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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2024
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From                      to                     
Commission File Number 1-12001
 ATI Inc.
(Exact name of registrant as specified in its charter)
Delaware25-1792394
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
2021 McKinney Avenue
Dallas,Texas75201
(Address of Principal Executive Offices)(Zip Code)
(800) 289-7454
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Common stock, par value $0.10ATINew York Stock Exchange
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  
Indicate by check mark whether the Registrant submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).     Yes      No  
At April 12, 2024, the registrant had outstanding 124,441,401 shares of its Common Stock.



ATI INC.
SEC FORM 10-Q
Quarter Ended March 31, 2024
INDEX
 Page No.
PART I. - FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets
Consolidated Statements of Operations
Consolidated Statements of Comprehensive Income (Loss)
Consolidated Statements of Cash Flows
Statements of Changes in Consolidated Equity
Notes to Consolidated Financial Statements
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
PART II. - OTHER INFORMATION
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 5. Other Information
Item 6. Exhibits
SIGNATURES



PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
ATI Inc. and Subsidiaries
Consolidated Balance Sheets
(In millions, except share and per share amounts)
(Current period unaudited)
March 31,
2024
December 31,
2023
ASSETS
Current Assets:
Cash and cash equivalents$394.4 $743.9 
Accounts receivable, net 720.5 625.0 
Short-term contract assets65.3 59.1 
Inventories, net1,284.9 1,247.5 
Prepaid expenses and other current assets52.8 62.2 
Total Current Assets2,517.9 2,737.7 
Property, plant and equipment, net1,688.9 1,665.9 
Goodwill227.2 227.2 
Other assets348.1 354.3 
Total Assets$4,782.1 $4,985.1 
LIABILITIES AND EQUITY
Current Liabilities:
Accounts payable$482.6 $524.8 
Short-term contract liabilities161.6 163.6 
Short-term debt and current portion of long-term debt27.1 31.9 
Other current liabilities225.8 256.8 
Total Current Liabilities897.1 977.1 
Long-term debt2,146.4 2,147.7 
Accrued postretirement benefits170.6 175.2 
Pension liabilities38.8 39.7 
Other long-term liabilities156.0 164.9 
Total Liabilities3,408.9 3,504.6 
Equity:
ATI Stockholders’ Equity:
Preferred stock, par value $0.10: authorized-50,000,000 shares; issued-none
  
Common stock, par value $0.10: authorized-500,000,000 shares; issued-133,796,517 shares at March 31, 2024 and 132,300,971 shares at December 31, 2023; outstanding-124,441,401 shares at March 31, 2024 and 126,879,099 shares at December 31, 2023
13.4 13.2 
Additional paid-in capital1,703.1 1,697.1 
Retained loss(4.0)(70.1)
Treasury stock: 9,355,116 shares at March 31, 2024 and 5,421,872 shares at December 31, 2023
(360.1)(184.0)
Accumulated other comprehensive loss, net of tax(88.8)(83.2)
Total ATI stockholders’ equity1,263.6 1,373.0 
Noncontrolling interests109.6 107.5 
Total Equity1,373.2 1,480.5 
Total Liabilities and Equity$4,782.1 $4,985.1 

The accompanying notes are an integral part of these statements.
1


ATI Inc. and Subsidiaries
Consolidated Statements of Operations
(In millions, except per share amounts)
(Unaudited)
 
Quarter ended
March 31, 2024April 2, 2023
Sales$1,042.9 $1,038.1 
Cost of sales845.5 844.9 
Gross profit 197.4 193.2 
Selling and administrative expenses82.0 80.6 
Restructuring charges0.2  
Operating income 115.2 112.6 
Nonoperating retirement benefit expense(3.7)(2.4)
Interest expense, net(26.6)(19.9)
Other income, net0.4 0.6 
Income before income taxes85.3 90.9 
Income tax provision 16.9 4.3 
Net income 68.4 86.6 
Less: Net income attributable to noncontrolling interests2.3 2.1 
Net income attributable to ATI$66.1 $84.5 
Basic net income attributable to ATI per common share$0.52 $0.66 
Diluted net income attributable to ATI per common share$0.46 $0.58 
The accompanying notes are an integral part of these statements.

2


ATI Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)
(In millions)
(Unaudited)
 
Quarter ended
 March 31, 2024April 2, 2023
Net income $68.4 $86.6 
Currency translation adjustment
Unrealized net change arising during the period(6.6)3.3 
Derivatives
Net derivatives loss on hedge transactions(1.8)(15.0)
Reclassification to net income of net realized loss (gain)1.7 (5.5)
Income taxes on derivative transactions  
Total(0.1)(20.5)
Postretirement benefit plans
Actuarial loss
Amortization of net actuarial loss1.3 1.5 
Prior service cost
Amortization to net income of net prior service credits(0.1)(0.1)
Income taxes on postretirement benefit plans0.3  
Total0.9 1.4 
Other comprehensive loss, net of tax(5.8)(15.8)
Comprehensive income62.6 70.8 
Less: Comprehensive income attributable to noncontrolling interests2.1 6.5 
Comprehensive income attributable to ATI$60.5 $64.3 
The accompanying notes are an integral part of these statements.

3


ATI Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(In millions)
(Unaudited)
 
Quarter ended
 March 31, 2024April 2, 2023
Operating Activities:
Net income $68.4 $86.6 
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization36.0 35.1 
Share-based compensation6.2 7.1 
Deferred taxes12.0 0.9 
Net gains from disposal of property, plant and equipment (0.3)
Changes in operating assets and liabilities:
Inventories(37.4)(98.1)
Accounts receivable(95.6)(146.4)
Accounts payable(33.5)(77.8)
Pension plan contributions (50.0)
Retirement benefits(3.4)(5.0)
Accrued liabilities and other(51.5)(37.3)
Cash used in operating activities(98.8)(285.2)
Investing Activities:
Purchases of property, plant and equipment(65.8)(60.4)
Proceeds from disposal of property, plant and equipment1.0 0.9 
Other1.0 0.2 
Cash used in investing activities(63.8)(59.3)
Financing Activities:
Payments on long-term debt and finance leases(7.1)(5.7)
Net payments under credit facilities(4.9)(16.8)
Purchase of treasury stock(150.0)(10.1)
Shares repurchased for income tax withholding on share-based compensation and other(24.9)(10.7)
Cash used in financing activities(186.9)(43.3)
Decrease in cash and cash equivalents(349.5)(387.8)
Cash and cash equivalents at beginning of period743.9 584.0 
Cash and cash equivalents at end of period$394.4 $196.2 
The accompanying notes are an integral part of these statements.

