Financial Information for Subsidiary and Guarantor Parent

6 Months Ended

Jun. 30, 2013

Schedule Of Condensed Financial Statements Disclosure [Abstract]

Financial Information for Subsidiary and Guarantor Parent [Text Block]

Note 11. Financial Information for Subsidiary and Guarantor Parent

The payment obligations under the $150 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 Allegheny Technologies Incorporated (the “Guarantor Parent”). In accordance with positions established by the Securities and Exchange Commission, the following financial information sets forth separately financial information with respect to the Subsidiary, the non-guarantor subsidiaries and the Guarantor Parent. The principal elimination entries eliminate investments in subsidiaries and certain intercompany balances and transactions. Investments in subsidiaries, which are eliminated in consolidation, are included in other assets on the consolidated balance sheets.

Allegheny Technologies is the plan sponsor for the U.S. qualified defined benefit pension plan (the “Plan”) which covers certain current and former employees of the Subsidiary and the non-guarantor subsidiaries. As a result, the balance sheets presented for the Subsidiary and the non-guarantor subsidiaries do not include any Plan assets or liabilities, or the related deferred taxes. The Plan assets, liabilities and related deferred taxes and pension income or expense are recognized by the Guarantor Parent. Management and royalty fees charged to the Subsidiary and to the non-guarantor subsidiaries by the Guarantor Parent have been excluded solely for purposes of this presentation.

Cash flows related to intercompany activity between the Guarantor Parent, the Subsidiary, and the non-guarantor subsidiaries are presented as financing activities on the condensed statements of cash flows.

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Balance Sheets
June 30, 2013
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Assets:
Cash and cash equivalents		$	2.9	$	4.7	$	66.5	$	-	$	74.1
Accounts receivable, net			0.2		209.8		445.5		-		655.5
Inventories, net			-		315.1		1,189.8		-		1,504.9
Prepaid expenses and other current
	assets		54.7		10.5		32.1		-		97.3
Total current assets			57.8		540.1		1,733.9		-		2,331.8
Property, plant and equipment, net			3.6		1,063.6		1,625.2		-		2,692.4
Cost in excess of net assets acquired			-		112.1		624.9		-		737.0
Investments in subsidiaries and
	other assets		5,575.0		207.9		853.4		(6,277.9)		358.4
Total assets		$	5,636.4	$	1,923.7	$	4,837.4	$	(6,277.9)	$	6,119.6

Liabilities and stockholders’ equity:
Accounts payable		$	3.7	$	248.1	$	193.8	$	-	$	445.6
Accrued liabilities			1,101.3		660.9		246.5		(1,715.6)		293.1
Deferred income taxes			27.6		-		-		-		27.6
Short-term debt and current portion
	of long-term debt		402.8		0.1		17.4		-		420.3
Total current liabilities			1,535.4		909.1		457.7		(1,715.6)		1,186.6
Long-term debt			851.0		350.5		52.1		(200.0)		1,053.6
Accrued postretirement benefits			-		187.9		292.1		-		480.0
Pension liabilities			642.6		4.8		60.4		-		707.8
Deferred income taxes			4.2		-		-		-		4.2
Other long-term liabilities			16.3		19.4		65.0		(0.2)		100.5
Total liabilities			3,049.5		1,471.7		927.3		(1,915.8)		3,532.7
Total stockholders’ equity			2,586.9		452.0		3,910.1		(4,362.1)		2,586.9
Total liabilities and stockholders’
	equity	$	5,636.4	$	1,923.7	$	4,837.4	$	(6,277.9)	$	6,119.6

