ALLEGHENY TECHNOLOGIES 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, 2006

         
 
  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

ALLEGHENY TECHNOLOGIES RETIREMENT SAVINGS 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
Allegheny Technologies Retirement Savings Plan
Years Ended December 31, 2006 and 2005
With Report of Independent Registered Public Accounting Firm

 


 

Allegheny Technologies Retirement Savings Plan
Audited Financial Statements
and Supplemental Schedule
Years Ended December 31, 2006 and 2005
Contents
         
    1  
 
Audited Financial Statements
       
 
    2  
    3  
    4  
 
       
Supplemental Schedule
       
 
       
    13  
 EX-23.1

 


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 Allegheny Technologies Retirement Savings Plan as of December 31, 2006 and 2005, 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, 2006 and 2005, 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, 2006, 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
June 22, 2007
Pittsburgh, Pennsylvania

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Table of Contents

Allegheny Technologies Retirement Savings Plan
Statements of Net Assets Available for Benefits
                 
    December 31
    2006   2005
     
Investments at fair value:
               
Interest in Allegheny Master Trust
  $ 154,119,073     $ 148,397,746  
Interest in registered investment companies
    107,268,894       90,006,536  
Corporate common stocks
    33,589,850       18,616,407  
Participant loans
    2,638,859       2,704,914  
Interest in common collective trusts
    121,205       210,363  
Interest bearing cash
    12,057       11,193  
Non-interest bearing cash
    2,131        
     
Total investments at fair value
    297,752,069       259,947,159  
 
               
Employer contribution receivable
          330,358  
Employee contributions receivable
          211,767  
Other payables, net
    (55,410 )     (7,481 )
     
Net assets available for benefits at fair value
    297,696,659       260,481,803  
Adjustment from fair value to contract value for fully benefit responsive investment contracts
    1,575,123       1,212,730  
     
Net assets available for benefits
  $ 299,271,782     $ 261,694,533  
     
See accompanying notes.

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Allegheny Technologies Retirement Savings Plan
Statements of Changes in Net Assets Available for Benefits
                 
    Years Ended December 31
    2006   2005
     
Contributions:
               
Employer
  $ 6,979,142     $ 7,204,742  
Employee
    6,353,677       6,723,272  
     
Total contributions
    13,332,819       13,928,014  
 
               
Investment income:
               
Net gain from interest in Allegheny Master Trust
    7,188,781       8,489,872  
Net gain from interest in registered investment companies
    10,616,318       7,263,606  
Net realized/unrealized gain on corporate common stocks
    26,769,300       9,188,964  
Dividend income
    202,860       167,817  
Interest income
    186,543       148,218  
Net gain from interest in common collective trusts
    13,321       2,667  
Other
    (1,339 )     (79,478 )
     
Total investment income
    44,975,784       25,181,666  
     
 
    58,308,603       39,109,680  
 
               
Distributions to participants
    (20,717,973 )     (18,219,878 )
Administrative expenses and other, net
    (13,381 )     (9,324 )
     
 
    (20,731,354 )     (18,229,202 )
     
 
               
Net increase in net assets available for benefits
    37,577,249       20,880,478  
Net assets available for benefits at beginning of year
    261,694,533       240,814,055  
     
Net assets available for benefits at end of year
  $ 299,271,782     $ 261,694,533  
     
See accompanying notes.