4


ATI Inc. and Subsidiaries
Statements of Changes in Consolidated Equity
(In millions)
(Unaudited)
ATI Stockholders
Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Treasury
Stock
Accumulated
Other
Comprehensive
Income (Loss)
Non-
controlling
Interests
Total
Equity
Balance, January 1, 2023$13.1 $1,668.1 $(480.9)$(87.0)$(67.4)$111.3 $1,157.2 
Net income   84.5   2.1 86.6 
Other comprehensive income (loss)— — — — (20.2)4.4 (15.8)
Purchase of treasury stock —  (10.1)  (10.1)
Employee stock plans0.1 7.0  (10.7)— — (3.6)
Balance, April 2, 2023$13.2 $1,675.1 $(396.4)$(107.8)$(87.6)$117.8 $1,214.3 
Balance, December 31, 2023$13.2 $1,697.1 $(70.1)$(184.0)$(83.2)$107.5 $1,480.5 
Net income   66.1   2.3 68.4 
Other comprehensive loss— — — — (5.6)(0.2)(5.8)
Purchase of treasury stock   (151.2)  (151.2)
Employee stock plans0.2 6.0  (24.9)— — (18.7)
Balance, March 31, 2024$13.4 $1,703.1 $(4.0)$(360.1)$(88.8)$109.6 $1,373.2 


The accompanying notes are an integral part of these statements.
5


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Unaudited
Note 1. Accounting Policies
The interim consolidated financial statements include the accounts of ATI Inc. and its subsidiaries. Unless the context requires otherwise, “ATI” and “the Company” refer to ATI Inc. and its subsidiaries.
The Company follows a 4-4-5 or 5-4-4 fiscal calendar, whereby each fiscal quarter consists of thirteen weeks grouped into two four-week months and one five-week month, and its fiscal year ends on the Sunday closest to December 31. Unless otherwise stated, references to years and quarters in this Quarterly Report on Form 10-Q relate to fiscal years and quarters, rather than calendar years and quarters.

These unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and note disclosures required by U.S. generally accepted accounting principles for complete financial statements. In management’s opinion, all adjustments (which include only normal recurring adjustments) considered necessary for a fair presentation have been included. Certain prior year amounts have been reclassified in order to conform with year 2024 presentation. These unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2023 Annual Report on Form 10-K. The results of operations for these interim periods are not necessarily indicative of the operating results for any future period. The December 31, 2023 financial information has been derived from the Company’s audited consolidated financial statements.
New Accounting Pronouncements Adopted
In September 2022, the Financial Accounting Standards Board (FASB) issued new accounting guidance related to disclosures about supplier finance programs. Supplier finance programs allow a buyer to offer its suppliers the option for access to payment in advance of an invoice due date, which is paid by a third-party finance provider or intermediary on the basis of invoices that the buyer has confirmed as valid. This new guidance requires a buyer in a supplier finance program to disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, changes from period to period, and potential magnitude, using both qualitative and quantitative information about its supplier finance programs. This new guidance, with the exception of annual disclosures on rollforward information, was effective for the Company in fiscal year 2023, and the Company adopted this new accounting guidance effective January 2, 2023. The annual rollforward information disclosures are effective for the Company in fiscal year 2024, with early adoption permitted. The Company did not early adopt this guidance. The adoption of these changes did not have an impact on the Company’s consolidated financial statements other than disclosure requirements, which are included in Note 6.
Pending Accounting Pronouncements
In November 2023, the FASB issued new accounting guidance related to segment reporting disclosures. This guidance requires additional disclosures on an annual and interim basis of segment information, including significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and the presentation and composition of other segment items, which is the difference between segment revenue less segment expenses and the measure of segment profit or loss. The guidance also requires that all current segment disclosures required on an annual basis be provided on an interim basis and requires disclosure of the title and position of the CODM and how the CODM uses the reported measure of segment profit or loss in assessing performance and allocating resources. This guidance does not change how an entity identifies its reportable segments. This new guidance includes annual disclosure requirements that will be effective for the Company for fiscal year 2024 and quarterly disclosure requirements that will be effective for fiscal year 2025. The guidance must be applied retrospectively and early adoption is permitted. The Company does not expect to early adopt this guidance and does not expect these changes to have an impact on the Company’s consolidated financial statements other than disclosure requirements.

In December 2023, the FASB issued new accounting guidance related to income tax disclosures. This guidance requires entities to disclose specific categories in its annual rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. This guidance also requires additional annual disclosures for income taxes paid and requires disaggregation of income before tax, between domestic and foreign, and income tax expense, between federal, state and foreign. This guidance also eliminates several current disclosure requirements related to: (1) the nature and estimate of the range of the reasonably possible change in the unrecognized tax benefits balance in the next 12 months, (2) making a statement that an estimate of the range cannot be made, and (3) disclosing the cumulative amount of each type of temporary difference when a deferred tax liability is not recognized because of the exceptions to comprehensive recognition of deferred taxes related to
6


