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Business Segments | 9 Months Ended
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Sep. 30, 2021
Segment Reporting [Abstract] |
Business Segments | Business SegmentsThe 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 September 30, | Nine months ended September 30,
| 2021 |  | 2020 | 2021 |  | 2020
Total sales: |  |  |  |  |  |
High Performance Materials & Components | $ | 325.0 |  |  | $ | 230.1 |  | $ | 908.9 |  |  | $ | 995.3 |
Advanced Alloys & Solutions | 464.7 |  |  | 393.3 |  | 1,280.1 |  |  | 1,487.1 |
| 789.7 |  |  | 623.4 |  | 2,189.0 |  |  | 2,482.4 |
Intersegment sales: |  |  |  |  |  |
High Performance Materials & Components | 25.0 |  |  | 8.8 |  | 67.4 |  |  | 53.0 |
Advanced Alloys & Solutions | 39.0 |  |  | 16.6 |  | 87.2 |  |  | 105.6 |
| 64.0 |  |  | 25.4 |  | 154.6 |  |  | 158.6 |
Sales to external customers: |  |  |  |  |  |
High Performance Materials & Components | 300.0 |  |  | 221.3 |  | 841.5 |  |  | 942.3 |
Advanced Alloys & Solutions | 425.7 |  |  | 376.7 |  | 1,192.9 |  |  | 1,381.5 |
| $ | 725.7 |  |  | $ | 598.0 |  | $ | 2,034.4 |  |  | $ | 2,323.8 |
| Three months ended September 30, |  | Nine months ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
EBITDA: |  |  |  |  |  |  |
High Performance Materials & Components | $ | 37.4 |  |  | $ | 16.8 |  |  | $ | 99.2 |  |  | $ | 122.1 |
Advanced Alloys & Solutions | 56.8 |  |  | 11.0 |  |  | 142.5 |  |  | 85.5 |
Total segment EBITDA | 94.2 |  |  | 27.8 |  |  | 241.7 |  |  | 207.6 |
LIFO and net realizable value reserves | — |  |  | — |  |  | — |  |  | — |
Corporate expenses | (12.9) |  |  | (10.2) |  |  | (41.0) |  |  | (29.7) |
Closed operations and other expense | (1.4) |  |  | (1.0) |  |  | (4.5) |  |  | (4.6) |
Total ATI Adjusted EBITDA | 79.9 |  |  | 16.6 |  |  | 196.2 |  |  | 173.3 |
Depreciation & amortization (a) | (35.6) |  |  | (35.4) |  |  | (108.0) |  |  | (108.3) |
Interest expense, net | (25.1) |  |  | (25.1) |  |  | (72.2) |  |  | (68.7) |
Restructuring and other credits (charges) (See Note 7) | 2.3 |  |  | (2.3) |  |  | 8.5 |  |  | (27.0) |
Strike related costs | (22.9) |  |  | — |  |  | (63.2) |  |  | — |
Retirement benefit settlement gain (See Note 12) | 64.9 |  |  | — |  |  | 64.9 |  |  | — |
Impairment of goodwill | — |  |  | — |  |  | — |  |  | (287.0) |
Joint venture restructuring charge (See Note 6) | — |  |  | — |  |  | — |  |  | (2.4) |
Debt extinguishment charge (See Note 8) | — |  |  | — |  |  | — |  |  | (21.5) |
Gain on asset sales and sale of business (See Notes 5 and 6) | 13.7 |  |  | — |  |  | 13.7 |  |  | 2.5 |
Income (loss) before income taxes | $ | 77.2 |  |  | $ | (46.2) |  |  | $ | 39.9 |  |  | $ | (339.1) |
(a) The following is depreciation & amortization by each business segment:
| Three months ended September 30, |  | Nine months ended September 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
High Performance Materials & Components | $ | 18.2 |  |  | $ | 19.5 |  |  | $ | 57.0 |  |  | $ | 58.5 |
Advanced Alloys & Solutions | 16.3 |  |  | 15.1 |  |  | 47.9 |  |  | 47.4 |
Other | 1.1 |  |  | 0.8 |  |  | 3.1 |  |  | 2.4 |
| $ | 35.6 |  |  | $ | 35.4 |  |  | 108.0 |  |  | 108.3 |
Corporate expenses in the third quarter and first nine months of 2021 reflect higher incentive compensation costs compared to the prior year periods. The first nine months of 2020 included reversals of previously-recognized incentive compensation expense due to COVID-19 pandemic impacts. The Company’s collective bargaining agreement (CBA) with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied & Industrial Service Workers International Union, AFL-CIO, CLC (USW) involving approximately 1,100 active full-time represented employees located primarily within the AA&S segment operations, as well as a number of inactive employees, expired on February 28, 2021. USW-represented employees continued to work under the terms of the expired CBA until March 30, 2021 when they engaged in a strike. On July 14, 2021, ATI announced that a new four-year labor agreement with the USW was ratified, ending the strike. During the third quarter of 2021, the Company recorded $22.9 million in strike related costs, of which $21.5 million were excluded from AA&S segment EBITDA and $1.4 million were excluded from HPMC segment EBITDA. During the first nine months of 2021, the Company recorded $63.2 million in strike related costs, of which $59.7 million were excluded from AA&S segment EBITDA and $3.5 million were excluded from HPMC segment EBITDA. These items primarily consisted of overhead costs recognized in the period due to below-normal operating rates and higher costs for outside conversion activities. 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.

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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