Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 15, 2019 | Jun. 30, 2018 | |
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-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 32,380,867 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | No | ||
Entity Public Float | $ 0 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 108.6 | $ 102.4 |
Accounts receivable, net | 308.8 | 245.7 |
Inventories | 772.9 | 631.2 |
Prepaid expenses and other current assets | 62.7 | 36.1 |
Total Current Assets | 1,253 | 1,015.4 |
Property, plant and equipment, net | 1,395 | 1,470.9 |
Intangible assets, net | 32.5 | 34.7 |
Deferred income taxes | 60.2 | 70.7 |
Other long-term assets | 38.7 | 52.7 |
Total Assets | 2,779.4 | 2,644.4 |
Current Liabilities | ||
Accounts payable | 374.8 | 299.2 |
Accrued liabilities | 198.1 | 197.4 |
Current portion of long-term debt | 21.9 | 9.1 |
Total Current Liabilities | 594.8 | 505.7 |
Long-term debt | 1,906.4 | 1,771.4 |
Deferred revenue | 65 | 17 |
Deferred income taxes | 0.9 | 4 |
Accrued pension benefits | 163.7 | 170.2 |
Accrued postretirement benefits | 29.6 | 34.3 |
Other long-term liabilities | 46.1 | 49.1 |
Total Long-Term Liabilities | 2,211.7 | 2,046 |
Stockholders’ Equity | ||
Common stock; par value $.01; 45,000,000 shares authorized; 32,380,867 and 32,001,318 shares issued at December 31, 2018 and 2017, respectively | 0.3 | 0.3 |
Preferred stock; par value $.01; 1,000,000 shares authorized; none issued | 0 | 0 |
Additional paid-in capital | 431.8 | 436.3 |
Retained deficit | (292.2) | (203.4) |
Accumulated other comprehensive loss | (167) | (140.5) |
Total Equity | (27.1) | 92.7 |
Total Liabilities and Equity | $ 2,779.4 | $ 2,644.4 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 45,000,000 | 45,000,000 |
Common stock, shares issued (in shares) | 32,380,867 | 32,001,318 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 3,445.9 | $ 2,857.3 | $ 2,663.9 |
Cost of sales | 3,160.7 | 2,595.9 | 2,374.2 |
Gross profit | 285.2 | 261.4 | 289.7 |
Selling, general and administrative expenses | 213.7 | 219.2 | 217.5 |
Restructuring charges | 4.8 | 2.9 | 1.5 |
(Gains) losses on derivative financial instruments | (47) | 44.7 | 12.1 |
Other operating expense, net | 3.5 | 5.7 | 3.9 |
Operating income (loss) | 110.2 | (11.1) | 54.7 |
Interest expense, net | 144.7 | 124.1 | 82.5 |
Debt extinguishment costs | 48.9 | 0 | 12.6 |
Other (income) expense, net | (10.3) | 38.8 | (8.1) |
Loss from continuing operations before income taxes | (73.1) | (174) | (32.3) |
Provision for income taxes | 18.5 | 40.4 | 40 |
Loss from continuing operations | (91.6) | (214.4) | (72.3) |
Income (loss) from discontinued operations, net of tax | 0 | 3.8 | (3.3) |
Net loss | $ (91.6) | $ (210.6) | $ (75.6) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net loss | $ (91.6) | $ (210.6) | $ (75.6) |
Other comprehensive (loss) income, before tax: | |||
Currency translation adjustments | (27.3) | 82 | (29.7) |
Pension and other postretirement liability adjustments | 2.2 | 2.7 | (16.1) |
Other comprehensive (loss) income, before tax | (25.1) | 84.7 | (45.8) |
Income tax expense (benefit) related to items of other comprehensive (loss) income | 1.4 | 1.7 | (5) |
Other comprehensive (loss) income, net of tax | (26.5) | 83 | (40.8) |
Comprehensive loss | $ (118.1) | $ (127.6) | $ (116.4) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net loss | $ (91.6) | $ (210.6) | $ (75.6) |
Adjustments to reconcile net loss to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 139.7 | 115.7 | 104.9 |
Provision for deferred income taxes | 2 | 32.3 | 21.5 |
Stock-based compensation expense | 9.2 | 11.3 | 7 |
Unrealized gains on derivative financial instruments | (23.1) | (3) | (19) |
Amortization of debt issuance costs | 5.9 | 2.8 | 5.7 |
Loss on extinguishment of debt | 48.9 | 0 | 12.6 |
Net (gain) loss on sale of discontinued operations | 0 | (4.5) | 3.3 |
Non-cash (gain) loss (see Note 19) | (11.1) | 22.8 | 0 |
Other | 6.5 | 10.1 | 4.9 |
Changes in operating assets and liabilities: | |||
Change in accounts receivable | (45.7) | (5.7) | (9.4) |
Change in inventories | (183.5) | (58.4) | (70.2) |
Change in other assets | 9.9 | 3.9 | (1.4) |
Change in accounts payable | 84.7 | 33.7 | 41.7 |
Change in accrued liabilities and deferred revenue | 70.5 | 18.2 | (14) |
Net cash provided (used) by operating activities | 22.3 | (31.4) | 12 |
Investing activities | |||
Payments for property, plant and equipment | (108.2) | (207.7) | (358.1) |
Proceeds from the sale of businesses, net of cash transferred | 0 | 0 | 5 |
Other | (2) | (3) | (1.5) |
Net cash used by investing activities | (110.2) | (210.7) | (354.6) |
Financing activities | |||
Proceeds from revolving credit facilities | 295.3 | 575.1 | 360.4 |
Payments on revolving credit facilities | (355.1) | (536.3) | (107) |
Proceeds from notes and term loans, inclusive of premiums and discounts | 1,483 | 263.8 | 540.4 |
Payments on notes and term loans, including premiums | (1,292.2) | 0 | (443.8) |
Net payments on other long-term debt | (9.9) | (6.4) | (7.3) |
Debt issuance costs | (21) | (2.8) | (4) |
Other | (2.4) | (2.9) | (0.6) |
Net cash used by financing activities | 97.7 | 290.5 | 338.1 |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | (2.2) | 4 | (2.1) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 7.6 | 52.4 | (6.6) |
Cash, cash equivalents and restricted cash at beginning of period | 108 | 55.6 | 62.2 |
Cash, cash equivalents and restricted cash at end of period | 115.6 | 108 | 55.6 |
Cash and cash equivalents | 108.6 | 102.4 | 55.6 |
Restricted cash (included in “Prepaid expenses and other current assets”) | $ 7 | $ 5.6 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] |
Balance at beginning of period at Dec. 31, 2015 | $ 327.2 | $ 0.3 | $ 421.9 | $ 87.7 | $ (182.7) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (75.6) | (75.6) | |||
Other comprehensive loss | (40.8) | (40.8) | |||
Stock-based compensation activity | 6.3 | 6.3 | |||
Other | (0.5) | (0.2) | (0.3) | ||
Balance at end of period at Dec. 31, 2016 | 216.6 | 0.3 | 428 | 11.8 | (223.5) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income (loss) | (210.6) | (210.6) | |||
Other comprehensive loss | 83 | 83 | |||
Stock-based compensation activity | 8.3 | 8.3 | |||
Other | 0.1 | 0.1 | |||
Balance at end of period at Dec. 31, 2017 | 92.7 | 0.3 | 436.3 | (203.4) | (140.5) |
Increase (Decrease) in Stockholders' Equity | |||||
Adoption of accounting standard | (4.7) | (4.7) | |||
Net income (loss) | (91.6) | (91.6) | |||
Other comprehensive loss | (26.5) | (26.5) | |||
Dividends | (11.3) | (11.3) | |||
Stock-based compensation activity | 6.8 | 6.8 | |||
Balance at end of period at Dec. 31, 2018 | (27.1) | $ 0.3 | $ 431.8 | (292.2) | $ (167) |
Increase (Decrease) in Stockholders' Equity | |||||
Adoption of accounting standard | $ 2.8 | $ 2.8 |
Basis Of Presentation
Basis Of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | BASIS OF PRESENTATION Nature of Operations Aleris Corporation and all of its subsidiaries (collectively, except where the context otherwise requires, referred to as “Aleris,” “we,” “our,” “us,” and the “Company” or similar terms) is a Delaware corporation with its principal executive offices located in Cleveland, Ohio. The principal business of the Company is the production of aluminum rolled products, including aluminum plate, sheet and fabricated products, using continuous cast and direct-chill processes. Our aluminum plate and sheet products are sold to customers and distributors serving the aerospace, automotive, building and construction, truck trailer, consumer durables, other general industrial and distribution industries. Basis of Presentation Aleris 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. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Accounting Estimates The consolidated financial statements are prepared in conformity with GAAP and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are inherent in the valuations of derivatives, property, plant and equipment, intangible assets, the assumptions used to estimate the fair value of stock-based payments, pension and postretirement benefit obligations, workers’ compensation, medical and environmental liabilities, deferred tax asset valuation allowances, reserves for uncertain tax positions and allowances for uncollectible accounts receivable. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and our majority owned subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation. Cash Equivalents All highly liquid investments with a maturity of three months or less when purchased are considered cash equivalents. The carrying amount of cash equivalents approximates fair value because of the short maturity of those instruments. Restricted Cash Cash that is reserved for a specific purpose and not available for general business use is considered restricted cash. Restricted cash is classified as either current or noncurrent assets depending on the date of availability or disbursement. At December 31, 2018 , $7.0 of cash was restricted for payments of the China Loan Facility (defined below), all of which was included in “ Prepaid expenses and other current assets ” in the Consolidated Balance Sheet. There was $5.6 of restricted cash at December 31, 2017 . Accounts Receivable Allowances and Credit Risk We extend credit to our customers based on an evaluation of their financial condition; generally, collateral is not required. Substantially all of the accounts receivable associated with our European operations and a portion of the accounts receivable associated with our China operations are insured against loss by third party credit insurers. We maintain an allowance against our accounts receivable for the estimated probable losses on uncollectible accounts. The valuation reserve is based upon our historical loss experience, current economic conditions within the industries we serve and our determination of the specific risk related to certain customers. Accounts receivable are charged off against the reserve when, in management’s estimation, further collection efforts would not result in a reasonable likelihood of receipt, or, if later, as proscribed by statutory regulations. The movement of the accounts receivable allowance is as follows: For the years ended December 31, 2018 2017 2016 Balance at beginning of the period $ 0.4 $ 0.3 $ 0.4 Expenses for uncollectible accounts, net of recoveries — 0.1 0.4 Receivables written off against the valuation reserve (0.3 ) — (0.5 ) Balance at end of the period $ 0.1 $ 0.4 $ 0.3 Concentration of credit risk with respect to trade accounts receivable is limited due to the large number of customers in various industry segments comprising our customer base. Inventories Our inventories are stated at the lower of cost or net realizable value. Cost is determined primarily on the average cost or specific identification method and includes material, labor and overhead related to the manufacturing process. Our consigned inventory held at third party warehouses and customer locations was approximately $16.4 and $32.5 as of December 31, 2018 and 2017 , respectively. Property, Plant and Equipment Property, plant and equipment is stated at cost, net of asset impairments. The cost of property, plant and equipment acquired in business combinations represents the fair value of the acquired assets at the time of acquisition. The fair values of asset retirement obligations are capitalized to the related long-lived asset at the time the obligation is incurred and depreciated over the remaining useful life of the related asset. Major renewals and improvements that extend an asset’s useful life are capitalized to property, plant and equipment. Major repair and maintenance projects are expensed over periods not exceeding 18 months while normal maintenance and repairs are expensed as incurred. Depreciation is primarily computed using the straight-line method over the estimated useful lives of the related assets, as follows: Buildings and improvements 5 - 38 years Production equipment and machinery 2 - 25 years Office furniture, equipment and other 3 - 10 years Interest is capitalized in connection with major construction projects. Capitalized interest costs are as follows: For the years ended December 31, 2018 2017 2016 Capitalized interest $ 1.2 $ 8.4 $ 25.2 Intangible Assets Intangible assets are primarily related to trade names, technology and customer relationships. Acquired intangible assets are recorded at their estimated fair value in the allocation of the purchase price paid. Intangible assets with indefinite useful lives are not amortized and intangible assets with finite useful lives are amortized over their estimated useful lives, ranging from 15 to 25 years. See Note 7, “Intangible Assets,” for additional information. Impairment of Property, Plant, Equipment and Finite-Lived Intangible Assets We review our long-lived assets for impairment when changes in circumstances indicate that the carrying amount may not be recoverable. Once an impairment indicator has been identified, the asset impairment test is a two-step process. The first step consists of determining whether the sum of the estimated undiscounted future cash flows attributable to the specific asset group being tested is less than its carrying value. Estimated future cash flows used to test for recoverability include only the future cash flows that are directly associated with and are expected to arise as a direct result of the use and eventual disposition of the relevant asset group. If the carrying value of the asset group exceeds the future undiscounted cash flows expected from the asset group, a second step is performed to compute the extent of the impairment. Impairment charges are determined as the amount by which the carrying value of the asset group exceeds the estimated fair value of the asset group. As outlined in ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), the fair value measurement of our long-lived assets assumes the highest and best use of the asset by market participants, considering the use of the asset that is physically possible, legally permissible, and financially feasible at the measurement date. Highest and best use is determined based on the use of the asset by market participants, even if the intended use of the asset by the Company is different. The highest and best use of an asset establishes the valuation premise. The valuation premise is used to measure the fair value of an asset. ASC 820-10-35-10 states that the valuation premise of an asset is either of the following: ▪ In-use : The highest and best use of the asset is in-use if the asset would provide maximum value to market participants principally through its use in combination with other assets as a group (as installed or otherwise configured for use). ▪ In-exchange : The highest and best use of the asset is in-exchange if the asset would provide maximum value to market participants principally on a stand-alone basis. Once a premise is selected, the approaches considered in the estimation of the fair values of the Company’s long-lived assets tested for impairment, which represent level 3 measurements within the fair value hierarchy, include the income approach, sales comparison approach and the cost approach. Indefinite-Lived Intangible Asset Our indefinite-lived intangible asset related to our trade name is tested for impairment as of October 1 of each year and may be tested more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists. Under ASC 350, “Intangibles - Goodwill and Other,” intangible assets determined to have indefinite lives are not amortized, but are tested for impairment at least annually. As part of the annual impairment test, the non-amortized intangible asset is reviewed to determine if the indefinite status remains appropriate. Using a qualitative assessment in the current year, we determined that it was not more-likely-than-not that the indefinite-lived intangible asset was impaired and no impairment relating to our indefinite-lived intangible asset was necessary. Deferred Financing Costs The costs related to the issuance of debt are capitalized and amortized over the terms of the related debt agreements as interest expense using the effective interest method. Revenues Revenue is recognized when obligations under the terms of a contract with our customer are satisfied, which occurs at a point in time when control of the product transfers to the customer. See Note 3, “Revenue from Contracts with Customers,” for additional information. Shipping and Handling Costs Shipping and handling costs are included within “ Cost of sales ” in the Consolidated Statements of Operations. Research and Development Our research and development organization includes three locations in Europe, one location in the United States and one location in China, along with support staff focused on new product and alloy offerings and process performance technology. Research and development expenses, included in “Selling, general and administrative expenses” in the Consolidated Statements of Operations, were $18.4 , $16.0 and $10.9 for the years ended December 31, 2018 , 2017 and 2016 , respectively. Stock-Based Compensation We recognize compensation expense for stock options, restricted stock units and restricted shares under the provisions of ASC 718, “Compensation—Stock Compensation,” using the non-substantive vesting period approach, in which the expense is recognized ratably over the requisite service period based on the grant date fair value. The fair value of each stock option was estimated on the date of grant using a Black-Scholes option pricing model. Determining the fair value of stock options at the grant date requires judgment, including estimates for the average risk-free interest rate, dividend yield and volatility. Subsequent to the adoption of ASU 2016-09, “Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), forfeitures are recognized as they occur and the term of the awards are calculated using the practical expedient that allows for the calculation of the term to be the midpoint between the requisite service period and the contractual term of the award. The fair value of restricted stock units and restricted shares were based on the estimated fair value of our common stock on the date of grant. The fair value of our common stock was estimated based upon a present value technique using discounted cash flows, forecasted over a five-year period with residual growth rates thereafter, and a market comparable approach. From these two approaches, the discounted cash flow analysis was weighted at 50% and the comparable public company analysis was weighted at 50% . The discounted cash flow analysis was based on our projected financial information which includes a variety of estimates and assumptions. While we consider such estimates and assumptions reasonable, they are inherently subject to uncertainties and a wide variety of significant business, economic and competitive risks, many of which are beyond our control and may not materialize. Changes in these estimates and assumptions may have a significant effect on the determination of the fair value of our common stock. The discounted cash flow analysis was based on production volume projections developed by internal forecasts, as well as commercial, wage and benefit and inflation assumptions. The discounted cash flow analysis included the sum of (i) the present value of the projected unlevered cash flows for a five-year period (the “Projection Period”); and (ii) the present value of a terminal value, which represented the estimate of value attributable to periods beyond the Projection Period. To calculate the terminal value, a perpetuity growth rate approach is used. Other significant assumptions include future capital expenditures and changes in working capital requirements. The comparable public company analysis identified a group of comparable companies giving consideration to, among other relevant characteristics, similar lines of business, business risks, growth prospects, business maturity, market presence, leverage, size and scale of operations. The analysis compared the public market implied fair value for each comparable public company to its historical and projected revenues, and earnings before interest, taxes, depreciation and amortization (“EBITDA”). There were no stock options, restricted stock units or restricted shares granted during the year ended December 31, 2018 . Total stock-based compensation expense included in “ Selling, general and administrative expenses ” in the Consolidated Statements of Operations for the years ended December 31, 2018 , 2017 and 2016 was $9.2 , $11.3 and $7.0 , respectively. Derivatives and Hedging We are engaged in activities that expose us to various market risks, including changes in the prices of primary aluminum, aluminum alloys, scrap aluminum, copper, zinc, natural gas and diesel, as well as changes in currency and interest rates. Certain of these financial exposures are managed as an integral part of our risk management program, which seeks to reduce the potentially adverse effects that the volatility of the markets may have on operating results. We do not hold or issue derivative financial instruments for trading purposes. Our metal pricing strategy is designed to minimize significant, unanticipated fluctuations in earnings caused by the volatility of aluminum prices. We also maintain a natural gas pricing strategy designed to minimize significant fluctuations in earnings caused by the volatility of natural gas prices. 