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Business Segments
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company operates in two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). In the fourth quarter 2020, the Company changed its segment performance measure from segment operating profit to segment EBITDA, based on internal reporting changes. Prior period results are presented using the new performance measure. The measure of segment EBITDA 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, depreciation and amortization, corporate expenses, net interest expense, closed operations and other income (expense), charges for goodwill and asset impairments, restructuring and other credits/charges, strike related costs, debt extinguishment charges and non-operating gains or losses. Management believes segment EBITDA, 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 June 30,Six months ended June 30,
 2021202020212020
Total sales:
High Performance Materials & Components$318.7 $316.7 $583.9 $765.2 
Advanced Alloys & Solutions339.4 506.2 815.4 1,093.8 
658.1 822.9 1,399.3 1,859.0 
Intersegment sales:
High Performance Materials & Components18.1 16.0 42.4 44.2 
Advanced Alloys & Solutions23.8 36.6 48.2 89.0 
41.9 52.6 90.6 133.2 
Sales to external customers:
High Performance Materials & Components300.6 300.7 541.5 721.0 
Advanced Alloys & Solutions315.6 469.6 767.2 1,004.8 
$616.2 $770.3 $1,308.7 $1,725.8 
Three months ended June 30,Six months ended June 30,
 2021202020212020
EBITDA:
High Performance Materials & Components$37.2 $28.7 $61.8 $105.3 
Advanced Alloys & Solutions36.0 33.4 85.7 74.5 
Total segment EBITDA73.2 62.1 147.5 179.8 
LIFO and net realizable value reserves— — — — 
Corporate expenses(15.9)(7.2)(28.1)(19.5)
Closed operations and other income (expense)(3.6)2.7 (3.1)(3.6)
Total ATI Adjusted EBITDA53.7 57.6 116.3 156.7 
Depreciation & amortization (a)(36.3)(35.6)(72.4)(72.9)
Interest expense, net(23.7)(21.7)(47.1)(43.6)
Restructuring and other credits (charges) (See Note 6)6.2 (16.7)6.2 (24.7)
Strike related costs(40.3)— (40.3)— 
Impairment of goodwill— (287.0)— (287.0)
Joint venture restructuring charge (See Note 5)— (2.4)— (2.4)
Debt extinguishment charge (See Note 7)— (21.5)— (21.5)
Gain on asset sales— — — 2.5 
Loss before income taxes$(40.4)$(327.3)$(37.3)$(292.9)
(a) The following is depreciation & amortization by each business segment:
Three months ended June 30,Six months ended June 30,
2021202020212020
High Performance Materials & Components$19.2 $19.5 $38.8 $39.0 
Advanced Alloys & Solutions16.1 15.331.6 32.3 
Other1.0 0.82.0 1.6 
$36.3 $35.6 72.4 72.9 

Corporate expenses in the second quarter and first six months of 2021 reflect higher incentive compensation costs compared to the prior year periods, which also included reversals of previously-recognized expense due to COVID-19 pandemic impacts.
Closed operations and other income for the second quarter and six months of 2020 included benefits from settlements of contract indemnity obligations. Closed operations and other expense in the first six months of 2021 compared to 2020 also reflect lower costs at closed facilities, including retirement benefit expense, insurance costs, and real estate and other facility costs, and changes in foreign currency remeasurement impacts primarily related to ATI’s European Treasury operation.
During the second quarter of 2021, the Company recorded $40.3 million in strike related costs, of which $38.2 million were excluded from AA&S segment EBITDA and $2.1 million were excluded from HPMC segment EBITDA. These items primarily consisted of overhead costs recognized in the period due to below-normal operating rates, higher costs for outside conversion activities, and ongoing benefit costs for striking employees. See Note 16 for further information.
During the second quarter of 2020, the Company recorded a $287.0 million goodwill impairment charge for the partial impairment of the Forged Products reporting unit goodwill in the HPMC segment. This goodwill impairment charge was excluded from 2020 HPMC business segment EBITDA.
The $2.5 million gain on asset sales for the first six months of 2020 consists of a gain on the sale of certain oil and gas rights (see Note 6).