millions) 2018 2017 Cash $ 264.4 $ 140.2 Other short-term investments 117.6 1.4 Total cash and cash equivalents $ 382.0 $ 141.6 Accrued liabilities included salaries, wages and other payroll-related liabilities of $70.5 million and $61.6 million , and accrued interest of $36.6 million and $36.2 million at December 31, 2018 and 2017 , respectively. Other income (expense) for the years ended December 31, 2018 , 2017 , and 2016 was as follows: (In millions) 2018 2017 2016 Rent and royalty income $ 3.1 $ 3.5 $ 1.4 Net gains on property and investments 1.3 0.5 1.0 Net equity loss on joint ventures (See Note 6) (1.0 ) — — Gain on joint venture deconsolidation (See Note 6) 15.9 — — Other 1.2 — — Total other income, net $ 20.5 $ 4.0 $ 2.4 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at December 31, 2018 and 2017 was as follows: (In millions) 2018 2017 Allegheny Technologies $500 million 5.875% Senior Notes due 2023 (a) $ 500.0 $ 500.0 Allegheny Technologies $500 million 5.95% Senior Notes due 2021 500.0 500.0 Allegheny Technologies $287.5 million 4.75% Convertible Senior Notes due 2022 287.5 287.5 Allegheny Ludlum 6.95% Debentures due 2025 150.0 150.0 Term Loan due 2022 100.0 100.0 U.S. revolving credit facility — — Foreign credit agreements — 6.3 Other 15.0 10.0 Debt issuance costs (10.4 ) (13.1 ) Total short-term and long-term debt 1,542.1 1,540.7 Short-term debt and current portion of long-term debt 6.6 10.1 Total long-term debt $ 1,535.5 $ 1,530.6 (a) Bearing interest at 7.875% effective February 15, 2016. In December 2017, the Company redeemed all $350 million aggregate principal amount of the 9.375% Senior Notes due 2019, resulting in a $37.0 million pre-tax debt extinguishment charge, which included a $35.8 million cash payment as a make-whole provision on the early extinguishment of debt, and a $1.2 million charge for previously-unrecognized debt issue costs. Interest expense was $102.1 million in 2018 , $134.9 million in 2017 , and $125.4 million in 2016 . Interest expense was reduced by $4.1 million , $2.6 million , and $4.7 million , in 2018 , 2017 , and 2016 , respectively, from interest capitalization on capital projects. Interest and commitment fees paid were $102.6 million in 2018 , $133.8 million in 2017 , and $127.2 million in 2016 . Net interest expense includes interest income of $1.1 million in 2018 , $1.1 million in 2017 , and $1.4 million in 2016 . Scheduled principal payments during the next five years are $6.6 million in 2019, $4.7 million in 2020, $502.0 million in 2021, $388.8 million in 2022, and $500.4 million in 2023. 2023 Notes The 5.875% stated interest rate payable on the Company’s Senior Notes due 2023 (2023 Notes) is subject to adjustment in the event of changes in the credit ratings on the 2023 Notes by either Moody’s or Standard & Poor’s (S&P). Each notch of credit rating downgrade from the credit ratings in effect when the 2023 Notes were issued in July 2013 increases interest expense by 0.25% on the 2023 Notes, up to a maximum 4 notches by each of the two rating agencies, or a total 2.0% potential interest rate change up to 7.875% . In February 2016, the 2023 Notes reset one notch to the maximum 7.875% annual interest rate as a result of a credit rating downgrade by S&P. Any further credit rating downgrades have no effect on the interest rate of the 2023 Notes, and increases in the Company’s credit ratings from these ratings agencies would reduce interest expense incrementally on the 2023 Notes to the original 5.875% interest rate in a similar manner. Credit Agreements The Company has a $500 million Asset Based Lending (ABL) Credit Facility, which is collateralized by the accounts receivable and inventory of the Company’s domestic operations. The ABL facility includes a $400 million revolving credit facility, a letter of credit sub-facility of up to $200 million , and a $100.0 million term loan (Term Loan). In June 2017, the ABL facility was amended to extend the maturity date of the Term Loan from November 2017 to February 2022 and to reduce the interest rate on the Term Loan to 3.0% plus a LIBOR spread from 3.5% plus a LIBOR spread. In July 2018, the ABL facility was further amended to reduce the Term Loan base interest rate to 2.5% plus a LIBOR spread. In conjunction with this 2018 amendment, the Company entered into a $50 million floating-for-fixed interest rate swap which converts half of the Term Loan to a 5.44% fixed interest rate. The swap matures in January 2021. The Term Loan can be prepaid in minimum increments of $50 million if certain minimum liquidity conditions are satisfied. The underwriting costs associated with amending the Term Loan in 2017 were $0.8 million , and are being amortized, along with the unamortized portion of the $1.0 million of previously recognized deferred fees from the issuance of the Term Loan, to interest expense over the extended term of the loan ending February 2022. Also in June 2017, the ABL facility was amended to, among other things, extend the duration of the revolving portion of the facility from September 2020 to February 2022. As amended, the applicable interest rate for revolving credit borrowings under the ABL facility includes interest rate spreads based on available borrowing capacity that range between 1.75% and 2.25% for LIBOR-based borrowings ( 2.0% and 2.5% prior to amendment) and between 1.0% and 1.5% for base rate borrowings. The ABL facility contains a financial covenant whereby the Company must maintain a fixed charge coverage ratio of not less than 1.00 : 1.00 after an event of default has occurred and is continuing or if the undrawn availability under the revolving credit portion of the facility is less than the greater of (i) 10% , as amended, of the then applicable maximum borrowing amount under the revolving credit portion of the ABL and any outstanding Term Loan balance, or (ii) $40 million . The Company was in compliance with the fixed charge coverage ratio at December 31, 2018. Additionally, the Company must demonstrate liquidity, as calculated in accordance with the terms of the ABL facility, of at least $700 million on the date that is 91 days prior to January 15, 2021, the maturity date of the 5.95% Senior Notes due 2021, and that such liquidity is available at all times thereafter until the 5.95% Senior Notes due 2021 are paid in full or refinanced. Costs associated with entering into the 2017 ABL amendment were $1.0 million , and are being amortized, along with the unamortized portion of $2.4 million of previously recognized deferred costs, to interest expense over the extended term of the facility ending February 2022. There were no outstanding revolving credit borrowings under the ABL facility as of December 31, 2018, and $35.3 million was utilized to support the issuance of letters of credit. Average revolving credit borrowings under the ABL facility for the fiscal year ended December 31, 2018 were $43 million , bearing an average annual interest rate of 3.7% . Average borrowings under the ABL for the fiscal year ended December 31, 2017 were $37 million , bearing an average annual interest rate of 3.3% . Convertible Notes In the second quarter of 2016, the Company issued and sold $287.5 million aggregate principal amount of 4.75% Convertible Senior Notes due 2022 (2022 Convertible Notes). Interest on the 2022 Convertible Notes is payable in cash semi-annually in arrears on each January 1 and July 1, commencing January 1, 2017. The underwriting fees and other third-party expense for the issuance of the 2022 Convertible Notes were $9.4 million and are being amortized to interest expense over the 6 -year term of the 2022 Convertible Notes. The Company does not have the right to redeem the 2022 Convertible Notes prior to their stated maturity date. Holders of the 2022 Convertible Notes have the option to convert their notes into shares of the Company’s common stock, at any time prior to the close of business on the business day immediately preceding the stated maturity date (July 1, 2022). The initial conversion rate for the 2022 Convertible Notes is 69.2042 shares of ATI common stock per $1,000 (in whole dollars) principal amount of Notes ( 19.9 million shares), equivalent to conversion price of $14.45 per share, subject to adjustment in certain events. Other than receiving cash in lieu of fractional shares, holders do not have the option to receive cash instead of shares of common stock upon conversion. Accrued and unpaid interest that exists upon conversion of a note will be deemed paid by the delivery of shares of ATI common stock and no cash payment or additional shares will be given to the holders. If the Company undergoes a fundamental change as defined in the agreement, holders of the 2022 Convertible Notes may require the Company to repurchase the notes in whole or in part for cash at a price equal to 100% of the principal amount of the notes to be purchased plus any accrued and unpaid interest to, but excluding, the repurchase date. Foreign and Other Credit Facilities STAL, the Company’s Chinese joint venture company in which ATI has a 60% interest, has a separate $20 million revolving credit facility. 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. The Company has no off-balance sheet financing relationships as defined in Item 303(a)(4) of SEC Regulation S-K, with variable interest entities, structured finance entities, or any other unconsolidated entities. At December 31, 2018 , the Company had not guaranteed any third-party indebtedness. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging | 12 Months Ended |
Dec. 31, 2018 | |
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 January 2018, the Company early adopted changes issued by the FASB related to accounting guidance for derivatives and hedging, which includes, among other things, the elimination of the concept of recognizing periodic hedge ineffectiveness for cash flow hedges. The Company sometimes uses futures and swap contracts to manage exposure to changes in prices for forecasted purchases of raw materials, such as nickel, and natural gas. Under these contracts, which are generally accounted for as cash flow hedges, the price of the item being hedged is fixed at the time that the contract is entered into and the Company is obligated to make or receive a payment equal to the net change between this fixed price and the market price at the date the contract matures. The majority of ATI’s products are sold utilizing raw material surcharges and index mechanisms. However, as of December 31, 2018 , 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 12 million pounds of nickel with hedge dates through 2023 . The aggregate notional amount hedged is approximately 12% of a single year’s estimated nickel raw material purchase requirements. At December 31, 2018 , the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges. During the fiscal year ended December 31, 2016, due to changes in expected operating levels, the Company concluded that portions of these natural gas cash flow hedges for 2016 and the first quarter 2017 were ineffective based on forecast changes in underlying natural gas usage. The Company recognized a $1.3 million pre-tax loss for the ineffective portion of these cash flow hedges for the year ended December 31, 2016, which is reported in selling and administrative expenses on the consolidated statement of operations. At December 31, 2018 , the company hedged approximately 60% of the Company’s annual forecasted domestic requirements for natural gas for 2019 and approximately 40% for 2020. 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. In addition, the Company may also designate cash balances held in foreign currencies as hedges of forecasted foreign currency transactions. At December 31, 2018, the Company held euro forward sales contracts designated as cash flow hedges with a notional value of approximately 9 million euro with maturity dates through May 2019. In 2015, the Company entered into 244.7 million euro notional value of foreign currency forward contracts designated as fair value hedges with 2016 and 2017 maturity dates. The Company recorded $2.7 million of charges during the fiscal year ended December 31, 2017 and $1.0 million of benefits during the fiscal year ended December 31, 2016 in costs of sales on the consolidated statement of operations for maturities and mark-to-market changes on these fair value hedges. There were no outstanding fair value hedges as of December 31, 2018 and 2017. The Company may enter into derivative interest rate contracts to maintain a reasonable balance between fixed- and floating-rate debt. In July 2018, the Company entered into a $50 million floating-for-fixed interest rate swap which converts half of the Term Loan to a 5.44% fixed interest rate. The Company designated the interest rate swap as a cash flow hedge of the Company’s exposure to the variability of the payment of interest on a portion of its Term Loan borrowings. The swap matures in January 2021. There are no credit risk-related contingent features in the Company’s derivative contracts, and the contracts contained no provisions under which the Company has posted, or would be required to post, collateral. The counterparties to the Company’s derivative contracts were substantial and creditworthy commercial banks that are recognized market makers. The Company controls its credit exposure by diversifying across multiple counterparties and by monitoring credit ratings and credit default swap spreads of its counterparties. The Company also enters into master netting agreements with counterparties when possible. The fair values of the Company’s derivative financial instruments are presented below, representing the gross amounts recognized which are not offset by counterpart or by type of item hedged. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy, which includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs derived principally from or corroborated by observable market data. (In millions) December 31, December 31, Asset derivatives Balance sheet location Derivatives designated as hedging instruments: Natural gas contracts Prepaid expenses and other current assets $ 0.8 $ 0.1 Nickel and other raw material contracts Prepaid expenses and other current assets 1.2 10.5 Natural gas contracts Other assets 0.2 0.3 Nickel and other raw material contracts Other assets 0.8 5.5 Total derivatives designated as hedging instruments 3.0 16.4 Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets 0.4 0.1 Total derivatives not designated as hedging instruments: 0.4 0.1 Total asset derivatives $ 3.4 $ 16.5 Liability derivatives Balance sheet location Derivatives designated as hedging instruments: Interest rate swap Accrued liabilities $ 0.2 $ — Foreign exchange contracts Accrued liabilities 0.6 — Natural gas contracts Accrued liabilities 0.1 0.9 Nickel and other raw material contracts Accrued liabilities 6.8 2.1 Interest rate swap Other long-term liabilities 0.3 — Natural gas contracts Other long-term liabilities 0.3 0.3 Nickel and other raw material contracts Other long-term liabilities 2.1 2.2 Total derivatives designated as hedging instruments 10.4 5.5 Total liability derivatives $ 10.4 $ 5.5 For derivative financial instruments that are designated as cash flow hedges, the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged item affects earnings. For derivative financial instruments that are designated as fair value hedges, changes in the fair value of these derivatives are recognized in current period results and are reported as changes within accrued liabilities and other on the consolidated statements of cash flows. The Company did not use net investment hedges for the periods presented. The effects of derivative instruments in the tables below are presented net of related income taxes, excluding any impacts of changes to income tax valuation allowances affecting results of operations or other comprehensive income, when applicable (see Note 13 for further explanation). Assuming market prices remain constant with those at December 31, 2018 , a pre-tax loss of $5.7 million is expected to be recognized over the next 12 months. Activity with regard to derivatives designated as cash flow hedges for the years ended December 31, 2018 and 2017 were as follows (in millions): Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in OCI on Derivatives Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) 2018 2017 2018 2017 Nickel and other raw material contracts $ (6.4 ) $ 14.1 $ 7.7 $ (2.1 ) Natural gas contracts 1.5 (2.8 ) 0.4 (3.3 ) Foreign exchange contracts 0.5 (0.2 ) 1.0 9.9 Interest rate swap (0.5 ) — (0.2 ) — Total $ (4.9 ) $ 11.1 $ 8.9 $ 4.5 (a) The gains (losses) reclassified from accumulated OCI into income related to the derivatives, with the exception of the interest rate swap, are presented in cost of sales in the same period or periods in which the hedged item affects earnings. The gains (losses) reclassified from accumulated OCI into income on the interest rate swap are presented in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings. The disclosures of gains or losses presented above for nickel and other raw material contracts and foreign currency contracts do not take into account the anticipated underlying transactions. Since these derivative contracts represent hedges, the net effect of any gain or loss on results of operations may be fully or partially offset. The Company has 7 million euro notional value outstanding as of December 31, 2018 of foreign currency forward contracts not designated as hedges, with maturity dates into the second quarter of 2019. These 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 as Hedging Instruments 2018 2017 Foreign exchange contracts $ 0.3 $ (0.8 ) Changes in the fair value of foreign exchange contract derivatives not designated as hedging instruments are recorded in cost of sales and are reported as changes within accrued liabilities and other on the consolidated statements of cash flows. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The estimated fair value of financial instruments at December 31, 2018 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 $ 382.0 $ 382.0 $ 382.0 $ — Derivative financial instruments: Assets 3.4 3.4 — 3.4 Liabilities 10.4 10.4 — 10.4 Debt (a) 1,552.5 1,739.4 1,624.4 115.0 The estimated fair value of financial instruments at December 31, 2017 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 $ 141.6 $ 141.6 $ 141.6 $ — Derivative financial instruments: Assets 16.5 16.5 — 16.5 Liabilities 5.5 5.5 — 5.5 Debt (a) 1,553.8 1,853.2 1,736.9 116.3 (a) The total carrying amount for debt excludes debt issuance costs related to the recognized debt liability which is presented in the consolidated balance sheet as a direct reduction from the carrying amount of the debt liability. 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 2018 or 2017 . The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash and cash equivalents: Fair values were determined using Level 1 information. Derivative financial instruments: Fair values for derivatives were measured using exchange-traded prices for the hedged items. The fair value was determined using Level 2 information, including consideration of counterparty risk and the Company’s credit risk. Short-term and long-term debt: The fair values of the Allegheny Technologies 5.95% Senior Notes due 2021, the Allegheny Technologies 4.75% Convertible Senior Notes due 2022, the Allegheny Technologies 5.875% Senior Notes due 2023 and the Allegheny Ludlum 6.95% Debentures due 2025 were determined using Level 1 information. The fair values of other short-term and long-term debt were determined using Level 2 information. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement Benefits | Retirement Benefits The Company has defined contribution retirement plans or defined benefit pension plans covering substantially all employees. Company contributions to defined contribution retirement plans are generally based on a percentage of eligible pay or based on hours worked. Benefits under the defined benefit pension plans are generally based on years of service and/or final average pay. The Company also sponsors several postretirement plans covering certain collectively-bargained salaried and hourly employees. The plans provide health care and life insurance benefits for eligible retirees. In most retiree health care plans, Company contributions towards premiums are capped based on the cost as of a certain date, thereby creating a defined contribution. ATI instituted several actions over the last few years as part of its retirement benefit liability management strategy. Future benefit accruals for all participants in the U.S. defined benefit pension plans other than those subject to a CBA were frozen at the end of 2014, and subsequently CBAs were negotiated to close these plans to new entrants. As a result of these actions, including 2018 activity as discussed below, the Company has now completely closed all defined benefit pension plans to new entrants, and has substantially limited the number of employees still accruing benefit service to approximately 1,600 participants, or less than 10% of the population in the U.S. qualified defined benefit pension plans. Additionally, nearly all of ATI’s remaining collectively-bargained, capped defined benefit retiree health care plans are closed to new entrants. These liability management actions have transitioned ATI’s retirement benefit and other postretirement benefit programs largely to a defined contribution structure. Costs for defined contribution retirement plans were $39.9 million in 2018 , $35.5 million in 2017 , and $34.5 million in 2016 . Company contributions to these defined contribution plans are funded with cash. Other postretirement benefit costs for a defined contribution plan were $1.0 million and $1.7 million for the fiscal years ended December 31, 2018 and 2017, respectively. The components of pension and other postretirement benefit expense for the Company’s defined benefit plans included the following: Pension Benefits Other Postretirement Benefits (In millions) 2018 2017 2016 2018 2017 2016 Service cost—benefits earned during the year $ 16.4 $ 14.1 $ 20.6 $ 2.5 $ 2.4 $ 2.6 Interest cost on benefits earned in prior years 104.8 116.7 125.4 12.7 14.6 16.0 Expected return on plan assets (157.9 ) (146.9 ) (148.7 ) — — (0.1 ) Amortization of prior service cost (credit) 0.3 1.3 1.3 (2.9 ) (2.9 ) (1.7 ) Amortization of net actuarial loss 65.9 62.6 65.4 10.6 9.0 9.6 Curtailment loss 0.4 — — — — — Termination benefits — — 1.1 — — 2.3 Total retirement benefit expense $ 29.9 $ 47.8 $ 65.1 $ 22.9 $ 23.1 $ 28.7 On June 1, 2018, a new CBA was ratified by USW-represented employees of the Company’s Specialty Alloys & Components (SAC) operations in Millersburg, OR. The new SAC CBA resulted in changes to retirement benefit programs, including a freeze to new entrants to the U.S. defined benefit pension plan and to postretirement health care benefits, and a hard freeze for most current pension plan participants covered by the SAC CBA, effective July 31, 2018. New hires covered by the CBA, and pension plan participants who are subject to the hard freeze, will receive Company contributions to a defined contribution retirement plan. The CBA also included pension benefit increases for all current pension plan participants affecting both prior and future service. The Company recognized a $0.4 million pension curtailment charge in the second quarter 2018 for the prior service cost of these pension benefit increases in connection with employees being hard frozen in the pension plan. Special termination benefits recorded in 2016 related to both pension and other postretirement benefits for USW-represented employees associated with the permanent idling of the Flat Rolled Products segment’s Midland, PA commodity stainless operations and Bagdad, PA grain-oriented electrical steel (GOES) finishing facility that occurred in the fourth quarter of 2016, and these costs were reported in restructuring charges in the consolidated statement of operations and for segment reporting (see Notes 16 and 17). Actuarial assumptions used to develop the components of defined benefit pension expense and other postretirement benefit expense were as follows: Pension Benefits Other Postretirement Benefits 2018 2017 2016 2018 2017 2016 Discount rate (a) 3.85 % 4.45 % 4.65 % 3.80 % 4.35 % 4.05 - 4.50% Rate of increase in future compensation levels 0.50 - 1.00% 0.50 - 1.00% 3.0 - 3.50% — — — Weighted average expected long-term rate of return on assets 7.75 % 7.75 % 8.00 % 4.0 % 4.0 % 4.0 % (a) Other postretirement benefits expense for 2016 was initially measured at a 4.50% discount rate. A portion of the obligation was remeasured using a 4.05% discount rate as of March 1, 2016, following a new CBA. Actuarial assumptions used for the valuation of defined benefit pension and other postretirement benefit obligations at the end of the respective periods were as follows: Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Discount rate 4.40 % 3.85 % 4.35 % 3.80 % Rate of increase in future compensation levels 0.50 - 1.00% 0.50 - 1.00% — — A reconciliation of the funded status for the Company’s defined benefit pension and other postretirement benefit plans at December 31, 2018 and 2017 was as follows: Pension Benefits Other Postretirement Benefits (In millions) 2018 2017 2018 2017 Change in benefit obligations: Benefit obligation at beginning of year $ 2,829.8 $ 2,727.7 $ 349.9 $ 354.8 Service cost 16.4 14.1 2.5 2.4 Interest cost 104.8 116.7 12.7 14.6 Benefits paid (294.5 ) (220.1 ) (36.5 ) (38.6 ) Subsidy paid — — — 0.6 Effect of currency rates (4.5 ) 7.4 — — Net actuarial (gains) losses – discount rate change (150.4 ) 174.6 (17.8 ) 16.6 – other (5.7 ) 9.4 48.3 (0.5 ) Plan curtailments 0.4 — — — Plan amendments 1.4 — — — Benefit obligation at end of year $ 2,497.7 $ 2,829.8 $ 359.1 $ 349.9 Plan curtailments and amendments in 2018 are the result of changes to retirement benefit programs in the SAC CBA as discussed above. Actuarial effects of changes in discount rates are separately identified in the preceding table. During 2018, an actuarial loss was recognized on the Company’s other postretirement benefit obligations due to an updated study on attrition rates of participants in certain retiree medical plans. Pension Benefits Other Postretirement Benefits (In millions) 2018 2017 2018 2017 Change in plan assets: Fair value of plan assets at beginning of year $ 2,129.6 $ 1,894.6 $ 0.6 $ 0.7 Actual returns on plan assets and plan expenses (107.2 ) 304.1 (0.5 ) 0.2 Employer contributions 49.3 143.4 — — Effect of currency rates (5.0 ) 7.6 — — Benefits paid (294.5 ) (220.1 ) — (0.3 ) Fair value of plan assets at end of year $ 1,772.2 $ 2,129.6 $ 0.1 $ 0.6 Pension benefit payments in 2018 include $97 million for the annuity buyout of smaller pension balances in a U.S. defined benefit pension plan involving approximately 3,700 , or 17% of participants. Pension benefit payments in 2017 include approximately $22 million associated with a voluntary lump-sum cash out offer to terminated vested participants. These actions were also part of ATI’s retirement benefit liability management strategy to reduce the overall size of the pension obligation and to lower administrative costs. Assets (liabilities) recognized in the consolidated balance sheets: Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Noncurrent assets $ 9.2 $ 2.1 $ — $ — Current liabilities (4.7 ) (5.3 ) (40.6 ) (31.5 ) Noncurrent liabilities (730.0 ) (697.0 ) (318.4 ) (317.8 ) Total amount recognized $ (725.5 ) $ (700.2 ) $ (359.0 ) $ (349.3 ) Changes to accumulated other comprehensive loss related to pension and other postretirement benefit plans in 2018 and 2017 were as follows: Pension Benefits Other Postretirement Benefits (In millions) 2018 2017 2018 2017 Beginning of year accumulated other comprehensive loss $ (1,426.1 ) $ (1,462.7 ) $ (83.7 ) $ (74.4 ) Amortization of net actuarial loss 65.9 62.6 10.6 9.0 Amortization of prior service cost (credit) 0.3 1.3 (2.9 ) (2.9 ) Remeasurements (110.4 ) (27.3 ) (31.0 ) (15.4 ) End of year accumulated other comprehensive loss $ (1,470.3 ) $ (1,426.1 ) $ (107.0 ) $ (83.7 ) Net change in accumulated other comprehensive loss $ (44.2 ) $ 36.6 $ (23.3 ) $ (9.3 ) Amounts included in accumulated other comprehensive loss at December 31, 2018 and 2017 were as follows: Pension Benefits Other Postretirement Benefits (In millions) 2018 2017 2018 2017 Prior service (cost) credit $ (2.1 ) $ (1.0 ) $ 8.8 $ 11.7 Net actuarial loss (1,468.2 ) (1,425.1 ) (115.8 ) (95.4 ) Accumulated other comprehensive loss (1,470.3 ) (1,426.1 ) (107.0 ) (83.7 ) Deferred tax effect 536.2 525.6 35.3 29.7 Accumulated other comprehensive loss, net of tax $ (934.1 ) $ (900.5 ) $ (71.7 ) $ (54.0 ) Amounts in accumulated other comprehensive loss presented above do not include any effects of deferred tax asset valuation allowances. See Note 13 for further discussion on deferred tax asset valuation allowances. Retirement benefit expense for 2019 for defined benefit plans is estimated to be approximately $88 million , comprised of $61 million for pension expense and $27 million of expense for other postretirement benefits. The net actuarial loss is recognized in the consolidated statement of operations using a corridor method. Because all of ATI’s pension plans are inactive, cumulative gains and losses in excess of 10% of the greater of the projected benefit obligation or the market value of plan assets are amortized over the expected average remaining future lifetime of participants, which is approximately 17 years on a weighted average basis. Prior service cost (credit) amortization is recognized in level amounts over the expected service of the active membership as of the amendment effective date. Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost in 2019 are: (In millions) Pension Benefits Other Postretirement Benefits Total Amortization of prior service cost (credit) $ 0.3 $ (2.9 ) $ (2.6 ) Amortization of net actuarial loss 73.7 13.4 87.1 Amortization of accumulated other comprehensive loss $ 74.0 $ 10.5 $ 84.5 The accumulated benefit obligation for all defined benefit pension plans was $2,482.5 million and $2,810.5 million at December 31, 2018 and 2017 , respectively. Additional information for pension plans with accumulated benefit obligations and projected benefit obligations in excess of plan assets: Pension Benefits (In millions) 2018 2017 Projected benefit obligation $ 2,420.8 $ 2,737.4 Accumulated benefit obligation $ 2,405.6 $ 2,718.0 Fair value of plan assets $ 1,686.1 $ 2,035.1 Cash contributions to ATI’s U.S. qualified defined benefit pension plans were $40 million in 2018, $135 million in 2017 and $115 million in 2016. The Company funds the U.S. defined benefit pension plans in accordance with the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code. Based upon current regulations and actuarial studies, the Company expects to make approximately $145 million in cash contributions to its U.S. qualified defined benefit pension plans in 2019. In addition, for 2019, the Company expects to fund benefits of approximately $8 million for its U.S. nonqualified benefit pension plans and its U.K. defined benefit plan. The following table summarizes expected benefit payments from the Company’s various pension and other postretirement defined benefit plans through 2028, and also includes estimated Medicare Part D subsidies projected to be received during this period based on currently available information. Pension benefit payments for the U.S. qualified defined benefit pension plans and the U.K. defined benefit plan are made from pension plan assets. (In millions) Pension Benefits Other Postretirement Benefits Medicare Part D Subsidy 2019 $ 186.6 $ 40.6 $ 0.6 2020 180.7 38.2 0.6 2021 177.9 35.6 0.6 2022 176.1 33.1 0.5 2023 173.9 30.8 0.5 2024 - 2028 825.0 123.9 1.9 The annual assumed rate of increase in the per capita cost of covered benefits (the health care cost trend rate) for health care plans was 6.4% in 2019 and is assumed to gradually decrease to 4.5% in the year 2038 and remain at that level thereafter. Assumed health care cost trend rates can have a significant effect on the amounts reported for the health care plans, however, the Company’s contributions for most of its’ retiree health plans are capped based on a fixed premium amount, which limits the impact of future health care cost increases. The fair values of the Company’s pension plan assets are determined using net asset value (NAV) as a practical expedient, or by information categorized in the fair value hierarchy level based on the inputs used to determine fair value, as further discussed in Note 11. The fair values at December 31, 2018 were as follows: (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset category Total NAV (Level 1) (Level 2) (Level 3) Equity securities: U.S. equities $ 362.9 $ 219.9 $ 143.0 $ — $ — International equities 377.4 335.7 41.7 — — Debt securities and cash: Fixed income and cash equivalents 493.7 116.9 6.3 370.5 — Floating rate 90.1 68.9 21.2 — — Private equity 137.1 137.1 — — — Hedge funds 258.3 258.3 — — — Real estate and other 52.7 52.7 — — — Total assets $ 1,772.2 $ 1,189.5 $ 212.2 $ 370.5 $ — The fair values of the Company’s pension plan assets at December 31, 2017 were as follows: (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset category Total NAV (Level 1) (Level 2) (Level 3) Equity securities: ATI common stock $ 71.3 $ — $ 71.3 $ — $ — Other U.S. equities 416.0 267.7 148.3 — — International equities 432.5 385.9 46.6 — — Debt securities and cash: Fixed income and cash equivalents 501.1 92.6 10.0 398.5 — Floating rate 169.9 122.6 47.3 — — Private equity 137.5 137.5 — — — Hedge funds 307.4 307.4 — — — Real estate and other 93.9 90.7 — 3.2 — Total assets $ 2,129.6 $ 1,404.4 $ 323.5 $ 401.7 $ — Pension plan assets at December 31, 2017 included 3.0 million shares of ATI common stock with a fair value of $71.3 million . No ATI stock was held in pension plan assets at December 31, 2018. A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Investments in U.S. and International equities, and Fixed Income are predominantly held in common/collective trust funds and registered investment companies. Some of these investments are publicly traded securities and are classified as Level 1, while others are public investment vehicles valued using the NAV provided by the administrator of the fund. The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. These investments are not classified in the fair value hierarchy. In addition, some fixed income instruments are investments in debt instruments that are valued using external pricing vendors and are classified within Level 2 of the fair value hierarchy. Floating interest rate global debt instruments are both domestic and foreign and include first lien debt, second lien debt and structured finance obligations, among others. These instruments are valued using NAV and are not classified in the fair value hierarchy, or are publicly traded securities and are classified as Level 1. Private equity investments include both Direct Funds and Fund-of-Funds. Direct Funds are investments in Limited Partnership (LP) interests. Fund-of-Funds are investments in private equity funds that invest in other private equity funds or LPs. Fair value of these investments is determined utilizing net asset values, and are not classified in the fair value hierarchy. Hedge fund investments are made as a limited partner in hedge funds managed by a general partner. Fair value of these investments is determined utilizing net asset values, and are not classified in the fair value hierarchy. Real estate investments are made either (1) as a limited partner in a portfolio of properties managed by a general partner or (2) through a CIF that invests in a portfolio of real estate funds. Fair value of these investments is determined utilizing net asset values, and are not classified in the fair value hierarchy. For certain investments which have formal financial valuations reported on a one-quarter lag, fair value is determined utilizing net asset values adjusted for subsequent cash flows, estimated financial performance and other significant events. For 2019 , the weighted average expected long-term rate of returns on defined benefit pension assets is 7.60% . In developing expected long-term rate of return assumptions, the Company evaluated input from its third party pension plan asset managers and actuaries, including reviews of their asset class return expectations and long-term inflation assumptions. An expected long-term rate of return is based on expected asset allocations within ranges for each investment category and projected annual compound returns. The Company’s actual, weighted average returns on pension assets for the last five years have been (4.8)% for 2018 , 16.9% for 2017 , 5.3% for 2016 , (1.2)% for 2015 , and 6.5% for 2014 . The plan assets for the ATI Pension Plan, the Company’s primary U.S. qualified defined benefit pension plan, represent over 90% of total pension plan assets at December 31, 2018 . The ATI Pension Plan invests in a diversified portfolio consisting of an array of asset classes that attempts to maximize returns while minimizing volatility. These asset classes include U.S. domestic equities, non-U.S. developed market equities, emerging market equities, hedge funds, private equity, traditional fixed income consisting of long government/credit and alternative credit, and real estate. The Company continually monitors the investment results of these asset classes and its fund managers, and explores other potential asset classes for possible future investment. The target asset allocations for ATI Pension Plan for 2019 , by major investment category, are: Asset category Target asset allocation range Global equity 30% - 60% Debt securities and cash 15% - 40% Private equity 0% - 15% Hedge funds 10% - 20% Real estate and other 0% - 10% As of December 31, 2018 , the Company’s pension plans had outstanding commitments to invest up to $41 million in global debt securities, $84 million in private equity investments and $51 million in real estate investments. These commitments are expected to be satisfied through the reallocation of pension trust assets while maintaining investments within the target asset allocation ranges. Other postretirement benefit plan assets are primarily invested in private equity investments, which are classified as Level 3 in the valuation hierarchy, as the valuations are substantially based upon unobservable information. The Company contributes to several multiemployer defined benefit pension plans under collective bargaining agreements that cover certain of its union-represented employees. The risks of participating in such plans are different from the risks of single-employer plans, in the following respects: a. Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. b. If a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. c. If the Company ceases to have an obligation to contribute to the multiemployer plan in which it had been a contributing employer, it may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of the Company’s participation in the plan prior to the cessation of its obligation to contribute. The amount that an employer that has ceased to have an obligation to contribute to a multiemployer plan is required to pay to the plan is referred to as a withdrawal liability. The Company’s participation in multiemployer plans for the years ended December 31, 2018 , 2017 and 2016 is reported in the following table. The Company’s contributions to the Steelworkers Western Independent Shops Pension Plan exceed 5% of this plan’s total contributions for the plan year ended September 30, 2017, which is the most recent information available from the Plan Administrator. Pension Protection Act Zone Status (1) FIP / RP Status Pending / Implemented (2) in millions Expiration Dates of Collective Bargaining Agreements EIN / Pension Plan Number Company Contributions Surcharge Imposed (3) Pension Fund 2018 2017 2018 2017 2016 Steelworkers Western Independent Shops Pension Plan 90-0169564 / 001 Green Green N/A $ 0.8 $ 0.6 $ 1.2 No 2/29/2020 Boilermakers-Blacksmiths National Pension Trust 48-6168020 / 001 Yellow Yellow Yes 2.5 2.2 1.8 No 9/30/2026 IAM National Pension Fund 51-6031295 / 002 Green Green N/A 2.1 1.7 1.6 No Various between 2019-2022 (4) Total contributions $ 5.4 $ 4.5 $ 4.6 (1) The most recent Pension Protection Act Zone Status available for ATI’s fiscal years 2018 and 2017 is for plan years ending in calendar years 2017 and 2016 , respectively. The zone status is based on information provided to ATI and other participating employers by each plan and is certified by the plan’s actuary. A plan in the “red” zone had been determined to be in “critical status”, based on criteria established by the Code, and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Code, and is generally less than 80% funded. A plan in the “green” zone has been determined to be neither in “critical status” nor in “endangered status”, and is generally at least 80% funded. In February 2019, the Company received notification from the Boilermakers-Blacksmiths National Pension Trust that it is expected to be certified by its actuary as being in “red” zone status in the plan year beginning January 1, 2019. (2) The “FIP / RP Status Pending / Implemented” column indicates whether a Funding Improvement Plan, as required under the Code by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2018 . (3) The “Surcharge Imposed” column indicates whether ATI’s contribution rate for 2018 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status”, in accordance with the requirements of the Code. (4) The Company is party to five separate bargaining agreements that require contributions to this plan. Expiration dates of these collective bargaining agreements range between July 14, 2019 and April 25, 2022. