Fair Value Of Financial Instruments

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Abstract]

Fair Value Of Financial Instruments

Note ##FV. Fair Value of Financial Instruments
The estimated fair value of financial instruments at December 31, 2011 was as follows:
				Fair Value Measurements at Reporting Date Using
						Quoted Prices in		Significant
		Total		Total		Active Markets for		Observable
		Carrying		Estimated		Identical Assets		Inputs
(In millions)		Amount		Fair Value		(Level 1)		(Level 2)
Cash and cash equivalents		$	380.6	$	380.6	$	380.6	$	-
Derivative financial instruments:
	Assets		20.7		20.7		-		20.7
	Liabilities		17.1		17.1		-		17.1
Debt			1,509.3		1,791.3		1,684.5		106.8

The estimated fair value of financial instruments at December 31, 2010 was as follows:
				Fair Value Measurements at Reporting Date Using
						Quoted Prices in		Significant
		Total		Total		Active Markets for		Observable
		Carrying		Estimated		Identical Assets		Inputs
(In millions)		Amount		Fair Value		(Level 1)		(Level 2)
Cash and cash equivalents		$	432.3	$	432.3	$	432.3	$	-
Derivative financial instruments:
	Assets		20.1		20.1		-		20.1
	Liabilities		21.9		21.9		-		21.9
Debt (a)			1,063.3		1,328.4		1,284.9		43.5

(a)        Includes fair value adjustments for settled interest rate swap contracts of $0.9 million at December 31, 2010.

In accordance with accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards established three levels of a fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:

Cash and cash equivalents: Fair values were determined using Level 1 information.

Derivative financial instruments: Fair values for derivatives were measured using exchange-traded prices for the hedged items. The fair value was determined using Level 2 information, including consideration of counterparty risk and the Company's credit risk.

Short-term and long-term debt: The fair values of the Allegheny Technologies 4.25% Convertible Notes, the Allegheny Technologies 9.375% Notes, the Allegheny Technologies 5.95% Notes, the Allegheny Technologies 8.375% Notes, and the Allegheny Ludlum 6.95% debentures were determined usingLevel 1 information. The fair values of the other short-term and long-term debt were determined using Level 2 information.