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 all positions expected to settle in less than one year with these counterparties as a net current asset or liability and all long-term positions as a net long-term asset or liability. The fair values of our derivative financial instruments are recognized as assets or liabilities at the balance sheet date. Fair values for our metal and energy derivative instruments are determined based on the differences between contractual and forward rates of identical hedge positions as of the balance sheet date. Our currency and interest rate derivative instruments are valued using observable or market-corroborated inputs such as exchange rates, volatility and forward yield curves. In accordance with the requirements of ASC 820, we have included an estimate of the risk associated with non-performance by either ourselves or our counterparties in developing these fair values. See Note 13, “Derivative and Other Financial Instruments,” for additional information. The Company does not currently account for its derivative financial instruments as hedges. With the exception of our interest rate derivative instruments (for which realized gains are included within “Interest expense, net” in the Consolidated Statements of Operations) 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 Operations. All realized gains and losses are included within “ Net cash provided (used) by operating activities ” in the Consolidated Statements of Cash Flows. We are exposed to losses in the event of non-performance by counterparties to derivative contracts. Counterparties are evaluated for creditworthiness and a risk assessment is completed prior to our initiating contract activities. The counterparties’ creditworthiness is then monitored on an ongoing basis, and credit levels are reviewed to ensure there is not an inappropriate concentration of credit outstanding to any particular counterparty. Although non-performance by counterparties is possible, we do not currently anticipate non-performance by any of these parties. At December 31, 2018 , substantially all of our derivative financial instruments were maintained with ten counterparties. We have the right to require cash collateral from our counterparties based on the fair value of the underlying derivative financial instruments. Currency Translation The majority of our international subsidiaries use the local currency as their functional currency. Individually significant transactions are translated at the applicable currency exchange rate on the date of the transaction. We translate all of the other amounts included in our Consolidated Statements of Operations from our international subsidiaries into U.S. dollars at average monthly exchange rates, which we believe are representative of the actual exchange rates on the dates of the transactions. Adjustments resulting from the translation of the assets and liabilities of our international operations into U.S. dollars at the balance sheet date exchange rates are reflected as a separate component of stockholders’ equity. Currency translation adjustments accumulate in consolidated equity until the disposition or liquidation of the international entities. Except for intercompany debt determined to be of a long-term investment nature, current intercompany accounts and transactional gains and losses associated with receivables, payables and debt denominated in currencies other than the functional currency are included within “ Other (income) expense, net ” in the Consolidated Statements of Operations. The translation of accounts receivables, payables and debt denominated in currencies other than the functional currencies resulted in transactional losses (gains) of $ 0.3 , $ 8.2 and $ (0.8) for the years ended December 31, 2018 , 2017 and 2016 , respectively. Income Taxes We account for income taxes using the asset and liability method, whereby deferred income taxes reflect the tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In valuing deferred tax assets, we use judgment in determining if it is more likely than not that some portion or all of a deferred tax asset will not be realized and the amount of the required valuation allowance. Tax benefits from uncertain tax positions are recognized in the financial statements when it is more likely than not that the position is sustainable, based solely on its technical merits and considerations of the relevant taxing authority, widely understood practices and precedents. We recognize interest and penalties related to uncertain tax positions within “ Provision for income taxes ” in the Consolidated Statements of Operations. Environmental and Asset Retirement Obligations Environmental obligations that are not legal or contractual asset retirement obligations and that relate to existing conditions caused by past operations with no benefit to future operations are expensed while expenditures that extend the life, increase the capacity or improve the safety of an asset or that mitigate or prevent future environmental contamination are capitalized in property, plant and equipment. Obligations are recorded when their occurrence is probable and the associated costs can be reasonably estimated in accordance with ASC 410-30, “Environmental Obligations.” While our accruals are based on management’s current best estimate of the future costs of remedial action, these liabilities can change substantially due to factors such as the nature and extent of contamination, changes in the required remedial actions and technological advancements. Our existing environmental liabilities are not discounted to their present values as the amount and timing of the expenditures are not fixed or reliably determinable. Asset retirement obligations represent obligations associated with the retirement of tangible long-lived assets. Our asset retirement obligations relate primarily to the requirements related to the future removal of asbestos and underground storage tanks. The costs associated with such legal obligations are accounted for under the provisions of ASC 410-20, “Asset Retirement Obligations,” which requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred and capitalized as part of the carrying amount of the long-lived asset. These fair values are based upon the present value of the future cash flows expected to be incurred to satisfy the obligation. Determining the fair value of asset retirement obligations requires judgment, including estimates of the credit adjusted interest rate and estimates of future cash flows. Estimates of future cash flows are obtained primarily from engineering consulting firms. The present value of the obligations is accreted over time while the capitalized cost is depreciated over the useful life of the related asset. Retirement, Early Retirement and Postemployment Benefits Our defined benefit pension and other postretirement benefit plans are accounted for in accordance with ASC 715, “Compensation—Retirement Benefits.” Pension and postretirement benefit obligations are actuarially calculated using management’s best estimates of assumptions which include the expected return on plan assets (calculated using the fair value of plan assets), the rate at which plan liabilities may be effectively settled (discount rate), health care cost trend rates and rates of compensation increases. Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor, which is set at 10% of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan. If substantially all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used. Benefits provided to employees after employment but prior to retirement are accounted for under ASC 712, “Compensation—Nonretirement Postemployment Benefits” (“ASC 712”). Such postemployment benefits include severance and medical continuation benefits that are offered pursuant to an ongoing benefit arrangement and do not represent a one-time benefit termination arrangement. Under ASC 712, liabilities for postemployment benefits are recorded at the time the obligations are probable of being incurred and can be reasonably estimated. This is typically at the time a triggering event occurs, such as the decision by management to close a facility. Benefits related to the relocation of employees and certain other termination benefits are accounted for under ASC 420, “Exit or Disposal Cost Obligations,” and are expensed over the required service period. Business Combinations All business combinations are accounted for using the acquisition method as prescribed by ASC 805, “Business Combinations.” The purchase price paid is allocated to the assets acquired and liabilities assumed based on their estimated fair values. Any excess purchase price over the fair value of the net assets acquired is recorded as goodwill. General Guarantees and Indemnifications It is common in long-term processing agreements for us to agree to indemnify customers for tort liabilities that arise out of, or relate to, the processing of their material. Additionally, we typically indemnify such parties for certain environmental liabilities that arise out of or relate to the processing of their material. In our equipment financing agreements, we typically indemnify the financing parties, trustees acting on their behalf and other related parties against liabilities that arise from the manufacture, design, ownership, financing, use, operation and maintenance of the equipment and for tort liability, whether or not these liabilities arise out of or relate to the negligence of these indemnified parties, except for their gross negligence or willful misconduct. We expect that we would be covered by insurance (subject to deductibles) for most tort liabilities and related indemnities described above with respect to equipment we lease and material we process. Although we cannot estimate the potential amount of future payments under the foregoing indemnities and agreements, we are not aware of any events or actions that will require payment. Recently Adopted and New 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. For the year ended December 31, 2017 , $2.0 and $1.6 of pension and postretirement benefit expenses were reclassified from “Cost of sales” and “Selling, general and administrative expenses,” respectively, to “ Other (income) expense, net ” in the Consolidated Statements of Operations. For the year ended December 31, 2016 , $1.8 and $1.0 of pension and postretirement benefit expenses were reclassified from “Cost of sales” and “Selling, general and administrative expenses,” respectively, to “ Other (income) expense, net ” in the Consolidated Statements of Operations. 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. The Company adopted ASU 2016-02 on January 1, 2019 and has executed a project plan to guide the implementation of the standard. The project plan includes analyzing the Company’s purchasing contracts, drafting an updated accounting policy and evaluating new disclosure requirements. In addition, the Company is identifying and implementing appropriate changes to its business processes and controls to support the accounting and disclosure under the new guidance. We have adopted the standard using a modified retrospective approach, applying the standard’s transition provisions at the beginning of the period of adoption. ASU 2016-02 provides for certain practical expedients when adopting the guidance. The Company elected the package of practical expedients allowing us to not reassess whether any expired or existing contracts are, or contain, leases, the lease classification for any expired or existing leases or initial direct costs for any expired or existing leases. Upon adoption, we expect to record operating lease right-of-use assets in the range of approximately $10.0 to $15.0 , representing the present value of future lease payments under operating leases with terms of greater than twelve months. We also expect to record corresponding operating lease liabilities in the range of approximately and $11.0 to $16.0 . In addition, we expect the current capital lease balances of $10.4 , $4.0 and $6.2 reported in fixed assets, current maturities of long-term debt and long-term debt, respectively, will be reclassified into separately classified right-of-use asset and lease obligation accounts. We do not expect the adoption to impact retained earnings. 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, and has applied the standard to all contracts at that date. In evaluating the impact of the standard, management has concluded that control has transferred on certain 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 December 31, 2018 and our Consolidated Statement of Operations for the year ended December 31, 2018 is as follows: Increase (decrease) Consolidated Balance Sheet Accounts receivable $ 26.0 Inventories (22.8 ) Accrued liabilities 2.4 Consolidated Statement of Operations Revenues $ (2.0 ) Cost of goods sold (1.7 ) |
Revenue From Contracts with Cus
Revenue From Contracts with Customers | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 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 (as defined by ASC 606) 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 year ended December 31, 2018 North America Europe Asia Pacific Intra-entity sales Total Aerospace $ — $ 293.3 $ 85.1 $ — $ 378.4 Automotive 221.0 400.8 — (25.0 ) 596.8 Building and construction 834.6 — — — 834.6 Distribution 465.0 — 61.6 (0.8 ) 525.8 Heat exchanger — 263.9 — — 263.9 Regional plate and sheet — 397.5 — — 397.5 Truck trailer 194.0 — — — 194.0 Other 201.1 51.9 2.1 (0.2 ) 254.9 $ 1,915.7 $ 1,407.4 $ 148.8 $ (26.0 ) $ 3,445.9 We occasionally receive advance payments to secure product to be delivered in future periods. These advance payments are recorded as deferred revenue, and revenue is recognized as our performance obligations are satisfied throughout the term of the applicable contract. We may also purchase aluminum on our customer’s behalf, sell the unprocessed aluminum to our customer and then process and ship the material, charging a processing fee at the time of shipment. For these arrangements, a single performance obligation exists, and, as a result, amounts invoiced to our customers for the aluminum purchased on their behalf is recorded as deferred revenue until the aluminum is processed and shipped. The following table details the deferred revenue for which our performance obligations have not been satisfied: Total Deferred Revenue Deferred revenue at January 1, 2018 $ 21.4 (a) Payments received 78.0 Revenue recognized (18.8 ) Adoption of ASC 606 1.6 Currency and other (0.3 ) Deferred revenue at December 31, 2018 $ 81.9 (a) (a) Deferred revenue is included in “Accrued liabilities” and “Deferred revenue” on the Consolidated Balance Sheet. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | RESTRUCTURING CHARGES 2018 Restructuring During the year ended December 31, 2018 , we recorded restructuring charges of $4.8 in the Consolidated Statements of Operations. These charges included $4.3 related to exit and environmental remediation costs of closed facilities within the North America segment. The remainder of the charges related to severance and other termination benefits. 2017 Restructuring During the year ended December 31, 2017 , we recorded restructuring charges of $2.9 in the Consolidated Statements of Operations. These charges included $1.6 related to exit and environmental remediation costs of closed facilities within the North America segment. The charges also included $1.3 related to severance and other termination benefits associated with personnel reductions. 2016 Restructuring During the year ended December 31, 2016 , we recorded restructuring charges of $1.5 in the Consolidated Statements of Operations. These charges primarily related to exit and environmental remediation costs of closed facilities within the North America segment. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory, Net [Abstract] | |
