Financial Information for Subsidiary and Guarantor Parent

9 Months Ended

Sep. 30, 2012

Schedule Of Condensed Financial Statements Disclosure [Abstract]

Financial Information for Subsidiary and Guarantor Parent [Text Block]

Note 11. Financial Information for Subsidiary and Guarantor Parent

The payment obligations under the $150 million 6.95% debentures due 2025 issued by Allegheny Ludlum, LLC (formerly known as Allegheny Ludlum Corporation) (the “Subsidiary”) are fully and unconditionally guaranteed by Allegheny Technologies Incorporated (the “Guarantor Parent”). In accordance with positions established by the Securities and Exchange Commission, the following financial information sets forth separately financial information with respect to the Subsidiary, the non-guarantor subsidiaries and the Guarantor Parent. The principal elimination entries eliminate investments in subsidiaries and certain intercompany balances and transactions. Investments in subsidiaries, which are eliminated in consolidation, are included in other assets on the consolidated balance sheets.

Allegheny Technologies is the plan sponsor for the U.S. qualified defined benefit pension plan (the “Plan”) which covers certain current and former employees of the Subsidiary and the non-guarantor subsidiaries. As a result, the balance sheets presented for the Subsidiary and the non-guarantor subsidiaries do not include any Plan assets or liabilities, or the related deferred taxes. The Plan assets, liabilities and related deferred taxes and pension income or expense are recognized by the Guarantor Parent. Management and royalty fees charged to the Subsidiary and to the non-guarantor subsidiaries by the Guarantor Parent have been excluded solely for purposes of this presentation.

Cash flows related to intercompany activity between the Guarantor Parent, the Subsidiary, and the non-guarantor subsidiaries are presented as financing activities on the condensed statements of cash flows.

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Balance Sheets
September 30, 2012
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Assets:
Cash and cash equivalents		$	3.1	$	24.6	$	253.3	$	-	$	281.0
Accounts receivable, net			0.4		218.7		466.6		-		685.7
Inventories, net			-		256.8		1,203.4		-		1,460.2
Prepaid expenses and other current
	assets		0.7		9.0		48.2		-		57.9
Total current assets			4.2		509.1		1,971.5		-		2,484.8
Property, plant and equipment, net			2.9		777.3		1,702.1		-		2,482.3
Cost in excess of net assets acquired			-		112.1		628.2		-		740.3
Investments in subsidiaries and
	other assets		5,681.0		206.5		692.9		(6,209.0)		371.4
Total assets		$	5,688.1	$	1,605.0	$	4,994.7	$	(6,209.0)	$	6,078.8
Liabilities and stockholders’ equity:
Accounts payable		$	5.6	$	192.1	$	211.6	$	-	$	409.3
Accrued liabilities			1,203.2		358.3		473.5		(1,698.3)		336.7
Deferred income taxes			12.9		-		-		-		12.9
Short-term debt and current portion
	of long-term debt		-		0.1		16.7		-		16.8
Total current liabilities			1,221.7		550.5		701.8		(1,698.3)		775.7
Long-term debt			1,252.5		350.6		59.4		(200.0)		1,462.5
Accrued postretirement benefits			-		200.2		269.4		-		469.6
Pension liabilities			423.0		5.3		59.7		-		488.0
Deferred income taxes			21.8		-		-		-		21.8
Other long-term liabilities			24.2		20.2		71.9		-		116.3
Total liabilities			2,943.2		1,126.8		1,162.2		(1,898.3)		3,333.9
Total stockholders’ equity			2,744.9		478.2		3,832.5		(4,310.7)		2,744.9
Total liabilities and stockholders’
	equity	$	5,688.1	$	1,605.0	$	4,994.7	$	(6,209.0)	$	6,078.8