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in AOCI by component, net of tax, for the fiscal years ended December 31, 2018 , 2017 and 2016 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Derivatives Deferred Tax Asset Valuation Allowance Total Attributable to ATI: Balance, December 31, 2015 $ (951.2 ) $ (47.6 ) $ (15.7 ) $ — $ (1,014.5 ) OCI before reclassifications (60.6 ) (37.4 ) 13.2 (45.6 ) (130.4 ) Amounts reclassified from AOCI (a) 46.3 (b) — (c) 4.9 — 51.2 Net current-period OCI (14.3 ) (37.4 ) 18.1 (45.6 ) (79.2 ) Balance, December 31, 2016 (965.5 ) (85.0 ) 2.4 (45.6 ) (1,093.7 ) OCI before reclassifications (32.5 ) 31.5 11.1 — 10.1 Amounts reclassified from AOCI (a) 43.5 (b) — (c) (4.5 ) (d) 16.8 55.8 Net current-period OCI 11.0 31.5 6.6 16.8 65.9 Balance, December 31, 2017 (954.5 ) (53.5 ) 9.0 (28.8 ) (1,027.8 ) OCI before reclassifications (107.2 ) (20.4 ) (4.9 ) — (132.5 ) Amounts reclassified from AOCI (a) 55.9 (b) — (c) (8.9 ) (d) (20.5 ) 26.5 Net current-period OCI (51.3 ) (20.4 ) (13.8 ) (20.5 ) (106.0 ) Balance, December 31, 2018 $ (1,005.8 ) $ (73.9 ) $ (4.8 ) $ (49.3 ) $ (1,133.8 ) Attributable to noncontrolling interests: Balance, December 31, 2015 $ — $ 19.4 $ — $ — $ 19.4 OCI before reclassifications — (9.7 ) — — (9.7 ) Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — (9.7 ) — — (9.7 ) Balance, December 31, 2016 — 9.7 — — 9.7 OCI before reclassifications — 7.6 — — 7.6 Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — 7.6 — — 7.6 Balance, December 31, 2017 — 17.3 — — 17.3 OCI before reclassifications — (6.2 ) — — (6.2 ) Amounts reclassified from AOCI — — — — — Net current-period OCI — (b) (6.2 ) — — (6.2 ) Balance, December 31, 2018 $ — $ 11.1 $ — $ — $ 11.1 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 12). (b) No amounts were reclassified to earnings. (c) For 2018, following the Company’s January 1, 2018 adoption of changes issued by the FASB related to accounting guidance for derivatives, amounts related to derivatives are included in cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 10). For 2016 and 2017, amounts related to the effective portion of the derivatives were included in cost of goods sold in the period or periods the hedged item affects earnings, and amounts related to the ineffective portion of the derivatives were presented in selling and administrative expenses on the consolidated statements of operations (see Note 10). (d) Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates. Other comprehensive income (loss) amounts (OCI) reported above by category are net of applicable income tax expense (benefit) for each year presented. Income tax expense (benefit) on OCI items is recorded as a change in a deferred tax asset or liability. Amounts recognized in OCI include the impact of any deferred tax asset valuation allowances, when applicable, resulting from the Company’s three year cumulative loss position. Foreign currency translation adjustments, including those pertaining to noncontrolling interests, are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. Reclassifications out of AOCI for the fiscal years ended December 31, 2018 , 2017 and 2016 were as follows: Amount reclassified from AOCI (c) Fiscal year ended Details about AOCI Components (In millions) December 31, 2018 December 31, 2017 December 31, 2016 Affected line item in the consolidated statement of operations Postretirement benefit plans Prior service credit (cost) $ 2.6 (a) $ 1.6 (a) $ 0.4 (a) Actuarial losses (76.5 ) (a) (71.6 ) (a) (75.0 ) (a) (73.9 ) (c) (70.0 ) (c) (74.6 ) (c) Total before tax (18.0 ) (26.5 ) (28.3 ) Tax benefit (d) $ (55.9 ) $ (43.5 ) $ (46.3 ) Net of tax Derivatives Nickel and other raw material contracts $ 10.2 (b) $ (3.4 ) (b) $ (19.5 ) (b) Natural gas contracts 0.5 (b) (5.3 ) (b) (14.8 ) (b) Electricity contracts — (b) — (b) — (b) Foreign exchange contracts 1.3 (b) 15.9 (b) 26.4 (b) Interest rate swap (0.3 ) (b) — (b) — (b) 11.7 (c) 7.2 (c) (7.9 ) (c) Total before tax 2.8 2.7 (3.0 ) Tax provision (benefit) (d) $ 8.9 $ 4.5 $ (4.9 ) Net of tax (a) Amounts are included in nonoperating retirement benefit expense (see Note 12). (b) For 2018, following the Company’s January 1, 2018 adoption of changes issued by the FASB related to accounting guidance for derivatives, amounts related to derivatives, with the exception of the interest rate swap are included in cost of goods sold in the period or periods the hedged item affects earnings. Amounts related to the interest rate swap are included in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings (see Note 10). For 2016 and 2017, amounts related to the effective portion of the derivatives were included in cost of goods sold in the period or periods the hedged item affects earnings, and amounts related to the ineffective portion of the derivatives were presented in selling and administrative expenses on the consolidated statements of operations (see Note 10). (c) For pretax items, positive amounts are income and negative amounts are expense in terms of the impact to net income. Tax effects are presented in conformity with ATI’s presentation in the consolidated statements of operations. (d) These amounts exclude the impact of any deferred tax asset valuation allowances, when applicable (see Note 15 for further explanation). |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock Authorized preferred stock may be issued in one or more series, with designations, powers and preferences as shall be designated by the Board of Directors. At December 31, 2018 , there were no shares of preferred stock issued. Common Stock On November 7, 2017, the Company issued 17 million shares of common stock at $24.00 per share before expenses in an underwritten registered public offering. This equity offering resulted in proceeds, net of transaction costs, of $397.8 million . In December 2017, the Company used the proceeds from the equity offering to redeem all of the Senior Notes due 2019 (see Note 9). Share-based Compensation During 2007, the Company adopted the Allegheny Technologies Incorporated 2007 Incentive Plan (the “2007 Incentive Plan”), which was amended and restated in 2010 and further amended in 2012, and in 2015, the Company adopted the Allegheny Technologies Incorporated 2015 Incentive Plan (the “2015 Incentive Plan”). In May 2017, the Company adopted the Allegheny Technologies Incorporated 2017 Incentive Plan (the “2017 Incentive Plan”). Upon adoption of the 2017 Incentive Plan, all new awards are being made under the 2017 Incentive Plan. Shares previously remaining available for grant under the 2015 Incentive Plan, or which become available for award due to the forfeiture or cancellation of prior awards under the 2015 Incentive Plan, are available for award under the 2017 Incentive Plan. Shares that are subject to awards under the 2007 Incentive Plan that are canceled or forfeited do not become available for use under the 2017 Incentive Plan. Outstanding grants previously made under the 2015 Incentive Plan or the 2007 Incentive Plan remain in effect in accordance with their terms and the terms of their respective Plan. Awards earned under the Company’s share-based incentive compensation programs are generally paid with shares held in treasury, if sufficient treasury shares are held, and any additional required share payments are made with newly issued shares. At December 31, 2018 , 5.3 million shares of common stock were available for future awards under the 2017 Incentive Plan. The general terms of each arrangement granted under the 2007 Incentive Plan, the 2015 Incentive Plan or the 2017 Incentive Plan, and predecessor plans, the method of estimating fair value for each arrangement, and award activity is reported below. Beginning in 2016, the Company implemented a new share-based incentive compensation program, the Long-Term Incentive Plan (LTIP). The LTIP consists of both Restricted Share Units (RSU) and Performance Share Units (PSU). For years prior to 2016, the Company’s two principal share-based incentive compensation programs were the Performance/Restricted Stock Program (PRSP) of nonvested stock awards and the Long-Term Performance Plan (LTPP). The LTPP was adopted in 2014 and included performance shares under the Total Shareholder Return (TSR) portion and nonvested stock awards under the Long-Term Shareholder Value (LTSV) portion. Nonvested stock awards/units: Restricted Share Units: In 2016, 2017 and 2018, awards of RSUs were granted to employees, with service conditions. RSUs are rights to receive shares of Company stock when the award vests. The RSUs vest over three years based on employment service, with one-third of the award vesting on each of the first, second and third anniversaries of the grant date. No dividends are accumulated or paid on the RSUs. The fair value of the RSU award is measured based on the stock price at the grant date. In 2016, 2017 and 2018, 587,661 , 320,808 and 253,393 RSUs, respectively, were awarded to employees under the LTIP. In February 2018, one-third of the 2016 and 2017 RSU awards vested, comprising 178,335 and 102,279 shares, respectively. In February 2017, one-third of the 2016 RSU award vested, comprising 190,421 shares. Nonvested stock awards: Prior to 2016, awards of nonvested stock were granted to employees under the PRSP, with either performance and/or service conditions. Awards of nonvested stock are also granted to non-employee directors, with service conditions. For nonvested stock awards, dividend equivalents, whether in stock or cash form, accumulate but are not paid until the underlying award vests. LTSV awards vest at the end of a three -year measurement period subject to the achievement, in whole or in part, of specified operational goals. At December 31, 2017, 60% of the operational goals for the 2015 LTSV were attained and 73,734 shares vested and 49,148 shares were forfeited. All of the operational goals for the 2014 LTSV award were attained at December 31, 2016, and 116,989 shares vested. As of December 31, 2017, there were no remaining LTSV awards outstanding. The fair value of nonvested stock awards is measured based on the stock price at the grant date, adjusted for non-participating dividends, as applicable, based on the current dividend rate. For nonvested stock awards to employees in 2012, 2013, 2014 and 2015 under the Company’s PRSP, one-half of the nonvested stock (“performance shares”) vested only on the attainment of an income target, measured cumulatively over a three -year period. The remaining nonvested stock awarded to most employees under the 2015 PRSP vests over a service period of three years; for certain senior executives this service period is five years for the 2015 award. The remaining PRSP nonvested stock awarded to employees under the 2012, 2013 and 2014 vest over a service period of five years, with accelerated vesting to three years if the performance shares’ vesting criterion was attained. Expense for each of these awards was recognized based on estimates of attaining the performance criterion, including estimated forfeitures. The three -year cumulative income statement metrics in 2012, 2013, 2014 and 2015 PRSP awards were not met, and performance share forfeitures were 171,083 , 244,899 , 214,571 and 196,196 shares, respectively. The remaining service portion of the 2013 PRSP, comprising 233,896 shares, vested in February 2018. The remaining service portion of the 2012 PRSP, comprising of 166,929 shares, vested in February 2017. The remaining service portion of the 2015 PRSP for all employees except certain senior executives, comprising of 126,585 shares, vested at December 31, 2017. Vesting of the remaining service portion of the 2014 PRSP awards, and the 2015 PRSP awards for certain senior executives, continues over the five -year service periods through February 2019 and 2020, respectively. Compensation expense related to all nonvested stock awards and units was $9.7 million in 2018 , $9.8 million in 2017 , and $11.2 million in 2016 . Approximately $5.3 million of unrecognized fair value compensation expense relating to nonvested stock awards and restricted stock units is expected to be recognized through 2021, including $4.5 million expected to be recognized in 2019, based on estimated service period forfeitures. Activity under the Company’s nonvested stock awards and restricted share units for the years ended December 31, 2018 , 2017 , and 2016 was as follows: (Shares in thousands, $ in millions) 2018 2017 2016 Number of shares/units Weighted Average Grant Date Fair Value Number of shares/units Weighted Average Grant Date Fair Value Number of shares Weighted Average Grant Date Fair Value Nonvested, beginning of year 1,320 $ 32.5 1,852 $ 51.5 1,652 $ 57.0 Granted 290 7.8 378 7.1 682 8.4 Vested (540 ) (11.7 ) (591 ) (16.9 ) (154 ) (4.3 ) Forfeited (15 ) (0.3 ) (319 ) (9.2 ) (328 ) (9.6 ) Nonvested, end of year 1,055 $ 28.3 1,320 $ 32.5 1,852 $ 51.5 Performance awards: Performance Share Units: In 2016, the Company established the PSU award. PSU award opportunities are determined at a target number of shares, and the number of shares awarded is based on attainment of two ATI financial performance metrics measuring (1) net income attributable to ATI and (2) return on invested capital, over a three -year performance period. For certain senior executives, the number of PSUs to be awarded based on the performance criteria is modified up or down by 20% based on the Company’s relative total shareholder return over the performance measurement period (“TSR Modifier”), but not above the maximum number of PSUs to be vested. The TSR Modifier is measured as the return of the Company’s stock price (including assumed dividend reinvestment, if any) at the end of the performance period as compared to the stock prices (including assumed dividend reinvestment, if any) of a group of industry peers. The fair value of the PSU award is measured based on the stock price at the grant date, including the effect of the TSR Modifier. The fair value of the TSR Modifier is estimated using Monte Carlo simulations of stock price correlation, projected dividend yields and other variables over a three -year time horizon matching the TSR performance measurement period. In 2016, 2017 and 2018, the Company awarded 936,558 , 589,980 and 456,318 share units, respectively, at the target level with a weighted average grant date fair value of $11.5 million , $12.4 million and $12.9 million , respectively. The 2016 and 2017 PSU performance, and share units, each have a threshold attainment of 25% and a maximum attainment of 150% of the target financial performance metrics and target share units, measured over the applicable three -year performance period. The 2018 PSU performance, and share units, each have a threshold attainment of 25% and a maximum attainment of 200% of the target financial performance metrics and target share units, measured over the applicable three -year performance period. At December 31, 2018, a maximum of 1.7 million shares have been reserved for issuance for the PSU awards. At December 31, 2018, the 2016 PSU awards vested with financial performance attainment between threshold and target and a + 20% for the TSR Modifier, resulting in the issuance of 329,897 shares. Aggregate compensation expense recognized over the three year performance periods for the 2017 and 2018 PSU awards could range from zero to $34.8 million , including estimated forfeitures, based on the actual financial performance attained. Compensation expense for the PSUs during the performance period is recognized based on estimates of attaining the performance criteria, including estimated forfeitures, which is evaluated on a quarterly basis. The Company recognized $1.9 million , $3.8 million and $11.4 million of compensation expense in 2016, 2017 and 2018, respectively, for the PSU awards. As of December 31, 2018, ATI estimates achieving financial performance attainment for the 2017 and 2018 PSU awards approximately at target levels. Based on these estimates, there is $12.1 million of cumulative unrecognized compensation expense remaining for the PSU awards, including estimated forfeitures, which is expected to be recognized over the remaining performance periods through fiscal year 2020. This includes $9.6 million expected to be recognized in 2019, which includes accelerated expense recognition as a result of the pending retirement of the Company’s former Chief Executive Officer in 2019. Forfeited share units in 2016, 2017 and 2018 were 17,598 , 67,521 and 21,848 , respectively, with a weighted average grant date fair value of $0.2 million , $1.0 million and $0.5 million , respectively. Total Shareholder Return: Award opportunities under the TSR portion of the formerly-used LTPP incentive compensation program were determined at a target number of shares, and performance equity awards paid out based on the measured return of the Company’s stock price and dividend performance at the end of three -year periods as compared to the stock price and dividend performance of a group of industry peers. The actual number of shares awarded at the end of the performance measurement period may range from a minimum of zero to a maximum of two times target. Fair values for these performance awards were estimated using Monte Carlo simulations of stock price correlation, projected dividend yields and other variables over three -year time horizons matching the total shareholder return performance measurement periods. Compensation expense was $3.6 million in 2017 and $6.6 million in 2016 for the TSR awards. As of December 31, 2017, there were no remaining TSR awards under the LTPP outstanding. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income (loss) before income taxes for the Company’s U.S. and non-U.S. operations was as follows: (In millions) 2018 2017 2016 U.S. $ 190.8 $ (119.8 ) $ (782.1 ) Non-U.S. 56.9 33.3 48.1 Income (loss) before income taxes $ 247.7 $ (86.5 ) $ (734.0 ) The income tax provision (benefit) was as follows: (In millions) 2018 2017 2016 Current: Federal $ 1.0 $ (0.8 ) $ 0.5 State (0.8 ) (1.3 ) (1.5 ) Foreign 10.1 6.2 14.4 Total 10.3 4.1 13.4 Deferred: Federal 1.3 2.4 (115.8 ) State (0.5 ) (14.4 ) (3.5 ) Foreign (0.1 ) 1.1 (1.0 ) Total 0.7 (10.9 ) (120.3 ) Income tax provision (benefit) $ 11.0 $ (6.8 ) $ (106.9 ) On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). The Tax Act made broad and complex changes to the U.S. tax code. Changes impacting the Company’s 2018 tax provision include the following: (1) reducing the U.S. federal current and deferred rate to 21% ; (2) requiring companies to pay a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries, with $5.9 million included in the 2018 tax provision; (3) requiring a current inclusion in U.S. federal taxable income of certain earnings of controlled foreign corporations, commonly referred to as Global Intangible Low-Taxed Income (GILTI), for which the Company is currently utilizing net operating losses (NOLs) prior to January 1, 2018 to offset the 2018 inclusion of $25.7 million ; (4) creating a new limitation on deductible interest expense, for which the Company has estimated the federal limitation to be $38 million in 2018, creating an indefinite lived deferred tax asset for which a valuation allowance was established. This limitation is affected by the interpretation of the meaning of depreciation in the proposed regulations, which could change as additional guidance and/or final regulations are issued. The following is a reconciliation of income taxes computed at the statutory U.S. Federal income tax rate to the actual effective income tax provision (benefit): (In millions) 2018 2017 2016 Taxes computed at the federal rate $ 52.0 $ (30.3 ) $ (256.9 ) Goodwill impairment — 36.6 — State and local income taxes, net of federal tax benefit (0.5 ) — (26.8 ) Valuation allowance (48.0 ) (14.5 ) 171.5 Repatriation of foreign earnings (GILTI starting in 2018) 5.4 14.2 2.1 Impact of U.S. tax reform 5.9 (4.1 ) — Foreign earnings taxed at different rate 3.2 (3.5 ) (1.2 ) Adjustment to prior years’ taxes (5.8 ) (5.2 ) 3.4 Withholding taxes 2.7 2.2 — Preferential tax rate (4.8 ) (3.7 ) (4.1 ) Other 0.9 1.5 5.1 Income tax provision (benefit) $ 11.0 $ (6.8 ) $ (106.9 ) As proposed and final income tax regulations were issued throughout 2018, the Company continued to analyze the impact of the Tax Act. The Company estimated the impact of the Tax Act as part of the 2017 year-end financial statements. The change in the U.S. federal corporate tax rate from 35% to 21% resulted in a $2.6 million benefit as it relates to the remeasurement of indefinite lived deferred tax liabilities. The repeal of the alternative minimum tax resulted in a $1.5 million decrease in the deferred tax asset valuation allowance. The $4.1 million combination of these items was reflected within the 2017 financial statements and is located on the line labeled Impact from U.S. tax reform in the above table. In 2018, the Company was granted a preferential tax rate related to the STAL joint venture operations in China for tax years 2018 through 2020. The preferential tax rate is 15% , compared to the statutory rate of 25% . The Company has benefited from past preferential tax rate grants by the Chinese government, and the previous 15% three-year preferential tax rate expired on December 31, 2017. The Company recognizes deferred tax assets to the extent it believes these deferred tax assets are more likely than not to be realized. Valuation allowances are established when it is estimated that it is more likely than not the tax benefit of the deferred tax asset will not be realized. In making such determination, the Company considers all available evidence, both positive and negative, regarding the estimated future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards, historical taxable income in prior carryback periods if carryback is permitted, and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. The verifiable evidence such as future reversals of existing temporary differences and the ability to carryback are considered before the subjective sources such as estimate future taxable income exclusive of temporary differences and tax planning strategies. In situations where a three-year cumulative loss position exists, accounting standards limit the ability to consider projections of future results as positive evidence to assess the realizability of deferred tax assets. If the Company determines that it would not be able to realize its deferred tax assets in the future in excess of their recorded net amount, an adjustment to the deferred tax asset valuation allowance would result. Since 2015, the Company’s results have reflected a three year cumulative loss from U.S. operations. As a result, the Company established $74.5 million in deferred tax asset valuation allowances in 2015, of which $68.4 million were for certain federal and state deferred tax assets. In 2016, the actions to indefinitely idle the Rowley, UT titanium sponge production facility (see Note 17 for further information) resulted in a reassessment of the realizability of U.S. federal deferred tax assets. In 2016, the Company’s results of operations included an increase to deferred tax asset valuation allowances of $171.5 million , including an additional $165.8 million valuation allowance on federal and state deferred tax assets. In 2017, the Company’s results reflected a partial release of the valuation allowance related to the federal and state deferred tax assets, along with the one-time transition tax inclusion in 2017. As discussed below, the transition tax inclusion presented in the year end 2017 financial statements reflected a reduction in the NOL deferred tax asset. This presentation was changed in 2018 based upon updated guidance whereby the Company utilized approximately $28.2 million of available tax credits instead of the NOL. This overall change in presentation is reflected within the 2018 effective tax rate. In 2018, the Company reported income before tax of $247.7 million , of which $190.8 million is attributable to the U.S. The overall income, along with the GILTI inclusion for the year, resulted in the Company utilizing NOL deferred tax assets in 2018, which resulted in a U.S. valuation allowance release of $46.3 million for 2018. The Company has elected to recognize GILTI liabilities as an element of income tax expense in the period incurred. The Company continues to maintain a valuation allowance on the net deferred tax assets for U.S. federal and state income tax purposes, with the exception of the indefinite lived deferred tax liability related to goodwill and the withholding tax liability associated with its permanent reinvestment assertion, as well as valuation allowances for certain foreign operations. The Company also established valuation allowances on deferred tax amounts recorded in accumulated other comprehensive loss in 2016, 2017 and 2018 of $45.6 million , $28.8 million and $49.3 million , respectively, which are not reflected in the preceding table reconciling amounts recognized in the income tax provision (benefit) recorded on the statement of operations (see Note 13). Additional Internal Revenue Service (IRS) guidance and Internal Revenue Code (IRC) elections have been published, along with individual state guidance, which have aided in refining the initial estimate related to the tax on the mandatory repatriation of foreign earnings, otherwise known as the “transition tax”. The transition tax is an income tax on certain previously untaxed accumulated and current earnings and profits (E&P) of the Company’s foreign subsidiaries. The Company was able to reasonably estimate the transition tax and recorded an initial provisional transition tax liability of $0 as of December 31, 2017 for federal income tax purposes. The initial estimate was approximately $100 million of federal taxable income on the mandatory deemed repatriation of foreign E&P, for which the Company planned to utilize a portion of its federal NOL deferred tax asset to fully offset the estimated transition tax liability of $35 million . On the basis of finalized E&P computations, the Company recognized an additional measurement-period adjustment of $5.9 million related to the transition tax liability, with a corresponding adjustment of $5.9 million to income tax expense. This was based on the Company’s finalized untaxed foreign E&P of $97.5 million , resulting in a transition tax liability of $34.1 million . The Company made an election to forego the utilization of NOLs to offset the transition tax liability, and instead utilized available income tax credits of $28.2 million , resulting in a net transition tax liability of $5.9 million . Even though the final regulations were not issued by December 31, 2018, the Company does not anticipate any change to this calculation. The transition tax liability is payable over eight years under the IRC, and the first installment payment of $0.5 million was paid in 2018. The election not to use NOLs to offset the transition tax inclusion preserved $97.5 million of the federal NOL tax attribute that the Company expects it will be able to utilize before expiration, while using tax credits that would potentially expire due to utilization limitations. The overall impact on the Company’s deferred tax assets as of December 31, 2017 is zero due to the net valuation allowance position. Based upon the limited guidance issued by states at the time of the year-end 2017 provision, the Company determined that estimating the impact of the transition tax for state purposes was not feasible. The Company has subsequently quantified the overall impact of the transition tax to be a reduction of $1.2 million to the state NOL deferred tax asset with an offset to the state valuation allowance. Changes to certain deferred tax assets and the valuation allowance at December 31, 2017 as a result of the Company’s final transition tax calculation for federal and state purposes were as follows (in millions): Deferred Income Tax Assets Estimate Refinement Originally Reported Change Net operating loss tax carryovers $ 355.9 $ 336.1 $ 19.8 Tax credits 63.2 92.6 (29.4 ) Gross deferred income tax assets 733.3 742.9 (9.6 ) Valuation allowance (264.4 ) (274.0 ) 9.6 Total deferred income tax assets $ 468.9 $ 468.9 $ — The utilization of income tax credits of $28.2 million does not match the change in the deferred tax asset amount due to the refinement of the transition tax calculation. The Company continues to maintain a valuation allowance on the federal, state and some foreign net deferred tax assets as of December 31, 2018. Deferred income taxes result from temporary differences in the recognition of income and expense for financial and income tax reporting purposes, and differences between the fair value of assets acquired in business combinations accounted for as purchases for financial reporting purposes and their corresponding tax bases. Deferred income taxes represent future tax benefits or costs to be recognized when those temporary differences reverse. The categories of assets and liabilities that have resulted in differences in the timing of the recognition of income and expense at December 31, 2018 and 2017 were as follows: (In millions) 2018 2017 Deferred income tax assets Pensions $ 159.4 $ 158.0 Postretirement benefits other than pensions 87.3 86.5 Net operating loss tax carryovers 307.5 336.1 Tax credits 49.7 92.6 Deferred compensation and other benefit plans 2.4 13.8 Other items 67.3 55.9 Gross deferred income tax assets 673.6 742.9 Valuation allowance for deferred tax assets (194.8 ) (274.0 ) Total deferred income tax assets 478.8 468.9 Deferred income tax liabilities Bases of property, plant and equipment 371.5 375.3 Inventory valuation 67.1 50.0 Bases of amortizable intangible assets 29.9 38.7 Other items 14.5 7.0 Total deferred tax liabilities 483.0 471.0 Net deferred tax liability $ (4.2 ) $ (2.1 ) The following summarizes the carryforward periods for the tax attributes related to NOLs and credits by jurisdiction. ($ in millions) Jurisdiction Attribute Amount Expiration Period Amount expiring within 5 years Amount expiring in 5-20 years U.S. NOL $943 20 years $— $943 U.S. Foreign Tax Credit $37 10 years $13 $24 U.S. Research and Development Credit $1 20 years $— $1 State NOL $140 Various $30 $110 State Credits $12 Various $3 $9 U.K. NOL $13 Indefinite $— $— Luxembourg NOL $18 Indefinite $— $— Poland Economic Zone Credit $2 9 years $— $2 Income taxes paid and amounts received as refunds were as follows: (In millions) 2018 2017 2016 Income taxes paid $ 9.7 $ 10.4 $ 8.6 Income tax refunds received (1.6 ) (7.1 ) (10.5 ) Income taxes paid (received), net $ 8.1 $ 3.3 $ (1.9 ) In general, the Company is responsible for filing consolidated U.S. federal, foreign and combined, unitary or separate state income tax returns. The Company is responsible for paying the taxes relating to such returns, including any subsequent adjustments resulting from the redetermination of such tax liability by the applicable taxing authorities. As of December 31, 2018, the Company has outstanding federal tax refunds of $6.9 million related to filing of amended returns. In 2016 and 2017, the Company received $7.3 million and $3.2 million , respectively, for federal tax refunds of prior years’ taxes paid. Deferred taxes of $3.2 million have been recorded for foreign withholding taxes on earnings expected to be repatriated to the U.S. parent. The Company does not intend to distribute the $97.5 million taxed under the Tax Act, and has not recorded any deferred taxes related to such amounts. The remaining excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries is indefinitely reinvested, and the determination of any deferred tax liability on this amount is not practicable. Uncertain tax positions are recorded using a two-step process based on (1) determining whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those positions that meet the more-likely-than-not-recognition threshold, the Company records the largest amount of the tax benefit that is more than 50 percent likely to be realized upon ultimate settlement with the related tax authority. The changes in the liability for unrecognized income tax benefits for the years ended December 31, 2018 , 2017 and 2016 were as follows: (In millions) 2018 2017 2016 Balance at beginning of year $ 14.7 $ 22.7 $ 19.6 Increases in prior period tax positions — — 7.9 Decreases in prior period tax positions (0.1 ) (0.7 ) (0.1 ) Increases in current period tax positions 0.7 0.7 0.6 Expiration of the statute of limitations (0.6 ) (0.4 ) (1.1 ) Settlements — (7.6 ) (4.2 ) Balance at end of year $ 14.7 $ 14.7 $ 22.7 For years ended December 31, 2018 and 2017, the liability includes $12.1 million and $11.7 million , respectively, of unrecognized tax benefits that are classified within deferred income taxes as a reduction of NOL carryforwards. The total estimated unrecognized tax benefit that, if recognized, would affect ATI’s effective tax rate is approximately $3 million . At this time, the Company believes that it is reasonably possible that approximately $1 million of the estimated unrecognized tax benefits as of December 31, 2018 will be recognized within the next twelve months based on the expiration of statutory review periods. The Company recognizes accrued interest and penalties related to uncertain tax positions as income tax expense. The amounts accrued for interest and penalty charges for the years ended December 31, 2018, 2017 and 2016 were not significant. At December 31, 2018 and 2017, the accrued liabilities for interest and penalties related to unrecognized tax benefits were $2.7 million and $3.2 million , respectively. The Company, and/or one of its subsidiaries, files income tax returns in the U.S. federal jurisdiction and in various state and foreign jurisdictions. A summary of tax years that remain subject to examination, by major tax jurisdiction, is as follows: Jurisdiction Earliest Year Open to U.S. Federal 2017 States: Pennsylvania 2015 Foreign: China 2015 Poland 2012 United Kingdom 2016 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The Company operates in two business segments: High Performance Materials & Components (HPMC) and Flat Rolled Products (FRP). Over 75% of 2018 HPMC business segment sales are to the aerospace & defense markets, and nearly half of HPMC’s total sales are products for commercial jet engines. Other major HPMC end markets include medical, oil & gas, electrical energy and construction & mining. HPMC produces a wide range of high performance materials, and components, and advanced metallic powder alloys made from titanium and titanium-based alloys, nickel-based alloys and superalloys, and a variety of other specialty materials. These materials are made in a variety of product forms that include precision forgings, castings, machined parts and others. The FRP segment serves a diverse group of end markets, with the oil & gas market, including chemical and hydrocarbon processing, and the automotive market collectively representing over 45% of 2018 sales. Other major end markets for FRP include food processing equipment and appliances, construction & mining, electronics, communication equipment and computers, and aerospace & defense. FRP produces nickel-based alloys, specialty alloys, and titanium and titanium-based alloys, and stainless steel in a variety of product forms including plate, sheet, engineered strip, and Precision Rolled Strip products. The business units in this segment include ATI Flat Rolled Products and STAL, in which the Company has a 60% ownership interest. Segment results also include ATI’s 50% interests in both A&T Stainless and Uniti, which are accounted for under the equity method. See Note 6 for further information on the Company’s joint ventures. The measure of segment operating profit excludes all effects of LIFO inventory accounting and any related changes in net realizable value inventory reserves which offset the Company’s aggregate net debit LIFO valuation balance, income taxes, corporate expenses, net interest expense, closed operations and other expenses, charges for goodwill impairment (see Note 5), restructuring charges and other costs (see Note 17), debt extinguishment charges (see Note 9) and non-operating gains or losses (see Note 6). Management believes segment operating profit, as defined, provides an appropriate measure of controllable operating results at the business segment level. Intersegment sales are generally recorded at full cost or market. Common services are allocated on the basis of estimated utilization. (In millions) 2018 2017 2016 Total sales: High Performance Materials & Components $ 2,413.6 $ 2,127.0 $ 1,979.5 Flat Rolled Products 1,799.0 1,527.5 1,260.8 Total sales 4,212.6 3,654.5 3,240.3 Intersegment sales: High Performance Materials & Components 79.4 59.6 49.1 Flat Rolled Products 86.6 69.8 56.6 Total intersegment sales 166.0 129.4 105.7 Sales to external customers: High Performance Materials & Components 2,334.2 2,067.4 1,930.4 Flat Rolled Products 1,712.4 1,457.7 1,204.2 Total sales to external customers $ 4,046.6 $ 3,525.1 $ 3,134.6 Total international sales were $1,698.4 million in 2018 , $1,454.5 million in 2017 , and $1,277.1 million in 2016 . Of these amounts, sales by operations in the United States to customers in other countries were $1,303.8 million in 2018 , $1,078.6 million in 2017 , and $971.4 million in 2016 . (In millions) 2018 2017 2016 Operating profit: High Performance Materials & Components $ 335.4 $ 246.4 $ 168.7 Flat Rolled Products 77.8 37.0 (163.0 ) Total operating profit 413.2 283.4 5.7 LIFO and net realizable value reserves (See Note 3) (0.7 ) (0.2 ) 0.8 Corporate expenses (58.1 ) (50.5 ) (43.4 ) Closed operations and other expenses (21.6 ) (34.0 ) (34.6 ) Restructuring and other charges (See Note 17) — — (538.5 ) Impairment of goodwill (See Note 5) — (114.4 ) — Debt extinguishment charge (See Note 9) — (37.0 ) — Gain on joint venture deconsolidation (See Note 6) 15.9 — — Interest expense, net (101.0 ) (133.8 ) (124.0 ) Income (loss) before income taxes $ 247.7 $ (86.5 ) $ (734.0 ) In the third quarter of 2016, the Company announced the indefinite idling of the Rowley, UT titanium sponge facility and the consolidation of certain titanium manufacturing operations. See Note 17 for further explanation. Results for the HPMC segment exclude the Rowley operations beginning with the third quarter of 2016, with such operations being reported in closed operations and other expenses. In October 2016, the Company announced the closure of the Midland, PA commodity stainless operations and the Bagdad, PA GOES finishing facility. These facilities were indefinitely idled earlier in 2016, and management concluded that the facilities could not be operated at an acceptable rate of return. See Note 17 for further explanation. Results for the FRP segment exclude the ongoing holding costs of these facilities beginning in October 2016, with such costs being reported in closed operations and other expenses. Restructuring and other charges for the year ended December 31, 2016 are comprised of $471.3 million in long-lived asset impairment charges, $31.7 million of facility shutdown and idling costs, $24.2 million of employee benefit costs and $11.3 million of inventory valuation charges for titanium sponge that are classified in cost of sales (see Note 3 for additional information). The shutdown and idling costs primarily relate to the indefinite idling of the Company’s Rowley, UT titanium sponge facility, and the closures of the Midland, PA commodity stainless operations and the Bagdad, PA GOES finishing facility. The employee benefit costs largely relate to FRP severance charges for salaried workforce reductions and costs associated with the previously mentioned facility idlings and closures. Closed operations and other expenses are primarily presented in selling and administrative expenses in the consolidated statements of operations. In 2018, these items included costs at closed facilities, including legal matters, environmental, real estate and other facility costs, and changes in foreign currency remeasurement impacts primarily related to our European Treasury Center operation. The reduction in interest expense in 2018 compared to the prior year periods is due to the redemption of the Company’s previously outstanding 9.375% Senior Notes due 2019 in the fourth quarter of 2017. Certain additional information regarding the Company’s business segments is presented below: (In millions) 2018 2017 2016 Depreciation and amortization: High Performance Materials & Components $ 106.5 $ 109.3 $ 118.4 Flat Rolled Products 47.0 45.6 48.8 Corporate 2.9 5.9 3.1 Total depreciation and amortization $ 156.4 $ 160.8 $ 170.3 Capital expenditures: High Performance Materials & Components $ 79.8 $ 62.7 $ 89.9 Flat Rolled Products 56.4 59.1 111.8 Corporate 3.0 0.9 0.5 Total capital expenditures $ 139.2 $ 122.7 $ 202.2 Identifiable assets: 2018 2017 2016 High Performance Materials & Components $ 2,765.4 $ 2,662.3 $ 2,744.3 Flat Rolled Products 2,225.7 2,218.4 2,056.4 Discontinued Operations — 0.2 0.4 Corporate: Deferred Taxes 8.7 7.6 12.1 Cash and cash equivalents and other 502.0 296.9 356.8 Total assets $ 5,501.8 $ 5,185.4 $ 5,170.0 ($ in millions) 2018 Percent of total 2017 Percent of total 2016 Percent of total Total assets: United States $ 4,859.1 88 % $ 4,547.7 88 % $ 4,591.5 89 % China 287.3 5 % 276.0 5 % 249.3 5 % United Kingdom 136.7 3 % 122.7 2 % 122.8 2 % Other 218.7 4 % 239.0 5 % 206.4 4 % Total Assets $ 5,501.8 100 % $ 5,185.4 100 % $ 5,170.0 100 % |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Charges There were no restructuring charges recorded in fiscal years 2018 or 2017. For the year ended December 31, 2016, the Company recorded restructuring charges of $523.8 million , which are presented as restructuring charges in the consolidated statement of operations. These charges were comprised of $471.3 million in long-lived asset impairment charges, $31.7 million of facility shutdown and idling costs, and $20.8 million of employee benefit costs. On August 24, 2016, the Company announced the indefinite idling of the Rowley, UT titanium sponge production facility and the consolidation of certain titanium manufacturing operations in the HPMC segment. Over the last several years, significant global capacity had been added to produce titanium sponge, which is a key raw material used to produce ATI’s titanium products. In addition, demand for industrial-grade titanium products from global markets continued to be weak. As a result of these factors, titanium sponge, including aerospace quality sponge, could now be purchased from qualified global producers under long-term supply agreements at prices lower than the production costs at ATI’s titanium sponge facility in Rowley, UT. ATI entered into long-term cost competitive supply agreements with several producers of premium-grade and standard-grade titanium sponge. The lower cost titanium sponge purchased under these supply agreements replaced the titanium sponge produced at the Rowley facility. As a result of these actions, the Company recorded a non-cash impairment charge of $470.8 million during the quarter ended September 30, 2016 to reduce the carrying value of the Rowley, UT facility to an estimated fair value of $15.0 million . The long-lived asset impairment charge was based on an analysis of the estimated fair value, including asset appraisals using cost, income and market approaches, which represent Level 3 unobservable information in the fair value hierarchy. The indefinite idling of the Rowley, UT facility was completed in the fourth quarter 2016, as was the closure of a small titanium wire production facility in Frackville, PA, and the idling of certain titanium manufacturing operations in Albany, OR. In addition, during the fiscal year ended December 31, 2016, the Company recognized $23.8 million of facility shutdown and idling costs, including contract termination costs, and $7.5 million of employee benefit costs including severance obligations for the elimination of approximately 180 positions associated with these and other HPMC restructuring actions. The Rowley facility was idled in a manner that allows the facility to be restarted in the future if supported by market conditions. On October 25, 2016, the Company announced the closure of the Midland, PA commodity stainless melt and sheet finishing operations and the Bagdad, PA GOES finishing facility. These facilities, which were part of the Company’s FRP operations, were indefinitely idled earlier in 2016, and management concluded that the facilities could not be operated at an acceptable rate of return. As a result of these actions, the Company recorded $8.4 million during the year ended December 31, 2016 of closure-related costs and asset impairments, and $4.9 million of employee benefit costs, including $3.4 million of special termination benefits for pension and other postretirement benefit plans that was reported in nonoperating retirement benefit expense in the 2016 consolidated statement of operations. Also during 2016, an $11.8 million charge was recorded for severance obligations in the FRP operations, for the reduction of approximately one-third of FRP’s salaried workforce through the elimination of over 250 positions, which was largely completed by the end of 2016. Restructuring reserves were substantially paid in 2017 and there are no significant restructuring reserves remaining. |
