Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income (Loss)

The changes in AOCI by component, net of tax, for the three month period ended June 30, 2021 were as follows (in millions):


	Post- retirement benefit plans		Currency translation adjustment		Derivatives		Deferred Tax Asset Valuation Allowance		Total
Attributable to ATI:
Balance, March 31, 2021	$	(1,103.4)	$	(60.9)	$	1.1	$	(45.4)	$	(1,208.6)
OCI before reclassifications		—		5.1		5.1		—	10.2
Amounts reclassified from AOCI	(a)	16.5	(b)	—	(c)	(1.1)	(d)	6.7	22.1
Net current-period OCI		16.5		5.1		4.0		6.7	32.3
Balance, June 30, 2021	$	(1,086.9)	$	(55.8)	$	5.1	$	(38.7)	$	(1,176.3)
Attributable to noncontrolling interests:
Balance, March 31, 2021	$	—	$	21.8	$	—	$	—	$	21.8
OCI before reclassifications		—		1.9		—		—	1.9
Amounts reclassified from AOCI		—	(b)	—		—		—	—
Net current-period OCI		—		1.9		—		—	1.9
Balance, June 30, 2021	$	—	$	23.7	$	—	$	—	$	23.7

The changes in AOCI by component, net of tax, for the six month period ended June 30, 2021 were as follows (in millions):


	Post- retirement benefit plans		Currency translation adjustment		Derivatives		Deferred Tax Asset Valuation Allowance		Total
Attributable to ATI:
Balance, December 31, 2020	$	(1,119.9)	$	(55.5)	$	2.1	$	(50.3)	$	(1,223.6)
OCI before reclassifications		—		(0.3)		5.4		—	5.1
Amounts reclassified from AOCI	(a)	33.0	(b)	—	(c)	(2.4)	(d)	11.6	42.2
Net current-period OCI		33.0		(0.3)		3.0		11.6	47.3
Balance, June 30, 2021	$	(1,086.9)	$	(55.8)	$	5.1	$	(38.7)	$	(1,176.3)
Attributable to noncontrolling interests:
Balance, December 31, 2020	$	—	$	21.2	$	—	$	—	$	21.2
OCI before reclassifications		—		2.5		—		—	2.5
Amounts reclassified from AOCI		—	(b)	—		—		—	—
Net current-period OCI		—		2.5		—		—	2.5
Balance, June 30, 2021	$	—	$	23.7	$	—	$	—	$	23.7

(a)Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10).

(b)No amounts were reclassified to earnings.

(c)Amounts related to derivatives are included in cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 8).

(d)Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates.

The changes in AOCI by component, net of tax, for the three month period ended June 30, 2020 were as follows (in millions):


	Post- retirement benefit plans		Currency translation adjustment		Derivatives		Deferred Tax Asset Valuation Allowance		Total
Attributable to ATI:
Balance, March 31, 2020	$	(1,067.4)	$	(99.2)	$	(8.5)	$	(41.5)	$	(1,216.6)
OCI before reclassifications		—		14.7		1.6		—	16.3
Amounts reclassified from AOCI	(a)	15.6	(b)	—	(c)	3.2	(d)	8.7	27.5
Net current-period OCI		15.6		14.7		4.8		8.7	43.8
Balance, June 30, 2020	$	(1,051.8)	$	(84.5)	$	(3.7)	$	(32.8)	$	(1,172.8)
Attributable to noncontrolling interests:
Balance, March 31, 2020	$	—	$	9.0	$	—	$	—	$	9.0
OCI before reclassifications		—		(0.5)		—		—	(0.5)
Amounts reclassified from AOCI		—	(b)	—		—		—	—
Net current-period OCI		—		(0.5)		—		—	$	(0.5)
Balance, June 30, 2020	$	—	$	8.5	$	—	$	—	$	8.5

The changes in AOCI by component, net of tax, for the six month period ended June 30, 2020 were as follows (in millions):


	Post- retirement benefit plans		Currency translation adjustment		Derivatives		Deferred Tax Asset Valuation Allowance		Total
Attributable to ATI:
Balance, December 31, 2019	$	(1,083.1)	$	(76.6)	$	(0.5)	$	(41.5)	$	(1,201.7)
OCI before reclassifications		—		(7.9)		(7.8)		—	(15.7)
Amounts reclassified from AOCI	(a)	31.3	(b)	—	(c)	4.6	(d)	8.7	44.6
Net current-period OCI		31.3		(7.9)		(3.2)		8.7	28.9
Balance, June 30, 2020	$	(1,051.8)	$	(84.5)	$	(3.7)	$	(32.8)	$	(1,172.8)
Attributable to noncontrolling interests:
Balance, December 31, 2019	$	—	$	9.8	$	—	$	—	$	9.8
OCI before reclassifications		—		(1.3)		—		—	(1.3)
Amounts reclassified from AOCI		—	(b)	—		—		—	—
Net current-period OCI		—		(1.3)		—		—	$	(1.3)
Balance, June 30, 2020	$	—	$	8.5	$	—	$	—	$	8.5

(a)Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 10).

(b)No amounts were reclassified to earnings.

(c)Amounts related to derivatives are included in cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 8).

(d)Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates.

Other comprehensive income (loss) amounts (OCI) reported above by category are net of applicable income tax expense (benefit) for each year presented. Income tax expense (benefit) on OCI items is recorded as a change in a deferred tax asset or liability. Amounts recognized in OCI include the impact of any deferred tax asset valuation allowances, when applicable. Foreign currency translation adjustments, including those pertaining to noncontrolling interests, are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries.

Reclassifications out of AOCI for the three and six month periods ended June 30, 2021 and 2020 were as follows:


	Amounts reclassified to AOCI
Details about AOCI Components (In millions)	Three months ended June 30, 2021		Three months ended June 30, 2020		Six months ended June 30, 2021		Six months ended June 30, 2020			Affected line item in the statements of operations
Postretirement benefit plans
Prior service credit	$	0.5	$	0.8	$	1.0	$	1.5	(a)
Actuarial losses	(22.2)		(21.3)		(44.4)		(42.6)		(a)
	(21.7)		(20.5)		(43.4)		(41.1)		(c)	Total before tax
	(5.2)		(4.9)		(10.4)		(9.8)			Tax benefit (d)
	$	(16.5)	$	(15.6)	$	(33.0)	$	(31.3)		Net of tax
Derivatives
Nickel and other raw material contracts	$	1.4	$	(2.3)	$	3.4	$	(2.6)	(b)
Natural gas contracts	0.3		(1.3)		0.3		(2.6)		(b)
Foreign exchange contracts	—		(0.1)		—		(0.1)		(b)
Interest rate swap	(0.2)		(0.5)		(0.5)		(0.7)		(b)
	1.5		(4.2)		3.2		(6.0)		(c)	Total before tax
	0.4		(1.0)		0.8		(1.4)			Tax expense (benefit) (d)
	$	1.1	$	(3.2)	$	2.4	$	(4.6)		Net of tax

(a)Amounts are reported in nonoperating retirement benefit expense (see Note 10).

(b)Amounts related to derivatives, with the exception of the interest rate swap, are included in cost of goods sold in the period or periods the hedged item affects earnings. Amounts related to the interest rate swap are included in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings (see Note 8).

(c)For pretax items, positive amounts are income and negative amounts are expense in terms of the impact to net income. Tax effects are presented in conformity with ATI’s presentation in the consolidated statements of operations.

(d)These amounts exclude the impact of any deferred tax asset valuation allowances, when applicable.