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Business Segments | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
Business Segments | Business Segments The Company operates under two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). HPMC is comprised of the Specialty Materials and Forged Products businesses, as well as the ATI Europe distribution operations. Approximately 75% of its revenue is derived from the aerospace & defense markets including over 40% of its revenue from products for commercial jet engines. Other major HPMC end markets include medical and energy. HPMC produces a wide range of high performance materials, components, and advanced metallic powder alloys. These are made from nickel-based alloys and superalloys, titanium and titanium-based alloys, and a variety of other specialty materials. Capabilities range from cast/wrought and powder alloy development to final production of highly engineered finished components, including those used for next-generation jet engine forgings and 3D-printed aerospace products. The AA&S segment includes the Specialty Alloys & Components business, including the primary titanium operations in Richland, WA, the Specialty Rolled Products business, the 60%-owned STAL PRS joint venture, and the Uniti and A&T Stainless 50%-owned joint ventures that are reported in AA&S segment results under the equity method of accounting. See Note 7 for further information on the Company’s joint ventures. AA&S is focused on delivering high-value flat products primarily to the energy, aerospace, and defense end-markets, which comprise approximately 45% of its revenue. Other important end markets for AA&S include automotive and electronics. AA&S produces nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms including plate, sheet, and strip products. On December 2, 2020, the Company announced a strategic repositioning of its SRP business, which includes exiting lower-margin standard stainless sheet products, streamlining the production footprint of the AA&S segment and making certain capital investments to increase its focus on higher-margin products and its aerospace & defense end markets. See Note 19 for further discussion of this strategic realignment and its associated long-lived asset impairments, restructuring and other charges recorded in the fourth quarter of 2020. The measure of segment EBITDA excludes income taxes, depreciation and amortization, corporate expenses, net interest expense, closed operations and other expenses, charges for goodwill and asset impairments, restructuring and other charges, 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. Intersegment sales are generally recorded at full cost or market. Common services are allocated on the basis of estimated utilization.
(In millions) |  | 2021 |  | 2020 |  | 2019
Total sales: |  |  |  |  |  |
High Performance Materials & Components |  | $ | 1,248.3 |  |  | $ | 1,235.4 |  |  | $ | 2,054.2 |
Advanced Alloys & Solutions |  | 1,762.4 |  |  | 1,947.5 |  |  | 2,392.2 |
Total sales |  | 3,010.7 |  |  | 3,182.9 |  |  | 4,446.4 |
Intersegment sales: |  |  |  |  |  |
High Performance Materials & Components |  | 93.2 |  |  | 70.8 |  |  | 75.7 |
Advanced Alloys & Solutions |  | 117.7 |  |  | 130.0 |  |  | 248.2 |
Total intersegment sales |  | 210.9 |  |  | 200.8 |  |  | 323.9 |
Sales to external customers: |  |  |  |  |  |
High Performance Materials & Components |  | 1,155.1 |  |  | 1,164.6 |  |  | 1,978.5 |
Advanced Alloys & Solutions |  | 1,644.7 |  |  | 1,817.5 |  |  | 2,144.0 |
Total sales to external customers |  | $ | 2,799.8 |  |  | $ | 2,982.1 |  |  | $ | 4,122.5 |
Total international sales were $1,264.9 million in 2021, $1,173.0 million in 2020, and $1,667.9 million in 2019. Of these amounts, sales by operations in the United States to customers in other countries were $846.3 million in 2021, $812.3 million in 2020, and $1,262.6 million in 2019.