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Income and Comprehensive Income
For the three months ended June 30, 2013
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Sales		$	-	$	475.8	$	659.7	$	-	$	1,135.5
Cost of sales			18.6		468.5		544.6		-		1,031.7
Selling and administrative expenses			25.9		9.5		46.7		-		82.1
Income (loss) before interest, other
	income and income taxes		(44.5)		(2.2)		68.4		-		21.7
Interest expense, net			(10.7)		(2.7)		(0.5)		-		(13.9)
Other income (loss) including
	equity in income of unconsolidated
	subsidiaries		62.9		(6.1)		9.2		(66.1)		(0.1)
Income before income tax provision			7.7		(11.0)		77.1		(66.1)		7.7
Income tax provision (benefit)			1.1		(0.7)		25.3		(24.6)		1.1
Net income (loss)			6.6		(10.3)		51.8		(41.5)		6.6
Less: Net income (loss) attributable to
	noncontrolling interests		-		-		2.2		-		2.2
Net income (loss) attributable to ATI		$	6.6	$	(10.3)	$	49.6	$	(41.5)	$	4.4

Comprehensive income (loss) attributable to ATI		$	19.9	$	(10.2)	$	52.8	$	(46.7)	$	15.8

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Income and Comprehensive Income
For the six months ended June 30, 2013
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Sales		$	-	$	952.9	$	1,362.0	$	-	$	2,314.9
Cost of sales			36.1		935.2		1,125.5		-		2,096.8
Selling and administrative expenses			55.0		19.9		92.9		-		167.8
Income (loss) before interest, other
	income and income taxes		(91.1)		(2.2)		143.6		-		50.3
Interest expense, net			(22.4)		(5.3)		(0.6)		-		(28.3)
Other income including
	equity in income of unconsolidated
	subsidiaries		136.5		(11.5)		18.4		(142.4)		1.0
Income before income tax provision			23.0		(19.0)		161.4		(142.4)		23.0
Income tax provision			4.8		(3.2)		55.1		(51.9)		4.8
Net income			18.2		(15.8)		106.3		(90.5)		18.2
Less: Net income attributable to
	noncontrolling interests		-		-		3.8		-		3.8
Net income attributable to ATI		$	18.2	$	(15.8)	$	102.5	$	(90.5)	$	14.4

Comprehensive income attributable to ATI		$	45.2	$	(15.6)	$	92.8	$	(83.4)	$	39.0

Condensed Statements of Cash Flows
For the six months ended June 30, 2013
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Cash flows provided by (used in)
	operating activities	$	(21.1)	$	51.6	$	27.5	$	-	$	58.0

Investing Activities:
	Purchases of property, plant and equipment		(0.1)		(201.7)		(21.9)		-		(223.7)
	Asset disposals and other		-		0.1		0.4		-		0.5
Cash flows used in investing activities			(0.1)		(201.6)		(21.5)		-		(223.2)

Financing Activities:
	Net receipts/(payments) on intercompany activity		78.7		141.7		(220.4)		-		(0.0)
	Dividends paid to stockholders		(38.4)		-		-		-		(38.4)
	Other		(21.7)		(0.1)		(5.1)		-		(26.9)
Cash flows provided by (used in) financing activities			18.6		141.6		(225.5)		-		(65.3)
Increase (decrease) in cash
	and cash equivalents	$	(2.6)	$	(8.4)	$	(219.5)	$	-	$	(230.5)

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Balance Sheets
December 31, 2012
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Assets:
Cash and cash equivalents		$	5.5	$	13.1	$	286.0	$	-	$	304.6
Accounts receivable, net			0.4		190.1		422.8		-		613.3
Inventories, net			-		311.1		1,225.5		-		1,536.6
Prepaid expenses and other current
	assets		1.1		10.2		44.8		-		56.1
Total current assets			7.0		524.5		1,979.1		-		2,510.6
Property, plant and equipment, net			3.9		882.2		1,673.8		-		2,559.9
Cost in excess of net assets acquired			-		112.1		628.0		-		740.1
Deferred income taxes			71.5		-		-		-		71.5
Investments in subsidiaries and
	other assets		5,595.9		210.3		657.0		(6,097.5)		365.7
Total assets		$	5,678.3	$	1,729.1	$	4,937.9	$	(6,097.5)	$	6,247.8

