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Business Segments | 12 Months Ended
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Dec. 31, 2015
Segment Reporting [Abstract] |
Business Segments | Business Segments The Company operates in two business segments: High Performance Materials & Components and Flat Rolled Products. The High Performance Materials & Components 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 materials, in long product forms such as ingot, billet, bar, rod, wire, shapes and rectangles, and seamless tubes, plus precision forgings and castings, components 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 and hydrocarbon processing industry, electrical energy, and medical. 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 and hydrocarbon processing 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 Flat Rolled Products 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 operations, were $55.4 million in 2015, $75.3 million in 2014, and $95.9 million in 2013. ATI’s share of Uniti’s loss was $0.1 million in 2015, $8.9 million in 2014, and $7.1 million in 2013, which is included in the Flat Rolled Products segment’s operating profit, and within cost of sales in the consolidated statements of operations. The remaining 50% interest in Uniti is held by VSMPO, a Russian producer of titanium, aluminum, and specialty steel products. In December 2015, the Company announced the idling of the standard stainless melt shop and sheet finishing operations at the Midland, PA facility, and the grain-oriented electrical steel operations in Western PA, including the Bagdad, PA facility. See Note 17 for further explanation. These actions are intended to return the Flat Rolled Products business to profitability as quickly as possible and execute our strategy for sustainable long-term profitable growth. The future restart of the Midland and GOES operations, respectively, will depend on future business conditions and our ability to earn an acceptable return on invested capital on products produced at these operations. Effective with the third quarter 2015, the Company changed its method of determining business unit performance as internally reported to its senior management, CEO, and Board of Directors. Segment operating results are now reported excluding all effects of LIFO inventory accounting and any related changes in net realizable value inventory reserves which offset the Company’s aggregate net debit LIFO valuation balance. Additionally, segment operating results are now measured including all retirement benefit expense attributable to the business unit, for both current and former employees. Previously, the Company excluded defined benefit pension expense and all defined benefit and defined contribution postretirement medical and life insurance expense from segment operating profit. This change better aligns comparative operating performance following the 2014 U.S. defined benefit pension freeze for all non-represented employees and the change in 2015 to a company-wide defined contribution retirement plan structure. Under the Company’s previous reporting methodology, defined contribution retirement plan expense remained in segment operating results whereas defined benefit plan costs were excluded. Operating results for business segments, corporate and closed company and other expenses now include all applicable retirement benefit plan costs for pension and other postretirement benefits. Management considers these changes to be a more useful method of measuring business unit financial performance based on changes to retirement benefit plans and the impact of the Company’s aggregate net debit LIFO position. The segment results below reflect these changes for all periods presented. The measure of segment operating profit also excludes income taxes, corporate expenses, net interest expense, closed company expenses, charges for goodwill impairment (see Note 6) and restructuring charges and other costs (see Note 17). Discontinued operations are also excluded. Management believes segment operating profit, as defined, provides an appropriate measure of controllable operating results at the business segment level. Intersegment sales are generally recorded at full cost or market. Common services are allocated on the basis of estimated utilization.
(In millions) |  | 2015 |  | 2014 |  | 2013
Total sales: |  |  |  |  |  |
High Performance Materials & Components |  | $ | 2,062.7 |  |  | $ | 2,084.6 |  |  | $ | 2,016.7 |
Flat Rolled Products |  | 1,807.9 |  |  | 2,320.2 |  |  | 2,146.6 |
Total sales |  | 3,870.6 |  |  | 4,404.8 |  |  | 4,163.3 |
Intersegment sales: |  |  |  |  |  |
High Performance Materials & Components |  | 76.8 |  |  | 77.8 |  |  | 71.9 |
Flat Rolled Products |  | 74.2 |  |  | 103.6 |  |  | 47.9 |
Total intersegment sales |  | 151.0 |  |  | 181.4 |  |  | 119.8 |
Sales to external customers: |  |  |  |  |  |
High Performance Materials & Components |  | 1,985.9 |  |  | 2,006.8 |  |  | 1,944.8 |
Flat Rolled Products |  | 1,733.7 |  |  | 2,216.6 |  |  | 2,098.7 |
Total sales to external customers |  | $ | 3,719.6 |  |  | $ | 4,223.4 |  |  | $ | 4,043.5 |
Total direct international sales were $1,577.0 million in 2015, $1,607.5 million in 2014, and $1,585.1 million in 2013. Of these amounts, sales by operations in the United States to customers in other countries were $1,215.8 million in 2015, $1,201.8 million in 2014, and $1,175.1 million in 2013.
