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Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2023

The components of pension and other postretirement benefit expense for the Company’s defined benefit plans included the following:


	Pension Benefits						Other Postretirement Benefits
	Fiscal Year
(In millions)	2023		2022 Revised		2021 Revised		2023		2022		2021
Service cost—benefits earned during the year	$	6.0	$	11.9	$	15.1	$	0.6	$	1.1	$	1.5
Interest cost on benefits earned in prior years	79.7		69.7		68.4		10.9		7.7		8.0
Expected return on plan assets	(84.8)		(128.2)		(136.4)		—		—		—
Amortization of prior service cost (credit)	0.3		0.4		0.6		(0.9)		(0.9)		(2.4)
Amortization of net actuarial loss	—		—		—		6.0		13.2		13.9
Recognized actuarial loss (gain)- mark to market	26.8		(100.3)		(147.2)		—		—		—
Settlement loss (gain)	41.7		0.7		—		—		—		(64.9)
Total retirement benefit expense (income)	$	69.7	$	(145.8)	$	(199.5)	$	16.6	$	21.1	$	(43.9)

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
	Fiscal Year
	2023	2022		2021		2023		2022		2021
Discount rate (a)	5.55% - 6.40%	2.95	%	2.60	%	5.45	%	2.80	%	2.45	%
Rate of increase in future compensation levels	3.00%	2.00% - 3.00%		1.00	%	—		—		—
Weighted average expected long-term rate of return on assets (a)	5.80% - 6.57%	6.43	%	6.71	%	—	%	—	%	—	%

(a) Pension expense for fiscal year 2023 was initially measured at a 5.55% discount rate and 6.57% weighted average expected long-term rate of return on assets. The U.S. qualified pension plans were remeasured using a 6.40% weighted average discount rate and 5.80% weighted average expected long-term rate of return on assets as of October 17, 2023, following the large annuity buyout of retirees.

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
	Fiscal Year
	2023		2022		2023		2022
Discount rate	5.60	%	5.55	%	5.40	%	5.45	%
Rate of increase in future compensation levels	3.00	%	3.00	%	—		—

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, 2023 and January 1, 2023 was as follows:


	Pension Benefits				Other Postretirement Benefits
	Fiscal Year
(In millions)	2023		2022		2023		2022
Change in benefit obligations:
Benefit obligation at beginning of fiscal year	$	1,818.3	$	2,517.0	$	212.7	$	287.3
Service cost	6.0		11.9		0.6		1.1
Interest cost	79.7		69.7		10.9		7.7
Benefits paid	(153.9)		(155.6)		(26.4)		(29.7)
Subsidy received	—		—		—		0.3
Divestiture	—		(75.8)		—		—
Effect of currency rates	—		(3.2)		—		—
Net actuarial (gains) losses – discount rate change	(95.8)		(556.8)		0.7		(48.2)
– other	(5.3)		11.1		3.1		(5.8)

Plan settlement	(1,350.6)		—		—		—

Benefit obligation at end of fiscal year	$	298.4	$	1,818.3	$	201.6	$	212.7

Schedule of changes in fair value of plan assets


	Pension Benefits				Other Postretirement Benefits
	Fiscal Year
(In millions)	2023		2022		2023		2022
Change in plan assets:
Fair value of plan assets at beginning of fiscal year	$	1,599.5	$	2,120.9	$	—	$	—
Actual returns on plan assets and plan expenses	(83.9)		(317.0)		—		—
Employer contributions	278.0		57.4		—		—
Divestiture	—		(101.8)		—		—
Effect of currency rates	—		(4.4)		—		—
Plan settlement	(1,350.6)		—		—		—
Benefits paid	(153.9)		(155.6)		—		—
Fair value of plan assets at end of fiscal year	$	289.1	$	1,599.5	$	—	$	—

Schedule of amounts recognized in balance sheet


Assets (liabilities) recognized in the consolidated balance sheets:
	Pension Benefits				Other Postretirement Benefits
	Fiscal Year
	2023		2022		2023		2022
Current assets	$	2.4	$	—	$	—	$	—
Noncurrent assets	33.6		12.5		—		—
Current liabilities	(5.6)		(5.7)		(26.4)		(27.8)
Noncurrent liabilities	(39.7)		(225.6)		(175.2)		(184.9)
Total amount recognized	$	(9.3)	$	(218.8)	$	(201.6)	$	(212.7)

Schedule of amounts recognized in other comprehensive income

Changes to accumulated other comprehensive loss related to pension and other postretirement benefit plans in fiscal years 2023 and 2022 were as follows:


	Pension Benefits				Other Postretirement Benefits
	Fiscal Year
(In millions)	2023		2022 Revised		2023		2022
Beginning of year accumulated other comprehensive loss	$	(8.8)	$	(9.9)	$	(55.8)	$	(121.2)
Amortization of net actuarial loss	—		—		6.0		13.2
Amortization of prior service cost (credit)	0.3		0.4		(0.9)		(0.9)
Settlement loss	1.1		0.7		—		—
Remeasurements	—		—		(3.8)		53.1
End of year accumulated other comprehensive loss	$	(7.4)	$	(8.8)	$	(54.5)	$	(55.8)
Net change in accumulated other comprehensive loss	$	1.4	$	1.1	$	1.3	$	65.4

Schedule of net periodic benefit cost not yet recognized

Amounts included in accumulated other comprehensive loss at December 31, 2023 and January 1, 2023 were as follows:


	Pension Benefits				Other Postretirement Benefits
	Fiscal Year
(In millions)	2023		2022 Revised		2023		2022
Prior service (cost) credit	$	(7.4)	$	(8.8)	$	1.7	$	2.5
Net actuarial loss	—		—		(56.2)		(58.3)
Accumulated other comprehensive loss	(7.4)		(8.8)		(54.5)		(55.8)
Deferred tax effect	1.9		2.1		27.5		27.8
Accumulated other comprehensive loss, net of tax	$	(5.5)	$	(6.7)	$	(27.0)	$	(28.0)

