Summary
ATI Inc. (ATI) filed an 8-K on October 31, 2016, to report on costs associated with exit or disposal activities. The company announced the permanent closure of its Midland, PA melt and stainless steel sheet finishing facility, as well as the Bagdad, PA grain-oriented electrical steel finishing facility. These facilities had been indefinitely idled earlier in 2016, and management has determined they cannot achieve an acceptable rate of return.
Key Highlights
- 1Permanent closure of Midland, PA melt and stainless steel sheet finishing facility.
- 2Permanent closure of Bagdad, PA grain-oriented electrical steel finishing facility.
- 3Facilities were previously indefinitely idled in 2016.
- 4Management determined facilities cannot operate at an acceptable rate of return.
- 5Fourth quarter 2016 results expected to include $4 million to $14 million for contract termination costs.
- 6Approximately $3 million in termination benefits for pension and other postretirement obligations.
- 7Approximately $2 million for supplemental unemployment benefits.
Frequently Asked Questions
ATI is permanently closing its Midland, PA melt and stainless steel sheet finishing facility and its Bagdad, PA grain-oriented electrical steel finishing facility.
ATI expects Q4 2016 results to include $4 million to $14 million in contract termination costs, approximately $3 million for pension and other postretirement benefit obligations, and approximately $2 million for supplemental unemployment benefits.
Cash expenditures for contract termination and supplemental unemployment benefits are expected to be incurred through the first quarter of 2018.
Management has concluded that these facilities cannot be operated at an acceptable rate of return.