Inventories | INVENTORIES The components of our “Inventories” as of December 31, 2018 and 2017 are as follows: December 31, 2018 2017 Raw materials $ 283.8 $ 207.6 Work in process 284.5 210.8 Finished goods 169.1 181.6 Supplies 35.5 31.2 Total inventories $ 772.9 $ 631.2 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT The components of our consolidated property, plant and equipment are as follows: December 31, 2018 2017 Land $ 94.2 $ 93.6 Buildings and improvements 395.6 395.6 Production equipment and machinery 1,456.8 1,314.9 Office furniture and computer software and equipment 129.8 120.9 Construction work-in-progress 41.7 152.9 Property, plant and equipment 2,118.1 2,077.9 Accumulated depreciation (723.1 ) (607.0 ) Property, plant and equipment, net $ 1,395.0 $ 1,470.9 Capital lease assets totaled $17.9 and $16.4 at December 31, 2018 and 2017 , respectively. Accumulated amortization of capital lease assets totaled $7.5 and $7.2 at December 31, 2018 and 2017 , respectively. Capital expenditures included in accounts payable totaled $17.9 and $20.4 at December 31, 2018 and 2017 , respectively. Capital expenditures included in accrued liabilities totaled $20.4 and $42.6 at December 31, 2018 and 2017 , respectively. Our depreciation expense, including amortization of capital lease assets, and repair and maintenance expense was as follows: For the years ended December 31, 2018 2017 2016 Depreciation expense included within “Selling, general and administrative expenses” $ 9.5 $ 8.2 $ 9.5 Depreciation expense included within “Cost of sales” 128.1 105.4 93.2 Repair and maintenance expense included within “Loss from continuing operations” 105.0 95.5 93.1 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | INTANGIBLE ASSETS The following table details our intangible assets as of December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 Gross Gross carrying Accumulated Net Average carrying Accumulated Net amount amortization amount life amount amortization amount Trade name $ 15.9 $ — $ 15.9 Indefinite $ 15.9 $ — $ 15.9 Technology 5.9 (2.1 ) 3.8 25 years 5.9 (1.8 ) 4.1 Customer relationships 28.3 (15.5 ) 12.8 15 years 28.3 (13.6 ) 14.7 Total $ 50.1 $ (17.6 ) $ 32.5 17 years $ 50.1 $ (15.4 ) $ 34.7 The following table presents amortization expense, which has been classified within “Selling, general and administrative expenses” in the Consolidated Statements of Operations: For the years ended December 31, 2018 2017 2016 Amortization expense $ 2.1 $ 2.1 $ 2.1 The following table presents estimated amortization expense for the next five years: 2019 $ 2.1 2020 2.1 2021 2.1 2022 2.1 2023 2.1 Total $ 10.5 |
Accrued and Other Long-Term Lia
Accrued and Other Long-Term Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Accrued and Other Long-Term Liabilities | ACCRUED AND OTHER LONG-TERM LIABILITIES Accrued liabilities at December 31, 2018 and 2017 consisted of the following: December 31, 2018 2017 Employee-related costs $ 67.8 $ 64.7 Accrued interest 31.5 26.9 Accrued taxes 21.2 16.9 Accrued capital expenditures 20.4 42.6 Deferred revenue 16.8 3.0 Accrued professional fees 11.1 7.8 Derivative financial instruments 4.8 9.0 Other liabilities 24.5 26.5 Total accrued liabilities $ 198.1 $ 197.4 Other long-term liabilities at December 31, 2018 and 2017 consisted of the following: December 31, 2018 2017 Accrued environmental and ARO liabilities $ 26.7 $ 24.3 Employee-related costs 14.6 18.2 Derivative financial instruments 2.4 — Other long-term liabilities 2.4 6.6 Total other long-term liabilities $ 46.1 $ 49.1 |
Asset Retirement Obligation
Asset Retirement Obligation | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation [Abstract] | |
Asset Retirement Obligations | ASSET RETIREMENT OBLIGATIONS Our asset retirement obligations consist of legal obligations associated with costs to remove asbestos and underground storage tanks and other legal or contractual obligations associated with the ultimate closure of our manufacturing facilities. The changes in the carrying amount of asset retirement obligations for the years ended December 31, 2018 , 2017 and 2016 are as follows: For the years ended December 31, 2018 2017 2016 Balance at the beginning of the period $ 6.1 $ 4.7 $ 4.6 Revisions and liabilities incurred 1.0 1.2 — Accretion expense 0.1 0.1 0.1 Payments (0.3 ) — (0.1 ) Translation and other charges (0.1 ) 0.1 0.1 Balance at the end of the period $ 6.8 $ 6.1 $ 4.7 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | LONG-TERM DEBT Our debt is summarized as follows: December 31, 2018 2017 ABL Facility $ 253.7 $ 319.3 First Lien Term Loan due 2023, net of discount and deferred issuance costs of $24.3 at December 31, 2018 1,070.2 — 10.75% Senior Secured Junior Priority Notes due 2023, net of discount and deferred issuance costs of $7.5 at December 31, 2018 392.5 — 7 7/8% Senior Notes due 2020, net of discount and deferred issuance costs of $3.3 at December 31, 2017 — 436.7 9 1/2% Senior Secured Notes due 2021, inclusive of net premiums and deferred issuance costs of $0.8 at December 31, 2017 — 800.8 Exchangeable Notes, net of discount of $0.2 and $0.3 at December 31, 2018 and December 31, 2017, respectively 44.6 44.5 Zhenjiang Term Loans, net of discount of $0.4 and $0.5 at December 31, 2018 and December 31, 2017, respectively 157.2 169.8 Other 10.1 9.4 Total debt 1,928.3 1,780.5 Less: Current portion of long-term debt 21.9 9.1 Total long-term debt $ 1,906.4 $ 1,771.4 Maturities of Debt Scheduled maturities of our debt and capital leases subsequent to December 31, 2018 are as follows: Debt Capital leases 2019 $ 18.0 $ 4.1 2020 73.2 3.0 2021 37.2 1.5 2022 299.6 0.8 2023 1,485.4 0.5 After 2023 37.3 0.6 Total $ 1,950.7 $ 10.5 Debt Refinancing On June 25, 2018 , Aleris International completed debt refinancing transactions, pursuant to which Aleris International (i) raised $1,500.0 in new debt financing (the “New Financing”), consisting of (A) a new senior secured first lien term loan in an aggregate principal amount of $1,100.0 (the “Term Loan Facility”) and (B) $400.0 aggregate principal amount of newly issued 10.75% senior secured junior priority notes due 2023 (the “2023 Junior Priority Notes”), (ii) amended its existing ABL Facility (as defined below) (the “ABL Amendment”), and (iii) used the net proceeds of the New Financing to (A) redeem all of its Prior Notes (as defined below), (B) repay a portion of its outstanding borrowings under the ABL Facility and (C) pay related fees and expenses. As a result of the debt refinancing transactions, we recorded debt extinguishment costs of $48.9 , consisting primarily of the redemption costs for the Prior Notes and expensing the net unamortized discounts and debt issuance costs of the Prior Notes. Term Loan Facility The Term Loan Facility consists of a $1,100.0 first lien senior secured term loan facility, which will mature on February 27, 2023 . Aleris International’s obligations under the Term Loan Facility are guaranteed by Aleris Corporation and Aleris International’s domestic restricted subsidiaries that guarantee Aleris International’s existing obligations under the ABL Facility and the 2023 Junior Priority Notes (the “Guarantor Subsidiaries” and, together with Aleris Corporation, the “Guarantors”). The Term Loan Facility also includes an uncommitted incremental facility, which, subject to certain conditions, provides for additional term loan facilities in an aggregate principal amount not to exceed the sum of (i) $75.0 , plus (ii) an amount equal to all voluntary prepayments and loan buybacks of the Term Loan Facility and any other indebtedness that is secured on a pari passu basis with the Term Loan Facility (other than prepayments and buybacks financed with long-term indebtedness (other than revolving indebtedness)), plus (iii) an additional unlimited amount subject to a First Lien Net Leverage Ratio (as defined in the Term Loan Facility) of 3.75 to 1.00. The Term Loan Facility bears interest on the unpaid principal amount at a rate equal to, at Aleris International’s option, either: ▪ a base rate determined by reference to the highest of (i) the rate which Deutsche Bank AG New York Branch announces as its prime lending rate, (ii) the overnight federal funds rate plus 0.50% and (iii) one-month LIBOR plus 1.00% , in each case plus 3.75% ; or ▪ a LIBOR rate determined by reference to the London interbank offered rate for dollars for the relevant interest period, adjusted for statutory reserve requirements, plus 4.75% . The LIBOR rate will be subject to a 0.00% rate floor. Amounts borrowed under the Term Loan Facility amortize in equal quarterly installments in aggregate annual amounts equal to 1.00% of the original principal amount of the Term Loan Facility, with the balance payable on the maturity date of the Term Loan Facility. The Term Loan Facility requires certain mandatory prepayments of outstanding loans under the Term Loan Facility, subject to certain exceptions, based on (i) a percentage of net cash proceeds of certain asset sales and casualty and condemnation events in excess of certain thresholds (subject to certain reinvestment rights), (ii) net cash proceeds of any issuance of debt, excluding permitted debt issuances and (iii) a percentage of Excess Cash Flow (as defined in the Term Loan Facility) in excess of certain thresholds during a fiscal year. Aleris International may voluntarily prepay loans outstanding under the Term Loan Facility, in whole or in part, without premium or penalty (except as described below) in minimum amounts, at any time, subject to customary “breakage” costs with respect to LIBOR rate loans. If Aleris International prepays loans in connection with a repricing transaction prior to the date that is twelve months after the closing of the Term Loan Facility, subject to certain exceptions, such prepayment will be subject to a 1.00% prepayment fee. The Term Loan Facility is secured by (i) a first-priority lien on substantially all of Aleris International’s and the Guarantors’ assets (excluding the ABL Collateral (as defined below)), including, without limitation, all owned and material U.S. real property, equipment, intellectual property and stock of Aleris International and the Guarantors (other than Aleris Corporation) and other subsidiaries (including 100% of the outstanding non-voting stock (if any) and 65% of the outstanding voting stock of certain “first tier” foreign subsidiaries and certain “first tier” foreign subsidiary holding companies), which assets secure the 2023 Junior Priority Notes on a second priority basis and secure the ABL Facility on a third priority basis (the “Term Loan Collateral”) and (ii) a second-priority lien on all of Aleris International’s and the Guarantors’ (other than Aleris Corporation) inventory, accounts receivable, deposit accounts and related assets (subject to certain exceptions), which assets secure the ABL Facility on a first priority basis and secure the 2023 Junior Priority Notes on a third priority basis (the “ABL Collateral” and, together with the Term Loan Collateral, the “Collateral”), in each case excluding certain assets and subject to permitted liens. The Term Loan Facility contains a number of covenants that, subject to certain exceptions, impose restrictions on Aleris International and certain of its subsidiaries, including, without limitation, restrictions on the ability to, among other things, incur additional debt, grant liens or security interests on assets, merge, consolidate or sell assets, make investments, loans and acquisitions, pay dividends and make restricted payments, modify terms of junior indebtedness or enter into affiliate transactions. The Term Loan Facility also contains certain customary affirmative covenants and events of default. Aleris International was in compliance with all covenants set forth in the Term Loan Facility as of December 31, 2018 . 2023 Junior Priority Notes On June 25, 2018, Aleris International completed the issuance of $400.0 aggregate principal amount of 2023 Junior Priority Notes and related guarantees in a private offering under Rule 144A and Regulation S of the Securities Act of 1933, as amended. The 2023 Junior Priority Notes were issued under an indenture (as amended and supplemented from time to time, the “2023 Junior Priority Notes Indenture”), dated as of June 25, 2018, among Aleris International, the guarantors named therein and U.S. Bank National Association, as trustee and collateral agent. The 2023 Junior Priority Notes are jointly and severally, irrevocably and unconditionally guaranteed on a senior secured basis, by each of the Guarantors, as primary obligor and not merely as surety. The 2023 Junior Priority Notes bear interest at an annual rate of 10.75% . Interest is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2019. The 2023 Junior Priority Notes will mature on July 15, 2023 . The 2023 Junior Priority Notes are secured by (i) a second-priority lien on the Term Loan Collateral and (ii) a third-priority lien on the ABL Collateral, in each case excluding certain assets and subject to permitted liens. Aleris International is not required to make any mandatory redemption or sinking fund payments with respect to the 2023 Junior Priority Notes, but under certain circumstances, it may be required to offer to purchase the 2023 Junior Priority Notes as described below. Aleris International may from time to time acquire 2023 Junior Priority Notes by means other than redemption, whether by tender offer, in open market purchases, through negotiated transactions or otherwise, in accordance with applicable securities laws. From and after July 15, 2020, Aleris International may redeem the 2023 Junior Priority Notes, in whole or in part, at a redemption price of 104.00% of the principal amount, thereof plus accrued and unpaid interest, declining ratably to 100.00% of the principal amount thereof, plus accrued and unpaid interest, on or after July 15, 2022. Prior to July 15, 2020, Aleris International may redeem up to 40.00% of the aggregate principal amount of the 2023 Junior Priority Notes with funds in an amount equal to all or a portion of the net cash proceeds from certain equity offerings at a redemption price of 110.75% , plus accrued and unpaid interest. Aleris International may make such redemption so long as, immediately after the occurrence of any such redemption, at least 60.00% of the aggregate principal amount of the 2023 Junior Priority Notes remains outstanding and such redemption occurs within 180 days of the closing of the applicable equity offering. Additionally, at any time prior to July 15, 2020, Aleris International may redeem the 2023 Junior Priority Notes, in whole or in part, at a redemption price equal to 100.00% of the principal amount thereof, plus the applicable premium as provided in the 2023 Junior Priority Notes Indenture and accrued and unpaid interest. If Aleris International or any restricted subsidiary consummates one or more asset sales generating net proceeds in excess of $35.0 in the aggregate at any time (x) on or prior to July 15, 2019, Aleris International may, at its option, redeem all or a portion of the 2023 Junior Priority Notes in an aggregate principal amount not to exceed such net proceeds at a redemption price equal to 102.00% of the principal amount thereof and (y) after July 15, 2019 but on or prior to July 15, 2020, Aleris International may, at its option, redeem all or a portion of the 2023 Junior Priority Notes in an aggregate principal amount not to exceed such net proceeds at a redemption price equal to 103.00% of the principal amount thereof, in each case, plus accrued and unpaid interest. If Aleris International experiences a “change of control” as specified in the 2023 Junior Priority Notes Indenture (x) on or prior to July 15, 2019, Aleris International may, at its option, redeem all, but not less than all, of the 2023 Junior Priority Notes at a redemption price equal to 102.00% of the principal amount thereof and (y) at any time after July 15, 2019 but on or prior to July 15, 2020, Aleris International may, at its option, redeem all, but not less than all, of the 2023 Junior Priority Notes at a redemption price equal to 103.00% of the principal amount thereof, in each case, plus accrued and unpaid interest. In addition, if Aleris International experiences a change of control and does not elect to redeem the notes as provided above, Aleris International must offer to purchase all of the 2023 Junior Priority Notes at a price equal to 101.00% of the principal amount thereof, plus accrued and unpaid interest. If Aleris International or its restricted subsidiaries engage in certain asset sales, Aleris International will be required to use 80.00% of the consideration received from such asset sales to permanently reduce certain debt within a specified period of time. Aleris International will be required to use a portion of the remaining proceeds of such asset sales, as well as the proceeds of certain events of loss with respect to the Collateral, as the case may be, to make an offer to purchase a principal amount of the 2023 Junior Priority Notes at a price of 100.00% of the principal amount thereof, plus accrued and unpaid interest, to the extent such proceeds are not invested or used to permanently reduce certain debt within a specified period of time. The 2023 Junior Priority Notes Indenture contains covenants, subject to certain limitations and exceptions, limiting the ability of Aleris International and its restricted subsidiaries to, among other things: incur additional debt; pay dividends or distributions on Aleris International’s capital stock or redeem, repurchase or retire Aleris International’s capital stock or subordinated debt; issue preferred stock of restricted subsidiaries; make certain investments; create liens on Aleris International’s or its Guarantors Subsidiaries’ assets to secure debt; enter into sale and leaseback transactions; create restrictions on the payment of dividends or other amounts to Aleris International from the restricted subsidiaries that are not guarantors of the 2023 Junior Priority Notes; enter into transactions with affiliates; merge or consolidate with another company; and sell assets, including capital stock of Aleris International’s subsidiaries. The 2023 Junior Priority Notes Indenture also contains customary events of default. Aleris International was in compliance with all covenants set forth in the 2023 Junior Priority Notes Indenture as of December 31, 2018 . ABL Facility On June 25, 2018, Aleris International entered into the ABL Amendment, which amended the credit agreement governing its existing asset-based revolving credit facility, dated as of June 15, 2015 (as amended, the “ABL Facility”), among Aleris International, the other borrowers party thereto, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent for the lenders (the “ABL Administrative Agent”), and J.P. Morgan Europe Limited, as the European agent for the lenders. The terms of the ABL Amendment increased the size of the ABL Facility by $150.0 . As amended, the ABL Facility permits multi-currency borrowings up to $750.0 by Aleris International and its U.S. subsidiaries and up to a combined $375.0 by Aleris Switzerland GmbH, a wholly owned Swiss subsidiary, Aleris Aluminum Duffel BVBA, a wholly owned Belgian subsidiary, Aleris Rolled Products Germany GmbH, a wholly owned German subsidiary and, upon its accession to the credit agreement, Aleris Casthouse Germany GmbH, a wholly owned German subsidiary (but limited to $750.0 in total). The availability of funds to the borrowers located in each jurisdiction is subject to a borrowing base for that jurisdiction and the jurisdictions in which certain subsidiaries of such borrowers are located. Both the borrowing base and the ABL Facility utilization may fluctuate on a monthly basis. Our borrowing base may also fluctuate due to, in part, seasonal working capital increases and increased aluminum prices. The ABL Facility provides for the issuance of up to $125.0 of letters of credit. The credit agreement provides that commitments under the ABL Facility may be increased at any time by an additional $300.0 , subject to certain conditions. As of December 31, 2018 , we estimate that the borrowing base would have supported borrowings of up to $632.4 . We had outstanding borrowings of $253.7 under the ABL Facility as of December 