Document And Entity Information
Document And Entity Information | 3 Months Ended |
Mar. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Entity Registrant Name | Aleris Corporation |
Entity Central Index Key | 1,518,587 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 32,219,528 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 79.1 | $ 102.4 |
Accounts receivable, net | 364.2 | 245.7 |
Inventories | 675.7 | 631.2 |
Prepaid expenses and other current assets | 80.6 | 36.1 |
Total Current Assets | 1,199.6 | 1,015.4 |
Property, plant and equipment, net | 1,470.5 | 1,470.9 |
Intangible assets, net | 34.1 | 34.7 |
Deferred income taxes | 69.5 | 70.7 |
Other long-term assets | 55.1 | 52.7 |
Total Assets | 2,828.8 | 2,644.4 |
Current Liabilities | ||
Accounts payable | 341.6 | 299.2 |
Accrued liabilities | 199.9 | 197.4 |
Current portion of long-term debt | 10.3 | 9.1 |
Total Current Liabilities | 551.8 | 505.7 |
Long-term debt | 1,819.1 | 1,771.4 |
Deferred Revenue, Noncurrent | 74 | 17 |
Deferred income taxes | 6.1 | 4 |
Accrued pension benefits | 173.5 | 170.2 |
Accrued postretirement benefits | 33.8 | 34.3 |
Other long-term liabilities | 49.6 | 49.1 |
Total Long-Term Liabilities | 2,156.1 | 2,046 |
Stockholders’ Equity | ||
Common stock; par value $.01; 45,000,000 shares authorized; 32,219,528 and 32,001,318 shares issued at March 31, 2018 and December 31, 2017, respectively | 0.3 | 0.3 |
Preferred stock; par value $.01; 1,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 436.6 | 436.3 |
Retained deficit | (196) | (203.4) |
Accumulated other comprehensive loss | (120) | (140.5) |
Total Equity | 120.9 | 92.7 |
Total Liabilities and Equity | $ 2,828.8 | $ 2,644.4 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 0.5 | $ 7.6 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 45,000,000 | 45,000,000 |
Common stock, shares issued | 32,219,528 | 32,001,318 |
Common stock, shares outstanding | 32,219,528 | 32,001,318 |
Redeemable preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Redeemable preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Redeemable preferred stock, shares issued | 0 | 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Revenues | $ 802.3 | $ 674.2 |
Cost of sales | 739.8 | 588.6 |
Gross profit | 62.5 | 85.6 |
Selling, general and administrative expenses | 50.6 | 52.9 |
Restructuring charges | 0.9 | 0.4 |
(Gains) losses on derivative financial instruments | (33.9) | 28.2 |
Other operating expense, net | 0.7 | 1 |
Operating income | 44.2 | 3.1 |
Interest expense, net | 33.8 | 27.1 |
Other expense, net | 0.4 | 0.5 |
Income (loss) before income taxes | 10 | (24.5) |
Provision for income taxes | 5.4 | 10.7 |
Net income (loss) | 4.6 | (35.2) |
Comprehensive income (loss) | $ 25.1 | $ (25.6) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating activities | ||
Net income (loss) | $ 4.6 | $ (35.2) |
Adjustments to reconcile net income (loss) to net cash used by operating activities: | ||
Depreciation and amortization | 34.7 | 25.7 |
Provision for deferred income taxes | 1.6 | 6.1 |
Stock-based compensation expense | 0.3 | 0.6 |
Unrealized (gains) losses on derivative financial instruments | (33.7) | 7.8 |
Amortization of debt issuance costs | 0.7 | 0.8 |
Other | (0.4) | 1 |
Changes in operating assets and liabilities: | ||
Change in accounts receivable | (84.4) | (50.4) |
Change in inventories | (60.9) | (66.9) |
Change in other assets | (18.4) | (0.6) |
Change in accounts payable | 44.9 | 43.8 |
Change in accrued and other liabilities | 76.1 | 28.7 |
Net cash used by operating activities | (34.9) | (38.6) |
Investing activities | ||
Payments for property, plant and equipment | (30.1) | (62.6) |
Other | (0.2) | (0.4) |
Net cash used by investing activities | (30.3) | (63) |
Financing activities | ||
Proceeds from revolving credit facilities | 133.9 | 159.5 |
Payments on revolving credit facilities | (90) | (294.5) |
Proceeds from senior secured notes, inclusive of premiums and discounts | 0 | 263.8 |
Net payments on other long-term debt | (3.8) | (2.3) |
Debt issuance costs | 0 | (1.8) |
Other | 0 | (1.2) |
Net cash provided by financing activities | 40.1 | 123.5 |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | 1.9 | 0.6 |
Net (decrease) increase in cash, cash equivalents and restricted cash | (23.2) | 22.5 |
Cash, cash equivalents and restricted cash at beginning of period | 108 | 55.6 |
Cash, cash equivalents and restricted cash at end of period | 84.8 | 78.1 |
Cash and cash equivalents | 79.1 | 74.6 |
Restricted cash (included in “Prepaid expenses and other current assets”) | $ 5.7 | $ 3.5 |
Basis Of Presentation and Recen
Basis Of Presentation and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation and Recent Accounting Pronouncements | BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS Basis of Presentation The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for interim periods contained herein are not necessarily indicative of the results that may be expected for any other interim period or for the full year. The accompanying Consolidated Financial Statements include the accounts of Aleris Corporation and all of its subsidiaries (collectively, except where the context otherwise requires, referred to as “Aleris,” “we,” “us,” “our,” “Company” or similar terms). Aleris Corporation is a holding company and currently conducts its business and operations through its direct wholly owned subsidiary, Aleris International, Inc. and its consolidated subsidiaries. Aleris International, Inc. is referred to herein as “Aleris International.” Recent Accounting Pronouncements In January 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). This guidance gives entities the option to reclassify to retained earnings tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) related to items in accumulated other comprehensive income (“AOCI”) that the FASB refers to as having been stranded in AOCI. The new guidance may be applied retrospectively to each period in which the effect of the Tax Act is recognized, or in the period of adoption. We elected to early adopt ASU 2018-02 in the first quarter of 2018. As we maintain a full valuation allowance against our U.S. deferred tax assets, there was no net impact on retained earnings. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). This guidance requires the presentation of all components of net periodic benefit cost, other than service costs, outside of operating income. Upon adoption, only the service cost component of periodic benefit costs are included in operating income and eligible for capitalization in assets. This guidance was adopted in the first quarter of 2018, and $0.5 and $0.3 of pension and postretirement benefit expenses were reclassified from “Cost of sales” and “Selling, general and administrative expenses,” respectively, to “Other expense, net” in the Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, 2017. The adoption had no impact on reported net income or retained earnings. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”). This guidance requires lessees to put most leases on their balance sheets but recognize expense on the income statement in a manner similar to current guidance. The guidance is effective for the Company for fiscal years beginning after December 15, 2018, and a modified retrospective approach is required for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. We are currently evaluating the impact the application of ASU 2016-02 will have on the Company’s Consolidated Financial Statements. We expect that the adoption will result in an increase to our long-term assets and long-term liabilities as a result of substantially all operating leases existing as of the adoption date being capitalized along with the associated obligations. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09” or “ASC 606”), which was the result of a joint project by the FASB and International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. Subsequent accounting standard updates have been issued which amend and/or clarify the application of ASU 2014-09. The Company adopted ASU 2014-09 in the first quarter of 2018. In evaluating the impact of the standard, management has concluded that control has transferred on some of the inventory held on consignment at customer locations or in third-party warehouses. Subsequent to adoption of the standard, revenue has been recognized on such consignment inventory when it is delivered into consignment. We adopted this standard using the modified retrospective approach. The January 1, 2018 adoption of the standard resulted in an increase to accounts receivable, accrued liabilities and deferred income tax liabilities of $28.6 , $1.6 and $1.2 , respectively, and a decrease in inventory of $23.0 . The net impact was recorded as a decrease to retained deficit of $2.8 . The pre-tax impact of the adoption of ASU 2014-09 on our Consolidated Balance Sheet at March 31, 2018 and our Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2018 is as follows: Increase (decrease) Consolidated Balance Sheet Accounts receivable $ 24.7 Inventories (21.6 ) Accrued liabilities 1.9 Consolidated Statements of Comprehensive Income (Loss) Revenues $ (4.6 ) Cost of goods sold (3.6 ) |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES The components of our “Inventories” as of March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 December 31, 2017 Raw materials $ 206.9 $ 207.6 Work in process 270.2 210.8 Finished goods 164.3 181.6 Supplies 34.3 31.2 Total inventories $ 675.7 $ 631.2 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | REVENUE FROM CONTRACTS WITH CUSTOMERS We generate substantially all of our revenue from the manufacture and shipment of aluminum products to our customers. Sales, value add and other taxes we collect concurrent with revenue-producing activities are excluded from revenue. Revenue is recognized when obligations under the terms of a contract (as defined by ASC 606) with our customer are satisfied, which occurs at a point in time when control of the product transfers to the customer. Control may transfer to the customer at various points in the delivery process. In North America, most revenue is recognized at the point of shipment. In Europe and China, the timing of revenue recognition varies depending on individual customer arrangements, and may include point of shipment, delivery to port, final delivery to customer or another point in the delivery process. Certain contractual arrangements, primarily with customers in our automotive and heat exchanger end-uses, allow for inventory to be held at a customer’s location or in a third-party warehouse with direct customer access. Title does not transfer to the customer on such inventory until the customer has removed the product for consumption. Under such arrangements, management has concluded that control has passed to the customer upon delivery to the customer’s location or the third-party warehouse if the customer has unrestricted access to the product and the Company has the right to invoice that customer after a specified period of time regardless of whether or not the product has been removed by the customer for production. The transaction price for our products includes the value of the aluminum in the product plus a conversion fee, or rolling margin, which is the price charged to the customer for conversion of the aluminum raw material to the finished product. Certain customer contracts include volume rebates applied retrospectively to quantities purchased during a specified period. The resulting variable consideration from volume rebates is estimated using the expected value method. As all customer contracts have an original expected duration of less than twelve months, we have applied the practical expedient to the disclosure of the aggregate amount of the transaction price allocated to remaining performance obligations. Customer payments are due shortly after completion of the performance obligation, on payment terms that are customary for the industry. As all customer payments are due in less than one year, we have not adjusted revenue for the effects of a significant financing component. The following table discloses the disaggregated revenue from our contracts with customers by major end-use: For the three months ended March 31, 2018 North America Europe Asia Pacific Intra-entity sales Total Aerospace $ — $ 70.8 $ 14.8 $ — $ 85.6 Automotive 26.8 101.3 — (9.0 ) 119.1 Heat exchanger — 66.0 — — 66.0 Building and construction 189.2 — — — 189.2 Truck trailer 43.8 — — — 43.8 Distribution 107.0 — 15.9 — 122.9 Regional plate and sheet — 109.1 — — 109.1 Other 47.8 17.9 0.9 — 66.6 $ 414.6 $ 365.1 $ 31.6 $ (9.0 ) $ 802.3 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT Our debt as of March 31, 2018 and December 31, 2017 is summarized as follows: March 31, 2018 December 31, 2017 ABL Facility $ 365.9 $ 319.3 7 7/8% Senior Notes due 2020, net of discount and deferred issuance costs of $3.1 and $3.3 at March 31, 2018 and December 31, 2017, respectively 437.0 436.7 9 1/2% Senior Secured Notes due 2021, inclusive of net premiums and deferred issuance costs of $0.7 and $0.8 at March 31, 2018 and December 31, 2017, respectively 800.7 800.8 Exchangeable Notes, net of discount of $0.3 at March 31, 2018 and December 31, 2017 44.5 44.5 Zhenjiang Term Loans, net of discount of $0.5 at March 31, 2018 and December 31, 2017 172.1 169.8 Other 9.2 9.4 Total debt 1,829.4 1,780.5 Less: Current portion of long-term debt 10.3 9.1 Total long-term debt $ 1,819.1 $ 1,771.4 At March 31, 2018 and December 31, 2017 , respectively, $5.7 and $5.6 of cash was restricted for payments of the Zhenjiang Term Loans, all of which was included in “Prepaid expenses and other current assets” in the Consolidated Balance Sheet. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Environmental Proceedings Our operations are subject to environmental laws and regulations governing air emissions, wastewater discharges, the handling, storage, disposal and remediation of hazardous substances and wastes and employee health and safety. These laws can impose joint and several liability for releases or threatened releases of hazardous substances upon statutorily defined parties, including us, regardless of fault or the lawfulness of the original activity or disposal. Given the changing nature of environmental legal requirements, we may be required, from time to time, to take environmental control measures at some of our facilities to meet future requirements. We have been named as a potentially responsible party in certain proceedings initiated pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act and similar state statutes and may be named a potentially responsible party in other similar proceedings in the future. It is not anticipated that the costs incurred in connection with the presently pending proceedings will, individually or in the aggregate, have a material adverse effect on our financial position, results of operations or cash flows. We are performing operations and maintenance at two Superfund sites for matters arising out of past waste disposal activity associated with closed facilities. We are also under orders to perform environmental remediation by agencies in four states and one non-U.S. country at seven sites. Our reserves for environmental remediation liabilities totaled $21.9 and $22.1 at March 31, 2018 and December 31, 2017 , respectively, and have been classified as “Other long-term liabilities” and “Accrued liabilities” in the Consolidated Balance Sheet. Of the environmental liabilities recorded at March 31, 2018 and December 31, 2017 , $10.1 and $10.2 , respectively, are subject to indemnification by third parties. In addition to environmental liabilities, we have recorded asset retirement obligations associated with legal requirements related to the retirement of certain assets. Our total asset retirement obligations were $6.2 and $6.1 at March 31, 2018 and December 31, 2017 , respectively. The amounts represent the most probable costs of remedial actions. We estimate the costs related to currently identified remedial actions will be paid out primarily over the next 10 years . Legal Proceedings We are party to routine litigation and proceedings as part of the ordinary course of business and do not believe that the outcome of any existing proceedings would have a material adverse effect on our financial position, results of operations or cash flows. We have established accruals for those loss contingencies, including litigation and environmental contingencies, for which it has been determined that a loss is probable; none of such loss contingencies is material. For those loss contingencies, including litigation and environmental contingencies, which have been determined to be reasonably possible, an estimate of the possible loss or range of loss cannot be determined because the claims, amount claimed, facts or legal status are not sufficiently developed or advanced in order to make such a determination. While we cannot estimate the loss or range of loss at this time, we do not believe that the outcome of any of these existing proceedings would be material to our financial position, results of operations or cash flows. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS ’ EQUITY The following table summarizes the activity within stockholders’ equity for the three months ended March 31, 2018 : Total Equity Total equity at January 1, 2018 $ 92.7 Net income 4.6 Other comprehensive income 20.5 Stock-based compensation activity 0.3 Adoption of ASC 606 2.8 Total equity at March 31, 2018 $ 120.9 The following table shows changes in the number of our issued and outstanding shares of common stock: Issued and outstanding shares of common stock Balance at January 1, 2018 32,001,318 Issuance associated with vested restricted stock units 218,210 Balance at March 31, 2018 32,219,528 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table summarizes the activity within accumulated other comprehensive loss for the three months ended March 31, 2018 : Currency translation Pension and other postretirement Total Balance at January 1, 2018 $ (64.2 ) $ (76.3 ) $ (140.5 ) Current period currency translation adjustments 20.2 (0.6 ) 19.6 Amortization of net actuarial losses and prior service costs, net of tax — 0.9 0.9 Balance at March 31, 2018 $ (44.0 ) $ (76.0 ) $ (120.0 ) A summary of reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2018 is provided below: Description of reclassifications out of accumulated other comprehensive loss Amount reclassified Amortization of net actuarial losses and prior service costs $ (1.1 ) (a) Deferred tax benefit on pension and other postretirement liability adjustments 0.2 Losses reclassified into earnings, net of tax $ (0.9 ) (a) This component of accumulated other comprehensive loss is included in the computation of net periodic benefit expense and net postretirement benefit expense (see Note 11, “Employee Benefit Plans,” for additional detail). |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION We report three operating segments based on the organizational structure that is used by the chief operating decision maker to evaluate performance, make decisions on resource allocation and for which discrete financial information is available. The Company’s operating segments are North America, Europe and Asia Pacific. Measurement of Segment Income or Loss and Segment Assets The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies in the Consolidated Financial Statements for the year ended December 31, 2017 . Our measure of profitability for our operating segments is referred to as segment income. Segment income includes gross profits, segment specific realized gains and losses on derivative financial instruments, segment specific other income and expense, segment specific selling, general and administrative (“SG&A”) expense and an allocation of certain functional SG&A expenses. Segment income excludes provisions for and benefits from income taxes, restructuring items, interest, depreciation and amortization, unrealized and certain realized gains and losses on derivative financial instruments, corporate general and administrative costs, start-up costs, gains and losses on asset sales, currency exchange gains and losses on debt and certain other gains and losses. Intra-entity sales and transfers are recorded at market value. Consolidated cash, restricted cash, net capitalized debt costs, deferred tax assets and assets related to our headquarters offices are not allocated to the segments. Reportable Segment Information The following table shows our revenues and segment income for the periods presented in our Consolidated Statements of Comprehensive Income (Loss) : Three months ended March 31, 2018 North America Europe Asia Pacific Intra-entity Revenues Total Revenues to external customers $ 414.6 $ 356.1 $ 31.6 $ 802.3 Intra-entity revenues — 9.0 — $ (9.0 ) — Total revenues $ 414.6 $ 365.1 $ 31.6 $ (9.0 ) $ 802.3 Segment income $ 41.5 $ 28.3 $ 2.3 $ 72.1 Three months ended March 31, 2017 North America Europe Asia Pacific Intra-entity Revenues Total Revenues to external customers $ 348.5 $ 302.6 $ 23.1 $ 674.2 Intra-entity revenues 3.1 6.4 1.1 $ (10.6 ) — Total revenues $ 351.6 $ 309.0 $ 24.2 $ (10.6 ) $ 674.2 Segment income $ 24.2 $ 38.0 $ 1.4 $ 63.6 The following table reconciles total segment income to “ Income (loss) before income taxes ” as reported in our Consolidated Statements of Comprehensive Income (Loss) : For the three months ended March 31, 2018 March 31, 2017 Total segment income $ 72.1 $ 63.6 Unallocated amounts: Depreciation and amortization (34.7 ) (25.7 ) Other corporate general and administrative expenses (11.2 ) (12.4 ) Restructuring charges (0.9 ) (0.4 ) Interest expense, net (33.8 ) (27.1 ) Unallocated gains (losses) on derivative financial instruments 33.7 (7.7 ) Unallocated currency exchange gains (losses) 1.2 (0.1 ) Start-up costs (16.0 ) (14.5 ) Other expense, net (0.4 ) (0.2 ) Income (loss) before income taxes $ 10.0 $ (24.5 ) The following table shows our reportable segment assets as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Assets North America $ 1,427.3 $ 1,309.9 Europe 791.1 738.4 Asia Pacific 382.9 371.4 Unallocated assets 227.5 224.7 Total consolidated assets $ 2,828.8 $ 2,644.4 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION On June 1, 2010, the Board of Directors of Aleris Corporation approved the Aleris Corporation 2010 Equity Incentive Plan, which has been amended from time to time (the “2010 Equity Plan”). Stock options, restricted stock units and restricted shares have been granted under the 2010 Equity Plan to certain members of management of the Company and directors. All stock options granted have a life not to exceed ten years and generally vest over a period not to exceed four years. Shares of common stock are issued upon stock option exercises from available shares. The restricted stock units also vest over a period not to exceed four years. A portion of the stock options, as well as a portion of the restricted stock units, may vest upon a change in control event should the event occur prior to full vesting of these awards, depending on the amount of vesting that has already occurred at the time of the event in comparison to the change in our largest stockholders’ overall level of beneficial ownership that results from the event. During the three months ended March 31, 2018 , no stock options or restricted stock units were granted. We recorded stock-based compensation expense of $0.3 and $0.6 for the three months ended March 31, 2018 and 2017 , respectively. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On December 22, 2017, Staff Accounting Bulletin No. 118 (“SAB 118”) was issued to address the application of GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. Pursuant to the guidance we recognized the provisional effects of the enactment of the Tax Act for which measurement could be reasonably estimated. We continue to monitor certain aspects of the Tax Act and may refine our assessment as a result of any further related regulatory guidance that may be issued by the U.S. Treasury. Pursuant to SAB 118, adjustments to the provisional amounts recorded as of December 31, 2017 that are identified within a subsequent measurement period of up to one year from the enactment date will be included as an adjustment to tax expense from continuing operations in the period the amounts are determined. We recognized no measurement period adjustments during the three months ended March 31, 2018. The effective tax rates for the three months ended March 31, 2018 and 2017 differed from the federal statutory rate applied to income and losses before income taxes primarily as a result of the mix of income, losses and tax rates between tax jurisdictions and valuation allowances. We have valuation allowances recorded to reduce certain deferred tax assets to amounts that are more likely than not to be realized. The valuation allowances relate to the potential inability to realize our deferred tax assets associated with amortization and net operating loss carryforwards in the U.S. and net operating loss carryforwards in non-U.S. jurisdictions. We intend to maintain our valuation allowances until sufficient positive evidence exists (such as cumulative positive earnings and estimated future taxable income) to support their reversal. As of March 31, 2018 , we had $4.3 of unrecognized tax benefits. $3.2 of the gross unrecognized tax benefits, if recognized, would affect the annual effective tax rate. We recognize interest and penalties related to uncertain tax positions within “Provision for income taxes” in the Consolidated Statements of Comprehensive Income (Loss) . As of March 31, 2018 , we had approximately $0.9 of accrued interest related to uncertain tax positions. The 2009 through 2016 tax years remain open to examination. During the fourth quarter of 2013, a non-U.S. taxing jurisdiction commenced an examination of our tax returns for the tax years ended December 31, 2012, 2011, 2010 and 2009 that is anticipated to be completed within six months of the reporting date. During the second quarter of 2017, another non-U.S. taxing jurisdiction commenced an examination of our tax return for tax year ended December 31, 2015 that is anticipated to be completed within three months of the reporting date. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Defined Benefit Pension Plans The service cost component of net periodic benefit expense is included in “Operating income,” while all other components of net periodic benefit expense are included in “Other expense, net” in the Consolidated Statements of Comprehensive Income (Loss). The components of the net periodic benefit expense are as follows: U.S. pension benefits For the three months ended March 31, 2018 March 31, 2017 Service cost $ 1.1 $ 1.0 Interest cost 1.4 1.4 Amortization of net actuarial losses 0.5 0.5 Amortization of prior service cost 0.1 0.1 Expected return on plan assets (2.6 ) (2.6 ) Net periodic benefit expense $ 0.5 $ 0.4 Non U.S. pension benefits For the three months ended March 31, 2018 March 31, 2017 Service cost $ 0.7 $ 0.9 Interest cost 0.5 0.4 Amortization of net actuarial losses 0.7 0.7 Net periodic benefit expense $ 1.9 $ 2.0 Other Postretirement Benefit Plans The service cost component of net postretirement benefit expense is included in “Operating income,” while all other components of net postretirement benefit expense are included in “Other expense, net” in the Consolidated Statement of Comprehensive Income (Loss). The components of net postretirement benefit expense are as follows: For the three months ended March 31, 2018 March 31, 2017 Service cost $ 0.1 $ — Interest cost 0.2 0.3 Amortization of net actuarial gains (0.2 ) (0.1 ) Amortization of prior service cost 0.1 — Net postretirement benefit expense $ 0.2 $ 0.2 |
Derivative And Other Financial
