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Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2018
Defined Benefit Plan [Abstract]  
Schedule of defined benefit plans
The components of pension and other postretirement benefit expense for the Company’s defined benefit plans included the following:
 
 
Pension Benefits
 
Other Postretirement Benefits
(In millions)
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Service cost—benefits earned during the year
 
$
16.4

 
$
14.1

 
$
20.6

 
$
2.5

 
$
2.4

 
$
2.6

Interest cost on benefits earned in prior years
 
104.8

 
116.7

 
125.4

 
12.7

 
14.6

 
16.0

Expected return on plan assets
 
(157.9
)
 
(146.9
)
 
(148.7
)
 
—

 
—

 
(0.1
)
Amortization of prior service cost (credit)
 
0.3

 
1.3

 
1.3

 
(2.9
)
 
(2.9
)
 
(1.7
)
Amortization of net actuarial loss
 
65.9

 
62.6

 
65.4

 
10.6

 
9.0

 
9.6

Curtailment loss
 
0.4

 
—

 
—

 
—

 
—

 
—

Termination benefits
 
—

 
—

 
1.1

 
—

 
—

 
2.3

Total retirement benefit expense
 
$
29.9

 
$
47.8

 
$
65.1

 
$
22.9

 
$
23.1

 
$
28.7
Schedule of assumptions used
Actuarial assumptions used to develop the components of defined benefit pension expense and other postretirement benefit expense were as follows:
 
 
Pension Benefits
 
Other Postretirement Benefits
 
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Discount rate (a)
 
3.85
%
 
4.45
%
 
4.65
%
 
3.80
%
 
4.35
%
 
4.05 - 4.50%

Rate of increase in future compensation levels
 
0.50 - 1.00%

 
0.50 - 1.00%

 
3.0 - 3.50%

 
—

 
—

 
—

Weighted average expected long-term rate of return on assets
 
7.75
%
 
7.75
%
 
8.00
%
 
4.0
%
 
4.0
%
 
4.0
%
(a)
Other postretirement benefits expense for 2016 was initially measured at a 4.50% discount rate. A portion of the obligation was remeasured using a 4.05% discount rate as of March 1, 2016, following a new CBA.
Schedule of assumptions used for year end valuation
Actuarial assumptions used for the valuation of defined benefit pension and other postretirement benefit obligations at the end of the respective periods were as follows:
 
 
Pension Benefits
 
Other Postretirement Benefits
 
 
2018
 
2017
 
2018
 
2017
Discount rate
 
4.40
%
 
3.85
%
 
4.35
%
 
3.80
%
Rate of increase in future compensation levels
 
0.50 - 1.00%

 
0.50 - 1.00%

 
—

 
—
Schedule of changes in projected benefit obligations
A reconciliation of the funded status for the Company’s defined benefit pension and other postretirement benefit plans at December 31, 2018 and 2017 was as follows:
 
 
Pension Benefits
 
Other Postretirement Benefits
(In millions)
 
2018
 
2017
 
2018
 
2017
Change in benefit obligations:
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
 
$
2,829.8

 
$
2,727.7

 
$
349.9

 
$
354.8

Service cost
 
16.4

 
14.1

 
2.5

 
2.4

Interest cost
 
104.8

 
116.7

 
12.7

 
14.6

Benefits paid
 
(294.5
)
 
(220.1
)
 
(36.5
)
 
(38.6
)
Subsidy paid
 
—

 
—

 
—

 
0.6

Effect of currency rates
 
(4.5
)
 
7.4

 
—

 
—

Net actuarial (gains) losses – discount rate change
 
(150.4
)
 
174.6

 
(17.8
)
 
16.6

                  – other
 
(5.7
)
 
9.4

 
48.3

 
(0.5
)
Plan curtailments
 
0.4

 
—

 
—

 
—

Plan amendments
 
1.4

 
—

 
—

 
—

Benefit obligation at end of year
 
$
2,497.7

 
$
2,829.8

 
$
359.1

 
$
349.9
Schedule of changes in fair value of plan assets
 
 
Pension Benefits
 
Other Postretirement Benefits
(In millions)
 
2018
 
2017
 
2018
 
2017
Change in plan assets:
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
$
2,129.6

 
$
1,894.6

 
$
0.6

 
$
0.7

Actual returns on plan assets and plan expenses
 
(107.2
)
 
304.1

 
(0.5
)
 
0.2

Employer contributions
 
49.3

 
143.4

 
—

 
—

Effect of currency rates
 
(5.0
)
 
7.6

 
—

 
—

Benefits paid
 
(294.5
)
 
(220.1
)
 
—

 
(0.3
)
Fair value of plan assets at end of year
 
$
1,772.2

 
$
2,129.6

 
$
0.1

 
$
0.6
Schedule of amounts recognized in balance sheet
Assets (liabilities) recognized in the consolidated balance sheets:
 
 
 
 
 
 
 