31, 2018 . After giving effect to outstanding borrowings and letters of credit, Aleris International had $353.3 available for borrowing under the ABL Facility. Borrowings under the ABL Facility bear interest at rates equal to the following: ▪ in the case of borrowings in U.S. dollars, (a) a LIBOR determined by reference to the offered rate for deposits in dollars for the interest period relevant to such borrowing (the “Eurodollar Rate”), plus an applicable margin ranging from 1.50% to 2.00% based on availability under the ABL Facility or (b) a base rate determined by reference to the higher of (1) JPMorgan Chase Bank, N.A.’s prime lending rate and (2) the one month Eurodollar Rate, plus an applicable margin ranging from 0.50% to 1.00% based on excess availability under the ABL Facility; ▪ in the case of borrowings in euros, a EURIBOR determined by the administrative agent plus an applicable margin ranging from 1.50% to 2.00% based on excess availability under the ABL Facility; and ▪ in the case of borrowings in Sterling, a LIBOR determined by reference to the offered rate for deposits in Sterling for the interest period relevant to such borrowing, plus an applicable margin ranging from 1.50% to 2.00% based on excess availability under the ABL Facility. In addition to paying interest on any outstanding principal under the ABL Facility, Aleris International is required to pay a commitment fee in respect of unutilized commitments ranging from 0.250% to 0.375% based on average utilization for the applicable period. Aleris International must also pay customary letter of credit fees and agency fees. The ABL Facility is subject to mandatory prepayment with (i) 100% of the net cash proceeds of certain asset sales and casualty proceeds relating to the collateral for the ABL Facility under certain circumstances, and (ii) 100% of the net cash proceeds from issuance of debt, other than debt permitted under the ABL Facility. In addition, if at any time outstanding loans, unreimbursed letter of credit drawings and undrawn letters of credit under the ABL Facility exceed the applicable borrowing base in effect at such time, Aleris International is required to repay outstanding loans or cash collateralize letters of credit in an aggregate amount equal to such excess, with no reduction of the commitment amount. There is no scheduled amortization under the ABL Facility. In addition to increasing the size of the ABL Facility, the terms of the ABL Amendment, among other things, (i) extended the maturity date of the ABL Facility from June 15, 2020 to the earliest of (x) June 25, 2023, (y) the date that is 60 days prior to the scheduled maturity date of the term loans under the Term Loan Facility (currently February 27, 2023) and (z) the date that is 60 days prior to the scheduled maturity date of the 2023 Junior Priority Notes (currently July 15, 2023), (ii) removed a previous borrowing base reserve on Belgian finished goods inventory, (iii) permitted the incurrence of the Term Loan Facility and the 2023 Junior Priority Notes and (iv) amended certain covenants and other provisions consistent with the corresponding terms of the Term Loan Facility and the 2023 Junior Priority Notes. Aleris International may voluntarily reduce the unutilized portion of the commitment amount and repay outstanding loans at any time upon three business days’ prior written notice without premium or penalty other than customary “breakage” costs with respect to Eurodollar Rate loans, Sterling LIBOR loans and EURIBOR loans. Concurrently with the effectiveness of the ABL Amendment, the ABL Facility continues to be secured by a first-priority lien over the ABL Collateral and is also secured by a third-priority lien (ranking junior to the lien therein in favor of the Term Loan Facility and the 2023 Junior Priority Notes) over the Term Loan Collateral, in each case excluding certain assets and subject to permitted liens. The obligations of the Swiss borrower, the Belgian borrower and the German borrowers are secured by their respective current assets and related intangible assets, if any. The credit agreement governing the ABL Facility contains a number of covenants that, subject to certain exceptions, impose restrictions on Aleris International and certain of its subsidiaries, including, without limitation, restrictions on its ability to, among other things, incur additional debt, create liens, merge, consolidate or sell assets, make investments, loans and acquisitions, pay dividends and make certain payments or enter into affiliate transactions. Although the credit agreement governing the ABL Facility generally does not require Aleris International to comply with any financial ratio maintenance covenants, if combined availability is less than the greater of (a) 10% of the lesser of the combined borrowing base and the combined commitments and (b) $40.0 a minimum fixed charge coverage ratio (as defined in the credit agreement) of at least 1.0 to 1.0 will apply. The credit agreement also contains certain customary affirmative covenants and events of default. Aleris International was in compliance with all of the covenants set forth in the credit agreement as of December 31, 2018 . Redemption of Prior Notes As part of the debt refinancing transactions discussed above, Aleris International redeemed in full the aggregate principal amount of its former 7 7 / 8 % senior notes due 2020 (the “2020 Notes”) and 9½% senior secured notes due 2021 (the “2021 Notes” and, together with the 2020 Notes, the “Prior Notes”). The 2020 Notes were redeemed at a redemption price equal to 101.969% of the principal amount thereof, plus accrued and unpaid interest to June 25, 2018, and the 2021 Notes were redeemed at a redemption price equal to 104.750% of the principal amount thereof, plus accrued and unpaid interest to June 25, 2018. Exchangeable Notes On June 1, 2010, Aleris International issued $45.0 aggregate principal amount of 6.0% senior subordinated exchangeable notes (the “Exchangeable Notes”). The Exchangeable Notes are scheduled to mature on June 1, 2020. The Exchangeable Notes have exchange rights at the holder’s option and are exchangeable at any time for our common stock at a rate equivalent to 60.58 shares of our common stock per $1,000 principal amount of the Exchangeable Notes (after adjustment for the payments of cash dividends in 2011 and 2013), subject to further adjustment. The Exchangeable Notes may currently be redeemed at Aleris International’s option at specified redemption prices. The Exchangeable Notes are the unsecured, senior subordinated obligations of Aleris International and rank (i) junior to all of its existing and future senior indebtedness, including the ABL Facility, the Term Loan Facility and the 2023 Junior Priority Notes; (ii) equally to all of its existing and future senior subordinated indebtedness; and (iii) senior to all of its existing and future subordinated indebtedness. China Loan Facility Aleris Aluminum (Zhenjiang) Co., Ltd. (“Aleris Zhenjiang”) maintains a loan agreement comprised of non-recourse multi-currency secured term loan facilities and a revolving facility (collectively, as amended and supplemented from time to time the “China Loan Facility”). The China Loan Facility consists of a $30.6 U.S. dollar term loan facility, an RMB 873.8 million (or equivalent to approximately $127.1 as of December 31, 2018 ) term loan facility (collectively referred to as the “Zhenjiang Term Loans”) and an RMB 410.0 million (or equivalent to approximately $59.6 as of December 31, 2018 ) revolving facility (referred to as the “Zhenjiang Revolver”). The Zhenjiang Revolver has certain restrictions that have limited our ability to borrow funds on the Zhenjiang Revolver and will continue to limit our ability to borrow funds in the future. Although the final maturity date for all borrowings under the Zhenjiang Revolver is May 18, 2021, all amounts outstanding under the Zhenjiang Revolver were repaid in 2017. The interest rate on the U.S. dollar term facility is six month U.S. dollar LIBOR plus 5.0% and the interest rate on the RMB term facility and the Zhenjiang Revolver is 110% of the base rate applicable to any loan denominated in RMB of the same tenor, as announced by the People’s Bank of China. As of December 31, 2018 and 2017 , $157.6 and $170.3 , respectively, was outstanding on the Zhenjiang Term Loans and the final maturity date for all borrowings is May 16, 2024. The repayment of borrowings under the Zhenjiang Term Loans is due semi-annually. The initial repayment began in 2016. According to the amended repayment schedule, the semi-annual repayment in 2019 will be RMB 23.9 million (or equivalent to approximately $3.5 at December 31, 2018 ) and will increase to RMB 247.3 million by 2024 (or equivalent to approximately $36.0 at December 31, 2018 ). The China Loan Facility contains certain customary covenants and events of default. The China Loan Facility requires Aleris Zhenjiang to, among other things, maintain a certain ratio of outstanding term loans to invested equity capital. In addition, among other things and subject to certain exceptions, Aleris Zhenjiang is restricted in its ability to: ▪ repay loans extended by the shareholder of Aleris Zhenjiang prior to repaying loans under the China Loan Facility or make the China Loan Facility junior to any other debts incurred of the same class for the project; ▪ distribute any dividend or bonus to the shareholder of Aleris Zhenjiang before fully repaying the loans under the China Loan Facility; ▪ dispose of any assets in a manner that will materially impair its ability to repay debts; ▪ provide guarantees to third parties above a certain threshold that use assets that are financed by the China Loan Facility; ▪ permit any individual investor or key management personnel changes that result in a material adverse effect; ▪ use any proceeds from the China Loan Facility for any purpose other than as set forth therein; and ▪ enter into additional financing to expand or increase the production capacity of the project. Aleris Zhenjiang was in compliance with all of the covenants set forth in the China Loan Facility as of December 31, 2018 . Aleris Zhenjiang has had delays in its ability to make timely draws of amounts committed under the China Loan Facility in the past and we cannot be certain that Aleris Zhenjiang will be able to draw any amounts committed under the Zhenjiang Revolver in the future or as to the timing or cost of any such draws. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Defined Contribution Pension Plans The Company’s defined contribution plans cover substantially all U.S. employees not covered under collective bargaining agreements and certain employees covered by collective bargaining agreements. The plans provide both profit sharing and employer matching contributions as well as an age and salary based contribution. Our match of employees’ contributions under our defined contribution plans and supplemental employer contributions for the years ended December 31, 2018 , 2017 and 2016 were as follows: For the years ended December 31, 2018 2017 2016 Company match of employee contributions $ 5.9 $ 5.4 $ 5.2 Supplemental employer contributions 1.5 1.3 1.3 Defined Benefit Pension Plans Our U.S. defined benefit pension plans cover certain salaried and non-salaried employees at our corporate headquarters and within our North America segment. The plan benefits are based on age, years of service and employees’ eligible compensation during employment for all employees not covered under a collective bargaining agreement and on stated amounts based on job grade and years of service prior to retirement for non-salaried employees covered under a collective bargaining agreement. Our non-U.S. subsidiaries sponsor various defined benefit pension plans for their employees. These plans are based on final pay and service, but some senior officers are entitled to receive enhanced pension benefits. Benefit payments are typically financed, in part, by contributions to a relief fund which establishes a life insurance contract to secure future pension payments; however, the plans are substantially unfunded plans under local law. The unfunded accrued pension costs are typically covered under a pension insurance association under local law if we are unable to fulfill our obligations. The service cost component of net periodic benefit expense is included in “ Operating income (loss) ,” while all other components of net periodic benefit expense are included in “ Other (income) expense, net ” in the Consolidated Statements of Operations. The components of the net periodic benefit expense for the years ended December 31, 2018 , 2017 and 2016 are as follows: U.S. Pension Benefits For the years ended December 31, 2018 2017 2016 Service cost $ 4.5 $ 3.9 $ 3.7 Interest cost 5.8 5.8 6.0 Amortization of net loss 1.9 1.9 1.9 Amortization of prior service cost 0.2 0.2 0.2 Expected return on plan assets (10.3 ) (10.2 ) (10.0 ) Net periodic benefit cost $ 2.1 $ 1.6 $ 1.8 Non-U.S. Pension Benefits For the years ended December 31, 2018 2017 2016 Service cost $ 2.5 $ 2.5 $ 2.0 Interest cost 2.1 1.8 2.1 Amortization of net loss 2.7 3.0 1.6 Net periodic benefit cost $ 7.3 $ 7.3 $ 5.7 The changes in projected benefit obligations and plan assets during the years ended December 31, 2018 and 2017 are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits For the years ended December 31, For the years ended December 31, 2018 2017 2018 2017 Change in projected benefit obligations Projected benefit obligation at beginning of period $ 188.8 $ 180.6 $ 130.3 $ 118.9 Service cost 4.5 3.9 2.5 2.5 Interest cost 5.8 5.8 2.1 1.8 Actuarial (gain) loss (12.5 ) 11.2 (0.6 ) (3.7 ) Expenses paid (2.0 ) (1.8 ) — — Benefits paid (10.0 ) (10.9 ) (3.7 ) (4.2 ) Plan settlements — — (0.7 ) — Translation and other — — (4.2 ) 15.0 Projected benefit obligation at end of period $ 174.6 $ 188.8 $ 125.7 $ 130.3 Change in plan assets Fair value of plan assets at beginning of period $ 143.6 $ 136.1 $ 1.3 $ 1.3 Employer contributions 7.0 1.2 4.7 4.0 Actual return on plan assets (8.9 ) 19.0 — 0.1 Expenses paid (2.0 ) (1.8 ) — — Benefits paid (10.0 ) (10.9 ) (3.7 ) (4.2 ) Plan settlements — — (0.7 ) — Translation and other — — 1.5 0.1 Fair value of plan assets at end of period $ 129.7 $ 143.6 $ 3.1 $ 1.3 Net amount recognized $ (44.9 ) $ (45.2 ) $ (122.6 ) $ (129.0 ) The following table provides the amounts recognized in the Consolidated Balance Sheet as of December 31, 2018 and 2017 : U.S. Pension Benefits Non-U.S. Pension Benefits December 31, December 31, 2018 2017 2018 2017 Accrued liabilities $ — $ — $ (3.8 ) $ (4.0 ) Accrued pension benefits (44.9 ) (45.2 ) (118.8 ) (125.0 ) Net amount recognized $ (44.9 ) $ (45.2 ) $ (122.6 ) $ (129.0 ) Amounts recognized in accumulated other comprehensive loss (before tax) consist of: Net actuarial loss $ 42.6 $ 37.7 $ 39.5 $ 44.7 Net prior service cost 1.3 1.6 — — $ 43.9 $ 39.3 $ 39.5 $ 44.7 Amortization expected to be recognized during next fiscal year (before tax): Amortization of net actuarial loss $ (2.6 ) $ (2.4 ) Amortization of net prior service cost (0.2 ) — $ (2.8 ) $ (2.4 ) Additional Information Accumulated benefit obligation for all defined benefit pension plans $ 174.2 $ 188.4 $ 123.2 $ 127.3 For defined benefit pension plans with projected benefit obligations in excess of plan assets: Aggregate projected benefit obligation 174.6 188.9 124.7 130.4 Aggregate fair value of plan assets 129.8 143.7 2.0 1.4 For defined benefit pension plans with accumulated benefit obligations in excess of plan assets: Aggregate accumulated benefit obligation 174.2 188.4 120.5 126.1 Aggregate fair value of plan assets 129.8 143.7 — — Projected employer contributions for 2019 5.1 — Plan Assumptions. We are required to make assumptions regarding such variables as the expected long-term rate of return on plan assets and the discount rate applied to determine service cost and interest cost. Our objective in selecting a discount rate is to select the best estimate of the rate at which the benefit obligations could be effectively settled. In making this estimate, projected cash flows are developed and matched with a yield curve based on an appropriate universe of high-quality corporate bonds. We use an approach that discounts the individual expected cash flows underlying interest and service costs using the applicable spot rates derived from the yield curve used to determine the benefit obligation to the relevant projected cash flows. The use of this method provides a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows and the corresponding spot yield curve rates. Assumptions for long-term rates of return on plan assets are based upon historical returns, future expectations for returns for each asset class and the effect of periodic target asset allocation rebalancing. The results are adjusted for the payment of reasonable expenses of the plan from plan assets. We believe these assumptions are appropriate based upon the mix of the investments and the long-term nature of the plans’ investments. The weighted average assumptions used to determine benefit obligations are as follows: U.S. Pension Benefits As of December 31, 2018 2017 2016 Discount rate 4.2 % 3.5 % 4.0 % Non-U.S. Pension Benefits As of December 31, 2018 2017 2016 Discount rate 2.2 % 2.1 % 1.9 % Rate of compensation increases, if applicable 3.0 3.0 3.0 The weighted average assumptions used to determine the net periodic benefit cost for the years ended December 31, 2018 , 2017 and 2016 are as follows: U.S. Pension Benefits For the years ended December 31, 2018 2017 2016 Discount rates 3.2%-3.7% 3.3% - 4.4% 3.4% - 4.2% Expected return on plan assets 7.3 7.8 7.8 Non-U.S. Pension Benefits For the years ended December 31, 2018 2017 2016 Discount rates 1.6% - 2.3% 1.5% - 2.0% 2.6 % Expected return on plan assets 3.0 2.5 2.8 Rate of compensation increase 3.0 3.0 3.0 Plan Assets. The weighted average plan asset allocations at December 31, 2018 and 2017 and the target allocations are as follows: Percentage of Plan Assets 2018 2017 Target Allocation Cash 1 % 12 % — % Equity 49 44 55 Fixed income 36 30 35 Real estate 12 13 10 Other 2 1 — Total 100 % 100 % 100 % The principal objectives underlying the investment of the pension plans’ assets are to ensure that the Company can properly fund benefit obligations as they become due under a broad range of potential economic and financial scenarios, maximize the long-term investment return with an acceptable level of risk based on such obligations, and broadly diversify investments across and within the capital markets to protect asset values against adverse movements in any one market. The Company’s strategy balances the requirement to maximize returns using potentially higher return generating assets, such as equity securities, with the need to control the risk versus the benefit obligations with less volatile assets, such as fixed-income securities. Investment practices must comply with the requirements of ERISA and any other applicable laws and regulations. The use of derivative instruments is permitted where appropriate and necessary for achieving overall investment policy objectives. Currently, we do not use derivative instruments. The fair values of the Company’s pension plan assets