Derivative And Other Financial Instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Other Financial Instruments | DERIVATIVE AND OTHER FINANCIAL INSTRUMENTS We use forward contracts and options, as well as contractual price escalators, to reduce the risks associated with our metal, natural gas and other supply requirements, as well as fuel costs and certain currency exposures. Generally, we enter into master netting arrangements with our counterparties and offset net derivative positions with the same counterparties against amounts recognized for the right to reclaim cash collateral or the obligation to return cash collateral under those arrangements in our Consolidated Balance Sheet. For classification purposes, we record the net fair value of each type of derivative position that is expected to settle in less than one year with each counterparty as a net current asset or liability and each type of long-term position as a net long-term asset or liability. No cash collateral was posted at March 31, 2018 or December 31, 2017 . The amounts shown in the table below represent the gross amounts of recognized assets and liabilities, the amounts offset in the Consolidated Balance Sheet and the net amounts of assets and liabilities presented therein. As of March 31, 2018 and December 31, 2017 , there were no amounts subject to an enforceable master netting arrangement or similar agreement that have not been offset in the Consolidated Balance Sheet. Fair Value of Derivatives as of March 31, 2018 December 31, 2017 Derivatives by Type Asset Liability Asset Liability Metal $ 48.1 $ (18.5 ) $ 33.5 $ (36.0 ) Energy 0.2 — 0.2 (0.1 ) Currency 3.4 — 1.6 (0.1 ) Total 51.7 (18.5 ) 35.3 (36.2 ) Effect of counterparty netting (18.1 ) 18.1 (27.2 ) 27.2 Net derivatives as classified in the balance sheet $ 33.6 $ (0.4 ) $ 8.1 $ (9.0 ) The fair value of our derivative financial instruments at March 31, 2018 and December 31, 2017 are recorded in the Consolidated Balance Sheet as follows: Asset Derivatives Balance Sheet Location March 31, 2018 December 31, 2017 Metal Prepaid expenses and other current assets $ 28.5 $ 2.2 Other long-term assets 1.5 4.3 Energy Prepaid expenses and other current assets 0.2 0.1 Currency Prepaid expenses and other current assets 1.6 0.8 Other long-term assets 1.8 0.7 Total $ 33.6 $ 8.1 Liability Derivatives Balance Sheet Location March 31, 2018 December 31, 2017 Metal Accrued liabilities $ — $ 9.0 Metal Other long-term liabilities 0.4 — Total $ 0.4 $ 9.0 Both realized and unrealized gains and losses on derivative financial instruments are included within “ (Gains) losses on derivative financial instruments ” in the Consolidated Statements of Comprehensive Income (Loss) . Realized losses and (gains) on derivative financial instruments totaled the following: For the three months ended March 31, 2018 March 31, 2017 Metal $ 1.0 $ 19.5 Energy (0.2 ) 0.4 Currency (1.0 ) 0.5 Metal Hedging The selling prices of the majority of the orders for our products are established at the time of order entry or, for certain customers, under long-term contracts. As the related raw materials used to produce these orders can be purchased several months or years after the selling prices are fixed, margins are subject to the risk of changes in the purchase price of the raw materials used for these fixed price sales. In order to manage this transactional exposure, future, swaps or forward purchase contracts are purchased at the time the selling prices are fixed. As metal is purchased to fill these fixed price sales orders, future, swaps or forward contracts are then sold. We also maintain a significant amount of inventory on-hand to meet anticipated and unpriced future sales. In order to preserve the value of this inventory, future or forward contracts are sold at the time inventory is purchased. As sales orders are priced, future or forward contracts are purchased. These derivatives generally settle within three months. We can also use call option contracts, which function in a manner similar to the natural gas call option contracts discussed below, and put option contracts for managing metal price exposures. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract. Upon settlement of a put option contract, we receive cash and recognize a related gain if the closing price is less than the strike price of the put option. If the put option strike price is less than the closing price, no amount is paid and the option expires. As of March 31, 2018 we had 0.2 million metric tons and 0.2 million metric tons of metal buy and metal sell derivative contracts, respectively. As of December 31, 2017 , we had 0.1 million metric tons and 0.2 million metric tons of metal buy and metal sell derivative contracts, respectively. Energy Hedging To manage our price exposure for natural gas purchases, we fix the future price of a portion of our natural gas requirements by entering into financial hedge agreements. Under these agreements, payments are made or received based on the differential between the monthly closing price on the New York Mercantile Exchange (“NYMEX”) and the contractual hedge price. We can also use a combination of call option contracts and put option contracts for managing the exposure to increasing natural gas prices while maintaining our ability to benefit from declining prices. Upon settlement of call option contracts, we receive cash and recognize a related gain if the NYMEX closing price exceeds the strike price of the call option. If the call option strike price exceeds the NYMEX closing price, no amount is received and the option expires unexercised. Upon settlement of a put option contract, we pay cash and recognize a related loss if the NYMEX closing price is lower than the strike price of the put option. If the put option strike price is less than the NYMEX closing price, no amount is paid and the option expires unexercised. Option contracts require the payment of a premium which is recorded as a realized loss upon settlement or expiration of the option contract. Natural gas cost can also be managed through the use of cost escalators included in some of our long-term supply contracts with customers, which limits exposure to natural gas price risk. As of March 31, 2018 and December 31, 2017 , we had 3.5 trillion of British thermal unit forward buy contracts. We use independent freight carriers to deliver our products. As part of the total freight charge, these carriers include a per mile diesel surcharge based on the Department of Energy, Energy Information Administration’s (“DOE”) Weekly Retail Automotive Diesel National Average Price. From time to time we may enter into over-the-counter DOE diesel fuel swaps with financial counterparties to mitigate the impact of the volatility of diesel fuel prices on our freight costs. Under these swap agreements, we pay a fixed price per gallon of diesel fuel determined at the time the agreements were executed and receive a floating rate payment that is determined on a monthly basis based on the average price of the DOE Diesel Fuel Index during the applicable month. The swaps are designed to offset increases or decreases in fuel surcharges that we pay to our carriers. All swaps are financially settled. There is no possibility of physical settlement. As of March 31, 2018 and December 31, 2017 , we had 3.5 million gallons and 1.5 million gallons of diesel swap contracts, respectively. Currency Hedging Our aerospace and heat exchanger businesses expose the U.S. dollar operating results of our European operations to fluctuations in the euro as the sales contracts are generally in U.S. dollars while the costs of production are in euros. In order to mitigate the risk that fluctuations in the euro may have on our business, we have entered into forward currency contracts. As of March 31, 2018 and December 31, 2017 , we had euro forward contracts covering a notional amount of €82.6 million and €100.8 million , respectively. Credit Risk We are exposed to losses in the event of non-performance by the counterparties to the derivative financial instruments discussed above; however, we do not anticipate any non-performance by the counterparties. The counterparties are evaluated for creditworthiness and risk assessment prior to initiating trading activities with the brokers and periodically throughout each year while actively trading. Recurring Fair Value Measurements Derivative contracts are recorded at fair value using quoted market prices and significant other observable inputs. Fair value is defined by FASB Accounting Standards Codification 820, “Fair Value Measurements and Disclosures,” as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below: Level 1—Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2—Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. Level 3—Inputs that are both significant to the fair value measurement and unobservable. We endeavor to use the best available information in measuring fair value. Where appropriate, valuations are adjusted for various factors such as liquidity, bid/offer spreads, and credit considerations. Such adjustments are generally based on available market evidence and unobservable inputs. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. As of March 31, 2018 and December 31, 2017 , all of our derivative assets and liabilities represent Level 2 fair value measurements. Other Financial Instruments The carrying amount, fair values and level in the fair value hierarchy of our other financial instruments at March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 December 31, 2017 Carrying Amount Fair Value Level in the Fair Value Hierarchy Carrying Amount Fair Value Level in the Fair Value Hierarchy Cash and cash equivalents $ 79.1 $ 79.1 Level 1 $ 102.4 $ 102.4 Level 1 Restricted cash 5.7 5.7 Level 1 5.6 5.6 Level 1 ABL Facility 365.9 365.9 Level 2 319.3 319.3 Level 2 7 7 / 8 % Senior Notes 437.0 432.6 Level 1 436.7 438.1 Level 1 9 ½ % Senior Secured Notes 800.7 834.0 Level 1 800.8 847.3 Level 1 Exchangeable Notes 44.5 45.4 Level 3 44.5 45.4 Level 3 Zhenjiang Term Loans 172.1 172.6 Level 3 169.8 170.3 Level 3 The principal amount of the ABL Facility approximates fair value because the interest rate paid is variable and there have been no significant changes in the credit risk of Aleris International subsequent to the borrowings. The fair values of the 7 7 / 8 % Senior Notes due 2020 (the “7 7 / 8 % Senior Notes”) and 9 ½ % Senior Secured Notes due 2021 (the “9 ½ % Senior Secured Notes”) were estimated using market quotations. The fair value of Aleris International’s Exchangeable Notes was estimated using a binomial lattice pricing model based on the fair value of our common stock, a risk-free interest rate of 2.3% and 1.9% as of March 31, 2018 and December 31, 2017 , respectively and expected equity volatility of 60% as of March 31, 2018 and December 31, 2017 . Expected equity volatility was determined based on historical stock prices and implied and stated volatilities of our peer companies. The principal amount of the Zhenjiang Term Loans approximates fair value because the interest rate paid is variable, is set for periods of six months or less and there have been no significant changes in the credit risk of Aleris Zhenjiang subsequent to the inception of the Zhenjiang Term Loans. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Statements | CONDENSED CONSOLIDATING FINANCIAL STATEMENTS Aleris Corporation, the direct parent of Aleris International, and certain of its subsidiaries (collectively, the “Guarantor Subsidiaries”) are guarantors of the indebtedness under the 7 7 / 8 % Senior Notes. Aleris Corporation and each of the Guarantor Subsidiaries have fully and unconditionally guaranteed (subject, in the case of the Guarantor Subsidiaries, to customary release provisions as described below), on a joint and several basis, to pay principal and interest related to the 7 7 / 8 % Senior Notes and Aleris International and each of the Guarantor Subsidiaries are directly or indirectly 100% owned subsidiaries of Aleris Corporation. For purposes of complying with the reporting requirements of Aleris International and the Guarantor Subsidiaries, presented below are condensed consolidating financial statements of Aleris Corporation, Aleris International, the Guarantor Subsidiaries, and those other subsidiaries of Aleris Corporation that are not guaranteeing the indebtedness under the 7 7 / 8 % Senior Notes (the “Non-Guarantor Subsidiaries”). Aleris Corporation and the Guarantor Subsidiaries are also guarantors under the 9 ½ % Senior Secured Notes. The condensed consolidating balance sheets are presented as of March 31, 2018 and December 31, 2017 . The condensed consolidating statements of comprehensive income (loss) are presented for the three months ended March 31, 2018 and 2017 . The condensed consolidating statements of cash flows are presented for the three months ended March 31, 2018 and 2017 . The guarantee of a Guarantor Subsidiary will be automatically and unconditionally released and discharged in the event of: ▪ any sale of the Guarantor Subsidiary or of all or substantially all of its assets; ▪ a Guarantor Subsidiary being designated as an “unrestricted subsidiary” in accordance with the indentures governing the applicable Senior Notes; ▪ the release or discharge of a Guarantor Subsidiary from its guarantee under the 2015 ABL Facility or other indebtedness that resulted in the obligation of the Guarantor Subsidiary under the indentures governing the applicable Senior Notes; and ▪ the requirements for legal defeasance or covenant defeasance or discharge of the indentures governing the applicable Senior Notes having been satisfied. Upon the completion of the sale of the recycling and specification alloys business on February 27, 2015, the guarantees of 7 7 / 8 % Senior Notes of the Guarantor Subsidiaries that were sold were automatically and unconditionally released. As of March 31, 2018 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ — $ 34.7 $ — $ 46.4 $ (2.0 ) $ 79.1 Accounts receivable, net — 0.1 147.2 216.9 — 364.2 Inventories — — 335.1 340.6 — 675.7 Prepaid expenses and other current assets — 5.6 27.7 47.3 — 80.6 Intercompany receivables — 223.5 85.8 0.9 (310.2 ) — Total Current Assets — 263.9 595.8 652.1 (312.2 ) 1,199.6 Property, plant and equipment, net — — 891.2 579.3 — 1,470.5 Intangible assets, net — — 18.2 15.9 — 34.1 Deferred income taxes — — — 69.5 — 69.5 Other long-term assets — 3.2 8.4 43.5 — 55.1 Investments in subsidiaries 124.7 1,521.4 3.1 — (1,649.2 ) — Total Assets $ 124.7 $ 1,788.5 $ 1,516.7 $ 1,360.3 $ (1,961.4 ) $ 2,828.8 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable $ — $ 4.0 $ 169.8 $ 169.8 $ (2.0 ) $ 341.6 Accrued liabilities — 66.0 65.1 68.8 — 199.9 Current portion of long-term debt — — 0.9 9.4 — 10.3 Intercompany payables 3.8 71.3 204.5 30.6 (310.2 ) — Total Current Liabilities 3.8 141.3 440.3 278.6 (312.2 ) 551.8 Long-term debt — 1,522.2 0.8 296.1 — 1,819.1 Deferred revenue — — 74.0 — 74.0 Deferred income taxes — — 0.5 5.6 6.1 Accrued pension benefits — — 45.0 128.5 173.5 Accrued postretirement benefits — — 33.8 — 33.8 Other long-term liabilities — 0.3 17.2 32.1 49.6 Total Long-Term Liabilities — 1,522.5 171.3 462.3 — 2,156.1 Total equity 120.9 124.7 905.1 619.4 (1,649.2 ) 120.9 Total Liabilities and Equity $ 124.7 $ 1,788.5 $ 1,516.7 $ 1,360.3 $ (1,961.4 ) $ 2,828.8 As of December 31, 2017 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ — $ 40.3 $ — $ 64.2 $ (2.1 ) $ 102.4 Accounts receivable, net — 0.2 83.0 162.5 — 245.7 Inventories — — 286.6 344.6 — 631.2 Prepaid expenses and other current assets — 3.4 10.0 22.7 — 36.1 Intercompany receivables — 134.6 46.0 32.4 (213.0 ) — Total Current Assets — 178.5 425.6 626.4 (215.1 ) 1,015.4 Property, plant and equipment, net — — 903.7 567.2 — 1,470.9 Intangible assets, net — — 18.8 15.9 — 34.7 Deferred income taxes — — — 70.7 — 70.7 Other long-term assets — 3.4 8.0 41.3 — 52.7 Investments in subsidiaries 96.3 1,514.4 4.5 — (1,615.2 ) — Total Assets $ 96.3 $ 1,696.3 $ 1,360.6 $ 1,321.5 $ (1,830.3 ) $ 2,644.4 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable $ — $ 4.3 $ 140.7 $ 156.3 $ (2.1 ) $ 299.2 Accrued liabilities — 43.9 75.8 77.7 — 197.4 Current portion of long-term debt — — 1.0 8.1 — 9.1 Intercompany payables 3.6 54.8 137.8 16.8 (213.0 ) — Total Current Liabilities 3.6 103.0 355.3 258.9 (215.1 ) 505.7 Long-term debt — 1,497.0 1.0 273.4 — 1,771.4 Deferred revenue — — 17.0 — — 17.0 Deferred income taxes — — 0.2 3.8 — 4.0 Accrued pension benefits — — 45.2 125.0 — 170.2 Accrued postretirement benefits — — 34.3 — — 34.3 Other long-term liabilities — — 17.2 31.9 — 49.1 Total Long-Term Liabilities — 1,497.0 114.9 434.1 — 2,046.0 Total equity 92.7 96.3 890.4 628.5 (1,615.2 ) 92.7 Total Liabilities and Equity $ 96.3 $ 1,696.3 $ 1,360.6 $ 1,321.5 $ (1,830.3 ) $ 2,644.4 For the three months ended March 31, 2018 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 414.6 $ 396.7 $ (9.0 ) $ 802.3 Cost of sales — — 390.4 358.4 (9.0 ) 739.8 Gross profit — — 24.2 38.3 — 62.5 Selling, general and administrative expenses — 9.0 17.4 24.2 — 50.6 Restructuring charges — — 0.7 0.2 0.9 Gains on derivative financial instruments — — (22.8 ) (11.1 ) — (33.9 ) Other operating expense, net — — 0.7 — — 0.7 Operating (loss) income — (9.0 ) 28.2 25.0 — 44.2 Interest expense, net — — 26.3 7.5 — 33.8 Other (income) expense, net — (3.7 ) 2.7 1.4 — 0.4 Equity in net earnings of affiliates (4.6 ) (9.9 ) (0.7 ) — 15.2 — Income (loss) before income taxes 4.6 4.6 (0.1 ) 16.1 (15.2 ) 10.0 Provision for income taxes — — 0.2 5.2 — 5.4 Net income (loss) $ 4.6 $ 4.6 $ (0.3 ) $ 10.9 $ (15.2 ) $ 4.6 Comprehensive income $ 25.1 $ 25.1 $ 1.1 $ 30.1 $ (56.3 ) $ 25.1 For the three months ended March 31, 2017 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 349.4 $ 332.1 $ (7.3 ) $ 674.2 Cost of sales — — 324.9 271.0 (7.3 ) 588.6 Gross profit — — 24.5 61.1 — 85.6 Selling, general and administrative expenses — 0.1 32.4 20.4 — 52.9 Restructuring charges — — 0.3 0.1 — 0.4 Losses on derivative financial instruments — — 20.0 8.2 — 28.2 Other operating expense, net — — 1.0 — — 1.0 Operating (loss) income — (0.1 ) (29.2 ) 32.4 — 3.1 Interest expense, net — — 20.7 6.4 — 27.1 Other (income) expense, net — (0.3 ) (1.5 ) 2.3 — 0.5 Equity in net loss (earnings) of affiliates 35.2 35.3 (0.2 ) — (70.3 ) — (Loss) income before income taxes (35.2 ) (35.1 ) (48.2 ) 23.7 70.3 (24.5 ) Provision for (benefit from) income taxes — 0.1 (0.1 ) 10.7 — 10.7 Net (loss) income $ (35.2 ) $ (35.2 ) $ (48.1 ) $ 13.0 $ 70.3 $ (35.2 ) Comprehensive (loss) income $ (25.6 ) $ (25.6 ) $ (47.6 ) $ 22.2 $ 51.0 $ (25.6 ) For the three months ended March 31, 2018 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided (used) by operating activities $ 0.1 $ (2.9 ) $ 6.9 $ 2.5 $ (41.5 ) $ (34.9 ) Investing activities Payments for property, plant and equipment — — (17.8 ) (12.3 ) — (30.1 ) Disbursements of intercompany loans — — — (25.0 ) 25.0 — Repayments from intercompany loans — — — 39.5 (39.5 ) — Equity contributions in subsidiaries — (13.2 ) — — 13.2 — Return of investment in subsidiaries — — 0.1 — (0.1 ) — Other — — (0.3 ) 0.1 — (0.2 ) Net cash (used) provided by investing activities — (13.2 ) (18.0 ) 2.3 (1.4 ) (30.3 ) Financing activities Proceeds from the revolving credit facilities — 80.0 — 53.9 — 133.9 Payments on the revolving credit facilities — (55.0 ) — (35.0 ) — (90.0 ) Payments on other long-term debt — — (0.3 ) (3.5 ) — (3.8 ) Proceeds from intercompany loans — 25.0 — — (25.0 ) — Repayments on intercompany loans — (39.5 ) — — 39.5 — Proceeds from intercompany equity contributions — — 13.2 — (13.2 ) — Dividends paid — — (2.0 ) (39.6 ) 41.6 — Other (0.1 ) — 0.2 (0.1 ) — — Net cash (used) provided by financing activities (0.1 ) 10.5 11.1 (24.3 ) 42.9 40.1 Effect of exchange rate differences on cash, cash equivalents and restricted cash — — — 1.9 — 1.9 Net (decrease) increase in cash, cash equivalents and restricted cash — (5.6 ) — (17.6 ) — (23.2 ) Cash, cash equivalents and restricted cash at beginning of period — 40.3 — 69.7 (2.0 ) 108.0 Cash, cash equivalents and restricted cash at end of period $ — $ 34.7 $ — $ 52.1 $ (2.0 ) $ 84.8 Cash and cash equivalents $ — $ 34.7 $ — $ 46.4 $ (2.0 ) $ 79.1 Restricted cash (included in “Other current assets”) — — — 5.7 — 5.7 Cash, cash equivalents and restricted cash $ — $ 34.7 $ — $ 52.1 $ (2.0 ) $ 84.8 For the three months ended March 31, 2017 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided (used) by operating activities $ 1.1 $ 303.5 $ (355.6 ) $ 11.8 $ 0.6 $ (38.6 ) Investing activities Payments for property, plant and equipment — — (52.7 ) (9.9 ) — (62.6 ) Equity contributions in subsidiaries — (406.6 ) — — 406.6 — Return of investments in subsidiaries — 8.3 5.8 — (14.1 ) — Other — — (0.4 ) — — (0.4 ) Net cash provided (used) by investing activities — (398.3 ) (47.3 ) (9.9 ) 392.5 (63.0 ) Financing activities Proceeds from revolving credit facilities — 55.0 — 104.5 — 159.5 Payments on revolving credit facilities — (185.0 ) — (109.5 ) — (294.5 ) Proceeds from senior secured notes, net of discount — 263.8 — — — 263.8 Payments on other long-term debt — — (0.1 ) (2.2 ) — (2.3 ) Debt issuance costs (1.8 ) — — — (1.8 ) Proceeds from intercompany equity contributions — — 402.6 4.0 (406.6 ) — Dividends paid — — — (14.4 ) 14.4 — Other (1.1 ) — 0.4 (0.5 ) — (1.2 ) Net cash (used) provided by financing activities (1.1 ) 132.0 402.9 (18.1 ) (392.2 ) 123.5 Effect of exchange rate differences on cash, cash equivalents and restricted cash — — — 0.6 — 0.6 Net decrease in cash, cash equivalents and restricted cash — 37.2 — (15.6 ) 0.9 22.5 Cash, cash equivalents and restricted cash at beginning of period — 5.5 — 53.3 (3.2 ) 55.6 Cash, cash equivalents and restricted cash at end of period $ — $ 42.7 $ — $ 37.7 $ (2.3 ) $ 78.1 Cash and cash equivalents $ — $ 42.7 $ — $ 34.2 $ (2.3 ) 74.6 Restricted cash (included in “Other current assets”) — — — 3.5 — 3.5 Cash, cash equivalents and restricted cash $ — $ 42.7 $ — $ 37.7 $ (2.3 ) $ 78.1 |
Basis Of Presentation and Rec19
Basis Of Presentation and Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying unaudited Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In January 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). This guidance gives entities the option to reclassify to retained earnings tax effects resulting from the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) related to items in accumulated other comprehensive income (“AOCI”) that the FASB refers to as having been stranded in AOCI. The new guidance may be applied retrospectively to each period in which the effect of the Tax Act is recognized, or in the period of adoption. We elected to early adopt ASU 2018-02 in the first quarter of 2018. As we maintain a full valuation allowance against our U.S. deferred tax assets, there was no net impact on retained earnings. In March 2017, the FASB issued ASU No. 2017-07, “Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost” (“ASU 2017-07”). This guidance requires the presentation of all components of net periodic benefit cost, other than service costs, outside of operating income. Upon adoption, only the service cost component of periodic benefit costs are included in operating income and eligible for capitalization in assets. This guidance was adopted in the first quarter of 2018, and $0.5 and $0.3 of pension and postretirement benefit expenses were reclassified from “Cost of sales” and “Selling, general and administrative expenses,” respectively, to “Other expense, net” in the Consolidated Statement of Comprehensive Income (Loss) for the three months ended March 31, 2017. The adoption had no impact on reported net income or retained earnings. In February 2016, the FASB issued ASU No. 2016-02, “Leases” (“ASU 2016-02”). This guidance requires lessees to put most leases on their balance sheets but recognize expense on the income statement in a manner similar to current guidance. The guidance is effective for the Company for fiscal years beginning after December 15, 2018, and a modified retrospective approach is required for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements. We are currently evaluating the impact the application of ASU 2016-02 will have on the Company’s Consolidated Financial Statements. We expect that the adoption will result in an increase to our long-term assets and long-term liabilities as a result of substantially all operating leases existing as of the adoption date being capitalized along with the associated obligations. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09” or “ASC 606”), which was the result of a joint project by the FASB and International Accounting Standards Board to clarify the principles for recognizing revenue and to develop a common revenue standard for GAAP and International Financial Reporting Standards. Subsequent accounting standard updates have been issued which amend and/or clarify the application of ASU 2014-09. The Company adopted ASU 2014-09 in the first quarter of 2018. In evaluating the impact of the standard, management has concluded that control has transferred on some of the inventory held on consignment at customer locations or in third-party warehouses. Subsequent to adoption of the standard, revenue has been recognized on such consignment inventory when it is delivered into consignment. We adopted this standard using the modified retrospective approach. The January 1, 2018 adoption of the standard resulted in an increase to accounts receivable, accrued liabilities and deferred income tax liabilities of $28.6 , $1.6 and $1.2 , respectively, and a decrease in inventory of $23.0 . The net impact was recorded as a decrease to retained deficit of $2.8 . The pre-tax impact of the adoption of ASU 2014-09 on our Consolidated Balance Sheet at March 31, 2018 and our Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2018 is as follows: Increase (decrease) Consolidated Balance Sheet Accounts receivable $ 24.7 Inventories (21.6 ) Accrued liabilities 1.9 Consolidated Statements of Comprehensive Income (Loss) Revenues $ (4.6 ) Cost of goods sold (3.6 ) |
Basis Of Presentation and Rec20
Basis Of Presentation and Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] | The pre-tax impact of the adoption of ASU 2014-09 on our Consolidated Balance Sheet at March 31, 2018 and our Consolidated Statements of Comprehensive Income (Loss) for the three months ended March 31, 2018 is as follows: Increase (decrease) Consolidated Balance Sheet Accounts receivable $ 24.7 Inventories (21.6 ) Accrued liabilities 1.9 Consolidated Statements of Comprehensive Income (Loss) Revenues $ (4.6 ) Cost of goods sold (3.6 ) |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | The components of our “Inventories” as of March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 December 31, 2017 Raw materials $ 206.9 $ 207.6 Work in process 270.2 210.8 Finished goods 164.3 181.6 Supplies 34.3 31.2 Total inventories $ 675.7 $ 631.2 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table discloses the disaggregated revenue from our contracts with customers by major end-use: For the three months ended March 31, 2018 North America Europe Asia Pacific Intra-entity sales Total Aerospace $ — $ 70.8 $ 14.8 $ — $ 85.6 Automotive 26.8 101.3 — (9.0 ) 119.1 Heat exchanger — 66.0 — — 66.0 Building and construction 189.2 — — — 189.2 Truck trailer 43.8 — — — 43.8 Distribution 107.0 — 15.9 — 122.9 Regional plate and sheet — 109.1 — — 109.1 Other 47.8 17.9 0.9 — 66.6 $ 414.6 $ 365.1 $ 31.6 $ (9.0 ) $ 802.3 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our debt as of March 31, 2018 and December 31, 2017 is summarized as follows: March 31, 2018 December 31, 2017 ABL Facility $ 365.9 $ 319.3 7 7/8% Senior Notes due 2020, net of discount and deferred issuance costs of $3.1 and $3.3 at March 31, 2018 and December 31, 2017, respectively 437.0 436.7 9 1/2% Senior Secured Notes due 2021, inclusive of net premiums and deferred issuance costs of $0.7 and $0.8 at March 31, 2018 and December 31, 2017, respectively 800.7 800.8 Exchangeable Notes, net of discount of $0.3 at March 31, 2018 and December 31, 2017 44.5 44.5 Zhenjiang Term Loans, net of discount of $0.5 at March 31, 2018 and December 31, 2017 172.1 169.8 Other 9.2 9.4 Total debt 1,829.4 1,780.5 Less: Current portion of long-term debt 10.3 9.1 Total long-term debt $ 1,819.1 $ 1,771.4 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | The following table summarizes the activity within stockholders’ equity for the three months ended March 31, 2018 : Total Equity Total equity at January 1, 2018 $ 92.7 Net income 4.6 Other comprehensive income 20.5 Stock-based compensation activity 0.3 Adoption of ASC 606 2.8 Total equity at March 31, 2018 $ 120.9 |
