Revenue from Contracts with Customers

3 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregation of Revenue

The Company operates in two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). Revenue is disaggregated within these two business segments by diversified global markets, primary geographical markets and diversified products. Comparative information of the Company’s overall revenues (in millions) by global and geographical markets for the first quarters ended March 31, 2021 and 2020 were as follows:

(in millions)	First quarter ended
	March 31, 2021						March 31, 2020
	HPMC		AA&S		Total		HPMC		AA&S		Total
Diversified Global Markets:
Aerospace & Defense	$	179.8	$	74.4	$	254.2	$	358.8	$	133.7	$	492.5
Energy*	30.5		118.6		149.1		24.1		146.5		170.6
Automotive	2.0		89.5		91.5		2.0		74.5		76.5
Electronics	0.3		55.3		55.6		0.3		32.9		33.2
Construction/Mining	5.1		37.4		42.5		5.3		38.3		43.6
Food Equipment & Appliances	—		35.4		35.4		—		50.4		50.4
Medical	11.2		17.8		29.0		17.0		21.6		38.6
Other	12.0		23.2		35.2		12.8		37.3		50.1
Total	$	240.9	$	451.6	$	692.5	$	420.3	$	535.2	$	955.5

*Includes the oil & gas, downstream processing, and specialty energy markets.

(in millions)	First quarter ended
	March 31, 2021						March 31, 2020
	HPMC		AA&S		Total		HPMC		AA&S		Total
Primary Geographical Market:
United States	$	128.3	$	271.6	$	399.9	$	227.3	$	378.8	$	606.1
Asia	20.1		122.6		142.7		25.1		94.2		119.3
Europe	79.1		34.0		113.1		133.5		37.6		171.1
Canada	8.2		9.1		17.3		11.6		10.4		22.0
South America, Middle East and other	5.2		14.3		19.5		22.8		14.2		37.0
Total	$	240.9	$	451.6	$	692.5	$	420.3	$	535.2	$	955.5

Comparative information of the Company’s major high-value and standard products based on their percentages of sales is included in the following table. In conjunction with the Company’s announced ongoing exit of standard stainless products, ATI reclassified certain items as High-Value Products within AA&S segment results. Prior period information reflects these reclassifications. Hot-Rolling and Processing Facility conversion service sales in the AA&S segment are excluded from this presentation.

	First quarter ended
	March 31, 2021						March 31, 2020
	HPMC		AA&S		Total		HPMC		AA&S		Total
Diversified Products and Services:
High-Value Products
Nickel-based alloys and specialty alloys	36	%	28	%	31	%	40	%	31	%	35	%
Precision rolled strip products	—	%	31	%	20	%	—	%	22	%	12	%
Precision forgings, castings and components	43	%	—	%	15	%	35	%	—	%	16	%
Titanium and titanium-based alloys	21	%	7	%	12	%	25	%	11	%	18	%
Zirconium and related alloys	—	%	15	%	10	%	—	%	13	%	7	%
Total High-Value Products	100	%	81	%	88	%	100	%	77	%	88	%
Standard Products
Standard stainless products	—	%	19	%	12	%	—	%	23	%	12	%
Total	100	%	100	%	100	%	100	%	100	%	100	%

The Company maintained a backlog of confirmed orders totaling $1.5 billion and $2.1 billion at March 31, 2021 and 2020, respectively. Due to the structure of the Company’s long-term agreements, approximately 75% of this backlog at March 31, 2021 represented booked orders with performance obligations that will be satisfied within the next 12 months. The backlog does not reflect any elements of variable consideration.

Contract balances

As of March 31, 2021 and December 31, 2020, accounts receivable with customers were $428.1 million and $350.1 million, respectively. The following represents the rollforward of accounts receivable - reserve for doubtful accounts and contract assets and liabilities for the three months ended March 31, 2021 and 2020:

(in millions)
Accounts Receivable - Reserve for Doubtful Accounts	March 31, 2021		March 31, 2020
Balance as of beginning of fiscal year	$	4.3	$	4.6
Expense to increase the reserve	0.2		0.1
Write-off of uncollectible accounts	(0.3)		(0.3)
Balance as of period end	$	4.2	$	4.4

(in millions)
Contract Assets
Short-term	March 31, 2021		March 31, 2020
Balance as of beginning of fiscal year	$	38.9	$	38.5
Recognized in current year	25.7		25.1
Reclassified to accounts receivable	(19.1)		(20.2)
Impairment	—		—
Reclassification to/from contract liability	(3.5)		—
Divestiture	—		0.1
Balance as of period end	$	42.0	$	43.5
Long-term	March 31, 2021		March 31, 2020
Balance as of beginning of fiscal year	$	—	$	0.1
Recognized in current year	—		—
Reclassified to accounts receivable	—		—
Impairment	—		—
Reclassification to/from short-term	—		(0.1)
Balance as of period end	$	—	$	—

(in millions)
Contract Liabilities
Short-term	March 31, 2021		March 31, 2020
Balance as of beginning of fiscal year	$	111.8	$	78.7
Recognized in current year	57.1		71.7
Amounts in beginning balance reclassified to revenue	(43.0)		(22.1)
Current year amounts reclassified to revenue	(4.0)		(17.1)
Other	—		(0.3)
Reclassification to/from long-term and contract asset	(3.2)		3.4
Balance as of period end	$	118.7	$	114.3
Long-term	March 31, 2021		March 31, 2020
Balance as of beginning of fiscal year	$	32.0	$	25.9
Recognized in current year	24.3		7.4
Amounts in beginning balance reclassified to revenue	(0.3)		(0.2)
Current year amounts reclassified to revenue	—		—
Other	—		—
Reclassification to/from short-term	(0.3)		(3.4)
Balance as of period end	$	55.7	$	29.7

Contract costs for obtaining and fulfilling a contract were $5.3 million and $5.4 million as of March 31, 2021 and December 31, 2020, respectively, and are reported in other long-term assets on the consolidated balance sheet. Contract cost amortization expense for the three months ended March 31, 2021 and 2020 was $0.2 million and $0.3 million, respectively.