Restructuring Costs

12 Months Ended

Dec. 29, 2024

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

Note 19. Restructuring and other charges

For the fiscal year ended December 29, 2024, restructuring and other charges were $22.1 million and include $11.3 million of start-up costs, $4.6 million of charges associated with the Company’s European restructuring, $4.1 million of severance-related restructuring charges for approximately 100 employees primarily related to cost reduction actions in our domestic operation, and $2.1 million of transaction related costs. These costs were recorded in the consolidated statement of operations based on the nature of the charge, with $15.3 million recorded as cost of sales, $2.7 million recorded as selling and administrative expenses and $4.1 million as restructuring charges on the consolidated statements of operations.

For the fiscal year ended December 31, 2023, restructuring and other charges were $31.4 million and include $7.7 million of severance-related restructuring charges and $23.7 million of charges included within cost of sales on the consolidated statements of operations. The $7.7 million of severance-related restructuring charges represent severance for the involuntary reduction of approximately 110 employees primarily for the restructuring of the European operations and across ATI’s domestic operations. The $23.7 million of charges within cost of sales include $11.5 million of start-up costs, $1.9 million of costs associated with an unplanned outage at our Lockport, NY facility, and $10.3 million primarily for asset write-offs for the restructuring of our European operations and the closure of our Robinson, PA operations.

For the fiscal year ended January 1, 2023, restructuring and other charges were $23.7 million, which included a $28.5 million charge for a litigation settlement (see Note 21), partially offset by $4.8 million of restructuring credits for reductions in severance-related reserves related to approximately 110 employees based on changes in planned operating rates and revised workforce estimates.

Restructuring reserves for severance cost activity is as follows:

	Severance and Employee
	Benefit Costs
	December 29, 2024		December 31, 2023		January 1, 2023
Beginning of fiscal year balance	$	15.2	$	9.8	$	17.7
Additions/(Adjustments)	4.1		7.7		(4.8)
Divestitures	(3.5)		—		—
Payments	(6.8)		(2.3)		(3.1)
End of fiscal year balance	$	9.0	$	15.2	$	9.8

During fiscal year 2024, the Company de-recognized $3.5 million of restructuring reserves in connection with the sale of its precision rolled strip operations (see Note 6 for further explanation). All of the $9.0 million restructuring reserve balance at December 29, 2024 is recorded in other current liabilities on the December 29, 2024 consolidated balance sheet. Of the $15.2 million restructuring reserve balance at December 31, 2023, $10.9 million is recorded in other current liabilities and $4.3 million is recorded in other long-term liabilities on the December 31, 2023 consolidated balance sheet.