Per Share Information
Per Share Information | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Per Share Information | Per Share Information The following table sets forth the computation of basic and diluted net income (loss) per common share: (In millions, except per share amounts) For the Years Ended December 31, 2018 2017 2016 Numerator: Numerator for basic net income (loss) per common share - Net income (loss) attributable to ATI $ 222.4 $ (91.9 ) $ (640.9 ) Effect of dilutive securities: 4.75% Convertible Senior Notes due 2022 12.9 — — Numerator for diluted net income (loss) per common share - Net income (loss) attributable to ATI after assumed conversions $ 235.3 $ (91.9 ) $ (640.9 ) Denominator: Denominator for basic net income (loss) per common share—weighted average shares 125.2 110.1 107.3 Effect of dilutive securities: Share-based compensation 0.8 — — 4.75% Convertible Senior Notes due 2022 19.9 — — Denominator for diluted net income (loss) per common share—adjusted weighted average shares and assumed conversions 145.9 110.1 107.3 Basic net income (loss) attributable to ATI per common share $ 1.78 $ (0.83 ) $ (5.97 ) Diluted net income (loss) attributable to ATI per common share $ 1.61 $ (0.83 ) $ (5.97 ) Common stock that would be issuable upon the assumed conversion of the 2022 Convertible Notes and other option equivalents and contingently issuable shares are excluded from the computation of contingently issuable shares, and therefore, from the denominator for diluted earnings per share, if the effect of inclusion would have been anti-dilutive. There were no anti-dilutive shares for 2018 . There were 20.8 million and 13.1 million anti-dilutive shares for 2017 and 2016 , respectively. |
Financial Information for Subsi
Financial Information for Subsidiary and Guarantor Parent | 12 Months Ended |
Dec. 31, 2018 | |
Financial Information for Subsidiary and Guarantor Parent [Abstract] | |
Financial Information for Subsidiary and Guarantor Parent | Financial Information for Subsidiary and Guarantor Parent The payment obligations under the $150.0 million 6.95% Debentures due 2025 issued by Allegheny Ludlum, LLC (formerly known as Allegheny Ludlum Corporation) (the “Subsidiary”) are fully and unconditionally guaranteed by ATI (the “Guarantor Parent”). In accordance with positions established by the U.S. 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 plans, which cover 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 U.S. qualified defined benefit pension assets or liabilities, or the related deferred taxes. These 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 December 31, 2018 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ 0.1 $ 10.8 $ 371.1 $ — $ 382.0 Accounts receivable, net — 126.3 401.5 — 527.8 Intercompany notes receivable — — 3,968.8 (3,968.8 ) — Short-term contract assets — — 51.2 — 51.2 Inventories, net — 216.1 995.0 — 1,211.1 Prepaid expenses and other current assets 12.9 29.3 32.4 — 74.6 Total current assets 13.0 382.5 5,820.0 (3,968.8 ) 2,246.7 Property, plant and equipment, net 1.7 1,548.4 924.9 — 2,475.0 Goodwill — — 534.7 — 534.7 Intercompany notes receivable — — 200.0 (200.0 ) — Investments in subsidiaries 6,096.4 37.7 — (6,134.1 ) — Other assets 35.6 30.7 179.1 — 245.4 Total assets $ 6,146.7 $ 1,999.3 $ 7,658.7 $ (10,302.9 ) $ 5,501.8 Liabilities and stockholders’ equity: Accounts payable $ 3.3 $ 177.5 $ 318.0 $ — $ 498.8 Accrued liabilities 59.1 71.7 129.3 — 260.1 Intercompany notes payable 2,102.8 1,866.0 — (3,968.8 ) — Short-term contract liabilities — 33.0 38.4 — 71.4 Short-term debt and current portion of long-term debt 0.2 0.7 5.7 — 6.6 Total current liabilities 2,165.4 2,148.9 491.4 (3,968.8 ) 836.9 Long-term debt 1,278.8 151.8 104.9 — 1,535.5 Intercompany notes payable — 200.0 — (200.0 ) — Accrued postretirement benefits — 259.2 59.2 — 318.4 Pension liabilities 681.6 4.0 44.4 — 730.0 Deferred income taxes 12.9 — — — 12.9 Long-term contract liabilities — — 7.3 — 7.3 Other long-term liabilities 16.4 17.6 35.2 — 69.2 Total liabilities 4,155.1 2,781.5 742.4 (4,168.8 ) 3,510.2 Total stockholders’ equity (deficit) 1,991.6 (782.2 ) 6,916.3 (6,134.1 ) 1,991.6 Total liabilities and stockholders’ equity $ 6,146.7 $ 1,999.3 $ 7,658.7 $ (10,302.9 ) $ 5,501.8 Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Operations For the year ended December 31, 2018 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,410.3 $ 2,636.3 $ — $ 4,046.6 Cost of sales 16.6 1,302.4 2,097.3 — 3,416.3 Gross profit (loss) (16.6 ) 107.9 539.0 — 630.3 Selling and administrative expenses 101.7 34.2 132.3 — 268.2 Operating income (loss) (118.3 ) 73.7 406.7 — 362.1 Nonoperating retirement benefit expense (12.7 ) (19.5 ) (1.7 ) — (33.9 ) Interest income (expense), net (138.8 ) (114.6 ) 152.4 — (101.0 ) Other income (expense) including equity in income of unconsolidated subsidiaries 517.5 16.8 0.8 (514.6 ) 20.5 Income (loss) before income taxes 247.7 (43.6 ) 558.2 (514.6 ) 247.7 Income tax provision (benefit) 11.0 (8.7 ) 83.9 (75.2 ) 11.0 Net income (loss) 236.7 (34.9 ) 474.3 (439.4 ) 236.7 Less: Net income attributable to noncontrolling interest — — 14.3 — 14.3 Net income (loss) attributable to ATI $ 236.7 $ (34.9 ) $ 460.0 $ (439.4 ) $ 222.4 Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Comprehensive Income (Loss) For the year ended December 31, 2018 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 236.7 $ (34.9 ) $ 474.3 $ (439.4 ) $ 236.7 Other comprehensive income (loss) Currency translation adjustment arising during the period (26.6 ) — (26.6 ) 26.6 (26.6 ) Net derivative loss on hedge transactions (18.1 ) — — — (18.1 ) Pension and postretirement benefits (67.5 ) (19.1 ) 0.7 18.4 (67.5 ) Other comprehensive income (loss), net of tax (112.2 ) (19.1 ) (25.9 ) 45.0 (112.2 ) Comprehensive income (loss) 124.5 (54.0 ) 448.4 (394.4 ) 124.5 Less: Comprehensive income attributable to noncontrolling interest — — 8.1 — 8.1 Comprehensive income (loss) attributable to ATI $ 124.5 $ (54.0 ) $ 440.3 $ (394.4 ) $ 116.4 Condensed Statements of Cash Flows For the year ended December 31, 2018 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ (107.0 ) $ (223.9 ) $ 738.7 $ (15.0 ) $ 392.8 Investing Activities: Purchases of property, plant and equipment (2.1 ) (26.2 ) (110.9 ) — (139.2 ) Net receipts (payments) on intercompany activity — — (346.5 ) 346.5 — Purchases of businesses — — (10.0 ) — (10.0 ) Asset disposals and other 1.3 2.6 0.2 — 4.1 Cash flows provided by (used in) investing activities (0.8 ) (23.6 ) (467.2 ) 346.5 (145.1 ) Financing Activities: Borrowings on long-term debt — — 7.1 — 7.1 Payments on long-term debt and capital leases (0.2 ) (0.9 ) (5.3 ) — (6.4 ) Net payments under credit facilities — — (5.9 ) — (5.9 ) Net receipts (payments) on intercompany activity 112.5 234.0 — (346.5 ) — Dividends paid to stockholders — — (15.0 ) 15.0 — Dividends paid to noncontrolling interests — — (10.0 ) — (10.0 ) Sale to noncontrolling interests — 11.7 2.7 — 14.4 Shares repurchased for income tax withholding on share-based compensation and other (6.5 ) — — — (6.5 ) Cash flows provided by (used in) financing activities 105.8 244.8 (26.4 ) (331.5 ) (7.3 ) Increase (decrease) in cash and cash equivalents $ (2.0 ) $ (2.7 ) $ 245.1 $ — $ 240.4 Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Balance Sheets December 31, 2017 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ 2.1 $ 13.5 $ 126.0 $ — $ 141.6 Accounts receivable, net 0.2 141.6 403.5 — 545.3 Intercompany notes receivable — — 3,505.6 (3,505.6 ) — Inventories, net — 207.9 968.2 — 1,176.1 Prepaid expenses and other current assets 6.6 4.5 41.6 — 52.7 Total current assets 8.9 367.5 5,044.9 (3,505.6 ) 1,915.7 Property, plant and equipment, net 0.9 1,581.6 913.2 — 2,495.7 Goodwill — — 531.4 — 531.4 Intercompany notes receivable — — 200.0 (200.0 ) — Investments in subsidiaries 5,645.6 37.7 — (5,683.3 ) — Other assets 25.4 18.0 199.2 — 242.6 Total assets $ 5,680.8 $ 2,004.8 $ 6,888.7 $ (9,388.9 ) $ 5,185.4 Liabilities and stockholders’ equity: Accounts payable $ 3.0 $ 180.3 $ 236.8 $ — $ 420.1 Accrued liabilities 54.1 88.5 139.8 — 282.4 Intercompany notes payable 1,836.5 1,669.1 — (3,505.6 ) — Short-term debt and current portion of long-term debt 0.3 0.6 9.2 — 10.1 Total current liabilities 1,893.9 1,938.5 385.8 (3,505.6 ) 712.6 Long-term debt 1,275.7 150.7 104.2 — 1,530.6 Intercompany notes payable — 200.0 — (200.0 ) — Accrued postretirement benefits — 250.2 67.6 — 317.8 Pension liabilities 644.3 4.4 48.3 — 697.0 Deferred income taxes 9.7 — — — 9.7 Other long-term liabilities 12.7 17.2 43.3 — 73.2 Total liabilities 3,836.3 2,561.0 649.2 (3,705.6 ) 3,340.9 Total stockholders’ equity (deficit) 1,844.5 (556.2 ) 6,239.5 (5,683.3 ) 1,844.5 Total liabilities and stockholders’ equity $ 5,680.8 $ 2,004.8 $ 6,888.7 $ (9,388.9 ) $ 5,185.4 Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Operations For the year ended December 31, 2017 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,178.9 $ 2,346.2 $ — $ 3,525.1 Cost of sales 14.6 1,085.5 1,928.0 — 3,028.1 Gross profit (loss) (14.6 ) 93.4 418.2 — 497.0 Selling and administrative expenses 86.6 36.9 124.5 — 248.0 Impairment of goodwill — — 114.4 — 114.4 Operating income (loss) (101.2 ) 56.5 179.3 — 134.6 Nonoperating retirement benefit expense (32.2 ) (18.7 ) (3.4 ) — (54.3 ) Interest income (expense), net (155.8 ) (90.0 ) 112.0 — (133.8 ) Debt extinguishment charge (37.0 ) — — — (37.0 ) Other income (expense) including equity in income of unconsolidated subsidiaries 239.7 1.6 2.4 (239.7 ) 4.0 Income (loss) before income taxes (86.5 ) (50.6 ) 290.3 (239.7 ) (86.5 ) Income tax provision (benefit) (6.8 ) (16.6 ) 131.4 (114.8 ) (6.8 ) Net income (loss) (79.7 ) (34.0 ) 158.9 (124.9 ) (79.7 ) Less: Net income attributable to noncontrolling interest — — 12.2 — 12.2 Net income (loss) attributable to ATI $ (79.7 ) $ (34.0 ) $ 146.7 $ (124.9 ) $ (91.9 ) Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Comprehensive Income (Loss) For the year ended December 31, 2017 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (79.7 ) $ (34.0 ) $ 158.9 $ (124.9 ) $ (79.7 ) Other comprehensive income (loss) Currency translation adjustment arising during the period 39.1 — 39.1 (39.1 ) 39.1 Net derivative gain on hedge transactions 7.1 — — — 7.1 Pension and postretirement benefits 27.3 (5.8 ) (10.7 ) 16.5 27.3 Other comprehensive income (loss), net of tax 73.5 (5.8 ) 28.4 (22.6 ) 73.5 Comprehensive income (loss) (6.2 ) (39.8 ) 187.3 (147.5 ) (6.2 ) Less: Comprehensive income attributable to noncontrolling interest — — 19.8 — 19.8 Comprehensive income (loss) attributable to ATI $ (6.2 ) $ (39.8 ) $ 167.5 $ (147.5 ) $ (26.0 ) Condensed Statements of Cash Flows For the year ended December 31, 2017 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ (78.8 ) $ (101.5 ) $ 214.7 $ (12.0 ) $ 22.4 Investing Activities: Purchases of property, plant and equipment (0.9 ) (38.5 ) (83.3 ) — (122.7 ) Net receipts (payments) on intercompany activity — — (223.9 ) 223.9 — Asset disposals and other — 0.1 3.0 — 3.1 Cash flows provided by (used in) investing activities (0.9 ) (38.4 ) (304.2 ) 223.9 (119.6 ) Financing Activities: Borrowings on long-term debt — — 8.5 — 8.5 Payments on long-term debt and capital leases (350.4 ) (0.3 ) (2.3 ) — (353.0 ) Net borrowings under credit facilities — — 1.6 — 1.6 Debt issuance costs — — (0.8 ) — (0.8 ) Debt extinguishment charge (35.8 ) — — — (35.8 ) Net receipts (payments) on intercompany activity 72.7 151.2 — (223.9 ) — Issuance of common stock 397.8 — — — 397.8 Dividends paid to stockholders — — (12.0 ) 12.0 — Dividends paid to noncontrolling interests — — (8.0 ) — (8.0 ) Sale of noncontrolling interests — — 3.7 — 3.7 Shares repurchased for income tax withholding on share-based compensation and other (4.8 ) — — — (4.8 ) Cash flows provided by (used in) financing activities 79.5 150.9 (9.3 ) (211.9 ) 9.2 Increase (decrease) in cash and cash equivalents $ (0.2 ) $ 11.0 $ (98.8 ) $ — $ (88.0 ) Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Operations For the year ended December 31, 2016 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 983.6 $ 2,151.0 $ — $ 3,134.6 Cost of sales 18.6 1,080.2 1,813.0 — 2,911.8 Gross profit (loss) (18.6 ) (96.6 ) 338.0 — 222.8 Selling and administrative expenses 84.5 31.7 124.6 — 240.8 Restructuring charges — 21.7 502.1 — 523.8 Operating loss (103.1 ) (150.0 ) (288.7 ) — (541.8 ) Nonoperating retirement benefit expense (40.2 ) (25.8 ) (4.6 ) — (70.6 ) Interest income (expense), net (138.3 ) (70.7 ) 85.0 — (124.0 ) Other income (expense) including equity in income of unconsolidated subsidiaries (452.4 ) 1.0 1.4 452.4 2.4 Income (loss) before income taxes (734.0 ) (245.5 ) (206.9 ) 452.4 (734.0 ) Income tax provision (benefit) (106.9 ) (85.5 ) (66.7 ) 152.2 (106.9 ) Net income (loss) (627.1 ) (160.0 ) (140.2 ) 300.2 (627.1 ) Less: Net income attributable to noncontrolling interest — — 13.8 — 13.8 Net income (loss) attributable to ATI $ (627.1 ) $ (160.0 ) $ (154.0 ) $ 300.2 $ (640.9 ) Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Comprehensive Income (Loss) For the year ended December 31, 2016 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (627.1 ) $ (160.0 ) $ (140.2 ) $ 300.2 $ (627.1 ) Other comprehensive income (loss) Currency translation adjustment arising during the period (47.1 ) — (47.1 ) 47.1 (47.1 ) Net derivative gain on hedge transactions 19.6 — — — 19.6 Pension and postretirement benefits (61.4 ) 17.2 1.8 (19.0 ) (61.4 ) Other comprehensive income (loss), net of tax (88.9 ) 17.2 (45.3 ) 28.1 (88.9 ) Comprehensive income (loss) (716.0 ) (142.8 ) (185.5 ) 328.3 (716.0 ) Less: Comprehensive income attributable to noncontrolling interest — — 4.1 — 4.1 Comprehensive income (loss) attributable to ATI $ (716.0 ) $ (142.8 ) $ (189.6 ) $ 328.3 $ (720.1 ) Condensed Statements of Cash Flows For the year ended December 31, 2016 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ (78.5 ) $ (232.3 ) $ 291.1 $ (24.0 ) $ (43.7 ) Investing Activities: Purchases of property, plant and equipment (0.5 ) (98.7 ) (103.0 ) — (202.2 ) Net receipts (payments) on intercompany activity — — (160.0 ) 160.0 — Asset disposals and other — 0.2 2.0 — 2.2 Cash flows provided by (used in) investing activities (0.5 ) (98.5 ) (261.0 ) 160.0 (200.0 ) Financing Activities: Borrowings on long-term debt 287.5 — 100.0 — 387.5 Payments on long-terms debt and capital leases (0.7 ) (0.2 ) (1.8 ) — (2.7 ) Net borrowings under credit facilities — — 3.1 — 3.1 Debt issuance costs (9.4 ) — (1.0 ) — (10.4 ) Net receipts (payments) on intercompany activity (170.7 ) 330.7 — (160.0 ) — Dividends paid to stockholders (25.8 ) — (24.0 ) 24.0 (25.8 ) Dividends paid to noncontrolling interests — — (16.0 ) — (16.0 ) Acquisition of noncontrolling interest — — (12.2 ) — (12.2 ) Cash flows provided by (used in) financing activities 80.9 330.5 48.1 (136.0 ) 323.5 Increase (decrease) in cash and cash equivalents $ 1.9 $ (0.3 ) $ 78.2 $ — $ 79.8 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Rental expense under operating leases was $24.4 million in 2018 , $21.1 million in 2017 , and $22.6 million in 2016 . Future minimum rental commitments under operating leases with non-cancelable terms of more than one year at December 31, 2018 , were as follows: $20.4 million in 2019 , $17.9 million in 2020 , $16.6 million in 2021 , $14.2 million in 2022 , $10.1 million in 2023 and $16.4 million thereafter. Commitments for expenditures on property, plant and equipment at December 31, 2018 were approximately $60.4 million . The Company is subject to various domestic and international environmental laws and regulations that govern the discharge of pollutants and disposal of wastes, and which may require that it investigate and remediate the effects of the release or disposal of materials at sites associated with past and present operations. The Company could incur substantial cleanup costs, fines, and civil or criminal sanctions, third party property damage or personal injury claims as a result of violations or liabilities under these laws or noncompliance with environmental permits required at its facilities. The Company is currently involved in the investigation and remediation of a number of its current and former sites, as well as third party sites. Environmental liabilities are recorded when the Company’s liability is probable and the costs are reasonably estimable. In many cases, however, the Company is not able to determine whether it is liable or, if liability is probable, to reasonably estimate the loss or range of loss. Estimates of the Company’s liability remain subject to additional uncertainties, including the nature and extent of site contamination, available remediation alternatives, the extent of corrective actions that may be required, and the number, participation, and financial condition of other potentially responsible parties (PRPs). The Company adjusts its accruals to reflect new information as appropriate. Future adjustments could have a material adverse effect on the Company’s consolidated results of operations in a given period, but the Company cannot reliably predict the amounts of such future adjustments. At December 31, 2018 , the Company’s reserves for environmental remediation obligations totaled approximately $20 million , of which $8 million was included in other current liabilities. The increase in the reserves in 2018 compared to the $12 million of reserves in 2017 was largely a result of the pre-funding of obligations from other responsible parties to ATI. The reserve includes estimated probable future costs of $3 million for federal Superfund and comparable state-managed sites; $16 million for formerly owned or operated sites for which the Company has remediation or indemnification obligations; and $1 million for owned or controlled sites at which Company operations have been discontinued. The Company continues to evaluate whether it may be able to recover a portion of 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 the costs for active matters may exceed the Company’s recorded reserves by as much as $16 million . Future investigation or remediation activities may result in the discovery of additional hazardous materials, potentially higher levels of contamination than discovered during prior investigation, and may impact costs of the success or lack thereof in remedial solutions. Therefore, future developments, administrative actions or liabilities relating to environmental matters could have a material adverse effect on the Company’s consolidated financial condition or results of operations. The timing of expenditures depends on a number of factors that vary by site. The Company expects that it will expend present accruals over many years and that remediation of all sites with which it has been identified will be completed within thirty years. A number of other lawsuits, claims and proceedings have been or may be asserted against the Company relating to the conduct of its currently and formerly owned businesses, including those pertaining to product liability, patent infringement, commercial, government contracting, construction, employment, employee and retiree benefits, taxes, environmental, health and safety, 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 consolidated 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. |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Quarter Ended (In millions, except per share amounts) March 31 June 30 September 30 December 31 2018 - Sales $ 979.0 $ 1,009.5 $ 1,020.2 $ 1,037.9 Gross Profit 148.6 173.7 160.4 147.6 Net income 60.5 75.6 55.6 45.0 Net income attributable to ATI 58.0 72.8 50.5 41.1 Basic income attributable to ATI per common share $ 0.46 $ 0.58 $ 0.40 $ 0.33 Diluted income attributable to ATI per common share $ 0.42 $ 0.52 $ 0.37 $ 0.30 Average shares outstanding 125.7 125.7 125.7 125.7 2017 - Sales $ 865.9 $ 880.2 $ 869.1 $ 909.9 Gross Profit 124.8 124.3 105.3 142.6 Net income (loss) 21.1 13.4 (119.4 ) 5.2 Net income (loss) attributable to ATI 17.5 10.1 (121.2 ) 1.7 Basic income (loss) attributable to ATI per common share $ 0.16 $ 0.09 $ (1.12 ) $ 0.01 Diluted income (loss) attributable to ATI per common share $ 0.16 $ 0.09 $ (1.12 ) $ 0.01 Average shares outstanding 108.8 108.9 108.9 118.6 Quarterly earnings per share amounts above may not add to year-to-date amounts due to rounding as well as the impact of dilutive securities for each individual quarterly period versus the year-to-date period. Gross profit amounts for 2017 have been restated as a result of the retrospective application of changes to the accounting for defined benefit pension and other postretirement benefit expenses adopted by the Company in 2018 (see Note 1). First quarter 2018 results include a $15.9 million pre-tax ( $14.7 million , net of tax) gain on deconsolidation of A&T Stainless following the sale of a 50% noncontrolling interest and subsequent derecognition. See Note 6 for further explanation. Third quarter 2017 includes a $114.4 million pre-tax ( $113.6 million , net of tax) non-cash goodwill impairment charge for the Company’s Cast Products business. See Note 5 for further explanation. Fourth quarter 2017 includes a $37.0 million pre-tax and net of tax debt extinguishment charge for the full redemption of the $350 million , 9.375% Senior Notes due 2019. Fourth quarter 2017 also includes $4.1 million of tax benefits from the 2017 Tax Cuts and Jobs Act legislation. Fourth quarter 2017 shares outstanding reflect the Company’s issuance of 17 million shares of common stock on November 7, 2017 (see Note 14 for further explanation). Net of tax amounts presented above generally use the effective tax rate for the applicable quarterly period which differs from the effective tax rate for the full year. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies - Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Allegheny Technologies Incorporated and its subsidiaries. The financial results of majority-owned joint ventures are consolidated into the Company’s operating results and financial position, with the minority ownership interest recognized in the consolidated statement of operations as net income attributable to noncontrolling interests, and as equity attributable to the noncontrolling interests within total stockholders’ equity. Investments in which the Company exercises significant influence, but which it does not control (generally a 20% to 50% ownership interest) are accounted for under the equity method of accounting, whereby ATI’s carrying value of the equity method investment on the statement of financial position is the capital investment and any undistributed profit or loss, and is classified in Other (noncurrent) assets. The profit or loss attributable to ATI from equity method investments is included in the results of operations. See Note 6 for further explanation of the Company’s joint ventures. Intercompany accounts and transactions have been eliminated. Unless the context requires otherwise, “Allegheny Technologies,” “ATI” and the “Company” refer to Allegheny Technologies Incorporated and its subsidiaries. |
Use of Estimates | Risks and Uncertainties and Use of Estimates The preparation of consolidated financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. Management believes that the estimates are reasonable. Certain prior year amounts have been reclassified in order to conform with the 2018 presentation. |
Concentration Risks | The Company markets its products to a diverse customer base, principally throughout the United States. No single customer accounted for more than 10% of sales for any year presented. The major end markets for the ATI’s products are customers in the aerospace & defense, oil & gas, electrical energy, automotive, construction and mining, food equipment and appliances, and medical markets. |
Cash Equivalents and Investments | Cash and Cash Equivalents Cash equivalents are highly liquid investments that are readily convertible to cash with original maturities of three months or less. |
Accounts Receivable | Accounts Receivable Accounts receivable are presented net of a reserve for doubtful accounts of $6.0 million and $5.9 million at December 31, 2018 and 2017 , respectively. Trade credit is extended based upon evaluations of each customer’s ability to perform its obligations, which are updated periodically. Accounts receivable reserves are determined based upon an aging of accounts and a review for collectability of specific accounts. Amounts are written-off against the reserve in the period it is determined that the receivable is uncollectible. |
Inventories | Inventories Inventories are stated at the lower of cost (last-in, first-out (LIFO), first-in, first-out (FIFO), and average cost methods) or market. Costs include direct material, direct labor and applicable manufacturing and engineering overhead, and other direct costs. 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 Company evaluates product lines on a quarterly basis to identify inventory carrying values that exceed estimated net realizable value. In applying the lower of cost or market principle, market means current replacement cost, subject to a ceiling (market value shall not exceed net realizable value) and a floor (market shall not be less than net realizable value reduced by an allowance for a normal profit margin). The calculation of a resulting reserve, if any, is recognized as an expense in the period that the need for the reserve is identified. However, in cases where inventory at FIFO cost is lower than the LIFO carrying value, a write-down of the inventory to market may be required, subject to the ceiling and floor. It is the Company’s general policy to write-down to scrap value any inventory that is identified as slow-moving or aged more than twelve months, subject to sales, backlog and anticipated orders considerations. In some instances this aging criterion is up to twenty-four months. |
Long-Lived Assets | Long-Lived Assets Property, plant and equipment are recorded at cost, including capitalized interest, and include long-lived assets acquired under capital leases. Depreciation is primarily recorded using the straight-line method. Property, plant and equipment associated with the Hot-Rolling and Processing Facility (HRPF) in the Flat Rolled Products segment, and the Company’s idled Rowley titanium sponge production facility in the High Performance Materials & Components segment (prior to its indefinite idling in August 2016 - see Note 17 for further explanation), are being depreciated utilizing the units of production method of depreciation, which the Company believes provides a better matching of costs and revenues. The Company periodically reviews estimates of useful life and production capacity assigned to new and in service assets. Significant enhancements, including major maintenance activities that extend the lives of property and equipment, are capitalized. Costs related to repairs and maintenance are charged to expense in the period incurred. The cost and related accumulated depreciation of property and equipment retired or disposed of are removed from the accounts and any related gains or losses are included in income. The Company monitors the recoverability of the carrying value of its long-lived assets. An impairment charge is recognized when an indicator of impairment occurs and the expected net undiscounted future cash flows from an asset’s use (including any proceeds from disposition) are less than the asset’s carrying value and the asset’s carrying value exceeds its fair value. Assets to be disposed of by sale are stated at the lower of their fair values or carrying amounts and depreciation is no longer recognized. |
Goodwill | Goodwill Goodwill is reviewed annually for impairment, or more frequently if impairment indicators arise. The review for goodwill impairment requires a comparison of the fair value of each reporting unit that has goodwill associated with its operations with its carrying amount, including goodwill. If this comparison reflects impairment, then the loss would be measured as the excess of the carrying value over the calculated fair value. Generally accepted accounting standards provide the option to qualitatively assess goodwill for impairment before completing a quantitative assessment. Under the qualitative approach, if, after assessing the totality of events or circumstances, including both macroeconomic, industry and market factors, and entity-specific factors, the Company determines it is likely (more likely than not) that the fair value of a reporting unit is greater than its carrying amount, then the quantitative impairment analysis is not required. The quantitative assessment may be performed each year for a reporting unit at the Company’s option without first performing a qualitative assessment. The Company’s quantitative assessment of goodwill for possible impairment includes estimating the fair market value of a reporting unit which has goodwill associated with its operations using discounted cash flow and multiples of cash earnings valuation techniques, plus valuation comparisons to recent public sale transactions of similar businesses, if any. These impairment assessments and valuation methods require the Company to make estimates and assumptions regarding future operating results, cash flows, changes in working capital and capital expenditures, selling prices, profitability, and the cost of capital. Many of these assumptions are determined by reference to market participants identified by the Company. Although management believes that the estimates and assumptions used were reasonable, actual results could differ from those estimates and assumptions. Other events and changes in circumstances may also require goodwill to be tested for impairment between annual measurement dates. While a decline in stock price and market capitalization is not specifically cited as a goodwill impairment indicator, a company’s stock price and market capitalization should be considered in determining whether it is more likely than not that the fair value of a reporting unit is less that its carrying value. Additionally, a significant decline in a company’s stock price may suggest that an adverse change in the business climate may have caused the fair value of one or more reporting units to fall below carrying value. A sustained decline in market capitalization below book value may be determined to require an interim goodwill impairment review. |
Environmental | Environmental Costs that mitigate or prevent future environmental contamination or extend the life, increase the capacity or improve the safety or efficiency of property utilized in current operations are capitalized. Other costs that relate to current operations or an existing condition caused by past operations are expensed. Environmental liabilities are recorded when the Company’s liability is probable and the costs are reasonably estimable, but generally not later than the completion of the feasibility study or the Company’s recommendation of a remedy or commitment to an appropriate plan of action. The accruals are reviewed periodically and, as investigations and remediations proceed, adjustments of the accruals are made to reflect new information as appropriate. Accruals for losses from environmental remediation obligations do not take into account the effects of inflation, and anticipated expenditures are not discounted to their present value. The accruals are not reduced by possible recoveries from insurance carriers or other third parties, but do reflect allocations among potentially responsible parties (PRPs) at Federal Superfund sites or similar state-managed sites after an assessment is made of the likelihood that such parties will fulfill their obligations at such sites and after appropriate cost-sharing or other agreements are entered. The measurement of environmental liabilities by the Company is based on currently available facts, present laws and regulations, and current technology. Such estimates take into consideration the Company’s prior experience in site investigation and remediation, the data concerning cleanup costs available from other companies and regulatory authorities, and the professional judgment of the Company’s environmental experts in consultation with outside environmental specialists, when necessary. |
Foreign Currency Translation | Foreign Currency Translation Assets and liabilities of international operations are translated into U.S. dollars using year-end exchange rates, while revenues and expenses are translated at average exchange rates during the period. The resulting net translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in stockholders’ equity. |
Sales Recognition | Sales Recognition On January 1, 2018, the Company adopted Accounting Standards Codification Topic 606 (ASC 606), Revenue from Contracts with Customers. This new guidance provides a five-step analysis of transactions to determine when and how revenue is recognized, and requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The following is the Company’s accounting policy as it relates to the five-step analysis for revenue recognition: 1. Identify the contract : The Company has determined that the contract with the customer is established when the customer purchase order is accepted or acknowledged. Long-term agreements (LTAs),which typically extend multiple years, are used by the Company and certain of its customers for its specialty materials, in the form of mill products, powders, parts and components, to reduce their supply uncertainty. While these LTAs generally define commercial terms including pricing, termination clauses and other contractual requirements, they do not represent the contract with the customer. 2. Identify the performance obligation in the contract : When the Company accepts or acknowledges the customer purchase order, the type of good or service is defined on a line by line basis. Individual performance obligations are established by virtue of the individual line items identified on the sales order acknowledgment at the time of issuance. Generally, the Company’s revenue relates to the sale of goods and contains a single performance obligation for each distinct good. Conversion services that transform customer-owned inventory to a different dimension, product form, and/or changed mechanical properties are classified as “goods”. 3. Determine the transaction price : Pricing is also defined on a sales order acknowledgment on a line item basis and includes an estimate of variable consideration when required by the terms of the individual customer contract. Variable consideration is when the selling price of the good is not known, or is subject to adjustment under certain conditions. Types of variable consideration may include volume discounts, customer rebates and surcharges. ATI also provides assurances that goods or services will meet the product specifications contained within the acknowledged customer contract. As such, returns and refunds reserves are estimated based upon past product line history or, at certain locations, on a claim by claim basis. 4. Allocate the transaction price to the performance obligation : Since a customer contract generally contains only one performance obligation, this step of the analysis is generally not applicable to the Company. 5. Recognize revenue when or as the performance obligation is satisfied : Performance obligations generally occur at a point in time and are satisfied when control passes to the customer. For most transactions, control passes at the time of shipment in accordance with agreed upon delivery terms. On occasion, shipping and handling charges occur after the customer obtains control of the good. When this occurs, the shipping and handling services are considered activities to fulfill the promise to transfer the good. This approach is consistent with our revenue recognition approach in prior years. The Company has several customer agreements involving production of parts and components in the High Performance Materials and Components segment that require revenue to be recognized over time due to there being no alternative use for the product without significant economic loss and an enforceable right to payment including a normal profit margin from the customer in the event of contract termination. The Company uses an input method for determining the amount of revenue, and associated standard cost, to recognize over-time revenue, cost and gross margin for these customer agreements. The input methods used for these agreements include costs incurred and labor hours expended, both of which give an accurate representation of the progress made toward complete satisfaction of that particular performance obligation. Contract assets are recognized when ATI’s conditional right to consideration for goods or services have transferred to the customer. A conditional right indicates that additional performance obligations associated with the contract are yet to be satisfied. Contract assets are assessed separately for impairment purposes. If ATI’s right to consideration from the customer is unconditional, this asset is accounted for as a receivable and presented separately from other contract assets. A right is unconditional if nothing other than the passage of time is required before payment of that consideration is due. Performance obligations that are recognized as revenue at a point-in-time and are billed to the customer are recognized as accounts receivable. Payment terms vary from customer to customer depending upon credit worthiness, prior payment history and other credit considerations. Contract costs are the incremental costs of obtaining and fulfilling a contract (i.e., costs that would not have been incurred if the contract had not been obtained) to provide goods and services to customers. Contract costs for ATI largely consist of design and development costs for molds, dies and other tools that ATI will own and that will be used in producing the products under the supply arrangement. Contract costs are classified as non-current assets and amortized to expense on a systematic and rational basis over a period consistent with the transfer to the customer of the goods or services to which the asset relates. Contract liabilities are recognized when ATI has received consideration from a customer to transfer goods or services at a future point in time when the Company performs under the contract. Elements of variable consideration discussed above may be recorded as contract liabilities. In addition, progress billings and advance payments from customers for costs incurred to date are also reported as contract liabilities. |
