Financial Information for Subsidiary and Guarantor Parent (Tables)

6 Months Ended

Jun. 30, 2018

Condensed Statement of Income Captions [Line Items]

June 30, 2018



(In millions)	Guarantor Parent		Subsidiary			Non-guarantor Subsidiaries		Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	1.9	$	9.1		$	111.4	$	—		$	122.4
Accounts receivable, net	—		193.9			428.0		—			621.9
Intercompany notes receivable	—		—			3,808.2		(3,808.2		)	—
Short-term contract assets	—		—			47.7		—			47.7
Inventories, net	—		233.4			1,020.7		—			1,254.1
Prepaid expenses and other current assets	12.2		33.5			34.5		—			80.2
Total current assets	14.1		469.9			5,450.5		(3,808.2		)	2,126.3
Property, plant and equipment, net	0.9		1,556.8			921.3		—			2,479.0
Goodwill	—		—			531.0		—			531.0
Intercompany notes receivable	—		—			200.0		(200.0		)	—
Investment in subsidiaries	6,008.5		37.7			—		(6,046.2		)	—
Other assets	27.3		34.8			194.9		—			257.0
Total assets	$	6,050.8	$	2,099.2		$	7,297.7	$	(10,054.4	)	$	5,393.3
Liabilities and stockholders’ equity:
Accounts payable	$	3.2	$	177.9		$	248.2	$	—		$	429.3
Accrued liabilities	54.6		60.9			109.8		—			225.3
Intercompany notes payable	2,019.9		1,788.3			—		(3,808.2		)	—
Short-term contract liabilities	—		32.9			37.5		—			70.4
Short-term debt and current portion of long-term debt	0.2		1.0			15.1		—			16.3
Total current liabilities	2,077.9		2,061.0			410.6		(3,808.2		)	741.3
Long-term debt	1,276.9		152.2			106.4		—			1,535.5
Intercompany notes payable	—		200.0			—		(200.0		)	—
Accrued postretirement benefits	—		245.8			60.3		—			306.1
Pension liabilities	626.4		4.1			47.1		—			677.6
Deferred income taxes	9.7		—			—		—			9.7
Long-term contract liabilities	—		—			14.6		—			14.6
Other long-term liabilities	18.0		17.5			31.1		—			66.6
Total liabilities	4,008.9		2,680.6			670.1		(4,008.2		)	3,351.4
Total stockholders’ equity (deficit)	2,041.9		(581.4		)	6,627.6		(6,046.2		)	2,041.9
Total liabilities and stockholders’ equity	$	6,050.8	$	2,099.2		$	7,297.7	$	(10,054.4	)	$	5,393.3

Balance Sheets

December 31, 2017



	Guarantor					Non-guarantor
(In millions)	Parent		Subsidiary			Subsidiaries		Eliminations			Consolidated
Assets:
Cash and cash equivalents	$	2.1	$	13.5		$	126.0	$	—		$	141.6
Accounts receivable, net	0.2		141.6			403.5		—			545.3
Intercompany notes receivable	—		—			3,505.6		(3,505.6		)	—
Inventories, net	—		207.9			968.2		—			1,176.1
Prepaid expenses and other current assets	6.6		4.5			41.6		—			52.7
Total current assets	8.9		367.5			5,044.9		(3,505.6		)	1,915.7
Property, plant and equipment, net	0.9		1,581.6			913.2		—			2,495.7
Goodwill	—		—			531.4		—			531.4
Intercompany notes receivable	—		—			200.0		(200.0		)	—
Investment in subsidiaries	5,645.6		37.7			—		(5,683.3		)	—
Other assets	25.4		18.0			199.2		—			242.6
Total assets	$	5,680.8	$	2,004.8		$	6,888.7	$	(9,388.9	)	$	5,185.4
Liabilities and stockholders’ equity:
Accounts payable	$	3.0	$	180.3		$	236.8	$	—		$	420.1
Accrued liabilities	54.1		88.5			139.8		—			282.4
Intercompany notes payable	1,836.5		1,669.1			—		(3,505.6		)	—
Short-term debt and current portion of long-term debt	0.3		0.6			9.2		—			10.1
Total current liabilities	1,893.9		1,938.5			385.8		(3,505.6		)	712.6
Long-term debt	1,275.7		150.7			104.2		—			1,530.6
Intercompany notes payable	—		200.0			—		(200.0		)	—
Accrued postretirement benefits	—		250.2			67.6		—			317.8
Pension liabilities	644.3		4.4			48.3		—			697.0
Deferred income taxes	9.7		—			—		—			9.7
Other long-term liabilities	12.7		17.2			43.3		—			73.2
Total liabilities	3,836.3		2,561.0			649.2		(3,705.6		)	3,340.9
Total stockholders’ equity (deficit)	1,844.5		(556.2		)	6,239.5		(5,683.3		)	1,844.5
Total liabilities and stockholders’ equity	$	5,680.8	$	2,004.8		$	6,888.7	$	(9,388.9	)	$	5,185.4