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 fiscal year 2024 are:


(In millions)	Pension Benefits		Other Postretirement Benefits		Total
Amortization of prior service cost (credit)	$	0.4	$	(0.9)	$	(0.5)
Amortization of net actuarial loss	—		5.3		5.3
Amortization of accumulated other comprehensive loss	$	0.4	$	4.4	$	4.8

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
	Fiscal Year
(In millions)	2023		2022
Projected benefit obligation	$	45.3	$	1,727.3
Accumulated benefit obligation	$	45.3	$	1,716.8
Fair value of plan assets	$	—	$	1,496.0

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 fiscal year 2033, 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 plan are made from pension plan assets.


(In millions)
Fiscal Year	Pension Benefits		Other Postretirement Benefits		Medicare Part D Subsidy
2024	$	12.1	$	26.5	$	—
2025	13.3		24.2		—
2026	14.6		22.3		—
2027	16.0		20.6		—
2028	17.0		18.9		—
2029-2033	96.7		71.6		—

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 13. The fair values at December 31, 2023 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	$	0.1	$	—	$	0.1	$	—	$	—
International equities	0.1		—		0.1		—		—
Fixed income and cash equivalents	130.3		8.3		122.0		—		—
Private equity	60.8		60.8		—		—		—
Alternative investments- hedge funds, real estate and other	97.8		97.8		—		—		—
Total assets	$	289.1	$	166.9	$	122.2	$	—	$	—

The fair values of the Company’s pension plan assets at January 1, 2023 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	$	363.1	$	202.6	$	160.5	$	—	$	—
International equities	299.7		284.8		14.9		—		—
Fixed income and cash equivalents	455.4		330.8		13.8		110.8		—
Private equity	224.3		224.3		—		—		—
Alternative investments- hedge funds, real estate and other	257.0		257.0		—		—		—
Total assets	$	1,599.5	$	1,299.5	$	189.2	$	110.8	$	—

Schedule of target asset allocations for pension plans

The target asset allocations for ATI Pension Plan for fiscal year 2024, by major investment category, are:


Asset category						Target asset allocation range
Equities						0% - 20%
Fixed income and cash equivalents						50% - 100%
Private equity and other						0% - 40%

Schedule of multiemployer plans

The Company’s participation in multiemployer plans for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 is reported in the following table.


		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)
		Fiscal Year			Fiscal Year
Pension Fund		2023	2022		2023		2022		2021
Steelworkers Western Independent Shops Pension Plan	90-0169564 / 001	Green	Green	N/A	$	0.7	$	0.1	$	0.1	No	2/28/2025
Boilermakers-Blacksmiths National Pension Trust	48-6168020 / 001	Red	Green	Yes	2.6		2.3		2.0		No	9/30/2026
IAM National Pension Fund	51-6031295 / 002	Red	Red	Yes	1.9		1.9		1.9		Yes	Various between 2024-2028 (4)
Total contributions					$	5.2	$	4.3	$	4.0

(1)The most recent Pension Protection Act Zone Status is based on information provided to ATI and other participating employers by each plan, as certified by the plan’s actuary. A plan in the “deep red” zone had been determined to be in “critical and declining status”, based on criteria established by the Internal Revenue Code (Code), and is in critical status (as defined by the “red” zone) and is projected to become insolvent (run out of money to pay benefits) within 15 years (or within 20 years if a special rule applies). 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. Additionally, a plan may voluntarily place itself into a rehabilitation plan.

In April 2019, the Company received notification from the IAM National Pension Fund (IAM Fund) that its’ actuary certified the IAM Fund as “endangered status” for the plan year beginning January 1, 2019, and that the IAM Fund was voluntarily placing itself in “red” zone status and implementing a rehabilitation plan. In April 2020, 2021, 2022, and 2023 the Company received notification from the IAM Fund that it was certified by its actuary as being in “red” zone status for the plan years beginning January 1, 2020, 2021 and 2022. A contribution surcharge was imposed as of June 1, 2019 in addition to the contribution rate specified in the applicable collective bargaining agreements. The contribution surcharge remains in effect, and ends when an employer begins contributing under a collective bargaining agreement that includes terms consistent with the rehabilitation plan.

In April 2019, the Company received notifications from the Boilermakers-Blacksmiths National Pension Trust (Blacksmiths Trust) that it was certified by its actuary as being in “red” zone status for the plan year beginning January 1, 2019. A rehabilitation plan was adopted for the Blacksmiths Trust, and the Company and the Blacksmiths union agreed to adopt the rehabilitation plan in 2019 prior to a contribution surcharge being imposed. In April 2020 and 2021, the funding status improved for the Blacksmiths Trust as it was certified by its actuary as being in the “yellow” zone for the plan years beginning January 1, 2020 and 2021. In April 2022, the funding status further improved to being in the “green” zone for the plan year beginning January 1, 2022. In April 2023, the Blacksmiths Trust was certified by its actuary as being in “red” zone status for the plan years beginning January 1, 2023. A rehabilitation plan has been adopted for the Blacksmiths Trust, and the Company and the Blacksmiths union agreed to adopt the rehabilitation plan in 2023 prior to a contribution surcharge being imposed.

(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” or “deep red” zones, is pending or has been implemented as of the end of the plan year that ended in 2023.

(3)The “Surcharge Imposed” column indicates whether ATI’s contribution rate for 2023 included an amount in addition to the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status” or “critical and declining 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 April 26, 2024 and July 14, 2028.