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Business Segments | 12 Months Ended
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Dec. 31, 2013
Segment Reporting [Abstract] |
Business Segments | Business Segments In the third quarter of 2013, the Company restructured its former Engineered Products segment due to the announced divestitures of its tungsten materials and casting services businesses and the closure of the fabricated components business (see Note 2). These businesses are reported as discontinued operations for all periods presented, and are not reported within sales, results of continuing operations, or business segment results. The Company restructured the remaining operations of the former Engineered Products business segment, which represented less than 3% of total sales from continuing operations. The previously standalone specialty steel forgings business was integrated into the forged products operations in the High Performance Metals business segment, and the precision titanium and specialty alloy flat-rolled finishing business was integrated into the specialty plate operations in the Flat-Rolled Products business segment. Segment results for High Performance Metals and Flat-Rolled Products reflect these changes for all periods presented. The High Performance Metals business segment produces, converts and distributes a wide range of high performance materials, including titanium and titanium-based alloys, nickel- and cobalt-based alloys and superalloys, zirconium and related alloys including hafnium and niobium, advanced powder alloys and other specialty metals, in long product forms such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, plus precision forgings and castings, and machined parts. These products are designed for the high performance requirements of such major end markets as aerospace and defense, oil and gas, chemical process industry, electrical energy, and medical. The business units in this segment include ATI Allvac, ATI Wah Chang and ATI Ladish. The Flat-Rolled Products business segment produces, converts and distributes stainless steel, nickel-based alloys, specialty alloys, and titanium and titanium-based alloys, in a variety of product forms including plate, sheet, engineered strip, and Precision Rolled Strip products, as well as grain-oriented electrical steel. The major end markets for our flat-rolled products are oil and gas, chemical process industry, electrical energy, automotive, food processing equipment and appliances, construction and mining, electronics, communication equipment and computers, and aerospace and defense. The business units in this segment include ATI Allegheny Ludlum and STAL, in which the Company has a 60% ownership interest. Segment results also include ATI’s 50% interest in Uniti, which is accounted for under the equity method. Sales to Uniti, which are included in ATI’s consolidated statements of income, were $95.9 million in 2013, $77.1 million in 2012, and $149.1 million in 2011. ATI’s share of Uniti’s (loss)/income was $(7.1) million in 2013, $4.9 million in 2012, and $7.4 million in 2011, which is included in the Flat-Rolled Products segment’s operating profit, and within cost of sales in the consolidated statements of income. The remaining 50% interest in Uniti is held by VSMPO, a Russian producer of titanium, aluminum, and specialty steel products. Intersegment sales are generally recorded at full cost or market. Common services are allocated on the basis of estimated utilization.
(in millions) |  | 2013 |  | 2012 |  | 2011
Total sales: |  |  |  |  |  |
High Performance Metals |  | $ | 2,016.7 |  |  | $ | 2,398.1 |  |  | $ | 2,186.1 |
Flat-Rolled Products |  | 2,146.6 |  |  | 2,398.9 |  |  | 2,789.1 |
Total sales |  | 4,163.3 |  |  | 4,797.0 |  |  | 4,975.2 |
Intersegment sales: |  |  |  |  |  |
High Performance Metals |  | 71.9 |  |  | 84.1 |  |  | 105.1 |
Flat-Rolled Products |  | 47.9 |  |  | 46.0 |  |  | 57.8 |
Total intersegment sales |  | 119.8 |  |  | 130.1 |  |  | 162.9 |
Sales to external customers: |  |  |  |  |  |
High Performance Metals |  | 1,944.8 |  |  | 2,314.0 |  |  | 2,081.0 |
Flat-Rolled Products |  | 2,098.7 |  |  | 2,352.9 |  |  | 2,731.3 |
Total sales to external customers |  | $ | 4,043.5 |  |  | $ | 4,666.9 |  |  | $ | 4,812.3 |
Total direct international sales were $1,585.1 million in 2013, $1,705.7 million in 2012, and $1,709.4 million in 2011. Of these amounts, sales by operations in the United States to customers in other countries were $1,175.1 million in 2013, $1,262.9 million in 2012, and $1,313.9 million in 2011.
