Financial Information for Subsidiary and Guarantor Parent (Tables)

3 Months Ended

Mar. 31, 2017

December 31, 2016



	Guarantor					Non-guarantor
(In millions)	Parent		Subsidiary			Subsidiaries		Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	2.3	$	2.5		$	224.8	$	—		$	229.6
Accounts receivable, net	0.1		107.8			344.2		—			452.1
Intercompany notes receivable	—		—			2,892.9		(2,892.9		)	—
Inventories, net	—		106.7			930.3		—			1,037.0
Prepaid expenses and other current assets	6.6		5.2			36.0		—			47.8
Total current assets	9.0		222.2			4,428.2		(2,892.9		)	1,766.5
Property, plant and equipment, net	1.3		1,583.6			914.0		—			2,498.9
Goodwill	—		—			641.9		—			641.9
Intercompany notes receivable	—		—			200.0		(200.0		)	—
Investment in subsidiaries	5,241.2		37.7			—		(5,278.9		)	—
Other assets	23.0		25.5			214.2		—			262.7
Total assets	$	5,274.5	$	1,869.0		$	6,398.3	$	(8,371.8	)	$	5,170.0
Liabilities and stockholders’ equity:
Accounts payable	$	3.1	$	97.4		$	193.8	$	—		$	294.3
Accrued liabilities	54.6		83.3			171.4		—			309.3
Intercompany notes payable	1,341.1		1,551.8			—		(2,892.9		)	—
Short term debt and current portion of long-term debt	0.4		0.3			104.4		—			105.1
Total current liabilities	1,399.2		1,732.8			469.6		(2,892.9		)	708.7
Long-term debt	1,621.7		150.0			0.2		—			1,771.9
Intercompany notes payable	—		200.0			—		(200.0		)	—
Accrued postretirement benefits	—		244.0			73.7		—			317.7
Pension liabilities	778.5		5.2			44.2		—			827.9
Deferred income taxes	15.6		—			—		—			15.6
Other long-term liabilities	14.7		18.1			50.6		—			83.4
Total liabilities	3,829.7		2,350.1			638.3		(3,092.9		)	3,725.2
Total stockholders’ equity (deficit)	1,444.8		(481.1		)	5,760.0		(5,278.9		)	1,444.8
Total liabilities and stockholders’ equity	$	5,274.5	$	1,869.0		$	6,398.3	$	(8,371.8	)	$	5,170.0

Balance Sheets

March 31, 2017



(In millions)	Guarantor Parent		Subsidiary			Non-guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	2.3	$	7.8		$	149.7	$	—		$	159.8
Accounts receivable, net	0.3		125.6			378.7		—			504.6
Intercompany notes receivable	—		—			3,151.0		(3,151.0		)	—
Inventories, net	—		137.1			914.8		—			1,051.9
Prepaid expenses and other current assets	4.9		6.9			34.5		—			46.3
Total current assets	7.5		277.4			4,628.7		(3,151.0		)	1,762.6
Property, plant and equipment, net	1.2		1,586.6			908.0		—			2,495.8
Goodwill	—		—			642.6		—			642.6
Intercompany notes receivable	—		—			200.0		(200.0		)	—
Investment in subsidiaries	5,381.7		37.7			—		(5,419.4		)	—
Other assets	24.9		19.4			209.1		—			253.4
Total assets	$	5,415.3	$	1,921.1		$	6,588.4	$	(8,770.4	)	$	5,154.4
Liabilities and stockholders’ equity:
Accounts payable	$	2.8	$	157.6		$	186.0	$	—		$	346.4
Accrued liabilities	38.9		81.4			156.1		—			276.4
Intercompany notes payable	1,594.2		1,556.8			—		(3,151.0		)	—
Short term debt and current portion of long-term debt	0.4		0.3			172.1		—			172.8
Total current liabilities	1,636.3		1,796.1			514.2		(3,151.0		)	795.6
Long-term debt	1,622.4		149.9			0.2		—			1,772.5
Intercompany notes payable	—		200.0			—		(200.0		)	—
Accrued postretirement benefits	—		241.1			72.1		—			313.2
Pension liabilities	639.2		5.1			43.5		—			687.8
Deferred income taxes	13.0		—			—		—			13.0
Other long-term liabilities	15.0		19.1			48.8		—			82.9
Total liabilities	3,925.9		2,411.3			678.8		(3,351.0		)	3,665.0
Total stockholders’ equity (deficit)	1,489.4		(490.2		)	5,909.6		(5,419.4		)	1,489.4
Total liabilities and stockholders’ equity	$	5,415.3	$	1,921.1		$	6,588.4	$	(8,770.4	)	$	5,154.4

Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Statements of Operations and Comprehensive Income

