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Business Segments | 12 Months Ended
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Dec. 31, 2016
Segment Reporting [Abstract] |
Business Segments | Business Segments The Company operates in two business segments: High Performance Materials & Components (HPMC) and Flat Rolled Products (FRP). The HPMC 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 & defense, oil & gas, electrical energy, and medical. The FRP 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. The major end markets for our flat-rolled products are oil & gas, 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 $20.3 million in 2016, $55.4 million in 2015, and $75.3 million in 2014. ATI’s share of Uniti’s income/(loss) was $0.5 million in 2016, $(0.1) million in 2015, and $(8.9) million in 2014, which is included in the Flat Rolled Products segment’s operating results, 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. 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 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) |  | 2016 |  | 2015 |  | 2014
Total sales: |  |  |  |  |  |
High Performance Materials & Components |  | $ | 1,979.5 |  |  | $ | 2,062.7 |  |  | $ | 2,084.6 |
Flat Rolled Products |  | 1,260.8 |  |  | 1,807.9 |  |  | 2,320.2 |
Total sales |  | 3,240.3 |  |  | 3,870.6 |  |  | 4,404.8 |
Intersegment sales: |  |  |  |  |  |
High Performance Materials & Components |  | 49.1 |  |  | 76.8 |  |  | 77.8 |
Flat Rolled Products |  | 56.6 |  |  | 74.2 |  |  | 103.6 |
Total intersegment sales |  | 105.7 |  |  | 151.0 |  |  | 181.4 |
Sales to external customers: |  |  |  |  |  |
High Performance Materials & Components |  | 1,930.4 |  |  | 1,985.9 |  |  | 2,006.8 |
Flat Rolled Products |  | 1,204.2 |  |  | 1,733.7 |  |  | 2,216.6 |
Total sales to external customers |  | $ | 3,134.6 |  |  | $ | 3,719.6 |  |  | $ | 4,223.4 |
Total direct international sales were $1,277.1 million in 2016, $1,577.0 million in 2015, and $1,607.5 million in 2014. Of these amounts, sales by operations in the United States to customers in other countries were $971.4 million in 2016, $1,215.8 million in 2015, and $1,201.8 million in 2014.
(In millions) |  | 2016 |  | 2015 |  | 2014
Operating profit (loss): |  |  |  |  |  |
High Performance Materials & Components |  | $ | 168.7 |  |  | $ | 157.1 |  |  | $ | 234.8 |
Flat Rolled Products |  | (163.0 | ) |  | (241.9 | ) |  | (47.0 | )
Total operating profit (loss) |  | 5.7 |  |  | (84.8 | ) |  | 187.8 |
LIFO and net realizable value reserves (See Note 4) |  | 0.8 |  |  | 0.1 |  |  | 0.3 |
Corporate expenses |  | (43.4 | ) |  | (44.7 | ) |  | (49.6 | )
Closed operations and other expenses |  | (34.6 | ) |  | (22.1 | ) |  | (28.3 | )
Restructuring and other charges (See Note 17) |  | (538.5 | ) |  | (89.7 | ) |  | — |
Impairment of goodwill (See Note 6) |  | — |  |  | (126.6 | ) |  | — |
Interest expense, net |  | (124.0 | ) |  | (110.2 | ) |  | (108.7 | )
Income (loss) before income taxes |  | $ | (734.0 | ) |  | $ | (478.0 | ) |  | $ | 1.5 |
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 permanent closure of the Midland, PA commodity stainless steel melt and sheet finishing facility and the Bagdad, PA GOES finishing facility. These facilities were indefinitely idled earlier in 2016, and management concluded that the facilities cannot 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 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 4 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 permanent closures of the Midland, PA commodity stainless steel melt and sheet finishing facility 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. Restructuring and other charges for the year ended December 31, 2015 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. Closed operations and other expenses, which were $34.6 million in 2016, $22.1 million in 2015 and $28.3 million in 2014, includes charges incurred in connection with closed operations and other non-operating income or expense. These items are primarily presented in selling and administrative expenses in the consolidated statements of operations. In 2016, these items included $23.8 million for costs at closed facilities, including legal matters and real estate and other facility costs, primarily for Rowley following the announced indefinite idling, $5.8 million for closed operations environmental costs, and $5.0 million for retirement benefit expense. In 2015, the Company recorded $22.1 million in other charges primarily related to closed operations, including $4.5 million for 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 operations. In 2014, the Company recorded $28.3 million in other charges primarily related to closed operations, including $7.1 million for retirement benefit expense, $8.0 million for environmental costs, $3.8 million for insurance obligations, and $9.4 million for other expenses including real estate costs. Certain additional information regarding the Company’s business segments is presented below:
