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Financial Information for Subsidiary and Guarantor Parent
 12 Months Ended
Dec. 31, 2015
Financial Information for Subsidiary and Guarantor Parent [Abstract]  
Financial Information for Subsidiary and Guarantor Parent
Financial Information for Subsidiary and Guarantor Parent
The payment obligations under the $150.0 million 6.95% Debentures due 2025 issued by Allegheny Ludlum, LLC (formerly known as Allegheny Ludlum Corporation) (the “Subsidiary”) are fully and unconditionally guaranteed by Allegheny Technologies Incorporated (the “Guarantor Parent”). In accordance with positions established by the U.S. Securities and Exchange Commission, the following financial information sets forth separately financial information with respect to the Subsidiary, the Non-guarantor Subsidiaries and the Guarantor Parent. The principal elimination entries eliminate investments in subsidiaries and certain intercompany balances and transactions.
Allegheny Technologies is the plan sponsor for the U.S. qualified defined benefit pension plan (the “Plan”) which covers certain current and former employees of the Subsidiary and the Non-guarantor Subsidiaries. As a result, the balance sheets presented for the Subsidiary and the Non-guarantor Subsidiaries do not include any Plan assets or liabilities, or the related deferred taxes. The Plan assets, liabilities and related deferred taxes and pension income or expense are recognized by the Guarantor Parent. Management and royalty fees charged to the Subsidiary and to the Non-guarantor Subsidiaries by the Guarantor Parent have been excluded solely for purposes of this presentation.

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Balance Sheets
December 31, 2015
(In millions)
 
Guarantor
Parent
 
Subsidiary
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
0.4

 
$
2.8

 
$
146.6

 
$
—

 
$
149.8

Accounts receivable, net
 
0.1

 
100.3

 
299.9

 
—

 
400.3

Intercompany notes receivable
 
—

 
—

 
2,601.5

 
(2,601.5
)
 
—

Inventories, net
 
—

 
239.9

 
1,031.7

 
—

 
1,271.6

Prepaid expenses and other current assets
 
9.3

 
3.8

 
32.8

 
—

 
45.9

Total current assets
 
9.8

 
346.8

 
4,112.5

 
(2,601.5
)
 
1,867.6

Property, plant and equipment, net
 
2.2

 
1,559.9

 
1,366.1

 
—

 
2,928.2

Goodwill
 
—

 
—

 
651.4

 
—

 
651.4

Intercompany notes receivable
 
—

 
—

 
200.0

 
(200.0
)
 
—

Investments in subsidiaries
 
5,742.5

 
37.7

 
—

 
(5,780.2
)
 
—

Other assets
 
13.4

 
23.0

 
268.1

 
—

 
304.5

Total assets
 
$
5,767.9

 
$
1,967.4

 
$
6,598.1

 
$
(8,581.7
)
 
$
5,751.7

Liabilities and stockholders’ equity:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
4.8

 
$
171.1

 
$
204.9

 
$
—

 
$
380.8

Accrued liabilities
 
42.1

 
74.0

 
185.7

 
—

 
301.8

Intercompany notes payable
 
1,325.4

 
1,276.1

 
—

 
(2,601.5
)
 
—

Short-term debt and current portion of long-term debt
 
0.7

 
0.1

 
3.1

 
—

 
3.9

Total current liabilities
 
1,373.0

 
1,521.3

 
393.7

 
(2,601.5
)
 
686.5

Long-term debt
 
1,341.7

 
149.7

 
0.4

 
—

 
1,491.8

Intercompany notes payable
 
—

 
200.0

 
—

 
(200.0
)
 
—

Accrued postretirement benefits
 
—

 
280.0

 
79.2

 
—

 
359.2

Pension liabilities
 
778.0

 
5.2

 
50.6

 
—

 
833.8

Deferred income taxes
 
75.6

 
—

 
—

 
—

 
75.6

Other long-term liabilities
 
15.2

 
20.7

 
72.4

 
—

 
108.3

Total liabilities
 
3,583.5

 
2,176.9

 
596.3

 
(2,801.5
)
 
3,555.2

Redeemable noncontrolling interest
 
—

 
—

 
12.1

 
—

 
12.1

Total stockholders’ equity
 
2,184.4

 
(209.5
)
 
5,989.7

 
(5,780.2
)
 
2,184.4

Total liabilities and stockholders’ equity
 
$
5,767.9

 
$
1,967.4

 
$
6,598.1

 
$
(8,581.7
)
 