subsidiaries and corporate joint ventures. This new guidance will be effective for the Company for fiscal year 2025 and must be applied on a prospective basis with retrospective application permitted. Early adoption of this guidance is also permitted. The Company does not expect to early adopt this guidance and does not expect these changes to have an impact on the Company’s consolidated financial statements other than disclosure requirements.
Note 2. 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 regarding the Company’s overall revenues by global and geographical markets for the quarters ended March 31, 2024 and April 2, 2023 is included in the following tables.
(in millions)Quarter ended
March 31, 2024April 2, 2023
HPMCAA&STotalHPMCAA&STotal
Diversified Global Markets:
Aerospace & Defense:
   Jet Engines- Commercial$296.9 $14.3 $311.2 $282.5 $28.4 $310.9 
   Airframes- Commercial85.7 104.4 190.1 71.0 98.9 169.9 
   Defense60.0 54.4 114.4 41.9 53.0 94.9 
   Total Aerospace & Defense442.6 173.1 615.7 395.4 180.3 575.7 
Energy:
   Oil & Gas3.5 99.0 102.5 2.4 125.1 127.5 
   Specialty Energy18.2 37.9 56.1 24.9 57.8 82.7 
   Total Energy21.7 136.9 158.6 27.3 182.9 210.2 
Medical35.9 23.2 59.1 17.5 17.5 35.0 
Automotive5.0 51.0 56.0 6.3 53.1 59.4 
Electronics1.0 51.9 52.9 0.5 33.9 34.4 
Construction/Mining6.7 20.5 27.2 8.2 32.2 40.4 
Food Equipment & Appliances 11.9 11.9  21.5 21.5 
Other17.0 44.5 61.5 15.9 45.6 61.5 
Total$529.9 $513.0 $1,042.9 $471.1 $567.0 $1,038.1 

(in millions)Quarter ended
March 31, 2024April 2, 2023
HPMCAA&STotalHPMCAA&STotal
Primary Geographical Market:
United States$240.7 $330.9 $571.6 $196.5 $391.8 $588.3 
Europe211.5 50.7 262.2 194.2 44.4 238.6 
Asia38.9 77.3 116.2 44.0 109.5 153.5 
Canada15.3 12.3 27.6 12.0 11.2 23.2 
South America, Middle East and other23.5 41.8 65.3 24.4 10.1 34.5 
Total$529.9 $513.0 $1,042.9 $471.1 $567.0 $1,038.1 


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Comparative information regarding the Company’s major products based on their percentages of sales is included in the following table. Hot-Rolling and Processing Facility (HRPF) conversion service sales in the AA&S segment are excluded from this presentation.
Quarter ended
March 31, 2024April 2, 2023
HPMCAA&STotalHPMCAA&STotal
Diversified Products and Services:
     Nickel-based alloys and specialty alloys39 %51 %45 %45 %60 %53 %
     Precision forgings, castings and components36 % %19 %34 % %16 %
     Titanium and titanium-based alloys24 %12 %18 %20 %8 %14 %
     Zirconium and related alloys %20 %10 % %13 %7 %
     Precision rolled strip products1 %17 %8 %1 %19 %10 %
Total100 %100 %100 %100 %100 %100 %
The Company maintained a backlog of confirmed orders totaling $3.9 billion and $3.3 billion at March 31, 2024 and April 2, 2023, respectively. Due to the structure of the Company’s long-term agreements, approximately 70% of this backlog at March 31, 2024 represented booked orders with performance obligations that will be satisfied within the next 12 months. The backlog does not reflect any elements of variable consideration.
Contract balances
As of March 31, 2024 and December 31, 2023, accounts receivable from customers were $723.6 million and $628.2 million, respectively. The following represents the rollforward of accounts receivable - reserve for doubtful accounts and contract assets and liabilities for the quarters ended March 31, 2024 and April 2, 2023:
(in millions)
Accounts Receivable - Reserve for Doubtful AccountsMarch 31,
2024
April 2,
2023
Balance as of beginning of year$3.2 $7.7 
Expense to increase the reserve  
Write-off of uncollectible accounts(0.1)(0.3)
Balance as of period end$3.1 $7.4 
(in millions)
Contract Assets
Short-termMarch 31,
2024
April 2,
2023
Balance as of beginning of year$59.1 $64.1 
Recognized in current year28.0 20.4 
Reclassified to accounts receivable(21.8)(31.8)
Balance as of period end$65.3 $52.7 
8


(in millions)
Contract Liabilities
Short-termMarch 31,
2024
April 2,
2023
Balance as of beginning of year$163.6 $149.1 
Recognized in current year38.1 33.6 
Amounts in beginning balance reclassified to revenue(36.7)(51.7)
Current year amounts reclassified to revenue(9.3)(0.4)
Reclassification to/from long-term5.9 19.1 
Balance as of period end$161.6 $149.7 
Long-term (a)March 31,
2024
April 2,
2023
Balance as of beginning of year$39.4 $66.8 
Recognized in current year0.6 1.0 
Reclassification to/from short-term(5.9)(19.1)
Balance as of period end$34.1 $48.7 
(a) Long-term contract liabilities are included in other long-term liabilities on the consolidated balance sheets.

Contract costs for obtaining and fulfilling a contract were $8.2 million and $8.1 million as of March 31, 2024 and December 31, 2023, respectively, and are reported in other long-term assets on the consolidated balance sheet. Contract cost amortization expense for the quarters ended March 31, 2024 and April 2, 2023 was $0.3 million.
Note 3. Inventories
Inventories at March 31, 2024 and December 31, 2023 were as follows (in millions):
March 31,
2024
December 31,
2023
Raw materials and supplies$229.3 $234.9 
Work-in-process1,030.0 973.6 
Finished goods94.7 114.5 
1,354.0 1,323.0 
Inventory valuation reserves(69.1)(75.5)
Total inventories, net$1,284.9 $1,247.5 
Inventories are stated at the lower of cost (first-in, first-out (FIFO) and average cost methods) or net realizable value.
Note 4. Property, Plant and Equipment
Property, plant and equipment at March 31, 2024 and December 31, 2023 was as follows (in millions):
March 31,
2024
December 31,
2023
Land$31.6 $32.3 
Buildings and leasehold improvements707.1 692.7 
Equipment3,060.1 3,024.3 
3,798.8 3,749.3 
Accumulated depreciation and amortization(2,109.9)(2,083.4)
Total property, plant and equipment, net$1,688.9 $1,665.9 
The construction in progress portion of property, plant and equipment at March 31, 2024 was $343.3 million. Capital expenditures on the consolidated statement of cash flows for the quarters ended March 31, 2024 and April 2, 2023 exclude $33.0 million and $11.6 million, respectively, of accrued capital expenditures that were included in property, plant and equipment at March 31, 2024 and April 2, 2023, respectively.

