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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 8/02/23 Ati Inc. 10-Q 6/30/23 78:12M Workiva Inc Wde… FA01/FA |
Document/Exhibit Description Pages Size 1: 10-Q Quarterly Report HTML 2.17M 2: EX-10.1 Material Contract HTML 1.63M 3: EX-31.1 Certification -- §302 - SOA'02 HTML 25K 4: EX-31.2 Certification -- §302 - SOA'02 HTML 25K 5: EX-32.1 Certification -- §906 - SOA'02 HTML 24K 11: R1 Cover HTML 73K 12: R2 Consolidated Balance Sheets HTML 145K 13: R3 Consolidated Balance Sheets (Parenthetical) HTML 40K 14: R4 Consolidated Statements of Income HTML 103K 15: R5 Consolidated Statements of Comprehensive Income HTML 92K (Loss) 16: R6 Consolidated Statements of Cash Flows HTML 98K 17: R7 Statements of Changes in Consolidated Equity HTML 77K 18: R8 Accounting Policies HTML 26K 19: R9 Revenue from Contracts with Customers HTML 237K 20: R10 Inventories HTML 31K 21: R11 Property Plant And Equipment HTML 32K 22: R12 Joint Ventures HTML 31K 23: R13 Supplemental Financial Statement Information - HTML 43K (Notes) 24: R14 Debt HTML 60K 25: R15 Derivative Financial Instruments and Hedging HTML 86K 26: R16 Fair Value Of Financial Instruments HTML 53K 27: R17 Retirement Benefits HTML 65K 28: R18 Income Taxes HTML 26K 29: R19 Business Segments HTML 89K 30: R20 Per Share Information HTML 53K 31: R21 Accumulated Other Comprehensive Income (Loss) HTML 215K 32: R22 Commitments and Contingencies HTML 29K 33: R23 Accounting Policies (Policies) HTML 49K 34: R24 Inventory (Policies) HTML 25K 35: R25 Derivative Instruments and Hedging Activities HTML 31K (Policies) 36: R26 Compensation Related Costs, Retirement Benefits HTML 25K (Policies) 37: R27 Commitment and Contingencies (Policies) HTML 24K 38: R28 Revenue from Contracts with Customers (Tables) HTML 237K 39: R29 Inventories (Tables) HTML 32K 40: R30 Property, Plant and Equipment (Tables) HTML 31K 41: R31 Supplemental Financial Statement Information - HTML 44K (Tables) 42: R32 Debt (Tables) HTML 50K 43: R33 Derivative Financial Instruments and Hedging HTML 81K (Tables) 44: R34 Fair Value of Financial Instruments (Tables) HTML 48K 45: R35 Retirement Benefits (Tables) HTML 61K 46: R36 Business Segments (Tables) HTML 83K 47: R37 Per Share Information (Tables) HTML 51K 48: R38 Accumulated Other Comprehensive Income (Loss) HTML 216K (Tables) 49: R39 Accounting Policies (Accounting Pronouncements) HTML 90K (Details) 50: R40 Revenue from Contracts with Customers - Narrative HTML 84K (Details) 51: R41 Revenue from Contracts with Customers - HTML 158K Disaggregation of Revenue (Details) 52: R42 Revenue from Contracts with Customers - Accounts HTML 29K Receivable Reserve for Doubtful Accounts (Details) 53: R43 Revenue from Contracts with Customers - Contract HTML 50K Assets and Liabilities (Details) 54: R44 Inventories (Details) HTML 34K 55: R45 Property, Plant and Equipment (Details) HTML 40K 56: R46 Joint Ventures (Details) HTML 89K 57: R47 Supplemental Financial Statement Information - HTML 37K Schedule of Other Income, Net (Details) 58: R48 Supplemental Financial Statement Information - HTML 41K Narrative (Details) 59: R49 Supplemental Financial Statement Information - HTML 33K Severance and Employee Benefit Costs Rollforward (Details) 60: R50 Debt Schedule of Debt (Details) HTML 73K 61: R51 Debt - Revolving Credit Facility Narrative HTML 96K (Details) 62: R52 Debt - Convertible Notes Narrative (Details) HTML 96K 63: R53 Derivative Financial Instruments and Hedging HTML 75K (Details) 64: R54 Derivative Financial Instruments and Hedging HTML 76K (Details2) 65: R55 Fair Value of Financial Instruments (Details) HTML 58K 66: R56 Retirement Benefits (Details1) HTML 54K 67: R57 Income Taxes - Narrative (Details) HTML 25K 68: R58 Business Segments (Details) HTML 70K 69: R59 Business Segments - Additional Information HTML 74K (Details) 70: R60 Per Share Information (Details) HTML 72K 71: R61 Accumulated Other Comprehensive Income (Loss) HTML 94K (Details) 72: R62 Accumulated Other Comprehensive Income (Loss) HTML 89K (Details 2) 73: R63 Commitments and Contingencies (Details) HTML 42K 76: XML IDEA XML File -- Filing Summary XML 140K 74: XML XBRL Instance -- ati-20230630_htm XML 3.55M 75: EXCEL IDEA Workbook of Financial Report Info XLSX 164K 7: EX-101.CAL XBRL Calculations -- ati-20230630_cal XML 201K 8: EX-101.DEF XBRL Definitions -- ati-20230630_def XML 782K 9: EX-101.LAB XBRL Labels -- ati-20230630_lab XML 1.67M 10: EX-101.PRE XBRL Presentations -- ati-20230630_pre XML 1.12M 6: EX-101.SCH XBRL Schema -- ati-20230630 XSD 169K 77: JSON XBRL Instance as JSON Data -- MetaLinks 517± 752K 78: ZIP XBRL Zipped Folder -- 0001628280-23-026678-xbrl Zip 624K
ati-20230630 |
i ☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i ☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
i Delaware | i 25-1792394 | ||||||||||
(State or other jurisdiction of | (I.R.S. Employer | ||||||||||
incorporation or organization) | Identification No.) | ||||||||||
i 2021 McKinney Avenue | |||||||||||
i Dallas, | i Texas | i 75201 | |||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
i Common stock, par value $0.10 | i ATI | i New
York Stock Exchange |
i Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | i ☐ | ||||||||
Emerging growth company | i ☐ |
June
30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
Current Assets: | |||||||||||
Cash and cash equivalents | $ | i 267.1 | $ | i 584.0 | |||||||
Accounts receivable, net | i 710.1 | i 579.2 | |||||||||
Short-term contract assets | i 51.8 | i 64.1 | |||||||||
Inventories, net | i 1,380.4 | i 1,195.7 | |||||||||
Prepaid expenses and other current assets | i 49.2 | i 53.4 | |||||||||
Total Current Assets | i 2,458.6 | i 2,476.4 | |||||||||
Property, plant and equipment, net | i 1,568.1 | i 1,549.1 | |||||||||
Goodwill | i 227.2 | i 227.2 | |||||||||
Other assets | i 180.8 | i 192.9 | |||||||||
Total Assets | $ | i 4,434.7 | $ | i 4,445.6 | |||||||
LIABILITIES AND EQUITY | |||||||||||
Current Liabilities: | |||||||||||
Accounts payable | $ | i 467.7 | $ | i 553.3 | |||||||
Short-term contract liabilities | i 137.8 | i 149.1 | |||||||||
Short-term debt and current portion of long-term debt | i 73.9 | i 41.7 | |||||||||
Other current liabilities | i 218.1 | i 219.8 | |||||||||
Total Current Liabilities | i 897.5 | i 963.9 | |||||||||
Long-term debt | i 1,699.9 | i 1,706.3 | |||||||||
Accrued postretirement benefits | i 176.7 | i 184.9 | |||||||||
Pension liabilities | i 172.0 | i 225.6 | |||||||||
Other long-term liabilities | i 179.4 | i 207.7 | |||||||||
Total Liabilities | i 3,125.5 | i 3,288.4 | |||||||||
Equity: | |||||||||||
ATI Stockholders’ Equity: | |||||||||||
Preferred stock, par value $ i i 0.10 / :
authorized- i i 50,000,000 / shares; issued- i i none / | i — | i — | |||||||||
Common
stock, par value $ i i 0.10 / : authorized- i i 500,000,000 /
shares; issued- i 132,268,866 shares at June 30, 2023 and i 131,392,262 shares at December 31, 2022; outstanding- i 128,584,727
shares at June 30, 2023 and i 128,273,042 shares at December 31, 2022 | i 13.2 | i 13.1 | |||||||||
Additional paid-in capital | i 1,682.0 | i 1,668.1 | |||||||||
Retained earnings | i 323.0 | i 176.9 | |||||||||
Treasury stock: i 3,684,139
shares at June 30, 2023 and i 3,119,220 shares at December 31, 2022 | ( i 107.9) | ( i 87.0) | |||||||||