$
5,751.7








Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Operations
For the year ended December 31, 2015
(In millions)
 
Guarantor
Parent
 
Subsidiary
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Sales
 
$
—

 
$
1,453.2

 
$
2,266.4

 
$
—

 
$
3,719.6

Cost of sales
 
27.3

 
1,643.2

 
1,988.8

 
—

 
3,659.3

Selling and administrative expenses
 
88.2

 
29.4

 
121.2

 
—

 
238.8

Impairment of goodwill
 
—

 
126.6

 
—

 
—

 
126.6

Restructuring charges

 
1.6

 
58.0

 
4.7

 
—

 
64.3

Income (loss) before interest, other income and income taxes
 
(117.1
)
 
(404.0
)
 
151.7

 
—

 
(369.4
)
Interest income (expense), net
 
(117.3
)
 
(50.9
)
 
58.0

 
—

 
(110.2
)
Other income (expense) including equity in income of unconsolidated subsidiaries
 
(243.6
)
 
1.1

 
0.8

 
243.3

 
1.6

Income (loss) from continuing operations before income taxes
 
(478.0
)
 
(453.8
)
 
210.5

 
243.3

 
(478.0
)
Income tax provision (benefit)
 
(112.1
)
 
(165.7
)
 
51.6

 
114.1

 
(112.1
)
Income (loss) from continuing operations
 
(365.9
)
 
(288.1
)
 
158.9

 
129.2

 
(365.9
)
Income (loss) from discontinued operations, net of tax
 
—

 
—

 
—

 
—

 
—

Net income (loss)
 
(365.9
)
 
(288.1
)
 
158.9

 
129.2

 
(365.9
)
Less: Net income attributable to noncontrolling interest
 
—

 
—

 
12.0

 
—

 
12.0

Net income (loss) attributable to ATI
 
$
(365.9
)
 
$
(288.1
)
 
$
146.9

 
$
129.2

 
$
(377.9
)

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Comprehensive Income
For the year ended December 31, 2015
(In millions)
 
Guarantor
Parent
 
Subsidiary
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
 
$
(365.9
)
 
$
(288.1
)
 
$
158.9

 
$
129.2

 
$
(365.9
)
Other comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
Currency translation adjustment arising during the period
 
(37.0
)
 
—

 
(37.0
)
 
37.0

 
(37.0
)
Net derivative loss on hedge transactions
 
(32.0
)
 
—

 
—

 
—

 
(32.0
)
Pension and postretirement benefits
 
(19.7
)
 
29.8

 
3.1

 
(32.9
)
 
(19.7
)
Other comprehensive income (loss), net of tax
 
(88.7
)
 
29.8

 
(33.9
)
 
4.1

 
(88.7
)
Comprehensive income (loss)
 
(454.6
)
 
(258.3
)
 
125.0

 
133.3

 
(454.6
)
Less: Comprehensive income attributable to noncontrolling interest
 
—

 
—

 
6.4

 
—

 
6.4

Comprehensive income (loss) attributable to ATI
 
$
(454.6
)
 
$
(258.3
)
 
$
118.6

 
$
133.3

 
$
(461.0
)

Condensed Statements of Cash Flows
For the year ended December 31, 2015
(In millions)
 
Guarantor
Parent
 
Subsidiary
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows provided by (used in) operating activities
 
$
(70.0
)
 
$
(134.8
)
 
$
360.2

 
$
(24.0
)
 
$
131.4

Investing Activities:
 
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
 
(0.6
)
 
(66.9
)
 
(77.0
)
 
—

 
(144.5
)
Net receipts (payments) on intercompany activity
 
—

 
—

 
(327.9
)
 
327.9

 
—

Purchases of businesses, net of cash acquired
 
—

 
—

 
(0.5
)
 
—

 
(0.5
)
Asset disposals and other
 
—

 
0.2

 
(0.3
)
 
—

 
(0.1
)
Cash flows provided by (used in) investing activities
 
(0.6
)
 
(66.7
)
 
(405.7
)
 
327.9

 
(145.1
)
Financing Activities:
 
 
 
 
 
 
 
 
 
 
Payments on long-term debt and capital leases
 
(0.6
)
 
(0.1
)
 
(22.9
)
 
—

 
(23.6
)
Net receipts (payments) on intercompany activity
 
137.3

 
190.6

 
—

 
(327.9
)
 
