Revenue from Contracts with Customers

12 Months Ended

Dec. 31, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

Revenue from Contracts with Customers

Disaggregation of Revenue

The Company operates in two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). Revenue is disaggregated within these two business segments by diversified global markets, primary geographical markets, and diversified products. Comparative information of the Company’s overall revenues (in millions) by global and geographical markets for the fiscal years ended December 31, 2021, 2020 and 2019 were as follows:

(in millions)	2021						2020						2019
	HPMC		AA&S		Total		HPMC		AA&S		Total		HPMC		AA&S		Total
Diversified Global Markets:
Aerospace & Defense	$	835.5	$	297.2	$	1,132.7	$	946.9	$	413.1	$	1,360.0	$	1,624.1	$	506.3	$	2,130.4
Energy*	178.3		413.6		591.9		106.2		512.7		618.9		153.6		643.3		796.9
Automotive	8.7		296.4		305.1		5.5		257.7		263.2		10.5		286.1		296.6
Electronics	1.2		213.9		215.1		0.9		176.8		177.7		0.5		162.7		163.2
Food Equipment & Appliances	0.1		153.0		153.1		—		159.2		159.2		0.3		205.5		205.8
Medical	60.3		71.2		131.5		47.7		71.4		119.1		85.4		87.0		172.4
Construction/Mining	24.0		98.2		122.2		18.6		123.4		142.0		42.5		152.5		195.0
Other	47.0		101.2		148.2		38.8		103.2		142.0		61.6		100.6		162.2
Total	$	1,155.1	$	1,644.7	$	2,799.8	$	1,164.6	$	1,817.5	$	2,982.1	$	1,978.5	$	2,144.0	$	4,122.5

*Includes the oil & gas, downstream processing, and specialty energy markets.

(in millions)	2021						2020						2019
	HPMC		AA&S		Total		HPMC		AA&S		Total		HPMC		AA&S		Total
Primary Geographical Market:
United States	$	571.3	$	963.6	$	1,534.9	$	641.0	$	1,168.1	$	1,809.1	$	1,042.6	$	1,412.0	$	2,454.6
China	49.5		320.9		370.4		31.0		284.5		315.5		93.9		261.7		355.6
United Kingdom	136.7		17.2		153.9		101.9		24.6		126.5		156.7		17.1		173.8
Germany	74.1		47.2		121.3		76.6		48.8		125.4		147.2		72.1		219.3
Hong Kong	76.3		0.9		77.2		19.0		1.2		20.2		0.9		0.4		1.3
Canada	36.3		39.6		75.9		28.3		40.6		68.9		50.7		55.6		106.3
Rest of World	210.9		255.3		466.2		266.8		249.7		516.5		486.5		325.1		811.6
Total	$	1,155.1	$	1,644.7	$	2,799.8	$	1,164.6	$	1,817.5	$	2,982.1	$	1,978.5	$	2,144.0	$	4,122.5

Comparative information of the Company’s major high-value and standard products based on their percentages of sales is included in the following table. In conjunction with the Company’s announced ongoing exit of lower-margin standard stainless sheet products in the fourth quarter of 2020 (see Note 19), ATI reclassified certain items as High-Value Products within AA&S segment results. Prior period information reflects these reclassifications. HRPF conversion service sales in the AA&S segment are excluded from this presentation.

	2021						2020						2019
	HPMC		AA&S		Total		HPMC		AA&S		Total		HPMC		AA&S		Total
Diversified Products:
High-Value Products
Nickel-based alloys and specialty alloys	43	%	37	%	39	%	38	%	35	%	36	%	38	%	41	%	39	%
Precision rolled strip	—	%	33	%	19	%	—	%	25	%	15	%	—	%	23	%	12	%
Precision forgings, castings and components	38	%	—	%	16	%	34	%	—	%	14	%	36	%	—	%	18	%
Titanium and titanium-based alloys	19	%	6	%	12	%	28	%	11	%	17	%	26	%	11	%	18	%
Zirconium and related alloys	—	%	17	%	10	%	—	%	15	%	9	%	—	%	11	%	6	%
Total High-Value Products	100	%	93	%	96	%	100	%	86	%	91	%	100	%	86	%	93	%
Standard Products
Standard stainless products	—	%	7	%	4	%	—	%	14	%	9	%	—	%	14	%	7	%
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

