Allegheny Technologies Incorporated 11-K
Table of Contents

 
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

         
 
  þ   ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
 
       
    FOR THE FISCAL YEAR ENDED DECEMBER 31, 2007
 
       
 
  o   TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
 
       
    FOR THE TRANSITION PERIOD FROM                      TO                     
 
       
    COMMISSION FILE NUMBER 1-12001

THE 401(K) PLAN
(Title of Plan)

ALLEGHENY TECHNOLOGIES INCORPORATED

(Name of Issuer of securities held pursuant to the Plan)

1000 Six PPG Place, Pittsburgh, Pennsylvania 15222-5479
(Address of Plan and principal executive offices of Issuer)

 
 

 


Table of Contents

Audited Financial Statements and Supplemental Schedule
The 401(k) Plan
Years Ended December 31, 2007 and 2006
With Report of Independent Registered Public Accounting Firm

 


The 401(k) Plan
Audited Financial Statements
and Supplemental Schedule
Years Ended December 31, 2007 and 2006
Contents
         
    1  
 
       
Audited Financial Statements
       
 
       
    2  
    3  
    4  
 
       
Supplemental Schedule
       
 
       
    12  
 
       
       

 


Table of Contents

Report of Independent Registered Public Accounting Firm
Allegheny Technologies Incorporated
We have audited the accompanying statements of net assets available for benefits of The 401(k) Plan as of December 31, 2007 and 2006, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan at December 31, 2007 and 2006, and the changes in its net assets available for benefits for the years then ended, in conformity with U.S. generally accepted accounting principles
Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2007 is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.
/s/ Ernst & Young LLP
Pittsburgh, Pennsylvania
June 27, 2008

1


Table of Contents

The 401(k) Plan
Statements of Net Assets Available for Benefits
                 
    December 31  
    2007     2006  
     
Investments at fair value:
               
 
Interest in common collective trusts
  $ 83,628,796     $ 276,934  
Interest in registered investment companies
    65,272,968       88,959,173  
Interest in synthetic investment contracts
    40,466,909        
Corporate common stocks
    34,273,938       38,265,185  
Participant loans
    10,431,086       8,937,587  
Interest-bearing cash
    2,128,019       6,770  
Interest in Allegheny Master Trust
          83,711,594  
Overdraft
          (2,764 )
     
Total investments at fair value
    236,201,716       220,154,479  
 
               
Contribution receivable
    463,582        
Other payables, net
          (180,621 )
     
Net assets available for benefits at fair value
    236,665,298       219,973,858  
Adjustment from fair value to contract value for fully benefit-responsive investment contracts
    144,856       572,611  
     
Net assets available for benefits
  $ 236,810,154     $ 220,546,469  
     
See accompanying notes.

2


Table of Contents

The 401(k) Plan
Statements of Changes in Net Assets Available for Benefits
                 
    Years Ended December 31  
    2007     2006  
     
Contributions:
               
Employer
  $ 7,127,464     $ 5,712,993  
Employee
    17,716,776       14,493,408  
     
Total contributions
    24,844,240       20,206,401  
 
               
Investment income:
               
Net gain from interest in registered investment companies
    5,651,790       7,937,943  
Net gain from interest in Allegheny Master Trust
    3,786,688       7,197,627  
Interest income
    1,080,600       550,565  
Net unrealized/realized gain (loss) on corporate common stocks
    (650,163 )     27,241,550  
Net gain from interest in common collective trusts
    220,632       16,432  
Dividend income
    107,703       208,311  
Other income
    375,082       877  
     
Total investment income
    10,572,332       43,153,305  
     
 
    35,416,572       63,359,706  
 
               
Distributions to participants
    (19,103,361 )     (13,591,061 )
Administrative expenses and other, net
    (49,526 )     (48,886 )
     
 
    (19,152,887 )     (13,639,947 )
     
 
               
Net increase in net assets available for benefits
    16,263,685       49,719,759  
Net assets available for benefits at beginning of year
    220,546,469       170,826,710  
     
Net assets available for benefits at end of year
  $ 236,810,154     $ 220,546,469  
     
See accompanying notes.