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Note 5. Joint Ventures

The financial results of majority-owned joint ventures are consolidated into the Company’s operating results and financial position, with the minority ownership interest recognized in the consolidated statements of operations as net income attributable to noncontrolling interests, and as equity attributable to the noncontrolling interests within total stockholders’ equity. Investments in which the Company exercises significant influence, but which it does not control (generally a 20% to 50% ownership interest), are accounted for under the equity method of accounting.

Majority-Owned Joint Ventures

STAL:
The Company has a 60% interest in the Chinese joint venture known as STAL. The remaining 40% interest in STAL is owned by China Baowu Steel Group Corporation Limited, a state authorized investment company whose equity securities are publicly traded in the People’s Republic of China. STAL is part of ATI’s AA&S segment and manufactures Precision Rolled Strip (PRS) stainless products mainly for the electronics and automotive markets located in Asia. Cash and cash equivalents held by STAL as of March 31, 2024 were $73.7 million.

Next Gen Alloys LLC:
The Company has a 51% interest in Next Gen Alloys LLC, a joint venture with GE Aviation for the development of a new meltless titanium alloy powder manufacturing technology; however, there is no active development at this time. Next Gen Alloys LLC funds its development activities through the sale of shares to the two joint venture partners. Cash and cash equivalents held by this joint venture as of March 31, 2024 were $1.0 million.

Equity Method Joint Ventures

A&T Stainless:
The Company has a 50% interest in A&T Stainless, a joint venture with an affiliate company of Tsingshan Group (Tsingshan) to produce 60-inch wide stainless sheet products for sale in North America. Tsingshan purchased its 50% joint venture interest in A&T Stainless in 2018 for $17.5 million. The A&T Stainless operations included the Company’s previously-idled direct roll and pickle (DRAP) facility in Midland, PA. ATI provided hot-rolling conversion services to A&T Stainless using the AA&S segment’s HRPF. The DRAP facility has been idled since the third quarter of 2020. ATI accounts for the A&T Stainless joint venture under the equity method of accounting.

ATI’s share of A&T Stainless results were losses of $0.4 million and $0.5 million for the quarters ended March 31, 2024 and April 2, 2023, respectively, which is included within other income/expense, net, on the consolidated statements of operations and in the AA&S segment’s operating results. As of March 31, 2024 and December 31, 2023, ATI had net receivables for working capital advances and administrative services from A&T Stainless of $1.0 million and $1.5 million, respectively.

Uniti:
ATI had a 50% interest in the industrial titanium joint venture known as Uniti, with the remaining 50% interest held by VSMPO, a Russian producer of titanium, aluminum, and specialty steel products. On March 9, 2022, the Company announced the termination of Uniti, LLC. No impairments were recorded as a result of the decision to terminate the Uniti joint venture. Uniti was accounted for under the equity method of accounting. ATI’s share of Uniti’s results was income of $0.2 million for the quarter ended April 2, 2023, which was included in the AA&S segment’s operating results, and within other income/expense, net on the consolidated statements of operations. The Company received its final distribution in the first quarter of 2024 as a result of the termination, with formal dissolution expected in the second half of 2024.


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Note 6. Supplemental Financial Statement Information
Other income (expense), net for the quarters ended March 31, 2024 and April 2, 2023 was as follows:
(in millions)Quarter ended
March 31, 2024April 2, 2023
Rent and royalty income$0.8 $0.6 
Gains from disposal of property, plant and equipment, net 0.3 
Net equity loss on joint ventures (See Note 5)(0.4)(0.3)
Total other income, net$0.4 $0.6 
Restructuring
Restructuring charges for the quarter ended March 31, 2024 were $0.2 million, primarily for the involuntary termination of several employees in ATI’s domestic operations. These amounts were presented as a restructuring charge in the consolidated statements of operations and are excluded from segment EBITDA.
Restructuring reserves for severance cost activity is as follows:
Severance and Employee
Benefit Costs
Balance at December 31, 2023$15.2 
Additions, net0.2 
Payments(1.5)
Balance at March 31, 2024$13.9 
The $13.9 million restructuring reserve balance at March 31, 2024 includes $9.7 million recorded in other current liabilities and $4.2 million recorded in other long-term liabilities on the consolidated balance sheet.
Supplier Financing
The Company participates in supplier financing programs with two financial institutions to offer its suppliers the option for access to payment in advance of an invoice due date. Under such programs, these financial institutions provide early payment to suppliers at their request for invoices that ATI has confirmed as valid at a pre-determined discount rate commensurate with the creditworthiness of ATI. As of March 31, 2024 and December 31, 2023, the Company had $18.4 million and $15.6 million, respectively, reported in accounts payable on the consolidated balance sheets under such programs.

