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Income Taxes | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Income Taxes | 20. Income Taxes Loss from continuing operations before income tax consisted of the following:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
United States | $ | (8,590) |  |  | $ | (65,413) |  |  | $ | (53,012) |
Foreign | (40,610) |  |  | (67,061) |  |  | 29,190 |
Loss from continuing operations before income tax | $ | (49,200) |  |  | $ | (132,474) |  |  | $ | (23,822) |
Income Tax (Expense) Benefit from Continuing Operations Income tax (expense) benefit from continuing operations consisted of the following:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Current tax (expense) benefit: |  |  |  |  |
Federal | $ | 981 |  |  | $ | 1,623 |  |  | $ | 2,815 |
Foreign | (1,468) |  |  | 3,119 |  |  | (7,511) |
State and other | (191) |  |  | (144) |  |  | (154) |
Total current | (678) |  |  | 4,598 |  |  | (4,850) |
Deferred tax (expense) benefit: |  |  |  |  |
Federal | 6,011 |  |  | 15,542 |  |  | 6,635 |
Foreign | 3,086 |  |  | 12,028 |  |  | (2,842) |
State and other | 509 |  |  | 143 |  |  | 155 |
Total deferred | 9,606 |  |  | 27,713 |  |  | 3,948 |
Income tax (expense) benefit | $ | 8,928 |  |  | $ | 32,311 |  |  | $ | (902) |
The following table reconciles the effective income tax rate on continuing operations to the U.S. federal statutory rate:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
U.S. federal statutory income tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Change in valuation allowance | (11.5) |  |  | (7.7) |  |  | (38.2) |
Adjustment to previously filed tax returns | (0.4) |  |  | 2.0 |  |  | 11.3 |
Tax credits (excluding foreign tax credit) | 4.1 |  |  | 5.4 |  |  | 17.8 |
Nondeductible compensation for executives and share-based awards | (3.4) |  |  | 0.5 |  |  | (10.5) |
Net changes in uncertain tax positions | 6.3 |  |  | (0.1) |  |  | (5.6) |
Difference in foreign statutory rates | 1.2 |  |  | 2.1 |  |  | (8.2) |
U.S. tax on foreign earnings (GILTI and Subpart F, net of FTC) | (0.4) |  |  | (0.1) |  |  | (0.9) |
Interest on tax payments/receipts | 1.1 |  |  | 0.6 |  |  | 10.1 |
Other | 0.1 |  |  | 0.7 |  |  | (0.6) |
Effective income tax rate on continuing operations | 18.1 | % |  | 24.4 | % |  | (3.8) | %
Deferred Taxes Deferred income taxes result from recording revenue and expense in different periods for financial reporting versus tax reporting. The nature of these temporary differences and the resulting net deferred tax balances follow:
| December 31,
| 2024 |  | 2023
Deferred tax assets: |  |  |
Net operating losses(a) | $ | 157,942 |  |  | $ | 116,353 |
Canadian pool of SR&ED(a) | 96,458 |  |  | 96,113 |
Property, plant and equipment basis differences | 74,408 |  |  | 123,521 |
Tax credit carryforwards(a) | 71,013 |  |  | 71,741 |
Environmental liabilities | 39,316 |  |  | 39,258 |
Deferred U.S. interest deductions(a) | 36,286 |  |  | 33,188 |
Pension, postretirement and other employee benefits | 19,534 |  |  | 25,114 |
Capitalized costs | 18,275 |  |  | 19,868 |
Deferred foreign interest deductions(a) | 7,601 |  |  | 3,290 |
Other compensation | 7,050 |  |  | 5,412 |
State net operating losses(a) | 3,454 |  |  | 3,536 |
Other deferred tax assets | 23,636 |  |  | 21,003 |
Total gross deferred tax assets | 554,973 |  |  | 558,397 |
Valuation allowance(a) | (86,082) |  |  | (78,858) |
Total deferred tax assets, net of valuation allowance | 468,891 |  |  | 479,539 |
Deferred tax liabilities: |  |  |
Property, plant and equipment basis differences | (110,577) |  |  | (115,315) |
Prepaid expenses | (4,487) |  |  | (19,253) |
Intangible assets | (2,326) |  |  | (4,377) |
Other deferred tax liabilities | (15,686) |  |  | (10,603) |
Total deferred tax liabilities | (133,076) |  |  | (149,548) |
Net deferred tax asset | $ | 335,815 |  |  | $ | 329,991 |
Net deferred tax asset as reflected in consolidated balance sheets: |  |  |
Deferred tax assets | $ | 349,500 |  |  | $ | 345,181 |
Deferred tax liabilities | (13,685) |  |  | (15,190) |
| $ | 335,815 |  |  | $ | 329,991 |
(a)Further detail of these items as of December 31, 2024 follows:
| Gross Amount |  | Tax Effected |  | Valuation Allowance |  | Expiration
Foreign R&D credit carryforwards | $ | 31,212 |  |  | $ | 31,212 |  |  | $ | (31,212) |  |  | 2025-2042
U.S. tax credit carryforwards | 44,924 |  |  | 39,801 |  |  | (19,270) |  |  | 2025-2033
State net operating losses | 74,124 |  |  | 3,454 |  |  | (1,792) |  |  | 2025-2044
Canada non-capital losses | 626,536 |  |  | 141,987 |  |  | (1,739) |  |  | 2027-2043
Other foreign net operating losses | 14,828 |  |  | 3,827 |  |  | (1,998) |  |  | 2040-None