Accumulated other comprehensive loss, net of tax | ( i 716.3) | ( i 725.2) | |||||||||
Total ATI stockholders’ equity | i 1,194.0 | i 1,045.9 | |||||||||
Noncontrolling interests | i 115.2 | i 111.3 | |||||||||
Total Equity | i 1,309.2 | i 1,157.2 | |||||||||
Total Liabilities and Equity | $ | i 4,434.7 | $ | i 4,445.6 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Sales | $ | i 1,046.0 | $ | i 959.5 | $ | i 2,084.1 | $ | i 1,793.6 | |||||||||||||||
Cost of sales | i 836.9 | i 784.2 | i 1,681.8 | i 1,448.9 | |||||||||||||||||||
Gross profit | i 209.1 | i 175.3 | i 402.3 | i 344.7 | |||||||||||||||||||
Selling and administrative expenses | i 85.4 | i 72.3 | i 166.0 | i 147.5 | |||||||||||||||||||
Restructuring charges (credits) | i 2.7 | ( i 1.3) | i 2.7 | ( i 2.4) | |||||||||||||||||||
Loss on asset sales and sales of businesses, net | i 0.7 | i 115.9 | i 0.7 | i 134.2 | |||||||||||||||||||
Operating income (loss) | i 120.3 | ( i 11.6) | i 232.9 | i 65.4 | |||||||||||||||||||
Nonoperating retirement benefit expense | ( i 16.9) | ( i 6.6) | ( i 33.7) | ( i 12.4) | |||||||||||||||||||
Interest expense, net | ( i 21.3) | ( i 23.4) | ( i 41.2) | ( i 47.0) | |||||||||||||||||||
Other income, net | i 0.7 | i 10.7 | i 1.3 | i 3.2 | |||||||||||||||||||
Income (loss) before income taxes | i 82.8 | ( i 30.9) | i 159.3 | i 9.2 | |||||||||||||||||||
Income tax provision | i 3.7 | i 3.4 | i 8.0 | i 8.3 | |||||||||||||||||||
Net income (loss) | i 79.1 | ( i 34.3) | i 151.3 | i 0.9 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interests | i 3.1 | i 3.7 | i 5.2 | i 8.0 | |||||||||||||||||||
Net income (loss) attributable to ATI | $ | i 76.0 | $ | ( i 38.0) | $ | i 146.1 | $ | ( i 7.1) | |||||||||||||||
Basic net income (loss) attributable to ATI per common share | $ | i 0.59 | $ | ( i 0.31) | $ | i 1.14 | $ | ( i 0.06) | |||||||||||||||
Diluted net income (loss) attributable to ATI per common share | $ | i 0.52 | $ | ( i 0.31) | $ | i 1.01 | $ | ( i 0.06) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income (loss) | $ | i 79.1 | $ | ( i 34.3) | $ | i 151.3 | $ | i 0.9 | |||||||||||||||
Currency translation adjustment | |||||||||||||||||||||||
Unrealized net change arising during the period | ( i 8.1) | ( i 22.4) | ( i 4.8) | ( i 29.2) | |||||||||||||||||||
Reclassification adjustment included in net income (loss) | i — | i 20.0 | i — | i 20.0 | |||||||||||||||||||
Total | ( i 8.1) | ( i 2.4) | ( i 4.8) | ( i 9.2) | |||||||||||||||||||
Derivatives | |||||||||||||||||||||||
Net derivatives gain (loss) on hedge transactions | ( i 2.4) | i 16.1 | ( i 17.4) | i 40.7 | |||||||||||||||||||
Reclassification to net income (loss) of net realized loss (gain) | i 3.8 | ( i 20.4) | ( i 1.7) | ( i 25.4) | |||||||||||||||||||
Income taxes on derivative transactions | i — | i — | i — | i — | |||||||||||||||||||
Total | i 1.4 | ( i 4.3) | ( i 19.1) | i 15.3 | |||||||||||||||||||
Postretirement benefit plans | |||||||||||||||||||||||
Actuarial loss | |||||||||||||||||||||||
Amortization of net actuarial loss | i 15.9 | i 19.2 | i 31.8 | i 38.5 | |||||||||||||||||||
Prior service cost | |||||||||||||||||||||||
Amortization to net income (loss) of net prior service credits | ( i 0.2) | ( i 0.1) | ( i 0.3) | ( i 0.3) | |||||||||||||||||||
Settlement loss included in net income (loss) | i — | i 29.5 | i — | i 29.5 | |||||||||||||||||||
Income taxes on postretirement benefit plans | i — | i — | i — | i — | |||||||||||||||||||
Total | i 15.7 | i 48.6 | i 31.5 | i 67.7 | |||||||||||||||||||
Other comprehensive income, net of tax | i 9.0 | i 41.9 | i 7.6 | i 73.8 | |||||||||||||||||||
Comprehensive income | i 88.1 | i 7.6 | i 158.9 | i 74.7 | |||||||||||||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interests | ( i 2.6) | ( i 6.0) | i 3.9 | ( i 1.0) | |||||||||||||||||||
Comprehensive income attributable to ATI | $ | i 90.7 | $ | i 13.6 | $ | i 155.0 | $ | i 75.7 | |||||||||||||||
Six months ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Operating Activities: | |||||||||||
Net income | $ | i 151.3 | $ | i 0.9 | |||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||
Depreciation and amortization | i 71.0 | i 71.5 | |||||||||
Share-based compensation | i 14.1 | i 14.5 | |||||||||
Deferred taxes | i 0.6 | ( i 0.2) | |||||||||
Net gains from disposal of property, plant and equipment | ( i 0.3) | ( i 1.0) | |||||||||
Loss on sales of businesses | i 0.6 | i 141.0 | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Inventories | ( i 184.7) | ( i 265.9) | |||||||||
Accounts receivable | ( i 131.2) | ( i 173.3) | |||||||||
Accounts payable | ( i 66.3) | i 62.6 | |||||||||
Retirement benefits | ( i 29.7) | i 1.0 | |||||||||
Accrued liabilities and other | ( i 42.5) | ( i 73.5) | |||||||||
Cash used in operating activities | ( i 217.1) | ( i 222.4) | |||||||||
Investing Activities: | |||||||||||
Purchases of property, plant and equipment | ( i 103.3) | ( i 54.8) | |||||||||
Proceeds from disposal of property, plant and equipment | i 1.6 | i 1.0 | |||||||||
Transaction costs from sales of businesses, net of proceeds | ( i 0.3) | ( i 2.8) | |||||||||
Other | i 1.2 | i 0.9 | |||||||||
Cash used in investing activities | ( i 100.8) | ( i 55.7) | |||||||||
Financing Activities: | |||||||||||
Payments on long-term debt and finance leases | ( i 11.3) | ( i 11.6) | |||||||||
Net borrowings (payments) under credit facilities | i 33.2 | ( i 13.4) | |||||||||
Purchase of treasury stock | ( i 10.1) | ( i 89.9) | |||||||||
Sale of noncontrolling interests | i — | i 0.9 | |||||||||
Dividends paid to noncontrolling interests | i — | ( i 16.0) | |||||||||
Shares repurchased for income tax withholding on share-based compensation and other | ( i 10.8) | ( i 5.6) | |||||||||
Cash provided by (used in) financing activities | i 1.0 | ( i 135.6) | |||||||||
Decrease in cash and cash equivalents | ( i 316.9) | ( i 413.7) | |||||||||
Cash and cash equivalents at beginning of period | i 584.0 | i 687.7 | |||||||||
Cash and cash equivalents at end of period | $ | i 267.1 | $ | i 274.0 |
ATI Stockholders | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | i 12.8 | $ | i 1,602.5 | $ | i 103.6 | $ | ( i 99.7) | $ | ( i 960.5) | $ | i 137.0 | $ | i 795.7 | |||||||||||||||||||||||||||
Net income (loss) | — | — | ( i 38.0) | — | — | i 3.7 | ( i 34.3) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | i 51.6 | ( i 9.7) | i 41.9 | ||||||||||||||||||||||||||||||||||
Conversion of convertible notes | i 0.3 | i 45.4 | ( i 26.7) | i 63.5 | — | — | i 82.5 | ||||||||||||||||||||||||||||||||||
Employee stock plans | i — | i 8.7 | i — | ( i 0.6) | — | — | i 8.1 | ||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | i 13.1 | $ | i 1,656.6 | $ | i 38.9 | $ | ( i 36.8) | $ | ( i 908.9) | $ | i 131.0 | $ | i 893.9 | |||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | i 13.2 | $ | i 1,675.1 | $ | i 247.0 | $ | ( i 107.8) | $ | ( i 731.0) | $ | i 117.8 | $ | i 1,214.3 | |||||||||||||||||||||||||||
Net income | — | — | i 76.0 | — | — | i 3.1 | i 79.1 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | i 14.7 | ( i 5.7) | i 9.0 | ||||||||||||||||||||||||||||||||||
Employee stock plans | i — | i 6.9 | i — | ( i 0.1) | — | — | i 6.8 | ||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | i 13.2 | $ | i 1,682.0 | $ | i 323.0 | $ | ( i 107.9) | $ | ( i 716.3) | $ | i 115.2 | $ | i 1,309.2 |