Changes in the Number of Outstanding Common Shares | The following table shows changes in the number of our issued and outstanding shares of common stock: Issued and outstanding shares of common stock Balance at January 1, 2018 32,001,318 Issuance associated with vested restricted stock units 218,210 Balance at March 31, 2018 32,219,528 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table summarizes the activity within accumulated other comprehensive loss for the three months ended March 31, 2018 : Currency translation Pension and other postretirement Total Balance at January 1, 2018 $ (64.2 ) $ (76.3 ) $ (140.5 ) Current period currency translation adjustments 20.2 (0.6 ) 19.6 Amortization of net actuarial losses and prior service costs, net of tax — 0.9 0.9 Balance at March 31, 2018 $ (44.0 ) $ (76.0 ) $ (120.0 ) |
Schedule of Amounts Recognized in Other Comprehensive Income | A summary of reclassifications out of accumulated other comprehensive loss for the three months ended March 31, 2018 is provided below: Description of reclassifications out of accumulated other comprehensive loss Amount reclassified Amortization of net actuarial losses and prior service costs $ (1.1 ) (a) Deferred tax benefit on pension and other postretirement liability adjustments 0.2 Losses reclassified into earnings, net of tax $ (0.9 ) (a) This component of accumulated other comprehensive loss is included in the computation of net periodic benefit expense and net postretirement benefit expense (see Note 11, “Employee Benefit Plans,” for additional detail). |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | The following table shows our revenues and segment income for the periods presented in our Consolidated Statements of Comprehensive Income (Loss) : Three months ended March 31, 2018 North America Europe Asia Pacific Intra-entity Revenues Total Revenues to external customers $ 414.6 $ 356.1 $ 31.6 $ 802.3 Intra-entity revenues — 9.0 — $ (9.0 ) — Total revenues $ 414.6 $ 365.1 $ 31.6 $ (9.0 ) $ 802.3 Segment income $ 41.5 $ 28.3 $ 2.3 $ 72.1 Three months ended March 31, 2017 North America Europe Asia Pacific Intra-entity Revenues Total Revenues to external customers $ 348.5 $ 302.6 $ 23.1 $ 674.2 Intra-entity revenues 3.1 6.4 1.1 $ (10.6 ) — Total revenues $ 351.6 $ 309.0 $ 24.2 $ (10.6 ) $ 674.2 Segment income $ 24.2 $ 38.0 $ 1.4 $ 63.6 |
Schedule of Segment Reporting Information, by Segment | The following table reconciles total segment income to “ Income (loss) before income taxes ” as reported in our Consolidated Statements of Comprehensive Income (Loss) : For the three months ended March 31, 2018 March 31, 2017 Total segment income $ 72.1 $ 63.6 Unallocated amounts: Depreciation and amortization (34.7 ) (25.7 ) Other corporate general and administrative expenses (11.2 ) (12.4 ) Restructuring charges (0.9 ) (0.4 ) Interest expense, net (33.8 ) (27.1 ) Unallocated gains (losses) on derivative financial instruments 33.7 (7.7 ) Unallocated currency exchange gains (losses) 1.2 (0.1 ) Start-up costs (16.0 ) (14.5 ) Other expense, net (0.4 ) (0.2 ) Income (loss) before income taxes $ 10.0 $ (24.5 ) |
Reconciliation of Assets from Segment to Consolidated | The following table shows our reportable segment assets as of March 31, 2018 and December 31, 2017 : March 31, 2018 December 31, 2017 Assets North America $ 1,427.3 $ 1,309.9 Europe 791.1 738.4 Asia Pacific 382.9 371.4 Unallocated assets 227.5 224.7 Total consolidated assets $ 2,828.8 $ 2,644.4 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The components of net postretirement benefit expense are as follows: For the three months ended March 31, 2018 March 31, 2017 Service cost $ 0.1 $ — Interest cost 0.2 0.3 Amortization of net actuarial gains (0.2 ) (0.1 ) Amortization of prior service cost 0.1 — Net postretirement benefit expense $ 0.2 $ 0.2 |
U.S. Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | The components of the net periodic benefit expense are as follows: U.S. pension benefits For the three months ended March 31, 2018 March 31, 2017 Service cost $ 1.1 $ 1.0 Interest cost 1.4 1.4 Amortization of net actuarial losses 0.5 0.5 Amortization of prior service cost 0.1 0.1 Expected return on plan assets (2.6 ) (2.6 ) Net periodic benefit expense $ 0.5 $ 0.4 |
Non U.S. Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Defined Benefit Plans Disclosures | Non U.S. pension benefits For the three months ended March 31, 2018 March 31, 2017 Service cost $ 0.7 $ 0.9 Interest cost 0.5 0.4 Amortization of net actuarial losses 0.7 0.7 Net periodic benefit expense $ 1.9 $ 2.0 |
Derivative And Other Financia28
Derivative And Other Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The amounts shown in the table below represent the gross amounts of recognized assets and liabilities, the amounts offset in the Consolidated Balance Sheet and the net amounts of assets and liabilities presented therein. As of March 31, 2018 and December 31, 2017 , there were no amounts subject to an enforceable master netting arrangement or similar agreement that have not been offset in the Consolidated Balance Sheet. Fair Value of Derivatives as of March 31, 2018 December 31, 2017 Derivatives by Type Asset Liability Asset Liability Metal $ 48.1 $ (18.5 ) $ 33.5 $ (36.0 ) Energy 0.2 — 0.2 (0.1 ) Currency 3.4 — 1.6 (0.1 ) Total 51.7 (18.5 ) 35.3 (36.2 ) Effect of counterparty netting (18.1 ) 18.1 (27.2 ) 27.2 Net derivatives as classified in the balance sheet $ 33.6 $ (0.4 ) $ 8.1 $ (9.0 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of our derivative financial instruments at March 31, 2018 and December 31, 2017 are recorded in the Consolidated Balance Sheet as follows: Asset Derivatives Balance Sheet Location March 31, 2018 December 31, 2017 Metal Prepaid expenses and other current assets $ 28.5 $ 2.2 Other long-term assets 1.5 4.3 Energy Prepaid expenses and other current assets 0.2 0.1 Currency Prepaid expenses and other current assets 1.6 0.8 Other long-term assets 1.8 0.7 Total $ 33.6 $ 8.1 Liability Derivatives Balance Sheet Location March 31, 2018 December 31, 2017 Metal Accrued liabilities $ — $ 9.0 Metal Other long-term liabilities 0.4 — Total $ 0.4 $ 9.0 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Realized losses and (gains) on derivative financial instruments totaled the following: For the three months ended March 31, 2018 March 31, 2017 Metal $ 1.0 $ 19.5 Energy (0.2 ) 0.4 Currency (1.0 ) 0.5 |
Schedule of Fair Value Measurements, Nonrecurring | The carrying amount, fair values and level in the fair value hierarchy of our other financial instruments at March 31, 2018 and December 31, 2017 are as follows: March 31, 2018 December 31, 2017 Carrying Amount Fair Value Level in the Fair Value Hierarchy Carrying Amount Fair Value Level in the Fair Value Hierarchy Cash and cash equivalents $ 79.1 $ 79.1 Level 1 $ 102.4 $ 102.4 Level 1 Restricted cash 5.7 5.7 Level 1 5.6 5.6 Level 1 ABL Facility 365.9 365.9 Level 2 319.3 319.3 Level 2 7 7 / 8 % Senior Notes 437.0 432.6 Level 1 436.7 438.1 Level 1 9 ½ % Senior Secured Notes 800.7 834.0 Level 1 800.8 847.3 Level 1 Exchangeable Notes 44.5 45.4 Level 3 44.5 45.4 Level 3 Zhenjiang Term Loans 172.1 172.6 Level 3 169.8 170.3 Level 3 |
Condensed Consolidating Finan29
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | As of March 31, 2018 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ — $ 34.7 $ — $ 46.4 $ (2.0 ) $ 79.1 Accounts receivable, net — 0.1 147.2 216.9 — 364.2 Inventories — — 335.1 340.6 — 675.7 Prepaid expenses and other current assets — 5.6 27.7 47.3 — 80.6 Intercompany receivables — 223.5 85.8 0.9 (310.2 ) — Total Current Assets — 263.9 595.8 652.1 (312.2 ) 1,199.6 Property, plant and equipment, net — — 891.2 579.3 — 1,470.5 Intangible assets, net — — 18.2 15.9 — 34.1 Deferred income taxes — — — 69.5 — 69.5 Other long-term assets — 3.2 8.4 43.5 — 55.1 Investments in subsidiaries 124.7 1,521.4 3.1 — (1,649.2 ) — Total Assets $ 124.7 $ 1,788.5 $ 1,516.7 $ 1,360.3 $ (1,961.4 ) $ 2,828.8 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable $ — $ 4.0 $ 169.8 $ 169.8 $ (2.0 ) $ 341.6 Accrued liabilities — 66.0 65.1 68.8 — 199.9 Current portion of long-term debt — — 0.9 9.4 — 10.3 Intercompany payables 3.8 71.3 204.5 30.6 (310.2 ) — Total Current Liabilities 3.8 141.3 440.3 278.6 (312.2 ) 551.8 Long-term debt — 1,522.2 0.8 296.1 — 1,819.1 Deferred revenue — — 74.0 — 74.0 Deferred income taxes — — 0.5 5.6 6.1 Accrued pension benefits — — 45.0 128.5 173.5 Accrued postretirement benefits — — 33.8 — 33.8 Other long-term liabilities — 0.3 17.2 32.1 49.6 Total Long-Term Liabilities — 1,522.5 171.3 462.3 — 2,156.1 Total equity 120.9 124.7 905.1 619.4 (1,649.2 ) 120.9 Total Liabilities and Equity $ 124.7 $ 1,788.5 $ 1,516.7 $ 1,360.3 $ (1,961.4 ) $ 2,828.8 As of December 31, 2017 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ — $ 40.3 $ — $ 64.2 $ (2.1 ) $ 102.4 Accounts receivable, net — 0.2 83.0 162.5 — 245.7 Inventories — — 286.6 344.6 — 631.2 Prepaid expenses and other current assets — 3.4 10.0 22.7 — 36.1 Intercompany receivables — 134.6 46.0 32.4 (213.0 ) — Total Current Assets — 178.5 425.6 626.4 (215.1 ) 1,015.4 Property, plant and equipment, net — — 903.7 567.2 — 1,470.9 Intangible assets, net — — 18.8 15.9 — 34.7 Deferred income taxes — — — 70.7 — 70.7 Other long-term assets — 3.4 8.0 41.3 — 52.7 Investments in subsidiaries 96.3 1,514.4 4.5 — (1,615.2 ) — Total Assets $ 96.3 $ 1,696.3 $ 1,360.6 $ 1,321.5 $ (1,830.3 ) $ 2,644.4 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable $ — $ 4.3 $ 140.7 $ 156.3 $ (2.1 ) $ 299.2 Accrued liabilities — 43.9 75.8 77.7 — 197.4 Current portion of long-term debt — — 1.0 8.1 — 9.1 Intercompany payables 3.6 54.8 137.8 16.8 (213.0 ) — Total Current Liabilities 3.6 103.0 355.3 258.9 (215.1 ) 505.7 Long-term debt — 1,497.0 1.0 273.4 — 1,771.4 Deferred revenue — — 17.0 — — 17.0 Deferred income taxes — — 0.2 3.8 — 4.0 Accrued pension benefits — — 45.2 125.0 — 170.2 Accrued postretirement benefits — — 34.3 — — 34.3 Other long-term liabilities — — 17.2 31.9 — 49.1 Total Long-Term Liabilities — 1,497.0 114.9 434.1 — 2,046.0 Total equity 92.7 96.3 890.4 628.5 (1,615.2 ) 92.7 Total Liabilities and Equity $ 96.3 $ 1,696.3 $ 1,360.6 $ 1,321.5 $ (1,830.3 ) $ 2,644.4 |
Schedule of Condensed Income Statement | For the three months ended March 31, 2018 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 414.6 $ 396.7 $ (9.0 ) $ 802.3 Cost of sales — — 390.4 358.4 (9.0 ) 739.8 Gross profit — — 24.2 38.3 — 62.5 Selling, general and administrative expenses — 9.0 17.4 24.2 — 50.6 Restructuring charges — — 0.7 0.2 0.9 Gains on derivative financial instruments — — (22.8 ) (11.1 ) — (33.9 ) Other operating expense, net — — 0.7 — — 0.7 Operating (loss) income — (9.0 ) 28.2 25.0 — 44.2 Interest expense, net — — 26.3 7.5 — 33.8 Other (income) expense, net — (3.7 ) 2.7 1.4 — 0.4 Equity in net earnings of affiliates (4.6 ) (9.9 ) (0.7 ) — 15.2 — Income (loss) before income taxes 4.6 4.6 (0.1 ) 16.1 (15.2 ) 10.0 Provision for income taxes — — 0.2 5.2 — 5.4 Net income (loss) $ 4.6 $ 4.6 $ (0.3 ) $ 10.9 $ (15.2 ) $ 4.6 Comprehensive income $ 25.1 $ 25.1 $ 1.1 $ 30.1 $ (56.3 ) $ 25.1 For the three months ended March 31, 2017 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 349.4 $ 332.1 $ (7.3 ) $ 674.2 Cost of sales — — 324.9 271.0 (7.3 ) 588.6 Gross profit — — 24.5 61.1 — 85.6 Selling, general and administrative expenses — 0.1 32.4 20.4 — 52.9 Restructuring charges — — 0.3 0.1 — 0.4 Losses on derivative financial instruments — — 20.0 8.2 — 28.2 Other operating expense, net — — 1.0 — — 1.0 Operating (loss) income — (0.1 ) (29.2 ) 32.4 — 3.1 Interest expense, net — — 20.7 6.4 — 27.1 Other (income) expense, net — (0.3 ) (1.5 ) 2.3 — 0.5 Equity in net loss (earnings) of affiliates 35.2 35.3 (0.2 ) — (70.3 ) — (Loss) income before income taxes (35.2 ) (35.1 ) (48.2 ) 23.7 70.3 (24.5 ) Provision for (benefit from) income taxes — 0.1 (0.1 ) 10.7 — 10.7 Net (loss) income $ (35.2 ) $ (35.2 ) $ (48.1 ) $ 13.0 $ 70.3 $ (35.2 ) Comprehensive (loss) income $ (25.6 ) $ (25.6 ) $ (47.6 ) $ 22.2 $ 51.0 $ (25.6 ) |
Schedule of Condensed Cash Flow Statement | For the three months ended March 31, 2018 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided (used) by operating activities $ 0.1 $ (2.9 ) $ 6.9 $ 2.5 $ (41.5 ) $ (34.9 ) Investing activities Payments for property, plant and equipment — — (17.8 ) (12.3 ) — (30.1 ) Disbursements of intercompany loans — — — (25.0 ) 25.0 — Repayments from intercompany loans — — — 39.5 (39.5 ) — Equity contributions in subsidiaries — (13.2 ) — — 13.2 — Return of investment in subsidiaries — — 0.1 — (0.1 ) — Other — — (0.3 ) 0.1 — (0.2 ) Net cash (used) provided by investing activities — (13.2 ) (18.0 ) 2.3 (1.4 ) (30.3 ) Financing activities Proceeds from the revolving credit facilities — 80.0 — 53.9 — 133.9 Payments on the revolving credit facilities — (55.0 ) — (35.0 ) — (90.0 ) Payments on other long-term debt — — (0.3 ) (3.5 ) — (3.8 ) Proceeds from intercompany loans — 25.0 — — (25.0 ) — Repayments on intercompany loans — (39.5 ) — — 39.5 — Proceeds from intercompany equity contributions — — 13.2 — (13.2 ) — Dividends paid — — (2.0 ) (39.6 ) 41.6 — Other (0.1 ) — 0.2 (0.1 ) — — Net cash (used) provided by financing activities (0.1 ) 10.5 11.1 (24.3 ) 42.9 40.1 Effect of exchange rate differences on cash, cash equivalents and restricted cash — — — 1.9 — 1.9 Net (decrease) increase in cash, cash equivalents and restricted cash — (5.6 ) — (17.6 ) — (23.2 ) Cash, cash equivalents and restricted cash at beginning of period — 40.3 — 69.7 (2.0 ) 108.0 Cash, cash equivalents and restricted cash at end of period $ — $ 34.7 $ — $ 52.1 $ (2.0 ) $ 84.8 Cash and cash equivalents $ — $ 34.7 $ — $ 46.4 $ (2.0 ) $ 79.1 Restricted cash (included in “Other current assets”) — — — 5.7 — 5.7 Cash, cash equivalents and restricted cash $ — $ 34.7 $ — $ 52.1 $ (2.0 ) $ 84.8 For the three months ended March 31, 2017 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided (used) by operating activities $ 1.1 $ 303.5 $ (355.6 ) $ 11.8 $ 0.6 $ (38.6 ) Investing activities Payments for property, plant and equipment — — (52.7 ) (9.9 ) — (62.6 ) Equity contributions in subsidiaries — (406.6 ) — — 406.6 — Return of investments in subsidiaries — 8.3 5.8 — (14.1 ) — Other — — (0.4 ) — — (0.4 ) Net cash provided (used) by investing activities — (398.3 ) (47.3 ) (9.9 ) 392.5 (63.0 ) Financing activities Proceeds from revolving credit facilities — 55.0 — 104.5 — 159.5 Payments on revolving credit facilities — (185.0 ) — (109.5 ) — (294.5 ) Proceeds from senior secured notes, net of discount — 263.8 — — — 263.8 Payments on other long-term debt — — (0.1 ) (2.2 ) — (2.3 ) Debt issuance costs (1.8 ) — — — (1.8 ) Proceeds from intercompany equity contributions — — 402.6 4.0 (406.6 ) — Dividends paid — — — (14.4 ) 14.4 — Other (1.1 ) — 0.4 (0.5 ) — (1.2 ) Net cash (used) provided by financing activities (1.1 ) 132.0 402.9 (18.1 ) (392.2 ) 123.5 Effect of exchange rate differences on cash, cash equivalents and restricted cash — — — 0.6 — 0.6 Net decrease in cash, cash equivalents and restricted cash — 37.2 — (15.6 ) 0.9 22.5 Cash, cash equivalents and restricted cash at beginning of period — 5.5 — 53.3 (3.2 ) 55.6 Cash, cash equivalents and restricted cash at end of period $ — $ 42.7 $ — $ 37.7 $ (2.3 ) $ 78.1 Cash and cash equivalents $ — $ 42.7 $ — $ 34.2 $ (2.3 ) 74.6 Restricted cash (included in “Other current assets”) — — — 3.5 — 3.5 Cash, cash equivalents and restricted cash $ — $ 42.7 $ — $ 37.7 $ (2.3 ) $ 78.1 |