11


Note 7. Debt
Debt at March 31, 2024 and December 31, 2023 was as follows (in millions): 
March 31,
2024
December 31,
2023
ATI Inc. 7.25% Notes due 2030
$425.0 $425.0 
ATI Inc. 5.875% Notes due 2027
350.0 350.0 
ATI Inc. 5.125% Notes due 2031
350.0 350.0 
ATI Inc. 4.875% Notes due 2029
325.0 325.0 
ATI Inc. 3.5% Convertible Senior Notes due 2025
291.4 291.4 
Allegheny Ludlum 6.95% Debentures due 2025 (a)
150.0 150.0 
ABL Term Loan200.0 200.0 
U.S. revolving credit facility  
Foreign credit facilities 5.0 
Finance leases and other100.6 102.8 
Debt issuance costs(18.5)(19.6)
Debt2,173.5 2,179.6 
Short-term debt and current portion of long-term debt27.1 31.9 
Long-term debt$2,146.4 $2,147.7 
 
(a) The payment obligations of these debentures issued by Allegheny Ludlum, LLC are fully and unconditionally guaranteed by ATI.
Revolving Credit Facility

The Company has an Asset Based Lending (ABL) Credit Facility, which is collateralized by the accounts receivable and inventory of the Company’s operations. The ABL facility also provides the Company with the option of including certain machinery and equipment as additional collateral for purposes of determining availability under the facility. The ABL facility, which matures in September 2027, includes a $600 million revolving credit facility, a letter of credit sub-facility of up to $200 million, a $200 million term loan (Term Loan), and a swing loan facility of up to $60 million. The Term Loan has an interest rate of 2.0% above adjusted Secured Overnight Financing Rate (SOFR) and can be prepaid in increments of $25 million if certain minimum liquidity conditions are satisfied. In addition, the Company has the right to request an increase of up to $300 million in the maximum amount available under the revolving credit facility for the duration of the ABL. The Company has a $50 million floating-for-fixed interest rate swap which converts a portion of the Term Loan to a 4.21% fixed interest rate. The swap matures in June 2024.

The applicable interest rate for revolving credit borrowings under the ABL facility includes interest rate spreads based on available borrowing capacity that range between 1.25% and 1.75% for SOFR-based borrowings and between 0.25% and 0.75% for base rate borrowings. The ABL facility contains a financial covenant whereby the Company must maintain a fixed charge coverage ratio of not less than 1.00:1.00 after an event of default has occurred and is continuing or if the undrawn availability under the ABL revolving credit portion of the facility is less than the greater of (i) 10% of the then applicable maximum loan amount under the revolving credit portion of the ABL and the outstanding Term Loan balance, or (ii) $60.0 million. The Company was in compliance with the fixed charge coverage ratio as of March 31, 2024. Additionally, the Company must demonstrate minimum liquidity specified by the facility during the 90-day period immediately preceding the stated maturity date of its 3.5% Convertible Senior Notes due 2025 and the 6.95% Debentures due 2025 issued by the Company’s wholly owned subsidiary, Allegheny Ludlum LLC. The ABL also contains customary affirmative and negative covenants for credit facilities of this type, including limitations on the Company’s ability to incur additional indebtedness or liens or to enter into investments, mergers and acquisitions, dispositions of assets and transactions with affiliates, some of which are more restrictive, at any time during the term of the ABL when the Company’s fixed charge coverage ratio is less than 1.00:1.00 and its undrawn availability under the revolving portion of the ABL is less than the greater of (a) $120 million or (b) 20% of the sum of the maximum loan amount under the revolving credit portion of the ABL and the outstanding Term Loan balance.

As of March 31, 2024, there were no outstanding borrowings under the revolving portion of the ABL facility, and $31.7 million was utilized to support the issuance of letters of credit. There were no revolving credit borrowings under the ABL facility during the first quarter of 2024 or 2023. The Company also has foreign credit facilities, primarily in China, that total $57 million based on March 31, 2024 foreign exchange rates, none of which was drawn as of March 31, 2024 and $5.0 million of which was drawn as of December 31, 2023.
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2025 Convertible Notes

As of March 31, 2024, the Company had $291.4 million aggregate principal amount of 3.5% Convertible Notes due 2025 (2025 Convertible Notes) outstanding, which mature on June 15, 2025. As of March 31, 2024 and December 31, 2023, the fair value of the 2025 Convertible Notes was $967 million and $864 million, respectively, based on the quoted market price, which is classified in Level 1 of the fair value hierarchy. The 2025 Convertible Notes have a 3.5% cash coupon rate that is payable semi-annually in arrears on each June 15 and December 15. Including amortization of deferred issuance costs, the effective interest rate is 4.2% for the quarters ended March 31, 2024 and April 2, 2023. Remaining deferred issuance costs were $2.4 million and $2.9 million at March 31, 2024 and December 31, 2023, respectively. Interest expense on the 2025 Convertible Notes was as follows:

Quarter ended
(in millions)March 31, 2024April 2, 2023
Contractual coupon rate$2.5 $2.5 
Amortization of debt issuance costs0.5 0.5 
   Total interest expense$3.0 $3.0 

Currently, and prior to the 41st scheduled trading day immediately preceding the maturity date, the Company may redeem all or any portion of the 2025 Convertible Notes, at its option, at a redemption price equal to 100% of the principal amount thereof, plus any accrued and unpaid interest, if the last reported sale price of ATI’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on the trading day immediately preceding the date on which ATI provides written notice of redemption.

The initial conversion rate for the 2025 Convertible Notes is 64.5745 shares of ATI common stock per $1,000 principal amount of the 2025 Convertible Notes, equivalent to an initial conversion price of approximately $15.49 per share (18.8 million shares). Prior to the close of business on the business day immediately preceding March 15, 2025, the 2025 Convertible Notes will be convertible at the option of the holders of 2025 Convertible Notes only upon the satisfaction of specified conditions and during certain periods. Thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date, the 2025 Convertible Notes will be convertible at the option of holders of 2025 Convertible Notes at any time regardless of these conditions. Conversions of the 2025 Convertible Notes may be settled in cash, shares of ATI’s common stock or a combination thereof, at ATI’s election.