ATI Stockholders | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | i 12.7 | $ | i 1,596.7 | $ | i 72.7 | $ | ( i 4.8) | $ | ( i 991.7) | $ | i 147.1 | $ | i 832.7 | |||||||||||||||||||||||||||
Net income (loss) | — | — | ( i 7.1) | — | — | i 8.0 | i 0.9 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | i 82.8 | ( i 9.0) | i 73.8 | |||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | ( i 89.9) | — | — | ( i 89.9) | ||||||||||||||||||||||||||||||||||
Conversion of convertible notes | i 0.3 | i 45.4 | ( i 26.7) | i 63.5 | — | — | i 82.5 | ||||||||||||||||||||||||||||||||||
Dividends paid to noncontrolling interest | — | — | — | — | — | ( i 16.0) | ( i 16.0) | ||||||||||||||||||||||||||||||||||
Sales of subsidiary shares to noncontrolling interest | — | — | — | — | — | i 0.9 | i 0.9 | ||||||||||||||||||||||||||||||||||
Employee stock plans | i 0.1 | i 14.5 | i — | ( i 5.6) | — | — | i 9.0 | ||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | i 13.1 | $ | i 1,656.6 | $ | i 38.9 | $ | ( i 36.8) | $ | ( i 908.9) | $ | i 131.0 | $ | i 893.9 | |||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | i 13.1 | $ | i 1,668.1 | $ | i 176.9 | $ | ( i 87.0) | $ | ( i 725.2) | $ | i 111.3 | $ | i 1,157.2 | |||||||||||||||||||||||||||
Net income | — | — | i 146.1 | — | — | i 5.2 | i 151.3 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | i 8.9 | ( i 1.3) | i 7.6 | ||||||||||||||||||||||||||||||||||
Purchase of treasury stock | — | — | — | ( i 10.1) | — | — | ( i 10.1) | ||||||||||||||||||||||||||||||||||
Employee stock plans | i 0.1 | i 13.9 | i — | ( i 10.8) | — | — | i 3.2 | ||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | i 13.2 | $ | i 1,682.0 | $ | i 323.0 | $ | ( i 107.9) | $ | ( i 716.3) | $ | i 115.2 | $ | i 1,309.2 |
(in millions) | Second quarter ended | |||||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | |||||||||||||||||||||||||
HPMC | AA&S | Total | HPMC | AA&S | Total | |||||||||||||||||||||
Diversified Global Markets: | ||||||||||||||||||||||||||
Aerospace & Defense: | ||||||||||||||||||||||||||
Jet Engines- Commercial | $ | i 319.2 | $ | i 21.7 | $ | i 340.9 | $ | i 231.4 | $ | i 17.3 | $ | i 248.7 | ||||||||||||||
Airframes- Commercial | i 67.0 | i 97.2 | i 164.2 | i 43.9 | i 62.2 | i 106.1 | ||||||||||||||||||||
Defense | i 50.0 | i 51.7 | i 101.7 | i 40.7 | i 40.9 | i 81.6 | ||||||||||||||||||||
Total Aerospace & Defense | i 436.2 | i 170.6 | i 606.8 | i 316.0 | i 120.4 | i 436.4 | ||||||||||||||||||||
Energy: | ||||||||||||||||||||||||||
Oil & Gas | i 3.7 | i 107.6 | i 111.3 | i 8.1 | i 117.1 | i 125.2 | ||||||||||||||||||||
Specialty Energy | i 29.9 | i 38.3 | i 68.2 | i 31.5 | i 43.6 | i 75.1 | ||||||||||||||||||||
Total Energy | i 33.6 | i 145.9 | i 179.5 | i 39.6 | i 160.7 | i 200.3 | ||||||||||||||||||||
Automotive | i 6.0 | i 46.8 | i 52.8 | i 2.3 | i 73.2 | i 75.5 | ||||||||||||||||||||
Construction/Mining | i 11.0 | i 37.4 | i 48.4 | i 7.9 | i 32.0 | i 39.9 | ||||||||||||||||||||
Medical | i 24.3 | i 17.6 | i 41.9 | i 16.8 | i 22.7 | i 39.5 | ||||||||||||||||||||
Electronics | i 0.7 | i 35.3 | i 36.0 | i 0.7 | i 48.7 | i 49.4 | ||||||||||||||||||||
Food Equipment & Appliances | i — | i 20.9 | i 20.9 | i — | i 62.7 | i 62.7 | ||||||||||||||||||||
Other | i 15.3 | i 44.4 | i 59.7 | i 12.8 | i 43.0 | i 55.8 | ||||||||||||||||||||
Total | $ | i 527.1 | $ | i 518.9 | $ | i 1,046.0 | $ | i 396.1 | $ | i 563.4 | $ | i 959.5 |
(in millions) | Six months ended | |||||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | |||||||||||||||||||||||||
HPMC | AA&S | Total | HPMC | AA&S | Total | |||||||||||||||||||||
Diversified Global Markets: | ||||||||||||||||||||||||||
Aerospace & Defense: | ||||||||||||||||||||||||||
Jet Engines- Commercial | $ | i 601.7 | $ | i 50.1 | $ | i 651.8 | $ | i 410.4 | $ | i 34.9 | $ | i 445.3 | ||||||||||||||
Airframes- Commercial | i 138.0 | i 196.1 | i 334.1 | i 81.1 | i 118.7 | i 199.8 | ||||||||||||||||||||
Defense | i 91.9 | i 104.7 | i 196.6 | i 82.1 | i 76.0 | i 158.1 | ||||||||||||||||||||
Total Aerospace & Defense | i 831.6 | i 350.9 | i 1,182.5 | i 573.6 | i 229.6 | i 803.2 | ||||||||||||||||||||
Energy: | ||||||||||||||||||||||||||
Oil & Gas | i 6.1 | i 232.7 | i 238.8 | i 25.2 | i 203.1 | i 228.3 | ||||||||||||||||||||
Specialty Energy | i 54.8 | i 96.1 | i 150.9 | i 61.6 | i 70.1 | i 131.7 | ||||||||||||||||||||
Total Energy | i 60.9 | i 328.8 | i 389.7 | i 86.8 | i 273.2 | i 360.0 | ||||||||||||||||||||
Automotive | i 12.3 | i 99.9 | i 112.2 | i 5.2 | i 161.3 | i 166.5 | ||||||||||||||||||||
Construction/Mining | i 19.2 | i 69.6 | i 88.8 | i 16.3 | i 75.6 | i 91.9 | ||||||||||||||||||||
Medical | i 41.8 | i 35.1 | i 76.9 | i 30.0 | i 45.7 | i 75.7 | ||||||||||||||||||||
Electronics | i 1.2 | i 69.2 | i 70.4 | i 1.2 | i 99.8 | i 101.0 | ||||||||||||||||||||
Food Equipment & Appliances | i — | i 42.4 | i 42.4 | i — | i 96.7 | i 96.7 | ||||||||||||||||||||
Other | i 31.2 | i 90.0 | i 121.2 | i 24.6 | i 74.0 | i 98.6 | ||||||||||||||||||||
Total | $ | i 998.2 | $ | i 1,085.9 | $ | i 2,084.1 | $ | i 737.7 | $ | i 1,055.9 | $ | i 1,793.6 |
(in millions) | Second quarter ended | |||||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | |||||||||||||||||||||||||
HPMC | AA&S | Total | HPMC | AA&S | Total | |||||||||||||||||||||
Primary Geographical Market: | ||||||||||||||||||||||||||
United States | $ | i 222.0 | $ | i 346.3 | $ | i 568.3 | $ | i 179.8 | $ | i 388.8 | $ | i 568.6 | ||||||||||||||
Europe | i 207.8 | i 43.6 | i 251.4 | i 135.0 | i 48.8 | i 183.8 | ||||||||||||||||||||
Asia | i 51.0 | i 103.5 | i 154.5 | i 50.5 | i 104.4 | i 154.9 | ||||||||||||||||||||
Canada | i 16.6 | i 13.3 | i 29.9 | i 12.7 | i 11.7 | i 24.4 | ||||||||||||||||||||
South America, Middle East and other | i 29.7 | i 12.2 | i 41.9 | i 18.1 | i 9.7 | i 27.8 | ||||||||||||||||||||
Total | $ | i 527.1 | $ | i 518.9 | $ | i 1,046.0 | $ | i 396.1 | $ | i 563.4 | $ | i 959.5 |
(in millions) | Six months ended | |||||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | |||||||||||||||||||||||||
HPMC | AA&S | Total | HPMC | AA&S | Total | |||||||||||||||||||||
Primary Geographical Market: | ||||||||||||||||||||||||||
United States | $ | i 418.5 | $ | i 738.1 | $ | i 1,156.6 | $ | i 336.2 | $ | i 710.1 | $ | i 1,046.3 | ||||||||||||||
Europe | i 402.0 | i 88.0 | i 490.0 | i 256.3 | i 87.4 | i 343.7 | ||||||||||||||||||||
Asia | i 95.0 | i 213.0 | i 308.0 | i 94.7 | i 219.5 | i 314.2 | ||||||||||||||||||||
Canada | i 28.6 | i 24.5 | i 53.1 | i 23.0 | i 20.4 | i 43.4 | ||||||||||||||||||||
South America, Middle East and other | i 54.1 | i 22.3 | i 76.4 | i 27.5 | i 18.5 | i 46.0 | ||||||||||||||||||||
Total | $ | i 998.2 | $ | i 1,085.9 | $ | i 2,084.1 | $ | i 737.7 | $ | i 1,055.9 | $ | i 1,793.6 |
Second quarter ended | ||||||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | |||||||||||||||||||||||||
HPMC | AA&S | Total | HPMC | AA&S | Total | |||||||||||||||||||||
Diversified Products and Services: | ||||||||||||||||||||||||||
Nickel-based alloys and specialty alloys | i 49 | % | i 55 | % | i 52 | % | i 48 | % | i 55 | % | i 52 | % | ||||||||||||||
Precision forgings, castings and components | i 33 | % | i — | % | i 17 | % | i 35 | % | i — | % | i 15 | % | ||||||||||||||