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Table of Contents

Allegheny Technologies Retirement Savings Plan
Notes to Financial Statements
December 31, 2006
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.
New Accounting Pronouncement
In December 2005, the Financial Accounting Standards Board (FASB) issued FASB Staff Position 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 (the FSP). The FSP defines the circumstances in which an investment contract is considered fully benefit responsive and provides certain reporting and disclosure requirements for fully benefit responsive investment contracts in defined contribution health and welfare and pension plans. The financial statement presentation and disclosure provisions of the FSP are effective for financial statements issued for annual periods ending after December 15, 2006 and are required to be applied retroactively to all prior periods presented for comparative purposes. The Plan has adopted the provisions of the FSP at December 31, 2006.
As required by the FSP, investments in the accompanying Statements of Net Assets Available for Benefits include fully benefit responsive investment contracts recognized at fair value. AICPA Statement of Position 94-4-1, Reporting of Investment Contracts Held by Health and Welfare Benefit Plans and Defined Contribution Pension Plans, as amended, requires fully benefit responsive investment contracts 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. The requirements of the FSP have been applied retroactively to the Statement of Net Assets Available for Benefits as of December 31, 2005 presented for comparative purposes. Adoption of the FSP had no effect on the Statement of Changes in Net Assets Available for Benefits or the total of net assets available for benefits for any period presented.
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. Share of mutual funds are valued at the net asset value of shares held by the Plan at year end. Participant loans are valued at their outstanding balances, which approximate fair value.

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Table of Contents

Allegheny Technologies Retirement Savings Plan
Notes to Financial Statements (continued)
1. Significant Accounting Policies (continued)
Investments in bank and insurance company guaranteed investment contracts (“GICs”) and in synthetic investment contracts (“SICs”) are stated at contract value which is equal to principal balance plus accrued interest, because they are fully benefit-responsive. 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 was 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 was estimated based on the fair value of each contract’s supporting assets at December 31, 2006 and 2005. 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 Fixed Income Fund until maturity, certain investment contracts provide for adjustments to contract value for withdrawals made prior to maturity.
2. Description of the Plan
The Allegheny Technologies Retirement Savings 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. Depending on participants’ years of service, qualifying employee contributions are matched by the respective employing companies, which are Allegheny Technologies Incorporated (ATI, the Plan Sponsor) and affiliates of ATI, up to 4% of participants’ salary. In addition, the respective employing companies contribute 6.5% of participants’ monthly pensionable earnings, as described in the Plan, and in addition contribute $43.34 per month per participant. With respect to participants who are members of the Salaried Union Office & Technical (Local 1196-1) Agreement, the Plan was amended on January 1, 2004, to provide an employer contribution of $0.50 for each hour worked by the participant, and on June 1, 2004, to provide that the employer match and the employer contributions of 6.5% of participants’ monthly pensionable earnings and $43.34 per month were eliminated. 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 Standish Mellon Fixed Income Fund.

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Table of Contents

Allegheny Technologies Retirement Savings Plan
Notes to Financial Statements (continued)
2. Description of the Plan (continued)
Separate accounts are maintained by the Plan Sponsor for each participating employee. Trustee fees and asset management fees charged by the Plan’s trustee, Mellon Bank, N.A., 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.
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 $1,000 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 documents, summary plan description, and related contracts. These documents are available from the Plan Sponsor.
3. Investments
The following presents investments that represent 5% or more of the Plan’s net assets:
                 
    December 31
    2006   2005
     
Standish Mellon Fixed Income Fund (contract value)
  $ 112,238,253     $ 102,819,541  
Allegheny Technologies Incorporated common stock
    33,589,850       18,616,407  
Oakmark Balanced Fund
    23,835,020       22,283,555  
Alliance Capital Growth Pool (contract value)
    22,952,871       27,326,945  
T. Rowe Price Structured Research Common Trust Fund (contract value)
    20,503,072       19,463,990  
Dreyfus Emerging Leaders Fund
    15,412,702       16,308,754  

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Table of Contents

Allegheny Technologies Retirement Savings Plan
Notes to Financial Statements (continued)
3. Investments (continued)
Certain of the Plan’s investments are in the Allegheny Master Trust, which has three separately managed institutional investment accounts; the T. Rowe Price Structured Research Common Trust Fund (formerly the ATI Disciplined Stock 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”). In May, 2005, Dreyfus was terminated as the manager of the ATI Disciplined Stock Fund and T. Rowe Price Associates, Inc. (“T. Rowe Price”) was appointed. At that time all holdings in the institutional investment account managed by Dreyfus were moved to the institutional investment account managed by T. Rowe Price. T. Rowe Price administered the transition of the holdings by transferring securities in kind to the T. Rowe Price Structured Research Common Trust Fund. Trust investments formerly in the ATI Disciplined Stock Fund are reported as T. Rowe Price Structured Research Common Trust Fund investments for all periods presented.
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 has an undivided interest in the Allegheny Master Trust. At December 31, 2006 and 2005, 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 was as follows:
                 
