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<br /> 2017<br /> RELENTLESS INNOVATION.®<br /> SUSTAINABLE GROWTH.<br /> FINANCIAL OVERVIEW 1<br /> MESSAGE FROM THE CHAIRMAN, PRESIDENT AND CEO 2<br /> ATI MARKETS & PRODUCTS 5<br /> SEGMENT INFORMATION 5<br /> CORPORATE SELF-GOVERNANCE 6<br /> MANAGEMENT TEAM 7<br /> BOARD OF DIRECTORS 8<br /> ANNUAL REPORT ON FORM 10-K F1<br /> NON-GAAP FINANCIAL MEASURES 10<br /> GLOSSARY OF TERMS <a title="ATI-2017 Annual Report page 1" href="http://viewer.zmags.com/publication/75732962?page=1"> 2017 RELENTLESS INNOVATIO</a> <a title="ATI-2017 Annual Report page 2" href="http://viewer.zmags.com/publication/75732962?page=2"> FINANCIAL OVERVIEW </a> <a title="ATI-2017 Annual Report page 3" href="http://viewer.zmags.com/publication/75732962?page=3"> 2O17 FINANCIAL OVERVIEW In millions, except pe</a> <a title="ATI-2017 Annual Report page 4" href="http://viewer.zmags.com/publication/75732962?page=4"> MESSAGE FROM THE CHAIRMAN, PRESIDENT AND CEO </a> <a title="ATI-2017 Annual Report page 5" href="http://viewer.zmags.com/publication/75732962?page=5"> Our FRP segment capitalized on strategic decision</a> <a title="ATI-2017 Annual Report page 6" href="http://viewer.zmags.com/publication/75732962?page=6"> titanium powder materials. We are in the early ph</a> <a title="ATI-2017 Annual Report page 7" href="http://viewer.zmags.com/publication/75732962?page=7"> ATI MARKETS & PRODUCTS Total ATI Sales Sales (i</a> <a title="ATI-2017 Annual Report page 8" href="http://viewer.zmags.com/publication/75732962?page=8"> OUR COMMITMENT TO INTEGRITY We at ATI are commi</a> <a title="ATI-2017 Annual Report page 9" href="http://viewer.zmags.com/publication/75732962?page=9"> Richard J. Harshman Elliot S. </a> <a title="ATI-2017 Annual Report page 10" href="http://viewer.zmags.com/publication/75732962?page=10"> BOARD OF DIRECTORS Richard J. Harshman Chairman,</a> <a title="ATI-2017 Annual Report page 11" href="http://viewer.zmags.com/publication/75732962?page=11"> UNITED STATES SECURITIES AND EXCHANGE COMMISSION </a> <a title="ATI-2017 Annual Report page 12" href="http://viewer.zmags.com/publication/75732962?page=12"> INDEX Page Number PART I Item 1. Business </a> <a title="ATI-2017 Annual Report page 13" href="http://viewer.zmags.com/publication/75732962?page=13"> PART I Item 1. Business The Company Allegheny Te</a> <a title="ATI-2017 Annual Report page 14" href="http://viewer.zmags.com/publication/75732962?page=14"> combination of properties that help to increase j</a> <a title="ATI-2017 Annual Report page 15" href="http://viewer.zmags.com/publication/75732962?page=15"> Medical. ATI's advanced specialty materials are u</a> <a title="ATI-2017 Annual Report page 16" href="http://viewer.zmags.com/publication/75732962?page=16"> Principal competitors in the HPMC segment include</a> <a title="ATI-2017 Annual Report page 17" href="http://viewer.zmags.com/publication/75732962?page=17"> Raw Materials and Supplies Substantially all raw </a> <a title="ATI-2017 Annual Report page 18" href="http://viewer.zmags.com/publication/75732962?page=18"> more effectively to markets in China and other As</a> <a title="ATI-2017 Annual Report page 19" href="http://viewer.zmags.com/publication/75732962?page=19"> Our Corporate Guidelines for Business Conduct and</a> <a title="ATI-2017 Annual Report page 20" href="http://viewer.zmags.com/publication/75732962?page=20"> Risks Associated with the Oil & Gas Industry. The</a> <a title="ATI-2017 Annual Report page 21" href="http://viewer.zmags.com/publication/75732962?page=21"> determination requiring the impairment of a signi</a> <a title="ATI-2017 Annual Report page 22" href="http://viewer.zmags.com/publication/75732962?page=22"> We believe that we operate our businesses in comp</a> <a title="ATI-2017 