(In millions) |  | 2015 |  | 2014 |  | 2013
Operating profit (loss): |  |  |  |  |  |
High Performance Materials & Components |  | $ | 157.1 |  |  | $ | 234.8 |  |  | $ | 159.6 |
Flat Rolled Products |  | (241.9 | ) |  | (47.0 | ) |  | (147.8 | )
Total operating profit (loss) |  | (84.8 | ) |  | 187.8 |  |  | 11.8 |
LIFO and net realizable value reserves (See Note 4) |  | 0.1 |  |  | 0.3 |  |  | 45.9 |
Corporate expenses |  | (44.7 | ) |  | (49.6 | ) |  | (48.9 | )
Closed company and other expenses |  | (22.1 | ) |  | (28.3 | ) |  | (30.9 | )
Impairment of goodwill (See Note 6) |  | (126.6 | ) |  | — |  |  | — |
Restructuring and other charges |  | (89.7 | ) |  | — |  |  | (67.5 | )
Interest expense, net |  | (110.2 | ) |  | (108.7 | ) |  | (65.2 | )
Income (loss) before income taxes |  | $ | (478.0 | ) |  | $ | 1.5 |  |  | $ | (154.8 | )
Closed company and other expenses, which were $22.1 million in 2015, $28.3 million in 2014 and $30.9 million in 2013, 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 operations. In 2015, these other items included $4.5 million for closed company environmental costs, $2.3 million for retirement benefit expense and $15.3 million for other expenses including legal matters and real estate costs at closed companies. In 2014, the Company recorded $28.3 million in other charges primarily related to closed companies, including $8.0 million for environmental costs, $7.1 million for retirement benefit expense, $3.8 million for closed company insurance obligations and $9.4 million for other expenses including legal matters and real estate costs at closed companies. In 2013, the Company recorded $30.9 million in other charges primarily related to closed companies, including $16.7 million for retirement benefit expense, $3.9 million for environmental costs, and $10.3 million for other expenses including real estate costs at closed companies. Restructuring and other charges include $54.5 million in long-lived asset impairment charges, $25.4 million of inventory valuation charges for non-PQ titanium sponge (see Note 4 for additional information) and charges for severance and facility idling costs. See Note 17 for additional information on restructuring charges. Certain additional information regarding the Company’s business segments is presented below:
(In millions) |  | 2015 |  | 2014 |  | 2013
Depreciation and amortization: |  |  |  |  |  |
High Performance Materials & Components |  | $ | 131.8 |  |  | $ | 124.4 |  |  | $ | 127.4 |
Flat Rolled Products |  | 55.6 |  |  | 49.3 |  |  | 49.5 |
Corporate |  | 2.5 |  |  | 2.9 |  |  | 3.7 |
Total depreciation and amortization |  | 189.9 |  |  | 176.6 |  |  | 180.6 |
Capital expenditures: |  |  |  |  |  |
High Performance Materials & Components |  | 75.8 |  |  | 51.9 |  |  | 39.5 |
Flat Rolled Products |  | 68.0 |  |  | 172.1 |  |  | 568.1 |
Corporate |  | 0.7 |  |  | 1.7 |  |  | 0.2 |
Total capital expenditures |  | 144.5 |  |  | 225.7 |  |  | 607.8 |
Identifiable assets: |  | 2015 |  | 2014 |  | 2013
High Performance Materials & Components |  | 3,355.5 |  |  | 3,555.8 |  |  | 3,452.2 |
Flat Rolled Products |  | 2,189.5 |  |  | 2,601.6 |  |  | 2,320.9 |
Discontinued Operations |  | 0.9 |  |  | 1.8 |  |  | 9.8 |
Corporate: |  |  |  |  |  |
Prepaid pension cost |  | — |  |  | — |  |  | 5.1 |
Cash and cash equivalents and other |  | 205.8 |  |  | 412.5 |  |  | 1,097.0 |