    2006   2005
     
Alliance Capital Growth Pool
    66.87 %     68.72 %
Standish Mellon Fixed Income Fund
    47.42       48.33  
T. Rowe Price Structured Research Common Trust Fund
    28.41       29.37  
Investment income and expenses are allocated to the Plan based upon its pro rata share in the net assets of the Allegheny Master Trust.

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Allegheny Technologies Retirement Savings Plan
Notes to Financial Statements (continued)
3. Investments (continued)
The composition of the net assets of the Standish Mellon Fixed Income Fund at December 31, 2006 and 2005 was as follows:
                 
    2006   2005
     
Guaranteed investment contracts:
               
GE Life and Annuity
  $     $ 5,453,333  
Hartford Life Insurance Company
          3,978,336  
John Hancock Life Insurance Company
          3,022,363  
Monumental Life Insurance Company
          1,020,997  
New York Life Insurance Company
    895,330       4,703,449  
Ohio National Life
          2,005,322  
Principal Life
    1,368,618       1,307,756  
Pruco Pace Credit Enhanced
          3,716,096  
Security Life of Denver
          1,517,224  
United of Omaha
          1,422,965  
     
 
    2,263,948       28,147,841  
 
               
Synthetic guaranteed investment contracts:
               
Bank of America
    28,662,260       33,323,362  
IXIS Financial Products, Inc.
    4,030,074        
MDA Monumental BGI Wrap
          43,967,438  
Monumental Life
    60,286,128        
Rabobank
    53,011,207       41,435,067  
State Street Bank
    21,292,911       15,290,983  
Union Bank of Switzerland
    39,206,620       35,642,109  
     
 
    206,489,200       169,658,959  
 
               
Interest in common collective trusts
    24,622,702       12,443,974  
     
Total net assets at fair value
    233,375,850       210,250,774  
Wrap contracts at fair value
    (49,959 )     (22,731 )
Adjustment from fair value to contract value for fully benefit responsive investment contracts
    3,381,661       2,543,062  
     
Total net assets
  $ 236,707,552     $ 212,771,105  
     

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Allegheny Technologies Retirement Savings Plan
Notes to Financial Statements (continued)
3. Investments (continued)
The Standish Mellon Fixed Income Fund (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 Allegheny Master Trust. 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 are 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, 2006 and 2005, the interest crediting rates for GICs and Fixed Maturity SICs ranged from 4.30% to 5.34% and 4.15% to 7.08%, respectively.
Average yields for all fully-benefit responsive investment contracts for the years ended December 31, 2006 and 2005 were as follows:
                 
    Year ended December 31
    2006   2005
     
Average yields:
               
Based on actual earnings
    4.75 %     4.56 %
Based on interest rate credited to participants
    4.64 %     4.44 %
The composition of net assets of the Alliance Capital Growth Pool at December 31, 2006 and 2005 was as follows:
                 
    2006   2005
     
Investment in pooled separate accounts:
               
Alliance Equity Fund S.A. #4
  $ 34,335,972     $ 39,779,750  
Operating payables
    (10,572 )     (11,734 )
     
Total net assets
  $ 34,325,400     $ 39,768,016  
     

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Allegheny Technologies Retirement Savings 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 and 2005 was as follows:
                 
    2006   2005
     
Interest in common collective trusts
  $ 72,210,981     $ 66,391,950  
Payables
    (34,228 )     (126,421 )
     
Total net assets
  $ 72,176,753     $ 66,265,529  
     
The composition of the changes in net assets of the Allegheny Master Trust is as follows:
                                                 