at December 31, 2018 by asset class are as follows: Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Class: Fair Value (Level 1) (Level 2) (Level 3) Cash and Plan Receivables $ 1.1 $ 1.1 $ — $ — Registered Investment Companies: Large U.S. Equity 13.5 13.5 — — Small / Mid U.S. Equity 4.7 4.7 — — International Equity 11.8 11.8 — — Other 3.0 — 3.0 — Total assets in the fair value hierarchy 34.1 $ 31.1 $ 3.0 $ — Commingled and Limited Partnership Funds measured at NAV (a) : Hedged Equity 16.3 Core Real Estate 15.6 International Large Cap Equity 10.3 Core Fixed Income 47.4 Small Cap Value Equity 9.1 Total assets $ 132.8 (a) In accordance with ASC 820-10, certain investments that were measured at NAV (as defined below) (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the total pension plan assets. The fair values of the Company’s pension plan assets at December 31, 2017 by asset class are as follows: Fair Value Measurements at December 31, 2017 Using: Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Class: Fair Value (Level 1) (Level 2) (Level 3) Cash $ 17.2 $ 17.2 $ — $ — Registered Investment Companies: Large U.S. Equity 15.6 15.6 — — Small / Mid U.S. Equity 5.6 5.6 — — International Equity 13.2 13.2 — — Other 1.3 — 1.3 — Total assets in the fair value hierarchy 52.9 $ 51.6 $ 1.3 $ — Commingled and Limited Partnership Funds measured at NAV (a) : Hedged Equity 3.5 Core Real Estate 18.7 International Large Cap Equity 12.6 Core Fixed Income 44.2 Small Cap Value Equity 13.0 Total assets $ 144.9 (a) In accordance with ASC 820-10, certain investments that were measured at NAV (as defined below) (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the total pension plan assets. The following section describes the valuation methodologies used to measure the fair values of pension plan assets. There have been no changes in the methodologies used at December 31, 2018 and 2017 . ▪ Registered investment companies —These investments are valued at quoted prices from an active market which represents the net asset value of shares at year-end and are categorized within Level 1 of the fair value hierarchy. ▪ Commingled and limited partnership funds —These investments are valued at the net asset value (“NAV”) of units held or ownership interest in partners’ capital at year-end. NAV is determined by dividing the fair value of the fund’s net assets by its units outstanding at the valuation date. Partnership interests are also based on the net asset fair value at the valuation date. We may redeem the commingled fund and limited partnership investments at NAV in the near term. Each of the commingled funds and limited partnership investments are further described below: ▪ Hedged Equity —Hedged equity funds are primarily comprised of shares or units in other investment companies or trusts. Trading positions are valued in the investment funds at fair value. ▪ Core Real Estate —Core real estate funds are composed primarily of real estate investments owned directly or through partnership interests and mortgage loans on income-producing real estate. ▪ International Large Cap Equity —International large cap equity funds invest in equity securities of companies ordinarily located outside the U.S. and Canada. ▪ Core Fixed Income —Core fixed income funds primarily invest in fixed income securities. ▪ Small Cap Value Equity —Limited partnership invested primarily in equity securities of small capitalization companies. Plan Contributions. Our funding policy for funded pensions is to make annual contributions based on advice from our actuaries and the evaluation of our cash position, but not less than minimum statutory requirements. Contributions for unfunded plans were equal to benefit payments. Expected Future Benefit Payments . The following benefit payments for our pension plans, which reflect expected future service, as appropriate, are expected to be paid for the periods indicated: U.S. Non-U.S. Pension Benefits Pension Benefits 2019 $ 10.9 $ 3.8 2020 11.6 3.8 2021 11.7 3.9 2022 11.4 4.4 2023 11.7 3.9 2024 - 2028 56.2 21.6 Other Postretirement Benefit Plans We maintain health care and life insurance benefit plans covering certain corporate and North America segment employees. We accrue the cost of postretirement benefits within the covered employees’ active service periods. The financial status of the plans at December 31, 2018 and 2017 is as follows: For the years ended December 31, 2018 2017 Change in benefit obligations Benefit obligation at beginning of period $ 37.5 $ 37.6 Service cost 0.3 0.2 Interest cost 1.1 1.1 Benefits paid (4.4 ) (4.3 ) Employee contributions 1.0 1.2 Medicare subsidies received 0.2 0.2 Actuarial gain (3.2 ) (1.7 ) Other — 3.2 Benefit obligation at end of period $ 32.5 $ 37.5 Change in plan assets Fair value of plan assets at beginning of period $ — $ — Employer contributions 3.2 2.9 Employee contributions 1.0 1.2 Medicare subsidies received 0.2 0.2 Benefits paid (4.4 ) (4.3 ) Fair value of plan assets at end of period $ — $ — Net amount recognized $ (32.5 ) $ (37.5 ) The following table provides the amounts recognized in the Consolidated Balance Sheet as of December 31, 2018 and 2017 : December 31, 2018 2017 Accrued liabilities $ (2.9 ) $ (3.2 ) Accrued postretirement benefits (29.6 ) (34.3 ) Net amount recognized $ (32.5 ) $ (37.5 ) Amounts recognized in accumulated other comprehensive loss (before tax) consist of: Net actuarial gain $ (5.4 ) $ (3.0 ) Net prior service cost 3.0 3.2 $ (2.4 ) $ 0.2 Amortization expected to be recognized during next fiscal year (before tax): Amortization of net actuarial gain $ 1.0 Amortization of prior service cost (0.2 ) $ 0.8 The service cost component of net periodic benefit expense is included in “ Operating income (loss) ,” while all other components of net periodic benefit expense are included in “ Other (income) expense, net ” in the Consolidated Statements of Operations. The components of net postretirement benefit expense for the years ended December 31, 2018 , 2017 and 2016 are as follows: For the years ended December 31, 2018 2017 2016 Service cost $ 0.3 $ 0.2 $ 0.2 Interest cost 1.1 1.1 1.3 Amortization of prior service credit 0.2 — — Amortization of net (gain) loss (0.7 ) (0.5 ) (0.1 ) Net postretirement benefit expense $ 0.9 $ 0.8 $ 1.4 Plan Assumptions. We are required to make an assumption regarding the discount rate applied to determine service cost and interest cost. Our objective in selecting a discount rate is to select the best estimate of the rate at which the benefit obligations could be effectively settled. In making this estimate, projected cash flows are developed and are then matched with a yield curve based on an appropriate universe of high-quality corporate bonds. We use an approach that discounts the individual expected cash flows underlying interest and service costs using the applicable spot rates derived from the yield curve used to determine the benefit obligation to the relevant projected cash flows. The weighted average assumptions used to determine net postretirement benefit expense and benefit obligations are as follows: For the years ended December 31, 2018 2017 2016 Discount rates 3.0% - 3.7% 3.1% - 4.3% 3.1% - 4.3% Discount rate used to determine end of period benefit obligations 4.1 % 3.4 % 3.8 % Health care cost trend rate assumed for next year 6.9 % 7.4 % 7.8 % Ultimate trend rate 4.5 % 4.5 % 4.5 % Year rate reaches ultimate trend rate 2037 2037 2037 Assumed health care cost trend rates have an effect on the amounts reported for postretirement benefit plans. A one-percentage change in assumed health care cost trend rates would have the following effects: 1% increase 1% decrease Effect on total service and interest components $ 0.1 $ (0.1 ) Effect on postretirement benefit obligations 1.5 (1.3 ) Plan Contributions. Our policy for the plan is to make contributions equal to the benefits paid during the year. Expected Future Benefit Payments . The following benefit payments are expected to be paid for the periods indicated: Gross Benefit Payment Net of Medicare Part D Subsidy 2019 $ 3.1 $ 2.9 2020 2.9 2.9 2021 2.7 2.7 2022 2.6 2.6 2023 2.5 2.5 2024 - 2028 11.0 11.0 Early Retirement Plans Our Belgian and German subsidiaries sponsor various unfunded early retirement benefit plans. The obligations under these plans totaled $9.9 and $10.2 at December 31, 2018 and 2017 , respectively, of which $3.2 , the estimated payments under these plans for the year ending December 31, 2019 , was classified as a current liability at December 31, 2018 . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION On June 1, 2010, the Board of Directors of Aleris Corporation (the “Board”) approved the Aleris Corporation 2010 Equity Incentive Plan (as 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 senior management of the Company and other non-employee directors. All stock options granted have a life not to exceed ten years and vest over a period not to exceed four years. Shares of common stock are issued upon stock option exercises from available shares of common stock. 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 the ownership that results from the event. A summary of stock option activity for the year ended December 31, 2018 is as follows: Weighted Weighted average Weighted average remaining average exercise price contractual grant date Service-based options Options per option term in years fair value Outstanding at January 1, 2018 3,494,974 $ 20.92 $ 9.32 Forfeited (63,054 ) 20.17 9.06 Outstanding at December 31, 2018 3,431,920 $ 20.93 5.7 $ 9.32 Options exercisable at December 31, 2018 2,911,828 $ 21.63 5.2 $ 9.60 The range of exercise prices of options outstanding at December 31, 2018 was $16.78 - $38.45 . The term of the stock options granted during the year ended December 31, 2017 was calculated using the practical expedient provided in ASU 2016-09 that allows for the calculation of the term to be the midpoint between the requisite service period and the contractual term of the award. For stock options granted prior to 2017, we elected to use the simplified method to estimate the expected life of the stock options granted, as allowed by SEC SAB No. 107, and the continued acceptance of the simplified method indicated in SEC SAB No. 110, because we did not have historical stock option exercise experience, excluding former option holders who exercised options in connection with their termination of employment, which would have provided a reasonable basis upon which to estimate the expected life of the stock options. At December 31, 2018 , there was $8.5 of unrecognized compensation expense related to the stock options and restricted stock units. These amounts are expected to be recognized over a weighted-average period of 1.0 year. The Black-Scholes method was used to estimate the fair value of the stock options granted. Under this method, the estimate of fair value is affected by the assumptions included in the following table. Expected equity volatility was determined based on historical stock prices and implied and stated volatilities of our peer companies. Intrinsic value is measured using the fair value at the date of exercise less the applicable exercise price. The following table summarizes the significant assumptions used to determine the fair value of the stock options granted during the year ended December 31, 2017 . There were no stock options granted during the years ended December 31, 2018 and 2016 . For the year ended December 31, 2017 Weighted average expected option life in years 5.5 Weighted average grant date fair value $7.78 Risk-free interest rate 2.1 % Equity volatility factor 50 % Dividend yield — % Intrinsic value of options exercised N/A A summary of restricted stock units activity for the year ended December 31, 2018 is as follows: Weighted average grant date Restricted Stock Units Shares fair value Outstanding at January 1, 2018 597,658 $ 17.29 Vested (328,201 ) 17.53 Forfeited (9,406 ) 17.00 Outstanding at December 31, 2018 260,051 $ 17.00 The fair value of shares vested during the years ended December 31, 2018 , 2017 and 2016 was $5.8 , $8.2 and $2.7 , respectively. The weighted average grant date fair value of restricted stock units granted during both of the years ended December 31, 2017 and 2016 was $23.70 . There were no restricted stock units granted during the year ended December 31, 2018 . |
Derivative And Other Financial
Derivative And Other Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and Other Financial Instruments | DERIVATIVE AND OTHER FINANCIAL INSTRUMENTS We use forward contracts, options and swaps, 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 and interest rate 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. At December 31, 2018 , $0.2 of cash collateral was posted. No cash collateral was posted at 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 December 31, 2018 and 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 December 31, 2018 2017 Derivatives by Type Asset Liability Asset Liability Metal $ 52.3 $ (24.3 ) $ 33.5 $ (36.0 ) Energy 0.2 (1.6 ) 0.2 (0.1 ) Currency 0.4 (4.5 ) 1.6 (0.1 ) Interest Rate — (0.4 ) — — Total 52.9 (30.8 ) 35.3 (36.2 ) Effect of counterparty netting (23.5 ) 23.5 (27.2 ) 27.2 Effect of cash collateral — 0.2 — — Net derivatives as classified in the balance sheet $ 29.4 $ (7.1 ) $ 8.1 $ (9.0 ) The fair value of our derivative financial instruments at December 31, 2018 and 2017 are recorded on the Consolidated Balance Sheet as follows: December 31, Asset Derivatives Balance Sheet Location 2018 2017 Metal Prepaid expenses and other current assets $ 29.3 $ 2.2 Other long-term assets — 4.3 Energy Prepaid expenses and other current assets 0.1 0.1 Currency Prepaid expenses and other current assets — 0.8 Other long-term assets — 0.7 Total $ 29.4 $ 8.1 December 31, Liability Derivatives Balance Sheet Location 2018 2017 Metal Accrued liabilities $ — $ 9.0 Other long-term liabilities 1.2 — Energy Accrued liabilities 1.4 — Currency Accrued liabilities 3.0 — Other long-term liabilities 1.1 — Interest Rate Accrued liabilities 0.4 — Total $ 7.1 $ 9.0 With the exception of the interest rate derivative financial instruments (for which realized gains are included within “Interest expense, net” in the Consolidated Statements of Operations), 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 Operations. Realized (gains) losses on derivative financial instruments totaled the following during the years ended December 31, 2018 , 2017 and 2016 : For the years ended December 31, 2018 2017 2016 Metal $ (23.5 ) $ 47.3 $ 30.0 Energy (1.4 ) 1.0 0.2 Currency 0.6 (0.6 ) 0.8 Interest Rate 0.1 — — Total realized (gains) losses $ (24.2 ) $ 47.7 $ 31.0 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 are 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 LME closing price is less than the strike price of the put option. If the put option strike price is less than the LME closing price, no amount is paid and the option expires. As of December 31, 2018 , we had 0.2 million metric tons and 0.3 million metric tons of metal buy and 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 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 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 December 31, 2018 and 2017 , we had 4.6 trillion and 3.5 trillion of British thermal unit forward buy contracts, respectively. 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 December 31, 2018 , we had 4.3 million gallons of diesel fuel swap contracts. As of December 31, 2017 , we had 1.5 million diesel fuel swap contracts. 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 December 31, 2018 and 2017 , we had euro forward contracts covering a notional amount of €77.6 million and €100.8 million, respectively. Interest Rate Risk As a result of the completion of the New Financing discussed above, we are exposed to variable interest rate risk on the Term Loan Facility. We have entered into interest rate swaps to fix the LIBOR interest rate on $700.0 of the Term Loan Facility for the period of October 31, 2018 through June 28, 2019. 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 under ASC 820 using quoted market prices and significant other observable inputs. Fair value is defined 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 December 31, 2018 and 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 December 31, 2018 and 2017 are as follows: December 31, 2018 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 $ 108.6 $ 108.6 Level 1 $ 102.4 $ 102.4 Level 1 Restricted cash 7.0 7.0 Level 1 5.6 5.6 N/A ABL Facility 253.7 253.7 Level 2 319.3 319.3 Level 2 First Lien Term Loan 1,070.2 1,088.2 Level 1 — — N/A 10.75% Senior Secured Junior Priority Notes 392.5 410.1 Level 1 — — N/A Exchangeable Notes 44.6 60.7 Level 3 44.5 45.4 Level 3 7 7 / 8 % Senior Notes — — N/A 436.7 438.1 Level 1 9 ½ % Senior Secured Notes — — N/A 800.8 847.3 Level 1 Zhenjiang Term Loans 157.2 157.6 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 Term Loan Facility, the 2023 Junior Priority Notes and the Prior 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 2.6% and expected equity volatility of 60% . 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 and Zhenjiang Revolver 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 China Loan Facility. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES U.S. Tax Reform Impact On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into U.S. law. Some of the key tax provisions included the reduction of the corporate income tax rate from 35% to 21% effective January 1, 2018, the limitation on the deductibility of interest expense, the immediate expensing of qualified business assets, the transition of U.S. international taxation from a worldwide tax system to a territorial tax system, the changes to the deductibility of executive compensation and a provision referred to as global intangible low-taxed income (“GILTI”) that imposes a new tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. ASC 740, “Income Taxes” (“ASC 740”), requires us to recognize the effect of the tax law changes in the period of enactment. Also on December 22, 2017, SAB 118 was issued to address the application of U.S. 