Total assets |  | $ | 5,751.7 |  |  | $ | 6,571.7 |  |  | $ | 6,885.0 |
Geographic information for external sales based on country of destination, and assets, are as follows:
($ in millions) |  | 2015 |  | Percent of total |  | 2014 |  | Percent of total |  | 2013 |  | Percent of total
External sales: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 2,142.6 |  |  | 58 | % |  | $ | 2,615.9 |  |  | 62 | % |  | $ | 2,458.4 |  |  | 61 | %
China |  | 246.9 |  |  | 7 | % |  | 249.6 |  |  | 6 | % |  | 237.7 |  |  | 6 | %
Japan |  | 202.3 |  |  | 5 | % |  | 89.3 |  |  | 2 | % |  | 124.7 |  |  | 3 | %
United Kingdom |  | 198.2 |  |  | 5 | % |  | 228.4 |  |  | 5 | % |  | 251.5 |  |  | 6 | %
Germany |  | 193.3 |  |  | 5 | % |  | 207.7 |  |  | 5 | % |  | 215.4 |  |  | 5 | %
Canada |  | 154.5 |  |  | 4 | % |  | 147.0 |  |  | 3 | % |  | 141.0 |  |  | 4 | %
France |  | 153.3 |  |  | 4 | % |  | 168.1 |  |  | 4 | % |  | 152.8 |  |  | 4 | %
Mexico |  | 78.4 |  |  | 2 | % |  | 76.5 |  |  | 2 | % |  | 54.9 |  |  | 1 | %
Italy |  | 65.0 |  |  | 2 | % |  | 160.7 |  |  | 4 | % |  | 132.3 |  |  | 3 | %
Other |  | 285.1 |  |  | 8 | % |  | 280.2 |  |  | 7 | % |  | 274.8 |  |  | 7 | %
Total External Sales |  | $ | 3,719.6 |  |  | 100 | % |  | $ | 4,223.4 |  |  | 100 | % |  | $ | 4,043.5 |  |  | 100 | %
($ in millions) |  | 2015 |  | Percent of total |  | 2014 |  | Percent of total |  | 2013 |  | Percent of total
Total assets: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 5,073.1 |  |  | 88 | % |  | $ | 5,868.7 |  |  | 90 | % |  | $ | 6,131.9 |  |  | 89 | %
China |  | 260.0 |  |  | 5 | % |  | 280.5 |  |  | 4 | % |  | 258.1 |  |  | 4 | %
United Kingdom |  | 154.3 |  |  | 3 | % |  | 196.3 |  |  | 3 | % |  | 208.0 |  |  | 3 | %
Luxembourg (a) |  | 124.4 |  |  | 2 | % |  | 81.8 |  |  | 1 | % |  | 145.9 |  |  | 2 | %
Other |  | 139.9 |  |  | 2 | % |  | 144.4 |  |  | 2 | % |  | 141.1 |  |  | 2 | %
Total Assets |  | $ | 5,751.7 |  |  | 100 | % |  | $ | 6,571.7 |  |  | 100 | % |  | $ | 6,885.0 |  |  | 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 Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: 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=51669610&loc=d3e9038-108599 Reference 3: 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=51669610&loc=d3e8971-108599 Reference 4: 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=51669610&loc=d3e8595-108599 Reference 5: 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=51669610&loc=d3e8380-108599 Reference 6: 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=51669610&loc=d3e8933-108599 Reference 7: 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=51669610&loc=d3e8844-108599 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=51669610&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 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: 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=51669610&loc=d3e9054-108599 Reference 11: 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=51669610&loc=d3e8538-108599 Reference 12: 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=51669610&loc=d3e8864-108599 Reference 13: 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=51669610&loc=d3e8924-108599 Reference 14: 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=51669610&loc=d3e8906-108599 + Details
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