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Business Segments
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Business Segments Business Segments
The Company operates under two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S).
HPMC is comprised of the Specialty Materials and Forged Products businesses, as well as the ATI Europe distribution operations. Approximately 85% of its revenue is derived from the aerospace & defense markets including nearly 60% of its revenue from products for commercial jet engines. Other major HPMC end markets include medical and energy. HPMC produces a wide range of high performance materials, components, and advanced metallic powder alloys. These are made from nickel-based alloys and superalloys, titanium and titanium-based alloys, and a variety of other specialty materials. Capabilities range from cast/wrought and powder alloy development to final production of highly engineered finished components, and 3D-printed aerospace products.
The AA&S segment includes the Specialty Alloys & Components business, the Specialty Rolled Products business, the 60%-owned STAL PRS joint venture, and the Uniti and A&T Stainless 50%-owned joint ventures that are reported in AA&S segment results under the equity method of accounting. See Note 7 for further information on the Company’s joint ventures. AA&S is focused on delivering high-value flat products primarily to the energy, aerospace, and defense markets, which comprise over 60% of its revenue. Other important end markets for AA&S include electronics, medical and automotive. AA&S produces nickel-based alloys, titanium and titanium-based alloys, and specialty alloys in a variety of forms including plate, sheet, and strip products.
The measure of segment EBITDA categorically excludes income taxes, depreciation and amortization, corporate expenses, net interest expense, closed operations and other expenses, charges for goodwill and asset impairments, restructuring and other charges, strike related costs, pension remeasurement gains/losses, debt extinguishment charges and gains or losses on asset sales and sales of businesses. Management believes segment EBITDA, as defined, provides an appropriate measure of controllable operating results at the business segment level.
Intersegment sales are generally recorded at full cost or market. Common services are allocated on the basis of estimated utilization.
Fiscal Year
(In millions)202320222021
Total sales:
High Performance Materials & Components$2,302.0 $1,815.7 $1,248.3 
Advanced Alloys & Solutions2,336.9 2,433.7 1,762.4 
Total sales4,638.9 4,249.4 3,010.7 
Intersegment sales:
High Performance Materials & Components181.8 174.5 93.2 
Advanced Alloys & Solutions283.4 238.9 117.7 
Total intersegment sales465.2 413.4 210.9 
Sales to external customers:
High Performance Materials & Components2,120.2 1,641.2 1,155.1 
Advanced Alloys & Solutions2,053.5 2,194.8 1,644.7 
Total sales to external customers$4,173.7 $3,836.0 $2,799.8 
Total international sales were $1,922.9 million in fiscal year 2023, $1,617.4 million in fiscal year 2022, and $1,264.9 million in fiscal year 2021. Of these amounts, sales by operations in the United States to customers in other countries were $1,498.7 million in fiscal year 2023, $1,217.9 million in fiscal year 2022, and $846.3 million in fiscal year 2021.
Fiscal Year
(In millions)20232022 Revised2021 Revised
EBITDA:
High Performance Materials & Components$433.6 $303.4 $170.3 
Advanced Alloys & Solutions276.6 375.3 246.8 
Total segment EBITDA710.2 678.7 417.1 
Corporate expenses(62.3)(60.3)(53.7)
Closed operations and other income (expenses)(13.3)(5.6)3.1 
Depreciation & amortization(146.1)(142.9)(143.9)
Interest expense, net(92.8)(87.4)(96.9)
Restructuring and other credits (charges) (See Note 19)(31.4)(23.7)10.5 
Strike related costs— — (63.2)
Retirement benefit settlement gain (loss) (See Note 14)(41.7)— 64.9 
Pension remeasurement gain (loss) (See Note 14)(26.8)100.3 147.2 
Joint venture restructuring credit (See Note 7)— 0.9 — 
Debt extinguishment charge (See Note 10)— — (65.5)
Gain (loss) on asset sales and sale of business, net(0.6)(105.4)13.8 
Income before income taxes$295.2 $354.6 $233.4 
Beginning in 2020, the U.S. government enacted various relief packages in response to the COVID-19 pandemic. Results for the fiscal year ended January 1, 2023 include $34 million related to this government sponsored COVID relief in segment EBITDA. HPMC segment results for fiscal year 2022 include $27 million of benefits from the AMJP Program and employee retention credits, and AA&S segment results for fiscal year 2022 include $7 million in employee retention credits.