Research and Development | Research and Development Our research, development and technical service activities are closely interrelated and are directed toward development of new products, improvement of existing products, cost reduction, process improvement and control, quality assurance and control, development of new manufacturing methods, and improvement of existing manufacturing methods. Research and development costs are expensed as incurred. Company funded research and development costs were $22.7 million in 2018 , $13.3 million in 2017 , and $14.7 million in 2016 . Customer funded research and development costs were $2.2 million in 2018 , $1.4 million in 2017 , and $2.2 million in 2016 . |
Stock-based Compensation | Stock-based Compensation The Company accounts for stock-based compensation transactions, such as nonvested stock and performance equity awards, using fair value. Compensation expense for an award is estimated at the date of grant and is recognized over the requisite service period. Compensation expense is adjusted for equity awards that do not vest because service or performance conditions are not satisfied. However, compensation expense already recognized on plans which vest based solely on the attainment of market conditions, such as total shareholder return measures, is not adjusted based on the award attainment status at the end of the measurement period. Compensation expense is adjusted for estimated forfeitures over the award measurement period. |
Income Taxes | Income Taxes The provision for, or benefit from, income taxes includes deferred taxes resulting from temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback and/or carryforward period available under tax law. The Company evaluates on a quarterly basis whether, based on all available evidence, it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is estimated that it is more likely than not that the tax benefit of the deferred tax asset will not be realized. The evaluation includes the consideration of all available evidence, both positive and negative, regarding the estimated future reversals of existing taxable temporary differences, estimated future taxable income exclusive of reversing temporary differences and carryforwards, historical taxable income in prior carryback periods if carryback is permitted, and potential tax planning strategies which may be employed to prevent an operating loss or tax credit carryforward from expiring unused. The verifiable evidence such as future reversals of existing temporary differences and the ability to carryback are considered before the subjective sources such as estimate future taxable income exclusive of temporary differences and tax planning strategies. It is the Company’s policy to classify interest and penalties recognized on underpayment of income taxes as income tax expense. It is also the Company’s policy to recognize deferred tax amounts stranded in accumulated other comprehensive income (AOCI), which result from tax rate differences on changes in AOCI balances, as an element of income tax expense in the period that the related balance sheet item associated with the AOCI balance ceases to exist. In the case of derivative financial instruments accounted for as hedges, or marketable securities, ATI uses the portfolio method where the stranded deferred tax amount is recognized when all items of a particular category, such as cash flow hedges of a particular risk such as a foreign currency hedge, are settled. In the case of defined benefit pension and other postretirement benefit plans, the stranded deferred tax balance is recognized as an element of income tax expense in the period the benefit plan is extinguished. |
Net Income Per Common Share | Net Income Per Common Share Basic and diluted net income per share are calculated by dividing the net income available to common stockholders by the weighted average number of common shares outstanding during the year. Diluted amounts assume the issuance of common stock for all potentially dilutive share equivalents outstanding. The calculations of all diluted income/loss per share figures for a period exclude the potentially dilutive effect of dilutive share equivalents if there is a net loss since the inclusion in the calculation of additional shares in the net loss per share would result in a lower per share loss and therefore be anti-dilutive. |
New Accounting Pronouncements Adopted | New Accounting Pronouncements Adopted In January 2018, the Company adopted changes issued by the Financial Accounting Standards Board (FASB) related to revenue recognition with customers. See Note 2 for further explanation related to this adoption, including all newly expanded disclosure requirements. In January 2018, the Company adopted changes issued by the FASB related to changes to the accounting for defined benefit pension and other postretirement benefit expenses. This new guidance requires the disaggregation of the service cost component from the other components of net benefit cost. The service cost component of net benefit cost is now reported in the same line item on the consolidated statement of operations as other compensation costs arising from services rendered by the pertinent employees, while the other components of net benefit cost are now presented in the consolidated statement of operations separately, outside a subtotal of operating income. The amendments also provide explicit guidance to allow only the service cost component of net benefit cost to be eligible for capitalization. With this adoption, the change in presentation of net benefit cost in the consolidated statement of operations was applied retrospectively, and the change in capitalization for only service cost was applied prospectively. The Company adopted this new guidance using the practical expedient that permits the use of the amounts disclosed in the retirement benefits footnote for the prior comparative periods as the estimation basis for applying the retrospective presentation requirements. This required accounting change did have a material impact to previously-reported operating income (loss) in the consolidated statement of operations due to the change in presentation of non-service cost expense components. For the fiscal years of 2017 and 2016, applying the practical expedient, operating results were higher by $54.3 million and $70.6 million , respectively, with the reclassification of this amount representing the other components of net benefit cost to a newly-created nonoperating retirement benefit expense category. There was no net impact to the reported results before income taxes as a result of this accounting change. This change in presentation of net benefit cost did not affect ATI’s measure of segment operating profit; all defined benefit pension and other postretirement benefit expense attributable to business segment operations remains a component of business segment financial performance. The Company did have a one-time, unfavorable impact of $5.4 million to pre-tax reported results in 2018 upon adoption, primarily affecting the Flat Rolled Products business segment, due to the change limiting only the service cost component of net benefit cost to be capitalizable into inventory. In January 2018, the Company early adopted changes issued by the FASB related to changes to its accounting guidance for derivatives and hedging, which changes both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results. Some changes resulting from this new guidance include the elimination of the concept of recognizing periodic hedge ineffectiveness for cash flow hedges, changes to the recognition and presentation of changes in the fair value of the hedging instrument, enhancement of the ability to use the critical-terms-match method for the cash flow hedge of groups of forecasted transactions when the timing of the hedged transactions does not perfectly match the hedging instrument’s maturity date, and the addition of new disclosure requirements and amendments to existing ones. The Company applied this new guidance to hedging relationships existing on January 1, 2018, the date of adoption. The adoption of these changes did not have a material impact on the Company’s financial statements, and disclosures in Note 10 reflect the requirements of this adoption. In February 2018, the FASB issued limited changes to accounting standards to address the income tax accounting for certain provisions of the Tax Cuts and Jobs Act (the “Tax Act”). Accounting standards require the effect of a change in tax laws or rates on deferred tax assets and liabilities to be included in income from continuing operations in the reporting period that the change was enacted, including tax effects that were initially recognized directly in other comprehensive income at the previous rate. This results in stranded amounts in AOCI related to the income tax rate differential, as the net-of-tax AOCI balance is not adjusted for the tax rate change. This new accounting guidance provides the option to make a one-time reclassification from AOCI to retained earnings for stranded tax effects resulting from the newly enacted U.S. federal tax rate under the Tax Act, calculated on the basis of the difference between the historical and newly enacted U.S. federal tax rate on deferred tax assets and liabilities related to items within AOCI. ATI adopted this new accounting guidance in 2018, electing not to make the one-time reclassification. In August 2018, the FASB issued new accounting guidance for implementation costs incurred in a cloud computing arrangement that is a service contract. This guidance specifies which implementation costs can be capitalized in a hosting arrangement that is a service contract. The guidance aligns the accounting for implementation costs for hosting arrangements, regardless of whether they convey a license to the hosted software. This guidance is required to be adopted either retrospectively or prospectively by the Company beginning in fiscal year 2020 with early adoption permitted, including adoption in any interim period. The Company early adopted this guidance in 2018 on a retrospective basis, which did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued new disclosure guidance for defined benefit plans, which modified certain required disclosures. This guidance is required to be adopted retrospectively by the Company beginning in fiscal year 2021, with early adoption permitted. The Company early adopted this guidance in 2018, which did not have an impact on the Company’s consolidated financial statements other than disclosures. |
New Accounting Pronouncements Not yet Adopted | Pending Accounting Pronouncements In February 2016, the FASB issued new accounting guidance for leases. This new guidance will require that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than twelve months, with the result being the recognition of a right of use asset and a lease liability. The new lease accounting requirements are effective for ATI’s 2019 fiscal year, and management has adopted the standard effective January 1, 2019, electing the alternative transition method, which does not require the restatement of prior years. Management has elected the package of practical expedients, which allows entities to not reassess (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. Management has also elected the practical expedient to not separate lease components from non-lease components, and will not be electing the hindsight practical expedient to determine the lease term. Management has made an accounting policy election to apply the short-term lease exception, which does not require the capitalization of leases with terms of 12 months or less. The Company has completed the process of evaluating its existing lease portfolio, including accumulating all of the necessary information required to properly account for the leases under the new standard. In addition, ATI has implemented a company-wide lease management system to assist in the accounting and has implemented additional changes to its processes and internal controls to ensure the standard’s reporting and disclosure requirements are met. The Company will recognize approximately $52 million of right of use assets and approximately $56 million of lease liabilities on its consolidated balance sheet on January 1, 2019 for operating leases as a result of this adoption. The adoption will not have a material impact on the Company’s results of operations or cash flows, but will result in increased financial statement footnote disclosures in 2019 regarding leases. In August 2018, the FASB issued new disclosure guidance on fair value measurement. This new guidance modifies the disclosure requirements on fair value measurements, including removal and modifications of various current disclosures as well as some additional disclosure requirements for Level 3 fair value measurements. Some of these disclosure changes must be applied prospectively while others retrospectively depending on requirement. This guidance is required to be adopted by the Company beginning in fiscal year 2020 with early adoption permitted. The Company does not plan to early adopt this guidance. The adoption of these changes is not expected to have an impact on the Company’s consolidated financial statements other than disclosures. |
Asset Retirement Obligations | Asset Retirement Obligations The Company maintains reserves where a legal obligation exists to perform an asset retirement activity and the fair value of the liability can be reasonably estimated. These asset retirement obligations (AROs) include liabilities where the timing and (or) method of settlement may be conditional on a future event, that may or may not be within the control of the entity. At December 31, 2018 , the Company had recognized AROs of $23.1 million related to landfill closures, decommissioning costs, facility leases and conditional AROs associated with manufacturing activities using what may be characterized as potentially hazardous materials. Estimates of AROs are evaluated annually in the fourth quarter, or more frequently if material new information becomes known. Accounting for asset retirement obligations requires significant estimation and in certain cases, the Company has determined that an ARO exists, but the amount of the obligation is not reasonably estimable. The Company may determine that additional AROs are required to be recognized as new information becomes available. |
Derivative Financial Instruments and Hedging | Derivative Financial Instruments and Hedging As part of its risk management strategy, the Company, from time-to-time, utilizes derivative financial instruments to manage its exposure to changes in raw material prices, energy costs, foreign currencies, and interest rates. In accordance with applicable accounting standards, the Company accounts for most of these contracts as hedges. In January 2018, the Company early adopted changes issued by the FASB related to accounting guidance for derivatives and hedging, which includes, among other things, the elimination of the concept of recognizing periodic hedge ineffectiveness for cash flow hedges. The Company sometimes uses futures and swap contracts to manage exposure to changes in prices for forecasted purchases of raw materials, such as nickel, and natural gas. Under these contracts, which are generally accounted for as cash flow hedges, the price of the item being hedged is fixed at the time that the contract is entered into and the Company is obligated to make or receive a payment equal to the net change between this fixed price and the market price at the date the contract matures. The majority of ATI’s products are sold utilizing raw material surcharges and index mechanisms. However, as of December 31, 2018 , 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 12 million pounds of nickel with hedge dates through 2023 . The aggregate notional amount hedged is approximately 12% of a single year’s estimated nickel raw material purchase requirements. At December 31, 2018 , the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges. During the fiscal year ended December 31, 2016, due to changes in expected operating levels, the Company concluded that portions of these natural gas cash flow hedges for 2016 and the first quarter 2017 were ineffective based on forecast changes in underlying natural gas usage. The Company recognized a $1.3 million pre-tax loss for the ineffective portion of these cash flow hedges for the year ended December 31, 2016, which is reported in selling and administrative expenses on the consolidated statement of operations. At December 31, 2018 , the company hedged approximately 60% of the Company’s annual forecasted domestic requirements for natural gas for 2019 and approximately 40% for 2020. 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. In addition, the Company may also designate cash balances held in foreign currencies as hedges of forecasted foreign currency transactions. At December 31, 2018, the Company held euro forward sales contracts designated as cash flow hedges with a notional value of approximately 9 million euro with maturity dates through May 2019. In 2015, the Company entered into 244.7 million euro notional value of foreign currency forward contracts designated as fair value hedges with 2016 and 2017 maturity dates. The Company recorded $2.7 million of charges during the fiscal year ended December 31, 2017 and $1.0 million of benefits during the fiscal year ended December 31, 2016 in costs of sales on the consolidated statement of operations for maturities and mark-to-market changes on these fair value hedges. There were no outstanding fair value hedges as of December 31, 2018 and 2017. The Company may enter into derivative interest rate contracts to maintain a reasonable balance between fixed- and floating-rate debt. In July 2018, the Company entered into a $50 million floating-for-fixed interest rate swap which converts half of the Term Loan to a 5.44% fixed interest rate. The Company designated the interest rate swap as a cash flow hedge of the Company’s exposure to the variability of the payment of interest on a portion of its Term Loan borrowings. The swap matures in January 2021. There are no credit risk-related contingent features in the Company’s derivative contracts, and the contracts contained no provisions under which the Company has posted, or would be required to post, collateral. The counterparties to the Company’s derivative contracts were substantial and creditworthy commercial banks that are recognized market makers. The Company controls its credit exposure by diversifying across multiple counterparties and by monitoring credit ratings and credit default swap spreads of its counterparties. The Company also enters into master netting agreements with counterparties when possible. For derivative financial instruments that are designated as cash flow hedges, the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged item affects earnings. For derivative financial instruments that are designated as fair value hedges, changes in the fair value of these derivatives are recognized in current period results and are reported as changes within accrued liabilities and other on the consolidated statements of cash flows. The Company did not use net investment hedges for the periods presented. The effects of derivative instruments in the tables below are presented net of related income taxes, excluding any impacts of changes to income tax valuation allowances affecting results of operations or other comprehensive income, when applicable (see Note 13 for further explanation). |
Pension Plans and Other Postretirement Benefits | The Company has defined contribution retirement plans or defined benefit pension plans covering substantially all employees. Company contributions to defined contribution retirement plans are generally based on a percentage of eligible pay or based on hours worked. Benefits under the defined benefit pension plans are generally based on years of service and/or final average pay. The Company also sponsors several postretirement plans covering certain collectively-bargained salaried and hourly employees. The plans provide health care and life insurance benefits for eligible retirees. In most retiree health care plans, Company contributions towards premiums are capped based on the cost as of a certain date, thereby creating a defined contribution. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Comparative information of the Company’s overall revenues (in millions) by global and geographical markets for the fiscal years ended December 31, 2018 , 2017 and 2016 were as follows: (in millions) 2018 2017 2016 HPMC FRP Total HPMC FRP Total HPMC FRP Total Diversified Global Markets: Aerospace & Defense $ 1,771.3 $ 194.2 $ 1,965.5 $ 1,568.9 $ 149.2 $ 1,718.1 $ 1,439.2 $ 151.2 $ 1,590.4 Oil & Gas 74.9 471.3 546.2 63.9 354.3 418.2 46.5 234.3 280.8 Automotive 9.5 313.9 323.4 8.8 264.9 273.7 7.6 225.2 232.8 Food Equipment & Appliances 0.4 244.5 244.9 1.1 224.9 226.0 1.8 170.4 172.2 Electrical Energy 131.4 103.1 234.5 113.1 79.1 192.2 129.1 103.5 232.6 Construction/Mining 72.8 153.2 226.0 51.1 141.8 192.9 36.7 123.9 160.6 Medical 168.5 14.6 183.1 170.4 12.6 183.0 185.3 10.5 195.8 Electronics/Computers/Communications 7.9 149.0 156.9 4.4 147.2 151.6 3.4 106.3 109.7 Other 97.5 68.6 166.1 85.7 83.7 169.4 80.8 78.9 159.7 Total $ 2,334.2 $ 1,712.4 $ 4,046.6 $ 2,067.4 $ 1,457.7 $ 3,525.1 $ 1,930.4 $ 1,204.2 $ 3,134.6 (in millions) 2018 2017 2016 HPMC FRP Total HPMC FRP Total HPMC FRP Total Primary Geographical Market: United States $ 1,214.1 $ 1,134.0 $ 2,348.1 $ 1,096.5 $ 974.1 $ 2,070.6 $ 1,057.3 $ 800.2 $ 1,857.5 China 83.1 236.9 320.0 51.1 214.5 265.6 57.8 156.3 214.1 Germany 192.7 54.5 247.2 170.5 46.6 217.1 137.4 40.3 177.7 United Kingdom 232.4 9.7 242.1 220.9 10.7 231.6 171.1 12.7 183.8 Japan 136.5 78.4 214.9 95.2 36.5 131.7 113.4 38.5 151.9 France 172.7 10.9 183.6 157.8 7.8 165.6 134.9 7.7 142.6 Rest of World 302.7 188.0 490.7 275.4 167.5 442.9 258.5 148.5 407.0 Total $ 2,334.2 $ 1,712.4 $ 4,046.6 $ 2,067.4 $ 1,457.7 $ 3,525.1 $ 1,930.4 $ 1,204.2 $ 3,134.6 Comparative information of the Company’s major high-value and standard products based on their percentages of sales is included in the following table. FRP conversion services are excluded from this presentation. 2018 2017 2016 HPMC FRP Total HPMC FRP Total HPMC FRP Total Diversified Products: High-Value Products Nickel-based alloys and specialty alloys 31 % 28 % 30 % 31 % 24 % 28 % 29 % 25 % 28 % Precision forgings, castings and components 34 % — % 20 % 32 % — % 19 % 29 % — % 18 % Titanium and titanium-based alloys 25 % 5 % 17 % 26 % 5 % 17 % 29 % 4 % 20 % Precision and engineered strip — % 33 % 14 % — % 34 % 14 % — % 36 % 13 % Zirconium and related alloys 10 % — % 5 % 11 % — % 6 % 13 % — % 8 % Total High-Value Products 100 % 66 % 86 % 100 % 63 % 84 % 100 % 65 % 87 % Standard Products Stainless steel sheet — % 20 % 8 % — % 21 % 9 % — % 19 % 7 % Specialty stainless sheet — % 10 % 4 % — % 12 % 5 % — % 11 % 4 % Stainless steel plate and other — % 4 % 2 % — % 4 % 2 % — % 5 % 2 % Total Standard Products — % 34 % 14 % — % 37 % 16 % — % 35 % 13 % Total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % |
Schedule of Accounts Receivable - Reserve for Doubtful Accounts | The following represents the rollforward of accounts receivable - reserve for doubtful accounts for the fiscal years ended December 31, 2018 , 2017 and 2016: (in millions) Accounts Receivable - Reserve for Doubtful Accounts Balance as of December 31, 2015 $ 4.5 Expense to increase the reserve 4.8 Write-off of uncollectible accounts (2.0 ) Balance as of December 31, 2016 7.3 Expense to increase the reserve 0.1 Write-off of uncollectible accounts (1.5 ) Balance as of December 31, 2017 5.9 Expense to increase the reserve 1.9 Write-off of uncollectible accounts (1.8 ) Balance as of December 31, 2018 $ 6.0 |
Schedule of Contract Assets and Liabilities | The following represents the rollforward of contract assets and liabilities for the fiscal year ended December 31, 2018 : (in millions) Contract Assets Short-term Balance as of January 1, 2018 $ 36.5 Recognized in current year 92.9 Reclassified to accounts receivable (95.8 ) Impairment — Reclassification to/from long-term 16.8 Other 0.8 Balance as of December 31, 2018 $ 51.2 Long-term Balance as of January 1, 2018 $ 16.9 Recognized in current year — Reclassified to accounts receivable — Impairment — Reclassification to/from short-term (16.8 ) Balance as of December 31, 2018 $ 0.1 (in millions) Contract Liabilities Short-term Balance as of January 1, 2018 $ 69.7 Recognized in current year 76.7 Amounts in beginning balance reclassified to revenue (49.6 ) Current year amounts reclassified to revenue (42.7 ) Other 2.7 Reclassification to/from long-term 14.6 Balance as of December 31, 2018 $ 71.4 Long-term Balance as of January 1, 2018 $ 22.2 Recognized in current year 0.7 Amounts in beginning balance reclassified to revenue (1.0 ) Current year amounts reclassified to revenue — Other — Reclassification to/from short-term (14.6 ) Balance as of December 31, 2018 $ 7.3 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories at December 31, 2018 and 2017 were as follows (in millions): 2018 2017 Raw materials and supplies $ 191.5 $ 162.8 Work-in-process 914.1 955.5 Finished goods 191.1 165.0 Total inventories at current cost 1,296.7 1,283.3 Adjustment from current cost to LIFO cost basis 2.9 43.1 Inventory valuation reserves (88.5 ) (121.5 ) Progress payments — (28.8 ) Total inventories, net $ 1,211.1 $ 1,176.1 |
Schedule of Inventory Valuation Impact on Income | Fiscal year ended December 31, 2018 2017 2016 LIFO benefit (charge) $ (28.6 ) $ (54.2 ) $ (39.1 ) NRV benefit (charge) 27.9 54.0 39.9 Net cost of sales impact $ (0.7 ) $ (0.2 ) $ 0.8 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property plant and equipment, net | Property, plant and equipment at December 31, 2018 and 2017 was as follows: (In millions) 2018 2017 Land $ 31.5 $ 31.7 Buildings 851.7 844.5 Equipment and leasehold improvements 3,622.7 3,597.6 4,505.9 4,473.8 Accumulated depreciation and amortization (2,030.9 ) (1,978.1 ) Total property, plant and equipment, net $ 2,475.0 $ 2,495.7 |
Schedule depreciation and amortization | Depreciation and amortization for the years ended December 31, 2018 , 2017 and 2016 was as follows: (In millions) 2018 2017 2016 Depreciation of property, plant and equipment $ 131.9 $ 135.2 $ 141.9 Software and other amortization 24.5 25.6 28.4 Total depreciation and amortization $ 156.4 $ 160.8 $ 170.3 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Other intangible assets, which are included in Other assets on the accompanying consolidated balance sheets as of December 31, 2018 and 2017 were as follows: December 31, 2018 December 31, 2017 (in millions) Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Technology $ 93.4 $ (31.9 ) $ 91.4 $ (27.4 ) Customer relationships 35.7 (10.6 ) 35.7 (9.1 ) Trademarks 64.6 (21.5 ) 64.6 (17.2 ) Total amortizable intangible assets $ 193.7 $ (64.0 ) $ 191.7 $ (53.7 ) |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of changes in asset retirement obligations | Changes in asset retirement obligations for the years ended December 31, 2018 and 2017 were as follows: (In millions) 2018 2017 Balance at beginning of year $ 23.5 $ 23.3 Accretion expense 0.8 0.8 Payments (1.2 ) (0.7 ) Revision of estimates — 0.1 Balance at end of year $ 23.1 $ 23.5 |
Supplemental Financial Statem_2
Supplemental Financial Statement Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Additional Financial Information Disclosure [Abstract] | |
Schedule of cash and cash equivalents | Cash and cash equivalents at December 31, 2018 and 2017 were as follows: (In millions) 2018 2017 Cash $ 264.4 $ 140.2 Other short-term investments 117.6 1.4 Total cash and cash equivalents $ 382.0 $ 141.6 |
Schedule of other non-operating income (expense) | Other income (expense) for the years ended December 31, 2018 , 2017 , and 2016 was as follows: (In millions) 2018 2017 2016 Rent and royalty income $ 3.1 $ 3.5 $ 1.4 Net gains on property and investments 1.3 0.5 1.0 Net equity loss on joint ventures (See Note 6) (1.0 ) — — Gain on joint venture deconsolidation (See Note 6) 15.9 — — Other 1.2 — — Total other income, net $ 20.5 $ 4.0 $ 2.4 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Debt at December 31, 2018 and 2017 was as follows: (In millions) 2018 2017 Allegheny Technologies $500 million 5.875% Senior Notes due 2023 (a) $ 500.0 $ 500.0 Allegheny Technologies $500 million 5.95% Senior Notes due 2021 500.0 500.0 Allegheny Technologies $287.5 million 4.75% Convertible Senior Notes due 2022 287.5 287.5 Allegheny Ludlum 6.95% Debentures due 2025 150.0 150.0 Term Loan due 2022 100.0 100.0 U.S. revolving credit facility — — Foreign credit agreements — 6.3 Other 15.0 10.0 Debt issuance costs (10.4 ) (13.1 ) Total short-term and long-term debt 1,542.1 1,540.7 Short-term debt and current portion of long-term debt 6.6 10.1 Total long-term debt $ 1,535.5 $ 1,530.6 (a) Bearing interest at 7.875% effective February 15, 2016. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of derivative instruments | The fair values of the Company’s derivative financial instruments are presented below, representing the gross amounts recognized which are not offset by counterpart or by type of item hedged. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy, which includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs derived principally from or corroborated by observable market data. (In millions) December 31, December 31, Asset derivatives Balance sheet location Derivatives designated as hedging instruments: Natural gas contracts Prepaid expenses and other current assets $ 0.8 $ 0.1 Nickel and other raw material contracts Prepaid expenses and other current assets 1.2 10.5 Natural gas contracts Other assets 0.2 0.3 Nickel and other raw material contracts Other assets 0.8 5.5 Total derivatives designated as hedging instruments 3.0 16.4 Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets 0.4 0.1 Total derivatives not designated as hedging instruments: 0.4 0.1 Total asset derivatives $ 3.4 $ 16.5 Liability derivatives Balance sheet location Derivatives designated as hedging instruments: Interest rate swap Accrued liabilities $ 0.2 $ — Foreign exchange contracts Accrued liabilities 0.6 — Natural gas contracts Accrued liabilities 0.1 0.9 Nickel and other raw material contracts Accrued liabilities 6.8 2.1 Interest rate swap Other long-term liabilities 0.3 — Natural gas contracts Other long-term liabilities 0.3 0.3 Nickel and other raw material contracts Other long-term liabilities 2.1 2.2 Total derivatives designated as hedging instruments 10.4 5.5 Total liability derivatives $ 10.4 $ 5.5 |
Schedule of derivative instruments gain (loss) | Activity with regard to derivatives designated as cash flow hedges for the years ended December 31, 2018 and 2017 were as follows (in millions): Derivatives in Cash Flow Hedging Relationships Amount of Gain (Loss) Recognized in OCI on Derivatives Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) 2018 2017 2018 2017 Nickel and other raw material contracts $ (6.4 ) $ 14.1 $ 7.7 $ (2.1 ) Natural gas contracts 1.5 (2.8 ) 0.4 (3.3 ) Foreign exchange contracts 0.5 (0.2 ) 1.0 9.9 Interest rate swap (0.5 ) — (0.2 ) — Total $ (4.9 ) $ 11.1 $ 8.9 $ 4.5 (a) The gains (losses) reclassified from accumulated OCI into income related to the derivatives, with the exception of the interest rate swap, are presented in cost of sales in the same period or periods in which the hedged item affects earnings. The gains (losses) reclassified from accumulated OCI into income on the interest rate swap are presented in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings. |
Schedule of derivatives not designated as hedging instruments, gain (loss) | These 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 as Hedging Instruments 2018 2017 Foreign exchange contracts $ 0.3 $ (0.8 ) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial instrument fair value | The estimated fair value of financial instruments at December 31, 2018 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 $ 382.0 $ 382.0 $ 382.0 $ — Derivative financial instruments: Assets 3.4 3.4 — 3.4 Liabilities 10.4 10.4 — 10.4 Debt (a) 1,552.5 1,739.4 1,624.4 115.0 The estimated fair value of financial instruments at December 31, 2017 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 $ 141.6 $ 141.6 $ 141.6 $ — Derivative financial instruments: Assets 16.5 16.5 — 16.5 Liabilities 5.5 5.5 — 5.5 Debt (a) 1,553.8 1,853.2 1,736.9 116.3 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Schedule of defined benefit plans | The components of pension and other postretirement benefit expense for the Company’s defined benefit plans included the following: Pension Benefits Other Postretirement Benefits (In millions) 2018 2017 2016 2018 2017 2016 Service cost—benefits earned during the year $ 16.4 $ 14.1 $ 20.6 $ 2.5 $ 2.4 $ 2.6 Interest cost on benefits earned in prior years 104.8 116.7 125.4 12.7 14.6 16.0 Expected return on plan assets (157.9 ) (146.9 ) (148.7 ) — — (0.1 ) Amortization of prior service cost (credit) 0.3 1.3 1.3 (2.9 ) (2.9 ) (1.7 ) Amortization of net actuarial loss 65.9 62.6 65.4 10.6 9.0 9.6 Curtailment loss 0.4 — — — — — Termination benefits — — 1.1 — — 2.3 Total retirement benefit expense $ 29.9 $ 47.8 $ 65.1 $ 22.9 $ 23.1 $ 28.7 |
Schedule of assumptions used | Actuarial assumptions used to develop the components of defined benefit pension expense and other postretirement benefit expense were as follows: Pension Benefits Other Postretirement Benefits 2018 2017 2016 2018 2017 2016 Discount rate (a) 3.85 % 4.45 % 4.65 % 3.80 % 4.35 % 4.05 - 4.50% Rate of increase in future compensation levels 0.50 - 1.00% 0.50 - 1.00% 3.0 - 3.50% — — — Weighted average expected long-term rate of return on assets 7.75 % 7.75 % 8.00 % 4.0 % 4.0 % 4.0 % (a) Other postretirement benefits expense for 2016 was initially measured at a 4.50% discount rate. A portion of the obligation was remeasured using a 4.05% discount rate as of March 1, 2016, following a new CBA. |
Schedule of assumptions used for year end valuation | Actuarial assumptions used for the valuation of defined benefit pension and other postretirement benefit obligations at the end of the respective periods were as follows: Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Discount rate 4.40 % 3.85 % 4.35 % 3.80 % Rate of increase in future compensation levels 0.50 - 1.00% 0.50 - 1.00% — — |
Schedule of changes in projected benefit obligations | A reconciliation of the funded status for the Company’s defined benefit pension and other postretirement benefit plans at December 31, 2018 and 2017 was as follows: Pension Benefits Other Postretirement Benefits (In millions) 2018 2017 2018 2017 Change in benefit obligations: Benefit obligation at beginning of year $ 2,829.8 $ 2,727.7 $ 349.9 $ 354.8 Service cost 16.4 14.1 2.5 2.4 Interest cost 104.8 116.7 12.7 14.6 Benefits paid (294.5 ) (220.1 ) (36.5 ) (38.6 ) Subsidy paid — — — 0.6 Effect of currency rates (4.5 ) 7.4 — — Net actuarial (gains) losses – discount rate change (150.4 ) 174.6 (17.8 ) 16.6 – other (5.7 ) 9.4 48.3 (0.5 ) Plan curtailments 0.4 — — — Plan amendments 1.4 — — — Benefit obligation at end of year $ 2,497.7 $ 2,829.8 $ 359.1 $ 349.9 |
Schedule of changes in fair value of plan assets | Pension Benefits Other Postretirement Benefits (In millions) 2018 2017 2018 2017 Change in plan assets: Fair value of plan assets at beginning of year $ 2,129.6 $ 1,894.6 $ 0.6 $ 0.7 Actual returns on plan assets and plan expenses (107.2 ) 304.1 (0.5 ) 0.2 Employer contributions 49.3 143.4 — — Effect of currency rates (5.0 ) 7.6 — — Benefits paid (294.5 ) (220.1 ) — (0.3 ) Fair value of plan assets at end of year $ 1,772.2 $ 2,129.6 $ 0.1 $ 0.6 |
Schedule of amounts recognized in balance sheet | Assets (liabilities) recognized in the consolidated balance sheets: Pension Benefits Other Postretirement Benefits 2018 2017 2018 2017 Noncurrent assets $ 9.2 $ 2.1 $ — $ — Current liabilities (4.7 ) (5.3 ) (40.6 ) (31.5 ) Noncurrent liabilities (730.0 ) (697.0 ) (318.4 ) (317.8 ) Total amount recognized $ (725.5 ) $ (700.2 ) $ (359.0 ) $ (349.3 ) |
Schedule of amounts recognized in other comprehensive income | Changes to accumulated other comprehensive loss related to pension and other postretirement benefit plans in 2018 and 2017 were as follows: Pension Benefits Other Postretirement Benefits (In millions) 2018 2017 2018 2017 Beginning of year accumulated other comprehensive loss $ (1,426.1 ) $ (1,462.7 ) $ (83.7 ) $ (74.4 ) Amortization of net actuarial loss 65.9 62.6 10.6 9.0 Amortization of prior service cost (credit) 0.3 1.3 (2.9 ) (2.9 ) Remeasurements (110.4 ) (27.3 ) (31.0 ) (15.4 ) End of year accumulated other comprehensive loss $ (1,470.3 ) $ (1,426.1 ) $ (107.0 ) $ (83.7 ) Net change in accumulated other comprehensive loss $ (44.2 ) $ 36.6 $ (23.3 ) $ (9.3 ) |
Schedule of net periodic benefit cost not yet recognized | Amounts included in accumulated other comprehensive loss at December 31, 2018 and 2017 were as follows: Pension Benefits Other Postretirement Benefits (In millions) 2018 2017 2018 2017 Prior service (cost) credit $ (2.1 ) $ (1.0 ) $ 8.8 $ 11.7 Net actuarial loss (1,468.2 ) (1,425.1 ) (115.8 ) (95.4 ) Accumulated other comprehensive loss (1,470.3 ) (1,426.1 ) (107.0 ) (83.7 ) Deferred tax effect 536.2 525.6 35.3 29.7 Accumulated other comprehensive loss, net of tax $ (934.1 ) $ (900.5 ) $ (71.7 ) $ (54.0 ) |
Schedule of amounts in accumulated other comprehensive income to be recognized | Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost in 2019 are: (In millions) Pension Benefits Other Postretirement Benefits Total Amortization of prior service cost (credit) $ 0.3 $ (2.9 ) $ (2.6 ) Amortization of net actuarial loss 73.7 13.4 87.1 Amortization of accumulated other comprehensive loss $ 74.0 $ 10.5 $ 84.5 |
Schedule of accumulated benefit obligations in excess of fair value of plan assets | Additional information for pension plans with accumulated benefit obligations and projected benefit obligations in excess of plan assets: Pension Benefits (In millions) 2018 2017 Projected benefit obligation $ 2,420.8 $ 2,737.4 Accumulated benefit obligation $ 2,405.6 $ 2,718.0 Fair value of plan assets $ 1,686.1 $ 2,035.1 |
Schedule of expected benefit payments | The following table summarizes expected benefit payments from the Company’s various pension and other postretirement defined benefit plans through 2028, and also includes estimated Medicare Part D subsidies projected to be received during this period based on currently available information. Pension benefit payments for the U.S. qualified defined benefit pension plans and the U.K. defined benefit plan are made from pension plan assets. (In millions) Pension Benefits Other Postretirement Benefits Medicare Part D Subsidy 2019 $ 186.6 $ 40.6 $ 0.6 2020 180.7 38.2 0.6 2021 177.9 35.6 0.6 2022 176.1 33.1 0.5 2023 173.9 30.8 0.5 2024 - 2028 825.0 123.9 1.9 |