ATI entered into privately negotiated capped call transactions with certain of the initial purchasers of the 2025 Convertible Notes or their respective affiliates (collectively, the Counterparties). The capped call transactions are expected generally to reduce potential dilution to ATI’s common stock upon any conversion of the 2025 Convertible Notes and/or offset any cash payments ATI is required to make in excess of the principal amount of converted 2025 Convertible Notes, as the case may be, with such reduction and/or offset subject to a cap based on the cap price. The cap price of the capped call transactions initially is approximately $19.76 per share, and is subject to adjustments under the terms of the capped call transactions.
Note 8. Derivative Financial Instruments and Hedging
As part of its risk management strategy, the Company, from time-to-time, utilizes derivative financial instruments to manage its exposure to changes in raw material prices, energy costs, foreign currencies, and interest rates. In accordance with applicable accounting standards, the Company accounts for most of these contracts as hedges.
The Company sometimes uses futures and swap contracts to manage exposure to changes in prices for forecasted purchases of raw materials, such as nickel, and natural gas. Under these contracts, which are generally accounted for as cash flow hedges, the price of the item being hedged is fixed at the time that the contract is entered into, and the Company is obligated to make or receive a payment equal to the net change between this fixed price and the market price at the date the contract matures.
The majority of ATI’s products are sold utilizing raw material surcharges and index mechanisms. However, as of March 31, 2024, the Company had entered into financial hedging arrangements, primarily at the request of its customers related to firm orders, for an aggregate notional amount of approximately 2 million pounds of nickel with hedge dates through 2024. The aggregate notional amount hedged is less than 5% of a single year’s estimated nickel raw material purchase requirements. These derivative instruments are used to hedge the variability of a selling price that is based on the London Metal Exchange (LME) index for nickel, as well as to hedge the variability of the purchase cost of nickel based on this LME index. Any gain or
13


loss associated with these hedging arrangements is included in sales or cost of sales, depending on whether the underlying risk being hedged was the variable selling price or the variable raw material cost, respectively.
At March 31, 2024, the outstanding financial derivatives used to hedge the Company’s exposure to energy cost volatility included natural gas cost hedges. At March 31, 2024, the Company hedged approximately 70% of its forecasted domestic requirements for natural gas for the remainder of 2024 and approximately 35% for 2025.
While the majority of the Company’s direct export sales are transacted in U.S. dollars, foreign currency exchange contracts are used, from time-to-time, to limit transactional exposure to changes in currency exchange rates for those transactions denominated in a non-U.S. currency. The Company sometimes purchases foreign currency forward contracts that permit it to sell specified amounts of foreign currencies expected to be received from its export sales for pre-established U.S. dollar amounts at specified dates. In addition, the Company may also hedge forecasted capital expenditures and designate cash balances held in foreign currencies as hedges of forecasted foreign currency transactions. At March 31, 2024, the Company had no material outstanding foreign currency forward contracts.
The Company may enter into derivative interest rate contracts to maintain a reasonable balance between fixed- and floating-rate debt. The Company has a $50 million floating-for-fixed interest rate swap which converts a portion of the ABL Term Loan to a 4.21% fixed rate. The swap matures in June 2024. The Company designated the interest rate swap as a cash flow hedge of the Company’s exposure to the variability of the payment of interest on a portion of its Term Loan borrowings.
There are no credit risk-related contingent features in the Company’s derivative contracts, and the contracts contain no provisions under which the Company has posted, or would be required to post, collateral. The counterparties to the Company’s derivative contracts are substantial and creditworthy commercial banks that are recognized market makers. The Company controls its credit exposure by diversifying across multiple counterparties and by monitoring credit ratings and credit default swap spreads of its counterparties. The Company also enters into master netting agreements with counterparties when possible.
The fair values of the Company’s derivative financial instruments are presented below, representing the gross amounts recognized which are not offset by counterparty or by type of item hedged. All fair values for these derivatives were measured using Level 2 information as defined by the accounting standard hierarchy, which includes quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs derived principally from or corroborated by observable market data.
(In millions)
Asset derivatives
Balance sheet locationMarch 31,
2024
December 31,
2023
Derivatives designated as hedging instruments:
Interest rate swapPrepaid expenses and other current assets$0.4 $0.7 
Foreign exchange contractsPrepaid expenses and other current assets0.1 0.1 
Natural gas contractsOther assets 0.1 
Total derivatives designated as hedging instruments$0.5 $0.9 
Liability derivativesBalance sheet location  
Derivatives designated as hedging instruments:
Natural gas contractsOther current liabilities5.4 5.6 
Nickel and other raw material contractsOther current liabilities4.5 7.5 
Natural gas contractsOther long-term liabilities0.8 1.1 
Total derivatives designated as hedging instruments$10.7 $14.2 
For derivative financial instruments that are designated as cash flow hedges, the gain or loss on the derivative is reported as a component of other comprehensive income (OCI) and reclassified into earnings in the same period or periods during which the hedged item affects earnings. For derivative financial instruments that are designated as fair value hedges, changes in the fair value of these derivatives are recognized in current period results. There were no outstanding fair value hedges as of March 31, 2024. The cash flow impact for all derivative financial instruments is reported in cash flows provided by operating activities on the consolidated statement of cash flows. The Company did not use net investment hedges for the periods presented. The effects of derivative instruments in the tables below are presented net of related income taxes, excluding any impacts of changes to income tax valuation allowances affecting results of operations or other comprehensive income, when applicable (see Note 14 for further explanation).
Assuming market prices remain constant with those at March 31, 2024, a pre-tax loss of $9.4 million is expected to be recognized over the next 12 months.
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Activity with regard to derivatives designated as cash flow hedges for the quarters ended March 31, 2024 and April 2, 2023 was as follows (in millions): 
Amount of Gain (Loss)
Recognized in OCI on
Derivatives
Amount of Gain (Loss)
Reclassified from
Accumulated OCI
into Income (a)
Quarter endedQuarter ended
Derivatives in Cash Flow Hedging RelationshipsMarch 31, 2024April 2, 2023March 31, 2024April 2, 2023
Nickel and other raw material contracts$(0.2)$(5.3)$ $5.3 
Natural gas contracts(1.4)(6.1)(1.8)(1.4)
Foreign exchange contracts0.2 0.1 0.2 0.1 
Interest rate swap (0.1)0.3 0.2 
Total$(1.4)$(11.4)$(1.3)$4.2 