                                    T. Rowe Price Structured
    Standish Mellon Fixed Income Fund   Alliance Capital Growth Pool   Research Common Trust Fund
    Years Ended December 31
    2006   2005   2006   2005   2006   2005
     
Investment income (loss):
                                               
Interest income
  $ 9,196,721     $ 9,077,315     $     $     $       $  
Net realized/unrealized
gain (loss) on
corporate common
stocks
    6,246       (543 )           (1 )     11,900       (1,585,846 )
Dividends
                                  427,913  
Net loss, registered investment companies
          (7,739 )                        
Net gain (loss), pooled separate accounts
                (283,791 )     4,438,949              
Net gain, common collective trusts
    851,445       443,616                   10,226,870       4,781,495  
Administrative expenses
    (242,636 )     (254,334 )     (98,140 )     (129,310 )     (403,225 )     (461,975 )
Transfers
    14,124,671       4,681,472       (5,060,685 )     (2,665,712 )     (3,924,321 )     (10,910,725 )
     
Net increase (decrease)
    23,936,447       13,939,787       (5,442,616 )     1,643,926       5,911,224       (7,749,138 )
Total net assets at beginning of year
    212,771,105       198,831,318       39,768,016       38,124,090       66,265,529       74,014,667  
     
Total net assets at end of year
  $ 236,707,552     $ 212,771,105     $ 34,325,400     $ 39,768,016     $ 72,176,753     $ 66,265,529  
     
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.

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Allegheny Technologies Retirement Savings Plan
Notes to Financial Statements (continued)
4. Income Tax Status
The Plan has received a determination letter from the Internal Revenue Service dated August 4, 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 that the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan, as amended, is qualified and the related trust is tax-exempt.
5. Parties-in-Interest
Dreyfus Corporation is the manager of the Dreyfus Mutual Funds that are offered as investment options under this Plan. Dreyfus Service Corporation is the funds’ distributor. The Boston Company is the manager of the Short Term Investment Fund. Dreyfus Corporation, Dreyfus Service Corporation and The Boston Company are wholly owned subsidiaries of Mellon Financial Corporation. Mellon Financial Corporation also owns Mellon Bank, N.A., the trustee for this Plan. T. Rowe Price Associates, Inc. is the manager of the T. Rowe Price Structured Research Common Trust Fund. Therefore, transactions with these entities qualify as party-in-interest transactions.
6. 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.
7. 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.

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Table of Contents

Allegheny Technologies Retirement Savings Plan
Notes to Financial Statements (continued)
8. 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
    2006   2005
     
Net assets available for benefits per the financial statements
  $ 299,271,782     $ 261,694,533  
Deemed distribution of benefits to participants
    (157,053 )     (42,340 )
     
Net assets available for benefits per the Form 5500
  $ 299,114,729     $ 261,652,193  
     

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Allegheny Technologies Retirement Savings Plan
EIN: 25-1792394     Plan: 004
Schedule H, Line 4i-Schedule of Assets (Held at End of Year)
December 31, 2006
                 
Description   Units/Shares     Current Value  
 
Registered Investment Companies
               
Artisan Midcap Funds
    136,344.0700     $ 4,153,040  
Dreyfus Appreciation Fund*
    41,712.7080       1,826,599  
Dreyfus Bond Market Index*
    251,361.0050       2,511,096  
Hartford Midcap Fund
    329,914.1600       8,904,383  
Lord, Abbett Midcap Funds
    280,897.7280       6,292,109  
Dreyfus Emerging Leaders Fd*
    443,786.4210       15,412,702  
MFS Value Fund
    289,466.9770       7,749,031  
Dreyfus Premier Intl Value Fd*
    710,342.6320       13,894,302  
Morgan Stanley Small Growth Fund
    362,846.6270       4,829,852  
Allianz NFJ Small Cap Value Funds
    259,386.9780       8,105,843  
Oakmark Balanced Fund
    920,982.2210       23,835,020  
Prudential Invt Portfolios Inc Jennison Growth Fd
    149,434.3750       2,456,701  
 