Titanium and titanium-based alloys | i 17 | % | i 11 | % | i 14 | % | i 17 | % | i 6 | % | i 11 | % | ||||||||||||||
Precision rolled strip products | i 1 | % | i 18 | % | i 9 | % | i — | % | i 24 | % | i 14 | % | ||||||||||||||
Zirconium and related alloys | i — | % | i 16 | % | i 8 | % | i — | % | i 15 | % | i 8 | % | ||||||||||||||
Total | i 100 | % | i 100 | % | i 100 | % | i 100 | % | i 100 | % | i 100 | % |
Six months ended | ||||||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | |||||||||||||||||||||||||
HPMC | AA&S | Total | HPMC | AA&S | Total | |||||||||||||||||||||
Diversified Products and Services: | ||||||||||||||||||||||||||
Nickel-based alloys and specialty alloys | i 47 | % | i 57 | % | i 52 | % | i 48 | % | i 54 | % | i 51 | % | ||||||||||||||
Precision forgings, castings and components | i 33 | % | i — | % | i 16 | % | i 35 | % | i — | % | i 15 | % | ||||||||||||||
Titanium and titanium-based alloys | i 19 | % | i 10 | % | i 14 | % | i 17 | % | i 6 | % | i 10 | % | ||||||||||||||
Precision rolled strip products | i 1 | % | i 18 | % | i 10 | % | i — | % | i 26 | % | i 15 | % | ||||||||||||||
Zirconium and related alloys | i — | % | i 15 | % | i 8 | % | i — | % | i 14 | % | i 9 | % | ||||||||||||||
Total | i 100 | % | i 100 | % | i 100 | % | i 100 | % | i 100 | % | i 100 | % |
(in millions) | ||||||||
Accounts Receivable - Reserve for Doubtful Accounts | June 30, 2023 | June 30, 2022 | ||||||
Balance as of beginning of fiscal year | $ | i 7.7 | $ | i 3.8 | ||||
Expense to increase the reserve | i 0.2 | i 0.4 | ||||||
Write-off of uncollectible accounts | ( i 0.8) | ( i 0.3) | ||||||
Balance as of period end | $ | i 7.1 | $ | i 3.9 |
(in millions) | ||||||||
Contract Assets | ||||||||
Short-term | June 30, 2023 | June 30, 2022 | ||||||
Balance as of beginning of fiscal year | $ | i 64.1 | $ | i 53.9 | ||||
Recognized in current year | i 41.1 | i 35.3 | ||||||
Reclassified to accounts receivable | ( i 53.4) | ( i 34.9) | ||||||
Balance as of period end | $ | i 51.8 | $ | i 54.3 | ||||
(in millions) | ||||||||
Contract Liabilities | ||||||||
Short-term | June 30, 2023 | June 30, 2022 | ||||||
Balance as of beginning of fiscal year | $ | i 149.1 | $ | i 116.2 | ||||
Recognized in current year | i 58.8 | i 59.6 | ||||||
Amounts in beginning balance reclassified to revenue | ( i 69.4) | ( i 54.9) | ||||||
Current year amounts reclassified to revenue | ( i 22.9) | ( i 13.4) | ||||||
Other | ( i 0.1) | i 1.5 | ||||||
Reclassification to/from long-term and contract asset | i 22.3 | i 16.7 | ||||||
Balance as of period end | $ | i 137.8 | $ | i 125.7 | ||||
Long-term (a) | June 30, 2023 | June 30, 2022 | ||||||
Balance as of beginning of fiscal year | $ | i 66.8 | $ | i 84.4 | ||||
Recognized in current year | i 0.9 | i 7.5 | ||||||
Reclassification to/from short-term | ( i 22.3) | ( i 16.7) | ||||||
Balance as of period end | $ | i 45.4 | $ | i 75.2 |
June 30, 2023 | December 31, 2022 | ||||||||||
Raw materials and supplies | $ | i 259.2 | $ | i 213.6 | |||||||
Work-in-process | i 1,070.0 | i 941.1 | |||||||||
Finished goods | i 139.8 | i 111.9 | |||||||||
i 1,469.0 | i 1,266.6 | ||||||||||
Inventory valuation reserves | ( i 88.6) | ( i 70.9) | |||||||||
Total inventories, net | $ | i 1,380.4 | $ | i 1,195.7 |
June 30, 2023 | December 31, 2022 | ||||||||||
Land | $ | i 32.3 | $ | i 31.5 | |||||||
Buildings and leasehold improvements | i 651.3 | i 601.6 | |||||||||
Equipment | i 2,905.8 | i 2,895.5 | |||||||||
i 3,589.4 | i 3,528.6 | ||||||||||
Accumulated depreciation and amortization | ( i 2,021.3) | ( i 1,979.5) | |||||||||
Total property, plant and equipment, net | $ | i 1,568.1 | $ | i 1,549.1 |
(in millions) | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||
Rent and royalty income | $ | i 0.7 | $ | i 0.5 | $ | i 1.3 | $ | i 1.2 | ||||||||||||
Gains from disposal of property, plant and equipment, net | i — | i 0.2 | i 0.3 | i 0.2 | ||||||||||||||||
Net equity income (loss) on joint ventures (See Note 5) | i — | i 10.0 | ( i 0.3) | i 10.4 | ||||||||||||||||
Litigation reserve | i — | i — | i — | ( i 8.6) | ||||||||||||||||
Total other income, net | $ | i 0.7 | $ | i 10.7 | $ | i 1.3 | $ | i 3.2 |
Severance and Employee | |||||
Benefit Costs | |||||
Balance at December 31, 2022 | $ | i 9.8 | |||
Additions | i 2.7 | ||||
Payments | ( i 0.8) | ||||
Balance at June 30, 2023 | $ | i 11.7 |
June 30, 2023 | December 31, 2022 | ||||||||||
i i ATI
Inc. / i i 5.875 / %
Notes due 2027 | i 350.0 | i 350.0 | |||||||||
i i ATI
Inc. / i i 5.125 / %
Notes due 2031 | i 350.0 | i 350.0 | |||||||||
i i ATI
Inc. / i i 4.875 / %
Notes due 2029 | i 325.0 | i 325.0 | |||||||||
i i ATI
Inc. / i 3.5% Convertible Senior Notes due 2025 | i 291.4 | i 291.4 | |||||||||
i i Allegheny
Ludlum / i i 6.95 / %
Debentures due 2025 (a) | i 150.0 | i 150.0 | |||||||||
ABL Term Loan | i 200.0 | i 200.0 | |||||||||
U.S. revolving credit facility | i 50.0 | i — | |||||||||
Foreign credit facilities | i 2.0 | i 19.4 | |||||||||
Finance leases and other | i 70.9 | i 79.4 | |||||||||
Debt issuance costs | ( i 15.5) | ( i 17.2) | |||||||||
Debt | i 1,773.8 | i 1,748.0 | |||||||||
Short-term debt and current portion of long-term debt | i 73.9 | i 41.7 | |||||||||
Long-term debt | $ | i 1,699.9 | $ | i 1,706.3 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||
(in millions) | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Contractual coupon rate | $ | i 2.6 | $ | i 2.6 | $ | i 5.1 | $ | i 5.1 | |||||||||
Amortization of debt issuance costs | i 0.4 | i 0.5 | i 0.9 | i 0.9 | |||||||||||||
Total interest expense | $ | i 3.0 | $ | i 3.1 | $ | i 6.0 | $ | i 6.0 |
(In
millions) Asset derivatives | Balance sheet location | June 30, 2023 | December 31, 2022 | |||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Interest rate swap | Prepaid expenses and other current assets | $ | i 1.5 | $ | i 1.4 | |||||||||||||||
Foreign exchange contracts | Prepaid expenses and other current assets | i 0.2 | i — | |||||||||||||||||
Nickel and other raw material contracts | Prepaid expenses and other current assets | i 1.7 | i 12.5 | |||||||||||||||||
Natural gas contracts | Prepaid expenses and other current assets | i 0.2 | i 2.4 | |||||||||||||||||
Interest rate swap | Other assets | i — | i 0.5 | |||||||||||||||||
Nickel and other raw material contracts | Other assets | i — | i 0.5 | |||||||||||||||||
Natural gas contracts | Other assets | i 0.3 | i 0.7 | |||||||||||||||||
Total derivatives designated as hedging instruments | $ | i 3.9 | $ | i 18.0 | ||||||||||||||||
Liability derivatives | Balance sheet location | |||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||
Natural gas contracts | Other current liabilities | i 3.6 | i 2.0 | |||||||||||||||||
Nickel and other raw material contracts | Other current liabilities | i 2.1 | i 2.1 | |||||||||||||||||
Natural gas contracts | Other long-term liabilities | i 0.9 | i 0.5 | |||||||||||||||||
Nickel and other raw material contracts | Other long-term liabilities | $ | i 0.5 | $ | i — | |||||||||||||||
Total derivatives designated as hedging instruments | $ | i 7.1 | $ | i 4.6 |
Amount of Gain (Loss) Recognized in OCI on Derivatives | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) | ||||||||||||||||||||||