Schedule of allocation of plan assets | The fair values of the Company’s pension plan assets are determined using net asset value (NAV) as a practical expedient, or by information categorized in the fair value hierarchy level based on the inputs used to determine fair value, as further discussed in Note 11. The fair values at December 31, 2018 were as follows: (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset category Total NAV (Level 1) (Level 2) (Level 3) Equity securities: U.S. equities $ 362.9 $ 219.9 $ 143.0 $ — $ — International equities 377.4 335.7 41.7 — — Debt securities and cash: Fixed income and cash equivalents 493.7 116.9 6.3 370.5 — Floating rate 90.1 68.9 21.2 — — Private equity 137.1 137.1 — — — Hedge funds 258.3 258.3 — — — Real estate and other 52.7 52.7 — — — Total assets $ 1,772.2 $ 1,189.5 $ 212.2 $ 370.5 $ — The fair values of the Company’s pension plan assets at December 31, 2017 were as follows: (In millions) Quoted Prices in Active Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Asset category Total NAV (Level 1) (Level 2) (Level 3) Equity securities: ATI common stock $ 71.3 $ — $ 71.3 $ — $ — Other U.S. equities 416.0 267.7 148.3 — — International equities 432.5 385.9 46.6 — — Debt securities and cash: Fixed income and cash equivalents 501.1 92.6 10.0 398.5 — Floating rate 169.9 122.6 47.3 — — Private equity 137.5 137.5 — — — Hedge funds 307.4 307.4 — — — Real estate and other 93.9 90.7 — 3.2 — Total assets $ 2,129.6 $ 1,404.4 $ 323.5 $ 401.7 $ — |
Schedule of target asset allocations for pension plans | The target asset allocations for ATI Pension Plan for 2019 , by major investment category, are: Asset category Target asset allocation range Global equity 30% - 60% Debt securities and cash 15% - 40% Private equity 0% - 15% Hedge funds 10% - 20% Real estate and other 0% - 10% |
Schedule of multiemployer plans | The Company’s participation in multiemployer plans for the years ended December 31, 2018 , 2017 and 2016 is reported in the following table. The Company’s contributions to the Steelworkers Western Independent Shops Pension Plan exceed 5% of this plan’s total contributions for the plan year ended September 30, 2017, which is the most recent information available from the Plan Administrator. Pension Protection Act Zone Status (1) FIP / RP Status Pending / Implemented (2) in millions Expiration Dates of Collective Bargaining Agreements EIN / Pension Plan Number Company Contributions Surcharge Imposed (3) Pension Fund 2018 2017 2018 2017 2016 Steelworkers Western Independent Shops Pension Plan 90-0169564 / 001 Green Green N/A $ 0.8 $ 0.6 $ 1.2 No 2/29/2020 Boilermakers-Blacksmiths National Pension Trust 48-6168020 / 001 Yellow Yellow Yes 2.5 2.2 1.8 No 9/30/2026 IAM National Pension Fund 51-6031295 / 002 Green Green N/A 2.1 1.7 1.6 No Various between 2019-2022 (4) Total contributions $ 5.4 $ 4.5 $ 4.6 (1) The most recent Pension Protection Act Zone Status available for ATI’s fiscal years 2018 and 2017 is for plan years ending in calendar years 2017 and 2016 , respectively. The zone status is based on information provided to ATI and other participating employers by each plan and is certified by the plan’s actuary. A plan in the “red” zone had been determined to be in “critical status”, based on criteria established by the Code, and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Code, and is generally less than 80% funded. A plan in the “green” zone has been determined to be neither in “critical status” nor in “endangered status”, and is generally at least 80% funded. In February 2019, the Company received notification from the Boilermakers-Blacksmiths National Pension Trust that it is expected to be certified by its actuary as being in “red” zone status in the plan year beginning January 1, 2019. (2) The “FIP / RP Status Pending / Implemented” column indicates whether a Funding Improvement Plan, as required under the Code by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2018 . (3) The “Surcharge Imposed” column indicates whether ATI’s contribution rate for 2018 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status”, in accordance with the requirements of the Code. (4) The Company is party to five separate bargaining agreements that require contributions to this plan. Expiration dates of these collective bargaining agreements range between July 14, 2019 and April 25, 2022. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of accumulated other comprehensive income (loss) | The changes in AOCI by component, net of tax, for the fiscal years ended December 31, 2018 , 2017 and 2016 were as follows (in millions): Post- retirement benefit plans Currency translation adjustment Derivatives Deferred Tax Asset Valuation Allowance Total Attributable to ATI: Balance, December 31, 2015 $ (951.2 ) $ (47.6 ) $ (15.7 ) $ — $ (1,014.5 ) OCI before reclassifications (60.6 ) (37.4 ) 13.2 (45.6 ) (130.4 ) Amounts reclassified from AOCI (a) 46.3 (b) — (c) 4.9 — 51.2 Net current-period OCI (14.3 ) (37.4 ) 18.1 (45.6 ) (79.2 ) Balance, December 31, 2016 (965.5 ) (85.0 ) 2.4 (45.6 ) (1,093.7 ) OCI before reclassifications (32.5 ) 31.5 11.1 — 10.1 Amounts reclassified from AOCI (a) 43.5 (b) — (c) (4.5 ) (d) 16.8 55.8 Net current-period OCI 11.0 31.5 6.6 16.8 65.9 Balance, December 31, 2017 (954.5 ) (53.5 ) 9.0 (28.8 ) (1,027.8 ) OCI before reclassifications (107.2 ) (20.4 ) (4.9 ) — (132.5 ) Amounts reclassified from AOCI (a) 55.9 (b) — (c) (8.9 ) (d) (20.5 ) 26.5 Net current-period OCI (51.3 ) (20.4 ) (13.8 ) (20.5 ) (106.0 ) Balance, December 31, 2018 $ (1,005.8 ) $ (73.9 ) $ (4.8 ) $ (49.3 ) $ (1,133.8 ) Attributable to noncontrolling interests: Balance, December 31, 2015 $ — $ 19.4 $ — $ — $ 19.4 OCI before reclassifications — (9.7 ) — — (9.7 ) Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — (9.7 ) — — (9.7 ) Balance, December 31, 2016 — 9.7 — — 9.7 OCI before reclassifications — 7.6 — — 7.6 Amounts reclassified from AOCI — (b) — — — — Net current-period OCI — 7.6 — — 7.6 Balance, December 31, 2017 — 17.3 — — 17.3 OCI before reclassifications — (6.2 ) — — (6.2 ) Amounts reclassified from AOCI — — — — — Net current-period OCI — (b) (6.2 ) — — (6.2 ) Balance, December 31, 2018 $ — $ 11.1 $ — $ — $ 11.1 (a) Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 12). (b) No amounts were reclassified to earnings. (c) For 2018, following the Company’s January 1, 2018 adoption of changes issued by the FASB related to accounting guidance for derivatives, amounts related to derivatives are included in cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 10). For 2016 and 2017, amounts related to the effective portion of the derivatives were included in cost of goods sold in the period or periods the hedged item affects earnings, and amounts related to the ineffective portion of the derivatives were presented in selling and administrative expenses on the consolidated statements of operations (see Note 10). (d) Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates. |
Reclassification out of accumulated other comprehensive income | Reclassifications out of AOCI for the fiscal years ended December 31, 2018 , 2017 and 2016 were as follows: Amount reclassified from AOCI (c) Fiscal year ended Details about AOCI Components (In millions) December 31, 2018 December 31, 2017 December 31, 2016 Affected line item in the consolidated statement of operations Postretirement benefit plans Prior service credit (cost) $ 2.6 (a) $ 1.6 (a) $ 0.4 (a) Actuarial losses (76.5 ) (a) (71.6 ) (a) (75.0 ) (a) (73.9 ) (c) (70.0 ) (c) (74.6 ) (c) Total before tax (18.0 ) (26.5 ) (28.3 ) Tax benefit (d) $ (55.9 ) $ (43.5 ) $ (46.3 ) Net of tax Derivatives Nickel and other raw material contracts $ 10.2 (b) $ (3.4 ) (b) $ (19.5 ) (b) Natural gas contracts 0.5 (b) (5.3 ) (b) (14.8 ) (b) Electricity contracts — (b) — (b) — (b) Foreign exchange contracts 1.3 (b) 15.9 (b) 26.4 (b) Interest rate swap (0.3 ) (b) — (b) — (b) 11.7 (c) 7.2 (c) (7.9 ) (c) Total before tax 2.8 2.7 (3.0 ) Tax provision (benefit) (d) $ 8.9 $ 4.5 $ (4.9 ) Net of tax (a) Amounts are included in nonoperating retirement benefit expense (see Note 12). (b) For 2018, following the Company’s January 1, 2018 adoption of changes issued by the FASB related to accounting guidance for derivatives, amounts related to derivatives, with the exception of the interest rate swap are included in cost of goods sold in the period or periods the hedged item affects earnings. Amounts related to the interest rate swap are included in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings (see Note 10). For 2016 and 2017, amounts related to the effective portion of the derivatives were included in cost of goods sold in the period or periods the hedged item affects earnings, and amounts related to the ineffective portion of the derivatives were presented in selling and administrative expenses on the consolidated statements of operations (see Note 10). (c) For pretax items, positive amounts are income and negative amounts are expense in terms of the impact to net income. Tax effects are presented in conformity with ATI’s presentation in the consolidated statements of operations. (d) These amounts exclude the impact of any deferred tax asset valuation allowances, when applicable (see Note 15 for further explanation). |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Nonvested stock rollforward | Activity under the Company’s nonvested stock awards and restricted share units for the years ended December 31, 2018 , 2017 , and 2016 was as follows: (Shares in thousands, $ in millions) 2018 2017 2016 Number of shares/units Weighted Average Grant Date Fair Value Number of shares/units Weighted Average Grant Date Fair Value Number of shares Weighted Average Grant Date Fair Value Nonvested, beginning of year 1,320 $ 32.5 1,852 $ 51.5 1,652 $ 57.0 Granted 290 7.8 378 7.1 682 8.4 Vested (540 ) (11.7 ) (591 ) (16.9 ) (154 ) (4.3 ) Forfeited (15 ) (0.3 ) (319 ) (9.2 ) (328 ) (9.6 ) Nonvested, end of year 1,055 $ 28.3 1,320 $ 32.5 1,852 $ 51.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax | Income (loss) before income taxes for the Company’s U.S. and non-U.S. operations was as follows: (In millions) 2018 2017 2016 U.S. $ 190.8 $ (119.8 ) $ (782.1 ) Non-U.S. 56.9 33.3 48.1 Income (loss) before income taxes $ 247.7 $ (86.5 ) $ (734.0 ) |
Schedule income tax provision (benefit) | The income tax provision (benefit) was as follows: (In millions) 2018 2017 2016 Current: Federal $ 1.0 $ (0.8 ) $ 0.5 State (0.8 ) (1.3 ) (1.5 ) Foreign 10.1 6.2 14.4 Total 10.3 4.1 13.4 Deferred: Federal 1.3 2.4 (115.8 ) State (0.5 ) (14.4 ) (3.5 ) Foreign (0.1 ) 1.1 (1.0 ) Total 0.7 (10.9 ) (120.3 ) Income tax provision (benefit) $ 11.0 $ (6.8 ) $ (106.9 ) |
Schedule of effective income tax rate reconciliation | The following is a reconciliation of income taxes computed at the statutory U.S. Federal income tax rate to the actual effective income tax provision (benefit): (In millions) 2018 2017 2016 Taxes computed at the federal rate $ 52.0 $ (30.3 ) $ (256.9 ) Goodwill impairment — 36.6 — State and local income taxes, net of federal tax benefit (0.5 ) — (26.8 ) Valuation allowance (48.0 ) (14.5 ) 171.5 Repatriation of foreign earnings (GILTI starting in 2018) 5.4 14.2 2.1 Impact of U.S. tax reform 5.9 (4.1 ) — Foreign earnings taxed at different rate 3.2 (3.5 ) (1.2 ) Adjustment to prior years’ taxes (5.8 ) (5.2 ) 3.4 Withholding taxes 2.7 2.2 — Preferential tax rate (4.8 ) (3.7 ) (4.1 ) Other 0.9 1.5 5.1 Income tax provision (benefit) $ 11.0 $ (6.8 ) $ (106.9 ) |
Schedule of deferred tax assets and liabilities | Changes to certain deferred tax assets and the valuation allowance at December 31, 2017 as a result of the Company’s final transition tax calculation for federal and state purposes were as follows (in millions): Deferred Income Tax Assets Estimate Refinement Originally Reported Change Net operating loss tax carryovers $ 355.9 $ 336.1 $ 19.8 Tax credits 63.2 92.6 (29.4 ) Gross deferred income tax assets 733.3 742.9 (9.6 ) Valuation allowance (264.4 ) (274.0 ) 9.6 Total deferred income tax assets $ 468.9 $ 468.9 $ — The utilization of income tax credits of $28.2 million does not match the change in the deferred tax asset amount due to the refinement of the transition tax calculation. The Company continues to maintain a valuation allowance on the federal, state and some foreign net deferred tax assets as of December 31, 2018. Deferred income taxes result from temporary differences in the recognition of income and expense for financial and income tax reporting purposes, and differences between the fair value of assets acquired in business combinations accounted for as purchases for financial reporting purposes and their corresponding tax bases. Deferred income taxes represent future tax benefits or costs to be recognized when those temporary differences reverse. The categories of assets and liabilities that have resulted in differences in the timing of the recognition of income and expense at December 31, 2018 and 2017 were as follows: (In millions) 2018 2017 Deferred income tax assets Pensions $ 159.4 $ 158.0 Postretirement benefits other than pensions 87.3 86.5 Net operating loss tax carryovers 307.5 336.1 Tax credits 49.7 92.6 Deferred compensation and other benefit plans 2.4 13.8 Other items 67.3 55.9 Gross deferred income tax assets 673.6 742.9 Valuation allowance for deferred tax assets (194.8 ) (274.0 ) Total deferred income tax assets 478.8 468.9 Deferred income tax liabilities Bases of property, plant and equipment 371.5 375.3 Inventory valuation 67.1 50.0 Bases of amortizable intangible assets 29.9 38.7 Other items 14.5 7.0 Total deferred tax liabilities 483.0 471.0 Net deferred tax liability $ (4.2 ) $ (2.1 ) |
Schedule of NOL's and tax credits | The following summarizes the carryforward periods for the tax attributes related to NOLs and credits by jurisdiction. ($ in millions) Jurisdiction Attribute Amount Expiration Period Amount expiring within 5 years Amount expiring in 5-20 years U.S. NOL $943 20 years $— $943 U.S. Foreign Tax Credit $37 10 years $13 $24 U.S. Research and Development Credit $1 20 years $— $1 State NOL $140 Various $30 $110 State Credits $12 Various $3 $9 U.K. NOL $13 Indefinite $— $— Luxembourg NOL $18 Indefinite $— $— Poland Economic Zone Credit $2 9 years $— $2 |
Schedule of income taxes paid | Income taxes paid and amounts received as refunds were as follows: (In millions) 2018 2017 2016 Income taxes paid $ 9.7 $ 10.4 $ 8.6 Income tax refunds received (1.6 ) (7.1 ) (10.5 ) Income taxes paid (received), net $ 8.1 $ 3.3 $ (1.9 ) |
Schedule of changes in unrecognized income tax benefits | The changes in the liability for unrecognized income tax benefits for the years ended December 31, 2018 , 2017 and 2016 were as follows: (In millions) 2018 2017 2016 Balance at beginning of year $ 14.7 $ 22.7 $ 19.6 Increases in prior period tax positions — — 7.9 Decreases in prior period tax positions (0.1 ) (0.7 ) (0.1 ) Increases in current period tax positions 0.7 0.7 0.6 Expiration of the statute of limitations (0.6 ) (0.4 ) (1.1 ) Settlements — (7.6 ) (4.2 ) Balance at end of year $ 14.7 $ 14.7 $ 22.7 |
Summary of income tax examinations | A summary of tax years that remain subject to examination, by major tax jurisdiction, is as follows: Jurisdiction Earliest Year Open to U.S. Federal 2017 States: Pennsylvania 2015 Foreign: China 2015 Poland 2012 United Kingdom 2016 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of sales by segment | (In millions) 2018 2017 2016 Total sales: High Performance Materials & Components $ 2,413.6 $ 2,127.0 $ 1,979.5 Flat Rolled Products 1,799.0 1,527.5 1,260.8 Total sales 4,212.6 3,654.5 3,240.3 Intersegment sales: High Performance Materials & Components 79.4 59.6 49.1 Flat Rolled Products 86.6 69.8 56.6 Total intersegment sales 166.0 129.4 105.7 Sales to external customers: High Performance Materials & Components 2,334.2 2,067.4 1,930.4 Flat Rolled Products 1,712.4 1,457.7 1,204.2 Total sales to external customers $ 4,046.6 $ 3,525.1 $ 3,134.6 |
Schedule of operating profit (loss) by segment | (In millions) 2018 2017 2016 Operating profit: High Performance Materials & Components $ 335.4 $ 246.4 $ 168.7 Flat Rolled Products 77.8 37.0 (163.0 ) Total operating profit 413.2 283.4 5.7 LIFO and net realizable value reserves (See Note 3) (0.7 ) (0.2 ) 0.8 Corporate expenses (58.1 ) (50.5 ) (43.4 ) Closed operations and other expenses (21.6 ) (34.0 ) (34.6 ) Restructuring and other charges (See Note 17) — — (538.5 ) Impairment of goodwill (See Note 5) — (114.4 ) — Debt extinguishment charge (See Note 9) — (37.0 ) — Gain on joint venture deconsolidation (See Note 6) 15.9 — — Interest expense, net (101.0 ) (133.8 ) (124.0 ) Income (loss) before income taxes $ 247.7 $ (86.5 ) $ (734.0 ) |
Schedule of other financial information by segment | Certain additional information regarding the Company’s business segments is presented below: (In millions) 2018 2017 2016 Depreciation and amortization: High Performance Materials & Components $ 106.5 $ 109.3 $ 118.4 Flat Rolled Products 47.0 45.6 48.8 Corporate 2.9 5.9 3.1 Total depreciation and amortization $ 156.4 $ 160.8 $ 170.3 Capital expenditures: High Performance Materials & Components $ 79.8 $ 62.7 $ 89.9 Flat Rolled Products 56.4 59.1 111.8 Corporate 3.0 0.9 0.5 Total capital expenditures $ 139.2 $ 122.7 $ 202.2 Identifiable assets: 2018 2017 2016 High Performance Materials & Components $ 2,765.4 $ 2,662.3 $ 2,744.3 Flat Rolled Products 2,225.7 2,218.4 2,056.4 Discontinued Operations — 0.2 0.4 Corporate: Deferred Taxes 8.7 7.6 12.1 Cash and cash equivalents and other 502.0 296.9 356.8 Total assets $ 5,501.8 $ 5,185.4 $ 5,170.0 |
Schedule of company assets by country | ($ in millions) 2018 Percent of total 2017 Percent of total 2016 Percent of total Total assets: United States $ 4,859.1 88 % $ 4,547.7 88 % $ 4,591.5 89 % China 287.3 5 % 276.0 5 % 249.3 5 % United Kingdom 136.7 3 % 122.7 2 % 122.8 2 % Other 218.7 4 % 239.0 5 % 206.4 4 % Total Assets $ 5,501.8 100 % $ 5,185.4 100 % $ 5,170.0 100 % |
Per Share Information (Tables)
Per Share Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule earnings per share | The following table sets forth the computation of basic and diluted net income (loss) per common share: (In millions, except per share amounts) For the Years Ended December 31, 2018 2017 2016 Numerator: Numerator for basic net income (loss) per common share - Net income (loss) attributable to ATI $ 222.4 $ (91.9 ) $ (640.9 ) Effect of dilutive securities: 4.75% Convertible Senior Notes due 2022 12.9 — — Numerator for diluted net income (loss) per common share - Net income (loss) attributable to ATI after assumed conversions $ 235.3 $ (91.9 ) $ (640.9 ) Denominator: Denominator for basic net income (loss) per common share—weighted average shares 125.2 110.1 107.3 Effect of dilutive securities: Share-based compensation 0.8 — — 4.75% Convertible Senior Notes due 2022 19.9 — — Denominator for diluted net income (loss) per common share—adjusted weighted average shares and assumed conversions 145.9 110.1 107.3 Basic net income (loss) attributable to ATI per common share $ 1.78 $ (0.83 ) $ (5.97 ) Diluted net income (loss) attributable to ATI per common share $ 1.61 $ (0.83 ) $ (5.97 ) |
Financial Information for Sub_2
Financial Information for Subsidiary and Guarantor Parent (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Information for Subsidiary and Guarantor Parent [Abstract] | |
Schedule of condensed consolidating balance sheets | Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Balance Sheets December 31, 2018 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ 0.1 $ 10.8 $ 371.1 $ — $ 382.0 Accounts receivable, net — 126.3 401.5 — 527.8 Intercompany notes receivable — — 3,968.8 (3,968.8 ) — Short-term contract assets — — 51.2 — 51.2 Inventories, net — 216.1 995.0 — 1,211.1 Prepaid expenses and other current assets 12.9 29.3 32.4 — 74.6 Total current assets 13.0 382.5 5,820.0 (3,968.8 ) 2,246.7 Property, plant and equipment, net 1.7 1,548.4 924.9 — 2,475.0 Goodwill — — 534.7 — 534.7 Intercompany notes receivable — — 200.0 (200.0 ) — Investments in subsidiaries 6,096.4 37.7 — (6,134.1 ) — Other assets 35.6 30.7 179.1 — 245.4 Total assets $ 6,146.7 $ 1,999.3 $ 7,658.7 $ (10,302.9 ) $ 5,501.8 Liabilities and stockholders’ equity: Accounts payable $ 3.3 $ 177.5 $ 318.0 $ — $ 498.8 Accrued liabilities 59.1 71.7 129.3 — 260.1 Intercompany notes payable 2,102.8 1,866.0 — (3,968.8 ) — Short-term contract liabilities — 33.0 38.4 — 71.4 Short-term debt and current portion of long-term debt 0.2 0.7 5.7 — 6.6 Total current liabilities 2,165.4 2,148.9 491.4 (3,968.8 ) 836.9 Long-term debt 1,278.8 151.8 104.9 — 1,535.5 Intercompany notes payable — 200.0 — (200.0 ) — Accrued postretirement benefits — 259.2 59.2 — 318.4 Pension liabilities 681.6 4.0 44.4 — 730.0 Deferred income taxes 12.9 — — — 12.9 Long-term contract liabilities — — 7.3 — 7.3 Other long-term liabilities 16.4 17.6 35.2 — 69.2 Total liabilities 4,155.1 2,781.5 742.4 (4,168.8 ) 3,510.2 Total stockholders’ equity (deficit) 1,991.6 (782.2 ) 6,916.3 (6,134.1 ) 1,991.6 Total liabilities and stockholders’ equity $ 6,146.7 $ 1,999.3 $ 7,658.7 $ (10,302.9 ) $ 5,501.8 Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Balance Sheets December 31, 2017 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Assets: Cash and cash equivalents $ 2.1 $ 13.5 $ 126.0 $ — $ 141.6 Accounts receivable, net 0.2 141.6 403.5 — 545.3 Intercompany notes receivable — — 3,505.6 (3,505.6 ) — Inventories, net — 207.9 968.2 — 1,176.1 Prepaid expenses and other current assets 6.6 4.5 41.6 — 52.7 Total current assets 8.9 367.5 5,044.9 (3,505.6 ) 1,915.7 Property, plant and equipment, net 0.9 1,581.6 913.2 — 2,495.7 Goodwill — — 531.4 — 531.4 Intercompany notes receivable — — 200.0 (200.0 ) — Investments in subsidiaries 5,645.6 37.7 — (5,683.3 ) — Other assets 25.4 18.0 199.2 — 242.6 Total assets $ 5,680.8 $ 2,004.8 $ 6,888.7 $ (9,388.9 ) $ 5,185.4 Liabilities and stockholders’ equity: Accounts payable $ 3.0 $ 180.3 $ 236.8 $ — $ 420.1 Accrued liabilities 54.1 88.5 139.8 — 282.4 Intercompany notes payable 1,836.5 1,669.1 — (3,505.6 ) — Short-term debt and current portion of long-term debt 0.3 0.6 9.2 — 10.1 Total current liabilities 1,893.9 1,938.5 385.8 (3,505.6 ) 712.6 Long-term debt 1,275.7 150.7 104.2 — 1,530.6 Intercompany notes payable — 200.0 — (200.0 ) — Accrued postretirement benefits — 250.2 67.6 — 317.8 Pension liabilities 644.3 4.4 48.3 — 697.0 Deferred income taxes 9.7 — — — 9.7 Other long-term liabilities 12.7 17.2 43.3 — 73.2 Total liabilities 3,836.3 2,561.0 649.2 (3,705.6 ) 3,340.9 Total stockholders’ equity (deficit) 1,844.5 (556.2 ) 6,239.5 (5,683.3 ) 1,844.5 Total liabilities and stockholders’ equity $ 5,680.8 $ 2,004.8 $ 6,888.7 $ (9,388.9 ) $ 5,185.4 |
Schedule of condensed consolidating statements of operations | Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Operations For the year ended December 31, 2017 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,178.9 $ 2,346.2 $ — $ 3,525.1 Cost of sales 14.6 1,085.5 1,928.0 — 3,028.1 Gross profit (loss) (14.6 ) 93.4 418.2 — 497.0 Selling and administrative expenses 86.6 36.9 124.5 — 248.0 Impairment of goodwill — — 114.4 — 114.4 Operating income (loss) (101.2 ) 56.5 179.3 — 134.6 Nonoperating retirement benefit expense (32.2 ) (18.7 ) (3.4 ) — (54.3 ) Interest income (expense), net (155.8 ) (90.0 ) 112.0 — (133.8 ) Debt extinguishment charge (37.0 ) — — — (37.0 ) Other income (expense) including equity in income of unconsolidated subsidiaries 239.7 1.6 2.4 (239.7 ) 4.0 Income (loss) before income taxes (86.5 ) (50.6 ) 290.3 (239.7 ) (86.5 ) Income tax provision (benefit) (6.8 ) (16.6 ) 131.4 (114.8 ) (6.8 ) Net income (loss) (79.7 ) (34.0 ) 158.9 (124.9 ) (79.7 ) Less: Net income attributable to noncontrolling interest — — 12.2 — 12.2 Net income (loss) attributable to ATI $ (79.7 ) $ (34.0 ) $ 146.7 $ (124.9 ) $ (91.9 ) Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Operations For the year ended December 31, 2018 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 1,410.3 $ 2,636.3 $ — $ 4,046.6 Cost of sales 16.6 1,302.4 2,097.3 — 3,416.3 Gross profit (loss) (16.6 ) 107.9 539.0 — 630.3 Selling and administrative expenses 101.7 34.2 132.3 — 268.2 Operating income (loss) (118.3 ) 73.7 406.7 — 362.1 Nonoperating retirement benefit expense (12.7 ) (19.5 ) (1.7 ) — (33.9 ) Interest income (expense), net (138.8 ) (114.6 ) 152.4 — (101.0 ) Other income (expense) including equity in income of unconsolidated subsidiaries 517.5 16.8 0.8 (514.6 ) 20.5 Income (loss) before income taxes 247.7 (43.6 ) 558.2 (514.6 ) 247.7 Income tax provision (benefit) 11.0 (8.7 ) 83.9 (75.2 ) 11.0 Net income (loss) 236.7 (34.9 ) 474.3 (439.4 ) 236.7 Less: Net income attributable to noncontrolling interest — — 14.3 — 14.3 Net income (loss) attributable to ATI $ 236.7 $ (34.9 ) $ 460.0 $ (439.4 ) $ 222.4 Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Operations For the year ended December 31, 2016 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Sales $ — $ 983.6 $ 2,151.0 $ — $ 3,134.6 Cost of sales 18.6 1,080.2 1,813.0 — 2,911.8 Gross profit (loss) (18.6 ) (96.6 ) 338.0 — 222.8 Selling and administrative expenses 84.5 31.7 124.6 — 240.8 Restructuring charges — 21.7 502.1 — 523.8 Operating loss (103.1 ) (150.0 ) (288.7 ) — (541.8 ) Nonoperating retirement benefit expense (40.2 ) (25.8 ) (4.6 ) — (70.6 ) Interest income (expense), net (138.3 ) (70.7 ) 85.0 — (124.0 ) Other income (expense) including equity in income of unconsolidated subsidiaries (452.4 ) 1.0 1.4 452.4 2.4 Income (loss) before income taxes (734.0 ) (245.5 ) (206.9 ) 452.4 (734.0 ) Income tax provision (benefit) (106.9 ) (85.5 ) (66.7 ) 152.2 (106.9 ) Net income (loss) (627.1 ) (160.0 ) (140.2 ) 300.2 (627.1 ) Less: Net income attributable to noncontrolling interest — — 13.8 — 13.8 Net income (loss) attributable to ATI $ (627.1 ) $ (160.0 ) $ (154.0 ) $ 300.2 $ (640.9 ) |
Schedule of condensed consolidating comprehensive income | Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Comprehensive Income (Loss) For the year ended December 31, 2016 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (627.1 ) $ (160.0 ) $ (140.2 ) $ 300.2 $ (627.1 ) Other comprehensive income (loss) Currency translation adjustment arising during the period (47.1 ) — (47.1 ) 47.1 (47.1 ) Net derivative gain on hedge transactions 19.6 — — — 19.6 Pension and postretirement benefits (61.4 ) 17.2 1.8 (19.0 ) (61.4 ) Other comprehensive income (loss), net of tax (88.9 ) 17.2 (45.3 ) 28.1 (88.9 ) Comprehensive income (loss) (716.0 ) (142.8 ) (185.5 ) 328.3 (716.0 ) Less: Comprehensive income attributable to noncontrolling interest — — 4.1 — 4.1 Comprehensive income (loss) attributable to ATI $ (716.0 ) $ (142.8 ) $ (189.6 ) $ 328.3 $ (720.1 ) Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Comprehensive Income (Loss) For the year ended December 31, 2018 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ 236.7 $ (34.9 ) $ 474.3 $ (439.4 ) $ 236.7 Other comprehensive income (loss) Currency translation adjustment arising during the period (26.6 ) — (26.6 ) 26.6 (26.6 ) Net derivative loss on hedge transactions (18.1 ) — — — (18.1 ) Pension and postretirement benefits (67.5 ) (19.1 ) 0.7 18.4 (67.5 ) Other comprehensive income (loss), net of tax (112.2 ) (19.1 ) (25.9 ) 45.0 (112.2 ) Comprehensive income (loss) 124.5 (54.0 ) 448.4 (394.4 ) 124.5 Less: Comprehensive income attributable to noncontrolling interest — — 8.1 — 8.1 Comprehensive income (loss) attributable to ATI $ 124.5 $ (54.0 ) $ 440.3 $ (394.4 ) $ 116.4 Allegheny Technologies Incorporated Financial Information for Subsidiary and Guarantor Parent Statements of Comprehensive Income (Loss) For the year ended December 31, 2017 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Net income (loss) $ (79.7 ) $ (34.0 ) $ 158.9 $ (124.9 ) $ (79.7 ) Other comprehensive income (loss) Currency translation adjustment arising during the period 39.1 — 39.1 (39.1 ) 39.1 Net derivative gain on hedge transactions 7.1 — — — 7.1 Pension and postretirement benefits 27.3 (5.8 ) (10.7 ) 16.5 27.3 Other comprehensive income (loss), net of tax 73.5 (5.8 ) 28.4 (22.6 ) 73.5 Comprehensive income (loss) (6.2 ) (39.8 ) 187.3 (147.5 ) (6.2 ) Less: Comprehensive income attributable to noncontrolling interest — — 19.8 — 19.8 Comprehensive income (loss) attributable to ATI $ (6.2 ) $ (39.8 ) $ 167.5 $ (147.5 ) $ (26.0 ) |
Schedule of condensed consolidating statements of cash flow | Condensed Statements of Cash Flows For the year ended December 31, 2017 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ (78.8 ) $ (101.5 ) $ 214.7 $ (12.0 ) $ 22.4 Investing Activities: Purchases of property, plant and equipment (0.9 ) (38.5 ) (83.3 ) — (122.7 ) Net receipts (payments) on intercompany activity — — (223.9 ) 223.9 — Asset disposals and other — 0.1 3.0 — 3.1 Cash flows provided by (used in) investing activities (0.9 ) (38.4 ) (304.2 ) 223.9 (119.6 ) Financing Activities: Borrowings on long-term debt — — 8.5 — 8.5 Payments on long-term debt and capital leases (350.4 ) (0.3 ) (2.3 ) — (353.0 ) Net borrowings under credit facilities — — 1.6 — 1.6 Debt issuance costs — — (0.8 ) — (0.8 ) Debt extinguishment charge (35.8 ) — — — (35.8 ) Net receipts (payments) on intercompany activity 72.7 151.2 — (223.9 ) — Issuance of common stock 397.8 — — — 397.8 Dividends paid to stockholders — — (12.0 ) 12.0 — Dividends paid to noncontrolling interests — — (8.0 ) — (8.0 ) Sale of noncontrolling interests — — 3.7 — 3.7 Shares repurchased for income tax withholding on share-based compensation and other (4.8 ) — — — (4.8 ) Cash flows provided by (used in) financing activities 79.5 150.9 (9.3 ) (211.9 ) 9.2 Increase (decrease) in cash and cash equivalents $ (0.2 ) $ 11.0 $ (98.8 ) $ — $ (88.0 ) Condensed Statements of Cash Flows For the year ended December 31, 2018 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ (107.0 ) $ (223.9 ) $ 738.7 $ (15.0 ) $ 392.8 Investing Activities: Purchases of property, plant and equipment (2.1 ) (26.2 ) (110.9 ) — (139.2 ) Net receipts (payments) on intercompany activity — — (346.5 ) 346.5 — Purchases of businesses — — (10.0 ) — (10.0 ) Asset disposals and other 1.3 2.6 0.2 — 4.1 Cash flows provided by (used in) investing activities (0.8 ) (23.6 ) (467.2 ) 346.5 (145.1 ) Financing Activities: Borrowings on long-term debt — — 7.1 — 7.1 Payments on long-term debt and capital leases (0.2 ) (0.9 ) (5.3 ) — (6.4 ) Net payments under credit facilities — — (5.9 ) — (5.9 ) Net receipts (payments) on intercompany activity 112.5 234.0 — (346.5 ) — Dividends paid to stockholders — — (15.0 ) 15.0 — Dividends paid to noncontrolling interests — — (10.0 ) — (10.0 ) Sale to noncontrolling interests — 11.7 2.7 — 14.4 Shares repurchased for income tax withholding on share-based compensation and other (6.5 ) — — — (6.5 ) Cash flows provided by (used in) financing activities 105.8 244.8 (26.4 ) (331.5 ) (7.3 ) Increase (decrease) in cash and cash equivalents $ (2.0 ) $ (2.7 ) $ 245.1 $ — $ 240.4 Condensed Statements of Cash Flows For the year ended December 31, 2016 (In millions) Guarantor Parent Subsidiary Non-guarantor Subsidiaries Eliminations Consolidated Cash flows provided by (used in) operating activities $ (78.5 ) $ (232.3 ) $ 291.1 $ (24.0 ) $ (43.7 ) Investing Activities: Purchases of property, plant and equipment (0.5 ) (98.7 ) (103.0 ) — (202.2 ) Net receipts (payments) on intercompany activity — — (160.0 ) 160.0 — Asset disposals and other — 0.2 2.0 — 2.2 Cash flows provided by (used in) investing activities (0.5 ) (98.5 ) (261.0 ) 160.0 (200.0 ) Financing Activities: Borrowings on long-term debt 287.5 — 100.0 — 387.5 Payments on long-terms debt and capital leases (0.7 ) (0.2 ) (1.8 ) — (2.7 ) Net borrowings under credit facilities — — 3.1 — 3.1 Debt issuance costs (9.4 ) — (1.0 ) — (10.4 ) Net receipts (payments) on intercompany activity (170.7 ) 330.7 — (160.0 ) — Dividends paid to stockholders (25.8 ) — (24.0 ) 24.0 (25.8 ) Dividends paid to noncontrolling interests — — (16.0 ) — (16.0 ) Acquisition of noncontrolling interest — — (12.2 ) — (12.2 ) Cash flows provided by (used in) financing activities 80.9 330.5 48.1 (136.0 ) 323.5 Increase (decrease) in cash and cash equivalents $ 1.9 $ (0.3 ) $ 78.2 $ — $ 79.8 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | Quarter Ended (In millions, except per share amounts) March 31 June 30 September 30 December 31 2018 - Sales $ 979.0 $ 1,009.5 $ 1,020.2 $ 1,037.9 Gross Profit 148.6 173.7 160.4 147.6 Net income 60.5 75.6 55.6 45.0 Net income attributable to ATI 58.0 72.8 50.5 41.1 Basic income attributable to ATI per common share $ 0.46 $ 0.58 $ 0.40 $ 0.33 Diluted income attributable to ATI per common share $ 0.42 $ 0.52 $ 0.37 $ 0.30 Average shares outstanding 125.7 125.7 125.7 125.7 2017 - Sales $ 865.9 $ 880.2 $ 869.1 $ 909.9 Gross Profit 124.8 124.3 105.3 142.6 Net income (loss) 21.1 13.4 (119.4 ) 5.2 Net income (loss) attributable to ATI 17.5 10.1 (121.2 ) 1.7 Basic income (loss) attributable to ATI per common share $ 0.16 $ 0.09 $ (1.12 ) $ 0.01 Diluted income (loss) attributable to ATI per common share $ 0.16 $ 0.09 $ (1.12 ) $ 0.01 Average shares outstanding 108.8 108.9 108.9 118.6 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Principles of Consolidation (Details) - Uniti [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Noncontrolling Interest [Line Items] | ||
Equity method investment ownership percentage | 50.00% | |
Related party accounts receivable | $ 1.8 | $ 1.2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Risks and Uncertainties and Use of Estimates (Details) | 12 Months Ended | ||
Dec. 31, 2018employeecustomer | Dec. 31, 2017customer | Dec. 31, 2016customer | |
Segment Reporting Information [Line Items] | |||
Number of employees | 8,800 | ||
Percent of employees located outside of the U.S. | 15.00% | ||
Percent of employees covered by collective bargaining agreements | 40.00% | ||
USW with Collective Bargaining Arrangements Ratified in 2018 [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of employees | 900 | ||
Sales Revenue [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of customers | customer | 0 | 0 | 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accounting Policies [Abstract] | ||||
Allowances for Doubtful Accounts | $ 6 | $ 5.9 | $ 7.3 | $ 4.5 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Research and Development Expense | $ 22.7 | $ 13.3 | $ 14.7 |
Customer funded research and development costs | $ 2.2 | $ 1.4 | $ 2.2 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Recent Accounting Pronouncements (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating Income (Loss) | $ 362.1 | $ 134.6 | $ (541.8) | ||
Accounting Standards Update 2017-07 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating Income (Loss) | $ 54.3 | $ 70.6 | |||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | $ (5.4) | ||||
Accounting Standards Update 2016-02 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating Lease, Right-of-Use Asset | $ 52 | ||||
Operating Lease, Liability | $ 56 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jan. 01, 2018USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Inventories, net | $ 1,211,100,000 | $ 1,176,100,000 | $ 1,211,100,000 | $ 1,176,100,000 | ||||||||
Adjustment from current cost to LIFO cost basis | (2,900,000) | (43,100,000) | (2,900,000) | (43,100,000) | ||||||||
Sales | 1,037,900,000 | $ 1,020,200,000 | $ 1,009,500,000 | $ 979,000,000 | 909,900,000 | $ 869,100,000 | $ 880,200,000 | $ 865,900,000 | 4,046,600,000 | 3,525,100,000 | $ 3,134,600,000 | |
Cost of sales | 3,416,300,000 | 3,028,100,000 | 2,911,800,000 | |||||||||
Short-term contract assets | 51,200,000 | 0 | 51,200,000 | 0 | $ 36,500,000 | |||||||
Long-term contract assets | 100,000 | 100,000 | 16,900,000 | |||||||||
Accrued liabilities | 260,100,000 | 282,400,000 | 260,100,000 | 282,400,000 | ||||||||
Other long-term liabilities | 69,200,000 | 73,200,000 | 69,200,000 | 73,200,000 | ||||||||
Short-term contract liabilities | 71,400,000 | 0 | 71,400,000 | 0 | 69,700,000 | |||||||
Long-term contract liabilities | 7,300,000 | 0 | $ 7,300,000 | 0 | 22,200,000 | |||||||
Number of business segments | segment | 2 | |||||||||||
Revenue, Performance Obligation [Abstract] | ||||||||||||
Confirmed order backlog | 2,200,000,000 | 2,100,000,000 | $ 2,200,000,000 | 2,100,000,000 | $ 1,700,000,000 | |||||||
Confirmed orders with current performance obligations | 0.85 | 0.85 | ||||||||||
Accounts receivable with customers | 533,800,000 | $ 550,900,000 | 533,800,000 | $ 550,900,000 | ||||||||
Contract costs for obtaining and fulfilling contracts | 5,200,000 | 5,200,000 | ||||||||||
Amortization of contract costs | 1,200,000 | |||||||||||
ASU 2014-09 | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Inventories, net | 9,500,000 | 9,500,000 | 28,800,000 | |||||||||
Adjustment from current cost to LIFO cost basis | 11,800,000 | |||||||||||
Short-term contract assets | 6,000,000 | 6,000,000 | 3,700,000 | |||||||||
Increase in accounts receivable | 3,900,000 | 3,900,000 | 3,900,000 | |||||||||
Accrued liabilities | (52,000,000) | (52,000,000) | (44,800,000) | |||||||||
Other long-term liabilities | (7,300,000) | (7,300,000) | (10,700,000) | |||||||||
Short-term contract liabilities | 71,400,000 | 71,400,000 | 69,700,000 | |||||||||
Long-term contract liabilities | 7,300,000 | 7,300,000 | 22,200,000 | |||||||||
ASU 2014-09 | Revenue Recognized Over-time | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Increase in retained earnings | 15,500,000 | |||||||||||
Contract assets | 45,300,000 | 45,300,000 | 49,700,000 | |||||||||
Inventories, net | 5,400,000 | 5,400,000 | $ (34,200,000) | |||||||||
Sales | (4,300,000) | |||||||||||
Cost of sales | (5,400,000) | |||||||||||
Short-term contract assets | 45,200,000 | 45,200,000 | ||||||||||
Long-term contract assets | $ 100,000 | $ 100,000 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,037.9 | $ 1,020.2 | $ 1,009.5 | $ 979 | $ 909.9 | $ 869.1 | $ 880.2 | $ 865.9 | $ 4,046.6 | $ 3,525.1 | $ 3,134.6 |
Percent of total revenue | 100.00% | 100.00% | 100.00% | ||||||||
Total High-Value Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 86.00% | 84.00% | 87.00% | ||||||||
Nickel-based alloys and specialty alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 30.00% | 28.00% | 28.00% | ||||||||
Precision forgings, castings and components | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 20.00% | 19.00% | 18.00% | ||||||||
Titanium and titanium-based alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 17.00% | 17.00% | 20.00% | ||||||||
Precision and engineered strip | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 14.00% | 14.00% | 13.00% | ||||||||
Zirconium and related alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 5.00% | 6.00% | 8.00% | ||||||||
Total Standard Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 14.00% | 16.00% | 13.00% | ||||||||
Stainless steel sheet | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 8.00% | 9.00% | 7.00% | ||||||||
Specialty stainless sheet | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 4.00% | 5.00% | 4.00% | ||||||||
Stainless steel plate and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 2.00% | 2.00% | 2.00% | ||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 2,348.1 | $ 2,070.6 | $ 1,857.5 | ||||||||
China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 320 | 265.6 | 214.1 | ||||||||
Germany | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 247.2 | 217.1 | 177.7 | ||||||||
United Kingdom | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 242.1 | 231.6 | 183.8 | ||||||||
Japan | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 214.9 | 131.7 | 151.9 | ||||||||
France | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 183.6 | 165.6 | 142.6 | ||||||||
Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 490.7 | 442.9 | 407 | ||||||||
Aerospace & Defense | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,965.5 | 1,718.1 | 1,590.4 | ||||||||
Oil & Gas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 546.2 | 418.2 | 280.8 | ||||||||
Automotive | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 323.4 | 273.7 | 232.8 | ||||||||
Food Equipment & Appliances | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 244.9 | 226 | 172.2 | ||||||||
Electrical Energy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 234.5 | 192.2 | 232.6 | ||||||||
Construction/Mining | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 226 | 192.9 | 160.6 | ||||||||
Medical | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 183.1 | 183 | 195.8 | ||||||||
Electronics/Computers/Communications | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 156.9 | 151.6 | 109.7 | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 166.1 | 169.4 | 159.7 | ||||||||
Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 4,212.6 | 3,654.5 | 3,240.3 | ||||||||
Operating Segments | High Performance Materials & Components | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 2,413.6 | $ 2,127 | $ 1,979.5 | ||||||||
