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Revenue from Contracts with Customers
 12 Months Ended
Dec. 31, 2020
Revenue from Contract with Customer [Abstract]  
Revenue from Contracts with Customers Revenue from Contracts with Customers
Adoption Method and Impact
On January 1, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers. The Company applied ASC 606 to all contracts not completed at January 1, 2018 and adopted the accounting standard using the modified retrospective method, with the cumulative effect of initially applying ASC 606 recognized at the beginning of the 2018 fiscal year. The Company recognized a $15.5 million increase to retained earnings at the beginning of the 2018 fiscal year for the cumulative effect of adoption of this standard, representing the favorable impact to prior results had the over-time revenue recognition requirements under ASC 606 been applied to several customer agreements. There was no impact to cash flow from operating activities on the consolidated statement of cash flows as a result of this accounting standard adoption.
Disaggregation of Revenue
The Company operates in two business segments: HPMC and AA&S. Revenue is disaggregated within these two business segments by diversified global markets, primary geographical markets, and diversified products. Comparative information of the Company’s overall revenues (in millions) by global and geographical markets for the fiscal years ended December 31, 2020, 2019 and 2018 were as follows:
(in millions)202020192018
HPMCAA&STotalHPMCAA&STotalHPMCAA&STotal
Diversified Global Markets:
Aerospace & Defense$946.9 $413.1 $1,360.0 $1,624.1 $506.3 $2,130.4 $1,562.9 $402.6 $1,965.5 
Energy*106.2 512.7 618.9 153.6 643.3 796.9 133.9 646.8 780.7 
Automotive5.5 257.7 263.2 10.5 286.1 296.6 9.5 313.9 323.4 
Electronics0.9 176.8 177.7 0.5 162.7 163.2 1.5 155.4 156.9 
Food Equipment & Appliances— 159.2 159.2 0.3 205.5 205.8 0.4 244.5 244.9 
Construction/Mining18.6 123.4 142.0 42.5 152.5 195.0 72.7 153.3 226.0 
Medical47.7 71.4 119.1 85.4 87.0 172.4 106.0 77.1 183.1 
Other38.8 103.2 142.0 61.6 100.6 162.2 76.2 89.9 166.1 
Total$1,164.6 $1,817.5 $2,982.1 $1,978.5 $2,144.0 $4,122.5 $1,963.1 $2,083.5 $4,046.6 
*Includes the oil & gas, downstream processing, and specialty energy markets.
(in millions)202020192018
HPMCAA&STotalHPMCAA&STotalHPMCAA&STotal
Primary Geographical Market:
United States$641.0 $1,168.1 $1,809.1 $1,042.6 $1,412.0 $2,454.6 $983.6 $1,364.5 $2,348.1 
China31.0 284.5 315.5 93.9 261.7 355.6 71.2 248.8 320.0 
United Kingdom101.9 24.6 126.5 156.7 17.1 173.8 225.6 16.5 242.1 
Germany76.6 48.8 125.4 147.2 72.1 219.3 159.0 88.2 247.2 
Japan44.7 41.5 86.2 95.0 52.7 147.7 128.1 86.8 214.9 
France66.6 18.4 85.0 132.7 22.8 155.5 146.3 37.3 183.6 
Rest of World202.8 231.6 434.4 310.4 305.6 616.0 249.3 241.4 490.7 
Total$1,164.6 $1,817.5 $2,982.1 $1,978.5 $2,144.0 $4,122.5 $1,963.1 $2,083.5 $4,046.6 
Comparative information of the Company’s major high-value and standard products based on their percentages of sales is included in the following table. In conjunction with the Company’s announced ongoing exit of standard stainless products, ATI reclassified certain items as High-Value Products within AA&S segment results. Prior period information reflects these reclassifications. HRPF conversion service sales in the AA&S segment are excluded from this presentation.