3


Table of Contents

The 401(k) Plan
Notes to Financial Statements
1. Significant Accounting Policies
Use of Estimates and Basis of Accounting
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
The financial statements are prepared under the accrual basis of accounting.
Accounting Pronouncement
As described in Financial Accounting Standards Board Staff Position (FSP) AAG INV-1 and SOP 94-4-1, Reporting of Fully Benefit-Responsive Investment Contracts Held by Certain Investment Companies Subject to the AICPA Investment Company Guide and Defined-Contribution Health and Welfare and Pension Plans, fully benefit-responsive investment contracts held by a defined contribution plan are required to be reported at fair value in the Plan’s Statement of Net Assets Available for Benefits with a corresponding adjustment to reflect these investments at contract value.
In September 2006, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 157, Fair Value Measurement (FAS 157). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements.  FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007. Plan management is currently evaluating the effect that the provisions of FAS 157 will have on the Plan’s financial statements.
Investment Valuation and Income recognition
The Plan’s investments are stated at fair value except for its benefit-responsive investment contracts, which are valued at contract value (see Note 3). Quoted market prices are used to value investments. Units of registered investment companies are valued at the net asset value of shares held by the Plan at year end. The fair value of the participation units in common collective trusts is based on quoted redemption value on the last business day of the Plan’s year-end. Participant loans are valued at their outstanding balances, which approximate fair value.
Fully benefit-responsive guaranteed investment contracts (GICs) and synthetic investment contracts (SICs) are stated at contract value which is equal to principal balance plus accrued interest. As provided in the FSP, an investment contract is generally permitted to be valued at contract value, rather than fair value, to the extent it is fully benefit-responsive. Fair value of the GICs is estimated by discounting the weighted average cash flows at the then-current interest crediting rate for a comparable maturity investment contract. Fair value of the SICs is estimated based on the fair value of each contract’s supporting assets at December 31, 2007 and 2006.

4


Table of Contents

The 401(k) Plan
Notes to Financial Statements (continued)
1. Significant Accounting Policies (continued)
Participants may ordinarily direct the withdrawal or transfer of all or a portion of their investment at contract value. There are no reserves against contract value for credit risk of the contract issuer or otherwise.
Although it is management’s intention to hold the investment contracts in the Standish Mellon Stable Value Fund until maturity, certain investment contracts provide for adjustments to contract value for withdrawals made prior to maturity.
2. Description of the Plan
The 401(k) Plan (the Plan) is a defined contribution plan and is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA).
The purpose of the Plan is to provide retirement benefits to eligible employees through Company contributions and to encourage employee thrift by permitting eligible employees to defer a part of their compensation and contribute such deferral to the Plan. The Plan allows employees to contribute a portion of eligible wages each pay period through payroll deductions subject to Internal Revenue Code limitations. Qualifying employee contributions are partially matched by the respective employing companies which are affiliates of Allegheny Technologies Incorporated (ATI, the Plan Sponsor), up to the lesser of a maximum of $1,000 annually for each participant, or 50% of participants’ deferrals up to a maximum of 3.5% of total eligible wages (except for Allvac and Wah Chang). For hourly employees of the Casting Service operation, the employing company matches 100% of the employee contributions up to 3.5% of total eligible wages. In addition, for certain Metalworking products union employees annual flat dollar contributions will be paid into the Plan at the end of each year provided the following criteria are met: the employee must have contributed a minimum of 2% of their total earnings for the year into the Plan; the employee must have completed a minimum of 1,000 hours during the calendar year; and the employee must be an active, nonunion employee as of December 31st of that year. The exceptions to this rule for certain Metalworking Products union employees are that 1.) employees who retire during the calendar year will remain eligible for this contribution, so long as they meet the 1,000-hour rule; such retirees will receive a prorated contribution, based on the number of months they worked in the year; however, an employee who terminates (not retires) prior to December 31st will not be eligible for this flat dollar contribution, regardless of the number of hours worked, and 2.) hourly bargained employees at the Casting Service operation receive the annual flat dollar contributions notwithstanding the above conditions. For certain union employees of Portland Forge, the matching rate is at 100% but is limited to a maximum matching contribution of $1,000 and the Company will also make contributions of $0.25 per hour worked.