Percent of total revenue | 100.00% | 100.00% | 100.00% | ||||||||
Operating Segments | High Performance Materials & Components | Total High-Value Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 100.00% | 100.00% | 100.00% | ||||||||
Operating Segments | High Performance Materials & Components | Nickel-based alloys and specialty alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 31.00% | 31.00% | 29.00% | ||||||||
Operating Segments | High Performance Materials & Components | Precision forgings, castings and components | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 34.00% | 32.00% | 29.00% | ||||||||
Operating Segments | High Performance Materials & Components | Titanium and titanium-based alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 25.00% | 26.00% | 29.00% | ||||||||
Operating Segments | High Performance Materials & Components | Precision and engineered strip | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 0.00% | 0.00% | 0.00% | ||||||||
Operating Segments | High Performance Materials & Components | Zirconium and related alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 10.00% | 11.00% | 13.00% | ||||||||
Operating Segments | High Performance Materials & Components | Total Standard Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 0.00% | 0.00% | 0.00% | ||||||||
Operating Segments | High Performance Materials & Components | Stainless steel sheet | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 0.00% | 0.00% | 0.00% | ||||||||
Operating Segments | High Performance Materials & Components | Specialty stainless sheet | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 0.00% | 0.00% | 0.00% | ||||||||
Operating Segments | High Performance Materials & Components | Stainless steel plate and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 0.00% | 0.00% | 0.00% | ||||||||
Operating Segments | High Performance Materials & Components | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,214.1 | $ 1,096.5 | $ 1,057.3 | ||||||||
Operating Segments | High Performance Materials & Components | China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 83.1 | 51.1 | 57.8 | ||||||||
Operating Segments | High Performance Materials & Components | Germany | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 192.7 | 170.5 | 137.4 | ||||||||
Operating Segments | High Performance Materials & Components | United Kingdom | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 232.4 | 220.9 | 171.1 | ||||||||
Operating Segments | High Performance Materials & Components | Japan | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 136.5 | 95.2 | 113.4 | ||||||||
Operating Segments | High Performance Materials & Components | France | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 172.7 | 157.8 | 134.9 | ||||||||
Operating Segments | High Performance Materials & Components | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 302.7 | 275.4 | 258.5 | ||||||||
Operating Segments | High Performance Materials & Components | Aerospace & Defense | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 1,771.3 | 1,568.9 | 1,439.2 | ||||||||
Operating Segments | High Performance Materials & Components | Oil & Gas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 74.9 | 63.9 | 46.5 | ||||||||
Operating Segments | High Performance Materials & Components | Automotive | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 9.5 | 8.8 | 7.6 | ||||||||
Operating Segments | High Performance Materials & Components | Food Equipment & Appliances | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 0.4 | 1.1 | 1.8 | ||||||||
Operating Segments | High Performance Materials & Components | Electrical Energy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 131.4 | 113.1 | 129.1 | ||||||||
Operating Segments | High Performance Materials & Components | Construction/Mining | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 72.8 | 51.1 | 36.7 | ||||||||
Operating Segments | High Performance Materials & Components | Medical | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 168.5 | 170.4 | 185.3 | ||||||||
Operating Segments | High Performance Materials & Components | Electronics/Computers/Communications | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 7.9 | 4.4 | 3.4 | ||||||||
Operating Segments | High Performance Materials & Components | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 97.5 | 85.7 | 80.8 | ||||||||
Operating Segments | Flat Rolled Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,799 | $ 1,527.5 | $ 1,260.8 | ||||||||
Percent of total revenue | 100.00% | 100.00% | 100.00% | ||||||||
Operating Segments | Flat Rolled Products | Total High-Value Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 66.00% | 63.00% | 65.00% | ||||||||
Operating Segments | Flat Rolled Products | Nickel-based alloys and specialty alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 28.00% | 24.00% | 25.00% | ||||||||
Operating Segments | Flat Rolled Products | Precision forgings, castings and components | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 0.00% | 0.00% | 0.00% | ||||||||
Operating Segments | Flat Rolled Products | Titanium and titanium-based alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 5.00% | 5.00% | 4.00% | ||||||||
Operating Segments | Flat Rolled Products | Precision and engineered strip | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 33.00% | 34.00% | 36.00% | ||||||||
Operating Segments | Flat Rolled Products | Zirconium and related alloys | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 0.00% | 0.00% | 0.00% | ||||||||
Operating Segments | Flat Rolled Products | Total Standard Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 34.00% | 37.00% | 35.00% | ||||||||
Operating Segments | Flat Rolled Products | Stainless steel sheet | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 20.00% | 21.00% | 19.00% | ||||||||
Operating Segments | Flat Rolled Products | Specialty stainless sheet | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 10.00% | 12.00% | 11.00% | ||||||||
Operating Segments | Flat Rolled Products | Stainless steel plate and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Percent of total revenue | 4.00% | 4.00% | 5.00% | ||||||||
Operating Segments | Flat Rolled Products | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,134 | $ 974.1 | $ 800.2 | ||||||||
Operating Segments | Flat Rolled Products | China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 236.9 | 214.5 | 156.3 | ||||||||
Operating Segments | Flat Rolled Products | Germany | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 54.5 | 46.6 | 40.3 | ||||||||
Operating Segments | Flat Rolled Products | United Kingdom | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 9.7 | 10.7 | 12.7 | ||||||||
Operating Segments | Flat Rolled Products | Japan | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 78.4 | 36.5 | 38.5 | ||||||||
Operating Segments | Flat Rolled Products | France | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 10.9 | 7.8 | 7.7 | ||||||||
Operating Segments | Flat Rolled Products | Rest of World | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 188 | 167.5 | 148.5 | ||||||||
Operating Segments | Flat Rolled Products | Aerospace & Defense | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 194.2 | 149.2 | 151.2 | ||||||||
Operating Segments | Flat Rolled Products | Oil & Gas | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 471.3 | 354.3 | 234.3 | ||||||||
Operating Segments | Flat Rolled Products | Automotive | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 313.9 | 264.9 | 225.2 | ||||||||
Operating Segments | Flat Rolled Products | Food Equipment & Appliances | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 244.5 | 224.9 | 170.4 | ||||||||
Operating Segments | Flat Rolled Products | Electrical Energy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 103.1 | 79.1 | 103.5 | ||||||||
Operating Segments | Flat Rolled Products | Construction/Mining | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 153.2 | 141.8 | 123.9 | ||||||||
Operating Segments | Flat Rolled Products | Medical | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 14.6 | 12.6 | 10.5 | ||||||||
Operating Segments | Flat Rolled Products | Electronics/Computers/Communications | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 149 | 147.2 | 106.3 | ||||||||
Operating Segments | Flat Rolled Products | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 68.6 | 83.7 | 78.9 | ||||||||
External Customers | Operating Segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 4,046.6 | 3,525.1 | 3,134.6 | ||||||||
External Customers | Operating Segments | High Performance Materials & Components | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | 2,334.2 | 2,067.4 | 1,930.4 | ||||||||
External Customers | Operating Segments | Flat Rolled Products | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 1,712.4 | $ 1,457.7 | $ 1,204.2 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Accounts Receivable Reserve for Doubtful Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Beginning Balance | $ 5.9 | $ 7.3 | $ 4.5 |
Expense to increase the reserve | 1.9 | 0.1 | 4.8 |
Write-off of uncollectible accounts | (1.8) | (1.5) | (2) |
Ending Balance | $ 6 | $ 5.9 | $ 7.3 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Contract Assets, Current [Roll Forward] | |
Balance as of January 1, 2018 | $ 0 |
Recognized in current year | 92.9 |
Reclassified to accounts receivable | (95.8) |
Impairment | 0 |
Reclassification to/from long-term | 16.8 |
Other | 0.8 |
Balance as of December 31, 2018 | 51.2 |
Contract Assets, Noncurrent [Roll Forward] | |
Recognized in current year | 0 |
Reclassified to accounts receivable | 0 |
Impairment | 0 |
Reclassification to/from short-term | (16.8) |
Balance as of December 31, 2018 | 0.1 |
Contract Liabilities, Current [Roll Forward] | |
Balance as of January 1, 2018 | 0 |
Recognized in current year | 76.7 |
Amounts in beginning balance reclassified to revenue | (49.6) |
Current year amounts reclassified to revenue | (42.7) |
Other | 2.7 |
Reclassification to/from long-term | 14.6 |
Balance as of December 31, 2018 | 71.4 |
Contract Liabilities, Noncurrent [Roll Forward] | |
Balance as of January 1, 2018 | 0 |
Recognized in current year | 0.7 |
Amounts in beginning balance reclassified to revenue | (1) |
Current year amounts reclassified to revenue | 0 |
Other | 0 |
Reclassification to/from short-term | (14.6) |
Balance as of December 31, 2018 | $ 7.3 |
Inventories Narrative (Details)
Inventories Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Inventory [Line Items] | |||||
LIFO inventory amount | $ 794.3 | $ 821.2 | |||
Inventory valuation reserves | (88.5) | (121.5) | |||
Effect of LIFO liquidation on income | 0.8 | (4.6) | $ (61.5) | ||
Inventories, net | 1,211.1 | 1,176.1 | |||
Adjustment from current cost to LIFO cost basis | 2.9 | 43.1 | |||
ASU 2014-09 | |||||
Inventory [Line Items] | |||||
Inventory valuation reserves | $ 11.8 | ||||
Inventories, net | 9.5 | 28.8 | |||
Adjustment from current cost to LIFO cost basis | (11.8) | ||||
ASU 2014-09 | Transferred over Time | |||||
Inventory [Line Items] | |||||
Inventories, net | 5.4 | $ (34.2) | |||
Titanium sponge inventory | SEC Schedule, 12-09, Reserve, Inventory | |||||
Inventory [Line Items] | |||||
Inventory valuation charges | $ 11.3 | ||||
Industrial titanium products | SEC Schedule, 12-09, Reserve, Inventory | |||||
Inventory [Line Items] | |||||
Inventory valuation charges | $ 17.7 | ||||
Net Realizable Value Reserve | |||||
Inventory [Line Items] | |||||
Inventory valuation reserves | $ (8) | $ (47.5) |
Inventories Schedule of Invento
Inventories Schedule of Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory, Gross [Abstract] | ||
Raw materials and supplies | $ 191.5 | $ 162.8 |
Work-in-process | 914.1 | 955.5 |
Finished goods | 191.1 | 165 |
Total inventories at current cost | 1,296.7 | 1,283.3 |
Adjustment from current cost to LIFO cost basis | 2.9 | 43.1 |
Inventory valuation reserves | (88.5) | (121.5) |
Progress payments | 0 | (28.8) |
Total inventories, net | $ 1,211.1 | $ 1,176.1 |
Inventories Schedule of Inven_2
Inventories Schedule of Inventory Valuation Impact on Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||
LIFO benefit (charge) | $ (28.6) | $ (54.2) | $ (39.1) |
NRV benefit (charge) | 27.9 | 54 | 39.9 |
Net cost of sales impact | $ (0.7) | $ (0.2) | $ 0.8 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment Details [Abstract] | |||
Land | $ 31.5 | $ 31.7 | |
Buildings | 851.7 | 844.5 | |
Equipment and leasehold improvements | 3,622.7 | 3,597.6 | |
Property plant and equipment, gross | 4,505.9 | 4,473.8 | |
Accumulated depreciation and amortization | (2,030.9) | (1,978.1) | |
Property, plant and equipment, net | 2,475 | 2,495.7 | |
Construction in progress | 83.7 | 90.7 | |
Depreciation, Depletion and Amortization [Abstract] | |||
Software and other amortization | 10 | 10 | $ 10 |
Total depreciation and amortization | 156.4 | 160.8 | 170.3 |
Operating Segments | |||
Depreciation, Depletion and Amortization [Abstract] | |||
Depreciation of property, plant and equipment | 131.9 | 135.2 | 141.9 |
Software and other amortization | 24.5 | 25.6 | 28.4 |
Total depreciation and amortization | $ 156.4 | $ 160.8 | $ 170.3 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) | Jul. 12, 2018 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | |||||
Goodwill | $ 534,700,000 | $ 531,400,000 | |||
Period increase (decrease) in goodwill | 3,300,000 | ||||
Impairment of goodwill | $ (114,400,000) | 0 | (114,400,000) | $ 0 | |
Accumulated goodwill impairment | 241,000,000 | 241,000,000 | |||
Addaero Manufacturing [Member] | |||||
Goodwill [Line Items] | |||||
Goodwill | 6,000,000 | ||||
Payments to Acquire Businesses, Gross | $ 10,000,000 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2,000,000 | ||||
High Performance Materials & Components | |||||
Goodwill [Line Items] | |||||
Goodwill | 534,700,000 | ||||
Impairment of goodwill | 0 | $ (114,400,000) | $ 0 | ||
Goodwill, Foreign Currency Translation Gain (Loss) | $ (2,700,000) | ||||
High Performance Materials & Components | First Reporting Unit [Member] | |||||
Goodwill [Line Items] | |||||
Percentage of fair value in excess of carrying value | 12.00% |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 10 | $ 10 | $ 10 |
Gross carrying amount | 193.7 | 191.7 | |
Accumulated amortization | (64) | (53.7) | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,019 | 10 | ||
2,020 | 10 | ||
2,021 | 10 | ||
2,022 | 10 | ||
2,023 | 10 | ||
Accumulated goodwill impairment | 241 | 241 | |
Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 93.4 | 91.4 | |
Accumulated amortization | (31.9) | (27.4) | |
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 35.7 | 35.7 | |
Accumulated amortization | (10.6) | (9.1) | |
Trademarks [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying amount | 64.6 | 64.6 | |
Accumulated amortization | $ (21.5) | $ (17.2) |
Joint Ventures (Details)
Joint Ventures (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | ||||||
Sale to noncontrolling interest | $ 14.4 | $ 3.7 | $ 0 | |||
Gain on joint venture deconsolidation | $ 15.9 | 15.9 | 0 | 0 | ||
Cash and cash equivalents | 382 | 141.6 | 229.6 | $ 149.8 | ||
Income (loss) from equity method investments | (1) | 0 | 0 | |||
Intercompany notes receivable | 0 | 0 | ||||
Undistributed earnings of investees accounted for under equity method | $ 24 | |||||
Shanghai STAL Precision Stainless Steel Co Ltd [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Joint venture ownership percentage | 60.00% | |||||
Cash and cash equivalents | $ 35 | |||||
Next Gen Alloys LLC [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Joint venture ownership percentage | 51.00% | |||||
Sale to noncontrolling interest | $ 2.7 | |||||
Cash and cash equivalents | 10.1 | |||||
Allegheny & Tsingshan Stainless [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Sale to noncontrolling interest | $ 12 | |||||
Equity method investment ownership percentage | 50.00% | |||||
Revenue from related parties | $ 4.1 | |||||
Related party accounts receivable | 0.6 | |||||
Intercompany notes receivable | $ 10.5 | |||||
Uniti [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment ownership percentage | 50.00% | |||||
Revenue from related parties | $ 49.4 | 38.6 | 20.3 | |||
Related party accounts receivable | $ 1.8 | 1.2 | ||||
China Baowu Steel Group Corporation Limited [Member] | Shanghai STAL Precision Stainless Steel Co Ltd [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Joint venture ownership percentage by unaffiliated entity | 40.00% | |||||
Tsingshan Group [Member] | Allegheny & Tsingshan Stainless [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Joint venture ownership percentage by unaffiliated entity | 50.00% | |||||
VSMPO [Member] | Uniti [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Joint venture ownership percentage by unaffiliated entity | 50.00% | |||||
Flat Rolled Products | Allegheny & Tsingshan Stainless [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Income (loss) from equity method investments | $ (3.9) | |||||
Flat Rolled Products | Uniti [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Income (loss) from equity method investments | $ 2.9 | $ 0.6 | $ 0.5 | |||
Forecast [Member] | Allegheny & Tsingshan Stainless [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Sale to noncontrolling interest | $ 17.5 |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | |||
Asset retirement obligation | $ 23.1 | $ 23.5 | $ 23.3 |
Revision of estimates | $ 0 | $ 0.1 |
Asset Retirement Obligations -
Asset Retirement Obligations - Change in Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Balance at beginning of year | $ 23.5 | $ 23.3 |
Accretion expense | 0.8 | 0.8 |
Payments | (1.2) | (0.7) |
Revision of estimates | 0 | 0.1 |
Balance at end of year | $ 23.1 | $ 23.5 |
Supplemental Financial Statem_3
Supplemental Financial Statement Information - Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and Cash Equivalents [Abstract] | ||||
Cash | $ 264.4 | $ 140.2 | ||
Other short-term investments | 117.6 | 1.4 | ||
Total cash and cash equivalents | $ 382 | $ 141.6 | $ 229.6 | $ 149.8 |
Supplemental Financial Statem_4
Supplemental Financial Statement Information - Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Additional Financial Information Disclosure [Abstract] | ||
Accrued salaries, wages and payroll liabilities | $ 70.5 | $ 61.6 |
Accrued interest | $ 36.6 | $ 36.2 |
Supplemental Financial Statem_5
Supplemental Financial Statement Information - Other Non-operating Income (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Rent and royalty income | $ 3.1 | $ 3.5 | $ 1.4 | |
Net gains on property and investments | 1.3 | 0.5 | 1 | |
Income (loss) from equity method investments | (1) | 0 | 0 | |
Gain on joint venture deconsolidation | $ 15.9 | 15.9 | 0 | 0 |
Other | 1.2 | 0 | 0 | |
Other income, net | $ 20.5 | $ 4 | $ 2.4 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jul. 31, 2018 | Feb. 15, 2016 | [1] | Dec. 31, 2013 | ||
Debt Instrument [Line Items] | ||||||||||
Debt Issuance Costs, Net | $ 10.4 | $ 13.1 | ||||||||
Total short-term and long-term debt | 1,542.1 | 1,540.7 | ||||||||
Short-term debt and current portion of long-term debt | 6.6 | 10.1 | ||||||||
Total long-term debt | $ 1,535.5 | $ 1,530.6 | ||||||||
Allegheny Technologies $500 million 5.875% Senior Notes due 2023 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument issuer | [1] | Allegheny Technologies | Allegheny Technologies | |||||||
Debt instrument interest rate stated percentage | 7.875% | 5.875% | ||||||||
Debt instrument carrying amount | [1] | $ 500 | $ 500 | |||||||
Allegheny Technologies $500 million 5.95% Senior Notes due 2021 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument issuer | Allegheny Technologies | Allegheny Technologies | ||||||||
Debt instrument interest rate stated percentage | 5.95% | 5.95% | ||||||||
Debt instrument carrying amount | $ 500 | $ 500 | ||||||||
Allegheny Technologies $350 million 9.375% Senior Notes due 2019 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 9.375% | |||||||||
Debt instrument carrying amount | $ 350 | |||||||||
Allegheny Technologies, $287.5 million Convertible Senior Notes, 4.75%, Due 2022 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument issuer | Allegheny Technologies | Allegheny Technologies | ||||||||
Debt instrument interest rate stated percentage | 4.75% | 4.75% | ||||||||
Debt instrument carrying amount | $ 287.5 | $ 287.5 | ||||||||
2022 Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument issuer | Allegheny Technologies | Allegheny Technologies | ||||||||
Debt instrument interest rate stated percentage | 5.44% | |||||||||
Debt instrument carrying amount | $ 100 | $ 100 | ||||||||
Allegheny Ludlum 6.95% Debentures due 2025 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument issuer | Allegheny Ludlum | Allegheny Ludlum | ||||||||
Debt instrument interest rate stated percentage | 6.95% | 6.95% | ||||||||
Debt instrument carrying amount | $ 150 | $ 150 | ||||||||
Domestic Bank Group $400 million asset-based credit facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument carrying amount | 0 | 0 | ||||||||
Other [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument carrying amount | 15 | 10 | ||||||||
Foreign credit agreements [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument carrying amount | $ 0 | $ 6.3 | ||||||||
Maximum [Member] | Allegheny Technologies $500 million 5.875% Senior Notes due 2023 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt instrument interest rate stated percentage | 7.875% | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | 2022 Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate spread | 2.50% | 3.00% | 3.50% | |||||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Domestic Bank Group $400 million asset-based credit facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate spread | 1.75% | 2.00% | ||||||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Domestic Bank Group $400 million asset-based credit facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate spread | 2.25% | 2.50% | ||||||||
[1] | Bearing interest at 7.875% effective February 15, 2016. |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jun. 02, 2016USD ($)$ / shares | Sep. 30, 2018 | Dec. 31, 2017USD ($) | Jun. 30, 2017 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 31, 2018USD ($) | May 24, 2016USD ($) | Feb. 15, 2016 | [1] | Dec. 31, 2013 | |
Interest Costs Incurred [Abstract] | |||||||||||||
Interest expense | $ 102,100,000 | $ 134,900,000 | $ 125,400,000 | ||||||||||
Interest costs capitalized | 4,100,000 | 2,600,000 | 4,700,000 | ||||||||||
Interest costs paid | 102,600,000 | 133,800,000 | 127,200,000 | ||||||||||
Interest income | 1,100,000 | 1,100,000 | 1,400,000 | ||||||||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||||||||||
2,019 | 6,600,000 | ||||||||||||
2,020 | 4,700,000 | ||||||||||||
2,021 | 502,000,000 | ||||||||||||
2,022 | 388,800,000 | ||||||||||||
2,023 | 500,400,000 | ||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Payments of debt issuance costs | 0 | 800,000 | 10,400,000 | ||||||||||
Debt extinguishment charge | $ 37,000,000 | 0 | 37,000,000 | 0 | |||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 0 | 35,800,000 | 0 | ||||||||||
Write off of Deferred Debt Issuance Cost | 1,200,000 | ||||||||||||
Allegheny Technologies $500 million 5.875% Senior Notes due 2023 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument interest rate stated percentage | 7.875% | 5.875% | |||||||||||
Increase in interest expense per downgrade notch, percent | 0.25% | ||||||||||||
Maximum number of downgrade notches | 4 | ||||||||||||
Maximum increase in interest rate expense, percent | 2.00% | ||||||||||||
Debt instrument carrying amount | [1] | 500,000,000 | $ 500,000,000 | 500,000,000 | |||||||||
Allegheny Technologies $500 million 5.875% Senior Notes due 2023 [Member] | Maximum [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument interest rate stated percentage | 7.875% | ||||||||||||
Asset-based lending credit facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit maximum borrowing capacity | $ 500,000,000 | ||||||||||||
Domestic Bank Group $400 million credit agreement [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Average outstanding amount | $ 43,000,000 | $ 37,000,000 | |||||||||||
Interest rate during period | 3.70% | 3.30% | |||||||||||
Domestic Bank Group $400 million asset-based credit facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument carrying amount | 0 | $ 0 | $ 0 | ||||||||||
Line of credit facility amount outstanding | 35,300,000 | ||||||||||||
2022 Term Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument interest rate stated percentage | 5.44% | ||||||||||||
Payments of debt issuance costs | 800,000 | $ 1,000,000 | |||||||||||
Debt instrument carrying amount | $ 100,000,000 | 100,000,000 | $ 100,000,000 | ||||||||||
Debt Instrument, Prepayment Increments, Minimum | $ 50,000,000 | ||||||||||||
2022 Term Loan [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate spread | 2.50% | 3.00% | 3.50% | ||||||||||
Allegheny Technologies, Convertible Senior Notes, 4.75%, Due 2022 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument interest rate stated percentage | 4.75% | 4.75% | 4.75% | ||||||||||
Debt instrument carrying amount | $ 287,500,000 | $ 287,500,000 | $ 287,500,000 | ||||||||||
Allegheny Technologies, Convertible Senior Notes, 4.75%, Due 2022 [Member] | Convertible Debt [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument interest rate stated percentage | 4.75% | ||||||||||||
Payments of debt issuance costs | $ 9,400,000 | ||||||||||||
Amortization period of debt issuance costs | 6 years | ||||||||||||
Long-term debt | $ 287,500,000 | ||||||||||||
Convertible debt conversion rate in shares of stock | 0.0692042 | ||||||||||||
Number of equity instruments issuable | 19,900,000 | ||||||||||||
Conversion price of convertible notes | $ / shares | $ 14.45 | ||||||||||||
Allegheny Technologies $350 million 9.375% Senior Notes due 2019 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt instrument interest rate stated percentage | 9.375% | ||||||||||||
Debt instrument carrying amount | $ 350,000,000 | ||||||||||||
STAL Revolving Credit Facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit maximum borrowing capacity | $ 20,000,000 | ||||||||||||
Joint venture ownership percentage | 60.00% | ||||||||||||
Revolving Credit Facility [Member] | Domestic Bank Group $400 million asset-based credit facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit maximum borrowing capacity | $ 400,000,000 | ||||||||||||
Payments of debt issuance costs | $ 1,000,000 | $ 2,400,000 | |||||||||||
Fixed charge coverage ratio | 1 | ||||||||||||
Remaining borrowing capacity, percent of minimum borrowing capacity | 10.00% | ||||||||||||
Minimum remaining borrowing capacity | $ 40,000,000 | ||||||||||||
Minimum required liquidity | $ 700,000,000 | ||||||||||||
Minimum required liquidity, number of days prior | 91 days | ||||||||||||
Revolving Credit Facility [Member] | Domestic Bank Group $400 million asset-based credit facility [Member] | Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate spread | 1.75% | 2.00% | |||||||||||
Revolving Credit Facility [Member] | Domestic Bank Group $400 million asset-based credit facility [Member] | Minimum [Member] | Base Rate [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate spread | 1.00% | ||||||||||||
Revolving Credit Facility [Member] | Domestic Bank Group $400 million asset-based credit facility [Member] | Maximum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate spread | 2.25% | 2.50% | |||||||||||
Revolving Credit Facility [Member] | Domestic Bank Group $400 million asset-based credit facility [Member] | Maximum [Member] | Base Rate [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Variable rate spread | 1.50% | ||||||||||||
Letter of Credit [Member] | Domestic Bank Group $400 million asset-based credit facility [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit maximum borrowing capacity | $ 200,000,000 | ||||||||||||
Interest Rate Swap [Member] | 2022 Term Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Derivative notional amount | $ 50,000,000 | ||||||||||||
[1] | Bearing interest at 7.875% effective February 15, 2016. |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging - Narrative (Details) € in Millions, lb in Millions, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018USD ($)lb | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2018EUR (€) | Jul. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||
Maximum amount of time hedged for nickel requirements | 2,023 | |||||
Percentage of estimated annual nickel requirements | 12.00% | |||||
Derivative [Line Items] | ||||||
Pre-tax cash flow hedge gain (loss) to be reclassified within twelve months | $ (5.7) | |||||
Nickel [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative notional amount (in pounds of nickel) | lb | 12 | |||||
Cash Flow Hedging [Member] | Natural gas contracts [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Percentage of forecasted natural gas usage hedged for 2020 | 40.00% | |||||
Pre-tax loss on ineffective portion of hedge | $ 1.3 | |||||
Percentage Of Forecasted Natural Gas Usage Hedged for 2019 | 60.00% | |||||
Cash Flow Hedging [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Maturity Dates Through 2019 [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative notional amount | € | € 9 | |||||
Fair Value Hedging [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Maturity Dates Through 2017 [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount of derivatives entered during period | € | € 244.7 | |||||
Cost of Sales [Member] | Fair Value Hedging [Member] | Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivative [Line Items] | ||||||
Gain (loss) on derivatives | $ (2.7) | $ 1 | ||||
2022 Term Loan [Member] | ||||||
Derivative [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.44% | |||||
2022 Term Loan [Member] | Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Derivative notional amount | $ 50 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging - Schedule of Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | $ 3.4 | $ 16.5 |
Fair value of derivative liability | 10.4 | 5.5 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 3 | 16.4 |
Fair value of derivative liability | 10.4 | 5.5 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0.4 | 0.1 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 0.6 | 0 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument [Member] | Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0.4 | 0.1 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 0.2 | 0 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 0.3 | 0 |
Nickel and other raw material contracts [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 1.2 | 10.5 |
Nickel and other raw material contracts [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0.8 | 5.5 |
Nickel and other raw material contracts [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 6.8 | 2.1 |
Nickel and other raw material contracts [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 2.1 | 2.2 |
Natural gas contracts [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other current assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0.8 | 0.1 |
Natural gas contracts [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative asset | 0.2 | 0.3 |
Natural gas contracts [Member] | Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | 0.1 | 0.9 |
Natural gas contracts [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Fair value of derivative liability | $ 0.3 | $ 0.3 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging - Schedule of Derivative Instruments Gain (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | $ (6.4) | $ 14.3 | $ 21.2 | |
Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | (4.9) | 11.1 | ||
Cost of Sales and Interest Expense [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | [1] | 8.9 | ||
Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | [1] | 4.5 | ||
Nickel and other raw material contracts [Member] | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | (6.4) | 14.1 | ||
Nickel and other raw material contracts [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | [1] | 7.7 | (2.1) | |
Natural gas contracts [Member] | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | 1.5 | (2.8) | ||
Natural gas contracts [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | [1] | 0.4 | (3.3) | |
Foreign Exchange Contract [Member] | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | 0.5 | (0.2) | ||
Foreign Exchange Contract [Member] | Cost of Sales [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | [1] | 1 | 9.9 | |
Interest Rate Swap [Member] | Other Comprehensive Income (Loss) [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Recognized in OCI on Derivatives | (0.5) | 0 | ||
Interest Rate Swap [Member] | Interest Expense [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (Effective Portion) | [1] | $ (0.2) | $ 0 | |
[1] | The gains (losses) reclassified from accumulated OCI into income related to the derivatives, with the exception of the interest rate swap, are presented in cost of sales in the same period or periods in which the hedged item affects earnings. The gains (losses) reclassified from accumulated OCI into income on the interest rate swap are presented in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings. |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging - Schedule of Derivatives Not Designated as Hedging Instruments Gain (Loss) (Details) - Not Designated as Hedging Instrument [Member] € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2018EUR (€) | |
Foreign Exchange Contract [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ | $ 0.3 | $ (0.8) | |
Maturity Dates Through 2019 [Member] | Foreign Exchange Forward [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | € | € 7 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 382 | $ 141.6 |
Derivative financial instruments: Assets | 0 | 0 |
Derivative financial instruments: Liabilities | 0 | 0 |
Debt | 1,624.4 | 1,736.9 |
Fair Value Measurements at Reporting Date Using Significant Observable Inputs (Level 2) | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Derivative financial instruments: Assets | 3.4 | 16.5 |
Derivative financial instruments: Liabilities | 10.4 | 5.5 |
Debt | 115 | 116.3 |
Total Carrying Amount | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 382 | 141.6 |
Derivative financial instruments: Assets | 3.4 | 16.5 |
Derivative financial instruments: Liabilities | 10.4 | 5.5 |
Debt | 1,552.5 | 1,553.8 |
Fair Value Measurements at Reporting Date Using Total Estimated Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 382 | 141.6 |
Derivative financial instruments: Assets | 3.4 | 16.5 |
Derivative financial instruments: Liabilities | 10.4 | 5.5 |
Debt | $ 1,739.4 | $ 1,853.2 |
Fair Value Of Financial Instr_4
Fair Value Of Financial Instruments - Narrative (Details) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Feb. 15, 2016 | [1] | Dec. 31, 2013 |
Allegheny Technologies $350 million 9.375% Senior Notes due 2019 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument interest rate stated percentage | 9.375% | |||||
Allegheny Technologies $500 million 5.95% Senior Notes due 2021 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument interest rate stated percentage | 5.95% | 5.95% | ||||
Allegheny Technologies $500 million 5.95% Senior Notes due 2021 [Member] | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument interest rate stated percentage | 5.95% | |||||
Allegheny Technologies, Convertible Senior Notes, 4.75%, Due 2022 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument interest rate stated percentage | 4.75% | 4.75% | ||||
Allegheny Technologies $500 million 5.875% Senior Notes due 2023 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument interest rate stated percentage | 7.875% | 5.875% | ||||
Allegheny Technologies $500 million 5.875% Senior Notes due 2023 [Member] | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument interest rate stated percentage | 5.875% | |||||
Allegheny Ludlum 6.95% Debentures due 2025 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument interest rate stated percentage | 6.95% | 6.95% | ||||
Allegheny Ludlum 6.95% Debentures due 2025 [Member] | Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Assets (Level 1) | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument interest rate stated percentage | 6.95% | |||||
Convertible Debt [Member] | Allegheny Technologies, Convertible Senior Notes, 4.75%, Due 2022 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument interest rate stated percentage | 4.75% | |||||
[1] | Bearing interest at 7.875% effective February 15, 2016. |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) shares in Millions, $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018USD ($)employeeshares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Projected Retirement Benefit Expense In Next 12 months | $ 88 | ||||||
Defined Contribution Plan, Cost | $ 39.9 | $ 35.5 | $ 34.5 | ||||
Other Postretirement Benefits [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Discount rate | [1] | 3.80% | 4.35% | ||||
Curtailment loss | $ 0 | $ 0 | $ 0 | ||||
Employer contributions | 0 | 0 | |||||
Projected Retirement Benefit Expense In Next 12 months | 27 | ||||||
Defined Contribution Plan, Cost | $ 1 | $ 1.7 | |||||
Assumed increase in per capita cost of covered benefits in next 12 months | 6.40% | ||||||
Assumed ultimate health care cost trend rate | 4.50% | ||||||
Year that ultimate trend rate is reached | 2,038 | ||||||
Expected long-term rate of return on assets | 4.00% | 4.00% | 4.00% | ||||
Fair value of plan assets | $ 0.1 | $ 0.6 | $ 0.7 | ||||
Pension Benefits [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Discount rate | [1] | 3.85% | 4.45% | 4.65% | |||
Curtailment loss | $ (0.4) | $ 0 | $ 0 | ||||
Employer contributions | 49.3 | 143.4 | |||||
Projected Retirement Benefit Expense In Next 12 months | 61 | ||||||
Accumulated benefit obligation | $ 2,482.5 | $ 2,810.5 | |||||
Expected long-term rate of return on assets | 7.75% | 7.75% | 8.00% | ||||
Actual return on plan assets | (4.80%) | 16.90% | 5.30% | (1.20%) | 6.50% | ||
Fair value of plan assets | $ 1,772.2 | $ 2,129.6 | $ 1,894.6 | ||||
Defined Benefit Plan, Weighted Average Life Expectancy | 17 years | ||||||
Pension Benefits [Member] | Global debt securities and cash [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Unfunded commitments | $ 41 | ||||||
Pension Benefits [Member] | Private equity [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Unfunded commitments | 84 | ||||||
Fair value of plan assets | 137.1 | 137.5 | |||||
Pension Benefits [Member] | Hedge funds [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Fair value of plan assets | 258.3 | 307.4 | |||||
Pension Benefits [Member] | Real estate and other [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Unfunded commitments | 51 | ||||||
Fair value of plan assets | 52.7 | 93.9 | |||||
Pension Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Fair value of plan assets | 0 | 0 | |||||
Pension Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Private equity [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Fair value of plan assets | 0 | 0 | |||||
Pension Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Hedge funds [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Fair value of plan assets | 0 | 0 | |||||
Pension Benefits [Member] | Fair Value, Inputs, Level 3 [Member] | Real estate and other [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Fair value of plan assets | 0 | $ 0 | |||||
Pension Benefits [Member] | Forecast [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Expected long-term rate of return on assets | 7.60% | ||||||
Pension Benefits [Member] | MultiemployerPlan1 [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Percent of Current Year Contributions to Plan that Company Contributions Exceed | 5.00% | ||||||
Pension Benefits [Member] | Nonqualified and U.K. [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Estimated employer contributions in next 12 months | $ 8 | ||||||
Pension Benefits [Member] | U.S. [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Defined benefit plan, number of employees accruing benefit service | employee | 1,600 | ||||||
Defined Benefit Plan, Percent Of Employees accruing benefit service | 10.00% | ||||||
Employer contributions | $ 40 | $ 135 | $ 115 | ||||
Estimated employer contributions in next 12 months | $ 145 | ||||||
Percentage of total assets | 90.00% | ||||||
Number of shares of equity securities issued by employer included in plan assets | shares | 0 | 3 | |||||
Fair value of employer equity securities included in plan assets | $ 71.3 | ||||||
Voluntary lump sum cash out [Member] | Pension Benefits [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Benefits paid | $ 22 | ||||||