 
Pension Benefits
 
Other Postretirement Benefits
 
 
2018
 
2017
 
2018
 
2017
Noncurrent assets
 
$
9.2

 
$
2.1

 
$
—

 
$
—

Current liabilities
 
(4.7
)
 
(5.3
)
 
(40.6
)
 
(31.5
)
Noncurrent liabilities
 
(730.0
)
 
(697.0
)
 
(318.4
)
 
(317.8
)
Total amount recognized
 
$
(725.5
)
 
$
(700.2
)
 
$
(359.0
)
 
$
(349.3
)
Schedule of amounts recognized in other comprehensive income
Changes to accumulated other comprehensive loss related to pension and other postretirement benefit plans in 2018 and 2017 were as follows:
 
 
Pension Benefits
 
Other Postretirement Benefits
(In millions)
 
2018
 
2017
 
2018
 
2017
Beginning of year accumulated other comprehensive loss
 
$
(1,426.1
)
 
$
(1,462.7
)
 
$
(83.7
)
 
$
(74.4
)
Amortization of net actuarial loss
 
65.9

 
62.6

 
10.6

 
9.0

Amortization of prior service cost (credit)
 
0.3

 
1.3

 
(2.9
)
 
(2.9
)
Remeasurements
 
(110.4
)
 
(27.3
)
 
(31.0
)
 
(15.4
)
End of year accumulated other comprehensive loss
 
$
(1,470.3
)
 
$
(1,426.1
)
 
$
(107.0
)
 
$
(83.7
)
Net change in accumulated other comprehensive loss
 
$
(44.2
)
 
$
36.6

 
$
(23.3
)
 
$
(9.3
)
Schedule of net periodic benefit cost not yet recognized
Amounts included in accumulated other comprehensive loss at December 31, 2018 and 2017 were as follows:
 
 
Pension Benefits
 
Other Postretirement Benefits
(In millions)
 
2018
 
2017
 
2018
 
2017
Prior service (cost) credit
 
$
(2.1
)
 
$
(1.0
)
 
$
8.8

 
$
11.7

Net actuarial loss
 
(1,468.2
)
 
(1,425.1
)
 
(115.8
)
 
(95.4
)
Accumulated other comprehensive loss
 
(1,470.3
)
 
(1,426.1
)
 
(107.0
)
 
(83.7
)
Deferred tax effect
 
536.2

 
525.6

 
35.3

 
29.7

Accumulated other comprehensive loss, net of tax
 
$
(934.1
)
 
$
(900.5
)
 
$
(71.7
)
 
$
(54.0
)
Schedule of amounts in accumulated other comprehensive income to be recognized
Amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost in 2019 are:
(In millions)
 
Pension
Benefits
 
Other
Postretirement
Benefits
 
Total
Amortization of prior service cost (credit)
 
$
0.3

 
$
(2.9
)
 
$
(2.6
)
Amortization of net actuarial loss
 
73.7

 
13.4

 
87.1

Amortization of accumulated other comprehensive loss
 
$
74.0

 
$
10.5

 
$
84.5
Schedule of accumulated benefit obligations in excess of fair value of plan assets
Additional information for pension plans with accumulated benefit obligations and projected benefit obligations in excess of plan assets:
 
 
Pension Benefits
(In millions)
 
2018
 
2017
Projected benefit obligation
 
$
2,420.8

 
$
2,737.4

Accumulated benefit obligation
 
$
2,405.6

 
$
2,718.0

Fair value of plan assets
 
$
1,686.1

 
$
2,035.1
Schedule of expected benefit payments
The following table summarizes expected benefit payments from the Company’s various pension and other postretirement defined benefit plans through 2028, and also includes estimated Medicare Part D subsidies projected to be received during this period based on currently available information. Pension benefit payments for the U.S. qualified defined benefit pension plans and the U.K. defined benefit plan are made from pension plan assets.
(In millions)
 
Pension
Benefits
 
Other
Postretirement
Benefits
 
Medicare Part
D Subsidy
2019
 
$
186.6

 
$
40.6

 
$
0.6

2020
 
180.7

 
38.2

 
0.6

2021
 
177.9

 
35.6

 
0.6

2022
 
176.1

 
33.1

 
0.5

2023
 
173.9

 
30.8

 
0.5

2024 - 2028
 
825.0

 
123.9

 
1.9
Schedule of allocation of plan assets
The fair values of the Company’s pension plan assets are determined using net asset value (NAV) as a practical expedient, or by information categorized in the fair value hierarchy level based on the inputs used to determine fair value, as further discussed in Note 11. The fair values at December 31, 2018 were as follows:
(In millions)
 
 
 
 
 
Quoted Prices in
Active Markets for
Identical Assets
 
Significant
Observable Inputs
 
Significant
Unobservable  Inputs
Asset category
 
Total
 
NAV
 
(Level 1)
 
(Level 2)
 
(Level 3)
Equity securities:
 
 
 
 
 
 
 
 
 
 
U.S. equities
 
$
362.9

 
$
219.9

 
$
143.0

 
$
—

 
$
—

International equities
 
377.4

 
335.7

 
41.7

 
—

 
—

Debt securities and cash:
 