Statements of Operations and Comprehensive Income

Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Statements of Income and Comprehensive Income

For the three months ended June 30, 2018



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	343.2		$	666.3		$	—		$	1,009.5
Cost of sales	3.9			323.3			508.6			—			835.8
Gross profit (loss)	(3.9		)	19.9			157.7			—			173.7
Selling and administrative expenses	24.4			7.6			30.7			—			62.7
Operating income (loss)	(28.3		)	12.3			127.0			—			111.0
Nonoperating retirement benefit expense	(3.5		)	(4.8		)	(0.5		)	—			(8.8		)
Interest income (expense), net	(34.2		)	(28.1		)	36.8			—			(25.5		)
Other income (loss) including equity in income of unconsolidated subsidiaries	146.5			2.3			0.2			(145.2		)	3.8
Income (loss) before income tax provision (benefit)	80.5			(18.3		)	163.5			(145.2		)	80.5
Income tax provision (benefit)	4.9			(4.5		)	24.9			(20.4		)	4.9
Net income (loss)	75.6			(13.8		)	138.6			(124.8		)	75.6
Less: Net income attributable to noncontrolling interests	—			—			2.8			—			2.8
Net income (loss) attributable to ATI	$	75.6		$	(13.8	)	$	135.8		$	(124.8	)	$	72.8
Comprehensive income (loss) attributable to ATI	$	73.1		$	(11.5	)	$	112.8		$	(101.0	)	$	73.4

Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Statements of Income and Comprehensive Income

For the six months ended June 30, 2018



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	689.6		$	1,298.9		$	—		$	1,988.5
Cost of sales	8.0			646.5			1,011.7			—			1,666.2
Gross profit (loss)	(8.0		)	43.1			287.2			—			322.3
Selling and administrative expenses	48.1			17.9			63.8			—			129.8
Operating income (loss)	(56.1		)	25.2			223.4			—			192.5
Nonoperating retirement benefit expense	(6.6		)	(9.7		)	(0.8		)	—			(17.1		)
Interest income (expense), net	(67.2		)	(53.8		)	70.0			—			(51.0		)
Other income (loss) including equity in income of unconsolidated subsidiaries	275.9			19.1			0.7			(274.1		)	21.6
Income (loss) before income tax provision (benefit)	146.0			(19.2		)	293.3			(274.1		)	146.0
Income tax provision (benefit)	9.9			(4.3		)	45.1			(40.8		)	9.9
Net income (loss)	136.1			(14.9		)	248.2			(233.3		)	136.1
Less: Net income attributable to noncontrolling interests	—			—			5.3			—			5.3
Net income (loss) attributable to ATI	$	136.1		$	(14.9	)	$	242.9		$	(233.3	)	$	130.8
Comprehensive income (loss) attributable to ATI	$	176.1		$	(10.2	)	$	236.8		$	(235.7	)	$	167.0

Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Statements of Income and Comprehensive Income

For the three months ended June 30, 2017



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	291.2		$	589.0		$	—		$	880.2
Cost of sales	5.1			274.1			476.7			—			755.9
Gross profit (loss)	(5.1		)	17.1			112.3			—			124.3
Selling and administrative expenses	21.9			8.6			34.5			—			65.0
Operating income (loss)	(27.0		)	8.5			77.8			—			59.3
Nonoperating retirement benefit expense	(8.1		)	(4.6		)	(1.0		)	—			(13.7		)
Interest income (expense), net	(39.7		)	(22.5		)	27.7			—			(34.5		)
Other income (loss) including equity in income of unconsolidated subsidiaries	86.1			0.3			(0.1		)	(86.1		)	0.2
Income (loss) before income tax provision (benefit)	11.3			(18.3		)	104.4			(86.1		)	11.3
Income tax provision (benefit)	(2.1		)	(6.6		)	33.6			(27.0		)	(2.1		)
Net income (loss)	13.4			(11.7		)	70.8			(59.1		)	13.4
Less: Net income attributable to noncontrolling interests	—			—			3.3			—			3.3
Net income (loss) attributable to ATI	$	13.4		$	(11.7	)	$	67.5		$	(59.1	)	$	10.1
Comprehensive income (loss) attributable to ATI	$	17.8		$	(11.3	)	$	92.5		$	(84.7	)	$	14.3