Annual Report page 23" href="http://viewer.zmags.com/publication/75732962?page=23"> · limit our ability to borrow </a> <a title="ATI-2017 Annual Report page 24" href="http://viewer.zmags.com/publication/75732962?page=24"> Insurance. We have maintained various forms of in</a> <a title="ATI-2017 Annual Report page 25" href="http://viewer.zmags.com/publication/75732962?page=25"> condition or liquidity. The resolution in any rep</a> <a title="ATI-2017 Annual Report page 26" href="http://viewer.zmags.com/publication/75732962?page=26"> Comparison of Cumulative Five Year Total Return </a> <a title="ATI-2017 Annual Report page 27" href="http://viewer.zmags.com/publication/75732962?page=27"> Item 6. Selected Financial Data (In millions) </a> <a title="ATI-2017 Annual Report page 28" href="http://viewer.zmags.com/publication/75732962?page=28"> (In millions, except per share amounts and ratios</a> <a title="ATI-2017 Annual Report page 29" href="http://viewer.zmags.com/publication/75732962?page=29"> Item 7. Management's Discussion and Analysis of F</a> <a title="ATI-2017 Annual Report page 30" href="http://viewer.zmags.com/publication/75732962?page=30"> A summary of our results is as follows: (Dollars</a> <a title="ATI-2017 Annual Report page 31" href="http://viewer.zmags.com/publication/75732962?page=31"> Outlook We expect continued revenue growth and o</a> <a title="ATI-2017 Annual Report page 32" href="http://viewer.zmags.com/publication/75732962?page=32"> $(5.97) per share, and a 2015 loss attributable t</a> <a title="ATI-2017 Annual Report page 33" href="http://viewer.zmags.com/publication/75732962?page=33"> 2017 Compared to 2016 Sales for the HPMC segment</a> <a title="ATI-2017 Annual Report page 34" href="http://viewer.zmags.com/publication/75732962?page=34"> Use of these newer materials, particularly for je</a> <a title="ATI-2017 Annual Report page 35" href="http://viewer.zmags.com/publication/75732962?page=35"> 2016 Compared to 2015 Sales for the HPMC segment</a> <a title="ATI-2017 Annual Report page 36" href="http://viewer.zmags.com/publication/75732962?page=36"> Flat Rolled Products (In millions) </a> <a title="ATI-2017 Annual Report page 37" href="http://viewer.zmags.com/publication/75732962?page=37"> Comparative information for the Flat Rolled Produ</a> <a title="ATI-2017 Annual Report page 38" href="http://viewer.zmags.com/publication/75732962?page=38"> 2016 Compared to 2015 Sales for the FRP segment i</a> <a title="ATI-2017 Annual Report page 39" href="http://viewer.zmags.com/publication/75732962?page=39"> Comparative information for the Flat Rolled Produ</a> <a title="ATI-2017 Annual Report page 40" href="http://viewer.zmags.com/publication/75732962?page=40"> for industrial titanium products from global mark</a> <a title="ATI-2017 Annual Report page 41" href="http://viewer.zmags.com/publication/75732962?page=41"> We recognized $23.8 million of facility shutdown </a> <a title="ATI-2017 Annual Report page 42" href="http://viewer.zmags.com/publication/75732962?page=42"> Interest expense in 2017, 2016, and 2015 was redu</a> <a title="ATI-2017 Annual Report page 43" href="http://viewer.zmags.com/publication/75732962?page=43"> On November 7, 2017, we issued 17 million shares </a> <a title="ATI-2017 Annual Report page 44" href="http://viewer.zmags.com/publication/75732962?page=44"> The components of managed working capital were as</a> <a title="ATI-2017 Annual Report page 45" href="http://viewer.zmags.com/publication/75732962?page=45"> Total debt to total capitalization was 47.2% at D</a> <a title="ATI-2017 Annual Report page 46" href="http://viewer.zmags.com/publication/75732962?page=46"> (A) Amounts include contractual interest</a> <a title="ATI-2017 Annual Report page 47" href="http://viewer.zmags.com/publication/75732962?page=47"> At