5


Table of Contents

The 401(k) Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
The flat dollar contribution amounts for eligible Casting Service employees are based on the employee’s years of service, as follows:
         
Years   Annual Amount of Contribution
 
0 to 4
  $ 100  
5 to 9
    500  
10 to 14
    600  
15 to 19
    700  
20 to 24
    800  
25 to 29
    1,000  
30 to 34
    1,500  
35 or more
    2,000  
The flat dollar contribution amounts for eligible Allvac and Wah Chang employees are based on the employee’s years of service, as follows:
         
Years   Annual Amount of Contribution
 
0 to 4
  $ 125  
5 to 9
    625  
10 to 14
    750  
15 to 19
    875  
20 to 24
    1,000  
25 to 29
    1,250  
30 to 34
    1,875  
35 or more
    2,500  
The Plan allows participants to direct their contributions, and contributions made on their behalf, to any of the investment alternatives. Unless otherwise specified by the participant, employer contributions are made to the State Street Target Retirement Fund that most closely matches the participant’s 65th birthday date (e.g., State Street Target Retirement Fund 2020). Separate accounts are maintained by the Plan Sponsor for each participating employee. Trustee fees and asset management fees charged by the Plan’s trustees, Mellon Bank, N.A., prior to September 1, 2007 and thereafter Mercer Trust Company, for the administration of all funds are charged against net assets available for benefits of the respective fund. Certain other expenses of administering the Plan are paid by the Plan Sponsor.
Participants may make “in-service” and hardship withdrawals as outlined in the plan document. Participants are fully vested in their entire participant account balance.

6


Table of Contents

The 401(k) Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
Active employees can borrow up to 50% of their vested account balances minus any outstanding loans. The loan amounts are further limited to a minimum of $500 and a maximum of $50,000, and an employee can obtain no more than three loans at one time. Interest rates are determined based on commercially accepted criteria, and payment schedules vary based on the type of the loan. General-purpose loans are repaid over 6 to 60 months, and primary residence loans are repaid over periods up to 180 months. Payments are made by payroll deductions.
Further information about the Plan, including eligibility, vesting, contributions, and withdrawals, is contained in the plan document, summary plan description, and related contracts. These documents are available from the Plan Sponsor.
3. Investments
Prior to September 1, 2007, certain of the Plan’s investments were in the Allegheny Master Trust, which had three separately managed institutional investment accounts: the T. Rowe Price Structured Research Common Trust Fund, the Alliance Capital Growth Pool, and the Standish Mellon Fixed Income Fund, which were valued on a unitized basis (collectively, the “Allegheny Master Trust”).
On September 1, 2007, as part of a change in the administration of the Plan, including changing the record keeper to Mercer Human Resources from Affiliated Computer Services, Inc., and changing the trustee to Mercer Trust Company from Mellon Bank, N.A., the investment options available to participants under the Plan were changed. Additionally, the Plan liquidated its investment in the Allegheny Master Trust.
The Allegheny Master Trust was established for the investment of assets of the Plan, and several other ATI sponsored retirement plans. Each participating retirement plan had an undivided interest in the Allegheny Master Trust. Investment income and expenses were allocated to the plans based upon their pro rata share in the net assets on the Master Trust. At December 31, 2006, the Plan’s interest in the net assets of the Alliance Capital Growth Pool, the Standish Mellon Fixed Income Fund, and the T. Rowe Price Structured Research Common Trust Fund held within the Allegheny Master Trust was as follows:
         
T. Rowe Price Structured Research Common Trust Fund
    57.55 %
Standish Mellon Fixed Income Fund
    17.24  
Alliance Capital Growth Pool
    5.66  

7


Table of Contents

The 401(k) Plan
Notes to Financial Statements (continued)
3. Investments (continued)
The composition of the net assets of the Standish Mellon Fixed Income Fund held within the Allegheny Master Trust at December 31, 2006 was as follows:
         
Guaranteed investment contracts:
       
Principal Life
  $ 1,368,618  
New York Life Insurance Company
    895,330  
 
     
 
    2,263,948  
 
       
Synthetic guaranteed investment contracts:
       