Allegheny Technologies Incorporated

Financial Information for Subsidiary and Guarantor Parent

Statements of Income and Comprehensive Income

For the six months ended June 30, 2017



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Sales	$	—		$	578.4		$	1,167.7		$	—		$	1,746.1
Cost of sales	9.1			529.7			958.2			—			1,497.0
Gross profit (loss)	(9.1		)	48.7			209.5			—			249.1
Selling and administrative expenses	42.0			18.1			62.8			—			122.9
Operating income (loss)	(51.1		)	30.6			146.7			—			126.2
Nonoperating retirement benefit expense	(16.2		)	(9.3		)	(1.8		)	—			(27.3		)
Interest income (expense), net	(78.3		)	(43.7		)	54.0			—			(68.0		)
Other income (loss) including equity in income of unconsolidated subsidiaries	180.0			0.8			2.7			(180.0		)	3.5
Income (loss) before income tax provision (benefit)	34.4			(21.6		)	201.6			(180.0		)	34.4
Income tax provision (benefit)	(0.1		)	(7.7		)	69.1			(61.4		)	(0.1		)
Net income (loss)	34.5			(13.9		)	132.5			(118.6		)	34.5
Less: Net income attributable to noncontrolling interests	—			—			6.9			—			6.9
Net income (loss) attributable to ATI	$	34.5		$	(13.9	)	$	125.6		$	(118.6	)	$	27.6
Comprehensive income (loss) attributable to ATI	$	63.2		$	(11.6	)	$	138.4		$	(135.9	)	$	54.1

Condensed Statements of Cash Flows

For the six months ended June 30, 2018



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	(54.2	)	$	(137.9	)	$	227.1		$	—		$	35.0
Investing Activities:
Purchases of property, plant and equipment	(1.0		)	(14.4		)	(55.2		)	—			(70.6		)
Net receipts/(payments) on intercompany activity	—			—			(197.1		)	197.1			—
Asset disposals and other	—			0.9			(0.1		)	—			0.8
Cash flows provided by (used in) investing activities	(1.0		)	(13.5		)	(252.4		)	197.1			(69.8		)
Financing Activities:
Borrowings on long-term debt	—			—			7.1			—			7.1
Payments on long-term debt and capital leases	(0.1		)	(0.2		)	(2.5		)	—			(2.8		)
Net borrowings under credit facilities	—			—			3.4			—			3.4
Net receipts/(payments) on intercompany activity	61.6			135.5			—			(197.1		)	—
Sales to noncontrolling interests	—			11.7			2.7			—			14.4
Shares repurchased for income tax withholding on share-based compensation and other	(6.5		)	—			—			—			(6.5		)
Cash flows provided by (used in) financing activities	55.0			147.0			10.7			(197.1		)	15.6
Decrease in cash and cash equivalents	$	(0.2	)	$	(4.4	)	$	(14.6	)	$	—		$	(19.2	)

Condensed Statements of Cash Flows

For the six months ended June 30, 2017



(In millions)	Guarantor Parent			Subsidiary			Non-guarantor Subsidiaries			Eliminations			Consolidated
Cash flows provided by (used in) operating activities	$	(54.6	)	$	(55.4	)	$	24.5		$	—		$	(85.5	)
Investing Activities:
Purchases of property, plant and equipment	—			(19.9		)	(35.4		)	—			(55.3		)
Net receipts/(payments) on intercompany activity	—			—			(135.3		)	135.3			—
Asset disposals and other	—			0.1			3.2			—			3.3
Cash flows provided by (used in) investing activities	—			(19.8		)	(167.5		)	135.3			(52.0		)
Financing Activities:
Borrowings on long-term debt	—			—			7.3			—			7.3
Payments on long-term debt and capital leases	(0.2		)	(0.2		)	(0.4		)	—			(0.8		)
Net borrowings under credit facilities	—			—			59.4			—			59.4
Debt issuance costs	—			—			(0.8		)	—			(0.8		)
Net receipts/(payments) on intercompany activity	59.8			75.5			—			(135.3		)	—
Sale to noncontrolling interests	—			—			2.2			—			2.2
Shares repurchased for income tax withholding on share-based compensation	(4.8		)	—			—			—			(4.8		)
Cash flows provided by (used in) financing activities	54.8			75.3			67.7			(135.3		)	62.5
Increase (decrease) in cash and cash equivalents	$	0.2		$	0.1		$	(75.3	)	$	—		$	(75.0	)