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Income and Comprehensive Income
For the three months ended September 30, 2012
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Sales		$	-	$	483.6	$	736.9	$	-	$	1,220.5
Cost of sales			15.1		453.8		588.8		-		1,057.7
Selling and administrative expenses			34.9		10.8		46.0		-		91.7
Income (loss) before interest, other
	income and income taxes		(50.0)		19.0		102.1		-		71.1
Interest expense, net			(14.7)		(2.7)		0.2		-		(17.2)
Other income including
	equity in income of unconsolidated
	subsidiaries		118.8		(5.2)		7.8		(121.2)		0.2
Income before income tax provision			54.1		11.1		110.1		(121.2)		54.1
Income tax provision			16.8		4.6		35.9		(40.5)		16.8
Net income			37.3		6.5		74.2		(80.7)		37.3
Less: Net income attributable to
	noncontrolling interests		2.0		-		2.0		(2.0)		2.0
Net income attributable to ATI		$	35.3	$	6.5	$	72.2	$	(78.7)	$	35.3
Comprehensive income attributable to ATI		$	71.8	$	6.3	$	87.3	$	(93.6)	$	71.8

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Income and Comprehensive Income
For the nine months ended September 30, 2012
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Sales		$	-	$	1,614.2	$	2,316.2	$	-	$	3,930.4
Cost of sales			41.8		1,488.7		1,831.2		-		3,361.7
Selling and administrative expenses			112.9		33.2		139.7		-		285.8
Income (loss) before interest, other
	income and income taxes		(154.7)		92.3		345.3		-		282.9
Interest expense, net			(47.3)		(7.9)		(0.5)		-		(55.7)
Other income including
	equity in income of unconsolidated
	subsidiaries		429.9		(16.1)		24.3		(437.4)		0.7
Income before income tax provision			227.9		68.3		369.1		(437.4)		227.9
Income tax provision			73.6		26.9		125.0		(151.9)		73.6
Net income			154.3		41.4		244.1		(285.5)		154.3
Less: Net income attributable to
	noncontrolling interests		6.4		-		6.4		(6.4)		6.4
Net income attributable to ATI		$	147.9	$	41.4	$	237.7	$	(279.1)	$	147.9
Comprehensive income attributable to ATI		$	213.6	$	40.6	$	249.2	$	(289.8)	$	213.6

Condensed Statements of Cash Flows
For the nine months ended September 30, 2012
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Cash flows provided by (used in)
	operating activities	$	(21.7)	$	(38.6)	$	310.3	$	(4.2)	$	245.8
Cash flows used in investing activities			(1.0)		(192.3)		(50.8)		-		(244.1)
Cash flows provided by (used in)
	financing activities		25.1		125.8		(256.4)		4.2		(101.3)
Increase (decrease) in cash
	and cash equivalents	$	2.4	$	(105.1)	$	3.1	$	-	$	(99.6)

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Balance Sheets
December 31, 2011
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Assets:
Cash and cash equivalents		$	0.8	$	129.7	$	250.1	$	-	$	380.6
Accounts receivable, net			0.1		220.6		488.4		-		709.1
Inventories, net			-		299.0		1,085.3		-		1,384.3
Prepaid expenses and other current
	assets		10.5		20.0		65.0		-		95.5
Total current assets			11.4		669.3		1,888.8		-		2,569.5
Property, plant and equipment, net			3.0		614.9		1,750.9		-		2,368.8
Cost in excess of net assets acquired			-		112.1		625.6		-		737.7
Investments in subsidiaries and
	other assets		5,287.3		1,579.0		996.6		(7,492.0)		370.9
Total assets		$	5,301.7	$	2,975.3	$	5,261.9	$	(7,492.0)	$	6,046.9
Liabilities and stockholders’ equity:
Accounts payable		$	4.1	$	222.5	$	264.1	$	-	$	490.7
Accrued liabilities			961.8		66.7		736.2		(1,444.4)		320.3
Deferred income taxes			23.5		-		-		-		23.5
Short-term debt and current portion
	of long-term debt		-		0.1		27.2		-		27.3
Total current liabilities			989.4		289.3		1,027.5		(1,444.4)		861.8
Long-term debt			1,252.5		350.7		78.8		(200.0)		1,482.0
Accrued postretirement benefits			-		215.5		272.6		-		488.1
Pension liabilities			441.6		5.7		61.6		-		508.9
Deferred income taxes			9.8		-		-		-		9.8
Other long-term liabilities			36.8		17.2		70.7		-		124.7
Total liabilities			2,730.1		878.4		1,511.2		(1,644.4)		3,475.3
Total stockholders’ equity			2,571.6		2,096.9		3,750.7		(5,847.6)		2,571.6
Total liabilities and stockholders’
	equity	$	5,301.7	$	2,975.3	$	5,261.9	$	(7,492.0)	$	6,046.9