Basis Of Presentation and Rec30
Basis Of Presentation and Recent Accounting Pronouncements (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Retained earnings | $ (196,000,000) | $ (203,400,000) | |
Accounting Standards Update 2018-02 [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Retained earnings | 0 | ||
Accounting Standards Update 2017-07 [Member] | Retained Earnings [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Net Periodic Defined Benefits Expense Reversal Of Expense Excluding Service Cost Component | $ 0 | ||
Accounting Standards Update 2014-09 [Member] | Accounts Receivable [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | 28,600,000 | ||
Accounting Standards Update 2014-09 [Member] | Accrued Liabilities [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | (1,600,000) | ||
Accounting Standards Update 2014-09 [Member] | Deferred Income Tax Liability [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | (1,200,000) | ||
Accounting Standards Update 2014-09 [Member] | Inventories [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | (23,000,000) | ||
Retained Earnings [Member] | Accounting Standards Update 2014-09 [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ (2,800,000) | ||
Cost of Sales [Member] | Accounting Standards Update 2017-07 [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Net Periodic Defined Benefits Expense Reversal Of Expense Excluding Service Cost Component | (500,000) | ||
Selling, General and Administrative Expenses [Member] | Accounting Standards Update 2017-07 [Member] | |||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | |||
Net Periodic Defined Benefits Expense Reversal Of Expense Excluding Service Cost Component | $ (300,000) |
Basis Of Presentation and Rec31
Basis Of Presentation and Recent Accounting Pronouncements - Adoption of 606 Schedule (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | $ 364.2 | $ 245.7 | |
Inventory, Net | 675.7 | 631.2 | |
Accrued Liabilities, Current | 199.9 | $ 197.4 | |
Revenues | 802.3 | $ 674.2 | |
Cost of Goods Sold | 739.8 | $ 588.6 | |
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Accounts receivable, net | 24.7 | ||
Inventory, Net | (21.6) | ||
Accrued Liabilities, Current | 1.9 | ||
Revenues | (4.6) | ||
Cost of Goods Sold | $ (3.6) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 206.9 | $ 207.6 |
Work in process | 270.2 | 210.8 |
Finished goods | 164.3 | 181.6 |
Supplies | 34.3 | 31.2 |
Total inventories | $ 675.7 | $ 631.2 |
Revenue (Details)
Revenue (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 802.3 |
North America Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 414.6 |
Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 365.1 |
Asia Pacific | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 31.6 |
Intersegment Eliminations [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | (9) |
Aerospace [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 85.6 |
Aerospace [Member] | North America Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Aerospace [Member] | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 70.8 |
Aerospace [Member] | Asia Pacific | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 14.8 |
Aerospace [Member] | Intersegment Eliminations [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Automotive [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 119.1 |
Automotive [Member] | North America Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 26.8 |
Automotive [Member] | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 101.3 |
Automotive [Member] | Asia Pacific | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Automotive [Member] | Intersegment Eliminations [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | (9) |
Heat Exchanger [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 66 |
Heat Exchanger [Member] | North America Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Heat Exchanger [Member] | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 66 |
Heat Exchanger [Member] | Asia Pacific | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Heat Exchanger [Member] | Intersegment Eliminations [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Building and Construction [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 189.2 |
Building and Construction [Member] | North America Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 189.2 |
Building and Construction [Member] | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Building and Construction [Member] | Asia Pacific | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Building and Construction [Member] | Intersegment Eliminations [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Truck Trailer [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 43.8 |
Truck Trailer [Member] | North America Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 43.8 |
Truck Trailer [Member] | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Truck Trailer [Member] | Asia Pacific | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Truck Trailer [Member] | Intersegment Eliminations [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Distribution [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 122.9 |
Distribution [Member] | North America Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 107 |
Distribution [Member] | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Distribution [Member] | Asia Pacific | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 15.9 |
Distribution [Member] | Intersegment Eliminations [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Regional Plate and Sheet [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 109.1 |
Regional Plate and Sheet [Member] | North America Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Regional Plate and Sheet [Member] | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 109.1 |
Regional Plate and Sheet [Member] | Asia Pacific | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Regional Plate and Sheet [Member] | Intersegment Eliminations [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0 |
Other [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 66.6 |
Other [Member] | North America Segment [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 47.8 |
Other [Member] | Europe | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 17.9 |
Other [Member] | Asia Pacific | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | 0.9 |
Other [Member] | Intersegment Eliminations [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Debt Instrument [Line Items] | |||
Total debt | $ 1,829.4 | $ 1,780.5 | |
Less: Current portion of long-term debt | 10.3 | 9.1 | |
Total long-term debt | 1,819.1 | 1,771.4 | |
Restricted cash (included in “Prepaid expenses and other current assets”) | 5.7 | $ 3.5 | |
Zhenjiang term loans | |||
Debt Instrument [Line Items] | |||
Restricted cash (included in “Prepaid expenses and other current assets”) | 5.7 | 5.6 | |
Line of Credit | ABL Facility | |||
Debt Instrument [Line Items] | |||
Total debt | 365.9 | 319.3 | |
Senior Notes | 7 7/8% Senior Notes | |||
Debt Instrument [Line Items] | |||
Total debt | 437 | 436.7 | |
Debt discount (premium) and deferred issuance costs | $ 3.1 | 3.3 | |
Stated interest rate | 7.875% | ||
Senior Notes | 9 1/2% Senior Notes | |||
Debt Instrument [Line Items] | |||
Total debt | $ 800.7 | 800.8 | |
Debt discount (premium) and deferred issuance costs | $ 0.7 | 0.8 | |
Stated interest rate | 9.50% | ||
Senior Subordinated Notes | Senior Subordinated Exchangeable Notes | |||
Debt Instrument [Line Items] | |||
Total debt | $ 44.5 | 44.5 | |
Debt discount | 0.3 | 0.3 | |
Notes Payable to Banks | Zhenjiang term loans | |||
Debt Instrument [Line Items] | |||
Total debt | 172.1 | 169.8 | |
Debt discount | 0.5 | 0.5 | |
Other Long-term Debt | |||
Debt Instrument [Line Items] | |||
Total debt | $ 9.2 | $ 9.4 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)Foreign_CountriesStatesSite | Dec. 31, 2017USD ($) | |
Loss Contingencies [Line Items] | ||
Number of Superfund sites with operations and maintenance | Site | 2 | |
Number of states in which company performs environmental remediation | States | 4 | |
Number of foreign countries with environmental remediations | Foreign_Countries | 1 | |
Number of sites with environmental remediations | Site | 7 | |
Portion of environmental liabilities indemnified by Corus Group Ltd. | $ 10.1 | $ 10.2 |
Asset retirement obligation | $ 6.2 | 6.1 |
Estimated time frame of disbursements | 10 years | |
Other Long-Term Liabilities and Accrued Liabilities | ||
Loss Contingencies [Line Items] | ||
Reserves for environmental remediation liabilities | $ 21.9 | $ 22.1 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Stockholders' Equity) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Increase (Decrease) in Stockholders' Equity Disclosure [Roll Forward] | |
Total Equity at beginning of period | $ 92.7 |
Total Equity at end of period | 120.9 |
Aleris Corporation | |
Increase (Decrease) in Stockholders' Equity Disclosure [Roll Forward] | |
Total Equity at beginning of period | 92.7 |
Net income attributable to Aleris Corporation | 4.6 |
Other comprehensive income | 20.5 |
Stock-based compensation activity | 0.3 |
Adoption of ASC 606 | 2.8 |
Total Equity at end of period | $ 120.9 |
Stockholders' Equity (Changes i
Stockholders' Equity (Changes in the Number of Outstanding Common Stock) (Details) | 3 Months Ended |
Mar. 31, 2018shares | |
Outstanding Shares of Common Stock [Roll Forward] | |
Balance at January 1, 2018 (in shares) | 32,001,318 |
Balance at March 31, 2018 (in shares) | 32,219,528 |
Restricted Stock | |
Outstanding Shares of Common Stock [Roll Forward] | |
Issuance associated with vested restricted stock units (in shares) | 218,210 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Loss (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($) | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at January 1, 2018 | $ (140.5) | |
Current period currency translation adjustments | 19.6 | |
Amortization of net actuarial losses and prior service costs, net of tax | 0.9 | |
Balance at March 31, 2018 | (120) | |
Currency translation | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at January 1, 2018 | (64.2) | |
Current period currency translation adjustments | 20.2 | |
Amortization of net actuarial losses and prior service costs, net of tax | 0 | |
Balance at March 31, 2018 | (44) | |
Pension and other postretirement | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance at January 1, 2018 | (76.3) | |
Current period currency translation adjustments | (0.6) | |
Amortization of net actuarial losses and prior service costs, net of tax | (0.9) | |
Balance at March 31, 2018 | (76) | |
Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income [Roll Forward] | ||
Amortization of net actuarial losses and prior service costs | 1.1 | [1] |
Deferred tax benefit on pension and other postretirement liability adjustments | (0.2) | |
Losses reclassified into earnings, net of tax | $ (0.9) | |
[1] | This component of accumulated other comprehensive loss is included in the computation of net periodic benefit expense and net postretirement benefit expense (see Note 11, “Employee Benefit Plans,” for additional detail). |
Segment Information (Schedule o
Segment Information (Schedule of Revenues and Segment Income) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)Operating_Segment | Mar. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of operating segments | Operating_Segment | 3 | |
Revenue for Reportable Segments | ||
Revenues | $ 802.3 | $ 674.2 |
Segment income | 72.1 | 63.6 |
External Customers | ||
Revenue for Reportable Segments | ||
Revenues | 802.3 | 674.2 |
Intra-entity | ||
Revenue for Reportable Segments | ||
Revenues | 0 | 0 |
Operating segments | North America | ||
Revenue for Reportable Segments | ||
Revenues | 414.6 | 351.6 |
Segment income | 41.5 | 24.2 |
Operating segments | Europe | ||
Revenue for Reportable Segments | ||
Revenues | 365.1 | 309 |
Segment income | 28.3 | 38 |
Operating segments | Asia Pacific | ||
Revenue for Reportable Segments | ||
Revenues | 31.6 | 24.2 |
Segment income | 2.3 | 1.4 |
Operating segments | External Customers | North America | ||
Revenue for Reportable Segments | ||
Revenues | 414.6 | 348.5 |
Operating segments | External Customers | Europe | ||
Revenue for Reportable Segments | ||
Revenues | 356.1 | 302.6 |
Operating segments | External Customers | Asia Pacific | ||
Revenue for Reportable Segments | ||
Revenues | 31.6 | 23.1 |
Operating segments | Intra-entity | North America | ||
Revenue for Reportable Segments | ||
Revenues | 0 | 3.1 |
Operating segments | Intra-entity | Europe | ||
Revenue for Reportable Segments | ||
Revenues | 9 | 6.4 |
Operating segments | Intra-entity | Asia Pacific | ||
Revenue for Reportable Segments | ||
Revenues | 0 | 1.1 |
Intra-entity Eliminations | Intra-entity | ||
Revenue for Reportable Segments | ||
Revenues | $ (9) | $ (10.6) |
Segment Information (Reconcilia
Segment Information (Reconciliation of Segment Income to Consolidated Statements of Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | $ (34.7) | $ (25.7) |
Restructuring charges | (0.9) | (0.4) |
Interest expense, net | (33.8) | (27.1) |
Unallocated gains (losses) on derivative financial instruments | 33.9 | (28.2) |
