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Leases (Notes) | 12 Months Ended
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Dec. 31, 2021
Leases [Abstract] |
Leases | LeasesThe Company has entered into finance lease contracts with lenders for progress payments on machinery and equipment that is being constructed at the request and specification of the Company. As of December 31, 2021, the lenders had made $22.0 million of progress payments on behalf of the Company, and $19.4 million of progress payments are scheduled to be paid. Upon payment of the final progress payments by the lenders, finance leases will commence, and $41.4 million, discounted using the applicable discount rates at lease inceptions, of ROU assets and lease liabilities will be recognized by the Company. Progress payments made on behalf of the Company in 2021 include $16.2 million received as proceeds on the sale of ongoing construction in progress projects that were converted to leases, which is presented as an investing activities source of cash on the consolidated statement of cash flows for the year ended December 31, 2021. The following represents the components of lease cost and other information for both operating and financing leases for the years ending December 31, 2021, 2020 and 2019:
($ in millions) |  | Year ended
|  | December 31, 2021 | December 31, 2020 | December 31, 2019
Lease Cost |  |  |  |
Finance Lease Cost: |  |  |  |
Amortization of right of use asset |  | $ | 7.1 |  | $ | 3.5 |  | $ | 1.7 |
Interest on lease liabilities |  | 3.1 |  | 1.0 |  | 0.5 |
Operating lease cost |  | 22.7 |  | 20.8 |  | 20.5 |
Short-term lease cost |  | 1.6 |  | 1.9 |  | 3.1 |
Variable lease cost |  | 0.9 |  | 0.9 |  | 0.8 |
Sublease income |  | (0.3) |  | (0.1) |  | — |
Total lease cost |  | $ | 35.1 |  | $ | 28.0 |  | $ | 26.6 |
Other information |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from finance leases |  | $ | 3.0 |  | $ | 1.0 |  | $ | 0.5 |
Operating cash flows from operating leases |  | $ | 20.0 |  | $ | 21.7 |  | $ | 20.8 |
Financing cash flows from finance leases |  | $ | 14.3 |  | $ | 6.2 |  | $ | 2.4 |
Right of use assets obtained in exchange for new finance lease liabilities |  | $ | 58.9 |  | $ | 42.3 |  | $ | 14.1 |
Right of use assets obtained in exchange for new operating lease liabilities (a) |  | $ | 4.8 |  | $ | 12.4 |  | $ | 35.9 |
Weighted average remaining lease term - finance leases |  | 5 years | 4 years | 4 years
Weighted average remaining lease term - operating leases |  | 5 years | 6 years | 6 years
Weighted average discount rate - finance leases |  | 5.2 | % | 6.2 | % | 5.3 | %
Weighted average discount rate - operating leases |  | 6.5 | % | 6.9 | % | 7.0 | %
(a) Several of the Company’s real property lease contracts include options to extend the lease term. The Company reassesses the likelihood of exercising renewal clauses on at least an annual basis. For the year ended December 31, 2019, ATI recorded $10.2 million of additional ROU assets and lease liabilities for likely renewals at certain leased locations. The following table reconciles future minimum undiscounted rental commitments for operating leases to the operating lease liabilities recorded on the consolidated balance sheet as of December 31, 2021 (in millions):
|  | December 31, 2021
2022 |  | $ | 17.2 |
2023 |  | 13.1 |
2024 |  | 9.8 |
2025 |  | 7.9 |
2026 |  | 5.6 |
2027 and thereafter |  | 12.4 |
Total undiscounted lease payments |  | $ | 66.0 |
Present value adjustment |  | (11.6) |
Operating lease liabilities |  | $ | 54.4 |
The following table reconciles future minimum undiscounted rental commitments for finance leases to the finance lease liabilities recorded on the consolidated balance sheet as of December 31, 2021 (in millions):
|  | December 31, 2021
2022 |  | $ | 23.4 |
2023 |  | 22.5 |
2024 |  | 18.9 |
2025 |  | 14.4 |
2026 |  | 7.7 |
2027 and thereafter |  | 8.5 |
Total undiscounted lease payments |  | $ | 95.4 |
Present value adjustment |  | (10.8) |