Monumental Life
    60,286,128  
Rabobank
    53,011,207  
Union Bank of Switzerland
    39,206,620  
Bank of America
    28,662,260  
State Street Bank
    21,292,911  
IXIS Financial Products, Inc.
    4,030,074  
 
     
 
    206,489,200  
 
       
Interest in common collective trusts
    24,622,702  
 
     
Total net assets at fair value
    233,375,850  
Wrap contracts at fair value
    (49,959 )
Adjustment from fair value to contract value for fully benefit-responsive investment contracts
    3,381,661  
 
     
Total net assets
  $ 236,707,552  
 
     
The Plan retained the Standish Mellon Fixed Income Fund, renamed as the Standish Mellon Stable Value Fund (the Fund), as an investment option in a separate account subsequent to liquidating the Plan’s interest in the Allegheny Master Trust. The investments held by the Standish Mellon Stable Value Fund are separately reported in 2007. The Fund invests in guaranteed investment contracts (GICs) and actively managed structured or synthetic investment contracts (SICs). The GICs are promises by a bank or insurance company to repay principal plus a fixed rate of return through contract maturity. SICs differ from GICs in that there are specific assets supporting the SICs and these assets are owned by the Plan. The bank or insurance company issues a wrapper contract that allows participant-directed transactions to be made at contract value. The assets supporting the SICs were comprised of government agency bonds, corporate bonds, asset-backed securities (ABOs), and collateralized mortgage obligations (CMOs).
Interest crediting rates on the GICs in the Fund are determined at the time of purchase. Interest crediting rates on the SICs are either: (1) set at the time of purchase for a fixed term and crediting rate, (2) set at the time of purchase for a fixed term and variable crediting rate, or (3) set at the time of purchase and reset monthly within a “constant duration.” A constant duration contract may specify a duration of 2.5 years and the crediting rate is adjusted monthly based upon quarterly rebalancing of eligible 2.5 year duration investment instruments at the time of each resetting; in effect the contract never matures. At December 31, 2007 and 2006, the interest crediting rates for GICs (2006 only) and Fixed Maturity SICs ranged from 4.30 % to 5.32 % and 4.30% to 5.34%, respectively.

8


Table of Contents

The 401(k) Plan
Notes to Financial Statements (continued)
3. Investments (continued)
Average yields for all fully benefit-responsive investment contracts for the years ended December 31, 2007 and 2006 were as follows:
                 
    Years Ended December 31
    2007   2006
     
Average yields:
               
Based on actual earnings
    4.72 %     4.75 %
Based on interest rate credited to participants
    4.57 %     4.64 %
The following presents investments that represent 5% or more of the Plan’s net assets as of December 31, 2007 and 2006:
                 
    December 31
    2007   2006
     
State Street Global Advisors S&P 500 Fund
  $ 42,745,307     $  
Allegheny Technologies Incorporated common stock
    34,273,938       38,265,185  
Alliance Bernstein Small Mid Cap Value Fund
    14,466,840        
American Funds Growth Fund of America
    13,146,382        
American Funds Europacific Growth Fund
    12,365,187        
T. Rowe Price Structured Research Common Trust Fund*
          41,540,492  
Standish Mellon Fixed Income Fund*
          40,802,429  
Oakmark Balanced Fund
          27,551,951  
Prudential Jennison Growth Fund, Class A Shares
          10,838,836  
 
*   Contract value
The composition of net assets of the Alliance Capital Growth Pool at December 31, 2006 was as follows:
         
Investment in pooled separate accounts:
       
Alliance Equity Fund S.A. #4
  $ 34,335,972  
Operating payables
    (10,572 )
 
     
Total net assets
  $ 34,325,400  
 
     

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Table of Contents

The 401(k) Plan
Notes to Financial Statements (continued)
3. Investments (continued)
The composition of net assets of the T. Rowe Price Structured Research Common Trust Fund at December 31, 2006 was as follows:
         
Interest in common collective trusts
  $ 72,210,981  
Payables
    (34,228 )
 
     
Total net assets
  $ 72,176,753  
 
     
The composition of the changes in net assets of the Allegheny Master Trust for the year ended December 31, 2006 is as follows:
                         
    Standish Mellon           T. Rowe Price Structured Research  
    Fixed Income Fund     Alliance Capital Growth Pool     Common Trust Fund  
     