Income (loss) before income taxes | 10 | (24.5) |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net income attributable to Aleris Corporation | 72.1 | 63.6 |
Unallocated Amounts | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | (34.7) | (25.7) |
Other corporate general and administrative expenses | (11.2) | (12.4) |
Restructuring charges | (0.9) | (0.4) |
Interest expense, net | (33.8) | (27.1) |
Unallocated gains (losses) on derivative financial instruments | 33.7 | (7.7) |
Unallocated currency exchange gains (losses) | 1.2 | (0.1) |
Start-up costs | (16) | (14.5) |
Other expense, net | $ (0.4) | $ (0.2) |
Segment Information (Reconcil41
Segment Information (Reconciliation of Reportable Segment Assets) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 2,828.8 | $ 2,644.4 |
Operating segments | North America | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 1,427.3 | 1,309.9 |
Operating segments | Europe | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 791.1 | 738.4 |
Operating segments | Asia Pacific | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | 382.9 | 371.4 |
Unallocated Amounts | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Assets | $ 227.5 | $ 224.7 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Millions | Jun. 01, 2010 | Mar. 31, 2018 | Mar. 31, 2017 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Life of award | 10 years | ||
Award vesting period | 4 years | ||
Stock options granted (in shares) | 0 | ||
Stock-based compensation expense | $ 0.3 | $ 0.6 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | Mar. 31, 2018USD ($) |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits | $ 4.3 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 3.2 |
Accrued interest related to uncertain tax positions | $ 0.9 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Amortization of net actuarial losses (gains) | $ (0.9) | |
Other Postretirement Benefit Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.1 | $ 0 |
Interest cost | 0.2 | 0.3 |
Amortization of net actuarial losses (gains) | (0.2) | (0.1) |
Amortization of prior service cost | 0.1 | 0 |
Net periodic benefit expense | 0.2 | 0.2 |
U.S. | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1.1 | 1 |
Interest cost | 1.4 | 1.4 |
Amortization of net actuarial losses (gains) | 0.5 | 0.5 |
Amortization of prior service cost | 0.1 | 0.1 |
Expected return on plan assets | (2.6) | (2.6) |
Net periodic benefit expense | 0.5 | 0.4 |
Non U.S. Pension Benefits | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.7 | 0.9 |
Interest cost | 0.5 | 0.4 |
Amortization of net actuarial losses (gains) | 0.7 | 0.7 |
Net periodic benefit expense | $ 1.9 | $ 2 |
Derivative And Other Financia45
Derivative And Other Financial Instruments (Narratives) (Details) gal in Millions, T in Millions, BTU in Trillions | 3 Months Ended | ||||
Mar. 31, 2018EUR (€)BTUgalT | Mar. 31, 2017 | Mar. 31, 2018USD ($)BTUgalT | Dec. 31, 2017EUR (€)galT | Dec. 31, 2017USD ($)galT | |
Derivative [Line Items] | |||||
Cash collateral posted | $ | $ 0 | $ 0 | |||
Metal | |||||
Derivative [Line Items] | |||||
Maximum settlement period of derivatives (in months) | 3 months | ||||
Tons of metal in forward contracts with the right to buy (in tons) | 0.2 | 0.2 | 0.1 | 0.1 | |
Tons of metal in forward contracts with the right to sell (in tons) | 0.2 | 0.2 | 0.2 | 0.2 | |
Energy Related Derivative | |||||
Derivative [Line Items] | |||||
British thermal units in forward buy contracts (in British thermal units) | BTU | 3.5 | 3.5 | |||
Gallons in diesel swap contracts (in gallons) | gal | 3.5 | 3.5 | 1.5 | 1.5 | |
Currency | |||||
Derivative [Line Items] | |||||
Euros in forward contracts | € | € 82,600,000 | € 100,800,000 | |||
Convertible Notes Payable | |||||
Derivative [Line Items] | |||||
Risk-free interest rate (percent) | 2.30% | 1.60% | |||
Expected equity volatility rate (percent) | 60.00% | ||||
Zhenjiang term loans | |||||
Derivative [Line Items] | |||||
Maximum period for variable interest rate paid (in months) | 6 months | ||||
Senior Notes | 7 7/8% Senior Notes | |||||
Derivative [Line Items] | |||||
Stated interest rate | 7.875% | 7.875% | |||
Senior Notes | 9 1/2% Senior Notes | |||||
Derivative [Line Items] | |||||
Stated interest rate | 9.50% | 9.50% |
Derivative And Other Financia46
Derivative And Other Financial Instruments (Schedule of Derivative Instruments) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Asset | ||
Fair value | $ 51.7 | $ 35.3 |
Effect of counterparty netting | (18.1) | (27.2) |
Net derivatives as classified in the balance sheet | 33.6 | 8.1 |
Liability | ||
Fair value | (18.5) | (36.2) |
Effect of counterparty netting | 18.1 | 27.2 |
Net derivatives as classified in the balance sheet | (0.4) | (9) |
Metal | ||
Asset | ||
Fair value | 48.1 | 33.5 |
Liability | ||
Fair value | (18.5) | (36) |
Energy Related Derivative | ||
Asset | ||
Fair value | 0.2 | 0.2 |
Liability | ||
Fair value | 0 | (0.1) |
Currency | ||
Asset | ||
Fair value | 3.4 | 1.6 |
Liability | ||
Fair value | $ 0 | $ (0.1) |
Derivative And Other Financia47
Derivative And Other Financial Instruments (Schedule of Derivative Instruments in Balance Sheet by Contract Type) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2012 |
Derivatives, Fair Value [Line Items] | |||
Prepaid expenses and other current assets | $ 80.6 | $ 36.1 | |
Other long-term assets | 55.1 | 52.7 | |
Total Asset Derivatives | 33.6 | 8.1 | |
Accrued liabilities | 199.9 | 197.4 | |
Other long-term liabilities | 49.6 | 49.1 | |
Total Liability Derivatives | 0.4 | 9 | |
Metal | |||
Derivatives, Fair Value [Line Items] | |||
Prepaid expenses and other current assets | 28.5 | 2.2 | |
Other long-term assets | 1.5 | 4.3 | |
Accrued liabilities | 0 | 9 | |
Other long-term liabilities | 0.4 | 0 | |
Energy Related Derivative | |||
Derivatives, Fair Value [Line Items] | |||
Prepaid expenses and other current assets | 0.2 | 0.1 | |
Currency | |||
Derivatives, Fair Value [Line Items] | |||
Prepaid expenses and other current assets | 1.6 | $ 0.8 | |
Other long-term assets | $ 1.8 | $ 0.7 |
Derivative And Other Financia48
Derivative And Other Financial Instruments (Schedule of Realized (Gains) Losses on Derivatives) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Metal | ||
Derivative Instruments, Loss [Line Items] | ||
Realized losses on derivative financial instruments | $ 1 | $ 19.5 |
Energy Related Derivative | ||
Derivative Instruments, Loss [Line Items] | ||
Realized losses on derivative financial instruments | (0.2) | 0.4 |
Currency | ||
Derivative Instruments, Loss [Line Items] | ||
Realized losses on derivative financial instruments | $ (1) | $ 0.5 |
Derivative And Other Financia49
Derivative And Other Financial Instruments (Schedule of Fair Value for Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 |
Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 79.1 | $ 102.4 |
Restricted cash | 5.7 | 5.6 |
Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lines of credit | 365.9 | 319.3 |
Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Exchangeable Notes | 45.4 | 45.4 |
7 7/8% Senior Notes | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 432.6 | 438.1 |
9 1/2% Senior Notes | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 834 | 847.3 |
Zhenjiang term loans | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Zhenjiang Term Loans | 172.6 | 170.3 |
Carrying Amount | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 79.1 | 102.4 |
Restricted cash | 5.7 | 5.6 |
Carrying Amount | Significant other observable inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lines of credit | 365.9 | 319.3 |
Carrying Amount | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Exchangeable Notes | 44.5 | 44.5 |
Carrying Amount | 7 7/8% Senior Notes | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 437 | 436.7 |
Carrying Amount | 9 1/2% Senior Notes | Quoted prices in active markets for identical assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Senior notes | 800.7 | 800.8 |
Carrying Amount | Zhenjiang term loans | Significant unobservable inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Zhenjiang Term Loans | $ 172.1 | $ 169.8 |
Condensed Consolidating Finan50
Condensed Consolidating Financial Statements (Condensed Balance Sheet) (Details) - USD ($) $ in Millions | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Current Assets | |||
Cash and cash equivalents | $ 79.1 | $ 102.4 | $ 74.6 |
Accounts receivable, net | 364.2 | 245.7 | |
Inventories | 675.7 | 631.2 | |
Prepaid expenses and other current assets | 80.6 | 36.1 | |
Intercompany receivables | 0 | 0 | |
Total Current Assets | 1,199.6 | 1,015.4 | |
Property, plant and equipment, net | 1,470.5 | 1,470.9 | |
Intangible assets, net | 34.1 | 34.7 | |
Deferred income taxes | 69.5 | 70.7 | |
Other long-term assets | 55.1 | 52.7 | |
Investments in subsidiaries | 0 | 0 | |
Total Assets | 2,828.8 | 2,644.4 | |
Current Liabilities | |||
Accounts payable | 341.6 | 299.2 | |
Accrued liabilities | 199.9 | 197.4 | |
Current portion of long-term debt | 10.3 | 9.1 | |
Intercompany payables | 0 | 0 | |
Total Current Liabilities | 551.8 | 505.7 | |
Long-term debt | 1,819.1 | 1,771.4 | |
Deferred Revenue | 74 | 17 | |
Deferred income taxes | 6.1 | 4 | |
Accrued pension benefits | 173.5 | 170.2 | |
Accrued postretirement benefits | 33.8 | 34.3 | |
Other long-term liabilities | 49.6 | 49.1 | |
Total Long-Term Liabilities | 2,156.1 | 2,046 | |
Total equity | 120.9 | 92.7 | |
Total Liabilities and Equity | 2,828.8 | 2,644.4 | |
Eliminations | |||
Current Assets | |||
Cash and cash equivalents | (2) | (2.1) | (2.3) |
Accounts receivable, net | 0 | 0 | |
Inventories | 0 | 0 | |
Prepaid expenses and other current assets | 0 | 0 | |
Intercompany receivables | (310.2) | (213) | |
Total Current Assets | (312.2) | (215.1) | |
Property, plant and equipment, net | 0 | 0 | |
Intangible assets, net | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Other long-term assets | 0 | 0 | |
Investments in subsidiaries | (1,649.2) | (1,615.2) | |
Total Assets | (1,961.4) | (1,830.3) | |
Current Liabilities | |||
Accounts payable | (2) | (2.1) | |
Accrued liabilities | 0 | 0 | |
Current portion of long-term debt | 0 | 0 | |
Intercompany payables | (310.2) | (213) | |
Total Current Liabilities | (312.2) | (215.1) | |
Long-term debt | 0 | 0 | |
Deferred Revenue | 0 | ||
Deferred income taxes | 0 | ||
Accrued pension benefits | 0 | ||
Accrued postretirement benefits | 0 | ||
Other long-term liabilities | 0 | ||
Total Long-Term Liabilities | 0 | 0 | |
Total equity | (1,649.2) | (1,615.2) | |
Total Liabilities and Equity | (1,961.4) | (1,830.3) | |
Aleris Corporation (Parent) | |||
Current Assets | |||
Cash and cash equivalents | 0 | ||
Aleris Corporation (Parent) | Reportable Legal Entities | |||
Current Assets | |||
Cash and cash equivalents | 0 | 0 | |
Accounts receivable, net | 0 | 0 | |
Inventories | 0 | 0 | |
Prepaid expenses and other current assets | 0 | 0 | |
Intercompany receivables | 0 | 0 | |
Total Current Assets | 0 | 0 | |
Property, plant and equipment, net | 0 | 0 | |
Intangible assets, net | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Other long-term assets | 0 | 0 | |
Investments in subsidiaries | 124.7 | 96.3 | |
Total Assets | 124.7 | 96.3 | |
Current Liabilities | |||
Accounts payable | 0 | 0 | |
Accrued liabilities | 0 | 0 | |
Current portion of long-term debt | 0 | 0 | |
Intercompany payables | 3.8 | 3.6 | |
Total Current Liabilities | 3.8 | 3.6 | |
Long-term debt | 0 | 0 | |
Deferred Revenue | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Accrued pension benefits | 0 | 0 | |
Accrued postretirement benefits | 0 | 0 | |
Other long-term liabilities | 0 | 0 | |
Total Long-Term Liabilities | 0 | 0 | |
Total equity | 120.9 | 92.7 | |
Total Liabilities and Equity | 124.7 | 96.3 | |
Aleris International, Inc. | |||
Current Assets | |||
Cash and cash equivalents | 42.7 | ||
Aleris International, Inc. | Reportable Legal Entities | |||
Current Assets | |||
Cash and cash equivalents | 34.7 | 40.3 | |
Accounts receivable, net | 0.1 | 0.2 | |
Inventories | 0 | 0 | |
Prepaid expenses and other current assets | 5.6 | 3.4 | |
Intercompany receivables | 223.5 | 134.6 | |
Total Current Assets | 263.9 | 178.5 | |
Property, plant and equipment, net | 0 | 0 | |
Intangible assets, net | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Other long-term assets | 3.2 | 3.4 | |
Investments in subsidiaries | 1,521.4 | 1,514.4 | |
Total Assets | 1,788.5 | 1,696.3 | |
Current Liabilities | |||
Accounts payable | 4 | 4.3 | |
Accrued liabilities | 66 | 43.9 | |
Current portion of long-term debt | 0 | 0 | |
Intercompany payables | 71.3 | 54.8 | |
Total Current Liabilities | 141.3 | 103 | |
Long-term debt | 1,522.2 | 1,497 | |
Deferred Revenue | 0 | 0 | |
Deferred income taxes | 0 | 0 | |
Accrued pension benefits | 0 | 0 | |
Accrued postretirement benefits | 0 | 0 | |
Other long-term liabilities | 0.3 | 0 | |
Total Long-Term Liabilities | 1,522.5 | 1,497 | |
Total equity | 124.7 | 96.3 | |
Total Liabilities and Equity | 1,788.5 | 1,696.3 | |
Guarantor Subsidiaries | |||
Current Assets | |||
Cash and cash equivalents | 0 | ||
Guarantor Subsidiaries | Reportable Legal Entities | |||
Current Assets | |||
Cash and cash equivalents | 0 | 0 | |
Accounts receivable, net | 147.2 | 83 | |
Inventories | 335.1 | 286.6 | |
Prepaid expenses and other current assets | 27.7 | 10 | |
Intercompany receivables | 85.8 | 46 | |
Total Current Assets | 595.8 | 425.6 | |
Property, plant and equipment, net | 891.2 | 903.7 | |
Intangible assets, net | 18.2 | 18.8 | |
Deferred income taxes | 0 | 0 | |
Other long-term assets | 8.4 | 8 | |
Investments in subsidiaries | 3.1 | 4.5 | |
Total Assets | 1,516.7 | 1,360.6 | |
Current Liabilities | |||
Accounts payable | 169.8 | 140.7 | |
Accrued liabilities | 65.1 | 75.8 | |
Current portion of long-term debt | 0.9 | 1 | |
Intercompany payables | 204.5 | 137.8 | |
Total Current Liabilities | 440.3 | 355.3 | |
Long-term debt | 0.8 | 1 | |
Deferred Revenue | 74 | 17 | |
Deferred income taxes | 0.5 | 0.2 | |
Accrued pension benefits | 45 | 45.2 | |
Accrued postretirement benefits | 33.8 | 34.3 | |
Other long-term liabilities | 17.2 | 17.2 | |
Total Long-Term Liabilities | 171.3 | 114.9 | |
Total equity | 905.1 | 890.4 | |
Total Liabilities and Equity | 1,516.7 | 1,360.6 | |
Non-Guarantor Subsidiaries | |||