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, at December 31, 2017, we recognized the provisional effects of the enactment of the Tax Act for which measurement could be reasonably estimated. We continued to monitor certain aspects of the Tax Act and related regulatory guidance issued by the U.S. Treasury. Pursuant to SAB 118, adjustments to the provisional amounts recorded as of December 31, 2017 that were identified within a subsequent measurement period of up to one year from the enactment date are to be included as an adjustment to tax expense from continuing operations in the period the amounts are determined. As a result of the Tax Act, at December 31, 2017, we revalued our U.S. federal deferred tax assets and liabilities to the new tax rate and recorded a provisional amount of $1.1 of income tax benefit for the remeasurement. At December 31, 2017, we expected the Company to be significantly impacted by the limitation on the tax deductibility of interest expense in the future, however, we expected to utilize our net operating losses to offset this impact, in effect, converting net operating loss deferred tax assets into interest limitation deferred tax assets still subject to a full valuation allowance. We did not expect to be subject to any transition tax from our foreign operations, and therefore did not recognize any provisional amount for the transition tax at December 31, 2017. Our accounting policy is to record Global Intangible Low-Taxed Income (“GILTI”) as a period cost if and when incurred. The Company has completed the analysis based on legislative updates relating to the Tax Act currently available which resulted in no significant adjustments in 2018 to the provisional effects of the enactment of the Tax Act recognized at December 31, 2017. The (loss) income before income taxes was as follows: For the years ended December 31, 2018 2017 2016 U.S. $ (147.2 ) $ (244.8 ) $ (145.3 ) International 74.1 70.8 113.0 Loss from continuing operations before income taxes (73.1 ) (174.0 ) (32.3 ) Income (loss) from discontinued operations before income taxes — 4.5 (3.3 ) Total loss before income taxes $ (73.1 ) $ (169.5 ) $ (35.6 ) The provision for income taxes, which reflects the application of the intraperiod tax allocation requirements of ASC 740-20, “Intraperiod Tax Allocation”, was as follows: For the years ended December 31, 2018 2017 2016 Current: Federal $ (0.1 ) $ (1.9 ) $ (0.1 ) State 0.1 — 0.3 International 16.5 10.7 18.3 16.5 8.8 18.5 Deferred: Federal (1.5 ) (1.6 ) 0.2 State (0.1 ) 0.1 0.1 International 3.6 33.1 21.2 2.0 31.6 21.5 Provision for income taxes of continuing operations 18.5 40.4 40.0 Provision for income taxes of discontinued operations — 0.7 — Total provision for income taxes $ 18.5 $ 41.1 $ 40.0 The income tax benefit of continuing operations, computed by applying the federal statutory tax rate to the loss from continuing operations before income taxes, differed from the provision for income taxes of continuing operations as follows: For the years ended December 31, 2018 2017 2016 Income tax benefit at the federal statutory rate $ (15.4 ) $ (60.9 ) $ (11.3 ) Foreign income tax rate differential and permanent differences, net 16.5 (2.5 ) (3.0 ) State income taxes, net (4.4 ) (9.9 ) (2.8 ) Domestic permanent differences, net 0.3 0.6 0.8 Disallowed tax loss on property distribution 2.2 — — Tax on deemed dividend of foreign earnings, net of foreign tax credit 16.9 10.5 28.5 Change in uncertain tax position — 1.2 0.2 Effect of statutory rate changes 1.0 99.1 — SAB 118 adjustment at 35% (1.8 ) 1.8 — Change in valuation allowance - excluding rate change 3.7 86.2 28.8 Change in valuation allowance - rate change — (86.8 ) — Other, net (0.5 ) 1.1 (1.2 ) Provision for income taxes of continuing operations $ 18.5 $ 40.4 $ 40.0 The unfavorable foreign income tax rate differential in 2018 resulted primarily from the mix of income and tax rates in non-U.S. tax jurisdictions. The favorable foreign income tax rate differential in 2017 resulted primarily from the mix of income and tax rates in non-U.S. tax jurisdictions. The favorable foreign income tax rate differential in 2016 resulted primarily from notional interest deductions of certain foreign entities and the mix of income and tax rates in non-U.S. tax jurisdictions. The unfavorable effect of rate changes in 2017 of $99.1 was comprised of a $85.7 unfavorable effect resulting from the remeasurement of U.S. federal net deferred assets due to the reduction to the federal income tax rate from 35% to 21% enacted by the Tax Act and a $13.4 unfavorable effect resulting from the remeasurement of net deferred tax assets in non-U.S. jurisdictions due to reductions in the corporate income tax rates in those non-U.S. jurisdictions. The favorable effect of the change in valuation allowance rate change in 2017 of $86.8 resulted from the remeasurement of U.S. federal valuation allowances established against the U.S. federal net deferred assets due to the reduction to the federal income tax rate. The net effect of rate changes in 2017 was an unfavorable $12.3 , of which a favorable $1.1 related to the U.S. federal and an unfavorable $13.4 related to non-U.S. jurisdictions. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax liabilities and assets are as follows: December 31, 2018 2017 Deferred Tax Liabilities Property, plant and equipment and intangible assets $ 84.4 $ 84.5 Undistributed foreign earnings — 1.3 Other 23.7 15.4 Total deferred tax liabilities 108.1 101.2 Deferred Tax Assets Net operating loss carryforwards 254.7 274.6 Interest expense carryforwards 35.1 9.2 Property, plant and equipment and intangible assets 35.0 44.5 Deferred revenue 17.9 5.9 Accrued pension benefits 32.2 33.5 Accrued liabilities 17.1 20.8 Other 32.5 37.0 424.5 425.5 Valuation allowance (257.1 ) (257.6 ) Total deferred tax assets 167.4 167.9 Net deferred tax assets $ 59.3 $ 66.7 At December 31, 2018 and 2017 , we had valuation allowances recorded against deferred tax assets of continuing operations of $257.1 and $257.6 , respectively, to reduce certain deferred tax assets to amounts that are more likely than not to be realized. Of the total December 31, 2018 and 2017 valuation allowances, $65.7 and $83.9 , respectively, relate primarily to net operating losses in non-U.S. tax jurisdictions, $154.1 and $141.0 , respectively, relate primarily to the U.S. federal effects of net operating losses, interest expense carryforwards and amortization in 2018 and net operating losses and amortization in 2017 and $37.3 and $32.7 , respectively, relate primarily to the state effects of net operating losses, interest expense carryforwards and amortization in 2018 and net operating losses and amortization in 2017. The net decrease in the valuation allowance is attributable to a decrease in non-U.S. jurisdictions resulting primarily from the reduction of net operating loss carryforwards due to expiration and audit adjustment and an increase in the U.S. resulting primarily from the interest expense carryforwards arising from the Tax Act. We will maintain valuation allowances against our net deferred tax assets in the U.S. and other applicable jurisdictions until objective positive evidence exists to reduce or eliminate the valuation allowance. The following table summarizes the change in the valuation allowances: For the years ended December 31, 2018 2017 2016 Balance at beginning of the period $ 257.6 $ 244.9 $ 218.5 Additions recorded in the provision for income taxes - excluding rate change 3.7 86.2 30.3 Reversals recorded in the provision for income taxes - rate change — (86.8 ) — Accumulated other comprehensive income (loss) 0.5 0.6 (0.5 ) Currency translation (4.7 ) 5.3 (3.4 ) Retained earnings — 7.4 — Balance at end of the period $ 257.1 $ 257.6 $ 244.9 At December 31, 2018 , we had approximately $332.6 of unused net operating loss carryforwards associated with non-U.S. tax jurisdictions, of which $172.9 can be carried forward indefinitely. The non-U.S. net operating loss carryforwards will begin to expire in 2019. In addition, we had $18.0 of unused capital loss carryforwards associated with non-U.S. tax jurisdictions, which can be carried forward indefinitely but can only be offset against capital gains. At December 31, 2018 , the U.S. federal net operating loss carryforward was $651.2 . The tax benefits associated with state net operating loss carryforwards at December 31, 2018 were $29.1 . At December 31, 2018 we had no undistributed earnings to the U.S. in our non-U.S. investments. Aleris Corporation and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and various state and foreign jurisdictions. The following table summarizes the change in uncertain tax positions, all of which are recorded in continuing operations: For the years ended December 31, 2018 2017 2016 Balance at beginning of the period $ 4.2 $ 2.5 $ 2.4 Additions for tax positions of prior years — 1.3 0.1 Reductions for tax positions of prior years (0.3 ) (0.2 ) — Additions for tax positions of current year — 0.6 — Balance at end of period $ 3.9 $ 4.2 $ 2.5 $3.0 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 Operations. Interest of $0.9 and $0.8 was accrued on the uncertain tax positions as of December 31, 2018 and 2017 , respectively. Total interest of $0.2 was recognized as part of the provision for income taxes for each of the years ended December 31, 2018 , 2017 and 2016 . Accrued penalties are not significant. The 2009 through 2017 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 tax years ended December 31, 2012, 2011, 2010 and 2009. Subsequent to the reporting date, the non-U.S. taxing jurisdiction proposed certain significant adjustments to the Company’s transfer pricing tax position. Management is currently evaluating those proposed adjustments, but if accepted, the Company does not anticipate the adjustments would result in a material change to its financial position. However, the Company anticipates that it is reasonably possible that an additional expense in the range of €3.0 to €4.7 (or equivalent to approximately $3.4 to $5.4 at December 31, 2018) will be recorded in the first quarter of 2019. The tax audit is anticipated to be completed within three months of the reporting date. During the third quarter of 2018, the same jurisdiction notified us regarding an examination of our tax returns for the tax years ended December 31, 2016, 2015, 2014 and 2013. During the second quarter of 2018, another non-U.S. taxing jurisdiction completed an examination of our tax return for tax year ended December 31, 2015, which it commenced during the second quarter of 2017. The results of the examination did not impact the financial position, results of operations or cash flows for 2018. During the third quarter of 2018, a non-U.S. taxing jurisdiction notified us regarding an examination of our tax returns for the tax years ended December 31, 2016, 2015, 2014 and 2013 that is anticipated to be completed within six months of the reporting date During the first quarter of 2019, a non-U.S. taxing jurisdiction notified us regarding an examination of our tax returns for the tax years ended December 31, 2017 and 2016 that is anticipated to be completed within twelve months of the reporting date. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Operating Leases We lease various types of equipment and property, primarily office space at various locations and the equipment used in our operations. The future minimum lease payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year, which may also contain renewal options, as of December 31, 2018 , are as follows: 2019 2020 2021 2022 2023 Thereafter Operating leases $ 4.9 $ 4.3 $ 3.1 $ 1.3 $ 1.2 $ 0.8 Rental expense for the years ended December 31, 2018 , 2017 and 2016 was $9.9 , $10.1 and $9.9 , respectively. Purchase Obligations Our non-cancellable purchase obligations are principally for materials, such as metals and fluxes used in our manufacturing operations, natural gas and other services. Our purchase obligations are long-term agreements to purchase goods or services that are enforceable and legally binding on us that specify all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Purchase obligations include the pricing of anticipated metal purchases using contractual prices or, where pricing is dependent upon the prevailing LME metal prices at the time of delivery, market prices as of December 31, 2018 , as well as natural gas and electricity purchases using minimum contractual quantities and either contractual prices or prevailing rates. As a result of the variability in the pricing of many of our metals purchase obligations, actual amounts paid may vary from the amounts shown below. As of December 31, 2018 , amounts due under long-term non-cancellable purchase obligations are as follows: 2019 2020 2021 2022 2023 Thereafter Purchase obligations $ 218.0 $ 169.9 $ 150.2 $ 3.3 $ 2.3 $ 16.4 Amounts purchased under long-term purchase obligations during the years ended December 31, 2018 , 2017 and 2016 approximated previously projected amounts. Employees Approximately 64% of our U.S. employees and substantially all of our non-U.S. employees are covered by collective bargaining agreements. Environmental Proceedings Our operations are subject to environmental laws and regulations governing air emissions, wastewater discharges, the handling, disposal and remediation of hazardous substances and wastes and employee health and safety. These laws can impose joint and several liabilities 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 stated 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. The changes in our accruals for environmental liabilities are as follows: For the years ended December 31, 2018 2017 2016 Balance at the beginning of the period $ 22.1 $ 23.8 $ 26.2 Revisions and liabilities incurred 5.7 (0.1 ) (0.3 ) Payments (2.1 ) (2.0 ) (2.0 ) Translation and other charges (0.1 ) 0.4 (0.1 ) Balance at the end of the period $ 25.6 $ 22.1 $ 23.8 Our reserves for environmental remediation liabilities have been classified as “Other long-term liabilities” and “Accrued liabilities” in the Consolidated Balance Sheet, of which $11.9 and $10.2 , respectively, are subject to indemnification by third parties at December 31, 2018 and 2017 . These amounts are in addition to our asset retirement obligations discussed in Note 9, “Asset Retirement Obligations,” and 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. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | SEGMENT AND GEOGRAPHIC INFORMATION Our operating structure provides the appropriate focus on our global rolled products end-uses, including aerospace, automotive, building and construction, and commercial and defense plate and heat exchangers, as well as on our regionally-based products and customers. We report three operating segments, each of which is considered a reportable segment. The reportable segments are based on the organizational structure that is used by our chief operating decision maker to evaluate performance, make decisions on resource allocation and for which discrete financial information is available. Our operating segments are North America, Europe and Asia Pacific. North America Our North America segment consists of nine manufacturing facilities located throughout the United States that produce rolled aluminum and coated products for the building and construction, automotive, truck trailer, consumer durables, other general industrial and distribution end-uses. Substantially all of our North America segment’s products are manufactured to specific customer requirements, using continuous cast and direct-chill technologies that provide us with significant flexibility to produce a wide range of products. Specifically, those products are integrated into, among other applications, building products, cars, truck trailers, gutters, appliances and recreational vehicles. In connection with the autobody sheet (“ABS”) project at our Lewisport facility, the North America segment has been incurring labor, consulting and other expenses associated with start-up activities, including the design and development of new products and processes, the manufacture of commissioning and qualification products and the development of sales and marketing efforts necessary to enter into this new end-use. These start-up costs are not included in management’s definition of segment income, as defined below. Europe Our Europe segment consists of two world-class aluminum rolling mills, one in Germany and the other in Belgium, and an aluminum cast house in Germany, that produce aerospace plate and sheet, ABS, clad brazing sheet (clad aluminum material used for, among other applications, vehicle radiators and HVAC systems), heat-treated plate for engineered product applications and industrial coil and sheets. Substantially all of our Europe segment’s products are manufactured to specific customer requirements using direct-chill cast technologies that allow us to use and offer a variety of alloys and products for a number of technically demanding end-uses. Asia Pacific Our Asia Pacific segment consists of the Zhenjiang rolling mill that produces technically demanding and value-added plate products for the aerospace, semiconductor equipment, general engineering, distribution and other end-uses worldwide. Substantially all of our Asia Pacific segment’s products are manufactured to specific customer requirements using direct-chill cast technologies that allow us to use and offer a variety of alloys and products principally for aerospace and also for a number of other technically demanding end-uses. Measurement of Segment Income or Loss and Segment Assets The accounting policies of the reportable segments are the same as those described in Note 2, “Summary of Significant Accounting Policies.” Our measure of profitability for our operating segments is referred to as segment income and loss. Segment income and loss 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 global 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, 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, segment income and other financial information for each of our reportable segments: North Asia Intra-entity America Europe Pacific Revenues Total Year Ended December 31, 2018 Revenues to external customers $ 1,915.7 $ 1,382.2 $ 148.0 $ 3,445.9 Intra-entity revenues — 25.2 0.8 $ (26.0 ) — Total revenues 1,915.7 1,407.4 148.8 (26.0 ) 3,445.9 Segment income 196.0 129.8 23.6 349.4 Segment assets 1,460.0 736.4 340.2 2,536.6 Payments for property, plant and equipment 60.2 34.2 12.0 106.4 Year Ended December 31, 2017 Revenues to external customers $ 1,467.8 $ 1,272.6 $ 116.9 $ 2,857.3 Intra-entity revenues — 28.1 5.4 $ (33.5 ) — Total revenues 1,467.8 1,300.7 122.3 (33.5 ) 2,857.3 Segment income 88.0 127.4 15.0 230.4 Segment assets 1,309.9 738.4 371.4 2,419.7 Payments for property, plant and equipment 174.6 25.8 5.9 206.3 Year Ended December 31, 2016 Revenues to external customers $ 1,363.5 $ 1,206.0 $ 94.4 $ 2,663.9 Intra-entity revenues 1.6 16.6 6.1 $ (24.3 ) — Total revenues 1,365.1 1,222.6 100.5 (24.3 ) 2,663.9 Segment income 86.1 149.4 10.8 246.3 Payments for property, plant and equipment 299.9 46.2 8.2 354.3 Reconciliations of total reportable segment disclosures to our consolidated financial statements are as follows: For the years ended December 31, 2018 2017 2016 Profits Total segment income $ 349.4 $ 230.4 $ 246.3 Unallocated amounts: Depreciation and amortization (139.7 ) (115.7 ) (104.9 ) Corporate general and administrative expenses, excluding depreciation, amortization and start-up costs (58.1 ) (56.3 ) (51.8 ) Restructuring charges (4.8 ) (2.9 ) (1.5 ) Interest expense, net (144.7 ) (124.1 ) (82.5 ) Unallocated gains on derivative financial instruments 22.6 3.1 19.1 Unallocated currency exchange losses (2.3 ) (2.5 ) (0.5 ) Start-up costs (55.0 ) (73.6 ) (46.0 ) Loss on extinguishment of debt (48.9 ) — (12.6 ) Other income (expense), net 8.4 (9.6 ) 2.1 Impairment of amounts held in escrow related to the sale of the recycling business — (22.8 ) — Loss from continuing operations before income taxes $ (73.1 ) $ (174.0 ) $ (32.3 ) Payments for property, plant and equipment Total payments for property, plant and equipment for reportable segments $ 106.4 $ 206.3 $ 354.3 Other payments for property, plant and equipment 1.8 1.4 3.8 Total consolidated payments for property, plant and equipment $ 108.2 $ 207.7 $ 358.1 Assets Total assets for reportable segments $ 2,536.6 $ 2,419.7 Unallocated assets 242.8 224.7 Total consolidated assets $ 2,779.4 $ 2,644.4 Geographic Information The following table sets forth the geographic breakout of our revenues (based on customer location) and long-lived tangible assets (net of accumulated depreciation and amortization): For the years ended December 31, 2018 2017 2016 Revenues United States $ 1,811.8 $ 1,399.5 $ 1,324.8 International: Asia 241.2 199.3 184.3 Germany 396.6 439.5 433.6 Other Europe 711.7 603.1 548.5 Mexico, Canada and South America 255.6 191.1 148.5 Other 29.0 24.8 24.2 Total international revenues 1,634.1 1,457.8 1,339.1 Consolidated revenues $ 3,445.9 $ 2,857.3 $ 2,663.9 December 31, 2018 2017 Long-lived tangible assets United States $ 864.8 $ 906.9 International: Asia 258.8 278.9 Europe 271.4 285.1 Total international 530.2 564.0 Consolidated total $ 1,395.0 $ 1,470.9 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the components of “ Accumulated other comprehensive loss ” in the Consolidated Balance Sheet, which are items that change equity during the reporting period, but are not included in earnings: Currency Pension and other Total translation postretirement Balance at January 1, 2016 $ (182.7 ) $ (118.7 ) $ (64.0 ) Current year currency translation adjustments (29.7 ) (32.2 ) 2.5 Recognition of net actuarial losses (19.7 ) — (19.7 ) Amortization of net actuarial losses and prior service cost 3.6 — 3.6 Deferred tax expense on pension and other postretirement liability adjustments 5.0 — 5.0 Balance at December 31, 2016 (223.5 ) (150.9 ) (72.6 ) Current year currency translation adjustments 82.0 86.7 (4.7 ) Recognition of net actuarial losses (2.0 ) — (2.0 ) Amortization of net actuarial losses and prior service cost 4.7 — 4.7 Deferred tax expense on pension and other postretirement liability adjustments (1.7 ) — (1.7 ) Balance at December 31, 2017 (140.5 ) (64.2 ) (76.3 ) Current year currency translation adjustments (27.3 ) (29.1 ) 1.8 Recognition of net actuarial losses (2.1 ) — (2.1 ) Amortization of net actuarial losses and prior service cost 4.3 — 4.3 Deferred tax expense on pension and other postretirement liability adjustments (1.4 ) — (1.4 ) Balance at December 31, 2018 $ (167.0 ) $ (93.3 ) $ (73.7 ) A summary of reclassifications out of accumulated other comprehensive loss for the year ended December 31, 2018 is provided below: Description of reclassifications out of accumulated other comprehensive loss Amount reclassified Amortization of net actuarial losses and prior service cost, before tax $ (4.3 ) (a) Deferred tax benefit on pension and other postretirement liability adjustments 0.8 Losses reclassified into earnings, net of tax $ (3.5 ) (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). |