Liabilities and stockholders’ equity:
Accounts payable		$	5.3	$	262.6	$	232.0	$	-	$	499.9
Accrued liabilities			1,137.4		419.8		401.1		(1,627.8)		330.5
Deferred income taxes			24.0		-		-		-		24.0
Short-term debt and current portion
	of long-term debt		0.3		0.1		16.7		-		17.1
Total current liabilities			1,167.0		682.5		649.8		(1,627.8)		871.5
Long-term debt			1,253.4		350.6		59.1		(200.1)		1,463.0
Accrued postretirement benefits			-		198.2		297.0		-		495.2
Pension liabilities			651.7		5.1		64.3		-		721.1
Other long-term liabilities			19.1		20.8		70.0		-		109.9
Total liabilities			3,091.2		1,257.2		1,140.2		(1,827.9)		3,660.7
Total stockholders’ equity			2,587.1		471.9		3,797.7		(4,269.6)		2,587.1
Total liabilities and stockholders’
	equity	$	5,678.3	$	1,729.1	$	4,937.9	$	(6,097.5)	$	6,247.8

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Income and Comprehensive Income
For the three months ended June 30, 2012
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Sales		$	-	$	573.6	$	783.8	$	-	$	1,357.4
Cost of sales			13.4		526.4		618.7		-		1,158.5
Selling and administrative expenses			34.9		11.9		43.9		-		90.7
Income (loss) before interest, other
	income and income taxes		(48.3)		35.3		121.2		-		108.2
Interest income (expense), net			(15.6)		(2.6)		(0.4)		-		(18.6)
Other income including
	equity in income of unconsolidated
	subsidiaries		153.6		(12.5)		15.0		(156.0)		0.1
Income before income tax provision			89.7		20.2		135.8		(156.0)		89.7
Income tax provision			31.0		8.3		48.3		(56.6)		31.0
Net income			58.7		11.9		87.5		(99.4)		58.7
Less: Net income attributable to
	noncontrolling interests		-		-		2.3		-		2.3
Net income attributable to ATI		$	58.7	$	11.9	$	85.2	$	(99.4)	$	56.4

Comprehensive income (loss) attributable to ATI		$	70.8	$	11.6	$	72.3	$	(85.0)	$	69.7

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Income and Comprehensive Income
For the six months ended June 30, 2012
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Sales		$	-	$	1,130.6	$	1,579.3	$	-	$	2,709.9
Cost of sales			26.7		1,034.9		1,242.4		-		2,304.0
Selling and administrative expenses			78.0		22.4		93.7		-		194.1
Income (loss) before interest, other
	income and income taxes		(104.7)		73.3		243.2		-		211.8
Interest expense, net			(32.6)		(5.2)		(0.7)		-		(38.5)
Other income including
	equity in income of unconsolidated
	subsidiaries		311.1		(10.9)		16.5		(316.2)		0.5
Income before income tax provision			173.8		57.2		259.0		(316.2)		173.8
Income tax provision			56.8		22.3		89.1		(111.4)		56.8
Net income			117.0		34.9		169.9		(204.8)		117.0
Less: Net income attributable to
	noncontrolling interests		-		-		4.4		-		4.4
Net income attributable to ATI		$	117.0	$	34.9	$	165.5	$	(204.8)	$	112.6

Comprehensive income attributable to ATI		$	145.6	$	34.3	$	161.9	$	(200.0)	$	141.8

Condensed Statements of Cash Flows
For the six months ended June 30, 2012
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Cash flows provided by (used in)
	operating activities	$	(25.9)	$	2.6	$	83.1	$	-	$	59.8

Investing Activities:
	Purchases of property, plant and equipment		(0.8)		(127.9)		(37.0)		-		(165.7)
	Asset disposals and other		-		0.2		0.7		-		0.9
Cash flows used in investing activities			(0.8)		(127.7)		(36.3)		-		(164.8)

Financing Activities:
	Net receipts/(payments) on intercompany activity		90.2		5.8		(96.0)		-		-
	Dividends paid to stockholders		(38.2)		-		-		-		(38.2)
	Other		(21.6)		(0.1)		(5.4)		-		(27.1)
Cash flows provided by (used in) financing activities			30.4		5.7		(101.4)		-		(65.3)
Increase (decrease) in cash
	and cash equivalents	$	3.7	$	(119.4)	$	(54.6)	$	-	$	(170.3)