Small annuity buy out [Member] | Pension Benefits [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Benefits paid | $ 97 | ||||||
Small annuity buy out [Member] | Pension Benefits [Member] | U.S. [Member] | |||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||
Number of participants | employee | 3,700 | ||||||
Percent of U.S. employees as participants | 17.00% | ||||||
[1] | Other postretirement benefits expense for 2016 was initially measured at a 4.50% discount rate. A portion of the obligation was remeasured using a 4.05% discount rate as of March 1, 2016, following a new CBA. |
Retirement Benefits (Details 1)
Retirement Benefits (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Contribution Plan, Cost | $ 39.9 | $ 35.5 | $ 34.5 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | (0.4) | 0 | |
Service cost - benefits earned during the year | 16.4 | 14.1 | 20.6 |
Interest cost on benefits earned in prior years | 104.8 | 116.7 | 125.4 |
Expected return on plan assets | (157.9) | (146.9) | (148.7) |
Amortization of prior service cost (credit) | 0.3 | 1.3 | 1.3 |
Amortization of net actuarial loss | 65.9 | 62.6 | 65.4 |
Curtailment loss | 0.4 | 0 | 0 |
Termination benefits | 0 | 0 | 1.1 |
Total retirement benefit expense | 29.9 | 47.8 | 65.1 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Benefit Obligation, (Increase) Decrease for Curtailment | 0 | 0 | |
Defined Contribution Plan, Cost | 1 | 1.7 | |
Service cost - benefits earned during the year | 2.5 | 2.4 | 2.6 |
Interest cost on benefits earned in prior years | 12.7 | 14.6 | 16 |
Expected return on plan assets | 0 | 0 | (0.1) |
Amortization of prior service cost (credit) | (2.9) | (2.9) | (1.7) |
Amortization of net actuarial loss | 10.6 | 9 | 9.6 |
Curtailment loss | 0 | 0 | 0 |
Termination benefits | 0 | 0 | 2.3 |
Total retirement benefit expense | $ 22.9 | $ 23.1 | $ 28.7 |
Retirement Benefits (Details 2)
Retirement Benefits (Details 2) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Pension Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | [1] | 3.85% | 4.45% | 4.65% |
Expected long-term rate of return on assets | 7.75% | 7.75% | 8.00% | |
Pension Benefits [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Rate of increase in future compensation levels | 0.50% | 0.50% | 3.00% | |
Pension Benefits [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Rate of increase in future compensation levels | 1.00% | 1.00% | 3.50% | |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | [1] | 3.80% | 4.35% | |
Rate of increase in future compensation levels | 0.00% | 0.00% | 0.00% | |
Expected long-term rate of return on assets | 4.00% | 4.00% | 4.00% | |
Other Postretirement Benefits [Member] | Minimum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | [1] | 4.05% | ||
Other Postretirement Benefits [Member] | Maximum [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | [1] | 4.50% | ||
[1] | Other postretirement benefits expense for 2016 was initially measured at a 4.50% discount rate. A portion of the obligation was remeasured using a 4.05% discount rate as of March 1, 2016, following a new CBA. |
Retirement Benefits (Details 3)
Retirement Benefits (Details 3) | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.40% | 3.85% |
Pension Benefits [Member] | Minimum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of increase in future compensation levels | 0.50% | 0.50% |
Pension Benefits [Member] | Maximum [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of increase in future compensation levels | 1.00% | 1.00% |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.35% | 3.80% |
Rate of increase in future compensation levels | 0.00% | 0.00% |
Retirement Benefits (Details 4)
Retirement Benefits (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | $ 2,829.8 | $ 2,727.7 | |
Service cost | 16.4 | 14.1 | $ 20.6 |
Interest cost | 104.8 | 116.7 | 125.4 |
Benefits paid | (294.5) | (220.1) | |
Subsidy paid | 0 | 0 | |
Effect of currency rates | (4.5) | 7.4 | |
Net actuarial (gains) losses - discount rate change | (150.4) | 174.6 | |
Net actuarial (gains) losses - other | (5.7) | 9.4 | |
Plan curtailments | 0.4 | 0 | |
Plan amendments | 1.4 | 0 | |
Benefit obligation at end of year | 2,497.7 | 2,829.8 | 2,727.7 |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at beginning of year | 349.9 | 354.8 | |
Service cost | 2.5 | 2.4 | 2.6 |
Interest cost | 12.7 | 14.6 | 16 |
Benefits paid | (36.5) | (38.6) | |
Subsidy paid | 0 | 0.6 | |
Effect of currency rates | 0 | 0 | |
Net actuarial (gains) losses - discount rate change | (17.8) | 16.6 | |
Net actuarial (gains) losses - other | 48.3 | (0.5) | |
Plan curtailments | 0 | 0 | |
Plan amendments | 0 | 0 | |
Benefit obligation at end of year | $ 359.1 | $ 349.9 | $ 354.8 |
Retirement Benefits (Details 5)
Retirement Benefits (Details 5) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | $ 2,129.6 | $ 1,894.6 |
Actual returns on plan assets and plan expenses | (107.2) | 304.1 |
Employer contributions | 49.3 | 143.4 |
Effect of currency rates | (5) | 7.6 |
Benefits paid | (294.5) | (220.1) |
Fair value of plan assets at end of year | 1,772.2 | 2,129.6 |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0.6 | 0.7 |
Actual returns on plan assets and plan expenses | (0.5) | 0.2 |
Employer contributions | 0 | 0 |
Effect of currency rates | 0 | 0 |
Benefits paid | 0 | (0.3) |
Fair value of plan assets at end of year | $ 0.1 | $ 0.6 |
Retirement Benefits (Details 6)
Retirement Benefits (Details 6) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | $ 9.2 | $ 2.1 |
Current liabilities | (4.7) | (5.3) |
Noncurrent liabilities | (730) | (697) |
Total amount recognized | (725.5) | (700.2) |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent assets | 0 | 0 |
Current liabilities | (40.6) | (31.5) |
Noncurrent liabilities | (318.4) | (317.8) |
Total amount recognized | $ (359) | $ (349.3) |
Retirement Benefits (Details 7)
Retirement Benefits (Details 7) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |||
Amortization of net actuarial loss | $ 76.5 | $ 71.6 | $ 75 |
Amortization to net income (loss) of net prior service cost (credits) | (2.6) | (1.6) | (0.4) |
Net loss arising during the period | (141.4) | (42.7) | (92.1) |
Pension Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |||
Beginning of year accumulated other comprehensive loss | (1,426.1) | (1,462.7) | |
Amortization of net actuarial loss | 65.9 | 62.6 | |
Amortization to net income (loss) of net prior service cost (credits) | 0.3 | 1.3 | |
Net loss arising during the period | (110.4) | (27.3) | |
End of year accumulated other comprehensive loss | (1,470.3) | (1,426.1) | (1,462.7) |
Net change in accumulated other comprehensive loss | (44.2) | 36.6 | |
Other Postretirement Benefits [Member] | |||
Accumulated Other Comprehensive Income (Loss), before Tax [Roll Forward] | |||
Beginning of year accumulated other comprehensive loss | (83.7) | (74.4) | |
Amortization of net actuarial loss | 10.6 | 9 | |
Amortization to net income (loss) of net prior service cost (credits) | (2.9) | (2.9) | |
Net loss arising during the period | (31) | (15.4) | |
End of year accumulated other comprehensive loss | (107) | (83.7) | $ (74.4) |
Net change in accumulated other comprehensive loss | $ (23.3) | $ (9.3) |
Retirement Benefits (Details 8)
Retirement Benefits (Details 8) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service (cost) credit | $ (2.1) | $ (1) | |
Net actuarial loss | (1,468.2) | (1,425.1) | |
Accumulated other comprehensive loss | (1,470.3) | (1,426.1) | $ (1,462.7) |
Deferred tax effect | 536.2 | 525.6 | |
Accumulated other comprehensive loss, net of tax | (934.1) | (900.5) | |
Other Postretirement Benefits [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service (cost) credit | 8.8 | 11.7 | |
Net actuarial loss | (115.8) | (95.4) | |
Accumulated other comprehensive loss | (107) | (83.7) | $ (74.4) |
Deferred tax effect | 35.3 | 29.7 | |
Accumulated other comprehensive loss, net of tax | $ (71.7) | $ (54) |
Retirement Benefits (Details 9)
Retirement Benefits (Details 9) $ in Millions | Dec. 31, 2018USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service cost (credit) | $ (2.6) |
Amortization of net actuarial loss | 87.1 |
Amortization of accumulated other comprehensive loss | 84.5 |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service cost (credit) | 0.3 |
Amortization of net actuarial loss | 73.7 |
Amortization of accumulated other comprehensive loss | 74 |
Other Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service cost (credit) | (2.9) |
Amortization of net actuarial loss | 13.4 |
Amortization of accumulated other comprehensive loss | $ 10.5 |
Retirement Benefits (Details 10
Retirement Benefits (Details 10) - Pension Benefits [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Projected benefit obligation | $ 2,420.8 | $ 2,737.4 |
Accumulated benefit obligation | 2,405.6 | 2,718 |
Fair value of plan assets | $ 1,686.1 | $ 2,035.1 |
Retirement Benefits (Details 14
Retirement Benefits (Details 14) $ in Millions | Dec. 31, 2018USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Expected Future Benefit Payments [Abstract] | |
2,019 | $ 186.6 |
2,020 | 180.7 |
2,021 | 177.9 |
2,022 | 176.1 |
2,023 | 173.9 |
2024-2028 | 825 |
Other Postretirement Benefits [Member] | |
Defined Benefit Plan Expected Future Benefit Payments [Abstract] | |
2,019 | 40.6 |
2,020 | 38.2 |
2,021 | 35.6 |
2,022 | 33.1 |
2,023 | 30.8 |
2024-2028 | 123.9 |
Medicare Part D Subsidy [Abstract] | |
2,019 | 0.6 |
2,020 | 0.6 |
2,021 | 0.6 |
2,022 | 0.5 |
2,023 | 0.5 |
2024-2028 | $ 1.9 |
Retirement Benefits (Details 11
Retirement Benefits (Details 11) - Pension Benefits [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 1,772.2 | $ 2,129.6 | $ 1,894.6 |
NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
NAV | 1,189.5 | 1,404.4 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 212.2 | 323.5 | |
Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 370.5 | 401.7 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities: ATI common stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 71.3 | ||
Equity Securities: ATI common stock [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
NAV | 0 | ||
Equity Securities: ATI common stock [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 71.3 | ||
Equity Securities: ATI common stock [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Equity Securities: ATI common stock [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | ||
Equity Securities: Other U.S. equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 362.9 | 416 | |
Equity Securities: Other U.S. equities [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
NAV | 219.9 | 267.7 | |
Equity Securities: Other U.S. equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 143 | 148.3 | |
Equity Securities: Other U.S. equities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities: Other U.S. equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities: International equities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 377.4 | 432.5 | |
Equity Securities: International equities [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
NAV | 335.7 | 385.9 | |
Equity Securities: International equities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 41.7 | 46.6 | |
Equity Securities: International equities [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Equity Securities: International equities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Fixed income and cash equivalents [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 493.7 | 501.1 | |
Fixed income and cash equivalents [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
NAV | 116.9 | 92.6 | |
Fixed income and cash equivalents [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.3 | 10 | |
Fixed income and cash equivalents [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 370.5 | 398.5 | |
Fixed income and cash equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Floating rate [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 90.1 | 169.9 | |
Floating rate [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
NAV | 68.9 | 122.6 | |
Floating rate [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 21.2 | 47.3 | |
Floating rate [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Floating rate [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Private equity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 137.1 | 137.5 | |
Private equity [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
NAV | 137.1 | 137.5 | |
Private equity [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Private equity [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Private equity [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 258.3 | 307.4 | |
Hedge funds [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
NAV | 258.3 | 307.4 | |
Hedge funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge funds [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Hedge funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Real estate and other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 52.7 | 93.9 | |
Real estate and other [Member] | NAV [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
NAV | 52.7 | 90.7 | |
Real estate and other [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Real estate and other [Member] | Significant Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 3.2 | |
Real estate and other [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Retirement Benefits (Details 13
Retirement Benefits (Details 13) - Pension Benefits [Member] | 12 Months Ended |
Dec. 31, 2018 | |
Minimum [Member] | Global Equity Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | .3 |
Minimum [Member] | Global debt securities and cash [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | .15 |
Minimum [Member] | Private equity [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 0 |
Minimum [Member] | Hedge funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | .10 |
Minimum [Member] | Real estate and other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 0 |
Maximum [Member] | Global Equity Securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | .6 |
Maximum [Member] | Global debt securities and cash [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | .4 |
Maximum [Member] | Private equity [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | .15 |
Maximum [Member] | Hedge funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | .2 |
Maximum [Member] | Real estate and other [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target asset allocation | 0.1 |
Retirement Benefits (Details 17
Retirement Benefits (Details 17) - Pension Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Multiemployer Plan Disclosure [Line Items] | ||||
Company Contributions | $ 5.4 | $ 4.5 | $ 4.6 | |
Steelworkers Western Independent Shops Pension Plan [Member] | ||||
Multiemployer Plan Disclosure [Line Items] | ||||
EIN | 900,169,564 | |||
Pension Plan Number | 1 | |||
Pension Protection Act Zone Status | [1] | Green | Green | |
FIP / RP Status Pending / Implemented | [2] | NA | ||
Company Contributions | $ 0.8 | $ 0.6 | 1.2 | |
Surcharge Imposed | [3] | No | ||
Expiration Dates of Collective Bargaining Agreements | Feb. 29, 2020 | |||
Boilermakers-Blacksmiths National Pension Trust [Member] | ||||
Multiemployer Plan Disclosure [Line Items] | ||||
EIN | 486,168,020 | |||
Pension Plan Number | 1 | |||
Pension Protection Act Zone Status | [1] | Yellow | Yellow | |
FIP / RP Status Pending / Implemented | [2] | Implemented | ||
Company Contributions | $ 2.5 | $ 2.2 | 1.8 | |
Surcharge Imposed | [3] | No | ||
Expiration Dates of Collective Bargaining Agreements | Sep. 30, 2026 | |||
IAM National Pension Fund [Member] | ||||
Multiemployer Plan Disclosure [Line Items] | ||||
EIN | 516,031,295 | |||
Pension Plan Number | 2 | |||
Pension Protection Act Zone Status | [1] | Green | Green | |
FIP / RP Status Pending / Implemented | [2] | NA | ||
Company Contributions | $ 2.1 | $ 1.7 | $ 1.6 | |
Surcharge Imposed | [3] | No | ||
Expiration Dates of Collective Bargaining Agreements, First Date | [4] | Jul. 14, 2019 | ||
Expiration Dates of Collective-Bargaining Agreements, Last Date | [4] | Apr. 25, 2022 | ||
[1] | The most recent Pension Protection Act Zone Status available for ATI’s fiscal years 2018 and 2017 is for plan years ending in calendar years 2017 and 2016, respectively. The zone status is based on information provided to ATI and other participating employers by each plan and is certified by the plan’s actuary. A plan in the “red” zone had been determined to be in “critical status”, based on criteria established by the Code, and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Code, and is generally less than 80% funded. A plan in the “green” zone has been determined to be neither in “critical status” nor in “endangered status”, and is generally at least 80% funded. | |||
[2] | The “FIP / RP Status Pending / Implemented” column indicates whether a Funding Improvement Plan, as required under the Code by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2018. | |||
[3] | The “Surcharge Imposed” column indicates whether ATI’s contribution rate for 2018 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status”, in accordance with the requirements of the Code. | |||
[4] | The Company is party to five separate bargaining agreements that require contributions to this plan. Expiration dates of these collective bargaining agreements range between July 14, 2019 and April 25, 2022. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | $ (1,027.8) | $ (1,093.7) | $ (1,014.5) | |||
OCI before reclassifications | (132.5) | 10.1 | (130.4) | |||
Amounts reclassified from AOCI | 26.5 | 55.8 | 51.2 | |||
Net current-period OCI | (106) | 65.9 | (79.2) | |||
Ending balance | (1,133.8) | (1,027.8) | (1,093.7) | |||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Beginning balance | 17.3 | 9.7 | 19.4 | |||
OCI before reclassifications | (6.2) | 7.6 | (9.7) | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | |||
Net current-period OCI | (6.2) | 7.6 | (9.7) | |||
Ending balance | 11.1 | 17.3 | 9.7 | |||
Post- retirement benefit plans [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (954.5) | (965.5) | (951.2) | |||
OCI before reclassifications | (107.2) | (32.5) | (60.6) | |||
Amounts reclassified from AOCI | [1] | 55.9 | 43.5 | 46.3 | ||
Net current-period OCI | (51.3) | 11 | (14.3) | |||
Ending balance | (1,005.8) | (954.5) | (965.5) | |||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | |||
OCI before reclassifications | 0 | 0 | 0 | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | |||
Net current-period OCI | 0 | 0 | 0 | |||
Ending balance | 0 | 0 | 0 | |||
Currency translation adjustment [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (53.5) | (85) | (47.6) | |||
OCI before reclassifications | (20.4) | 31.5 | (37.4) | |||
Amounts reclassified from AOCI | [2] | 0 | 0 | 0 | ||
Net current-period OCI | (20.4) | 31.5 | (37.4) | |||
Ending balance | (73.9) | (53.5) | (85) | |||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Beginning balance | 17.3 | 9.7 | 19.4 | |||
OCI before reclassifications | (6.2) | 7.6 | (9.7) | |||
Amounts reclassified from AOCI | [2] | 0 | 0 | 0 | ||
Net current-period OCI | (6.2) | 7.6 | (9.7) | |||
Ending balance | 11.1 | 17.3 | 9.7 | |||
Derivatives [Member] | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | 9 | 2.4 | (15.7) | |||
OCI before reclassifications | (4.9) | 11.1 | 13.2 | |||
Amounts reclassified from AOCI | [3] | (8.9) | (4.5) | 4.9 | ||
Net current-period OCI | (13.8) | 6.6 | 18.1 | |||
Ending balance | (4.8) | 9 | 2.4 | |||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | |||
OCI before reclassifications | 0 | 0 | 0 | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | |||
Net current-period OCI | 0 | 0 | 0 | |||
Ending balance | 0 | 0 | 0 | |||
Accumulated Deferred Tax Asset Valuation Allowance | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning balance | (28.8) | (45.6) | 0 | |||
OCI before reclassifications | 0 | 0 | (45.6) | |||
Amounts reclassified from AOCI | (20.5) | [4] | 16.8 | [4] | 0 | |
Net current-period OCI | (20.5) | 16.8 | (45.6) | |||
Ending balance | (49.3) | (28.8) | (45.6) | |||
Increase (Decrease) in Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Beginning balance | 0 | 0 | 0 | |||
OCI before reclassifications | 0 | 0 | 0 | |||
Amounts reclassified from AOCI | 0 | 0 | 0 | |||
Net current-period OCI | 0 | 0 | 0 | |||
Ending balance | $ 0 | $ 0 | $ 0 | |||
[1] | Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 12). | |||||
[2] | No amounts were reclassified to earnings. | |||||
[3] | For 2018, following the Company’s January 1, 2018 adoption of changes issued by the FASB related to accounting guidance for derivatives, amounts related to derivatives are included in cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 10). For 2016 and 2017, amounts related to the effective portion of the derivatives were included in cost of goods sold in the period or periods the hedged item affects earnings, and amounts related to the ineffective portion of the derivatives were presented in selling and administrative expenses on the consolidated statements of operations (see Note 10). | |||||
[4] | Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Details2) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization to net income (loss) of net prior service cost (credits) | $ (2.6) | $ (1.6) | $ (0.4) | |
Amortization of net actuarial loss | 76.5 | 71.6 | 75 | |
Cost of sales | (3,416.3) | (3,028.1) | (2,911.8) | |
Income (loss) before income taxes | 247.7 | (86.5) | (734) | |
Income tax provision (benefit) | 11 | (6.8) | (106.9) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Post- retirement benefit plans [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization to net income (loss) of net prior service cost (credits) | [1] | 2.6 | 1.6 | 0.4 |
Amortization of net actuarial loss | [1] | (76.5) | (71.6) | (75) |
Income (loss) before income taxes | [2] | (73.9) | (70) | (74.6) |
Income tax provision (benefit) | [3] | (18) | (26.5) | (28.3) |
Income (loss) | (55.9) | (43.5) | (46.3) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income (loss) before income taxes | [2] | 11.7 | 7.2 | (7.9) |
Income tax provision (benefit) | [3] | 2.8 | 2.7 | (3) |
Income (loss) | 8.9 | 4.5 | (4.9) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Nickel and other raw material contracts [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | [4] | 10.2 | (3.4) | (19.5) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Natural gas contracts [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | [4] | 0.5 | (5.3) | |
Cost of Goods Sold and Selling, General and Administrative Expenses | [4] | (14.8) | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Electricity contracts [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | [4] | 0 | 0 | 0 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Foreign Exchange Contract [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of sales | [4] | 1.3 | 15.9 | 26.4 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Derivatives [Member] | Interest Rate Swap [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest Expense | [4] | $ (0.3) | $ 0 | $ 0 |
[1] | Amounts are included in nonoperating retirement benefit expense (see Note 12). | |||
[2] | For pretax items, positive amounts are income and negative amounts are expense in terms of the impact to net income. Tax effects are presented in conformity with ATI’s presentation in the consolidated statements of operations. | |||
[3] | These amounts exclude the impact of any deferred tax asset valuation allowances, when applicable (see Note 15 for further explanation). | |||
[4] | For 2018, following the Company’s January 1, 2018 adoption of changes issued by the FASB related to accounting guidance for derivatives, amounts related to derivatives, with the exception of the interest rate swap are included in cost of goods sold in the period or periods the hedged item affects earnings. Amounts related to the interest rate swap are included in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings (see Note 10). For 2016 and 2017, amounts related to the effective portion of the derivatives were included in cost of goods sold in the period or periods the hedged item affects earnings, and amounts related to the ineffective portion of the derivatives were presented in selling and administrative expenses on the consolidated statements of operations (see Note 10). |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Millions | Nov. 07, 2017$ / sharesshares | Feb. 28, 2018shares | Feb. 28, 2017shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014shares |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||||||||
Preferred stock, issued | 0 | 0 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares issued | 17,000,000 | ||||||||
Price per share of shares issued (in dollars per share) | $ / shares | $ 24 | ||||||||
Issuance of common stock | $ | $ 0 | $ 397.8 | $ 0 | ||||||
Granted (shares) | 290,000 | 378,000 | 682,000 | ||||||
Common stock shares available for future awards | 5,300,000 | ||||||||
Shares vested | 540,000 | 591,000 | 154,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Nonvested beginning of the year (shares) | 1,055,000 | 1,320,000 | 1,852,000 | 1,652,000 | |||||
Granted (shares) | 290,000 | 378,000 | 682,000 | ||||||
Vested (shares) | (540,000) | (591,000) | (154,000) | ||||||
Forfeited (shares) | (15,000) | (319,000) | (328,000) | ||||||
Nonvested end of the year (shares) | 1,055,000 | 1,320,000 | 1,852,000 | 1,652,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||||
Beginning balance (in dollars per share) | $ / shares | $ 28,300,000 | $ 32,500,000 | $ 51,500,000 | $ 57,000,000 | |||||
Granted (in dollars per share) | $ / shares | 7,800,000 | 7,100,000 | 8,400,000 | ||||||
Vested (in dollars per share) | $ / shares | (11,700,000) | (16,900,000) | (4,300,000) | ||||||
Forfeited (in dollars per share) | $ / shares | (300,000) | (9,200,000) | (9,600,000) | ||||||
Ending balance (in dollars per share) | $ / shares | $ 28,300,000 | $ 32,500,000 | $ 51,500,000 | $ 57,000,000 | |||||
Retained Earnings Note Disclosure [Abstract] | |||||||||
Undistributed earnings of investees accounted for under equity method | $ | $ 24 | ||||||||
Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Income target attainment measurement period | 3 years | ||||||||
Restricted stock and RSUs [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | $ | $ 9.7 | $ 9.8 | $ 11.2 | ||||||
Unrecognized compensation expense | $ | $ 5.3 | ||||||||
Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Forfeited (shares) | (21,848) | (67,521) | (17,598) | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||||||||
Granted (in dollars per share) | $ / shares | $ 12,900,000 | $ 12,400,000 | $ 11,500,000 | ||||||
Forfeited (in dollars per share) | $ / shares | $ (500,000) | $ (1,000,000) | $ (200,000) | ||||||
2016 LTIP [Member] | Restricted Share Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (shares) | 587,661 | ||||||||
Shares vested | 178,335 | 190,421 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Granted (shares) | 587,661 | ||||||||
Vested (shares) | (178,335) | (190,421) | |||||||
2017 RSU [Member] | Restricted Share Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (shares) | 320,808 | ||||||||
Shares vested | 102,279 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Granted (shares) | 320,808 | ||||||||
Vested (shares) | (102,279) | ||||||||
2018 RSU [Member] | Restricted Share Units [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (shares) | 253,393 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Granted (shares) | 253,393 | ||||||||
Long-Term Shareholder Value (LTSV) 2015 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Percent of performance metric expected to be obtained | 60.00% | ||||||||
Shares vested | 73,734 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Vested (shares) | (73,734) | ||||||||
Forfeited (shares) | (49,148) | ||||||||
Long-Term Shareholder Value (LTSV) 2015 [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 3 years | ||||||||
Long-Term Shareholder Value (LTSV) 2014 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares vested | 116,989 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Vested (shares) | (116,989) | ||||||||
PRSP 2012 [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares vested | 166,929 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Vested (shares) | (166,929) | ||||||||
Forfeited (shares) | (171,083) | ||||||||
PRSP 2013 [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares vested | 233,896 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Vested (shares) | (233,896) | ||||||||
Forfeited (shares) | (244,899) | ||||||||
PRSP 2014 [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Forfeited (shares) | (214,571) | ||||||||
PRSP 2015 [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares vested | 126,585 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Vested (shares) | (126,585) | ||||||||
Forfeited (shares) | (196,196) | ||||||||
PSU [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Adjustment percentage | 20.00% | ||||||||
PSU [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Income target attainment measurement period | 3 years | ||||||||
Performance measurement period | 3 years | ||||||||
Share based compensation expense | $ | $ 11.4 | $ 3.8 | $ 1.9 | ||||||
Common stock shares available for future awards | 1,700,000 | ||||||||
Unrecognized compensation expense | $ | $ 12.1 | ||||||||
TSR Modifier [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance measurement period | 3 years | ||||||||
TSR and TSRP Awards [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | $ | $ 3.6 | $ 6.6 | |||||||
2016 PSU [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (shares) | 936,558 | ||||||||
Shares vested | 329,897 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Granted (shares) | 936,558 | ||||||||
Vested (shares) | (329,897) | ||||||||
2017 PSU [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (shares) | 589,980 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Granted (shares) | 589,980 | ||||||||
2018 PSU [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (shares) | 456,318 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||||
Granted (shares) | 456,318 | ||||||||
Minimum [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 3 years | ||||||||
Minimum [Member] | PSU [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected compensation cost | $ | $ 0 | ||||||||
Minimum [Member] | TSR and TSRP Awards [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award multiplier | 0 | ||||||||
Minimum [Member] | 2018 PSU [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Attainment level range (percent) | 25.00% | ||||||||
Minimum [Member] | 2016 and 2017 PSU [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Attainment level range (percent) | 25.00% | ||||||||
Maximum [Member] | Restricted Stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting period | 5 years | ||||||||
Maximum [Member] | PSU [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Expected compensation cost | $ | $ 34.8 | ||||||||
Maximum [Member] | TSR and TSRP Awards [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award multiplier | 2 | ||||||||
Maximum [Member] | 2018 PSU [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Attainment level range (percent) | 200.00% | ||||||||
Maximum [Member] | 2016 and 2017 PSU [Member] | Performance Awards [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Attainment level range (percent) | 150.00% | ||||||||
Forecast [Member] | Restricted stock and RSUs [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | $ | $ 4.5 | ||||||||
Forecast [Member] | PSU [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based compensation expense | $ | $ 9.6 | ||||||||
Allegheny Technologies $350 million 9.375% Senior Notes due 2019 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Debt instrument carrying amount | $ | $ 350 | ||||||||
Debt instrument interest rate stated percentage | 9.375% |
Income Taxes Income by Region (
Income Taxes Income by Region (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 190.8 | $ (119.8) | $ (782.1) |
Non-U.S. | 56.9 | 33.3 | 48.1 |
Income (loss) before income taxes | $ 247.7 | $ (86.5) | $ (734) |
Schedule of Income Tax Provisio
Schedule of Income Tax Provision (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Components Of Income Tax Expense Benefit Continuing Operations Abstract | |||
Current: Federal | $ 1 | $ (0.8) | $ 0.5 |
Current: State | (0.8) | (1.3) | (1.5) |
Current: Foreign | 10.1 | 6.2 | 14.4 |
Total Current | 10.3 | 4.1 | 13.4 |
Deferred: Federal | 1.3 | 2.4 | (115.8) |
Deferred: State | (0.5) | (14.4) | (3.5) |
Deferred: Foreign | (0.1) | 1.1 | (1) |
Total Deferred | 0.7 | (10.9) | (120.3) |
Income tax provision (benefit) | $ 11 | $ (6.8) | $ (106.9) |
Reconciliation of Federal Tax R
Reconciliation of Federal Tax Rate to Effective Tax Rate (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Taxes computed at the federal rate | $ 52 | $ (30.3) | $ (256.9) | |
Goodwill impairment | 0 | 36.6 | 0 | |
State and local income taxes, net of federal tax benefit | (0.5) | 0 | (26.8) | |
Valuation allowance | (48) | (14.5) | 171.5 | $ 74.5 |
Repatriation of foreign earnings (GILTI starting in 2018) | 5.4 | 14.2 | 2.1 | |
Impact of U.S. tax reform | 5.9 | (4.1) | 0 | |
Foreign earnings taxed at different rate | 3.2 | (3.5) | (1.2) | |
Adjustment to prior years’ taxes | (5.8) | (5.2) | 3.4 | |
Withholding taxes | 2.7 | 2.2 | 0 | |
Preferential tax rate | (4.8) | (3.7) | (4.1) | |
Other | 0.9 | 1.5 | 5.1 | |
Income tax provision (benefit) | $ 11 | $ (6.8) | $ (106.9) |
Narrative (Details)
Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($)year | |
NOL and Tax Credit Carryforwards [Line Items] | |||||
Income Taxes Receivable | $ 6,900,000 | ||||
Transition tax liability | 5,900,000 | ||||
Foreign earnings inclusion, Global Intangible Low-Taxed Income (GILTI) | 25,700,000 | ||||
Estimate of federal limit on deductible interest expense | 38,000,000 | ||||
Benefit from re-measurement of indefinite lived deferred tax liabilities | 2,600,000 | ||||
Benefit from decrease in deferred tax asset valuation allowance | 1,500,000 | ||||
Impact of U.S. tax reform | $ (4,100,000) | ||||
Number of years in cumulative loss profit position | year | 3 | ||||
Valuation allowance | (48,000,000) | $ (14,500,000) | $ 171,500,000 | $ 74,500,000 | |
Income (loss) before income taxes | 247,700,000 | (86,500,000) | (734,000,000) | ||
Income from continuing operations before income taxes, domestic | 190,800,000 | (119,800,000) | (782,100,000) | ||
Accumulated other comprehensive loss, net of tax | 1,027,800,000 | 1,133,800,000 | 1,027,800,000 | 1,093,700,000 | 1,014,500,000 |
Transition tax expense | 5,900,000 | 0 | |||
Impact of U.S. tax reform | (5,900,000) | 4,100,000 | 0 | ||
Foreign income taxable due to legislative changes | 100,000,000 | ||||
Transition tax for accumulated foreign earnings, liability | 35,000,000 | 34,100,000 | 35,000,000 | ||
Mandatory repatriation of foreign earnings, income | 97,500,000 | ||||
Total deferred income tax assets | 468,900,000 | 478,800,000 | 468,900,000 | ||
Payment of transition tax for accumulated foreign earnings | 500,000 | ||||
Net operating loss tax carryovers | 336,100,000 | 307,500,000 | 336,100,000 | ||
Income tax refunds received | 1,600,000 | 7,100,000 | 10,500,000 | ||
Deferred taxes for foreign withholding taxes | 3,200,000 | ||||
Unrecognized tax benefits classified within deferred taxes as a reduction of net operating loss carryforwards | 11,700,000 | 12,100,000 | 11,700,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 3,000,000 | ||||
Unrecognized tax benefits that will be recognized within 12 months of year end | 1,000,000 | ||||
Tax Cuts and Jobs Act Of 2017, Transition Tax for Accumulated Foreign Earnings, Deferred Tax Asset Adjustment | (1,200,000) | ||||
Federal and State Deferred Tax Assets | |||||
NOL and Tax Credit Carryforwards [Line Items] | |||||
Valuation allowance | (46,300,000) | 165,800,000 | 68,400,000 | ||
Accumulated Deferred Tax Asset Valuation Allowance | |||||
NOL and Tax Credit Carryforwards [Line Items] | |||||
Accumulated other comprehensive loss, net of tax | 28,800,000 | 49,300,000 | 28,800,000 | 45,600,000 | $ 0 |
State [Member] | |||||
NOL and Tax Credit Carryforwards [Line Items] | |||||
Tax credit carryforwards | 12,000,000 | ||||
Federal | |||||
NOL and Tax Credit Carryforwards [Line Items] | |||||
Income tax refunds received | 3,200,000 | $ 7,300,000 | |||
Tax Cuts and Jobs Act, Transition Tax Liability | |||||
NOL and Tax Credit Carryforwards [Line Items] | |||||
Tax credit carryforwards | 28,200,000 | ||||
Total deferred income tax assets | 468,900,000 | 468,900,000 | |||
Net operating loss tax carryovers | 355,900,000 | 355,900,000 | |||
Tax Cuts and Jobs Act, Transition Tax Liability | Scenario, Adjustment | |||||
NOL and Tax Credit Carryforwards [Line Items] | |||||
Total deferred income tax assets | 0 | 0 | |||
Net operating loss tax carryovers | $ 19,800,000 | $ 19,800,000 | |||
Tax Cuts and Jobs Act, NOL preserved [Member] | |||||
NOL and Tax Credit Carryforwards [Line Items] | |||||
Net operating loss tax carryovers | $ 97,500,000 |
Changes In Deferred Tax Assets
Changes In Deferred Tax Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Tax Credit Carryforward [Line Items] | ||
Net operating loss tax carryovers | $ 307.5 | $ 336.1 |
Tax credits | 49.7 | 92.6 |
Gross deferred income tax assets | 673.6 | 742.9 |
Valuation allowance | (194.8) | (274) |
Total deferred income tax assets | $ 478.8 | 468.9 |
Tax Cuts and Jobs Act, Transition Tax Liability | ||
Tax Credit Carryforward [Line Items] | ||
Net operating loss tax carryovers | 355.9 | |
Tax credits | 63.2 | |
Gross deferred income tax assets | 733.3 | |
Valuation allowance | (264.4) | |
Total deferred income tax assets | 468.9 | |
Tax Cuts and Jobs Act, Transition Tax Liability | Scenario, Adjustment | ||
Tax Credit Carryforward [Line Items] | ||
Net operating loss tax carryovers | 19.8 | |
Tax credits | (29.4) | |
Gross deferred income tax assets | (9.6) | |
Valuation allowance | 9.6 | |
Total deferred income tax assets | $ 0 |
Schedule of Deferred Tax Assets
Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets | ||
Pensions | $ 159.4 | $ 158 |
Postretirement benefits other than pensions | 87.3 | 86.5 |
Net operating loss tax carryovers | 307.5 | 336.1 |
Tax credits | 49.7 | 92.6 |
Deferred compensation and other benefit plans | 2.4 | 13.8 |
Other items | 67.3 | 55.9 |
Gross deferred income tax assets | 673.6 | 742.9 |
Valuation allowance for deferred tax assets | (194.8) | (274) |
Total deferred income tax assets | 478.8 | 468.9 |
Deferred income tax liabilities | ||
Bases of property, plant and equipment | 371.5 | 375.3 |
Inventory valuation | 67.1 | 50 |
Bases of amortizable intangible assets | 29.9 | 38.7 |
Other items | 14.5 | 7 |
Total deferred tax liabilities | 483 | 471 |
Net deferred tax liability | $ (4.2) | $ (2.1) |
Schedule of Income Taxes Paid a
Schedule of Income Taxes Paid and Refunded (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes Paid, Net [Abstract] | |||
Income Taxes Paid | $ 9.7 | $ 10.4 | $ 8.6 |
Income tax refunds received | (1.6) | (7.1) | (10.5) |
Income Taxes Paid (Received), Net, Total | $ 8.1 | 3.3 | (1.9) |
Federal | |||
Income Taxes Paid, Net [Abstract] | |||
Income tax refunds received | $ (3.2) | $ (7.3) |
Income Taxes NOL and Tax Credit
Income Taxes NOL and Tax Credit Carryforwards (Details) $ in Millions | Dec. 31, 2018USD ($) |
United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | $ 943 |
State [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 140 |
Tax credit carryforwards | 12 |
United Kingdom | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 13 |
Luxembourg [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 18 |
Within 5 years [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Within 5 years [Member] | State [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 30 |
Tax credit carryforwards | 3 |
Within 5 years [Member] | United Kingdom | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Within 5 years [Member] | Luxembourg [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Within 5-20 years [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 943 |
Within 5-20 years [Member] | State [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 110 |
Tax credit carryforwards | 9 |
Within 5-20 years [Member] | United Kingdom | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Within 5-20 years [Member] | Luxembourg [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Operating loss carryforwards | 0 |
Foreign Tax Credits [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 37 |
Foreign Tax Credits [Member] | Within 5 years [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 13 |
Foreign Tax Credits [Member] | Within 5-20 years [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 24 |