             
 
            99,970,678  
 
               
Self-directed accounts
               
AIM Global Health Care Fund
    3,520.330       100,188  
AIM Technology Fd
    98.7900       2,815  
Allianz Funds Dividend Value Fund Cl D
    661.6600       11,288  
American Centy Quantitive Eq Fds – Growth Fund Inc
    1,862.0050       47,742  
American Century Cap – Real Estate Fund
    2,069.4340       62,828  
Ariel Growth Fd Calvert Ariel Appreciation Fd
    437.0450       21,122  
CGM Tr Rlty Fund
    1,509.8750       40,857  
CGM Tr Focus Fund
    208.4900       7,232  
Cohen & Steers Institutional Rlty
    549.8380       31,060  
Cohen & Steers Realty Shares
    129.2250       11,559  
DWS Technology Fund
    2,214.1820       25,906  
DWS Invts High Income Plus Fund
    2,028.5310       15,742  
Dodge & Cox Intl Stock Fd
    1,221.0230       53,310  
Dodge & Cox Stock Fund
    26.6720       4,093  
Dreyfus 100% US Treas MM Fd*
    355,540.7900       355,541  
Dreyfus Invt Grade Bd Fds Inter Term Fd*
    803.5440       10,084  
Dreyfus/Laurel Fds Inc Disciplined Stk Fd*
    250.8050       8,853  
Dreyfus/Laurel Fds Inc S&P 500 Stk Index Fd*
    9,097.2230       267,549  
Dreyfus Midcap Value Fd*
    271.0770       8,696  
Dreyfus Growth & Value Fds Premier Techn Growth Fd*
    682.4940       17,424  
Dreyfus Technology Growth Fd*
    3,495.1640       86,575  
Dreyfus Premier Emerging Mkts Fd*
    5,954.9090       125,589  
Dreyfus Premier Micro Cap Growth Fund*
    1,617.9540       35,207  

13


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Allegheny Technologies Retirement Savings Plan
EIN: 25-1792394     Plan: 004
Schedule H, Line 4i-Schedule of Assets (Held at End of Year)
December 31, 2006
                 
Description   Units/Shares   Current Value  
 
FBR Fds – Small Cap Fd
    29.3370       1,580  
Federated Equity Kaufmann Fd
    36,301.0080       205,464  
Fidelity Invt Tr Diversified Intl Fd
    264..8110       9,785  
Fidelity Invt Tr Latin Amer Fd
    1,846.0500       82,574  
Fidelity Commonwealth Small Cap Stk Fd
    2,183.1970       45,956  
Fidelity Finl Tr Equity Income II Fund
    1,264.7980       30,659  
Fidelity Mt Vernon Str Tr Growth Co Fd
    289.1680       20,158  
Fidelity Mt Vernon Str tr Growth Co Fd
    104.3900       2,024  
Fidelity Secs Fd Dividend Growth Fd
    498.9580       15,807  
Fidelity Select Portfolios Technology Portfolio
    482.5310       32,759  
Fidelity Select Portfolios Health Care Portfolio
    136.2020       17,033  
Fidelity Select Portfolios Biotechnology Portfolio
    123.4440       8,019  
Fidelity Select Portfolios American Gold Portfolio
    1.3910       51  
Fidelity Select Portfolios Software & Computer Svcs Portfolio
    687.2980       45,066  
Fidelity Select Portfolios Ele Portfolio
    3,278.8710       143,713  
Fidelity Select Portfolios Computers Portfolio
    3,197.3390       126,263  
First Eagle Overseas Fund
    5,099.5550       127,897  
Firsthand Fds Technology Value Fd
    238.0860       8,593  
Franklin Invs Secs Conv Secs Fd
    176.5610       2,880  
Gamco Gold Fd
    912.0240       22,782  
Gamco Global Growth Fd AAA
    241.2440       5,532  
Gamco Global Ser Fds Conv Secs Fd
    967.2570       6,394  
Gamco Growth Fund Class AAA
    1,625.2920       49,767  
Growth Fd Amer Inc
    288.2120       9,180  
Harbor Fd Bd Fd
    689.6040       7,972  
Harbor Fd Intl Fd Inv
    330.9790       20,382  
Janus Invt Fd Sh Ben Int
    1,287.8260       36,239  
Janus Invt Fd Growth & Income Fd
    3,314.9880       126,831  
Janus Invt Fd Worldwide Fd
    1,466.4690       73,998  
Janus Invt Fd Twenty Fd
    681.4710       37,222  
Janus Invt Fd Mid Cap Value Fd
    1,192.5480       28,395  
Janus Invt Fd Global Value Fd
    1,771.0370       24,918  
Janus Invt Fd Orion Fd
    20,925.1290       206,322  
Janus Invt Fd Contrarian Fund
    11,299.4870       190,170  
Janus Invt Fd Global Tech Fd
    3,219.7150       41,373  
Janus Invt Fd Global Life Sciences Fd
    1,489.7850       29,289  
Janus Invt Fd Enterprise Fd
    2,252.2200       106,868  
Janus Invt Fd Mercury Fd
    5,268.3650       131,446  
Jennison Sector Fds Health Sciences Fd
    894.2480       18,752  
LKCM International Fund
    848.8960       11,452  
Lazard Fds Emerging Mkts Portfolio Retail
    1,097.4250       22,848  
Loomis Sayles Funds – 1 Bond Fund Retail
    1,785.4010       25,442  
Lord Abbett Mid Cap Value Fd, Class B
    362.6960       7,798  