202020192018
HPMCAA&STotalHPMCAA&STotalHPMCAA&STotal
Diversified Products:
High-Value Products
Nickel-based alloys and specialty alloys38 %29 %33 %38 %33 %35 %37 %31 %33 %
Titanium and titanium-based alloys28 %11 %17 %26 %11 %18 %23 %10 %17 %
PRS products— %25 %15 %— %23 %12 %— %23 %12 %
Precision forgings, castings and components34 %— %14 %36 %— %18 %40 %— %20 %
Zirconium and related alloys— %15 %9 %— %11 %6 %— %11 %5 %
Total High-Value Products100 %80 %88 %100 %78 %89 %100 %75 %87 %
Standard Products
Standard stainless products— %20 %12 %— %22 %11 %— %25 %13 %
Total100 %100 %100 %100 %100 %100 %100 %100 %100 %
The Company maintains a backlog of confirmed orders totaling $1.4 billion, $2.3 billion and $2.2 billion at December 31, 2020, 2019 and 2018, respectively. Due to the structure of the Company’s LTAs, 75% of this backlog at December 31, 2020 represented booked orders with performance obligations that will be satisfied within the next twelve months. The backlog does not reflect any elements of variable consideration.
Accounts Receivable
As of December 31, 2020 and 2019, accounts receivable with customers were $350.1 million and $558.7 million, respectively. The following represents the rollforward of accounts receivable - reserve for doubtful accounts for the fiscal years ended December 31, 2020, 2019 and 2018:
(in millions)
Accounts Receivable - Reserve for Doubtful Accounts
Balance as of December 31, 2017$5.9 
Expense to increase the reserve1.9 
Write-off of uncollectible accounts(1.8)
Balance as of December 31, 20186.0 
Expense to increase the reserve0.2 
Write-off of uncollectible accounts(1.6)
Balance as of December 31, 20194.6 
Expense to increase the reserve0.2 
Write-off of uncollectible accounts(0.5)
Balance as of December 31, 2020$4.3 
Contract balances
The following represents the rollforward of contract assets and liabilities for the fiscal years ended December 31, 2020, 2019 and 2018:
(in millions)
Contract Assets
Short-term202020192018
Balance as of beginning of fiscal year$38.5 $51.2 $36.5 
Recognized in current year84.2 74.5 92.9 
Reclassified to accounts receivable(83.9)(79.9)(95.8)
Impairment— — — 
Reclassification to/from long-term0.1 — 16.8 
Divestiture— (7.3)— 
Other— — 0.8 
Balance as of period end$38.9 $38.5 $51.2 
Long-term202020192018
Balance as of beginning of fiscal year$0.1 $0.1 $16.9 
Recognized in current year— — — 
Reclassified to accounts receivable— — — 
Impairment— — — 
Reclassification to/from short-term(0.1)— (16.8)
Balance as of period end$— $0.1 $0.1 
(in millions)
Contract Liabilities
Short-term202020192018
Balance as of beginning of fiscal year$78.7 $71.4 $69.7 
Recognized in current year170.3 126.1 76.7 
Amounts in beginning balance reclassified to revenue(54.9)(49.2)(49.6)
Current year amounts reclassified to revenue(90.1)(76.0)(42.7)
Other— 1.9 2.7 
Reclassification to/from long-term7.8 4.5 14.6 
Balance as of period end$111.8 $78.7 $71.4 
Long-term202020192018
Balance as of beginning of fiscal year$25.9 $7.3 $22.2 
Recognized in current year14.9 24.2 0.7 
Amounts in beginning balance reclassified to revenue(1.0)(1.1)(1.0)
Current year amounts reclassified to revenue— — — 
Other— — — 
Reclassification to/from short-term(7.8)(4.5)(14.6)
Balance as of period end$32.0 $25.9 $7.3 
Contract costs for obtaining and fulfilling a contract were $5.4 million and $6.5 million as of December 31, 2020 and 2019, respectively, which are reported in other long-term assets on the consolidated balance sheet. Amortization expense for the fiscal years ended December 31, 2020, 2019 and 2018 of these contract costs was $1.4 million, $1.4 million, and $1.2 million, respectively.