Three months ended June 30, | Three months ended June 30, | ||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Nickel and other raw material contracts | $ | ( i 1.6) | $ | i 9.3 | $ | ( i 1.4) | $ | i 12.1 | |||||||||||||||
Natural gas contracts | ( i 0.7) | i 2.5 | ( i 1.8) | i 3.4 | |||||||||||||||||||
Foreign exchange contracts | i 0.1 | i 0.3 | i — | i 0.1 | |||||||||||||||||||
Interest rate swap | i 0.3 | i 0.2 | i 0.3 | ( i 0.1) | |||||||||||||||||||
Total | $ | ( i 1.9) | $ | i 12.3 | $ | ( i 2.9) | $ | i 15.5 |
Amount of Gain (Loss) Recognized in OCI on Derivatives | Amount of Gain (Loss) Reclassified from Accumulated OCI into Income (a) | ||||||||||||||||||||||
Six months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Nickel and other raw material contracts | $ | ( i 6.9) | $ | i 17.3 | $ | i 3.9 | $ | i 14.5 | |||||||||||||||
Natural gas contracts | ( i 6.8) | i 11.8 | ( i 3.2) | i 5.0 | |||||||||||||||||||
Foreign exchange contracts | i 0.2 | i 0.4 | i 0.1 | i 0.1 | |||||||||||||||||||
Interest rate swap | i 0.2 | i 1.5 | i 0.5 | ( i 0.3) | |||||||||||||||||||
Total | $ | ( i 13.3) | $ | i 31.0 | $ | i 1.3 | $ | i 19.3 |
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
(In millions) | Total Carrying Amount | Total Estimated Fair Value | Quoted
Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | |||||||||||||||||||
Cash and cash equivalents | $ | i 267.1 | $ | i 267.1 | $ | i 267.1 | $ | i — | |||||||||||||||
Derivative financial instruments: | |||||||||||||||||||||||
Assets | i 3.9 | i 3.9 | i — | i 3.9 | |||||||||||||||||||
Liabilities | i 7.1 | i 7.1 | i — | i 7.1 | |||||||||||||||||||
Debt (a) | i 1,789.3 | i 2,267.3 | i 1,944.4 | i 322.9 |
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||
(In millions) | Total Carrying Amount | Total Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | |||||||||||||||||||
Cash and cash equivalents | $ | i 584.0 | $ | i 584.0 | $ | i 584.0 | $ | i — | |||||||||||||||
Derivative financial instruments: | |||||||||||||||||||||||
Assets | i 18.0 | i 18.0 | i — | i 18.0 | |||||||||||||||||||
Liabilities | i 4.6 | i 4.6 | i — | i 4.6 | |||||||||||||||||||
Debt (a) | i 1,765.2 | i 1,964.5 | i 1,665.7 | i 298.8 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Total sales: | |||||||||||||||||||||||
High Performance Materials & Components | $ | i 562.8 | $ | i 439.8 | $ | i 1,092.4 | $ | i 820.6 | |||||||||||||||
Advanced Alloys & Solutions | i 613.4 | i 623.1 | i 1,239.2 | i 1,158.7 | |||||||||||||||||||
i 1,176.2 | i 1,062.9 | i 2,331.6 | i 1,979.3 | ||||||||||||||||||||
Intersegment sales: | |||||||||||||||||||||||
High Performance Materials & Components | i 35.7 | i 43.7 | i 94.2 | i 82.9 | |||||||||||||||||||
Advanced Alloys & Solutions | i 94.5 | i 59.7 | i 153.3 | i 102.8 | |||||||||||||||||||
i 130.2 | i 103.4 | i 247.5 | i 185.7 | ||||||||||||||||||||
Sales to external customers: | |||||||||||||||||||||||
High Performance Materials & Components | i 527.1 | i 396.1 | i 998.2 | i 737.7 | |||||||||||||||||||
Advanced Alloys & Solutions | i 518.9 | i 563.4 | i 1,085.9 | i 1,055.9 | |||||||||||||||||||
$ | i 1,046.0 | $ | i 959.5 | $ | i 2,084.1 | $ | i 1,793.6 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
EBITDA: | |||||||||||||||||||||||
High Performance Materials & Components | $ | i 108.1 | $ | i 60.3 | $ | i 188.2 | $ | i 128.4 | |||||||||||||||
Advanced Alloys & Solutions | i 63.2 | i 104.6 | i 135.9 | i 179.9 | |||||||||||||||||||
Total segment EBITDA | i 171.3 | i 164.9 | i 324.1 | i 308.3 | |||||||||||||||||||
Corporate expenses | ( i 18.1) | ( i 16.7) | ( i 35.4) | ( i 33.7) | |||||||||||||||||||
Closed operations and other expense | ( i 3.4) | ( i 5.1) | ( i 6.2) | ( i 6.5) | |||||||||||||||||||
Depreciation & amortization (a) | ( i 35.9) | ( i 36.0) | ( i 71.0) | ( i 71.5) | |||||||||||||||||||
Interest expense, net | ( i 21.3) | ( i 23.4) | ( i 41.2) | ( i 47.0) | |||||||||||||||||||
Restructuring and other credits (charges) | ( i 9.2) | i 1.3 | ( i 10.4) | ( i 6.2) | |||||||||||||||||||
Loss on asset sales and sales of businesses, net | ( i 0.6) | ( i 115.9) | ( i 0.6) | ( i 134.2) | |||||||||||||||||||
Income (loss) before income taxes | $ | i 82.8 | $ | ( i 30.9) | $ | i 159.3 | $ | i 9.2 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
High Performance Materials & Components | $ | i 17.9 | $ | i 16.9 | $ | i 35.3 | $ | i 34.8 | |||||||||||||||
Advanced Alloys & Solutions | i 16.2 | i 16.7 | i 32.3 | i 32.9 | |||||||||||||||||||
Other | i 1.8 | i 2.4 | i 3.4 | i 3.8 | |||||||||||||||||||
$ | i 35.9 | $ | i 36.0 | $ | i 71.0 | $ | i 71.5 |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Three months ended June 30, | Three months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Service cost - benefits earned during the year | $ | i 1.6 | $ | i 2.8 | $ | i 0.1 | $ | i 0.3 | |||||||||||||||
Interest cost on benefits earned in prior years | i 24.0 | i 17.5 | i 2.8 | i 1.9 | |||||||||||||||||||
Expected return on plan assets | ( i 25.6) | ( i 31.9) | i — | i — | |||||||||||||||||||
Amortization of prior service cost (credit) | i 0.1 | i 0.1 | ( i 0.3) | ( i 0.2) | |||||||||||||||||||
Amortization of net actuarial loss | i 14.4 | i 15.9 | i 1.5 | i 3.3 | |||||||||||||||||||
Settlement loss | i — | i 29.5 | i — | i — | |||||||||||||||||||
Total retirement benefit expense | $ | i 14.5 | $ | i 33.9 | $ | i 4.1 | $ | i 5.3 |
Pension Benefits | Other Postretirement Benefits | ||||||||||||||||||||||
Six months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Service cost - benefits earned during the year | $ | i 3.2 | $ | i 6.0 | $ | i 0.3 | $ | i 0.5 | |||||||||||||||
Interest cost on benefits earned in prior years | i 48.0 | i 35.3 | i 5.5 | i 3.9 | |||||||||||||||||||
Expected return on plan assets | ( i 51.3) | ( i 65.0) | i — | i — | |||||||||||||||||||
Amortization of prior service cost (credit) | i 0.2 | i 0.2 | ( i 0.5) | ( i 0.5) | |||||||||||||||||||
Amortization of net actuarial loss | i 28.8 | i 31.9 | i 3.0 | i 6.6 | |||||||||||||||||||
Settlement loss | i — | i 29.5 | i — | i — | |||||||||||||||||||
Total retirement benefit expense | $ | i 28.9 | $ | i 37.9 | $ | i 8.3 | $ | i 10.5 |
(In millions, except per share amounts) | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Numerator for basic income (loss) per common share – | |||||||||||||||||||||||
Net income (loss) attributable to ATI | $ | i 76.0 | $ | ( i 38.0) | $ | i 146.1 | $ | ( i 7.1) | |||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
i 3.5% Convertible Senior Notes due 2025 | i 2.6 | i — | i 5.2 | i — | |||||||||||||||||||
Numerator for diluted net income (loss) per common share – | |||||||||||||||||||||||
Net income (loss) attributable to ATI after assumed conversions | $ | i 78.6 | $ | ( i 38.0) | $ | i 151.3 | $ | ( i 7.1) | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Denominator for basic net income (loss) per common share – weighted average shares | i 128.5 | i 124.6 | i 128.5 | i 125.5 | |||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Share-based compensation | i 2.8 | i — | i 2.8 | i — | |||||||||||||||||||
i 3.5%
Convertible Senior Notes due 2025 | i 18.8 | i — | i 18.8 | i — | |||||||||||||||||||
Denominator for diluted net income (loss) per common share – adjusted weighted average shares and assumed conversions | i 150.1 | i 124.6 | i 150.1 | i 125.5 | |||||||||||||||||||