—

Dividends paid to stockholders
 
(66.5
)
 
—

 
(24.0
)
 
24.0

 
(66.5
)
Dividends paid to noncontrolling interests
 
—

 
—

 
(16.0
)
 
—

 
(16.0
)
Other
 
(1.4
)
 
—

 
1.5

 
—

 
0.1

Cash flows provided by (used in) financing activities
 
68.8

 
190.5

 
(61.4
)
 
(303.9
)
 
(106.0
)
Decrease in cash and cash equivalents
 
$
(1.8
)
 
$
(11.0
)
 
$
(106.9
)
 
$
—

 
$
(119.7
)

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Balance Sheets
December 31, 2014
(In millions)
 
Guarantor
Parent
 
Subsidiary
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
2.2

 
$
13.8

 
$
253.5

 
$
—

 
$
269.5

Accounts receivable, net
 
0.1

 
209.1

 
394.4

 
—

 
603.6

Intercompany notes receivable
 
—

 
—

 
2,390.8

 
(2,390.8
)
 
—

Inventories, net
 
—

 
387.7

 
1,085.1

 
—

 
1,472.8

Prepaid expenses and other current assets
 
63.7

 
13.2

 
59.3

 
—

 
136.2

Total current assets
 
66.0

 
623.8

 
4,183.1

 
(2,390.8
)
 
2,482.1

Property, plant and equipment, net
 
2.2

 
1,545.1

 
1,414.5

 
—

 
2,961.8

Goodwill
 
—

 
126.6

 
653.8

 
—

 
780.4

Intercompany notes receivable
 
—

 
—

 
200.0

 
(200.0
)
 
—

Investments in subsidiaries
 
6,149.4

 
37.7

 
—

 
(6,187.1
)
 
—

Other assets
 
13.3

 
27.5

 
306.6

 
—

 
347.4

Total assets
 
$
6,230.9

 
$
2,360.7

 
$
6,758.0

 
$
(8,777.9
)
 
$
6,571.7

Liabilities and stockholders’ equity:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
4.5

 
$
302.0

 
$
250.2

 
$
—

 
$
556.7

Accrued liabilities
 
47.5

 
72.0

 
203.7

 
—

 
323.2

Intercompany notes payable
 
1,232.6

 
1,158.2

 
—

 
(2,390.8
)
 
—

Short-term debt and current portion of long-term debt
 
0.5

 
0.1

 
17.2

 
—

 
17.8

Total current liabilities
 
1,285.1

 
1,532.3

 
471.1

 
(2,390.8
)
 
897.7

Long-term debt
 
1,340.2

 
149.8

 
8.2

 
—

 
1,498.2

Intercompany notes payable
 
—

 
200.0

 
—

 
(200.0
)
 
—

Accrued postretirement benefits
 
—

 
153.0

 
262.8

 
—

 
415.8

Pension liabilities
 
675.5

 
6.0

 
57.8

 
—

 
739.3

Deferred income taxes
 
143.1

 
—

 
—

 
—

 
143.1

Other long-term liabilities
 
77.7

 
22.5

 
56.0

 
—

 
156.2

Total liabilities
 
3,521.6

 
2,063.6

 
855.9

 
(2,590.8
)
 
3,850.3

Redeemable noncontrolling interest
 
—

 
—

 
12.1

 
—

 
12.1

Total stockholders’ equity
 
2,709.3

 
297.1

 
5,890.0

 
(6,187.1
)
 
2,709.3

Total liabilities and stockholders’ equity
 
$
6,230.9

 
$
2,360.7

 
$
6,758.0

 
$
(8,777.9
)
 
$
6,571.7



Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Operations
For the year ended December 31, 2014
(In millions)
 
Guarantor
Parent
 
Subsidiary
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Sales
 
$
—

 
$
1,878.0

 
$
2,345.4

 
$
—

 
$
4,223.4

Cost of sales
 
45.3

 
1,874.8

 
1,924.7

 
—

 
3,844.8

Selling and administrative expenses
 
103.9

 
44.0

 
124.6

 
—

 
272.5

Income (loss) before interest, other income and income taxes
 
(149.2
)
 
(40.8
)
 
296.1

 
—

 
106.1

Interest income (expense), net
 
(111.0
)
 
(44.9
)
 
47.2

 
—

 
(108.7
)
Other income (expense) including equity in income of unconsolidated subsidiaries
 