Corporate expenses are primarily classified as selling and administrative expenses in the consolidated statement of operations, and consist of salaries and benefits, incentive compensation, facility leases and other costs of ATI’s corporate functions.

Closed operations and other expenses are primarily presented in selling and administrative expenses in the consolidated statements of operations. These items included costs at closed facilities, including legal matters, environmental, real estate and other facility costs, and changes in foreign currency remeasurement impacts primarily related to ATI’s European Treasury Center operation. Closed operations and other expenses in fiscal year 2023 reflect higher retirement benefit expense and higher insurance costs associated with an outstanding insurance claim involving our captive insurance company compared to prior year periods.
Depreciation expense in fiscal year 2023 includes $3.8 million of accelerated depreciation of fixed assets related to the restructuring of our European operations and the closure of our Robinson, PA operations.
During the fiscal year ended January 2, 2022, the Company recorded $63.2 million in strike related costs, of which $59.7 million were excluded from AA&S segment EBITDA and $3.5 million were excluded from HPMC segment EBITDA. These items primarily consisted of overhead costs recognized in the period due to below-normal operating rates, higher costs for outside conversion activities, and ongoing benefit costs for striking employees.
Loss on asset sales and sales of businesses for fiscal year 2023 is related to a $0.6 million loss on the sale of the Company’s Northbrook, IL operations, for which no proceeds were received but $0.3 million of transaction costs were paid and reported as an investing activity on the consolidated statement of cash flows. Gain (loss) on asset sales and sales of businesses, net, for fiscal year 2022 relate to a $112.2 million loss on the sale of the Company’s Sheffield, UK operations, partially offset by a $6.8 million gain from the sale of assets from the Pico Rivera, CA operations. The $13.8 million gain on asset sales in fiscal year 2021 consists of a gain on the sale of the Company’s Flowform Products business. See Note 6 for further explanation regarding the sale of business transactions in fiscal years 2022 and 2021.
Certain additional information regarding the Company’s business segments is presented below:
Fiscal Year
(In millions)202320222021
Depreciation and amortization:
High Performance Materials & Components$71.1 $68.3 $75.0 
Advanced Alloys & Solutions67.9 67.4 64.5 
Other7.1 7.2 4.4 
Total depreciation and amortization$146.1 $142.9 $143.9 
Capital expenditures:
High Performance Materials & Components$100.4 $33.3 $40.2 
Advanced Alloys & Solutions97.2 89.6 110.6 
Corporate3.1 8.0 1.8 
Total capital expenditures$200.7 $130.9 $152.6 
Fiscal Year
Identifiable assets:202320222021
High Performance Materials & Components$1,990.9 $1,749.3 $1,624.8 
Advanced Alloys & Solutions1,996.7 1,981.1 1,914.0 
Corporate:
Deferred Taxes135.7 4.7 6.3 
Cash and cash equivalents and other861.8 710.5 740.1 
Total assets$4,985.1 $4,445.6 $4,285.2 
Fiscal YearFiscal YearFiscal Year
($ in millions)2023Percent
of total		2022Percent
of total		2021Percent
of total
Total assets:
United States$4,463.7 90 %$3,942.7 89 %$3,587.0 84 %
China295.8 6 %321.1 7 %406.4 9 %
United Kingdom16.9 — %13.4 — %153.9 4 %
Other208.7 4 %168.4 4 %137.9 3 %
Total Assets$4,985.1 100 %$4,445.6 100 %$4,285.2 100 %