Canada pool of SR&ED | 417,988 |  |  | 96,458 |  |  | — |  |  | None
U.S. interest limitation carryforward | 164,938 |  |  | 36,286 |  |  | (22,470) |  |  | None
U.S. federal net operating losses | 57,750 |  |  | 12,128 |  |  | — |  |  | None
Foreign interest limitation carryforward | 30,479 |  |  | 7,601 |  |  | (7,601) |  |  | None
At both December 31, 2024 and 2023, the Company’s net DTA included $15 million of disallowed U.S. interest deductions that the Company does not believe will be realized. In strict compliance with the AICPA’s Technical Questions and Answers 3300.01-02, which asserts that certain material evidence regarding the realizability of disallowed U.S. interest deductions should be ignored when assessing the need for a valuation allowance, the Company has not recognized a valuation allowance on this portion of the DTA generated from disallowed interest. The Company’s financial statements reflect the above net DTA under the assumption that it will generate sufficient taxable income in the applicable tax jurisdictions to realize the benefit of the net DTA. If the Company is unable to generate sufficient taxable income, it may be required to record a valuation allowance against its DTAs. Guidance requires certain evidence be given heavy consideration, including whether the Company has incurred cumulative income or losses in recent years. If the Company incurs adjusted losses in certain jurisdictions over a period, generally three years, it could be required to derecognize a material balance of its DTAs. The vast majority of the Company’s DTAs are in Canada, with $334 million and $333 million of net DTAs recognized on the consolidated balance sheets as of December 31, 2024 and 2023, respectively. Unrecognized Tax Benefits The Company recognizes the impact of a tax position if it is more likely than not to prevail, based on technical merit, in the case of an audit. As of December 31, 2024, several positions resulted in unrecognized tax benefits that, if recognized, would affect income tax expense. A reconciliation of beginning and ending unrecognized tax benefits balances follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Balance at beginning of period | $ | 13,580 |  |  | $ | 11,015 |  |  | $ | 12,073 |
Decreases related to prior year tax positions | (3,035) |  |  | (1,612) |  |  | (255) |
Increases related to prior year tax positions | 905 |  |  | 2,804 |  |  | 440 |
Decreases related to current year tax positions | — |  |  | — |  |  | (2,386) |
Increases related to current year tax positions | 957 |  |  | 1,373 |  |  | 1,143 |
Decreases due to statutory expirations | (1,963) |  |  | — |  |  | — |
Balance at end of period | $ | 10,444 |  |  | $ | 13,580 |  |  | $ | 11,015 |
For the years ended December 31, 2024 and 2023, all unrecognized tax benefits would impact the effective tax rate if recognized. For the year ended December 31, 2022, $13 million of the Company’s unrecognized tax benefits would impact the effective tax rate if recognized as a result of a $2 million reduction in unrecognized tax benefits that would impact only the timing of tax deductions and would not impact the tax rate. Total interest and penalties recorded in unrecognized tax benefits were $1 million for each of the years presented. As of December 31, 2024, it is reasonably possible that the Company’s unrecognized tax position will change within a range of a decrease of $3 million and an increase of $3 million due to conclusions of tax audits or the expiration of statute of limitations. Tax Statutes In the normal course of business, the Company is regularly audited by tax authorities and is currently under audit in the U.S. and Canada. The following table provides the tax years that remain open to examination by significant taxing jurisdictions:
| Open Tax Years
U.S. | 2020-2024
France | 2021-2024
Canada | 2020-2024
Other Tax Items Several provisions passed in 2017 as part of the Tax Cuts and Jobs Act went into effect in 2022. Certain of these provisions negatively impact the Company’s U.S. cash taxes in present and future years. The most impactful of these provisions is the further limitation of U.S. interest deductibility under Internal Revenue Code §163(j). Under this section, companies may only deduct U.S. interest expenses up to a portion of ATI. Beginning in 2022, ATI was reduced from a tax EBITDA measurement to tax EBIT, which resulted in a significant decrease in U.S. interest deductibility. Additional provisions that impact the Company’s U.S. taxes include the requirement to capitalize and amortize research expenditures and the phase-out of immediate expensing of U.S. capital asset additions.

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