(In millions) |  | 2021 |  | 2020* |  | 2019*
EBITDA: |  |  |  |  |  |
High Performance Materials & Components |  | $ | 159.9 |  |  | $ | 129.6 |  |  | $ | 356.2 |
Advanced Alloys & Solutions |  | 191.7 |  |  | 115.0 |  |  | 172.6 |
Total segment EBITDA |  | 351.6 |  |  | 244.6 |  |  | 528.8 |
Corporate expenses |  | (55.9) |  |  | (40.9) |  |  | (65.3) |
Closed operations and other expenses |  | (4.8) |  |  | (7.4) |  |  | (24.0) |
Total ATI Adjusted EBITDA |  | 290.9 |  |  | 196.3 |  |  | 439.5 |
Depreciation & amortization |  | (143.9) |  |  | (143.3) |  |  | (151.1) |
Interest expense, net |  | (96.9) |  |  | (94.4) |  |  | (99.0) |
Restructuring and other credits (charges) (See Note 19) |  | 10.5 |  |  | (1,132.1) |  |  | (4.5) |
Strike related costs |  | (63.2) |  |  | — |  |  | — |
Retirement benefit settlement gain (See Note 14) |  | 64.9 |  |  | — |  |  | — |
Impairment of goodwill (See Note 5) |  | — |  |  | (287.0) |  |  | — |
Joint venture restructuring and impairment charge (See Note 7) |  | — |  |  | (2.4) |  |  | (11.4) |
Debt extinguishment charge (See Note 10) |  | (65.5) |  |  | (21.5) |  |  | (21.6) |
Gain on asset sales and sale of business, net |  | 13.8 |  |  | 2.5 |  |  | 84.6 |
Income (loss) before income taxes |  | $ | 10.6 |  |  | $ | (1,481.9) |  |  | $ | 236.5 |
*Years ended December 31, 2020 and 2019 reflect the change in inventory accounting method, as described in Note 1 of the Notes to the Consolidated Financial Statements. There were no adjustments to 2020 amounts as a result of this change. Corporate expenses are primarily classified as selling and administrative expenses in the consolidated statement of operations, and consist of salaries and benefits, incentive compensation, facility leases and other costs of ATI’s corporate functions. Closed operations and other expenses are primarily presented in selling and administrative expenses in the consolidated statements of operations. These items included costs at closed facilities, including legal matters, environmental, real estate and other facility costs, and changes in foreign currency remeasurement impacts primarily related to ATI’s European Treasury Center operation. Closed operations and other expenses were lower in 2021 and 2020 compared to 2019, reflecting lower legal and retirement benefit expense of closed operations, foreign currency impacts in 2021 and a $4.3 million gain from settlements of contract indemnity obligations in 2020. The $13.8 million net gain on asset sales in 2021 consists of a gain on the sale of the Company’s Flowform Products business. The $2.5 million net gain on asset sales in 2020 consists of a gain on the sale of certain oil and gas rights (see Note 9). The $84.6 million net gain on asset sales in 2019 consists of a $91.7 million gain on the sale of certain oil and gas rights (see Note 9) and a $6.2 million gain on the sale of the Company’s Cast Products business, partially offset by a $13.3 million loss on the sale of two non-core forging facilities, located in Portland, IN and Lebanon, KY. See Note 6 for further explanation regarding the sale of business transactions. Certain additional information regarding the Company’s business segments is presented below:
(In millions) |  | 2021 |  | 2020 |  | 2019
Depreciation and amortization: |  |  |  |  |  |
High Performance Materials & Components |  | $ | 75.0 |  |  | $ | 78.1 |  |  | $ | 84.6 |
Advanced Alloys & Solutions |  | 64.5 |  |  | 62.1 |  |  | 63.5 |
Other |  | 4.4 |  |  | 3.1 |  |  | 3.0 |
Total depreciation and amortization |  | $ | 143.9 |  |  | $ | 143.3 |  |  | $ | 151.1 |
Capital expenditures: |  |  |  |  |  |
High Performance Materials & Components |  | $ | 40.2 |  |  | $ | 83.1 |  |  | $ | 119.9 |
Advanced Alloys & Solutions |  | 110.6 |  |  | 45.9 |  |  | 47.4 |
Corporate |  | 1.8 |  |  | 7.5 |  |  | 0.9 |
Total capital expenditures |  | $ | 152.6 |  |  | $ | 136.5 |  |  | $ | 168.2 |
Identifiable assets: |  | 2021 |  | 2020* |  | 2019*
High Performance Materials & Components |  | $ | 1,624.8 |  |  | $ | 1,594.6 |  |  | $ | 2,162.8 |
Advanced Alloys & Solutions |  | 1,914.0 |  |  | 1,664.0 |  |  | 2,749.2 |
Corporate: |  |  |  |  |  |
Deferred Taxes |  | 6.3 |  |  | 5.1 |  |  | 64.5 |
Cash and cash equivalents and other |  | 740.1 |  |  | 771.2 |  |  | 658.1 |
Total assets |  | $ | 4,285.2 |  |  | $ | 4,034.9 |  |  | $ | 5,634.6 |
($ in millions) |  | 2021 |  | Percent of total |  | 2020 |  | Percent of total |  | 2019 |  | Percent of total
Total assets: |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 3,587.0 |  |  | 84 | % |  | $ | 3,356.8 |  |  | 83 | % |  | $ | 4,956.4 |  |  | 88 | %
China |  | 406.4 |  |  | 9 | % |  | 325.5 |  |  | 8 | % |  | 288.1 |  |  | 5 | %
United Kingdom |  | 153.9 |  |  | 4 | % |  | 122.4 |  |  | 3 | % |  | 141.3 |  |  | 3 | %
Other |  | 137.9 |  |  | 3 | % |  | 230.2 |  |  | 6 | % |  | 248.8 |  |  | 4 | %
Total Assets |  | $ | 4,285.2 |  |  | 100 | % |  | $ | 4,034.9 |  |  | 100 | % |  | $ | 5,634.6 |  |  | 100 | %

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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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