Investment income (loss):
                       
Interest income
  $ 9,196,721     $     $  
Net realized/unrealized gain on corporate
common stocks
    6,246             11,900  
Net loss, pooled separate accounts
          (283,791 )      
Net gain, common collective trusts
    851,445             10,226,870  
Administrative expenses
    (242,636 )     (98,140 )     (403,225 )
Transfers
    14,124,671       (5,060,685 )     (3,924,321 )
     
Net increase (decrease)
    23,936,447       (5,442,616 )     5,911,224  
Total net assets at beginning of year
    212,771,105       39,768,016       66,265,529  
     
Total net assets at end of year
  $ 236,707,552     $ 34,325,400     $ 72,176,753  
     
Interest, realized and unrealized gains and losses, and management fees from the Allegheny Master Trust are included in the net gain from interest in Allegheny Master Trust on the statements of changes in net assets available for benefits for the year ended December 31, 2006.
4. Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service dated July 12, 2003, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code) and, therefore, the related trust is exempt from taxation. Subsequent to this issuance of the determination letter, the Plan was amended. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The plan administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes the Plan, as amended, is qualified and the related trust is tax-exempt.

10


Table of Contents

The 401(k) Plan
Notes to Financial Statements (continued)
5. Plan Termination
Although it has not expressed any intent to do so, the employing companies have the right under the Plan to discontinue their contributions at any time and to terminate their respective participation in the Plan subject to the provisions of ERISA. However, no such action may deprive any participant or beneficiary under the Plan of any vested right.
6. Risks and Uncertainties
The Plan invests in various investment securities. Investment securities are exposed to various risk such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.
7. Reconciliation of Financial Statements to Form 5500
The following is a reconciliation of net assets available for benefits per the financial statements to the Form 5500:
                 
    December 31
    2007   2006
     
Net assets available for benefits per the financial statements
  $ 236,810,154     $ 220,546,469  
Deemed distribution of benefits to participants
    (83,739 )     (33,234 )
     
Net assets available for benefits per the Form 5500
  $ 236,726,415     $ 220,513,235  
     
The following is a reconciliation of benefits paid to participants per the financial statements to the Form 5500 for the year ended December 31, 2007:
         
Benefits paid to participants per the financial statements
  $ 19,103,361  
Add: Amounts allocated on Form 5500 to deemed distributions for the year ended December 31, 2007
    83,739  
Less: 2006 deemed distributions per Form 5500 recorded in financial statements as a distribution in 2006
    (33,234 )
 
     
Benefits paid to participants per the Form 5500
  $ 19,153,866  
 
     

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The 401(k) Plan
EIN: 25-1792394 Plan: 098
Schedule H, Line 4i-Schedule of Assets (Held at End of Year)
December 31, 2007
         
Description
  Current Value  
 
Registered Investment Companies
       
Alliance Bernstein Small Mid Cap Value Fund
  $ 14,466,840  
American Funds Europacific Growth Fund
    12,365,187  
American Funds Growth Fund of America
    13,146,382  
MFS Value Fund
    4,457,924  
Lord, Abbott Mid Cap Value Fund
    5,522,497  
MSIF Small Company Growth Fund
    5,545,286  
Western Asset Core Plus Bond Fund
    9,170,507  
Putnam Money Market Fund
    429,439  
 
     
 
  $ 65,104,062  
 
     
 
       
Self-directed accounts:
       
Cash Balance Liability
  $ (24 )
Dreyfus Mid Cap Value Fund
    1,756  
Dreyfus Premier Emerging Markets Fund
    4,931  
Dreyfus Premier Technology Growth Fund Class A
    3,086  
Longleaf Partners International
    54,375  
Oakmark International Fund
    2,107  
Rydex Dynamic OTC 2X Strategy Fund
    244  
Vanguard Health Care Fund
    44,501  
Vanguard Primecap Fund
    47,883  
Vanguard Windsor II Fund
    9,239  
Wells Fargo Advantage Specialized Tech Fund Class Z
    808  
 
     
 
    168,906  
 
     
Total registered investment companies
  $ 65,272,968  
 
     
 