(a)The gains (losses) reclassified from accumulated OCI into income related to the derivatives, with the exception of the interest rate swap, are presented in sales and cost of sales in the same period or periods in which the hedged item affects earnings. The gains (losses) reclassified from accumulated OCI into income on the interest rate swap are presented in interest expense in the same period as the interest expense on the Term Loan is recognized in earnings.
The disclosures of gains or losses presented above for nickel and other raw material contracts and foreign currency contracts do not take into account the anticipated underlying transactions. Since these derivative contracts represent hedges, the net effect of any gain or loss on results of operations may be fully or partially offset.
Note 9. Fair Value of Financial Instruments
The estimated fair value of financial instruments at March 31, 2024 was as follows: 
  Fair Value Measurements at Reporting Date Using
(In millions)Total
Carrying
Amount
Total
Estimated
Fair Value
Quoted Prices in
Active Markets for
Identical Assets (Level 1)
Significant
Observable
Inputs
(Level 2)
Cash and cash equivalents$394.4 $394.4 $394.4 $ 
Derivative financial instruments:
Assets0.5 0.5  0.5 
Liabilities10.7 10.7  10.7 
Debt (a)2,192.0 2,836.8 2,536.2 300.6 

The estimated fair value of financial instruments at December 31, 2023 was as follows: 
  Fair Value Measurements at Reporting Date Using
(In millions)Total
Carrying
Amount
Total
Estimated
Fair Value
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
Significant
Observable
Inputs
(Level 2)
Cash and cash equivalents$743.9 $743.9 $743.9 $ 
Derivative financial instruments:
Assets0.9 0.9  0.9 
Liabilities14.2 14.2  14.2 
Debt (a)2,199.2 2,746.7 2,438.9 307.8 
(a)The total carrying amount for debt for both periods excludes debt issuance costs related to the recognized debt liability which is presented in the consolidated balance sheet as a direct reduction from the carrying amount of the debt liability.
In accordance with accounting standards, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards established three levels of a fair value hierarchy that prioritize the inputs used to measure fair value. This hierarchy requires entities to maximize the use of
15


observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows:
Level 1 – Quoted prices in active markets for identical assets or liabilities.
Level 2 – Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period.

The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments:
Cash and cash equivalents: Fair value was determined using Level 1 information.
Derivative financial instruments: Fair values for derivatives were measured using exchange-traded prices for the hedged items. The fair value was determined using Level 2 information, including consideration of counterparty risk and the Company’s credit risk.
Short-term and long-term debt: The fair values of the Company’s publicly traded debt were based on Level 1 information. The fair values of the other short-term and long-term debt were determined using Level 2 information.
Note 10. Business Segments
The Company operates under two business segments: High Performance Materials & Components (HPMC) and Advanced Alloys & Solutions (AA&S). 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 credits/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. Following is certain financial information with respect to the Company’s business segments for the periods indicated (in millions):
Quarter ended
 March 31, 2024April 2, 2023
Total sales:
High Performance Materials & Components$571.9 $529.6 
Advanced Alloys & Solutions560.7 625.8 
1,132.6 1,155.4 
Intersegment sales:
High Performance Materials & Components42.0 58.5 
Advanced Alloys & Solutions47.7 58.8 
89.7 117.3 
Sales to external customers:
High Performance Materials & Components529.9 471.1 
Advanced Alloys & Solutions513.0 567.0 
$1,042.9 $1,038.1 
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Quarter ended
 March 31, 2024April 2, 2023
EBITDA:
High Performance Materials & Components$97.6 $81.6 
Advanced Alloys & Solutions71.8 83.7 
Total segment EBITDA169.4 165.3 
Corporate expenses(17.1)(16.9)
Closed operations and other expense(1.3)(1.3)
Depreciation & amortization (a)(36.0)(35.1)
Interest expense, net(26.6)(19.9)
Restructuring and other charges(3.1)(1.2)
Income before income taxes$85.3 $90.9 
a) The following is depreciation & amortization by each business segment:
Quarter ended
March 31, 2024April 2, 2023
High Performance Materials & Components$16.3 $17.4 
Advanced Alloys & Solutions18.0 16.1 
Other1.7 1.6 
$36.0 $35.1 
Restructuring and other charges of $3.1 million for the quarter ended March 31, 2024 include $2.9 million of start up costs, which are included within cost of sales on the consolidated statements of operations, and $0.2 million of restructuring charges (see Note 6). Restructuring and other charges for the quarter ended April 2, 2023 include $1.2 million of start up costs, which are classified within cost of sales on the consolidated statements of operations.
Note 11. Retirement Benefits
The Company has defined contribution retirement plans or defined benefit pension plans covering substantially all employees. Company contributions to defined contribution retirement plans are generally based on a percentage of eligible pay or based on hours worked. Benefits under the defined benefit pension plans are generally based on years of service and/or final average pay. The Company funds the U.S. pension plans in accordance with the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended. The Company also sponsors several postretirement plans covering certain collectively-bargained salaried and hourly employees. The plans provide health care and life insurance benefits for eligible retirees. In most retiree health care plans, Company contributions towards premiums are capped based on the cost as of a certain date, thereby creating a defined contribution. All defined benefit pension and retiree health care plans are closed to new entrants.
For the quarters ended March 31, 2024 and April 2, 2023, the components of pension and other postretirement benefit expense for the Company’s defined benefit plans included the following (in millions): 
Pension BenefitsOther Postretirement Benefits
Quarter endedQuarter ended
 March 31, 2024April 2, 2023March 31, 2024April 2, 2023
Service cost - benefits earned during the year$1.5 $1.6 $0.1 $0.2 
Interest cost on benefits earned in prior years4.1 24.0 2.5 2.7 
Expected return on plan assets(4.1)(25.7)  
Amortization of prior service cost (credit)0.1 0.1 (0.2)(0.2)
Amortization of net actuarial loss  1.3 1.5 
Total retirement benefit expense $1.6 $ $3.7 $4.2 

