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Business Segments | 9 Months Ended
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Sep. 30, 2018
Segment Reporting [Abstract] |
Business Segments | Business Segments The Company operates in two business segments: High Performance Materials & Components and Flat Rolled Products. The measure of segment operating profit, which is used to analyze the performance and results of the business segments, 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 and other expenses, restructuring and asset impairment charges, and non-operating gains and losses. Management believes segment operating profit, as defined, provides an appropriate measure of controllable operating results at the business segment level. Following is certain financial information with respect to the Company’s business segments for the periods indicated (in millions):
| Three months ended September 30, |  | Nine months ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Total sales: |  |  |  |  |  |  |
High Performance Materials & Components | $ | 615.2 |  |  | $ | 526.3 |  |  | $ | 1,806.3 |  |  | $ | 1,593.3 |
Flat Rolled Products | 452.5 |  |  | 372.3 |  |  | 1,330.9 |  |  | 1,118.5 |
| 1,067.7 |  |  | 898.6 |  |  | 3,137.2 |  |  | 2,711.8 |
Intersegment sales: |  |  |  |  |  |  |
High Performance Materials & Components | 29.7 |  |  | 13.4 |  |  | 68.2 |  |  | 43.6 |
Flat Rolled Products | 17.8 |  |  | 16.1 |  |  | 60.3 |  |  | 53.0 |
| 47.5 |  |  | 29.5 |  |  | 128.5 |  |  | 96.6 |
Sales to external customers: |  |  |  |  |  |  |
High Performance Materials & Components | 585.5 |  |  | 512.9 |  |  | 1,738.1 |  |  | 1,549.7 |
Flat Rolled Products | 434.7 |  |  | 356.2 |  |  | 1,270.6 |  |  | 1,065.5 |
| $ | 1,020.2 |  |  | $ | 869.1 |  |  | $ | 3,008.7 |  |  | $ | 2,615.2 |
| Three months ended September 30, |  | Nine months ended September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
Operating profit: |  |  |  |  |  |  |
High Performance Materials & Components | $ | 76.0 |  |  | $ | 61.7 |  |  | $ | 259.4 |  |  | $ | 180.6 |
Flat Rolled Products | 29.5 |  |  | (7.3 | ) |  | 66.5 |  |  | 14.6 |
Total operating profit | 105.5 |  |  | 54.4 |  |  | 325.9 |  |  | 195.2 |
LIFO and net realizable value reserves | — |  |  | (0.1 | ) |  | — |  |  | (0.2 | )
Corporate expenses | (14.8 | ) |  | (14.8 | ) |  | (40.9 | ) |  | (36.9 | )
Closed operations and other expenses | (3.4 | ) |  | (12.2 | ) |  | (16.6 | ) |  | (28.4 | )
Impairment of goodwill | — |  |  | (114.4 | ) |  | — |  |  | (114.4 | )
Gain on joint venture deconsolidation (See Note 5) | — |  |  | — |  |  | 15.9 |  |  | — |
Interest expense, net | (24.8 | ) |  | (34.2 | ) |  | (75.8 | ) |  | (102.2 | )
Income before income taxes | $ | 62.5 |  |  | $ | (121.3 | ) |  | $ | 208.5 |  |  | $ | (86.9 | )
Closed operations and other expenses were lower in the third quarter of 2018, compared to the prior year period, primarily due to lower carrying costs for closed facilities, mainly related to property taxes and insurance expenses for the Rowley, UT and Midland, PA locations, compared to the prior year period. On a year to date basis, closed operations and other expenses were lower in 2018 primary due to foreign currency remeasurement gains compared to remeasurement losses in 2017 from the Company’s European Treasury Center operation as well as lower carrying costs for closed facilities. The reduction in interest expense compared to the prior year period is due to the redemption of the Company’s previously outstanding 9.375% Senior Notes due 2019 in the fourth quarter of 2017. During the third quarter of 2017, the Company recorded a $114.4 million goodwill impairment charge to write-off all the goodwill assigned to ATI Cast Products, a titanium investment casting business in the HPMC segment. This goodwill impairment charge was excluded from 2017 HPMC business segment results. On July 12, 2018, the Company acquired the assets of Addaero Manufacturing (Addaero) for $10 million of cash consideration. Addaero is a leader in metal alloy-based additive manufacturing for the aerospace and defense industries, located in New Britain, CT. Management expects the acquisition to expand the Company’s capabilities to provide comprehensive customer solutions ranging from the design of parts for additive manufacturing to the production of ready-to-install components. The acquisition of Addaero is another building block in the strategy to enhance ATI’s full specialty materials capabilities to provide end customers with finished products. This business is reported as part of the HPMC segment from the date of the acquisition. The purchase price allocation includes a $2.0 million technology intangible asset and goodwill of $6.0 million, which is deductible for tax purposes. The final allocation of the purchase price was completed in the third quarter of 2018.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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