Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of accumulated other comprehensive income (loss)

The changes in AOCI by component, net of tax, for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 were as follows (in millions):


	Post- retirement benefit plans Revised		Currency translation adjustment		Derivatives			Deferred Tax Asset Valuation Allowance Revised	Total Revised
Balance, January 3, 2021	$	(1,119.9)	$	(55.5)	$	2.1	$	(50.3)	$	(1,223.6)
Cumulative effect of change in accounting principle	(a)	1,030.3		—		—	(a)	42.9	1,073.2
OCI before reclassifications		6.6		(9.4)		11.7		—	8.9
Amounts reclassified from AOCI	(b)	(3.6)	(c)	—	(e)	(8.7)	(f)	12.5	0.2
Net current-period OCI		1,033.3		(9.4)		3.0		55.4	1,082.3
Balance, January 2, 2022		(86.6)		(64.9)		5.1		5.1	(141.3)
OCI before reclassifications		41.3		(25.2)		41.0		—	57.1
Amounts reclassified from AOCI	(b)	10.6	(d)	20.0	(e)	(32.6)	(f)	18.8	16.8
Net current-period OCI		51.9		(5.2)		8.4		18.8	73.9
Balance, January 1, 2023		(34.7)		(70.1)		13.5		23.9	(67.4)
OCI before reclassifications		(2.9)		1.7		(21.8)		—	(23.0)
Amounts reclassified from AOCI	(b)	5.1	(c)	—	(e)	1.9	(f)	0.2	7.2
Net current-period OCI		2.2		1.7		(19.9)		0.2	(15.8)
Balance, December 31, 2023	$	(32.5)	$	(68.4)	$	(6.4)	$	24.1	$	(83.2)

Attributable to noncontrolling interests:
Balance, January 3, 2021	$	—	$	21.2	$	—	$	—	$	21.2
OCI before reclassifications		—		4.8		—		—	4.8
Amounts reclassified from AOCI		—	(c)	—		—		—	—
Net current-period OCI		—		4.8		—		—	4.8
Balance, January 2, 2022		—		26.0		—		—	26.0
OCI before reclassifications		—		(18.3)		—		—	(18.3)
Amounts reclassified from AOCI		—	(c)	—		—		—	—
Net current-period OCI		—		(18.3)		—		—	(18.3)
Balance, January 1, 2023		—		7.7		—		—	7.7
OCI before reclassifications		—		(0.4)		—		—	(0.4)
Amounts reclassified from AOCI		—	(c)	—		—		—	—
Net current-period OCI		—		(0.4)		—		—	(0.4)
Balance, December 31, 2023	$	—	$	7.3	$	—	$	—	$	7.3

(a)In the fourth quarter of fiscal year 2023, the Company voluntarily changed its method of accounting for recognizing actuarial gains and losses for our defined benefit pension plans. See Note 1 for amounts recognized related to this change. The information within this Note has been revised to reflect the change in accounting principle for current and prior periods.

(b)Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 14) and/or loss on asset sales and sales of businesses, net, as part of the loss on sale of the Sheffield, UK operations (see Note 6).

(c)No amounts were reclassified to earnings.

(d)Amounts were included in loss on asset sales and sales of businesses, net, as part of the loss on sale of the Sheffield, UK operations (see Note 6).

(e)Amounts related to derivatives are included in sales, cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 12).

(f) Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates. The fiscal year 2021 income tax provision includes $6.4 million of tax expense for the recognition of a stranded deferred tax balance arising from deferred tax valuation allowances that was associated with certain postretirement medical benefits due to plan termination (see Notes 14 and 17).

Reclassification out of accumulated other comprehensive income

Reclassifications out of AOCI for the fiscal years ended December 31, 2023, January 1, 2023 and January 2, 2022 were as follows:


	Amount reclassified from AOCI (d)
	Fiscal year ended
Details about AOCI Components (In millions)	December 31, 2023			January 1, 2023			January 2, 2022			Affected line item in the consolidated statement of operations
Postretirement benefit plans Revised
Prior service credit	$	0.6	(a)	$	0.5	(a)	$	1.8	(a)
Actuarial losses	(6.0)		(a)	(13.2)		(a)	(13.9)		(a)
Settlement gain (loss)	(1.1)		(a)	(0.7)		(b)	21.9		(a)
	(6.5)		(d)	(13.4)		(d)	9.8		(d)	Total before tax
	(1.4)			(2.8)			6.2			Tax provision (benefit) (e)
	$	(5.1)		$	(10.6)		$	3.6		Net of tax

Currency translation adjustment	—		(d)	(20.0)		(b,d)	—		(d)

Derivatives
Nickel and other raw material contracts	$	3.3	(c)	$	26.9	(c)	$	7.1	(c)
Natural gas contracts	(7.5)		(c)	15.1		(c)	5.3		(c)
Foreign exchange contracts	0.3		(c)	0.9		(c)	0.1		(c)
Interest rate swap	1.4		(c)	(0.1)		(c)	(1.1)		(c)
	(2.5)		(d)	42.8		(d)	11.4		(d)	Total before tax
	(0.6)			10.2			2.7			Tax provision (benefit) (e)
	$	(1.9)		$	32.6		$	8.7		Net of tax

(a)Amounts are included in nonoperating retirement benefit expense (see Note 14).

(b)Amounts in fiscal year 2022 were included in loss on asset sales and sales of businesses, net, as part of the loss on sale of the Sheffield, UK operations (see Note 6).

(c)Amounts related to derivatives, with the exception of the interest rate swap, are included in sales or 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 ABL Term Loan is recognized in earnings (see Note 12).

(d)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.

(e)These amounts exclude the impact of any deferred tax asset valuation allowances, when applicable, including recognition of stranded balances (see Note 17 for further explanation).