261.7

 
1.1

 
2.9

 
(261.6
)
 
4.1

Income (loss) from continuing operations before income taxes
 
1.5

 
(84.6
)
 
346.2

 
(261.6
)
 
1.5

Income tax provision (benefit)
 
(8.7
)
 
(29.3
)
 
116.7

 
(87.4
)
 
(8.7
)
Income (loss) from continuing operations
 
10.2

 
(55.3
)
 
229.5

 
(174.2
)
 
10.2

Income (loss) from discontinued operations, net of tax
 
(0.6
)
 
—

 
(0.6
)
 
0.6

 
(0.6
)
Net income (loss)
 
9.6

 
(55.3
)
 
228.9

 
(173.6
)
 
9.6

Less: Net income attributable to noncontrolling interest
 
—

 
—

 
12.2

 
—

 
12.2

Net income (loss) attributable to ATI
 
$
9.6

 
$
(55.3
)
 
$
216.7

 
$
(173.6
)
 
$
(2.6
)

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Comprehensive Income
For the year ended December 31, 2014
(In millions)
 
Guarantor
Parent
 
Subsidiary
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
 
$
9.6

 
$
(55.3
)
 
$
228.9

 
$
(173.6
)
 
$
9.6

Other comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
Currency translation adjustment arising during the period
 
(33.6
)
 
—

 
(33.6
)
 
33.6

 
(33.6
)
Net derivative gain on hedge transactions
 
25.9

 
—

 
—

 
—

 
25.9

Pension and postretirement benefits
 
(212.6
)
 
1.8

 
(28.4
)
 
26.6

 
(212.6
)
Other comprehensive income (loss), net of tax
 
(220.3
)
 
1.8

 
(62.0
)
 
60.2

 
(220.3
)
Comprehensive income (loss)
 
(210.7
)
 
(53.5
)
 
166.9

 
(113.4
)
 
(210.7
)
Less: Comprehensive income attributable to noncontrolling interest
 
—

 
—

 
10.1

 
—

 
10.1

Comprehensive income (loss) attributable to ATI
 
$
(210.7
)
 
$
(53.5
)
 
$
156.8

 
$
(113.4
)
 
$
(220.8
)

Condensed Statements of Cash Flows
For the year ended December 31, 2014
(In millions)
 
Guarantor
Parent
 
Subsidiary
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows provided by (used in) operating activities
 
$
(66.9
)
 
$
(313.8
)
 
$
436.6

 
$
—

 
$
55.9

Investing Activities:
 
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
 
(0.1
)
 
(170.8
)
 
(54.8
)
 
—

 
(225.7
)
Net receipts (payments) on intercompany activity
 
—

 
—

 
(1,027.7
)
 
1,027.7

 
—

Purchases of businesses, net of cash acquired
 
—

 
—

 
(92.9
)
 
—

 
(92.9
)
Asset disposals and other
 
—

 
1.7

 
0.7

 
—

 
2.4

Cash flows provided by (used in) investing activities
 
(0.1
)
 
(169.1
)
 
(1,174.7
)
 
1,027.7

 
(316.2
)
Financing Activities:
 
 
 
 
 
 
 
 
 
 
Payments on long-term debt and capital leases
 
(397.9
)
 
(0.1
)
 
(16.9
)
 
—

 
(414.9
)
Net receipts (payments) on intercompany acivity
 
544.4

 
483.3

 
—

 
(1,027.7
)
 
—

Dividends paid to stockholders
 
(77.1
)
 
—

 
—

 
—

 
(77.1
)
Other
 
(3.8
)
 
—

 
(1.2
)
 
—

 
(5.0
)
Cash flows provided by (used in) financing activities
 
65.6

 
483.2

 
(18.1
)
 
(1,027.7
)
 
(497.0
)
Increase (decrease) in cash and cash equivalents
 
$
(1.4
)
 
$
0.3

 
$
(756.2
)
 
$
—

 
$
(757.3
)


Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Operations
For the year ended December 31, 2013
(In millions)
 
Guarantor
Parent
 
Subsidiary
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Sales
 
$
—

 
$
1,769.4

 
$
2,274.1

 
$
—

 
$
4,043.5

Cost of sales
 
75.2

 
1,748.8

 
1,966.9

 
—

 
3,790.9

Selling and administrative expenses
 
124.3

 
34.9

 
117.2

 
—

 
276.4

Restructuring charges
 
1.1

 
15.7

 
50.7

 
—

 
67.5

Income (loss) before interest, other income and income taxes
 
(200.6
)
 