Basic net income (loss) attributable to ATI per common share | $ | i 0.59 | $ | ( i 0.31) | $ | i 1.14 | $ | ( i 0.06) | |||||||||||||||
Diluted net income (loss) attributable to ATI per common share | $ | i 0.52 | $ | ( i 0.31) | $ | i 1.01 | $ | ( i 0.06) |
Post- retirement benefit plans | Currency translation adjustment | Derivatives | Deferred Tax Asset Valuation Allowance | Total | |||||||||||||||||||||||||||||||||||||
Attributable to ATI: | |||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | ( i 724.0) | $ | ( i 71.2) | $ | ( i 2.1) | $ | i 66.3 | $ | ( i 731.0) | |||||||||||||||||||||||||||||||
OCI before reclassifications | i — | ( i 2.4) | ( i 1.9) | i — | ( i 4.3) | ||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | (a) | i 12.0 | (b) | i — | (c) | i 2.9 | (d) | i 4.1 | i 19.0 | ||||||||||||||||||||||||||||||||
Net current-period OCI | i 12.0 | ( i 2.4) | i 1.0 | i 4.1 | i 14.7 | ||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | ( i 712.0) | $ | ( i 73.6) | $ | ( i 1.1) | $ | i 70.4 | $ | ( i 716.3) | |||||||||||||||||||||||||||||||
Attributable to noncontrolling interests: | |||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2023 | $ | i — | $ | i 12.1 | $ | i — | $ | i — | $ | i 12.1 | |||||||||||||||||||||||||||||||
OCI before reclassifications | i — | ( i 5.7) | i — | i — | ( i 5.7) | ||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | i — | (b) | i — | i — | i — | i — | |||||||||||||||||||||||||||||||||||
Net current-period OCI | i — | ( i 5.7) | i — | i — | ( i 5.7) | ||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | i — | $ | i 6.4 | $ | i — | $ | i — | $ | i 6.4 |
Post- retirement benefit plans | Currency translation adjustment | Derivatives | Deferred Tax Asset Valuation Allowance | Total | |||||||||||||||||||||||||||||||||||||
Attributable to ATI: | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | ( i 736.1) | $ | ( i 70.1) | $ | i 13.5 | $ | i 67.5 | $ | ( i 725.2) | |||||||||||||||||||||||||||||||
OCI before reclassifications | i — | ( i 3.5) | ( i 13.3) | i — | ( i 16.8) | ||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | (a) | i 24.1 | (b) | i — | (c) | ( i 1.3) | (d) | i 2.9 | i 25.7 | ||||||||||||||||||||||||||||||||
Net current-period OCI | i 24.1 | ( i 3.5) | ( i 14.6) | i 2.9 | i 8.9 | ||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | ( i 712.0) | $ | ( i 73.6) | $ | ( i 1.1) | $ | i 70.4 | $ | ( i 716.3) | |||||||||||||||||||||||||||||||
Attributable to noncontrolling interests: | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | i — | $ | i 7.7 | $ | i — | $ | i — | $ | i 7.7 | |||||||||||||||||||||||||||||||
OCI before reclassifications | i — | ( i 1.3) | i — | i — | ( i 1.3) | ||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | i — | (b) | i — | i — | i — | i — | |||||||||||||||||||||||||||||||||||
Net current-period OCI | i — | ( i 1.3) | i — | i — | ( i 1.3) | ||||||||||||||||||||||||||||||||||||
Balance, June 30, 2023 | $ | i — | $ | i 6.4 | $ | i — | $ | i — | $ | i 6.4 |
Post- retirement benefit plans | Currency translation adjustment | Derivatives | Deferred Tax Asset Valuation Allowance | Total | |||||||||||||||||||||||||||||||||||||
Attributable to ATI: | |||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | ( i 933.2) | $ | ( i 72.4) | $ | i 20.0 | $ | i 25.1 | $ | ( i 960.5) | |||||||||||||||||||||||||||||||
OCI before reclassifications | i — | ( i 12.7) | i 12.3 | i — | ( i 0.4) | ||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | (a) | i 50.2 | (b) | i 20.0 | (d) | ( i 15.5) | (e) | ( i 2.7) | i 52.0 | ||||||||||||||||||||||||||||||||
Net current-period OCI | i 50.2 | i 7.3 | ( i 3.2) | ( i 2.7) | i 51.6 | ||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | ( i 883.0) | $ | ( i 65.1) | $ | i 16.8 | $ | i 22.4 | $ | ( i 908.9) | |||||||||||||||||||||||||||||||
Attributable to noncontrolling interests: | |||||||||||||||||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | i — | $ | i 26.7 | $ | i — | $ | i — | $ | i 26.7 | |||||||||||||||||||||||||||||||
OCI before reclassifications | i — | ( i 9.7) | i — | i — | ( i 9.7) | ||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | i — | (c) | i — | i — | i — | i — | |||||||||||||||||||||||||||||||||||
Net current-period OCI | i — | ( i 9.7) | i — | i — | $ | ( i 9.7) | |||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | i — | $ | i 17.0 | $ | i — | $ | i — | $ | i 17.0 |
Post- retirement benefit plans | Currency translation adjustment | Derivatives | Deferred Tax Asset Valuation Allowance | Total | |||||||||||||||||||||||||||||||||||||
Attributable to ATI: | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | ( i 947.7) | $ | ( i 64.9) | $ | i 5.1 | $ | i 15.8 | $ | ( i 991.7) | |||||||||||||||||||||||||||||||
OCI before reclassifications | i — | ( i 20.2) | i 31.0 | i — | i 10.8 | ||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | (a) | i 64.7 | (b) | i 20.0 | (d) | ( i 19.3) | (e) | i 6.6 | i 72.0 | ||||||||||||||||||||||||||||||||
Net current-period OCI | i 64.7 | ( i 0.2) | i 11.7 | i 6.6 | i 82.8 | ||||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | ( i 883.0) | $ | ( i 65.1) | $ | i 16.8 | $ | i 22.4 | $ | ( i 908.9) | |||||||||||||||||||||||||||||||
Attributable to noncontrolling interests: | |||||||||||||||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | i — | $ | i 26.0 | $ | i — | $ | i — | $ | i 26.0 | |||||||||||||||||||||||||||||||
OCI before reclassifications | i — | ( i 9.0) | i — | i — | ( i 9.0) | ||||||||||||||||||||||||||||||||||||
Amounts reclassified from AOCI | i — | (c) | i — | i — | i — | i — | |||||||||||||||||||||||||||||||||||
Net current-period OCI | i — | ( i 9.0) | i — | i — | $ | ( i 9.0) | |||||||||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | i — | $ | i 17.0 | $ | i — | $ | i — | $ | i 17.0 |
Details
about AOCI Components (In millions) | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | Affected line item in the statements of operations | ||||||||||||||||||||||||
Postretirement benefit plans | |||||||||||||||||||||||||||||
Prior service credit | $ | i 0.2 | i 0.1 | $ | i 0.3 | $ | i 0.3 | (a) | |||||||||||||||||||||
Actuarial losses | ( i 15.9) | ( i 19.2) | ( i 31.8) | ( i 38.5) | (a) | ||||||||||||||||||||||||
Settlement loss | i — | ( i 29.5) | i — | ( i 29.5) | (b) | ||||||||||||||||||||||||
( i 15.7) | ( i 48.6) | ( i 31.5) | ( i 67.7) | (d) | Total before tax | ||||||||||||||||||||||||
( i 3.7) | i 1.6 | ( i 7.4) | ( i 3.0) | Tax expense (benefit) (e) | |||||||||||||||||||||||||
$ | ( i 12.0) | $ | ( i 50.2) | $ | ( i 24.1) | $ | ( i 64.7) | Net of tax | |||||||||||||||||||||
Currency translation adjustment | $ | i — | $ | ( i 20.0) | $ | i — | $ | ( i 20.0) | (b,d) | ||||||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||
Nickel and other raw material contracts | $ | ( i i 1.8 / ) | $ | i i 15.9 / | $ | i i 5.1 / | $ | i i 19.1 / | (c) | ||||||||||||||||||||
Natural gas contracts | ( i 2.4) | i 4.5 | ( i 4.2) | i 6.6 | (c) | ||||||||||||||||||||||||
Foreign exchange contracts | i — | i 0.1 | i 0.1 | i 0.1 | (c) | ||||||||||||||||||||||||
Interest rate swap | i 0.4 | ( i 0.1) | i 0.7 | ( i 0.4) | (c) | ||||||||||||||||||||||||
( i 3.8) | i 20.4 | i 1.7 | i 25.4 | (d) | Total before tax | ||||||||||||||||||||||||
( i 0.9) | i 4.9 | i 0.4 | i 6.1 | Tax expense (benefit) (e) | |||||||||||||||||||||||||