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Income and Comprehensive Income
For the three months ended September 30, 2011
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Sales		$	-	$	596.0	$	756.6	$	-	$	1,352.6
Cost of sales			5.2		525.9		605.7		-		1,136.8
Selling and administrative expenses			40.2		15.8		40.7		-		96.7
Income (loss) before interest, other
	income and income taxes		(45.4)		54.3		110.2		-		119.1
Interest income (expense), net			(20.5)		(2.7)		(0.2)		-		(23.4)
Other income including
	equity in income of unconsolidated
	subsidiaries		161.3		1.1		0.8		(163.5)		(0.3)
Income before income tax provision			95.4		52.7		110.8		(163.5)		95.4
Income tax provision			31.2		21.2		39.8		(61.0)		31.2
Net income			64.2		31.5		71.0		(102.5)		64.2
Less: Net income attributable to
	noncontrolling interests		1.9		-		1.9		(1.9)		1.9
Net income attributable to ATI		$	62.3	$	31.5	$	69.1	$	(100.6)	$	62.3
Comprehensive income attributable to ATI		$	64.6	$	28.1	$	53.0	$	(81.1)	$	64.6

Allegheny Technologies Incorporated
Financial Information for Subsidiary and Guarantor Parent
Statements of Income and Comprehensive Income
For the nine months ended September 30, 2011
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Sales		$	-	$	1,851.0	$	2,080.6	$	-	$	3,931.6
Cost of sales			20.6		1,641.6		1,625.2		-		3,287.4
Selling and administrative expenses			130.5		35.4		118.8		-		284.7
Income (loss) before interest, other
	income and income taxes		(151.1)		174.0		336.6		-		359.5
Interest expense, net			(62.0)		(7.8)		(0.3)		-		(70.1)
Other income including
	equity in income of unconsolidated
	subsidiaries		502.6		2.9		0.9		(506.3)		0.1
Income before income tax provision			289.5		169.1		337.2		(506.3)		289.5
Income tax provision			100.6		65.3		121.3		(186.6)		100.6
Net income			188.9		103.8		215.9		(319.7)		188.9
Less: Net income attributable to
	noncontrolling interests		6.3		-		6.3		(6.3)		6.3
Net income attributable to ATI		$	182.6	$	103.8	$	209.6	$	(313.4)	$	182.6
Comprehensive income attributable to ATI		$	210.4	$	98.8	$	209.1	$	(307.9)	$	210.4

Condensed Statements of Cash Flows
For the nine months ended September 30, 2011
		Guarantor				Non-guarantor
(In millions)		Parent		Subsidiary		Subsidiaries		Eliminations		Consolidated
Cash flows provided by (used in)
	operating activities	$	34.9	$	(16.2)	$	88.8	$	-	$	107.5
Cash flows used in investing activities			(384.2)		(84.5)		(35.5)		(10.8)		(515.0)
Cash flows provided by (used in)
	financing activities		352.5		94.2		(50.8)		10.8		406.7
Increase (decrease) in cash
	and cash equivalents	$	3.2	$	(6.5)	$	2.5	$	-	$	(0.8)