The Company maintains a backlog of confirmed orders totaling $2.1 billion, $1.4 billion and $2.3 billion at December 31, 2021, 2020 and 2019, respectively. Due to the structure of the Company’s LTAs, 80% of this backlog at December 31, 2021 represented booked orders with performance obligations that will be satisfied within the next twelve months. The backlog does not reflect any elements of variable consideration.

Accounts Receivable

As of December 31, 2021 and 2020, accounts receivable with customers were $473.8 million and $350.1 million, respectively. The following represents the rollforward of accounts receivable - reserve for doubtful accounts for the fiscal years ended December 31, 2021, 2020 and 2019:

(in millions)
Accounts Receivable - Reserve for Doubtful Accounts
Balance as of December 31, 2018	$	6.0
Expense to increase the reserve	0.2
Write-off of uncollectible accounts	(1.6)
Balance as of December 31, 2019	4.6
Expense to increase the reserve	0.2
Write-off of uncollectible accounts	(0.5)
Balance as of December 31, 2020	4.3
Expense to increase the reserve	0.3
Write-off of uncollectible accounts	(0.8)
Balance as of December 31, 2021	$	3.8

Contract balances

The following represents the rollforward of contract assets and liabilities for the fiscal years ended December 31, 2021, 2020 and 2019:

(in millions)
Contract Assets
Short-term	2021		2020		2019
Balance as of beginning of fiscal year	$	38.9	$	38.5	$	51.2
Recognized in current year	93.8		84.2		74.5
Reclassified to accounts receivable	(76.2)		(83.9)		(79.9)
Reclassification to/from long-term and contract liability	(2.6)		0.1		—
Divestiture	—		—		(7.3)
Balance as of period end	$	53.9	$	38.9	$	38.5
Long-term	2021		2020		2019
Balance as of beginning of fiscal year	$	—	$	0.1	$	0.1
Recognized in current year	—		—		—
Reclassified to accounts receivable	—		—		—
Reclassification to/from short-term	—		(0.1)		—
Balance as of period end	$	—	$	—	$	0.1

(in millions)
Contract Liabilities
Short-term	2021		2020		2019
Balance as of beginning of fiscal year	$	111.8	$	78.7	$	71.4
Recognized in current year	161.5		170.3		126.1
Amounts in beginning balance reclassified to revenue	(84.1)		(54.9)		(49.2)
Current year amounts reclassified to revenue	(72.9)		(90.1)		(76.0)
Divestiture	(0.8)		—		—
Other	0.1		—		1.9
Reclassification to/from long-term and contract asset	0.6		7.8		4.5
Balance as of period end	$	116.2	$	111.8	$	78.7
Long-term	2021		2020		2019
Balance as of beginning of fiscal year	$	32.0	$	25.9	$	7.3
Recognized in current year	56.6		14.9		24.2
Amounts in beginning balance reclassified to revenue	(1.0)		(1.0)		(1.1)
Current year amounts reclassified to revenue	—		—		—
Reclassification to/from short-term	(3.2)		(7.8)		(4.5)
Balance as of period end	$	84.4	$	32.0	$	25.9

Contract costs for obtaining and fulfilling a contract were $5.2 million and $5.4 million as of December 31, 2021 and 2020, respectively, which are reported in other long-term assets on the consolidated balance sheet. Amortization expense for the fiscal years ended December 31, 2021, 2020 and 2019 of these contract costs was $1.0 million, $1.4 million, and $1.4 million, respectively.