Finance lease liabilities |  | $ | 84.6 |
Leases | LeasesThe Company has entered into finance lease contracts with lenders for progress payments on machinery and equipment that is being constructed at the request and specification of the Company. As of December 31, 2021, the lenders had made $22.0 million of progress payments on behalf of the Company, and $19.4 million of progress payments are scheduled to be paid. Upon payment of the final progress payments by the lenders, finance leases will commence, and $41.4 million, discounted using the applicable discount rates at lease inceptions, of ROU assets and lease liabilities will be recognized by the Company. Progress payments made on behalf of the Company in 2021 include $16.2 million received as proceeds on the sale of ongoing construction in progress projects that were converted to leases, which is presented as an investing activities source of cash on the consolidated statement of cash flows for the year ended December 31, 2021. The following represents the components of lease cost and other information for both operating and financing leases for the years ending December 31, 2021, 2020 and 2019:
($ in millions) |  | Year ended
|  | December 31, 2021 | December 31, 2020 | December 31, 2019
Lease Cost |  |  |  |
Finance Lease Cost: |  |  |  |
Amortization of right of use asset |  | $ | 7.1 |  | $ | 3.5 |  | $ | 1.7 |
Interest on lease liabilities |  | 3.1 |  | 1.0 |  | 0.5 |
Operating lease cost |  | 22.7 |  | 20.8 |  | 20.5 |
Short-term lease cost |  | 1.6 |  | 1.9 |  | 3.1 |
Variable lease cost |  | 0.9 |  | 0.9 |  | 0.8 |
Sublease income |  | (0.3) |  | (0.1) |  | — |
Total lease cost |  | $ | 35.1 |  | $ | 28.0 |  | $ | 26.6 |
Other information |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |  |
Operating cash flows from finance leases |  | $ | 3.0 |  | $ | 1.0 |  | $ | 0.5 |
Operating cash flows from operating leases |  | $ | 20.0 |  | $ | 21.7 |  | $ | 20.8 |
Financing cash flows from finance leases |  | $ | 14.3 |  | $ | 6.2 |  | $ | 2.4 |
Right of use assets obtained in exchange for new finance lease liabilities |  | $ | 58.9 |  | $ | 42.3 |  | $ | 14.1 |
Right of use assets obtained in exchange for new operating lease liabilities (a) |  | $ | 4.8 |  | $ | 12.4 |  | $ | 35.9 |
Weighted average remaining lease term - finance leases |  | 5 years | 4 years | 4 years
Weighted average remaining lease term - operating leases |  | 5 years | 6 years | 6 years
Weighted average discount rate - finance leases |  | 5.2 | % | 6.2 | % | 5.3 | %
Weighted average discount rate - operating leases |  | 6.5 | % | 6.9 | % | 7.0 | %
(a) Several of the Company’s real property lease contracts include options to extend the lease term. The Company reassesses the likelihood of exercising renewal clauses on at least an annual basis. For the year ended December 31, 2019, ATI recorded $10.2 million of additional ROU assets and lease liabilities for likely renewals at certain leased locations. The following table reconciles future minimum undiscounted rental commitments for operating leases to the operating lease liabilities recorded on the consolidated balance sheet as of December 31, 2021 (in millions):
|  | December 31, 2021
2022 |  | $ | 17.2 |
2023 |  | 13.1 |
2024 |  | 9.8 |
2025 |  | 7.9 |
2026 |  | 5.6 |
2027 and thereafter |  | 12.4 |
Total undiscounted lease payments |  | $ | 66.0 |
Present value adjustment |  | (11.6) |
Operating lease liabilities |  | $ | 54.4 |
The following table reconciles future minimum undiscounted rental commitments for finance leases to the finance lease liabilities recorded on the consolidated balance sheet as of December 31, 2021 (in millions):
|  | December 31, 2021
2022 |  | $ | 23.4 |
2023 |  | 22.5 |
2024 |  | 18.9 |
2025 |  | 14.4 |
2026 |  | 7.7 |
2027 and thereafter |  | 8.5 |
Total undiscounted lease payments |  | $ | 95.4 |
Present value adjustment |  | (10.8) |
Finance lease liabilities |  | $ | 84.6 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
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