$ | ( i 2.9) | $ | i 15.5 | $ | i 1.3 | $ | i 19.3 | Net of tax | |||||||||||||||||||||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
Three months ended | Three months ended | ||||||||||||||||||||||
Markets | June 30, 2023 | June 30, 2022 | |||||||||||||||||||||
Aerospace & Defense: | |||||||||||||||||||||||
Jet Engines- Commercial | $ | 340.9 | 32 | % | $ | 248.7 | 26 | % | |||||||||||||||
Airframes- Commercial | 164.2 | 16 | % | 106.1 | 11 | % | |||||||||||||||||
Defense | 101.7 | 10 | % | 81.6 | 9 | % | |||||||||||||||||
Total Aerospace & Defense | $ | 606.8 | 58 | % | $ | 436.4 | 46 | % | |||||||||||||||
Energy: | |||||||||||||||||||||||
Oil & Gas | 111.3 | 11 | % | 125.2 | 13 | % | |||||||||||||||||
Specialty Energy | 68.2 | 6 | % | 75.1 | 8 | % | |||||||||||||||||
Total Energy | 179.5 | 17 | % | 200.3 | 21 | % | |||||||||||||||||
Automotive | 52.8 | 5 | % | 75.5 | 8 | % | |||||||||||||||||
Construction/Mining | 48.4 | 5 | % | 39.9 | 4 | % | |||||||||||||||||
Medical | 41.9 | 4 | % | 39.5 | 4 | % | |||||||||||||||||
Electronics | 36.0 | 3 | % | 49.4 | 5 | % | |||||||||||||||||
Food Equipment & Appliances | 20.9 | 2 | % | 62.7 | 6 | % | |||||||||||||||||
Other | 59.7 | 6 | % | 55.8 | 6 | % | |||||||||||||||||
Total | $ | 1,046.0 | 100 | % | $ | 959.5 | 100 | % |
Six months ended | Six months ended | ||||||||||||||||||||||
Markets | June 30, 2023 | June 30, 2022 | |||||||||||||||||||||
Aerospace & Defense: | |||||||||||||||||||||||
Jet Engines- Commercial | $ | 651.8 | 31 | % | $ | 445.3 | 25 | % | |||||||||||||||
Airframes- Commercial | 334.1 | 16 | % | 199.8 | 11 | % | |||||||||||||||||
Defense | 196.6 | 10 | % | 158.1 | 9 | % | |||||||||||||||||
Total Aerospace & Defense | $ | 1,182.5 | 57 | % | $ | 803.2 | 45 | % | |||||||||||||||
Energy: | |||||||||||||||||||||||
Oil & Gas | 238.8 | 12 | % | 228.3 | 13 | % | |||||||||||||||||
Specialty Energy | 150.9 | 7 | % | 131.7 | 7 | % | |||||||||||||||||
Total Energy | 389.7 | 19 | % | 360.0 | 20 | % | |||||||||||||||||
Automotive | 112.2 | 5 | % | 166.5 | 9 | % | |||||||||||||||||
Construction/Mining | 88.8 | 4 | % | 91.9 | 5 | % | |||||||||||||||||
Medical | 76.9 | 4 | % | 75.7 | 4 | % | |||||||||||||||||
Electronics | 70.4 | 3 | % | 101.0 | 6 | % | |||||||||||||||||
Food Equipment & Appliances | 42.4 | 2 | % | 96.7 | 5 | % | |||||||||||||||||
Other | 121.2 | 6 | % | 98.6 | 6 | % | |||||||||||||||||
Total | $ | 2,084.1 | 100 | % | $ | 1,793.6 | 100 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Nickel-based alloys and specialty alloys | 52 | % | 52 | % | 52 | % | 51 | % | |||||||||||||||
Precision forgings, castings and components | 17 | % | 15 | % | 16 | % | 15 | % | |||||||||||||||
Titanium and titanium-based alloys | 14 | % | 11 | % | 14 | % | 10 | % | |||||||||||||||
Precision rolled strip products | 9 | % | 14 | % | 10 | % | 15 | % | |||||||||||||||
Zirconium and related alloys | 8 | % | 8 | % | 8 | % | 9 | % | |||||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Sales: | |||||||||||||||||||||||
High Performance Materials & Components | $ | 527.1 | $ | 396.1 | $ | 998.2 | $ | 737.7 | |||||||||||||||
Advanced Alloys & Solutions | 518.9 | 563.4 | 1,085.9 | 1,055.9 | |||||||||||||||||||
Total external sales | $ | 1,046.0 | $ | 959.5 | $ | 2,084.1 | $ | 1,793.6 | |||||||||||||||
EBITDA: | |||||||||||||||||||||||
High Performance Materials & Components | $ | 108.1 | $ | 60.3 | $ | 188.2 | $ | 128.4 | |||||||||||||||
% of Sales | 20.5 | % | 15.2 | % | 18.9 | % | 17.4 | % | |||||||||||||||
Advanced Alloys & Solutions | 63.2 | 104.6 | 135.9 | 179.9 | |||||||||||||||||||
% of Sales | 12.2 | % | 18.6 | % | 12.5 | % | 17.0 | % | |||||||||||||||
Total segment EBITDA | $ | 171.3 | $ | 164.9 | $ | 324.1 | $ | 308.3 | |||||||||||||||
% of Sales | 16.4 | % | 17.2 | % | 15.6 | % | 17.2 | % | |||||||||||||||
Corporate expenses | (18.1) | (16.7) | (35.4) | (33.7) | |||||||||||||||||||
Closed operations and other expense | (3.4) | (5.1) | (6.2) | (6.5) | |||||||||||||||||||
ATI Adjusted EBITDA | 149.8 | 143.1 | 282.5 | 268.1 | |||||||||||||||||||
Depreciation & amortization | (35.9) | (36.0) | (71.0) | (71.5) | |||||||||||||||||||
Interest expense, net | (21.3) | (23.4) | (41.2) | (47.0) | |||||||||||||||||||
Restructuring and other credits (charges) | (9.2) | 1.3 | (10.4) | (6.2) | |||||||||||||||||||
Loss on asset sales and sales of businesses, net | (0.6) | (115.9) | (0.6) | (134.2) | |||||||||||||||||||
Income (loss) before income taxes | 82.8 | (30.9) | 159.3 | 9.2 | |||||||||||||||||||
Income tax provision | 3.7 | 3.4 | 8.0 | 8.3 | |||||||||||||||||||
Net (loss) income | 79.1 | (34.3) | 151.3 | 0.9 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interests | 3.1 | 3.7 | 5.2 | 8.0 | |||||||||||||||||||
Net income (loss) attributable to ATI | $ | 76.0 | $ | (38.0) | $ | 146.1 | $ | (7.1) |
June 30, | December 31, | ||||||||||
(In millions) | 2023 | 2022 | |||||||||
Accounts receivable | $ | 710.1 | $ | 579.2 | |||||||
Short-term contract assets | 51.8 | 64.1 | |||||||||
Inventory | 1,380.4 | 1,195.7 | |||||||||
Accounts payable | (467.7) | (553.3) | |||||||||
Short-term contract liabilities | (137.8) | (149.1) | |||||||||
Subtotal | 1,536.8 | 1,136.6 | |||||||||
Allowance for doubtful accounts | 7.1 | 7.7 | |||||||||
Inventory valuation reserves | 88.6 | 70.9 | |||||||||
Managed working capital | $ | 1,632.5 | $ | 1,215.2 | |||||||
Annualized prior 3 months sales | $ | 4,183.7 | $ | 4,041.9 | |||||||
Managed working capital as a % of annualized sales | 39.0 | % | 30.1 | % |
Three months ended | Three months ended | ||||||||||||||||||||||
Markets | June 30, 2023 | June 30, 2022 | |||||||||||||||||||||
Aerospace & Defense: | |||||||||||||||||||||||
Jet Engines- Commercial | $ | 319.2 | 61 | % | $ | 231.4 | 59 | % | |||||||||||||||
Airframes- Commercial | 67.0 | 13 | % | 43.9 | 11 | % | |||||||||||||||||
Defense | 50.0 | 9 | % | 40.7 | 10 | % | |||||||||||||||||
Total Aerospace & Defense | 436.2 | 83 | % | 316.0 | 80 | % | |||||||||||||||||
Energy: | |||||||||||||||||||||||
Oil & Gas | 3.7 | 1 | % | 8.1 | 2 | % | |||||||||||||||||
Specialty Energy | 29.9 | 5 | % | 31.5 | 8 | % | |||||||||||||||||
Total Energy | 33.6 | 6 | % | 39.6 | 10 | % | |||||||||||||||||
Medical | 24.3 | 5 | % | 16.8 | 4 | % | |||||||||||||||||
Construction/Mining | 11.0 | 2 | % | 7.9 | 2 | % | |||||||||||||||||
Other | 22.0 | 4 | % | 15.8 | 4 | % | |||||||||||||||||
Total | $ | 527.1 | 100 | % | $ | 396.1 | 100 | % |
Three months ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Nickel-based alloys and specialty alloys | 49 | % | 48 | % | |||||||
Precision forgings, castings and components | 33 | % | 35 | % | |||||||
Titanium and titanium-based alloys | 17 | % | 17 | % | |||||||
Precision rolled strip products | 1 | % | — | % | |||||||
Total | 100 | % | 100 | % |
Six months ended | Six months ended | ||||||||||||||||||||||
Markets | June 30, 2023 | June 30, 2022 | |||||||||||||||||||||
Aerospace & Defense: | |||||||||||||||||||||||
Jet Engines- Commercial | $ | 601.7 | 60 | % | $ | 410.4 | 56 | % | |||||||||||||||
Airframes- Commercial | 138.0 | 14 | % | 81.1 | 11 | % | |||||||||||||||||
Defense | 91.9 | 9 | % | 82.1 | 11 | % | |||||||||||||||||
Total Aerospace & Defense | 831.6 | 83 | % | 573.6 | 78 | % | |||||||||||||||||
Energy: | |||||||||||||||||||||||
