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Divestitures - (Notes) | 6 Months Ended
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Jun. 30, 2019
Discontinued Operations and Disposal Groups [Abstract] |
Divestitures | Divestitures On June 3, 2019, the Company completed the sale of two non-core forging facilities for $37 million. Located in Portland, IN and Lebanon, KY, these operations primarily use traditional forging methods to produce carbon steel forged products for use in the oil & gas, transportation and construction & mining industries. The Company received cash proceeds, net of transaction costs and preliminary net working capital adjustments, of $33.4 million on the sale of this business during the second quarter ended June 30, 2019, which is reported as an investing activity on the consolidated statement of cash flows. With $10.4 million of goodwill allocated to these operations from ATI’s Forged Products reporting unit, the Company recognized a $7.7 million pre-tax loss which is recorded in other income, net, on the consolidated statement of income for the second quarter ended June 30, 2019 and excluded from HPMC segment results. This business is reported as part of the HPMC segment through the date of sale. Sales from these two forging facilities in the 2018 fiscal year were $86 million in the aggregate. On June 4, 2019, the Company announced it had reached a definitive agreement to sell its Cast Products business, which produces titanium investment castings that are primarily used by aerospace & defense OEMs in the production of commercial jet airframes and engines. As part of the $127 million transaction, ATI will retain a small post-casting machining facility in Salem, OR and provide these services to the buyer and others. The following net assets of the titanium investment castings business are classified as held for sale and reported in prepaid expenses and other current assets, other long-term assets, other current liabilities and other long-term liabilities on the consolidated balance sheet as of June 30, 2019.
(in millions) |  | June 30, 2019
Assets |  |
Accounts receivable, net |  | $ | 13.9 |
Short-term contract assets |  | 7.4 |
Inventories, net |  | 19.3 |
Prepaid expenses and other current assets |  | 0.2 |
Total Current Assets |  | 40.8 |
Property, plant and equipment, net |  | 52.9 |
Other assets |  | 21.1 |
Total Non-Current Assets |  | 74.0 |
Total Assets |  | 114.8 |
Liabilities |  |
Accounts payable |  | 5.5 |
Other current liabilities |  | 4.7 |
Total Current Liabilities |  | 10.2 |
Other long-term liabilities |  | 0.1 |
Total Liabilities |  | 10.3 |
Net assets held for sale |  | $ | 104.5 |
This transaction closed on July 22, 2019, and the Company received cash proceeds, net of transaction costs and preliminary working capital adjustments, of $123 million on the sale of this business. ATI expects to recognize a pre-tax gain of between $7 million and $10 million on the transaction during the third quarter 2019, subject to final adjustments including net working capital as of the closing date and the carrying value of long-lived assets of the retained Salem operation. This business is reported as part of the HPMC segment through the date of sale. Cast Products’ sales were $105 million in fiscal year 2018.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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