(in millions) |  | 2013 |  | 2012 |  | 2011
Operating profit (loss): |  |  |  |  |  |
High Performance Metals |  | $ | 209.1 |  |  | $ | 385.4 |  |  | $ | 377.1 |
Flat-Rolled Products |  | (44.7 | ) |  | 127.8 |  |  | 217.6 |
Total operating profit |  | 164.4 |  |  | 513.2 |  |  | 594.7 |
Corporate expenses |  | (43.0 | ) |  | (68.4 | ) |  | (92.5 | )
Interest expense, net |  | (65.2 | ) |  | (71.6 | ) |  | (92.3 | )
Restructuring costs |  | (67.5 | ) |  | — |  |  | — |
Closed company and other expenses |  | (14.2 | ) |  | (18.5 | ) |  | (9.9 | )
Retirement benefit expense |  | (129.3 | ) |  | (122.4 | ) |  | (77.9 | )
Income (loss) before income taxes |  | $ | (154.8 | ) |  | $ | 232.3 |  |  | $ | 322.1 |
Business segment operating profit excludes costs for restructuring charges (see Note 15), retirement benefit income or expense, corporate expenses, interest expenses, debt extinguishment costs, and costs associated with closed operations. These costs are excluded for segment reporting to provide a profit measure based on what management considers to be controllable costs at the segment level. Retirement benefit expense includes both defined benefit pension expense and other postretirement benefit expenses. Costs associated with multiemployer pension plans are included in segment operating profit, and costs associated with defined contribution pension plans are included in segment operating profit or corporate expenses, as applicable. Business segment operating profit for 2013 includes a $55.5 million charge for inventory valuation adjustments, including a $35.0 million LIFO-related net realizable value charge in the High Performance Metals segment and a $20.5 million charge related to the market-based valuation of industrial titanium products in the Flat-Rolled Products segment. Closed company and other expenses, which were $14.2 million in 2013, $18.5 million in 2012 and $9.9 million in 2011, includes charges incurred in connection with closed operations, pre-tax gains and losses on the sale of surplus real estate, non-strategic investments, and other assets, and other non-operating income or expense. Other items are primarily presented in selling and administrative expenses in the consolidated statements of income. In 2013, these other items included $3.9 million for closed company environmental costs, and $10.3 million for other expenses including real estate costs at closed companies. In 2012, the Company recorded $18.5 million in other charges primarily related to closed companies, including $4.3 million for environmental costs, $4.0 million for real estate costs at closed companies, and $10.2 million for other expenses including legal matters and foreign exchange losses. In 2011, the Company recorded $9.9 million in other charges primarily related to closed companies, including $4.9 million for environmental costs and $5.0 million for other expenses including legal matters and foreign exchange losses. Certain additional information regarding the Company’s business segments is presented below:
(in millions) |  | 2013 |  | 2012 |  | 2011
Depreciation and amortization: |  |  |  |  |  |