14


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Allegheny Technologies Retirement Savings Plan
EIN: 25-1792394     Plan: 004
Schedule H, Line 4i-Schedule of Assets (Held at End of Year)
December 31, 2006
                 
Description   Units/Shares     Current Value  
 
MFS Mid Cap Growth A
    1,790.3260       16,793  
Marsico Invt Fd Growth & Income Fd
    1,610.0480       32,346  
Masters Select Fds Intl Fd
    1,354.9800       25,392  
Matthews Intl Fds Dragon Centy China Fd
    364.6200       8,809  
Matthews Intl Fds India Fd
    1,343.1830       20,752  
Meridian Fd
    233.3350       9,156  
Franklin Mutual Series Fd Mutual Discovery Fund
    599.4520       18,259  
Oberwies Fds China Opptys Fd
    1,131.8620       22,105  
Old Hut Advisor Fds II Technology & Comm Fd
    935.1580       12,092  
Old Hut Advisor Fds II Emerging Growth Fd
    3.4510       53  
Pimco Fds Pac Invt Mgmt Ser Total Return Fd
    187,498.3620       1,946,233  
Park Ave Portfolio Guardian Fd
    1,493.0110       55,525  
Pimco Fds Pac Invt Mgmt Ser All Asset Fd Institutional
    418.6450       5,271  
Pimco Fds Pac Invt Mgmt Ser Cmdty Real Ret Strategy Fd
    821.9460       11,474  
Price T Rowe Media & Tech Fd*
    233.6990       10,091  
Price T Rowe Growth Stock Fd*
    474.2330       15,000  
Price T Rowe Health Sciences Fd*
    549.8580       14,368  
Profounds Utils Ultrasector Profund Inv
    469.3440       11,321  
Profounds Technology Ultrasector Profund
    666.8890       19,300  
Profounds Precious Metals Ultra Sector Profund
    747.5440       30,507  
Profounds Internet Ultrasector Profund
    508.7230       43,292  
Profounds Real Estate Ultrasect Profund
    521.4140       29,178  
Profounds Ultra Japan Profund Invs
    463.8690       22,642  
RS Invt Tr Emerging Growth Fd
    979.0620       34,913  
Rowe T Price Appreciation Fd Sh Ben Int*
    5,209.5300       107,421  
Rowe T Price Blue Chip Growth Fd*
    316.0560       11,293  
Rowe T Price Equity Income Fd Sh Ben Int*
    1,016.9490       30,051  
Rowe T Price Mid Cap Growth Fd*
    395.0080       21,208  
Rowe Price New Era Fd*
    399.0480       18,356  
Rowe T Price Science & Tech Fd Inc Cap Stk*
    3,170.6670       66,457  
Rowe T Price Small-Cap Value Fd Inc Cap Stk*
    863.6590       35,591  
Rowe T Price Real Estate Fd*
    987.3430       25,009  
Royce Fd Opporunity Fd
    119.8470       1,563  
Royce Spl Equity Fund
    750.1440       14,793  
Royce Fd Pennsylvania Mutual Fd
    763.1530       8,830  
Ryder Ser Tr Dynamic Titan 500 Fd
    267.6470       12,711  
Rydex Ser Fds Energy Fund
    405.3180       8,982  
SSGA Fds Equity Fd
    1,451.5550       30,991  
SSGA Fds Intl Stk Selection Fd
    1,860.3470       25,691  
Selected Amern Shs
    1,041.3760       47,966  
Stratton Growth Fund
    702.4200       29,375  
Thrd Ave Tr Formerly Third Ave to 3/17/97 Real Estate Val
    408.2810       14,143  
Vanguard Specialized Portfolio Energy Portfolio
    1,626.2940       105,107  
Vanguard Specialized Portfolio Gold & Precious
    1,568.5330       43,997  
Vanguard Specialized Portfolio Health Care
    240.1550       34,967  
Vanguard Equity Income Fd
    656.3120       16,605  
Vanguard Fenway Fds Primecap Core Fd
    2,145.7290       27,058  