(30.0
)
 
139.3

 
—

 
(91.3
)
Interest income (expense), net
 
(63.4
)
 
(37.2
)
 
35.4

 
—

 
(65.2
)
Other income (expense) including equity in income of unconsolidated subsidiaries
 
109.2

 
0.9

 
0.8

 
(109.2
)
 
1.7

Income (loss) from continuing operations, before income taxes
 
(154.8
)
 
(66.3
)
 
175.5

 
(109.2
)
 
(154.8
)
Income tax provision (benefit)
 
(63.6
)
 
(20.0
)
 
40.4

 
(20.4
)
 
(63.6
)
Income (loss) from continuing operations
 
(91.2
)
 
(46.3
)
 
135.1

 
(88.8
)
 
(91.2
)
Income (loss) from discontinued operations, net of tax
 
252.8

 
—

 
252.8

 
(252.8
)
 
252.8

Net income (loss)
 
161.6

 
(46.3
)
 
387.9

 
(341.6
)
 
161.6

Less: Net income attributable to noncontrolling interest
 
—

 
—

 
7.6

 
—

 
7.6

Net income (loss) attributable to ATI
 
$
161.6

 
$
(46.3
)
 
$
380.3

 
$
(341.6
)
 
$
154.0


Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Comprehensive Income
For the year ended December 31, 2013
(In millions)
 
Guarantor
Parent
 
Subsidiary
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net income (loss)
 
$
161.6

 
$
(46.3
)
 
$
387.9

 
$
(341.6
)
 
$
161.6

Other comprehensive income (loss)
 
 
 
 
 
 
 
 
 
 
Currency translation adjustment arising during the period
 
15.3

 
—

 
15.3

 
(15.3
)
 
15.3

Unrealized holding gain (loss) on securities
 
0.1

 
—

 
0.1

 
(0.1
)
 
0.1

Net derivative loss on hedge transactions
 
(6.9
)
 
—

 
—

 
—

 
(6.9
)
Pension and postretirement benefits
 
311.1

 
22.0

 
27.6

 
(49.6
)
 
311.1

Other comprehensive income (loss), net of tax
 
319.6

 
22.0

 
43.0

 
(65.0
)
 
319.6

Comprehensive income (loss)
 
481.2

 
(24.3
)
 
430.9

 
(406.6
)
 
481.2

Less: Comprehensive income attributable to noncontrolling interest
 
—

 
—

 
11.0

 
—

 
11.0

Comprehensive income (loss) attributable to ATI
 
$
481.2

 
$
(24.3
)
 
$
419.9

 
$
(406.6
)
 
$
470.2



Condensed Statements of Cash Flows
For the year ended December 31, 2013
(In millions)
 
Guarantor
Parent
 
Subsidiary
 
Non-guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows provided by (used in) operating activities
 
$
(41.1
)
 
$
(50.4
)
 
$
484.2

 
$
(24.3
)
 
$
368.4

Investing Activities:
 
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
 
(0.2
)
 
(564.8
)
 
(47.7
)
 
—

 
(612.7
)
Net receipts (payments) on intercompany activity
 
—

 
—

 
(248.8
)
 
248.8

 
—

Proceeds from sale of business, net of transaction costs
 
(7.9
)
 
—

 
608.8

 
—

 
600.9

Asset disposals and other
 
—

 
0.2

 
0.6

 
—

 
0.8

Cash flows provided by (used in) investing activities
 
(8.1
)
 
(564.6
)
 
312.9

 
248.8

 
(11.0
)
Financing Activities:
 
 
 
 
 
 
 
 
 
 
Borrowings on long-term debt
 
500.0

 
—

 
—

 
—

 
500.0

Net receipts (payments) on intercompany activity
 
(366.7
)
 
615.5

 
—

 
(248.8
)
 
—

Dividends paid to stockholders
 
(76.9
)
 
—

 
(24.3
)
 
24.3

 
(76.9
)
Other
 
(9.1
)
 
(0.1
)
 
(49.1
)
 
—

 
(58.3
)
Cash flows provided by (used in) financing activities
 
47.3

 
615.4

 
(73.4
)
 
(224.5
)
 
364.8

Increase (decrease) in cash and cash equivalents
 
$
(1.9
)
 
$
0.4

 
$
723.7

 
$
—

 
$
722.2