In managing the overall capital structure of the Company, some of the measures that we focus on are net debt to net capitalization, which is the percentage of debt, net of cash that may be available to reduce borrowings, to the total invested and borrowed capital of ATI (excluding noncontrolling interest), and total debt to total ATI capitalization, which excludes cash balances.

Allegheny Technologies Incorporated and Subsidiaries

Non-GAAP Financial Measures

(Unaudited, dollars in millions, except per share amounts)

The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, management believes that certain non-GAAP financial measures, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The following table provides the calculation of the non-GAAP financial measures discussed in the Company's press release dated May 5, 2020:

		Three Months Ended
		March 31, 2020
Net income attributable to ATI		$	21.1
Adjust for special items:
Restructuring, net of tax (a)		5.5
Net income attributable to ATI excluding special items		$	26.6
		Per Diluted Share *
Net income attributable to ATI		$	0.16
Adjust for special items:
Restructuring, net of tax		0.04
Net income attributable to ATI excluding special items		$	0.20
Earnings before interest, taxes, depreciation and amortization (EBITDA)
		Three Months Ended
		March 31, 2020				March 31, 2019
Net income		$	23.6			$	16.3
(+) Depreciation and Amortization		37.3				38.7
(+) Interest Expense		21.9				24.8
(+) Income Tax Provision		10.8				0.8
EBITDA		$	93.6			$	80.6
Adjustments:
(+) Restructuring (a)		8.0				—
Adjusted EBITDA		$	101.6			$	80.6

* Presentation of adjusted results per diluted share includes the effects of convertible debt, if dilutive.

(a) First quarter 2020 results include an $8.0 million pre-tax restructuring charge for a voluntary retirement incentive program.

		First Quarter 2019
		Net Income					Per Diluted Share
Net income attributable to ATI		$	15.0				$	0.12
Tax rate impact (i)		(4.6		)			(0.04		)
Adjusted net income attributable to ATI		$	10.4				$	0.08

(i) Tax rate impact adjusts first quarter 2019 reported earnings per share, which used a 4.7% effective tax rate applied to income before taxes, to a 31.4% effective tax rate applied to income before taxes, which is the year-to-date tax rate for the quarter ended March 31, 2020, including the impacts of potentially dilutive securities.

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