Supplemental Information
Supplemental Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Information | SUPPLEMENTAL INFORMATION Supplemental cash flow information is as follows: For the years ended December 31, 2018 2017 2016 Cash payments for: Interest $ 135.4 $ 130.2 $ 100.9 Income taxes 15.4 8.5 29.5 Non-cash financing activity associated with lease contracts 5.8 5.5 3.6 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY The following table shows changes in the number of our outstanding shares of common stock: Outstanding common shares Balance at January 1, 2016 31,768,819 Issuance associated with options exercised 60,094 Issuance associated with vested restricted stock units 74,542 Issuance upon conversion of Aleris International preferred stock to common stock 795 Balance at December 31, 2016 31,904,250 Issuance associated with vested restricted stock units 97,068 Balance at December 31, 2017 32,001,318 Issuance associated with vested restricted stock units 382,967 Shares cancelled (3,418 ) Balance at December 31, 2018 32,380,867 Dividends Paid In connection with the 2015 sale of our former recycling and specification alloys business, we had a receivable, held in escrow, in the form of Real Industry Inc.’s Series B non-participating preferred stock. In 2017, Real Industry, Inc. filed for Chapter 11 bankruptcy protection, at which time we recorded an impairment charge of $22.8 to reduce the carrying value of the receivable to zero. In the second quarter of 2018, the bankruptcy reorganization was finalized, and we received shares Elah Holdings, Inc.’s (the reorganized company) common stock with an estimated fair value of $11.1 . The receipt of these shares, as well as additional net cash considerations, resulted in a gain of $12.2 that was recorded in “ Other (income) expense, net ” in the Consolidated Statements of Operations. Upon receipt of such common stock on May 22, 2018, we declared a special property dividend and these shares were distributed pro rata to our stockholders. In addition, dividend equivalent right payments of approximately $0.2 were paid in cash to holders of unvested restricted stock units. |
Potential Acquisition of Aleris
Potential Acquisition of Aleris Corporation | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Potential Acquisition of Aleris Corporation | POTENTIAL ACQUISITION OF ALERIS CORPORATION On July 26, 2018, we announced that we entered into a definitive agreement to be acquired by Novelis Inc., a subsidiary of Hindalco Industries Limited, for approximately $2,600.0 , including the assumption of the Company’s outstanding indebtedness (the “Merger”). The Merger is expected to close nine to fifteen months from the date of the definitive agreement, subject to customary regulatory approvals and closing conditions. There can be no assurance that the Merger will be consummated on the expected timing or at all. |
Condensed Consolidating Financi
Condensed Consolidating Financial Statements | 12 Months Ended |
Dec. 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 the Guarantor Subsidiaries are guarantors of the indebtedness under the 2023 Junior Priority 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 2023 Junior Priority 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 2023 Junior Priority Notes (the “Non-Guarantor Subsidiaries”). Aleris Corporation and the Guarantor Subsidiaries are also guarantors under the Term Loan Facility. The condensed consolidating balance sheets are presented as of December 31, 2018 and 2017 . The condensed consolidating statements of comprehensive (loss) income and cash flows are presented for the years ended December 31, 2018 , 2017 and 2016 . Aleris Corporation is a holding company and currently conducts its business and operations through its direct wholly owned subsidiary, Aleris International and its consolidated subsidiaries. Aleris Corporation has no operations of its own. The only material assets held by Aleris Corporation are its investment in Aleris International, and substantially all of its cash flows are provided by dividends paid or distributions made by Aleris International. The cash to pay dividends, if any, to our stockholders is derived from these cash flows. However, none of our subsidiaries are obligated to make funds available to us for payment of dividends to stockholders. Further, the credit agreements governing the ABL Facility and the Term Loan Facility and the indenture governing the 2023 Junior Priority Notes contain covenants limiting, subject to certain exceptions, the ability of Aleris International and its restricted subsidiaries to, among other things, pay dividends or distributions on capital stock. Dividend payments and distributions for purposes of paying dividends or making distributions to our stockholders are generally limited to certain predefined amounts and/or only permitted to the extent that Aleris International and its subsidiaries maintain certain financial ratios or liquidity measures after the payment of such dividend or distribution. 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 indenture governing the 2023 Junior Priority Notes; ▪ the release or discharge of a Guarantor Subsidiary from its guarantee under indebtedness that resulted in the obligation of the Guarantor Subsidiary under the indenture governing the 2023 Junior Priority Notes; and ▪ the requirements for legal defeasance or covenant defeasance or discharge of the indentures governing the 2023 Junior Priority Notes having been satisfied. As of December 31, 2018 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ — $ 32.5 $ — $ 76.8 $ (0.7 ) $ 108.6 Accounts receivable, net — — 133.5 175.3 — 308.8 Inventories — — 427.9 345.0 — 772.9 Prepaid expenses and other current assets — 3.3 12.0 47.4 — 62.7 Intercompany receivables — 628.1 333.6 17.5 (979.2 ) — Total Current Assets — 663.9 907.0 662.0 (979.9 ) 1,253.0 Property, plant and equipment, net — 0.9 860.9 533.2 — 1,395.0 Intangible assets, net — — 16.6 15.9 — 32.5 Deferred income taxes — — — 60.2 — 60.2 Other long-term assets — 8.0 3.9 26.8 — 38.7 Investments in subsidiaries 4.8 1,395.9 4.4 — (1,405.1 ) — Total Assets $ 4.8 $ 2,068.7 $ 1,792.8 $ 1,298.1 $ (2,385.0 ) $ 2,779.4 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable $ — $ 5.9 $ 199.4 $ 170.2 $ (0.7 ) $ 374.8 Accrued liabilities 54.0 64.1 80.0 — 198.1 Current portion of long-term debt — 11.0 1.0 9.9 — 21.9 Intercompany payables 31.9 308.0 589.2 50.1 (979.2 ) — Total Current Liabilities 31.9 378.9 853.7 310.2 (979.9 ) 594.8 Long-term debt — 1,681.4 0.5 224.5 — 1,906.4 Deferred revenue — — 65.0 — — 65.0 Deferred income taxes — — 0.1 0.8 — 0.9 Accrued pension benefits — — 44.9 118.8 — 163.7 Accrued postretirement benefits — — 29.6 — — 29.6 Other long-term liabilities — 3.6 14.9 27.6 — 46.1 Total Long-Term Liabilities — 1,685.0 155.0 371.7 — 2,211.7 Total Aleris Corporation Equity (27.1 ) 4.8 784.1 616.2 (1,405.1 ) (27.1 ) Total Liabilities and Equity $ 4.8 $ 2,068.7 $ 1,792.8 $ 1,298.1 $ (2,385.0 ) $ 2,779.4 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 Aleris Corporation 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 year ended December 31, 2018 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 1,915.6 $ 1,555.3 $ (25.0 ) $ 3,445.9 Cost of sales — — 1,813.4 1,372.3 (25.0 ) 3,160.7 Gross profit — — 102.2 183.0 — 285.2 Selling, general and administrative expenses 0.1 50.4 69.6 93.6 — 213.7 Restructuring charges — — 4.0 0.8 — 4.8 (Gains) losses on derivative financial instruments — — (48.4 ) 1.4 — (47.0 ) Other operating expense, net — — 3.5 — — 3.5 Operating (loss) income (0.1 ) (50.4 ) 73.5 87.2 — 110.2 Interest expense (income), net 3.6 (1.8 ) 114.0 28.9 — 144.7 Debt extinguishment costs — — 48.9 — — 48.9 Other expense (income), net 11.1 (50.6 ) 30.1 (0.9 ) — (10.3 ) Equity in net loss (earnings) of affiliates 76.8 78.6 (2.1 ) — (153.3 ) — (Loss) income before income taxes (91.6 ) (76.6 ) (117.4 ) 59.2 153.3 (73.1 ) Provision for (benefit from) income taxes — 0.2 (0.2 ) 18.5 — 18.5 Net (loss) income $ (91.6 ) $ (76.8 ) $ (117.2 ) $ 40.7 $ 153.3 $ (91.6 ) Comprehensive (loss) income $ (118.1 ) $ (103.3 ) $ (120.5 ) $ 17.5 $ 206.3 $ (118.1 ) For the year ended December 31, 2017 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 1,467.8 $ 1,417.5 $ (28.0 ) $ 2,857.3 Cost of sales — — 1,406.8 1,217.1 (28.0 ) 2,595.9 Gross profit — — 61.0 200.4 — 261.4 Selling, general and administrative expenses — 17.0 117.5 84.7 — 219.2 Restructuring charges — — 1.7 1.2 2.9 Losses on derivative financial instruments — — 42.9 1.8 — 44.7 Other operating expense, net — — 5.7 — — 5.7 Operating (loss) income — (17.0 ) (106.8 ) 112.7 — (11.1 ) Interest expense, net — — 95.3 28.8 — 124.1 Other expense, net — 3.2 8.4 27.2 — 38.8 Equity in net loss (earnings) of affiliates 210.6 194.8 (1.7 ) — (403.7 ) — (Loss) income before income taxes (210.6 ) (215.0 ) (208.8 ) 56.7 403.7 (174.0 ) (Benefit from) provision for income taxes — (0.6 ) (1.9 ) 42.9 — 40.4 (Loss) income from continuing operations (210.6 ) (214.4 ) (206.9 ) 13.8 403.7 (214.4 ) Income from discontinued operations, net of tax — 3.8 — — — 3.8 Net (loss) income $ (210.6 ) $ (210.6 ) $ (206.9 ) $ 13.8 $ 403.7 $ (210.6 ) Comprehensive (loss) income $ (127.6 ) $ (127.6 ) $ (205.3 ) $ 95.1 $ 237.8 $ (127.6 ) For the year ended December 31, 2016 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 1,364.8 $ 1,316.8 $ (17.7 ) $ 2,663.9 Cost of sales — — 1,277.0 1,114.9 (17.7 ) 2,374.2 Gross profit — — 87.8 201.9 — 289.7 Selling, general and administrative expenses — 2.0 135.9 79.6 — 217.5 Restructuring charges — — 0.4 1.1 — 1.5 Losses on derivative financial instruments — — 1.6 10.5 — 12.1 Other operating expense, net — — 3.3 0.6 — 3.9 Operating (loss) income — (2.0 ) (53.4 ) 110.1 — 54.7 Interest expense, net — — 51.5 31.0 — 82.5 Debt extinguishment costs — 12.6 — — — 12.6 Other (income) expense, net — (4.4 ) 12.1 (15.8 ) — (8.1 ) Equity in net loss (earnings) of affiliates 75.6 60.5 (0.8 ) — (135.3 ) — (Loss) income before income taxes (75.6 ) (70.7 ) (116.2 ) 94.9 135.3 (32.3 ) Provision for income taxes — 0.3 — 39.7 — 40.0 (Loss) income from continuing operations (75.6 ) (71.0 ) (116.2 ) 55.2 135.3 (72.3 ) (Loss) income from discontinued operations, net of tax — (4.6 ) — 1.3 — (3.3 ) Net (loss) income $ (75.6 ) $ (75.6 ) $ (116.2 ) $ 56.5 $ 135.3 $ (75.6 ) Comprehensive (loss) income $ (116.4 ) $ (116.4 ) $ (114.2 ) $ 13.8 $ 216.8 $ (116.4 ) For the year ended December 31, 2018 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided (used) by operating activities $ 2.3 $ (110.4 ) $ 53.4 $ 117.7 $ (40.7 ) $ 22.3 Investing activities Payments for property, plant and equipment — (0.7 ) (61.4 ) (46.1 ) — (108.2 ) Disbursements of intercompany loans — — — (25.4 ) 25.4 — Repayments from intercompany loans — — — 39.5 (39.5 ) — Equity contributions in subsidiaries — (23.2 ) (0.5 ) — 23.7 — Return of investments in subsidiaries — — 0.1 — (0.1 ) — Other — — (2.5 ) 0.5 — (2.0 ) Net cash used by investing activities — (23.9 ) (64.3 ) (31.5 ) 9.5 (110.2 ) Financing activities Proceeds from revolving credit facilities — 200.0 — 95.3 — 295.3 Payments on revolving credit facilities — (230.0 ) — (125.1 ) — (355.1 ) Proceeds from notes and term loans, net of discount — 1,483.0 — — — 1,483.0 Payments on notes and term loans, including premiums — (1,292.2 ) — — — (1,292.2 ) Payments on other long-term debt — — (1.1 ) (8.8 ) — (9.9 ) Debt issuance costs — (20.1 ) — (0.9 ) — (21.0 ) Proceeds from intercompany loans — 25.4 — — (25.4 ) — Repayments on intercompany loans — (39.5 ) — — 39.5 — Proceeds from intercompany equity contributions — — 13.7 10.0 (23.7 ) — Intercompany dividends paid — — (2.0 ) (40.2 ) 42.2 — Other (2.3 ) (0.1 ) 0.3 (0.3 ) — (2.4 ) Net cash (used) provided by financing activities (2.3 ) 126.5 10.9 (70.0 ) 32.6 97.7 Effect of exchange rate differences on cash and cash equivalents — — — (2.2 ) — (2.2 ) Net (decrease) increase in cash and cash equivalents — (7.8 ) — 14.0 1.4 7.6 Cash, cash equivalents and restricted cash at beginning of period — 40.3 — 69.8 (2.1 ) 108.0 Cash, cash equivalents and restricted cash at end of period $ — $ 32.5 $ — $ 83.8 $ (0.7 ) $ 115.6 Cash and cash equivalents $ — $ 32.5 $ — $ 76.8 $ (0.7 ) $ 108.6 Restricted cash (included in “Prepaid expenses and other current assets”) — — — 7.0 — 7.0 Cash, cash equivalents and restricted cash $ — $ 32.5 $ — $ 83.8 $ (0.7 ) $ 115.6 For the year ended December 31, 2017 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided (used) by operating activities $ 2.9 $ 505.7 $ (499.3 ) $ 121.5 $ (162.2 ) $ (31.4 ) Investing activities Payments for property, plant and equipment — — (175.9 ) (31.8 ) — (207.7 ) Disbursements of intercompany loans — — — (14.5 ) 14.5 — Repayments from intercompany loans — — — 135.0 (135.0 ) — Equity contributions in subsidiaries — (704.7 ) (1.0 ) — 705.7 — Return of investments in subsidiaries — 8.3 7.0 — (15.3 ) — Other — — (3.0 ) — — (3.0 ) Net cash (used) provided by investing activities — (696.4 ) (172.9 ) 88.7 569.9 (210.7 ) Financing activities Proceeds from revolving credit facilities — 270.0 — 305.1 — 575.1 Payments on revolving credit facilities — (185.0 ) — (351.3 ) — (536.3 ) Proceeds from senior secured notes, net of discount 263.8 — — — 263.8 Payments on other long-term debt — — (0.7 ) (5.7 ) — (6.4 ) Debt issuance costs (2.8 ) — — — (2.8 ) Proceeds from intercompany loans — 14.5 — — (14.5 ) — Repayments on intercompany loans — (135.0 ) — — 135.0 — Proceeds from intercompany equity contributions — — 680.5 25.2 (705.7 ) — Intercompany dividends paid — — (8.0 ) (170.6 ) 178.6 — Other (2.9 ) — 0.4 (0.4 ) — (2.9 ) Net cash (used) provided by financing activities (2.9 ) 225.5 672.2 (197.7 ) (406.6 ) 290.5 Effect of exchange rate differences on cash and cash equivalents — — — 4.0 — 4.0 Net increase in cash and cash equivalents — 34.8 — 16.5 1.1 52.4 Cash and cash equivalents at beginning of period — 5.5 — 53.3 (3.2 ) 55.6 Cash and cash equivalents at end of period $ — $ 40.3 $ — $ 69.8 $ (2.1 ) $ 108.0 Cash and cash equivalents $ — $ 40.3 $ — $ 64.2 $ (2.1 ) $ 102.4 Restricted cash (included in “Prepaid expenses and other current assets”) — — — 5.6 — 5.6 Cash, cash equivalents and restricted cash $ — $ 40.3 $ — $ 69.8 $ (2.1 ) $ 108.0 For the year ended December 31, 2016 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided (used) by operating activities $ 0.7 $ (340.2 ) $ 285.3 $ 70.4 $ (4.2 ) $ 12.0 Investing activities Payments for property, plant and equipment — — (301.8 ) (56.3 ) — (358.1 ) Proceeds from the sale of businesses, net of cash transferred — 5.0 — — — 5.0 Disbursements of intercompany loans — — — (135.0 ) 135.0 — Equity contributions in subsidiaries — (16.4 ) — — 16.4 — Return of investments in subsidiaries — — 1.8 — (1.8 ) — Other — — (1.7 ) 0.2 — (1.5 ) Net cash (used) provided by investing activities — (11.4 ) (301.7 ) (191.1 ) 149.6 (354.6 ) Financing activities Proceeds from revolving credit facilities — 235.0 — 125.4 — 360.4 Payments on revolving credit facilities — (105.0 ) — (2.0 ) — (107.0 ) Proceeds from senior secured notes, net of discount — 540.4 — — — 540.4 Payments on senior notes, including premiums — (443.8 ) — — — (443.8 ) Payments on other long-term debt — (0.5 ) (0.6 ) (6.2 ) — (7.3 ) Debt issuance costs — (4.0 ) — — — (4.0 ) Proceeds from intercompany loans — 135.0 — — (135.0 ) — Proceeds from intercompany equity contributions — — 16.4 — (16.4 ) — Intercompany dividends paid — — (0.3 ) (2.5 ) 2.8 — Other (0.7 ) — 0.9 (0.8 ) — (0.6 ) Net cash (used) provided by financing activities (0.7 ) 357.1 16.4 113.9 (148.6 ) 338.1 Effect of exchange rate differences on cash and cash equivalents — — — (2.1 ) — (2.1 ) Net increase (decrease) in cash and cash equivalents — 5.5 — (8.9 ) (3.2 ) (6.6 ) Cash and cash equivalents at beginning of period — — — 62.2 — 62.2 Cash and cash equivalents at end of period $ — $ 5.5 $ — $ 53.3 $ (3.2 ) $ 55.6 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation Aleris 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. The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). |