Research Tax Credit Carryforward [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 1 |
Research Tax Credit Carryforward [Member] | Within 5 years [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 0 |
Research Tax Credit Carryforward [Member] | Within 5-20 years [Member] | United States | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 1 |
Economic Zone Credit [Member] | Poland [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 2 |
Economic Zone Credit [Member] | Within 5 years [Member] | Poland [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | 0 |
Economic Zone Credit [Member] | Within 5-20 years [Member] | Poland [Member] | |
NOL and Tax Credit Carryforwards [Line Items] | |
Tax credit carryforwards | $ 2 |
Schedule of Changes in Unrecogn
Schedule of Changes in Unrecognized Income Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2015 | |
Income Tax Uncertainties [Abstract] | ||||||
Unrecognized tax benefits classified within deferred taxes as a reduction of net operating loss carryforwards | $ 12.1 | $ 11.7 | ||||
Reconciliation Of Unrecognized Tax Benefits Excluding Amounts Pertaining To Examined Tax Returns Roll Forward | ||||||
Increases in prior period tax positions | $ 0 | $ 0 | $ 7.9 | |||
Decreases in prior period tax positions | (0.1) | (0.7) | (0.1) | |||
Increases in current period tax positions | 0.7 | 0.7 | 0.6 | |||
Unrecognized tax benefits | 14.7 | 14.7 | 22.7 | 14.7 | 14.7 | $ 19.6 |
Expiration of the statute of limitations | (0.6) | (0.4) | (1.1) | |||
Settlements | 0 | (7.6) | (4.2) | |||
Ending balance | $ 14.7 | $ 14.7 | $ 22.7 | |||
Income tax penalties and interest accrued | 2.7 | $ 3.2 | ||||
Unrecognized tax benefits that would impact effective tax rate | 3 | |||||
Unrecognized tax benefits that will be recognized within 12 months of year end | $ 1 |
Tax Years Subject To Examinatio
Tax Years Subject To Examination (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Internal Revenue Service IRS [Member] | |
Income Tax Examination [Line Items] | |
Earliest Tax Year Open To Examination | 2,017 |
Pennsylvania Tax [Member] | |
Income Tax Examination [Line Items] | |
Earliest Tax Year Open To Examination | 2,015 |
China Tax [Member] | |
Income Tax Examination [Line Items] | |
Earliest Tax Year Open To Examination | 2,015 |
Poland [Member] | |
Income Tax Examination [Line Items] | |
Earliest Tax Year Open To Examination | 2,012 |
United Kingdom Tax [Member] | |
Income Tax Examination [Line Items] | |
Earliest Tax Year Open To Examination | 2,016 |
Business Segments - Narrative (
Business Segments - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | segment | 2 | |||
Restructuring charges | $ 0 | $ 0 | $ 523.8 | |
Income (loss) from equity method investments | (1) | 0 | 0 | |
Total international sales | 1,698.4 | 1,454.5 | 1,277.1 | |
Sales by U.S. operations to foreign countries | 1,303.8 | 1,078.6 | 971.4 | |
LIFO-related net realizable value charge | (2.9) | (43.1) | ||
Inventory valuation reserves | 88.5 | 121.5 | ||
Closed operations and other expenses | $ 21.6 | 34 | 34.6 | |
STAL Precision Stainless Steel Company Limited [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Joint venture ownership percentage | 60.00% | |||
Allegheny & Tsingshan Stainless [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity method investment ownership percentage | 50.00% | |||
Revenue from related parties | $ 4.1 | |||
Allegheny & Tsingshan Stainless [Member] | Flat Rolled Products | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from equity method investments | $ (3.9) | |||
Uniti [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Equity method investment ownership percentage | 50.00% | |||
Revenue from related parties | $ 49.4 | 38.6 | 20.3 | |
Uniti [Member] | Flat Rolled Products | ||||
Segment Reporting Information [Line Items] | ||||
Income (loss) from equity method investments | $ 2.9 | $ 0.6 | 0.5 | |
Uniti [Member] | VSMPO [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Joint venture ownership percentage by unaffiliated entity | 50.00% | |||
SEC Schedule, 12-09, Reserve, Inventory | Titanium sponge inventory | ||||
Segment Reporting Information [Line Items] | ||||
Inventory valuation charges | $ 11.3 | |||
Employee benefit costs [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | 20.8 | |||
Employee benefit costs [Member] | Flat Rolled Products | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | 4.9 | |||
Employee benefit costs [Member] | High Performance Materials & Components | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | 7.5 | |||
Long-lived asset impairment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | 471.3 | |||
Facility Closing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | 31.7 | |||
Facility Closing [Member] | Flat Rolled Products | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | 8.4 | |||
Facility Closing [Member] | High Performance Materials & Components | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | 23.8 | |||
Employee benefit costs including special termination benefits [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring charges | $ 24.2 | |||
Aerospace & Defense Market Concentration Risk [Member] | Sales Revenue, Net [Member] | High Performance Materials & Components | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of sales | 75.00% | |||
Oil & Gas and Automotive Market Concentration [Member] | Sales Revenue, Net [Member] | Flat Rolled Products | ||||
Segment Reporting Information [Line Items] | ||||
Percentage of sales | 45.00% | |||
Allegheny Technologies $350 million 9.375% Senior Notes due 2019 [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 9.375% |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 1,037.9 | $ 1,020.2 | $ 1,009.5 | $ 979 | $ 909.9 | $ 869.1 | $ 880.2 | $ 865.9 | $ 4,046.6 | $ 3,525.1 | $ 3,134.6 |
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 4,212.6 | 3,654.5 | 3,240.3 | ||||||||
Operating Segments | Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 166 | 129.4 | 105.7 | ||||||||
Operating Segments | External Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 4,046.6 | 3,525.1 | 3,134.6 | ||||||||
Operating Segments | High Performance Materials & Components | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 2,413.6 | 2,127 | 1,979.5 | ||||||||
Operating Segments | High Performance Materials & Components | Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 79.4 | 59.6 | 49.1 | ||||||||
Operating Segments | High Performance Materials & Components | External Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 2,334.2 | 2,067.4 | 1,930.4 | ||||||||
Operating Segments | Flat Rolled Products | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 1,799 | 1,527.5 | 1,260.8 | ||||||||
Operating Segments | Flat Rolled Products | Intersegment Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | 86.6 | 69.8 | 56.6 | ||||||||
Operating Segments | Flat Rolled Products | External Sales [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Sales | $ 1,712.4 | $ 1,457.7 | $ 1,204.2 |
Business Segments (Details8)
Business Segments (Details8) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||||
Inventory valuation reserves | $ 121,500,000 | $ 88,500,000 | $ 121,500,000 | |||
Segment Operating Profit Loss | 413,200,000 | 283,400,000 | $ 5,700,000 | |||
LIFO and net realizable value reserves | (700,000) | (200,000) | 800,000 | |||
Corporate expenses | (58,100,000) | (50,500,000) | (43,400,000) | |||
Closed operations and other expenses | (21,600,000) | (34,000,000) | (34,600,000) | |||
Restructuring and other charges | 0 | 0 | (538,500,000) | |||
Impairment of goodwill | $ (114,400,000) | 0 | (114,400,000) | 0 | ||
Debt extinguishment charge | $ (37,000,000) | 0 | (37,000,000) | 0 | ||
Gain on joint venture deconsolidation | $ 15,900,000 | 15,900,000 | 0 | 0 | ||
Interest expense, net | (101,000,000) | (133,800,000) | (124,000,000) | |||
Income (loss) before income taxes | 247,700,000 | (86,500,000) | (734,000,000) | |||
High Performance Materials & Components | ||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||||
Impairment of goodwill | 0 | (114,400,000) | 0 | |||
Operating Segments | High Performance Materials & Components | ||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||||
Segment Operating Profit Loss | 335,400,000 | 246,400,000 | 168,700,000 | |||
Operating Segments | Flat Rolled Products | ||||||
Segment Reporting Reconciling Item For Operating Profit Loss From Segment To Consolidated [Line Items] | ||||||
Segment Operating Profit Loss | $ 77,800,000 | $ 37,000,000 | $ (163,000,000) |
Business Segments (Details2)
Business Segments (Details2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | $ 156.4 | $ 160.8 | $ 170.3 |
Capital expenditures | 139.2 | 122.7 | 202.2 |
Operating Segments | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | 156.4 | 160.8 | 170.3 |
Capital expenditures | 139.2 | 122.7 | 202.2 |
Operating Segments | High Performance Materials & Components | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | 106.5 | 109.3 | 118.4 |
Capital expenditures | 79.8 | 62.7 | 89.9 |
Operating Segments | Flat Rolled Products | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | 47 | 45.6 | 48.8 |
Capital expenditures | 56.4 | 59.1 | 111.8 |
Operating Segments | Corporate [Member] | |||
Segment Reporting Other Significant Reconciling Item [Line Items] | |||
Depreciation and amortization | 2.9 | 5.9 | 3.1 |
Capital expenditures | $ 3 | $ 0.9 | $ 0.5 |
Business Segments (Details3)
Business Segments (Details3) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Segment Reporting Asset Reconciling Item [Line Items] | |||
Identifiable Assets | $ 5,501.8 | $ 5,185.4 | $ 5,170 |
Deferred taxes | 478.8 | 468.9 | |
High Performance Materials & Components | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Identifiable Assets | 2,765.4 | 2,662.3 | 2,744.3 |
Flat Rolled Products | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Identifiable Assets | 2,225.7 | 2,218.4 | 2,056.4 |
Discontinued Operations [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Identifiable Assets | 0 | 0.2 | 0.4 |
Corporate, Non-Segment [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Deferred taxes | 8.7 | 7.6 | 12.1 |
Corporate: Cash and cash equivalents and other [Member] | |||
Segment Reporting Asset Reconciling Item [Line Items] | |||
Identifiable Assets | $ 502 | $ 296.9 | $ 356.8 |
Business Segments (Details4)
Business Segments (Details4) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 1,037.9 | $ 1,020.2 | $ 1,009.5 | $ 979 | $ 909.9 | $ 869.1 | $ 880.2 | $ 865.9 | $ 4,046.6 | $ 3,525.1 | $ 3,134.6 |
Identifiable Assets | $ 5,501.8 | $ 5,185.4 | $ 5,501.8 | $ 5,185.4 | $ 5,170 | ||||||
Percent of total | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
United States | |||||||||||
Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 2,348.1 | $ 2,070.6 | $ 1,857.5 | ||||||||
Identifiable Assets | $ 4,859.1 | $ 4,547.7 | $ 4,859.1 | $ 4,547.7 | $ 4,591.5 | ||||||
Percent of total | 88.00% | 88.00% | 88.00% | 88.00% | 89.00% | ||||||
China | |||||||||||
Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 320 | $ 265.6 | $ 214.1 | ||||||||
Identifiable Assets | $ 287.3 | $ 276 | $ 287.3 | $ 276 | $ 249.3 | ||||||
Percent of total | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | ||||||
United Kingdom | |||||||||||
Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 242.1 | $ 231.6 | $ 183.8 | ||||||||
Identifiable Assets | $ 136.7 | $ 122.7 | $ 136.7 | $ 122.7 | $ 122.8 | ||||||
Percent of total | 3.00% | 2.00% | 3.00% | 2.00% | 2.00% | ||||||
Germany | |||||||||||
Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 247.2 | $ 217.1 | $ 177.7 | ||||||||
France | |||||||||||
Long-Lived Assets [Line Items] | |||||||||||
Sales | 183.6 | 165.6 | 142.6 | ||||||||
Japan | |||||||||||
Long-Lived Assets [Line Items] | |||||||||||
Sales | 214.9 | 131.7 | 151.9 | ||||||||
Other [Member] | |||||||||||
Long-Lived Assets [Line Items] | |||||||||||
Identifiable Assets | $ 218.7 | $ 239 | $ 218.7 | $ 239 | $ 206.4 | ||||||
Percent of total | 4.00% | 5.00% | 4.00% | 5.00% | 4.00% |
Restructuring Costs (Details)
Restructuring Costs (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2016USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0 | $ 0 | $ 523.8 | |
Revision of estimates | 0 | 0.1 | ||
Restructuring and other charges | $ 0 | $ 0 | 538.5 | |
SEC Schedule, 12-09, Reserve, Inventory | Industrial titanium products | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Inventory valuation charges | 17.7 | |||
Long-lived asset impairment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 471.3 | |||
Facility Closing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 31.7 | |||
Employee benefit costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 20.8 | |||
Flat Rolled Products | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | employee | 250 | |||
Flat Rolled Products | Facility Closing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 8.4 | |||
Flat Rolled Products | Employee benefit costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 4.9 | |||
Flat Rolled Products | Special Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3.4 | |||
Flat Rolled Products | Employee Severance [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 11.8 | |||
High Performance Materials & Components | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | employee | 180 | |||
High Performance Materials & Components | Facility Closing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 23.8 | |||
High Performance Materials & Components | Employee benefit costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 7.5 | |||
Rowley, UT facility [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Asset Impairment Charges | $ 470.8 | |||
Estimated fair value after impairment | $ 15 |
Per Share Information (Details)
Per Share Information (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Net income (loss) | $ 222.4 | $ (91.9) | $ (640.9) | ||||||||
Effect of dilutive securities: Convertible Senior Notes | 12.9 | 0 | 0 | ||||||||
Numerator for diluted net income (loss) per common share - Income (loss) attributable to ATI after assumed conversions | $ 235.3 | $ (91.9) | $ (640.9) | ||||||||
Denominator for basic net income (loss) per common share - weighted average shares (shares) | 125.7 | 125.7 | 125.7 | 125.7 | 118.6 | 108.9 | 108.9 | 108.8 | 125.2 | 110.1 | 107.3 |
Effect of dilutive securities: Share-based compensation | 0.8 | 0 | 0 | ||||||||
Effect of dilutive securities: Convertible Senior Notes | 19.9 | 0 | 0 | ||||||||
Denominator for diluted net income (loss) per common share—adjusted weighted average shares and assumed conversions | 145.9 | 110.1 | 107.3 | ||||||||
Basic income (loss) attributable to ATI per common share (in dollars per share) | $ 1.78 | $ (0.83) | $ (5.97) | ||||||||
Diluted income (loss) attributable to ATI per common share (in dollars per share) | $ 1.61 | $ (0.83) | $ (5.97) | ||||||||
Anti-dilutive securities excluded from computation of earnings per share amount | 0 | 20.8 | 13.1 | ||||||||
Allegheny Technologies, Convertible Senior Notes, 4.75%, Due 2022 [Member] | |||||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Debt instrument interest rate stated percentage | 4.75% | 4.75% | 4.75% | 4.75% | |||||||
Convertible Debt [Member] | Allegheny Technologies, Convertible Senior Notes, 4.75%, Due 2022 [Member] | |||||||||||
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Debt instrument interest rate stated percentage | 4.75% | 4.75% |
Financial Information for Sub_3
Financial Information for Subsidiary and Guarantor Parent - Narrative (Details) - Allegheny Ludlum 6.95% Debentures due 2025 [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Financial Statements, Captions [Line Items] | ||
Debt instrument carrying amount | $ 150 | $ 150 |
Debt instrument interest rate stated percentage | 6.95% | 6.95% |
Financial Information for Sub_4
Financial Information for Subsidiary and Guarantor Parent (B.S.) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions [Line Items] | |||||
Cash and cash equivalents | $ 382 | $ 141.6 | $ 229.6 | $ 149.8 | |
Accounts receivable, net | 527.8 | 545.3 | |||
Intercompany notes receivable | 0 | 0 | |||
Short-term contract assets | 51.2 | $ 36.5 | 0 | ||
Inventories, net | 1,211.1 | 1,176.1 | |||
Prepaid expenses and other current assets | 74.6 | 52.7 | |||
Total Current Assets | 2,246.7 | 1,915.7 | |||
Property, plant and equipment, net | 2,475 | 2,495.7 | |||
Goodwill | 534.7 | 531.4 | |||
Intercompany notes receivable | 0 | 0 | |||
Investments in subsidiaries | 0 | 0 | |||
Other assets | 245.4 | 242.6 | |||
Total Assets | 5,501.8 | 5,185.4 | 5,170 | ||
Accounts payable | 498.8 | 420.1 | |||
Accrued liabilities | 260.1 | 282.4 | |||
Intercompany notes payable | 0 | 0 | |||
Short-term contract liabilities | 71.4 | 69.7 | 0 | ||
Short-term debt and current portion of long-term debt | 6.6 | 10.1 | |||
Total Current Liabilities | 836.9 | 712.6 | |||
Long-term debt | 1,535.5 | 1,530.6 | |||
Intercompany notes payable | 0 | 0 | |||
Accrued postretirement benefits | 318.4 | 317.8 | |||
Pension liabilities | 730 | 697 | |||
Deferred income taxes | 12.9 | 9.7 | |||
Long-term contract liabilities | 7.3 | $ 22.2 | 0 | ||
Other long-term liabilities | 69.2 | 73.2 | |||
Total Liabilities | 3,510.2 | 3,340.9 | |||
Total Stockholders’ Equity | 1,991.6 | 1,844.5 | $ 1,444.8 | $ 2,184.4 | |
Total Liabilities and Stockholders’ Equity | 5,501.8 | 5,185.4 | |||
Legal Entities [Member] | Guarantor Parent [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 0.1 | 2.1 | |||
Accounts receivable, net | 0 | 0.2 | |||
Intercompany notes receivable | 0 | 0 | |||
Short-term contract assets | 0 | ||||
Inventories, net | 0 | 0 | |||
Prepaid expenses and other current assets | 12.9 | 6.6 | |||
Total Current Assets | 13 | 8.9 | |||
Property, plant and equipment, net | 1.7 | 0.9 | |||
Goodwill | 0 | 0 | |||
Intercompany notes receivable | 0 | 0 | |||
Investments in subsidiaries | 6,096.4 | 5,645.6 | |||
Other assets | 35.6 | 25.4 | |||
Total Assets | 6,146.7 | 5,680.8 | |||
Accounts payable | 3.3 | 3 | |||
Accrued liabilities | 59.1 | 54.1 | |||
Intercompany notes payable | 2,102.8 | 1,836.5 | |||
Short-term contract liabilities | 0 | ||||
Short-term debt and current portion of long-term debt | 0.2 | 0.3 | |||
Total Current Liabilities | 2,165.4 | 1,893.9 | |||
Long-term debt | 1,278.8 | 1,275.7 | |||
Intercompany notes payable | 0 | 0 | |||
Accrued postretirement benefits | 0 | 0 | |||
Pension liabilities | 681.6 | 644.3 | |||
Deferred income taxes | 12.9 | 9.7 | |||
Long-term contract liabilities | 0 | ||||
Other long-term liabilities | 16.4 | 12.7 | |||
Total Liabilities | 4,155.1 | 3,836.3 | |||
Total Stockholders’ Equity | 1,991.6 | 1,844.5 | |||
Total Liabilities and Stockholders’ Equity | 6,146.7 | 5,680.8 | |||
Legal Entities [Member] | Subsidiary [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 10.8 | 13.5 | |||
Accounts receivable, net | 126.3 | 141.6 | |||
Intercompany notes receivable | 0 | 0 | |||
Short-term contract assets | 0 | ||||
Inventories, net | 216.1 | 207.9 | |||
Prepaid expenses and other current assets | 29.3 | 4.5 | |||
Total Current Assets | 382.5 | 367.5 | |||
Property, plant and equipment, net | 1,548.4 | 1,581.6 | |||
Goodwill | 0 | 0 | |||
Intercompany notes receivable | 0 | 0 | |||
Investments in subsidiaries | 37.7 | 37.7 | |||
Other assets | 30.7 | 18 | |||
Total Assets | 1,999.3 | 2,004.8 | |||
Accounts payable | 177.5 | 180.3 | |||
Accrued liabilities | 71.7 | 88.5 | |||
Intercompany notes payable | 1,866 | 1,669.1 | |||
Short-term contract liabilities | 33 | ||||
Short-term debt and current portion of long-term debt | 0.7 | 0.6 | |||
Total Current Liabilities | 2,148.9 | 1,938.5 | |||
Long-term debt | 151.8 | 150.7 | |||
Intercompany notes payable | 200 | 200 | |||
Accrued postretirement benefits | 259.2 | 250.2 | |||
Pension liabilities | 4 | 4.4 | |||
Deferred income taxes | 0 | 0 | |||
Long-term contract liabilities | 0 | ||||
Other long-term liabilities | 17.6 | 17.2 | |||
Total Liabilities | 2,781.5 | 2,561 | |||
Total Stockholders’ Equity | (782.2) | (556.2) | |||
Total Liabilities and Stockholders’ Equity | 1,999.3 | 2,004.8 | |||
Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 371.1 | 126 | |||
Accounts receivable, net | 401.5 | 403.5 | |||
Intercompany notes receivable | 3,968.8 | 3,505.6 | |||
Short-term contract assets | 51.2 | ||||
Inventories, net | 995 | 968.2 | |||
Prepaid expenses and other current assets | 32.4 | 41.6 | |||
Total Current Assets | 5,820 | 5,044.9 | |||
Property, plant and equipment, net | 924.9 | 913.2 | |||
Goodwill | 534.7 | 531.4 | |||
Intercompany notes receivable | 200 | 200 | |||
Investments in subsidiaries | 0 | 0 | |||
Other assets | 179.1 | 199.2 | |||
Total Assets | 7,658.7 | 6,888.7 | |||
Accounts payable | 318 | 236.8 | |||
Accrued liabilities | 129.3 | 139.8 | |||
Intercompany notes payable | 0 | 0 | |||
Short-term contract liabilities | 38.4 | ||||
Short-term debt and current portion of long-term debt | 5.7 | 9.2 | |||
Total Current Liabilities | 491.4 | 385.8 | |||
Long-term debt | 104.9 | 104.2 | |||
Intercompany notes payable | 0 | 0 | |||
Accrued postretirement benefits | 59.2 | 67.6 | |||
Pension liabilities | 44.4 | 48.3 | |||
Deferred income taxes | 0 | 0 | |||
Long-term contract liabilities | 7.3 | ||||
Other long-term liabilities | 35.2 | 43.3 | |||
Total Liabilities | 742.4 | 649.2 | |||
Total Stockholders’ Equity | 6,916.3 | 6,239.5 | |||
Total Liabilities and Stockholders’ Equity | 7,658.7 | 6,888.7 | |||
Eliminations [Member] | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | 0 | |||
Intercompany notes receivable | (3,968.8) | (3,505.6) | |||
Short-term contract assets | 0 | ||||
Inventories, net | 0 | 0 | |||
Prepaid expenses and other current assets | 0 | 0 | |||
Total Current Assets | (3,968.8) | (3,505.6) | |||
Property, plant and equipment, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Intercompany notes receivable | (200) | (200) | |||
Investments in subsidiaries | (6,134.1) | (5,683.3) | |||
Other assets | 0 | 0 | |||
Total Assets | (10,302.9) | (9,388.9) | |||
Accounts payable | 0 | 0 | |||
Accrued liabilities | 0 | 0 | |||
Intercompany notes payable | (3,968.8) | (3,505.6) | |||
Short-term contract liabilities | 0 | ||||
Short-term debt and current portion of long-term debt | 0 | 0 | |||
Total Current Liabilities | (3,968.8) | (3,505.6) | |||
Long-term debt | 0 | 0 | |||
Intercompany notes payable | (200) | (200) | |||
Accrued postretirement benefits | 0 | 0 | |||
Pension liabilities | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Long-term contract liabilities | 0 | ||||
Other long-term liabilities | 0 | 0 | |||
Total Liabilities | (4,168.8) | (3,705.6) | |||
Total Stockholders’ Equity | (6,134.1) | (5,683.3) | |||
Total Liabilities and Stockholders’ Equity | $ (10,302.9) | $ (9,388.9) |
Financial Information for Sub_5
Financial Information for Subsidiary and Guarantor Parent (I.S.) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | $ 1,037.9 | $ 1,020.2 | $ 1,009.5 | $ 979 | $ 909.9 | $ 869.1 | $ 880.2 | $ 865.9 | $ 4,046.6 | $ 3,525.1 | $ 3,134.6 |
Cost of sales | 3,416.3 | 3,028.1 | 2,911.8 | ||||||||
Gross profit | 147.6 | 160.4 | 173.7 | 148.6 | 142.6 | 105.3 | 124.3 | 124.8 | 630.3 | 497 | 222.8 |
Selling and administrative expenses | 268.2 | 248 | 240.8 | ||||||||
Restructuring charges | 0 | 0 | 523.8 | ||||||||
Impairment of goodwill | 114.4 | 0 | 114.4 | 0 | |||||||
Operating income (loss) | 362.1 | 134.6 | (541.8) | ||||||||
Nonoperating retirement benefit expense | (33.9) | (54.3) | (70.6) | ||||||||
Interest expense, net | (101) | (133.8) | (124) | ||||||||
Debt extinguishment charge | (37) | 0 | (37) | 0 | |||||||
Other income (expense) including equity in income of unconsolidated subsidiaries | 20.5 | 4 | 2.4 | ||||||||
Income (loss) before income taxes | 247.7 | (86.5) | (734) | ||||||||
Income tax provision (benefit) | 11 | (6.8) | (106.9) | ||||||||
Net income (loss) | 45 | 55.6 | 75.6 | 60.5 | 5.2 | (119.4) | 13.4 | 21.1 | 236.7 | (79.7) | (627.1) |
Less: Net income attributable to noncontrolling interests | 14.3 | 12.2 | 13.8 | ||||||||
Net income (loss) attributable to ATI | $ 41.1 | $ 50.5 | $ 72.8 | $ 58 | $ 1.7 | $ (121.2) | $ 10.1 | $ 17.5 | 222.4 | (91.9) | (640.9) |
Legal Entities [Member] | Guarantor Parent [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Cost of sales | 16.6 | 14.6 | 18.6 | ||||||||
Gross profit | (16.6) | (14.6) | (18.6) | ||||||||
Selling and administrative expenses | 101.7 | 86.6 | 84.5 | ||||||||
Restructuring charges | 0 | ||||||||||
Impairment of goodwill | 0 | ||||||||||
Operating income (loss) | (118.3) | (101.2) | (103.1) | ||||||||
Nonoperating retirement benefit expense | (12.7) | (32.2) | 40.2 | ||||||||
Interest expense, net | (138.8) | (155.8) | (138.3) | ||||||||
Debt extinguishment charge | (37) | ||||||||||
Other income (expense) including equity in income of unconsolidated subsidiaries | 517.5 | 239.7 | (452.4) | ||||||||
Income (loss) before income taxes | 247.7 | (86.5) | (734) | ||||||||
Income tax provision (benefit) | 11 | (6.8) | (106.9) | ||||||||
Net income (loss) | 236.7 | (79.7) | (627.1) | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to ATI | 236.7 | (79.7) | (627.1) | ||||||||
Legal Entities [Member] | Subsidiary [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 1,410.3 | 1,178.9 | 983.6 | ||||||||
Cost of sales | 1,302.4 | 1,085.5 | 1,080.2 | ||||||||
Gross profit | 107.9 | 93.4 | (96.6) | ||||||||
Selling and administrative expenses | 34.2 | 36.9 | 31.7 | ||||||||
Restructuring charges | 21.7 | ||||||||||
Impairment of goodwill | 0 | ||||||||||
Operating income (loss) | 73.7 | 56.5 | (150) | ||||||||
Nonoperating retirement benefit expense | (19.5) | (18.7) | 25.8 | ||||||||
Interest expense, net | (114.6) | (90) | (70.7) | ||||||||
Debt extinguishment charge | 0 | ||||||||||
Other income (expense) including equity in income of unconsolidated subsidiaries | 16.8 | 1.6 | 1 | ||||||||
Income (loss) before income taxes | (43.6) | (50.6) | (245.5) | ||||||||
Income tax provision (benefit) | (8.7) | (16.6) | (85.5) | ||||||||
Net income (loss) | (34.9) | (34) | (160) | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to ATI | (34.9) | (34) | (160) | ||||||||
Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 2,636.3 | 2,346.2 | 2,151 | ||||||||
Cost of sales | 2,097.3 | 1,928 | 1,813 | ||||||||
Gross profit | 539 | 418.2 | 338 | ||||||||
Selling and administrative expenses | 132.3 | 124.5 | 124.6 | ||||||||
Restructuring charges | 502.1 | ||||||||||
Impairment of goodwill | 114.4 | ||||||||||
Operating income (loss) | 406.7 | 179.3 | (288.7) | ||||||||
Nonoperating retirement benefit expense | (1.7) | (3.4) | 4.6 | ||||||||
Interest expense, net | 152.4 | 112 | 85 | ||||||||
Debt extinguishment charge | 0 | ||||||||||
Other income (expense) including equity in income of unconsolidated subsidiaries | 0.8 | 2.4 | 1.4 | ||||||||
Income (loss) before income taxes | 558.2 | 290.3 | (206.9) | ||||||||
Income tax provision (benefit) | 83.9 | 131.4 | (66.7) | ||||||||
Net income (loss) | 474.3 | 158.9 | (140.2) | ||||||||
Less: Net income attributable to noncontrolling interests | 14.3 | 12.2 | 13.8 | ||||||||
Net income (loss) attributable to ATI | 460 | 146.7 | (154) | ||||||||
Eliminations [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Sales | 0 | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Selling and administrative expenses | 0 | 0 | 0 | ||||||||
Restructuring charges | 0 | ||||||||||
Impairment of goodwill | 0 | ||||||||||
Operating income (loss) | 0 | 0 | 0 | ||||||||
Nonoperating retirement benefit expense | 0 | 0 | 0 | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Debt extinguishment charge | 0 | ||||||||||
Other income (expense) including equity in income of unconsolidated subsidiaries | (514.6) | (239.7) | 452.4 | ||||||||
Income (loss) before income taxes | (514.6) | (239.7) | 452.4 | ||||||||
Income tax provision (benefit) | (75.2) | (114.8) | 152.2 | ||||||||
Net income (loss) | (439.4) | (124.9) | 300.2 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to ATI | $ (439.4) | $ (124.9) | $ 300.2 |
Financial Information for Sub_6
Financial Information for Subsidiary and Guarantor Parent (Comp Inc.) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | $ 45 | $ 55.6 | $ 75.6 | $ 60.5 | $ 5.2 | $ (119.4) | $ 13.4 | $ 21.1 | $ 236.7 | $ (79.7) | $ (627.1) |
Currency translation adjustment arising during the period | (26.6) | 39.1 | (47.1) | ||||||||
Net derivative gain on hedge transactions | (18.1) | 7.1 | 19.6 | ||||||||
Pension and postretirement benefits | (67.5) | 27.3 | (61.4) | ||||||||
Other comprehensive income (loss), net of tax | (112.2) | 73.5 | (88.9) | ||||||||
Comprehensive income (loss) | 124.5 | (6.2) | (716) | ||||||||
Less: Comprehensive income attributable to noncontrolling interest | 8.1 | 19.8 | 4.1 | ||||||||
Comprehensive income (loss) attributable to ATI | 116.4 | (26) | (720.1) | ||||||||
Legal Entities [Member] | Guarantor Parent [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | 236.7 | (79.7) | (627.1) | ||||||||
Currency translation adjustment arising during the period | (26.6) | 39.1 | (47.1) | ||||||||
Net derivative gain on hedge transactions | (18.1) | 7.1 | 19.6 | ||||||||
Pension and postretirement benefits | (67.5) | 27.3 | (61.4) | ||||||||
Other comprehensive income (loss), net of tax | (112.2) | 73.5 | (88.9) | ||||||||
Comprehensive income (loss) | 124.5 | (6.2) | (716) | ||||||||
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to ATI | 124.5 | (6.2) | (716) | ||||||||
Legal Entities [Member] | Subsidiary [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | (34.9) | (34) | (160) | ||||||||
Currency translation adjustment arising during the period | 0 | 0 | 0 | ||||||||
Net derivative gain on hedge transactions | 0 | 0 | 0 | ||||||||
Pension and postretirement benefits | (19.1) | (5.8) | 17.2 | ||||||||
Other comprehensive income (loss), net of tax | (19.1) | (5.8) | 17.2 | ||||||||
Comprehensive income (loss) | (54) | (39.8) | (142.8) | ||||||||
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to ATI | (54) | (39.8) | (142.8) | ||||||||
Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | 474.3 | 158.9 | (140.2) | ||||||||
Currency translation adjustment arising during the period | (26.6) | 39.1 | (47.1) | ||||||||
Net derivative gain on hedge transactions | 0 | 0 | 0 | ||||||||
Pension and postretirement benefits | 0.7 | (10.7) | 1.8 | ||||||||
Other comprehensive income (loss), net of tax | (25.9) | 28.4 | (45.3) | ||||||||
Comprehensive income (loss) | 448.4 | 187.3 | (185.5) | ||||||||
Less: Comprehensive income attributable to noncontrolling interest | 8.1 | 19.8 | 4.1 | ||||||||
Comprehensive income (loss) attributable to ATI | 440.3 | 167.5 | (189.6) | ||||||||
Eliminations [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | (439.4) | (124.9) | 300.2 | ||||||||
Currency translation adjustment arising during the period | 26.6 | (39.1) | 47.1 | ||||||||
Net derivative gain on hedge transactions | 0 | 0 | 0 | ||||||||
Pension and postretirement benefits | 18.4 | 16.5 | (19) | ||||||||
Other comprehensive income (loss), net of tax | 45 | (22.6) | 28.1 | ||||||||
Comprehensive income (loss) | (394.4) | (147.5) | 328.3 | ||||||||
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) attributable to ATI | $ (394.4) | $ (147.5) | $ 328.3 |
Financial Information for Sub_7
Financial Information for Subsidiary and Guarantor Parent (Cash Flows) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Cash flows provided by (used in) operating activities | $ 392.8 | $ 22.4 | $ (43.7) |
Purchases of property, plant and equipment | (139.2) | (122.7) | (202.2) |
Net receipts (payments) on intercompany activity | 0 | 0 | 0 |
Purchases of businesses | (10) | 0 | 0 |
Asset disposals and other | 4.1 | 3.1 | 2.2 |
Cash flows provided by (used in) investing activities | (145.1) | (119.6) | (200) |
Borrowings on long-term debt | 7.1 | 8.5 | 387.5 |
Payments on long-term debt and capital leases | (6.4) | (353) | (2.7) |
Net (payments) borrowings under credit facilities | (5.9) | 1.6 | 3.1 |
Debt issuance costs | 0 | (0.8) | (10.4) |
Debt extinguishment charge | 0 | (35.8) | 0 |
Net receipts (payments) on intercompany activity | 0 | 0 | 0 |
Issuance of common stock | 0 | 397.8 | 0 |
Dividends paid to stockholders | 0 | 0 | (25.8) |
Dividends paid to noncontrolling interests | (10) | (8) | (16) |
Sale to noncontrolling interest | 14.4 | 3.7 | 0 |
Payments to Noncontrolling Interests | 0 | 0 | (12.2) |
Shares repurchased for income tax withholding on share-based compensation | (6.5) | (4.8) | 0 |
Cash (used in) provided by financing activities | (7.3) | 9.2 | 323.5 |
Increase (decrease) in cash and cash equivalents | 240.4 | (88) | 79.8 |
Legal Entities [Member] | Guarantor Parent [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash flows provided by (used in) operating activities | (107) | (78.8) | (78.5) |
Purchases of property, plant and equipment | (2.1) | (0.9) | (0.5) |
Net receipts (payments) on intercompany activity | 0 | 0 | 0 |
Purchases of businesses | 0 | ||
Asset disposals and other | 1.3 | 0 | 0 |
Cash flows provided by (used in) investing activities | (0.8) | (0.9) | (0.5) |
Borrowings on long-term debt | 0 | 0 | 287.5 |
Payments on long-term debt and capital leases | (0.2) | (350.4) | (0.7) |
Net (payments) borrowings under credit facilities | 0 | 0 | 0 |
Debt issuance costs | 0 | (9.4) | |
Debt extinguishment charge | (35.8) | ||
Net receipts (payments) on intercompany activity | 112.5 | 72.7 | (170.7) |
Issuance of common stock | 397.8 | ||
Dividends paid to stockholders | 0 | 0 | (25.8) |
Dividends paid to noncontrolling interests | 0 | 0 | 0 |
Sale to noncontrolling interest | 0 | 0 | |
Payments to Noncontrolling Interests | 0 | ||
Shares repurchased for income tax withholding on share-based compensation | (6.5) | (4.8) | |
Cash (used in) provided by financing activities | 105.8 | 79.5 | 80.9 |
Increase (decrease) in cash and cash equivalents | (2) | (0.2) | 1.9 |
Legal Entities [Member] | Subsidiary [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash flows provided by (used in) operating activities | (223.9) | (101.5) | (232.3) |
Purchases of property, plant and equipment | (26.2) | (38.5) | (98.7) |
Net receipts (payments) on intercompany activity | 0 | 0 | 0 |
Purchases of businesses | 0 | ||
Asset disposals and other | 2.6 | 0.1 | 0.2 |
Cash flows provided by (used in) investing activities | (23.6) | (38.4) | (98.5) |
Borrowings on long-term debt | 0 | 0 | 0 |
Payments on long-term debt and capital leases | (0.9) | (0.3) | (0.2) |
Net (payments) borrowings under credit facilities | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |
Debt extinguishment charge | 0 | ||
Net receipts (payments) on intercompany activity | 234 | 151.2 | 330.7 |
Issuance of common stock | 0 | ||
Dividends paid to stockholders | 0 | 0 | 0 |
Dividends paid to noncontrolling interests | 0 | 0 | 0 |
Sale to noncontrolling interest | 11.7 | 0 | |
Payments to Noncontrolling Interests | 0 | ||
Shares repurchased for income tax withholding on share-based compensation | 0 | 0 | |
Cash (used in) provided by financing activities | 244.8 | 150.9 | 330.5 |
Increase (decrease) in cash and cash equivalents | (2.7) | 11 | (0.3) |
Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash flows provided by (used in) operating activities | 738.7 | 214.7 | 291.1 |
Purchases of property, plant and equipment | (110.9) | (83.3) | (103) |
Net receipts (payments) on intercompany activity | (346.5) | (223.9) | (160) |
Purchases of businesses | (10) | ||
Asset disposals and other | 0.2 | 3 | 2 |
Cash flows provided by (used in) investing activities | (467.2) | (304.2) | (261) |
Borrowings on long-term debt | 7.1 | 8.5 | 100 |
Payments on long-term debt and capital leases | (5.3) | (2.3) | (1.8) |
Net (payments) borrowings under credit facilities | (5.9) | 1.6 | 3.1 |
Debt issuance costs | (0.8) | (1) | |
Debt extinguishment charge | 0 | ||
Net receipts (payments) on intercompany activity | 0 | 0 | 0 |
Issuance of common stock | 0 | ||
Dividends paid to stockholders | (15) | (12) | (24) |
Dividends paid to noncontrolling interests | (10) | (8) | (16) |
Sale to noncontrolling interest | 2.7 | 3.7 | |
Payments to Noncontrolling Interests | (12.2) | ||
Shares repurchased for income tax withholding on share-based compensation | 0 | 0 | |
Cash (used in) provided by financing activities | (26.4) | (9.3) | 48.1 |
Increase (decrease) in cash and cash equivalents | 245.1 | (98.8) | 78.2 |
Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash flows provided by (used in) operating activities | (15) | (12) | (24) |
Purchases of property, plant and equipment | 0 | 0 | 0 |
Net receipts (payments) on intercompany activity | 346.5 | 223.9 | 160 |
Purchases of businesses | 0 | ||
Asset disposals and other | 0 | 0 | 0 |
Cash flows provided by (used in) investing activities | 346.5 | 223.9 | 160 |
Borrowings on long-term debt | 0 | 0 | 0 |
Payments on long-term debt and capital leases | 0 | 0 | 0 |
Net (payments) borrowings under credit facilities | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |
Debt extinguishment charge | 0 | ||
Net receipts (payments) on intercompany activity | (346.5) | (223.9) | (160) |
Issuance of common stock | 0 | ||
Dividends paid to stockholders | 15 | 12 | 24 |
Dividends paid to noncontrolling interests | 0 | 0 | 0 |
Sale to noncontrolling interest | 0 | 0 | |
Payments to Noncontrolling Interests | 0 | ||
Shares repurchased for income tax withholding on share-based compensation | 0 | 0 | |
Cash (used in) provided by financing activities | (331.5) | (211.9) | (136) |
Increase (decrease) in cash and cash equivalents | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Leases, Operating [Abstract] | |||
Rent expense | $ 24.4 | $ 21.1 | $ 22.6 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2,019 | 20.4 | ||
2,020 | 17.9 | ||
2,021 | 16.6 | ||
2,022 | 14.2 | ||
2,023 | 10.1 | ||
Thereafter | 16.4 | ||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Purchase obligation, property, plant, and equipment | 60.4 | ||
Accrual for Environmental Loss Contingencies [Abstract] | |||
Accrual for environmental remediation obligations | 20 | $ 12 | |
Accrued environmental loss contingencies recorded in other current liabilities | 8 | ||
Components of Environmental Loss Accrual [Abstract] | |||
Federal Superfund and comparable state-managed sites | 3 | ||
Formerly owned or operated sites | 16 | ||
Owned or controlled sites at which Company operations have been discontinued | 1 | ||
Reasonably possible amount by which current matters may exceed reserves | $ 16 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Sales | $ 1,037.9 | $ 1,020.2 | $ 1,009.5 | $ 979 | $ 909.9 | $ 869.1 | $ 880.2 | $ 865.9 | $ 4,046.6 | $ 3,525.1 | $ 3,134.6 |
Gross profit | 147.6 | 160.4 | 173.7 | 148.6 | 142.6 | 105.3 | 124.3 | 124.8 | 630.3 | 497 | 222.8 |
Net income (loss) | 45 | 55.6 | 75.6 | 60.5 | 5.2 | (119.4) | 13.4 | 21.1 | 236.7 | (79.7) | (627.1) |
Net income attributable to ATI | $ 41.1 | $ 50.5 | $ 72.8 | $ 58 | $ 1.7 | $ (121.2) | $ 10.1 | $ 17.5 | $ 222.4 | $ (91.9) | $ (640.9) |
Basic income (loss) attributable to ATI per common share (in dollars per share) | $ 1.78 | $ (0.83) | $ (5.97) | ||||||||
Basic net income (loss) attributable to ATI per common share (in dollars per share) | $ 0.33 | $ 0.40 | $ 0.58 | $ 0.46 | $ 0.01 | $ (1.12) | $ 0.09 | $ 0.16 | 1.78 | (0.83) | (5.97) |
Diluted income (loss) attributable to ATI per common share (in dollars per share) | 1.61 | (0.83) | (5.97) | ||||||||
Diluted net income (loss) attributable to ATI per common share (in dollars per share) | $ 0.30 | $ 0.37 | $ 0.52 | $ 0.42 | $ 0.01 | $ (1.12) | $ 0.09 | $ 0.16 | $ 1.61 | $ (0.83) | $ (5.97) |
Average shares outstanding (shares) | 125.7 | 125.7 | 125.7 | 125.7 | 118.6 | 108.9 | 108.9 | 108.8 | 125.2 | 110.1 | 107.3 |
Selected Quarterly Financial _4
Selected Quarterly Financial Data (Unaudited) - Narrative (Details) - USD ($) shares in Millions, $ in Millions | Nov. 07, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Unusual Or Infrequent Item [Line Items] | ||||||||
Gain on joint venture deconsolidation | $ 15.9 | $ 15.9 | $ 0 | $ 0 | ||||
Deconsolidation, Gain (Loss), Amount, Net of tax | $ 14.7 | |||||||
NRV charge | (27.9) | (54) | (39.9) | |||||
Impairment of goodwill | $ 114.4 | 0 | 114.4 | 0 | ||||
Impairment of goodwill net of tax | $ 113.6 | |||||||
Debt extinguishment charge | $ 37 | $ 0 | $ 37 | 0 | ||||
Impact of U.S. tax reform | $ (4.1) | |||||||
Shares issued | 17 | |||||||
SEC Schedule, 12-09, Reserve, Inventory | Titanium sponge inventory | ||||||||
Unusual Or Infrequent Item [Line Items] | ||||||||
Inventory valuation charges | $ 11.3 | |||||||
Allegheny Technologies $350 million 9.375% Senior Notes due 2019 [Member] | ||||||||
Unusual Or Infrequent Item [Line Items] | ||||||||
Debt instrument carrying amount | $ 350 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.375% | |||||||
Allegheny & Tsingshan Stainless [Member] | Tsingshan Group [Member] | ||||||||
Unusual Or Infrequent Item [Line Items] | ||||||||
Joint venture ownership percentage by unaffiliated entity | 50.00% |