       
Corporate Common Stock
       
Allegheny Technologies Incorporated common stock*
  $ 34,273,938  
 
     
 
       
Interest-Bearing Cash
       
Mellon Stable Value Fund
  $ 1,400,451  
Natixis Financial
    727,568  
 
     
 
  $ 2,128,019  
 
     
 
       
Common Collective Trusts
       
Mellon Stable Value Fund
  $ 843,089  
SEI Fund
    376,020  
State Street Global Advisors Target Retirement Income Fund
    4,087,263  
State Street Global Advisors Target Retirement Income Fund 2010
    7,313,748  
State Street Global Advisors Target Retirement Income Fund 2015
    8,538,853  
State Street Global Advisors Target Retirement Income Fund 2020
    6,428,273  
State Street Global Advisors Target Retirement Income Fund 2025
    5,198,759  
State Street Global Advisors Target Retirement Income Fund 2030
    2,786,763  
State Street Global Advisors Target Retirement Income Fund 2035
    2,292,663  
State Street Global Advisors Target Retirement Income Fund 2040
    1,234,822  
State Street Global Advisors Target Retirement Income Fund 2045
    946,030  
State Street Global Advisors S&P 500 Index Fund
    42,745,307  

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Table of Contents

The 401(k) Plan
EIN: 25-1792394 Plan: 098
Schedule H, Line 4i-Schedule of Assets (Held at End of Year)
December 31, 2007
         
Description
  Current Value  
 
State Street Global Advisors MSCI ACWI Ex-US Fund
    837,206  
 
     
 
  $ 83,628,796  
 
     
 
       
Fixed Maturity Synthetic Contracts:
       
Credit Cards, CCIT 03-A6 A6
  $ 360,150  
Rate Redu Bonds, COMED 98-1 A7
    121,027  
Fannie Mae, FNR 2002-74 LC
    165,629  
Freddie Mac, FHR 2627 BU
    610,733  
Freddie Mac, FHR 2640 TL
    358,854  
Freddie Mac, FHR 2715 ND
    391,674  
Freddie Mac, FHR 2760 EB
    362,033  
Freddie Mac, FHR 2786 PC
    181,644  
Freddie Mac, FHR 2865 PQ
    537,433  
Freddie Mac, FHR 2866 XD
    537,419  
Freddie Mac, FHR 2870 BD
    362,863  
Freddie Mac, FHR 2888 OW
    254,820  
GNMA Project Loans, GNR 06-51 A
    425,420  
Rate Redu Bonds, PSNH 01-1 A2
    75,628  
Bank of America, N.A. Wrap contract
    (5,682 )
 
     
Bank of America, N.A. Fixed Maturity Synthetic Contract 03-040
    4,739,645  
 
       
Rate Redu Bonds, DESF 01-1 A3
    69,671  
Freddie Mac, FHR 2539 PR
    69,477  
Rabobank Wrap contract
    (37 )
 
     
Rabobank Fixed Maturity Synthetic Contract ATI020101
    139,111  
 
       
Auto, BASAT 06-G1 A4
    547,297  
CMBS, CD 05-CD1 A2 FX
    182,124  
Rate Redu Bonds, CNP 05-1 A2
    551,334  
Freddie Mac, FHR 2631 LB
    342,813  
Freddie Mac, FHR 2681 PC
    546,068  
Freddie Mac, FHR 2778 KR
    179,992  
Freddie Mac, FHR 2981 NB
    417,315  
CMBS, MLMT 05-CIP1 A2
    723,984  
CMBS, MLMT 05-CKI1 A2
    364,750  
State Street Bank Wrap contract
    (15,553 )
 
     
State Street Bank Fixed Maturity Synthetic Contract 105028
    3,840,124  
 
       
CMBS, BSCMS 05-T18 A2
    269,665  
CMBS, BSCMS 99-WF2 A2
    443,208  
CMBS, BSCMS 03-T12 A2
    330,028  
CMBS, CASC 98-D7 A1B
    436,821  
Credit Cards, COMET 03-A4 A4
    539,570  
Credit Cards, CCCIT, 03-A3 A3
    454,563  
CMBS, DLJCM 98-CF2 A1B
    326,791  
Freddie Mac, FHR 2663 ML
    635,993  
Freddie Mac, FHR 2763 PC
    477,384  
Freddie Mac, FHR 2921 NV
    269,212  
Freddie Mac, FHR 2934 OC
    365,708  
CMBS, HFCMC 99-PH1 A2
    307,777  
CMBS, JPMCC 05-LDP2 A2
    358,722  