December 31, 2017, the ATI Pension Plan was ap</a> <a title="ATI-2017 Annual Report page 48" href="http://viewer.zmags.com/publication/75732962?page=48"> costs generally results in a benefit to operating</a> <a title="ATI-2017 Annual Report page 49" href="http://viewer.zmags.com/publication/75732962?page=49"> assets were less than their carrying value. A $47</a> <a title="ATI-2017 Annual Report page 50" href="http://viewer.zmags.com/publication/75732962?page=50"> The evaluation includes the consideration of all </a> <a title="ATI-2017 Annual Report page 51" href="http://viewer.zmags.com/publication/75732962?page=51"> beginning after December 31, 2017. We continue to</a> <a title="ATI-2017 Annual Report page 52" href="http://viewer.zmags.com/publication/75732962?page=52"> With respect to our postretirement plans, under m</a> <a title="ATI-2017 Annual Report page 53" href="http://viewer.zmags.com/publication/75732962?page=53"> enacted U.S. federal tax rate under the Tax Act, </a> <a title="ATI-2017 Annual Report page 54" href="http://viewer.zmags.com/publication/75732962?page=54"> customer agreements with limited duration, 2018 g</a> <a title="ATI-2017 Annual Report page 55" href="http://viewer.zmags.com/publication/75732962?page=55"> example, in 2017 we used approximately 100 millio</a> <a title="ATI-2017 Annual Report page 56" href="http://viewer.zmags.com/publication/75732962?page=56"> Item 8. Financial Statements and Supplementary Da</a> <a title="ATI-2017 Annual Report page 57" href="http://viewer.zmags.com/publication/75732962?page=57"> Allegheny Technologies Incorporated and Subsidiar</a> <a title="ATI-2017 Annual Report page 58" href="http://viewer.zmags.com/publication/75732962?page=58"> Allegheny Technologies Incorporated and Subsidiar</a> <a title="ATI-2017 Annual Report page 59" href="http://viewer.zmags.com/publication/75732962?page=59"> Allegheny Technologies Incorporated and Subsidiar</a> <a title="ATI-2017 Annual Report page 60" href="http://viewer.zmags.com/publication/75732962?page=60"> Allegheny Technologies Incorporated and Subsidiar</a> <a title="ATI-2017 Annual Report page 61" href="http://viewer.zmags.com/publication/75732962?page=61"> Allegheny Technologies Incorporated and Subsidiar</a> <a title="ATI-2017 Annual Report page 62" href="http://viewer.zmags.com/publication/75732962?page=62"> Notes to Consolidated Financial Statements Note </a> <a title="ATI-2017 Annual Report page 63" href="http://viewer.zmags.com/publication/75732962?page=63"> that the need for the reserve is identified. Howe</a> <a title="ATI-2017 Annual Report page 64" href="http://viewer.zmags.com/publication/75732962?page=64"> Company's recommendation of a remedy or commitmen</a> <a title="ATI-2017 Annual Report page 65" href="http://viewer.zmags.com/publication/75732962?page=65"> New Accounting Pronouncements Adopted In January</a> <a title="ATI-2017 Annual Report page 66" href="http://viewer.zmags.com/publication/75732962?page=66"> In March 2017, the FASB issued changes to the acc</a> <a title="ATI-2017 Annual Report page 67" href="http://viewer.zmags.com/publication/75732962?page=67"> Note 2. Inventories Inventories at December 31, 2</a> <a title="ATI-2017 Annual Report page 68" href="http://viewer.zmags.com/publication/75732962?page=68"> Construction in progress at December 31, 2017 and</a> <a title="ATI-2017 Annual Report page 69" href="http://viewer.zmags.com/publication/75732962?page=69"> Other intangible assets, which are included in Ot</a> <a title="ATI-2017 Annual Report page 70" href="http://viewer.zmags.com/publication/75732962?page=70"> Estimates of AROs are evaluated annually in the f</a> <a title="ATI-2017 Annual Report page 71" href="http://viewer.zmags.com/publication/75732962?page=71"> Note 8. Debt Debt at