Selected Quarterly Financial Data

(Unaudited)



	Quarter Ended
(In millions, except per share amounts)	March 31			June 30			September 30			December 31
2017 -
Sales	$	865.9		$	880.2		$	869.1		$	909.9
Gross Profit	112.8			112.3			93.3			130.6
Net income (loss)	21.1			13.4			(119.4		)	5.2
Net income (loss) attributable to ATI	17.5			10.1			(121.2		)	1.7
Basic income (loss) attributable to ATI per common share	$	0.16		$	0.09		$	(1.12	)	$	0.01
Diluted income (loss) attributable to ATI per common share	$	0.16		$	0.09		$	(1.12	)	$	0.01
Average shares outstanding	108.8			108.9			108.9			118.6
2016 -
Sales	$	757.5		$	810.5		$	770.5		$	796.1
Gross Profit (loss)	(33.2		)	48.2			50.2			97.3
Net income (loss)	(98.1		)	(15.5		)	(527.2		)	13.7
Net income (loss) attributable to ATI	(101.2		)	(18.8		)	(530.8		)	9.9
Basic income (loss) attributable to ATI per common share	$	(0.94	)	$	(0.18	)	$	(4.95	)	$	0.09
Diluted income (loss) attributable to ATI per common share	$	(0.94	)	$	(0.18	)	$	(4.95	)	$	0.09
Average shares outstanding	109.0			108.9			108.9			108.9

Third quarter 2017 includes a $114.4 million pre-tax ($113.6 million, net of tax) non-cash goodwill impairment charge for the Company’s Cast Products business. See Note 4 for further explanation.

Fourth quarter 2017 includes a $37.0 million pre-tax and net of tax debt extinguishment charge for the full redemption of the $350 million, 9.375% Senior Notes due 2019. Fourth quarter 2017 also includes $4.1 million of tax benefits from the 2017 Tax Cuts and Jobs Act legislation. Fourth quarter 2017 shares outstanding reflect the Company's issuance of 17 million shares of common stock on November 7, 2017 (see Note 13 for further explanation).

First quarter 2016 results include a $9.0 million pre-tax ($6.7 million, net of tax) charge for severance obligations in the FRP operations, and $26.4 million pre-tax ($19.7 million, net of tax) of work stoppage and return-to-work costs primarily affecting FRP operations following the ratification of the new labor agreement for USW-represented employees. First quarter 2016 results also include $12.0 million of below-normal income tax benefits compared to those that would apply at a standard 35% tax rate.

Second quarter 2016 results include $22.4 million pre-tax ($8.4 million, net of tax) of work stoppage and return-to-work costs affecting FRP operations, and $11.4 million of above-normal income tax benefits compared to those that would apply at a standard 35% tax rate.

Third quarter 2016 results include $471.3 million pre-tax ($310.3 million, net of tax) long-lived asset impairment charges, $16.3 million pre-tax ($10.7 million, net of tax) of facility shutdown and idling costs, and $11.3 million pre-tax ($7.4 million, net of tax) of inventory valuation charges for titanium sponge. These charges primarily related to the indefinite idling of the Company’s Rowley, UT titanium sponge facility. In addition, third quarter 2016 results include a $173.1 million charge for income tax valuation allowances recorded on U.S. federal deferred tax assets.

Fourth quarter 2016 results include $15.4 million pre-tax ($10.0 million, net of tax) of facility shutdown and idling costs primarily related to the indefinite idling of the Company’s Rowley, UT titanium sponge facility, the consolidation of certain titanium manufacturing operations and the permanent closure of the Midland, PA commodity stainless steel melt and sheet finishing facility and the Bagdad, PA GOES finishing facility. In addition, fourth quarter 2016 results include $13.2 million pre-tax ($8.6 million, net of tax) of employee benefit costs associated with these facility idlings and closures as well as additional FRP severance charges for salaried workforce reductions. Fourth quarter 2016 results also include $32.4 million for above-normal income tax benefits compared to those that would apply at a standard 35% tax rate. The above-normal income tax benefit is due primarily to a $22.5 million correcting adjustment to reduce income tax valuation allowances on U.S. deferred tax assets that were established in the third quarter 2016; the correcting adjustment was not deemed material to the third quarter results.

Net of tax amounts presented above generally use the effective tax rate for the applicable quarterly period which differs from the effective tax rate for the full year. In periods with significant tax valuation allowance adjustments, net of tax amounts use a standard 35% tax rate, with separate identification by quarter of unusual income tax provision or benefit effects.