Oil & Gas | 6.1 | 1 | % | 25.2 | 3 | % | |||||||||||||||||
Specialty Energy | 54.8 | 5 | % | 61.6 | 9 | % | |||||||||||||||||
Total Energy | 60.9 | 6 | % | 86.8 | 12 | % | |||||||||||||||||
Medical | 41.8 | 4 | % | 30.0 | 4 | % | |||||||||||||||||
Construction/Mining | 19.2 | 2 | % | 16.3 | 2 | % | |||||||||||||||||
Other | 44.7 | 5 | % | 31.0 | 4 | % | |||||||||||||||||
Total | $ | 998.2 | 100 | % | $ | 737.7 | 100 | % |
Six months ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Nickel-based alloys and specialty alloys | 47 | % | 48 | % | |||||||
Precision forgings, castings and components | 33 | % | 35 | % | |||||||
Titanium and titanium-based alloys | 19 | % | 17 | % | |||||||
Precision rolled strip products | 1 | % | — | % | |||||||
Total | 100 | % | 100 | % |
Three months ended | Three months ended | ||||||||||||||||||||||
Markets | June 30, 2023 | June 30, 2022 | |||||||||||||||||||||
Aerospace & Defense: | |||||||||||||||||||||||
Jet Engines- Commercial | $ | 21.7 | 4 | % | $ | 17.3 | 3 | % | |||||||||||||||
Airframes- Commercial | 97.2 | 19 | % | 62.2 | 11 | % | |||||||||||||||||
Defense | 51.7 | 10 | % | 40.9 | 7 | % | |||||||||||||||||
Total Aerospace & Defense | 170.6 | 33 | % | 120.4 | 21 | % | |||||||||||||||||
Energy: | |||||||||||||||||||||||
Oil & Gas | 107.6 | 21 | % | 117.1 | 21 | % | |||||||||||||||||
Specialty Energy | 38.3 | 7 | % | 43.6 | 8 | % | |||||||||||||||||
Total Energy | 145.9 | 28 | % | 160.7 | 29 | % | |||||||||||||||||
Automotive | 46.8 | 9 | % | 73.2 | 13 | % | |||||||||||||||||
Construction/Mining | 37.4 | 7 | % | 32.0 | 6 | % | |||||||||||||||||
Electronics | 35.3 | 7 | % | 48.7 | 8 | % | |||||||||||||||||
Food Equipment & Appliances | 20.9 | 4 | % | 62.7 | 11 | % | |||||||||||||||||
Other | 62.0 | 12 | % | 65.7 | 12 | % | |||||||||||||||||
Total | $ | 518.9 | 100 | % | $ | 563.4 | 100 | % |
Three months ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Nickel-based alloys and specialty alloys | 55 | % | 55 | % | |||||||
Precision rolled strip products | 18 | % | 24 | % | |||||||
Zirconium and related alloys | 16 | % | 15 | % | |||||||
Titanium and titanium-based alloys | 11 | % | 6 | % | |||||||
Total | 100 | % | 100 | % |
Six months ended | Six months ended | ||||||||||||||||||||||
Markets | June 30, 2023 | June 30, 2022 | |||||||||||||||||||||
Aerospace & Defense: | |||||||||||||||||||||||
Jet Engines- Commercial | $ | 50.1 | 5 | % | $ | 34.9 | 4 | % | |||||||||||||||
Airframes- Commercial | 196.1 | 18 | % | 118.7 | 11 | % | |||||||||||||||||
Defense | 104.7 | 10 | % | 76.0 | 7 | % | |||||||||||||||||
Total Aerospace & Defense | 350.9 | 33 | % | 229.6 | 22 | % | |||||||||||||||||
Energy: | |||||||||||||||||||||||
Oil & Gas | 232.7 | 21 | % | 203.1 | 19 | % | |||||||||||||||||
Specialty Energy | 96.1 | 9 | % | 70.1 | 7 | % | |||||||||||||||||
Total Energy | 328.8 | 30 | % | 273.2 | 26 | % | |||||||||||||||||
Automotive | 99.9 | 9 | % | 161.3 | 15 | % | |||||||||||||||||
Construction/Mining | 69.6 | 6 | % | 75.6 | 7 | % | |||||||||||||||||
Electronics | 69.2 | 6 | % | 99.8 | 10 | % | |||||||||||||||||
Food Equipment & Appliances | 42.4 | 4 | % | 96.7 | 9 | % | |||||||||||||||||
Other | 125.1 | 12 | % | 119.7 | 11 | % | |||||||||||||||||
Total | $ | 1,085.9 | 100 | % | $ | 1,055.9 | 100 | % |
Six months ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
Nickel-based alloys and specialty alloys | 57 | % | 54 | % | |||||||
Precision rolled strip products | 18 | % | 26 | % | |||||||
Zirconium and related alloys | 15 | % | 14 | % | |||||||
Titanium and titanium-based alloys | 10 | % | 6 | % | |||||||
Total | 100 | % | 100 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
High Performance Materials & Components | $ | 17.9 | $ | 16.9 | $ | 35.3 | $ | 34.8 | |||||||||||||||
Advanced Alloys & Solutions | 16.2 | 16.7 | 32.3 | 32.9 | |||||||||||||||||||
Other | 1.8 | 2.4 | 3.4 | 3.8 | |||||||||||||||||||
$ | 35.9 | $ | 36.0 | $ | 71.0 | $ | 71.5 |
Three months ended | Latest 12 months ended | Fiscal year ended | ||||||||||||||||||||||||
June 30, 2023 | June 30, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||
Net income (loss) attributable to ATI | $ | 76.0 | $ | (38.0) | $ | 284.1 | $ | 130.9 | ||||||||||||||||||
Net income attributable to noncontrolling interests | 3.1 | 3.7 | 12.8 | 15.6 | ||||||||||||||||||||||
Net income (loss) | 79.1 | (34.3) | 296.9 | 146.5 | ||||||||||||||||||||||
Interest expense | 21.3 | 23.4 | 81.6 | 87.4 | ||||||||||||||||||||||
Depreciation and amortization | 35.9 | 36.0 | 142.4 | 142.9 | ||||||||||||||||||||||
Income tax provision | 3.7 | 3.4 | 15.2 | 15.5 | ||||||||||||||||||||||
Restructuring and other charges (credits) | 9.2 | (1.3) | 27.9 | 23.7 | ||||||||||||||||||||||
Joint venture restructuring credit | — | — | (0.9) | (0.9) | ||||||||||||||||||||||
Loss on asset sales and sale of businesses, net | 0.6 | 115.9 | 0.6 | 134.2 | ||||||||||||||||||||||
Adjusted EBITDA | $ | 149.8 | $ | 143.1 | $ | 563.7 | $ | 549.3 | ||||||||||||||||||
Debt | $ | 1,773.8 | $ | 1,748.0 | ||||||||||||||||||||||
Add: Debt issuance costs | 15.5 | 17.2 | ||||||||||||||||||||||||
Total debt | 1,789.3 | 1,765.2 | ||||||||||||||||||||||||
Less: Cash | (267.1) | (584.0) | ||||||||||||||||||||||||
Net debt | $ | 1,522.2 | $ | 1,181.2 | ||||||||||||||||||||||
Total Debt to Adjusted EBITDA | 3.17 | 3.21 | ||||||||||||||||||||||||
Net Debt to Adjusted EBITDA | 2.70 | 2.15 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk |
Item 4. | Controls and Procedures |
Item 1. | Legal Proceedings |
Item 1A. | Risk Factors |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total
Number of Shares (or Units) Purchased (a) | Average Price Paid per Share (or Unit) (b) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||||||||||
April 1-30, 2023 | 484 | $ | 38.20 | — | $ | 75,000,000 | ||||||||||||||||||||
May 1-31, 2023 | 1,757 | $ | 38.14 | — | $ | 75,000,000 | ||||||||||||||||||||
June 1-30, 2023 | — | $ | — | — | $ | 75,000,000 | ||||||||||||||||||||
Total | 2,241 | $ | 38.15 | — | $ | 75,000,000 |
Item 5. | Other Information |
Item 6. | Exhibits |
10.1 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32.1 | ||||||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
104 | Cover Page Interactive Data File - the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
Date: | August 2, 2023 | By | /s/ Donald P. Newman | ||||||||||||||
Donald P. Newman | |||||||||||||||||
Executive Vice President, Finance and Chief Financial Officer (Principal Financial and Accounting Officer) | |||||||||||||||||
This ‘10-Q’ Filing | Date | Other Filings | ||
---|---|---|---|---|
6/15/25 | ||||
3/15/25 | ||||
1/31/24 | ||||
12/29/23 | ||||
9/8/23 | ||||
8/10/23 | ||||
Filed on: | 8/2/23 | 8-K | ||
7/14/23 | ||||
For Period end: | 6/30/23 | |||
6/15/23 | ||||
6/9/23 | 11-K | |||
5/10/23 | ||||
4/28/23 | ||||
3/31/23 | 10-Q | |||
1/1/23 | ||||
12/31/22 | 10-K, 11-K, 5, ARS, SD | |||
9/30/22 | 10-Q | |||
6/30/22 | 10-Q | |||
5/12/22 | 8-K, DEF 14A | |||
3/31/22 | 10-Q | |||
3/9/22 | 4, 8-K | |||
2/2/22 | 8-K | |||
12/31/21 | 10-K, 11-K, SD | |||
1/12/21 | ||||
List all Filings |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/23/24 Ati Inc. 10-K 12/31/23 149:23M Workiva Inc Wde… FA01/FA 8/08/23 Ati Inc. 424B5 2:972K Donnelley … Solutions/FA 8/07/23 Ati Inc. 424B3 1:947K Donnelley … Solutions/FA |