Current Assets | |||
Cash and cash equivalents | $ 34.2 | ||
Non-Guarantor Subsidiaries | Reportable Legal Entities | |||
Current Assets | |||
Cash and cash equivalents | 46.4 | 64.2 | |
Accounts receivable, net | 216.9 | 162.5 | |
Inventories | 340.6 | 344.6 | |
Prepaid expenses and other current assets | 47.3 | 22.7 | |
Intercompany receivables | 0.9 | 32.4 | |
Total Current Assets | 652.1 | 626.4 | |
Property, plant and equipment, net | 579.3 | 567.2 | |
Intangible assets, net | 15.9 | 15.9 | |
Deferred income taxes | 69.5 | 70.7 | |
Other long-term assets | 43.5 | 41.3 | |
Investments in subsidiaries | 0 | 0 | |
Total Assets | 1,360.3 | 1,321.5 | |
Current Liabilities | |||
Accounts payable | 169.8 | 156.3 | |
Accrued liabilities | 68.8 | 77.7 | |
Current portion of long-term debt | 9.4 | 8.1 | |
Intercompany payables | 30.6 | 16.8 | |
Total Current Liabilities | 278.6 | 258.9 | |
Long-term debt | 296.1 | 273.4 | |
Deferred Revenue | 0 | 0 | |
Deferred income taxes | 5.6 | 3.8 | |
Accrued pension benefits | 128.5 | 125 | |
Accrued postretirement benefits | 0 | 0 | |
Other long-term liabilities | 32.1 | 31.9 | |
Total Long-Term Liabilities | 462.3 | 434.1 | |
Total equity | 619.4 | 628.5 | |
Total Liabilities and Equity | $ 1,360.3 | $ 1,321.5 | |
7 7/8% Senior Notes | Senior Notes | |||
Condensed Financial Statements, Captions [Line Items] | |||
Stated interest rate | 7.875% | ||
9 1/2% Senior Notes | Senior Notes | |||
Condensed Financial Statements, Captions [Line Items] | |||
Stated interest rate | 9.50% |
Condensed Consolidating Finan51
Condensed Consolidating Financial Statements (Condensed Income Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||
Revenues | $ 802.3 | $ 674.2 |
Cost of sales | 739.8 | 588.6 |
Gross profit | 62.5 | 85.6 |
Selling, general and administrative expenses | 50.6 | 52.9 |
Restructuring charges | (0.9) | (0.4) |
(Gains) losses on derivative financial instruments | (33.9) | 28.2 |
Other operating expense, net | 0.7 | 1 |
Operating income | 44.2 | 3.1 |
Interest expense, net | 33.8 | 27.1 |
Other (income) expense, net | 0.4 | 0.5 |
Equity in net earnings of affiliates | 0 | 0 |
Income (loss) before income taxes | 10 | (24.5) |
Provision for income taxes | 5.4 | 10.7 |
Net income (loss) | 4.6 | (35.2) |
Comprehensive (loss) income | 25.1 | (25.6) |
Eliminations | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenues | (9) | (7.3) |
Cost of sales | (9) | (7.3) |
Gross profit | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 |
Restructuring charges | 0 | |
(Gains) losses on derivative financial instruments | 0 | 0 |
Other operating expense, net | 0 | 0 |
Operating income | 0 | 0 |
Interest expense, net | 0 | 0 |
Other (income) expense, net | 0 | 0 |
Equity in net earnings of affiliates | 15.2 | (70.3) |
Income (loss) before income taxes | (15.2) | 70.3 |
Provision for income taxes | 0 | 0 |
Net income (loss) | (15.2) | 70.3 |
Comprehensive (loss) income | (56.3) | 51 |
Aleris Corporation (Parent) | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenues | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 |
Restructuring charges | 0 | 0 |
(Gains) losses on derivative financial instruments | 0 | 0 |
Other operating expense, net | 0 | 0 |
Operating income | 0 | 0 |
Interest expense, net | 0 | 0 |
Other (income) expense, net | 0 | 0 |
Equity in net earnings of affiliates | (4.6) | 35.2 |
Income (loss) before income taxes | 4.6 | (35.2) |
Provision for income taxes | 0 | 0 |
Net income (loss) | 4.6 | (35.2) |
Comprehensive (loss) income | 25.1 | (25.6) |
Aleris International, Inc. | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenues | 0 | 0 |
Cost of sales | 0 | 0 |
Gross profit | 0 | 0 |
Selling, general and administrative expenses | 9 | 0.1 |
Restructuring charges | 0 | 0 |
(Gains) losses on derivative financial instruments | 0 | 0 |
Other operating expense, net | 0 | 0 |
Operating income | (9) | (0.1) |
Interest expense, net | 0 | 0 |
Other (income) expense, net | (3.7) | (0.3) |
Equity in net earnings of affiliates | (9.9) | 35.3 |
Income (loss) before income taxes | 4.6 | (35.1) |
Provision for income taxes | 0 | 0.1 |
Net income (loss) | 4.6 | (35.2) |
Comprehensive (loss) income | 25.1 | (25.6) |
Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenues | 414.6 | 349.4 |
Cost of sales | 390.4 | 324.9 |
Gross profit | 24.2 | 24.5 |
Selling, general and administrative expenses | 17.4 | 32.4 |
Restructuring charges | (0.7) | (0.3) |
(Gains) losses on derivative financial instruments | (22.8) | 20 |
Other operating expense, net | 0.7 | 1 |
Operating income | 28.2 | (29.2) |
Interest expense, net | 26.3 | 20.7 |
Other (income) expense, net | 2.7 | (1.5) |
Equity in net earnings of affiliates | (0.7) | (0.2) |
Income (loss) before income taxes | (0.1) | (48.2) |
Provision for income taxes | 0.2 | (0.1) |
Net income (loss) | (0.3) | (48.1) |
Comprehensive (loss) income | 1.1 | (47.6) |
Non-Guarantor Subsidiaries | Reportable Legal Entities | ||
Condensed Financial Statements, Captions [Line Items] | ||
Revenues | 396.7 | 332.1 |
Cost of sales | 358.4 | 271 |
Gross profit | 38.3 | 61.1 |
Selling, general and administrative expenses | 24.2 | 20.4 |
Restructuring charges | (0.2) | (0.1) |
(Gains) losses on derivative financial instruments | (11.1) | 8.2 |
Other operating expense, net | 0 | 0 |
Operating income | 25 | 32.4 |
Interest expense, net | 7.5 | 6.4 |
Other (income) expense, net | 1.4 | 2.3 |
Equity in net earnings of affiliates | 0 | 0 |
Income (loss) before income taxes | 16.1 | 23.7 |
Provision for income taxes | 5.2 | 10.7 |
Net income (loss) | 10.9 | 13 |
Comprehensive (loss) income | $ 30.1 | $ 22.2 |
Condensed Consolidating Finan52
Condensed Consolidating Financial Statements (Condensed Cash Flow Statement) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | $ (34.9) | $ (38.6) | |
Investing activities | |||
Payments for property, plant and equipment | (30.1) | (62.6) | |
Disbursements of intercompany loans | 0 | ||
Repayments from intercompany loans | 0 | ||
Equity contributions in subsidiaries | 0 | 0 | |
Return of investment in subsidiaries | 0 | 0 | |
Other | (0.2) | (0.4) | |
Net cash used by investing activities | (30.3) | (63) | |
Financing activities | |||
Proceeds from revolving credit facilities | 133.9 | 159.5 | |
Payments on revolving credit facilities | (90) | (294.5) | |
Proceeds from senior secured notes, inclusive of premiums | 0 | 263.8 | |
Payments on other long-term debt | (3.8) | (2.3) | |
Proceeds from intercompany loans | 0 | ||
Repayments on intercompany loans | 0 | ||
Debt issuance costs | 0 | (1.8) | |
Proceeds from intercompany equity contributions | 0 | 0 | |
Dividends paid | 0 | 0 | |
Other | 0 | (1.2) | |
Net cash provided by financing activities | 40.1 | 123.5 | |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | 1.9 | 0.6 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (23.2) | 22.5 | |
Cash, cash equivalents and restricted cash at beginning of period | 108 | 55.6 | |
Cash, cash equivalents and restricted cash at end of period | 84.8 | 78.1 | |
Cash and cash equivalents | 79.1 | 74.6 | $ 102.4 |
Restricted cash (included in “Prepaid expenses and other current assets”) | 5.7 | 3.5 | |
Aleris Corporation (Parent) | |||
Financing activities | |||
Cash and cash equivalents | 0 | ||
Aleris International, Inc. | |||
Financing activities | |||
Cash and cash equivalents | 42.7 | ||
Guarantor Subsidiaries | |||
Financing activities | |||
Cash and cash equivalents | 0 | ||
Non-Guarantor Subsidiaries | |||
Financing activities | |||
Cash and cash equivalents | 34.2 | ||
Reportable Legal Entities | Aleris Corporation (Parent) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | 0.1 | 1.1 | |
Investing activities | |||
Payments for property, plant and equipment | 0 | 0 | |
Disbursements of intercompany loans | 0 | ||
Repayments from intercompany loans | 0 | ||
Equity contributions in subsidiaries | 0 | 0 | |
Return of investment in subsidiaries | 0 | 0 | |
Other | 0 | 0 | |
Net cash used by investing activities | 0 | 0 | |
Financing activities | |||
Proceeds from revolving credit facilities | 0 | 0 | |
Payments on revolving credit facilities | 0 | 0 | |
Proceeds from senior secured notes, inclusive of premiums | 0 | ||
Payments on other long-term debt | 0 | 0 | |
Proceeds from intercompany loans | 0 | ||
Repayments on intercompany loans | 0 | ||
Debt issuance costs | |||
Proceeds from intercompany equity contributions | 0 | 0 | |
Dividends paid | 0 | 0 | |
Other | (0.1) | (1.1) | |
Net cash provided by financing activities | (0.1) | (1.1) | |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 0 | 0 | |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash (included in “Prepaid expenses and other current assets”) | 0 | 0 | |
Reportable Legal Entities | Aleris International, Inc. | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | (2.9) | 303.5 | |
Investing activities | |||
Payments for property, plant and equipment | 0 | 0 | |
Disbursements of intercompany loans | 0 | ||
Repayments from intercompany loans | 0 | ||
Equity contributions in subsidiaries | (13.2) | (406.6) | |
Return of investment in subsidiaries | 0 | 8.3 | |
Other | 0 | 0 | |
Net cash used by investing activities | (13.2) | (398.3) | |
Financing activities | |||
Proceeds from revolving credit facilities | 80 | 55 | |
Payments on revolving credit facilities | (55) | (185) | |
Proceeds from senior secured notes, inclusive of premiums | 263.8 | ||
Payments on other long-term debt | 0 | 0 | |
Proceeds from intercompany loans | 25 | ||
Repayments on intercompany loans | (39.5) | ||
Debt issuance costs | (1.8) | ||
Proceeds from intercompany equity contributions | 0 | 0 | |
Dividends paid | 0 | 0 | |
Other | 0 | 0 | |
Net cash provided by financing activities | 10.5 | 132 | |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (5.6) | 37.2 | |
Cash, cash equivalents and restricted cash at beginning of period | 40.3 | 5.5 | |
Cash, cash equivalents and restricted cash at end of period | 34.7 | 42.7 | |
Cash and cash equivalents | 34.7 | 40.3 | |
Restricted cash (included in “Prepaid expenses and other current assets”) | 0 | 0 | |
Reportable Legal Entities | Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | 6.9 | (355.6) | |
Investing activities | |||
Payments for property, plant and equipment | (17.8) | (52.7) | |
Disbursements of intercompany loans | 0 | ||
Repayments from intercompany loans | 0 | ||
Equity contributions in subsidiaries | 0 | 0 | |
Return of investment in subsidiaries | 0.1 | 5.8 | |
Other | (0.3) | (0.4) | |
Net cash used by investing activities | (18) | (47.3) | |
Financing activities | |||
Proceeds from revolving credit facilities | 0 | 0 | |
Payments on revolving credit facilities | 0 | 0 | |
Proceeds from senior secured notes, inclusive of premiums | 0 | ||
Payments on other long-term debt | (0.3) | (0.1) | |
Proceeds from intercompany loans | 0 | ||
Repayments on intercompany loans | 0 | ||
Debt issuance costs | 0 | ||
Proceeds from intercompany equity contributions | 13.2 | 402.6 | |
Dividends paid | (2) | 0 | |
Other | 0.2 | 0.4 | |
Net cash provided by financing activities | 11.1 | 402.9 | |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 0 | 0 | |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | |
Cash and cash equivalents | 0 | 0 | |
Restricted cash (included in “Prepaid expenses and other current assets”) | 0 | 0 | |
Reportable Legal Entities | Non-Guarantor Subsidiaries | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | 2.5 | 11.8 | |
Investing activities | |||
Payments for property, plant and equipment | (12.3) | (9.9) | |
Disbursements of intercompany loans | (25) | ||
Repayments from intercompany loans | 39.5 | ||
Equity contributions in subsidiaries | 0 | 0 | |
Return of investment in subsidiaries | 0 | 0 | |
Other | 0.1 | 0 | |
Net cash used by investing activities | 2.3 | (9.9) | |
Financing activities | |||
Proceeds from revolving credit facilities | 53.9 | 104.5 | |
Payments on revolving credit facilities | (35) | (109.5) | |
Proceeds from senior secured notes, inclusive of premiums | 0 | ||
Payments on other long-term debt | (3.5) | (2.2) | |
Proceeds from intercompany loans | 0 | ||
Repayments on intercompany loans | 0 | ||
Debt issuance costs | 0 | ||
Proceeds from intercompany equity contributions | 0 | 4 | |
Dividends paid | (39.6) | (14.4) | |
Other | (0.1) | (0.5) | |
Net cash provided by financing activities | (24.3) | (18.1) | |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | 1.9 | 0.6 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (17.6) | (15.6) | |
Cash, cash equivalents and restricted cash at beginning of period | 69.7 | 53.3 | |
Cash, cash equivalents and restricted cash at end of period | 52.1 | 37.7 | |
Cash and cash equivalents | 46.4 | 64.2 | |
Restricted cash (included in “Prepaid expenses and other current assets”) | 5.7 | 3.5 | |
Eliminations | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided (used) by operating activities | (41.5) | 0.6 | |
Investing activities | |||
Payments for property, plant and equipment | 0 | 0 | |
Disbursements of intercompany loans | 25 | ||
Repayments from intercompany loans | (39.5) | ||
Equity contributions in subsidiaries | 13.2 | 406.6 | |
Return of investment in subsidiaries | (0.1) | (14.1) | |
Other | 0 | 0 | |
Net cash used by investing activities | (1.4) | 392.5 | |
Financing activities | |||
Proceeds from revolving credit facilities | 0 | 0 | |
Payments on revolving credit facilities | 0 | 0 | |
Proceeds from senior secured notes, inclusive of premiums | 0 | ||
Payments on other long-term debt | 0 | 0 | |
Proceeds from intercompany loans | (25) | ||
Repayments on intercompany loans | 39.5 | ||
Debt issuance costs | 0 | ||
Proceeds from intercompany equity contributions | (13.2) | (406.6) | |
Dividends paid | 41.6 | 14.4 | |
Other | 0 | 0 | |
Net cash provided by financing activities | 42.9 | (392.2) | |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | 0 | 0 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 0 | 0.9 | |
Cash, cash equivalents and restricted cash at beginning of period | (2) | (3.2) | |
Cash, cash equivalents and restricted cash at end of period | (2) | (2.3) | |
Cash and cash equivalents | (2) | (2.3) | $ (2.1) |
Restricted cash (included in “Prepaid expenses and other current assets”) | $ 0 | $ 0 |