XML 29 R19.htm IDEA: XBRL DOCUMENT v3.21.1
Business Segments
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company operates in two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). In the fourth quarter 2020, the Company changed its segment performance measure from segment operating profit to segment EBITDA, based on internal reporting changes. Prior period results are presented using the new performance measure. The measure of segment EBITDA excludes all effects of LIFO inventory accounting and any related changes in net realizable value inventory reserves which offset the Company’s aggregate net debit LIFO valuation balance, income taxes, depreciation and amortization, corporate expenses, net interest expense, closed operations and other income (expense), charges for goodwill and asset impairments, restructuring and other charges, debt extinguishment charges and non-operating gains or losses. Management believes segment EBITDA, as defined, provides an appropriate measure of controllable operating results at the business segment level. Following is certain financial information with respect to the Company’s business segments for the periods indicated (in millions):
Three months ended March 31,
 20212020
Total sales:
High Performance Materials & Components$265.2 $448.5 
Advanced Alloys & Solutions476.0 587.6 
741.2 1,036.1 
Intersegment sales:
High Performance Materials & Components24.3 28.2 
Advanced Alloys & Solutions24.4 52.4 
48.7 80.6 
Sales to external customers:
High Performance Materials & Components240.9 420.3 
Advanced Alloys & Solutions451.6 535.2 
$692.5 $955.5 
Three months ended March 31,
 20212020
EBITDA:
High Performance Materials & Components$24.6 $76.6 
Advanced Alloys & Solutions49.7 41.1 
Total segment EBITDA74.3 117.7 
LIFO and net realizable value reserves— — 
Corporate expenses(12.2)(12.3)
Closed operations and other income (expense)0.5 (6.3)
Total ATI Adjusted EBITDA62.6 99.1 
Depreciation & amortization (a)(36.1)(37.3)
Interest expense, net(23.4)(21.9)
Restructuring and other charges — (8.0)
Gain on asset sales— 2.5 
Income before income taxes$3.1 $34.4 

(a) The following is depreciation & amortization by each business segment:
Three months ended March 31,
20212020
High Performance Materials & Components$19.6 $19.5 
Advanced Alloys & Solutions15.5 17.0 
Other1.0 0.8 
36.1 37.3 

Closed operations and other income in the first quarter 2021 compared to expense in the first quarter of 2020 reflects lower costs at closed facilities, including retirement benefit expense, insurance and legal costs, and real estate and other facility costs, and changes in foreign currency remeasurement impacts primarily related to ATI’s European Treasury operation.

Restructuring and other charges for the first quarter of 2020 are comprised of severance obligations for the reduction of approximately 90 positions for a voluntary retirement incentive program for eligible salaried employees.

The $2.5 million gain on asset sales for the first quarter 2020 consists of a gain on the sale of certain oil and gas rights (see Note 6).

The Company’s collective bargaining agreement (CBA) with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied & Industrial Service Workers International Union, AFL-CIO, CLC (USW) involving approximately 1,100 active full-time represented employees located primarily within the AA&S segment operations, as well as a number of inactive employees, expired on February 28, 2021. USW-represented employees continued to work under the terms of the expired CBA until March 30, 2021 when they engaged in a strike, which remains ongoing. ATI continues to negotiate in good faith with the USW in an attempt to reach a new labor agreement.