Supplemental Financial Statement Information - (Notes)

9 Months Ended

Sep. 30, 2023

Other Income and Expenses [Abstract]

Supplemental Financial Statement Information

Other income (expense), net for the three and nine months ended September 30, 2023 and 2022 was as follows:


(in millions)	Three months ended September 30,				Nine months ended September 30,
	2023		2022		2023		2022
Rent and royalty income	$	0.7	$	0.5	$	2.0	$	1.7
Gains from disposal of property, plant and equipment, net	—		0.1		0.3		0.3
Net equity income (loss) on joint ventures (See Note 5)	(0.7)		0.8		(1.0)		11.2
Litigation reserve	—		(19.9)		—		(28.5)
Total other income (expense), net	$	—	$	(18.5)	$	1.3	$	(15.3)

Restructuring

Restructuring charges for the third quarter ended September 30, 2023 were a credit of $0.5 million for a reduction in severance-related reserves related to approximately 10 employees based on changes in planned operating rates and revised workforce reduction estimates. Restructuring charges for the nine months ended September 30, 2023 were a charge of $2.2 million and represent severance for the involuntary reduction of approximately 40 employees across ATI’s domestic operations in conjunction with the continued transformation, partially offset by the credit in the third quarter 2023 discussed above for a reduction in severance-related reserves. Restructuring charges for the third quarter and nine months ended September 30, 2022 were a net credit of $2.6 million and $5.0 million, respectively, for a reduction in severance-related reserves related to approximately 60 and 110 employees, respectively, based on changes in planned operating rates and revised workforce reduction estimates. These amounts were presented as a restructuring credit in the consolidated statements of operations and are excluded from segment EBITDA.

Restructuring reserves for severance cost activity is as follows:


	Severance and Employee
	Benefit Costs
Balance at December 31, 2022	$	9.8
Additions, net	2.2
Payments	(1.1)
Balance at September 30, 2023	$	10.9

The $10.9 million restructuring reserve balance at September 30, 2023 includes $6.7 million recorded in other current liabilities and $4.2 million recorded in other long-term liabilities on the consolidated balance sheet.

Supplier Financing

The Company participates in supplier financing programs with two financial institutions to offer its suppliers the option for access to payment in advance of an invoice due date. Under such programs, these financial institutions provide early payment to suppliers at their request for invoices that ATI has confirmed as valid at a pre-determined discount rate commensurate with the creditworthiness of ATI. As of September 30, 2023 and December 31, 2022, the Company had $14.0 million and $23.7 million, respectively, reported in accounts payable on the consolidated balance sheets under such programs.