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Allegheny Technologies Retirement Savings Plan
EIN: 25-1792394     Plan: 004
Schedule H, Line 4i-Schedule of Assets (Held at End of Year)
December 31, 2006
                 
Description   Units/Shares     Current Value  
 
Vanguard Wellington Fd
    2,103.5480       68,218  
Vanguard Windsor fd
    806.4520       15,032  
Vanguard Windsor Fd II
    3,085.3830       107,217  
Vanguard Horizon Fds Strategic Equity Fd
    773.8180       18,293  
Vanguard Index Tr 500 Portfolio
    713.4860       93,174  
Vanguard Index Tr Value Portfolio
    1,857.4490       49,371  
Vanguard Index Tr Growth Portfolio
    220.6920       6,570  
Vanguard Index Tr Small Capitalization Stk Fd
    511.3050       16,679  
Vanguard Index Tr Mid Capitalization Stk Port Inv Sh
    241.5810       4,778  
Wasatch Fds Inc Heritage Growth Fund
    1,043.2010       12,174  
Wells Fargo Fds Tr Advantage Discovery Fd
    3,350.1410       73,636  
Wells Fargo Fds Advantage Growth Fd
    533.0470       12,111  
Wells Fargo Fds Tr Advantage Dividend Income Fd
    8,101.4640       141,857  
Wexford Tr Muhlenkamp Fd
    82.1100       7,156  
 
             
 
            7,298,216  
 
             
Total registered investment companies
          $ 107,268,894  
 
             
 
               
Corporate Common Stocks
               
Allegheny Technologies Incorporated*
    370,421.8130     $ 33,589,850  
 
             
 
               
Participant loans* (8.25% to 9.25%, with maturities through 2020)
    2,638,858.5600     $ 2,638,859  
 
             
 
               
Common Collective Trusts
               
The Boston Company Short Term Investment Fund*
    121,204.5400     $ 121,204  
 
             
 
               
Interest bearing cash
          $ 12,057  
 
             
 
*   Party-in-interest

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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
ALLEGHENY TECHNOLOGIES RETIREMENT SAVINGS PLAN
 
           
Date: June 22, 2007
  By:   /s/ Richard J. Harshman
 
Richard J. Harshman
   
 
      Executive Vice President-Finance and    
 
      Chief Financial Officer    
 
      (Principal Financial Officer and Duly    
 
      Authorized Officer)