 
 
 
 
 
 
 
 
 
Fixed income and cash equivalents
 
493.7

 
116.9

 
6.3

 
370.5

 
—

Floating rate
 
90.1

 
68.9

 
21.2

 
—

 
—

Private equity
 
137.1

 
137.1

 
—

 
—

 
—

Hedge funds
 
258.3

 
258.3

 
—

 
—

 
—

Real estate and other
 
52.7

 
52.7

 
—

 
—

 
—

Total assets
 
$
1,772.2

 
$
1,189.5

 
$
212.2

 
$
370.5

 
$
—


The fair values of the Company’s pension plan assets at December 31, 2017 were as follows:
(In millions)
 
 
 
 
 
Quoted Prices in
Active Markets for
Identical Assets
 
Significant
Observable Inputs
 
Significant
Unobservable  Inputs
Asset category
 
Total
 
NAV
 
(Level 1)
 
(Level 2)
 
(Level 3)
Equity securities:
 
 
 
 
 
 
 
 
 
 
ATI common stock
 
$
71.3

 
$
—

 
$
71.3

 
$
—

 
$
—

Other U.S. equities
 
416.0

 
267.7

 
148.3

 
—

 
—

International equities
 
432.5

 
385.9

 
46.6

 
—

 
—

Debt securities and cash:
 
 
 
 
 
 
 
 
 
 
Fixed income and cash equivalents
 
501.1

 
92.6

 
10.0

 
398.5

 
—

Floating rate
 
169.9

 
122.6

 
47.3

 
—

 
—

Private equity
 
137.5

 
137.5

 
—

 
—

 
—

Hedge funds
 
307.4

 
307.4

 
—

 
—

 
—

Real estate and other
 
93.9

 
90.7

 
—

 
3.2

 
—

Total assets
 
$
2,129.6

 
$
1,404.4

 
$
323.5

 
$
401.7

 
$
—
Schedule of target asset allocations for pension plans
The target asset allocations for ATI Pension Plan for 2019, by major investment category, are:
Asset category
 
Target asset allocation range
Global equity
 
30% - 60%
Debt securities and cash
 
15% - 40%
Private equity
 
0% - 15%
Hedge funds
 
10% - 20%
Real estate and other
 
0% - 10%
Schedule of multiemployer plans
The Company’s participation in multiemployer plans for the years ended December 31, 2018, 2017 and 2016 is reported in the following table. The Company’s contributions to the Steelworkers Western Independent Shops Pension Plan exceed 5% of this plan’s total contributions for the plan year ended September 30, 2017, which is the most recent information available from the Plan Administrator.
 
 
 
 
Pension
Protection Act
Zone Status (1)
 
FIP / RP Status
Pending /
Implemented (2)
 
in millions
 
 
 
Expiration Dates
of Collective
Bargaining
Agreements
 
 
EIN / Pension
Plan Number
 
 
 
Company Contributions
 
Surcharge
Imposed (3)
 
Pension Fund
 
 
2018
 
2017
 
 
2018
 
2017
 
2016
 
 
Steelworkers Western Independent Shops Pension Plan
 
90-0169564
/ 001
 
Green
 
Green
 
N/A
 
$
0.8

 
$
0.6

 
$
1.2

 
No
 
2/29/2020
Boilermakers-Blacksmiths National Pension Trust
 
48-6168020
/ 001
 
Yellow
 
Yellow
 
Yes
 
2.5

 
2.2

 
1.8

 
No
 
9/30/2026
IAM National Pension Fund
 
51-6031295
/ 002
 
Green
 
Green
 
N/A
 
2.1

 
1.7

 
1.6

 
No
 
Various between 2019-2022 (4)
Total contributions
 
 
 
 
 
 
 
 
 
$
5.4

 
$
4.5

 
$
4.6

 
 
 
 
(1)
The most recent Pension Protection Act Zone Status available for ATI’s fiscal years 2018 and 2017 is for plan years ending in calendar years 2017 and 2016, respectively. The zone status is based on information provided to ATI and other participating employers by each plan and is certified by the plan’s actuary. A plan in the “red” zone had been determined to be in “critical status”, based on criteria established by the Code, and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Code, and is generally less than 80% funded. A plan in the “green” zone has been determined to be neither in “critical status” nor in “endangered status”, and is generally at least 80% funded. In February 2019, the Company received notification from the Boilermakers-Blacksmiths National Pension Trust that it is expected to be certified by its actuary as being in “red” zone status in the plan year beginning January 1, 2019.
(2)
The “FIP / RP Status Pending / Implemented” column indicates whether a Funding Improvement Plan, as required under the Code by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2018.
(3)
The “Surcharge Imposed” column indicates whether ATI’s contribution rate for 2018 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status”, in accordance with the requirements of the Code.
(4)
The Company is party to five separate bargaining agreements that require contributions to this plan. Expiration dates of these collective bargaining agreements range between July 14, 2019 and April 25, 2022.