For the three months ended March 31, 2016



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries		Eliminations		Consolidated
Sales	$	—		$	213.8		$	543.7	$	—	$	757.5
Cost of sales	19.4			298.5			472.8		—		790.7
Gross profit (loss)	(19.4		)	(84.7		)	70.9		—		(33.2		)
Selling and administrative expenses	21.9			9.7			31.0		—		62.6
Restructuring charges	—			9.0			—		—		9.0
Operating income (loss)	(41.3		)	(103.4		)	39.9		—		(104.8		)
Interest income (expense), net	(31.2		)	(14.1		)	17.0		—		(28.3		)
Other income (loss) including equity in income of unconsolidated subsidiaries	(59.8		)	0.1			0.8		59.7		0.8
Income (loss) before income tax provision (benefit)	(132.3		)	(117.4		)	57.7		59.7		(132.3		)
Income tax provision (benefit)	(34.2		)	(43.4		)	23.7		19.7		(34.2		)
Net income (loss)	(98.1		)	(74.0		)	34.0		40.0		(98.1		)
Less: Net income attributable to noncontrolling interests	—			—			3.1		—		3.1
Net income (loss) attributable to ATI	$	(98.1	)	$	(74.0	)	$	30.9	$	40.0	$	(101.2	)
Comprehensive income (loss) attributable to ATI	$	(80.0	)	$	(57.9	)	$	27.3	$	29.0	$	(81.6	)

Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Statements of Operations and Comprehensive Income

For the three months ended March 31, 2017



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries		Eliminations			Consolidated
Sales	$	—		$	287.2		$	578.7	$	—		$	865.9
Cost of sales	11.0			260.1			482.0		—			753.1
Gross profit (loss)	(11.0		)	27.1			96.7		—			112.8
Selling and administrative expenses	21.2			9.7			28.6		—			59.5
Operating income (loss)	(32.2		)	17.4			68.1		—			53.3
Interest income (expense), net	(38.6		)	(21.2		)	26.3		—			(33.5		)
Other income (loss) including equity in income of unconsolidated subsidiaries	93.9			0.5			2.8		(93.9		)	3.3
Income (loss) before income tax provision (benefit)	23.1			(3.3		)	97.2		(93.9		)	23.1
Income tax provision (benefit)	2.0			(1.1		)	35.5		(34.4		)	2.0
Net income (loss)	21.1			(2.2		)	61.7		(59.5		)	21.1
Less: Net income attributable to noncontrolling interests	—			—			3.6		—			3.6
Net income (loss) attributable to ATI	$	21.1		$	(2.2	)	$	58.1	$	(59.5	)	$	17.5
Comprehensive income (loss) attributable to ATI	$	45.4		$	(0.3	)	$	45.9	$	(51.2	)	$	39.8

For the three months ended March 31, 2017



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	(40.7	)	$	0.5		$	(70.0	)	$	—		$	(110.2	)
Investing Activities:
Purchases of property, plant and equipment	—			(8.7		)	(16.1		)	—			(24.8		)
Net receipts/(payments) on intercompany activity	—			—			(59.1		)	59.1			—
Asset disposals and other	—			0.1			2.5			—			2.6
Cash flows provided by (used in) investing activities	—			(8.6		)	(72.7		)	59.1			(22.2		)
Financing Activities:
Payments on long-term debt and capital leases	(0.1		)	(0.1		)	(0.1		)	—			(0.3		)
Net borrowings under credit facilities	—			—			67.7			—			67.7
Net receipts/(payments) on intercompany activity	45.6			13.5			—			(59.1		)	—
Shares repurchased for income tax withholding on share-based compensation	(4.8		)	—			—			—			(4.8		)
Cash flows provided by (used in) financing activities	40.7			13.4			67.6			(59.1		)	62.6
Increase (decrease) in cash and cash equivalents	$	—		$	5.3		$	(75.1	)	$	—		$	(69.8	)

Condensed Statements of Cash Flows

For the three months ended March 31, 2016



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	(29.2	)	$	(117.3	)	$	85.0		$	—		$	(61.5	)
Investing Activities:
Purchases of property, plant and equipment	(0.2		)	(41.0		)	(28.3		)	—			(69.5		)
Net receipts/(payments) on intercompany activity	—			—			(198.1		)	198.1			—
Asset disposals and other	—			—			0.8			—			0.8
Cash flows provided by (used in) investing activities	(0.2		)	(41.0		)	(225.6		)	198.1			(68.7		)
Financing Activities:
Payments on long-term debt and capital leases	(0.2		)	—			—			—			(0.2		)
Net borrowings under credit facilities	—			—			152.2			—			152.2
Net receipts/(payments) on intercompany activity	40.1			158.0			—			(198.1		)	—
Dividends paid to stockholders	(8.6		)	—			—			—			(8.6		)
Acquisition of noncontrolling interests	—			—			(6.1		)	—			(6.1		)
Cash flows provided by (used in) financing activities	31.3			158.0			146.1			(198.1		)	137.3
Increase (decrease) in cash and cash equivalents	$	1.9		$	(0.3	)	$	5.5		$	—		$	7.1