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The 401(k) Plan
EIN: 25-1792394 Plan: 098
Schedule H, Line 4i-Schedule of Assets (Held at End of Year)
December 31, 2007
         
Description
  Current Value  
 
Credit Cards, MBNAS 03-A1 A1
    451,636  
CMBS, MSC 99-CAM1 A4
    129,007  
Auto, NALT 06-A A4
    730,872  
Auto, VWALT 06-A A4
    274,143  
Union Bank of Switzerland Wrap contract
    24,901  
 
     
Union Bank of Switzerland Fixed Maturity Synthetic Contract 2970
    6,826,001  
 
     
Total Fixed Maturity Synthetic Contracts
  $ 15,544,881  
 
     
 
       
Constant Duration Synthetic Contracts:
       
Barclays Global Investors, 1-3 Year Government Bond Index Fund
  $ 636,682  
Barclays Global Investors, Asset-Backed Sec Index Fund
    2,879,718  
Barclays Global Investors, Comm Mortgage-Backed Sec Fund
    983,817  
Barclays Global Investors, Int Term Credit Bond Index Fund
    2,445,952  
Barclays Global Investors, Int Term Government Bond Index Fund
    792,035  
Barclays Global Investors, Long Term Government Bond Index Fund
    51,636  
Barclays Global Investors, Mortgage-Backed Sec Index Fund
    1,971,523  
Barclays Global Investors, Money Market Fund For EBT
    3  
Monumental Life Ins. Co. Wrap contract
    47,338  
 
     
Monumental Life Ins. Co. Constant Duration Synthetic Contract MDA00413TR
    9,808,704  
 
       
Barclays Global Investors, 1-3 Year Government Bond Index Fund
    646,279  
Barclays Global Investors, Asset-Backed Sec Index Fund
    2,923,075  
Barclays Global Investors, Comm Mortgage-Backed Sec Fund
    998,714  
Barclays Global Investors, Int Term Credit Bond Index Fund
    2,482,749  
Barclays Global Investors, Int Term Government Bond Index Fund
    804,114  
Barclays Global Investors, Long Term Government Bond Index Fund
    51,671  
Barclays Global Investors, Mortgage-Backed Sec Index Fund
    2,001,219  
Rabobank Wrap contract
    68,927  
 
     
Rabobank Constant Duration Synthetic Contract ATI060301
    9,976,748  
 
       
Barclays Global Investors, 1-3 Year Government Bond Index Fund
    342,829  
Barclays Global Investors, Asset-Backed Sec Index Fund
    1,550,617  
Barclays Global Investors, Comm Mortgage-Backed Sec Fund
    529,747  
Barclays Global Investors, Int Term Credit Bond Index Fund
    1,317,051  
Barclays Global Investors, Int Term Government Bond Index Fund
    426,480  
Barclays Global Investors, Long Term Government Bond Index Fund
    27,804  
Barclays Global Investors, Mortgage-Backed Sec Index Fund
    1,061,941  
Barclays Global Investors, Money Market Fund For EBT
    1  
State Street Bank Wrap contract
    24,962  
 
     
State Street Bank Constant Duration Synthetic Contract 107073
    5,281,432  
 
     
Total Constant Duration Synthetic Contracts
  $ 25,066,884  
 
     
 
       
Participant loans* (4.00% to 9.50%, with maturities through 2022)
  $ 10,431,086  
 
     
 
*   Party-in-interest

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Table of Contents

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the administrators of the Plan have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.
             
    ALLEGHENY TECHNOLOGIES INCORPORATED    
    THE 401K PLAN    
 
           
Date: June 30, 2008
  By:   /s/ Dale G. Reid    
 
           
 
      Dale G. Reid    
 
      Vice President-Controller, Chief Accounting Officer and Treasurer    
 
      (Principal Accounting Officer and Duly Authorized Officer)    

15