December 31, 2017 and 2016 w</a> <a title="ATI-2017 Annual Report page 72" href="http://viewer.zmags.com/publication/75732962?page=72"> unamortized portion of the $1.0 million of previo</a> <a title="ATI-2017 Annual Report page 73" href="http://viewer.zmags.com/publication/75732962?page=73"> The Company has no off-balance sheet financing re</a> <a title="ATI-2017 Annual Report page 74" href="http://viewer.zmags.com/publication/75732962?page=74"> The Company may enter into derivative interest ra</a> <a title="ATI-2017 Annual Report page 75" href="http://viewer.zmags.com/publication/75732962?page=75"> Activity with regard to derivatives designated as</a> <a title="ATI-2017 Annual Report page 76" href="http://viewer.zmags.com/publication/75732962?page=76"> The estimated fair value of financial instruments</a> <a title="ATI-2017 Annual Report page 77" href="http://viewer.zmags.com/publication/75732962?page=77"> The Company instituted several liability manageme</a> <a title="ATI-2017 Annual Report page 78" href="http://viewer.zmags.com/publication/75732962?page=78"> A reconciliation of the funded status for the Co</a> <a title="ATI-2017 Annual Report page 79" href="http://viewer.zmags.com/publication/75732962?page=79"> Changes to accumulated other comprehensive loss r</a> <a title="ATI-2017 Annual Report page 80" href="http://viewer.zmags.com/publication/75732962?page=80"> The following table summarizes expected benefit p</a> <a title="ATI-2017 Annual Report page 81" href="http://viewer.zmags.com/publication/75732962?page=81"> The fair values of the Company's pension plan ass</a> <a title="ATI-2017 Annual Report page 82" href="http://viewer.zmags.com/publication/75732962?page=82"> The fair value of Level 3 pension plan assets for</a> <a title="ATI-2017 Annual Report page 83" href="http://viewer.zmags.com/publication/75732962?page=83"> The Company's participation in multiemployer plan</a> <a title="ATI-2017 Annual Report page 84" href="http://viewer.zmags.com/publication/75732962?page=84"> Note 12. Accumulated Other Comprehensive Income (</a> <a title="ATI-2017 Annual Report page 85" href="http://viewer.zmags.com/publication/75732962?page=85"> Reclassifications out of AOCI for the fiscal year</a> <a title="ATI-2017 Annual Report page 86" href="http://viewer.zmags.com/publication/75732962?page=86"> Upon adoption of the 2017 Incentive Plan, all new</a> <a title="ATI-2017 Annual Report page 87" href="http://viewer.zmags.com/publication/75732962?page=87"> Compensation expense related to all nonvested sto</a> <a title="ATI-2017 Annual Report page 88" href="http://viewer.zmags.com/publication/75732962?page=88"> Total Shareholder Return: Award opportunities und</a> <a title="ATI-2017 Annual Report page 89" href="http://viewer.zmags.com/publication/75732962?page=89"> We recognize deferred tax assets to the extent th</a> <a title="ATI-2017 Annual Report page 90" href="http://viewer.zmags.com/publication/75732962?page=90"> The Company continues to maintain a valuation all</a> <a title="ATI-2017 Annual Report page 91" href="http://viewer.zmags.com/publication/75732962?page=91"> In general, the Company is responsible for filing</a> <a title="ATI-2017 Annual Report page 92" href="http://viewer.zmags.com/publication/75732962?page=92"> Note 15. Business Segments The Company operates </a> <a title="ATI-2017 Annual Report page 93" href="http://viewer.zmags.com/publication/75732962?page=93"> (In millions) </a> <a title="ATI-2017 Annual Report page 94" href="http://viewer.zmags.com/publication/75732962?page=94"> Certain additional information regarding the Comp</a> <a title="ATI-2017 Annual Report page 95" href="http://viewer.zmags.com/publication/75732962?page=95"> Note 16. Restructuring Charges 2016 For the yea</a> <a title="ATI-2017 Annual Report