(In millions) |  | 2016 |  | 2015 |  | 2014
Depreciation and amortization: |  |  |  |  |  |
High Performance Materials & Components |  | $ | 118.4 |  |  | $ | 131.8 |  |  | $ | 124.4 |
Flat Rolled Products |  | 48.8 |  |  | 55.6 |  |  | 49.3 |
Corporate |  | 3.1 |  |  | 2.5 |  |  | 2.9 |
Total depreciation and amortization |  | $ | 170.3 |  |  | $ | 189.9 |  |  | $ | 176.6 |
Capital expenditures: |  |  |  |  |  |
High Performance Materials & Components |  | $ | 89.9 |  |  | $ | 75.8 |  |  | $ | 51.9 |
Flat Rolled Products |  | 111.8 |  |  | 68.0 |  |  | 172.1 |
Corporate |  | 0.5 |  |  | 0.7 |  |  | 1.7 |
Total capital expenditures |  | $ | 202.2 |  |  | $ | 144.5 |  |  | $ | 225.7 |
Identifiable assets: |  | 2016 |  | 2015 |  | 2014
High Performance Materials & Components |  | $ | 2,744.3 |  |  | $ | 3,355.5 |  |  | $ | 3,555.8 |
Flat Rolled Products |  | 2,056.4 |  |  | 2,189.5 |  |  | 2,601.6 |
Discontinued Operations |  | 0.4 |  |  | 0.9 |  |  | 1.8 |
Corporate: |  |  |  |  |  |
Deferred Taxes |  | 12.1 |  |  | — |  |  | — |
Cash and cash equivalents and other |  | 356.8 |  |  | 205.8 |  |  | 412.5 |
Total assets |  | $ | 5,170.0 |  |  | $ | 5,751.7 |  |  | $ | 6,571.7 |
Identifiable assets for the HPMC segment decreased by $521 million from December 31, 2015 as a result of the reporting change and the asset impairment charges for Rowley discussed above. Identifiable assets for the FRP segment decreased by $32 million from December 31, 2015 as a result of the reporting change to closed operations for the Midland and Bagdad facilities as discussed above.
($ in millions) |  | 2016 |  | Percent of total |  | 2015 |  | Percent of total |  | 2014 |  | Percent of total
External sales: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 1,857.5 |  |  | 59 | % |  | $ | 2,142.6 |  |  | 58 | % |  | $ | 2,615.9 |  |  | 62 | %
China |  | 214.1 |  |  | 7 | % |  | 246.9 |  |  | 7 | % |  | 249.6 |  |  | 6 | %
United Kingdom |  | 183.8 |  |  | 6 | % |  | 198.2 |  |  | 5 | % |  | 228.4 |  |  | 5 | %
Germany |  | 177.7 |  |  | 6 | % |  | 193.3 |  |  | 5 | % |  | 207.7 |  |  | 5 | %
Japan |  | 151.9 |  |  | 5 | % |  | 202.3 |  |  | 5 | % |  | 89.3 |  |  | 2 | %
France |  | 142.6 |  |  | 4 | % |  | 153.3 |  |  | 4 | % |  | 168.1 |  |  | 4 | %
Canada |  | 97.6 |  |  | 3 | % |  | 154.5 |  |  | 4 | % |  | 147.0 |  |  | 3 | %
Mexico |  | 89.7 |  |  | 3 | % |  | 78.4 |  |  | 2 | % |  | 76.5 |  |  | 2 | %
South Korea |  | 33.5 |  |  | 1 | % |  | 31.9 |  |  | 1 | % |  | 42.8 |  |  | 1 | %
Italy |  | 25.1 |  |  | 1 | % |  | 65.0 |  |  | 2 | % |  | 160.7 |  |  | 4 | %
Other |  | 161.1 |  |  | 5 | % |  | 253.2 |  |  | 7 | % |  | 237.4 |  |  | 6 | %
Total External Sales |  | $ | 3,134.6 |  |  | 100 | % |  | $ | 3,719.6 |  |  | 100 | % |  | $ | 4,223.4 |  |  | 100 | %
($ in millions) |  | 2016 |  | Percent of total |  | 2015 |  | Percent of total |  | 2014 |  | Percent of total
Total assets: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 4,591.5 |  |  | 89 | % |  | $ | 5,073.1 |  |  | 88 | % |  | $ | 5,868.7 |  |  | 90 | %
China |  | 249.3 |  |  | 5 | % |  | 260.0 |  |  | 5 | % |  | 280.5 |  |  | 4 | %
United Kingdom |  | 122.8 |  |  | 2 | % |  | 154.3 |  |  | 3 | % |  | 196.3 |  |  | 3 | %
Luxembourg (a) |  | 67.2 |  |  | 1 | % |  | 124.4 |  |  | 2 | % |  | 81.8 |  |  | 1 | %
Other |  | 139.2 |  |  | 3 | % |  | 139.9 |  |  | 2 | % |  | 144.4 |  |  | 2 | %
Total Assets |  | $ | 5,170.0 |  |  | 100 | % |  | $ | 5,751.7 |  |  | 100 | % |  | $ | 6,571.7 |  |  | 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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&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=68060357&loc=d3e8906-108599 + Details
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