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Note 12. Income Taxes
The Company’s effective tax rate was 19.8%, resulting in an income tax provision of $16.9 million for the quarter ended March 31, 2024. The Company’s effective tax rate was 4.7%, resulting in an income tax provision of $4.3 million for the quarter ended April 2, 2023. The effective tax rate for the quarter ended March 31, 2024 included discrete tax benefits, primarily $3.0 million for share-based compensation. The Company’s effective tax rate for the quarter ended April 2, 2023 was impacted by the net valuation allowance position in the U.S. and the Company’s foreign earnings.
Note 13. Per Share Information
The following table sets forth the computation of basic and diluted income per common share: 
(In millions, except per share amounts)Quarter ended
March 31, 2024April 2, 2023
Numerator:
Numerator for basic income per common share –
Net income attributable to ATI$66.1 $84.5 
Effect of dilutive securities:
3.5% Convertible Senior Notes due 2025
2.1 2.6 
Numerator for diluted net income per common share –
Net income attributable to ATI after assumed conversions$68.2 $87.1 
Denominator:
Denominator for basic net income per common share – weighted average shares126.2 128.5 
Effect of dilutive securities:
Share-based compensation2.5 2.8 
3.5% Convertible Senior Notes due 2025
18.8 18.8 
Denominator for diluted net income per common share – adjusted weighted average shares and assumed conversions147.5 150.1 
Basic net income attributable to ATI per common share$0.52 $0.66 
Diluted net income attributable to ATI per common share$0.46 $0.58 
Common stock that would be issuable upon the assumed conversion of the 2025 Convertible Notes and other option equivalents and contingently issuable shares are excluded from the computation of contingently issuable shares, and therefore, from the denominator for diluted earnings per share, if the effect of inclusion is anti-dilutive. There were no anti-dilutive shares for the quarters ended March 31, 2024 and April 2, 2023.
Periodically, the Company’s Board of Directors authorizes the repurchase of ATI common stock (the “Share Repurchase Program”), the most recent of which was $150 million in November 2023. Repurchases under these programs are made in the open market or in privately negotiated transactions, with the amount and timing of repurchases depending on market conditions and corporate needs. Open market repurchases are structured to occur within the pricing and volume requirements of SEC Rule 10b-18. In the quarter ended March 31, 2024, ATI used $150.0 million to repurchase 3.4 million shares of its common stock under the Share Repurchase Program. In the quarter ended April 2, 2023, ATI used $10.1 million to repurchase 0.2 million shares of its common stock under the Share Repurchase Program. At March 31, 2024, the Company has utilized the full amount currently authorized under the Share Repurchase Program.
The Company’s share repurchases are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. Excise taxes incurred on share repurchases represent direct costs of the repurchase and are recorded as part of the cost basis of the shares within treasury stock. The cost of share repurchases for the quarter ended March 31, 2024 of $151.2 million differs from the repurchases of common stock amounts in the consolidated statements of cash flows due to these excise taxes.


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Note 14. Accumulated Other Comprehensive Income (Loss)
The changes in AOCI by component, net of tax, for the quarter ended March 31, 2024 were as follows (in millions):
Post-
retirement
benefit plans
Currency
translation
adjustment
DerivativesDeferred Tax Asset Valuation AllowanceTotal
Attributable to ATI:
Balance, December 31, 2023$(32.5)$(68.4)$(6.4)$24.1 $(83.2)
OCI before reclassifications  (6.4) (1.4) (7.8)
Amounts reclassified from AOCI(a)0.9 (b) (c)1.3 (d) 2.2 
Net current-period OCI 0.9 (6.4) (0.1) (5.6)
Balance, March 31, 2024$(31.6)$(74.8)$(6.5)$24.1 $(88.8)
Attributable to noncontrolling interests:
Balance, December 31, 2023$ $7.3 $ $ $7.3 
OCI before reclassifications  (0.2)   (0.2)
Amounts reclassified from AOCI  (b)     
Net current-period OCI  (0.2)   (0.2)
Balance, March 31, 2024$ $7.1 $ $ $7.1 
(a)Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 11).
(b)No amounts were reclassified to earnings.
(c)Amounts related to derivatives are included in sales, cost of goods sold or interest expense in the period or periods the hedged item affects earnings (see Note 8).
(d)Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates.
The changes in AOCI by component, net of tax, for the quarter ended April 2, 2023 were as follows (in millions):
Post-
retirement
benefit plans
Currency
translation
adjustment
DerivativesDeferred Tax Asset Valuation AllowanceTotal
Attributable to ATI:
Balance, January 1, 2023$(34.7)$(70.1)$13.5 $23.9 $(67.4)
OCI before reclassifications  (1.1) (11.4) (12.5)
Amounts reclassified from AOCI(a)1.1 (b) (c)(4.2)(d)(4.6)(7.7)
Net current-period OCI 1.1 (1.1) (15.6)(4.6)(20.2)
Balance, April 2, 2023$(33.6)$(71.2)$(2.1)$19.3 $(87.6)
Attributable to noncontrolling interests:
Balance, January 1, 2023$ $7.7 $ $ $7.7 
OCI before reclassifications  4.4    4.4 
Amounts reclassified from AOCI  (b)     
Net current-period OCI  4.4    $4.4 
Balance, April 2, 2023$ $12.1 $ $ $12.1 
(a)Amounts were included in net periodic benefit cost for pension and other postretirement benefit plans (see Note 11).
(b)No amounts were reclassified to earnings.
(c)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 8).
(d)Represents the net change in deferred tax asset valuation allowances on changes in AOCI balances between the balance sheet dates.
19


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 quarters ended March 31, 2024 and April 2, 2023 were as follows: 
 
Details about AOCI Components
(In millions)
Three months ended March 31, 2024Three months ended April 2, 2023Affected line item in the statements
of operations
Postretirement benefit plans
Prior service credit$0.1 0.1 (a) 
Actuarial losses(1.3)(1.5)(a) 
(1.2)(1.4)(c) Total before tax
(0.3)(0.3)Tax benefit (d)
$(0.9)$(1.1)Net of tax
Derivatives