page 96" href="http://viewer.zmags.com/publication/75732962?page=96"> · As announced in October 2015, in the fourth </a> <a title="ATI-2017 Annual Report page 97" href="http://viewer.zmags.com/publication/75732962?page=97"> Note 18. Per Share Information The following tabl</a> <a title="ATI-2017 Annual Report page 98" href="http://viewer.zmags.com/publication/75732962?page=98"> Allegheny Technologies Incorporated Financial Inf</a> <a title="ATI-2017 Annual Report page 99" href="http://viewer.zmags.com/publication/75732962?page=99"> Allegheny Technologies Incorporated Financial Inf</a> <a title="ATI-2017 Annual Report page 100" href="http://viewer.zmags.com/publication/75732962?page=100"> Condensed Statements of Cash Flows For the year e</a> <a title="ATI-2017 Annual Report page 101" href="http://viewer.zmags.com/publication/75732962?page=101"> Allegheny Technologies Incorporated Financial Inf</a> <a title="ATI-2017 Annual Report page 102" href="http://viewer.zmags.com/publication/75732962?page=102"> Allegheny Technologies Incorporated Financial Inf</a> <a title="ATI-2017 Annual Report page 103" href="http://viewer.zmags.com/publication/75732962?page=103"> Condensed Statements of Cash Flows For the year e</a> <a title="ATI-2017 Annual Report page 104" href="http://viewer.zmags.com/publication/75732962?page=104"> Allegheny Technologies Incorporated Financial Inf</a> <a title="ATI-2017 Annual Report page 105" href="http://viewer.zmags.com/publication/75732962?page=105"> Note 20. Commitments and Contingencies Rental exp</a> <a title="ATI-2017 Annual Report page 106" href="http://viewer.zmags.com/publication/75732962?page=106"> Note 21. Selected Quarterly Financial Data (Unaud</a> <a title="ATI-2017 Annual Report page 107" href="http://viewer.zmags.com/publication/75732962?page=107"> Item 9. Changes in and Disagreements with Account</a> <a title="ATI-2017 Annual Report page 108" href="http://viewer.zmags.com/publication/75732962?page=108"> Report of Independent Registered Public Accountin</a> <a title="ATI-2017 Annual Report page 109" href="http://viewer.zmags.com/publication/75732962?page=109"> Item 9B. Other Information Not applicable. PART </a> <a title="ATI-2017 Annual Report page 110" href="http://viewer.zmags.com/publication/75732962?page=110"> (2) Outstanding stock-settled awards are not </a> <a title="ATI-2017 Annual Report page 111" href="http://viewer.zmags.com/publication/75732962?page=111"> EXHIBIT INDEX Exhibit No. </a> <a title="ATI-2017 Annual Report page 112" href="http://viewer.zmags.com/publication/75732962?page=112"> Exhibit No. </a> <a title="ATI-2017 Annual Report page 113" href="http://viewer.zmags.com/publication/75732962?page=113"> Exhibit No. </a> <a title="ATI-2017 Annual Report page 114" href="http://viewer.zmags.com/publication/75732962?page=114"> SIGNATURES Pursuant to the requirements of Secti</a> <a title="ATI-2017 Annual Report page 115" href="http://viewer.zmags.com/publication/75732962?page=115"> PAGE LEFT INTENTIONALLY BLANK </a> <a title="ATI-2017 Annual Report page 116" href="http://viewer.zmags.com/publication/75732962?page=116"> Allegheny Technologies Incorporated and Subsidiar</a> <a title="ATI-2017 Annual Report page 117" href="http://viewer.zmags.com/publication/75732962?page=117"> GLOSSARY OF TERMS Additive Manufacturing Additiv</a> <a title="ATI-2017 Annual Report page 118" href="http://viewer.zmags.com/publication/75732962?page=118"> Isothermal Forging A hot forging process in a vac</a> <a title="ATI-2017 Annual Report page 119" href="http://viewer.zmags.com/publication/75732962?page=119"> INVESTOR INFORMATION CORPORATE HEADQUART</a> <a title="ATI-2017 Annual Report page 120" href="http://viewer.zmags.com/publication/75732962?page=120"> Allegheny Technologies Incorporated Corporate Hea</a>