Supplemental Financial Statement Information - (Notes)

3 Months Ended

Mar. 30, 2025

Other Income and Expenses [Abstract]

Supplemental Financial Statement Information

Other income (expense), net for the quarters ended March 30, 2025 and March 31, 2024 was as follows:


(in millions)	Quarter ended
	March 30, 2025		March 31, 2024
Rent and royalty income	$	1.5	$	0.8
Net equity loss on joint ventures (See Note 6)	—		(0.4)
Total other income, net	$	1.5	$	0.4

Restructuring

Restructuring charges for the quarter ended March 31, 2024 were $0.2 million, primarily for the involuntary termination of several employees in ATI’s domestic operations. These amounts are presented as a restructuring charge in the consolidated statements of operations and are excluded from segment results.

Restructuring reserves for severance cost activity is as follows:


	Severance and Employee
	Benefit Costs
Balance at December 29, 2024	$	9.0
Divestitures	(0.5)
Payments	(1.7)
Balance at March 30, 2025	$	6.8

During the first quarter ended March 30, 2025, the Company de-recognized $0.5 million of restructuring reserves in connection with the sale of non-core operations in Birmingham, UK and Dusseldorf, Germany (see Note 5 for further explanation). The $6.8 million restructuring reserve balance at March 30, 2025 is recorded in other current liabilities on the consolidated balance sheet.

Supplier Financing

The Company participates in supplier financing programs with two financial institutions to offer its suppliers the option for access to payment in advance of an invoice due date. Under such programs, these financial institutions provide early payment to suppliers at their request for invoices that ATI has confirmed as valid at a pre-determined discount rate commensurate with the creditworthiness of ATI. As of March 30, 2025 and December 29, 2024, the Company had $67.9 million and $34.8 million, respectively, reported in accounts payable on the consolidated balance sheets under such programs.

Sale of Receivables Program

During the fourth quarter of 2024, the Company entered into an accounts receivables purchase agreement (Receivables Purchase Agreement) with a third-party financial institution to periodically sell certain accounts receivables at a discount. These accounts receivable sales are accounted for as a sale of assets under ASC 860, Transfers and Servicing, as the Company’s continuing involvement is limited to servicing the accounts receivable, collecting the payments for the underlying accounts receivables and remitting such collections to the financial institution. The financial institution is responsible for any credit risk associated with the sold accounts receivables. The Company receives the purchase price, equal to the accounts receivable less the discount, at the time of the sale.

The Company sold $28.8 million of its receivables under this program during the first quarter of 2025, resulting in de-recognition of the receivables from the Company’s consolidated balance sheet. The Company had no amounts collected on behalf of the financial institution under the Receivables Purchase Agreement at March 30, 2025. The losses associated with these transactions of $0.2 million are reflected in the Company’s consolidated statement of operations for the quarter ended March 30, 2025 and are excluded from segment results. The cash received on these sales of accounts receivable during the quarter ended March 30, 2025 is presented in changes in receivables within operating activities in the consolidated statement of cash flows.

Other Customer Receivable Sales

In the first quarter ended March 30, 2025 and March 31, 2024, the Company sold $72.6 million and $68.0 million, respectively, of certain customers’ accounts receivables through programs established by those customers with third-party financial institutions. These customers have extended payment terms and provide the programs to enable suppliers to receive more timely payments. The Company has no continuing involvement with the receivables sold under these programs, including no servicing requirement. The proceeds from these transactions are presented in changes in receivables within operating activities in the consolidated statement of cash flows. The losses associated with these transactions of $1.4 million and $1.6 million are reflected in the Company’s consolidated statements of operations for the quarters ended March 30, 2025 and March 31, 2024, respectively, and are excluded from segment results.