High Performance Metals |  | $ | 127.4 |  |  | $ | 130.0 |  |  | $ | 111.8 |
Flat-Rolled Products |  | 49.5 |  |  | 49.7 |  |  | 49.7 |
Corporate |  | 3.7 |  |  | 1.7 |  |  | 1.2 |
Total depreciation and amortization |  | 180.6 |  |  | 181.4 |  |  | 162.7 |
Capital expenditures: |  |  |  |  |  |
High Performance Metals |  | 39.5 |  |  | 59.9 |  |  | 85.3 |
Flat-Rolled Products |  | 568.1 |  |  | 311.3 |  |  | 176.0 |
Corporate |  | 0.2 |  |  | 1.3 |  |  | 3.7 |
Total capital expenditures |  | 607.8 |  |  | 372.5 |  |  | 265.0 |
Identifiable assets: |  | 2013 |  | 2012 |  | 2011
High Performance Metals |  | 3,452.2 |  |  | 3,720.7 |  |  | 3,712.5 |
Flat-Rolled Products |  | 2,320.9 |  |  | 1,857.0 |  |  | 1,610.6 |
Discontinued Operations |  | 9.8 |  |  | 214.0 |  |  | 229.5 |
Corporate: |  |  |  |  |  |
Prepaid pension cost |  | 5.1 |  |  | — |  |  | — |
Deferred taxes |  | — |  |  | 71.5 |  |  | — |
Cash and cash equivalents and other |  | 1,110.5 |  |  | 384.6 |  |  | 494.3 |
Total assets |  | $ | 6,898.5 |  |  | $ | 6,247.8 |  |  | $ | 6,046.9 |
Geographic information for external sales based on country of destination, and assets, are as follows:
($ in millions) |  | 2013 |  | Percent of total |  | 2012 |  | Percent of total |  | 2011 |  | Percent of total
External sales: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 2,458.4 |  |  | 61 | % |  | $ | 2,961.1 |  |  | 63 | % |  | $ | 3,102.9 |  |  | 64 | %
United Kingdom |  | 251.5 |  |  | 6 | % |  | 303.9 |  |  | 7 | % |  | 233.4 |  |  | 5 | %
China |  | 237.7 |  |  | 6 | % |  | 255.4 |  |  | 5 | % |  | 260.1 |  |  | 5 | %
Germany |  | 215.4 |  |  | 5 | % |  | 256.0 |  |  | 6 | % |  | 242.4 |  |  | 5 | %
France |  | 152.8 |  |  | 4 | % |  | 157.0 |  |  | 3 | % |  | 168.1 |  |  | 3 | %
Canada |  | 141.0 |  |  | 4 | % |  | 134.9 |  |  | 3 | % |  | 126.3 |  |  | 3 | %
Italy |  | 132.3 |  |  | 3 | % |  | 136.1 |  |  | 3 | % |  | 137.3 |  |  | 3 | %
Japan |  | 124.7 |  |  | 3 | % |  | 93.7 |  |  | 2 | % |  | 168.5 |  |  | 4 | %
Mexico |  | 54.9 |  |  | 1 | % |  | 49.3 |  |  | 1 | % |  | 61.7 |  |  | 1 | %
Other |  | 274.8 |  |  | 7 | % |  | 319.5 |  |  | 7 | % |  | 311.6 |  |  | 7 | %
Total External Sales |  | $ | 4,043.5 |  |  | 100 | % |  | $ | 4,666.9 |  |  | 100 | % |  | $ | 4,812.3 |  |  | 100 | %
($ in millions) |  | 2013 |  | Percent of total |  | 2012 |  | Percent of total |  | 2011 |  | Percent of total
Total assets: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 6,145.4 |  |  | 89 | % |  | $ | 5,505.0 |  |  | 88 | % |  | $ | 5,271.7 |  |  | 87 | %
China |  | 258.1 |  |  | 4 | % |  | 276.2 |  |  | 4 | % |  | 266.6 |  |  | 5 | %
United Kingdom |  | 208.0 |  |  | 3 | % |  | 239.2 |  |  | 4 | % |  | 233.0 |  |  | 4 | %
Luxembourg (a) |  | 145.9 |  |  | 2 | % |  | 48.3 |  |  | 1 | % |  | 86.3 |  |  | 1 | %
Other |  | 141.1 |  |  | 2 | % |  | 179.1 |  |  | 3 | % |  | 189.3 |  |  | 3 | %
Total Assets |  | $ | 6,898.5 |  |  | 100 | % |  | $ | 6,247.8 |  |  | 100 | % |  | $ | 6,046.9 |  |  | 100 | %
(a) | Comprises assets held by the Company’s European Treasury Center operation.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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