Use of Accounting Estimates | Use of Accounting Estimates The consolidated financial statements are prepared in conformity with GAAP and require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates are inherent in the valuations of derivatives, property, plant and equipment, intangible assets, the assumptions used to estimate the fair value of stock-based payments, pension and postretirement benefit obligations, workers’ compensation, medical and environmental liabilities, deferred tax asset valuation allowances, reserves for uncertain tax positions and allowances for uncollectible accounts receivable. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and our majority owned subsidiaries. All intercompany accounts and transactions have been eliminated upon consolidation. |
Cash Equivalents | Cash Equivalents All highly liquid investments with a maturity of three months or less when purchased are considered cash equivalents. The carrying amount of cash equivalents approximates fair value because of the short maturity of those instruments. |
Restricted Cash | Restricted Cash Cash that is reserved for a specific purpose and not available for general business use is considered restricted cash. Restricted cash is classified as either current or noncurrent assets depending on the date of availability or disbursement. |
Accounts Receivable Allowances and Credit Risk | Accounts Receivable Allowances and Credit Risk We extend credit to our customers based on an evaluation of their financial condition; generally, collateral is not required. Substantially all of the accounts receivable associated with our European operations and a portion of the accounts receivable associated with our China operations are insured against loss by third party credit insurers. We maintain an allowance against our accounts receivable for the estimated probable losses on uncollectible accounts. The valuation reserve is based upon our historical loss experience, current economic conditions within the industries we serve and our determination of the specific risk related to certain customers. Accounts receivable are charged off against the reserve when, in management’s estimation, further collection efforts would not result in a reasonable likelihood of receipt, or, if later, as proscribed by statutory regulations. |
Inventories | Inventories Our inventories are stated at the lower of cost or net realizable value. Cost is determined primarily on the average cost or specific identification method and includes material, labor and overhead related to the manufacturing process. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is stated at cost, net of asset impairments. The cost of property, plant and equipment acquired in business combinations represents the fair value of the acquired assets at the time of acquisition. The fair values of asset retirement obligations are capitalized to the related long-lived asset at the time the obligation is incurred and depreciated over the remaining useful life of the related asset. Major renewals and improvements that extend an asset’s useful life are capitalized to property, plant and equipment. Major repair and maintenance projects are expensed over periods not exceeding 18 months while normal maintenance and repairs are expensed as incurred. Depreciation is primarily computed using the straight-line method over the estimated useful lives of the related assets, as follows: Buildings and improvements 5 - 38 years Production equipment and machinery 2 - 25 years Office furniture, equipment and other 3 - 10 years Interest is capitalized in connection with major construction projects. |
Intangible Assets | Intangible Assets Intangible assets are primarily related to trade names, technology and customer relationships. Acquired intangible assets are recorded at their estimated fair value in the allocation of the purchase price paid. Intangible assets with indefinite useful lives are not amortized and intangible assets with finite useful lives are amortized over their estimated useful lives, ranging from 15 to 25 years. See Note 7, “Intangible Assets,” for additional information. |
Impairment of Property, Plant, Equipment and Finite-Lived Intangible Assets | Impairment of Property, Plant, Equipment and Finite-Lived Intangible Assets We review our long-lived assets for impairment when changes in circumstances indicate that the carrying amount may not be recoverable. Once an impairment indicator has been identified, the asset impairment test is a two-step process. The first step consists of determining whether the sum of the estimated undiscounted future cash flows attributable to the specific asset group being tested is less than its carrying value. Estimated future cash flows used to test for recoverability include only the future cash flows that are directly associated with and are expected to arise as a direct result of the use and eventual disposition of the relevant asset group. If the carrying value of the asset group exceeds the future undiscounted cash flows expected from the asset group, a second step is performed to compute the extent of the impairment. Impairment charges are determined as the amount by which the carrying value of the asset group exceeds the estimated fair value of the asset group. As outlined in ASC 820, “Fair Value Measurements and Disclosures” (“ASC 820”), the fair value measurement of our long-lived assets assumes the highest and best use of the asset by market participants, considering the use of the asset that is physically possible, legally permissible, and financially feasible at the measurement date. Highest and best use is determined based on the use of the asset by market participants, even if the intended use of the asset by the Company is different. The highest and best use of an asset establishes the valuation premise. The valuation premise is used to measure the fair value of an asset. ASC 820-10-35-10 states that the valuation premise of an asset is either of the following: ▪ In-use : The highest and best use of the asset is in-use if the asset would provide maximum value to market participants principally through its use in combination with other assets as a group (as installed or otherwise configured for use). ▪ In-exchange : The highest and best use of the asset is in-exchange if the asset would provide maximum value to market participants principally on a stand-alone basis. Once a premise is selected, the approaches considered in the estimation of the fair values of the Company’s long-lived assets tested for impairment, which represent level 3 measurements within the fair value hierarchy, include the income approach, sales comparison approach and the cost approach. |
Indefinite-Lived Intangible Assets | Indefinite-Lived Intangible Asset Our indefinite-lived intangible asset related to our trade name is tested for impairment as of October 1 of each year and may be tested more frequently if changes in circumstances or the occurrence of events indicates that a potential impairment exists. Under ASC 350, “Intangibles - Goodwill and Other,” intangible assets determined to have indefinite lives are not amortized, but are tested for impairment at least annually. As part of the annual impairment test, the non-amortized intangible asset is reviewed to determine if the indefinite status remains appropriate. |
Deferred Financing Costs | Deferred Financing Costs The costs related to the issuance of debt are capitalized and amortized over the terms of the related debt agreements as interest expense using the effective interest method. |
Revenue and Shipping and Handling Costs | Revenues Revenue is recognized when obligations under the terms of a contract with our customer are satisfied, which occurs at a point in time when control of the product transfers to the customer. See Note 3, “Revenue from Contracts with Customers,” for additional information. Shipping and Handling Costs Shipping and handling costs are included within “ Cost of sales ” in the Consolidated Statements of Operations. |
Research and Development | Research and Development Our research and development organization includes three locations in Europe, one location in the United States and one location in China, along with support staff focused on new product and alloy offerings and process performance technology. |
Stock-Based Compensation | Stock-Based Compensation We recognize compensation expense for stock options, restricted stock units and restricted shares under the provisions of ASC 718, “Compensation—Stock Compensation,” using the non-substantive vesting period approach, in which the expense is recognized ratably over the requisite service period based on the grant date fair value. The fair value of each stock option was estimated on the date of grant using a Black-Scholes option pricing model. Determining the fair value of stock options at the grant date requires judgment, including estimates for the average risk-free interest rate, dividend yield and volatility. Subsequent to the adoption of ASU 2016-09, “Compensation-Stock Compensation-Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”), forfeitures are recognized as they occur and the term of the awards are calculated using the practical expedient that allows for the calculation of the term to be the midpoint between the requisite service period and the contractual term of the award. The fair value of restricted stock units and restricted shares were based on the estimated fair value of our common stock on the date of grant. The fair value of our common stock was estimated based upon a present value technique using discounted cash flows, forecasted over a five-year period with residual growth rates thereafter, and a market comparable approach. From these two approaches, the discounted cash flow analysis was weighted at 50% and the comparable public company analysis was weighted at 50% . The discounted cash flow analysis was based on our projected financial information which includes a variety of estimates and assumptions. While we consider such estimates and assumptions reasonable, they are inherently subject to uncertainties and a wide variety of significant business, economic and competitive risks, many of which are beyond our control and may not materialize. Changes in these estimates and assumptions may have a significant effect on the determination of the fair value of our common stock. The discounted cash flow analysis was based on production volume projections developed by internal forecasts, as well as commercial, wage and benefit and inflation assumptions. The discounted cash flow analysis included the sum of (i) the present value of the projected unlevered cash flows for a five-year period (the “Projection Period”); and (ii) the present value of a terminal value, which represented the estimate of value attributable to periods beyond the Projection Period. To calculate the terminal value, a perpetuity growth rate approach is used. Other significant assumptions include future capital expenditures and changes in working capital requirements. The comparable public company analysis identified a group of comparable companies giving consideration to, among other relevant characteristics, similar lines of business, business risks, growth prospects, business maturity, market presence, leverage, size and scale of operations. The analysis compared the public market implied fair value for each comparable public company to its historical and projected revenues, and earnings before interest, taxes, depreciation and amortization (“EBITDA”). |
Derivatives and Hedging | Derivatives and Hedging We are engaged in activities that expose us to various market risks, including changes in the prices of primary aluminum, aluminum alloys, scrap aluminum, copper, zinc, natural gas and diesel, as well as changes in currency and interest rates. Certain of these financial exposures are managed as an integral part of our risk management program, which seeks to reduce the potentially adverse effects that the volatility of the markets may have on operating results. We do not hold or issue derivative financial instruments for trading purposes. Our metal pricing strategy is designed to minimize significant, unanticipated fluctuations in earnings caused by the volatility of aluminum prices. We also maintain a natural gas pricing strategy designed to minimize significant fluctuations in earnings caused by the volatility of natural gas prices. 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 all positions expected to settle in less than one year with these counterparties as a net current asset or liability and all long-term positions as a net long-term asset or liability. The fair values of our derivative financial instruments are recognized as assets or liabilities at the balance sheet date. Fair values for our metal and energy derivative instruments are determined based on the differences between contractual and forward rates of identical hedge positions as of the balance sheet date. Our currency and interest rate derivative instruments are valued using observable or market-corroborated inputs such as exchange rates, volatility and forward yield curves. In accordance with the requirements of ASC 820, we have included an estimate of the risk associated with non-performance by either ourselves or our counterparties in developing these fair values. See Note 13, “Derivative and Other Financial Instruments,” for additional information. The Company does not currently account for its derivative financial instruments as hedges. With the exception of our interest rate derivative instruments (for which realized gains are included within “Interest expense, net” in the Consolidated Statements of Operations) 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 Operations. All realized gains and losses are included within “ Net cash provided (used) by operating activities ” in the Consolidated Statements of Cash Flows. We are exposed to losses in the event of non-performance by counterparties to derivative contracts. Counterparties are evaluated for creditworthiness and a risk assessment is completed prior to our initiating contract activities. The counterparties’ creditworthiness is then monitored on an ongoing basis, and credit levels are reviewed to ensure there is not an inappropriate concentration of credit outstanding to any particular counterparty. |
Currency Translation | Currency Translation The majority of our international subsidiaries use the local currency as their functional currency. Individually significant transactions are translated at the applicable currency exchange rate on the date of the transaction. We translate all of the other amounts included in our Consolidated Statements of Operations from our international subsidiaries into U.S. dollars at average monthly exchange rates, which we believe are representative of the actual exchange rates on the dates of the transactions. Adjustments resulting from the translation of the assets and liabilities of our international operations into U.S. dollars at the balance sheet date exchange rates are reflected as a separate component of stockholders’ equity. Currency translation adjustments accumulate in consolidated equity until the disposition or liquidation of the international entities. Except for intercompany debt determined to be of a long-term investment nature, current intercompany accounts and transactional gains and losses associated with receivables, payables and debt denominated in currencies other than the functional currency are included within “ Other (income) expense, net ” in the Consolidated Statements of Operations. |
Income Taxes | Income Taxes We account for income taxes using the asset and liability method, whereby deferred income taxes reflect the tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. In valuing deferred tax assets, we use judgment in determining if it is more likely than not that some portion or all of a deferred tax asset will not be realized and the amount of the required valuation allowance. Tax benefits from uncertain tax positions are recognized in the financial statements when it is more likely than not that the position is sustainable, based solely on its technical merits and considerations of the relevant taxing authority, widely understood practices and precedents. We recognize interest and penalties related to uncertain tax positions within “ Provision for income taxes ” in the Consolidated Statements of Operations. |
Environmental and Asset Retirement Obligations | Environmental and Asset Retirement Obligations Environmental obligations that are not legal or contractual asset retirement obligations and that relate to existing conditions caused by past operations with no benefit to future operations are expensed while expenditures that extend the life, increase the capacity or improve the safety of an asset or that mitigate or prevent future environmental contamination are capitalized in property, plant and equipment. Obligations are recorded when their occurrence is probable and the associated costs can be reasonably estimated in accordance with ASC 410-30, “Environmental Obligations.” While our accruals are based on management’s current best estimate of the future costs of remedial action, these liabilities can change substantially due to factors such as the nature and extent of contamination, changes in the required remedial actions and technological advancements. Our existing environmental liabilities are not discounted to their present values as the amount and timing of the expenditures are not fixed or reliably determinable. Asset retirement obligations represent obligations associated with the retirement of tangible long-lived assets. Our asset retirement obligations relate primarily to the requirements related to the future removal of asbestos and underground storage tanks. The costs associated with such legal obligations are accounted for under the provisions of ASC 410-20, “Asset Retirement Obligations,” which requires that the fair value of a liability for an asset retirement obligation be recognized in the period in which it is incurred and capitalized as part of the carrying amount of the long-lived asset. These fair values are based upon the present value of the future cash flows expected to be incurred to satisfy the obligation. Determining the fair value of asset retirement obligations requires judgment, including estimates of the credit adjusted interest rate and estimates of future cash flows. Estimates of future cash flows are obtained primarily from engineering consulting firms. The present value of the obligations is accreted over time while the capitalized cost is depreciated over the useful life of the related asset. |
Retirement, Early Retirement and Postemployment Benefits | Retirement, Early Retirement and Postemployment Benefits Our defined benefit pension and other postretirement benefit plans are accounted for in accordance with ASC 715, “Compensation—Retirement Benefits.” Pension and postretirement benefit obligations are actuarially calculated using management’s best estimates of assumptions which include the expected return on plan assets (calculated using the fair value of plan assets), the rate at which plan liabilities may be effectively settled (discount rate), health care cost trend rates and rates of compensation increases. Net actuarial gains or losses are amortized to expense on a plan-by-plan basis when they exceed the accounting corridor, which is set at 10% of the greater of the plan assets or benefit obligations. Gains or losses outside of the corridor are subject to amortization over an average employee future service period that differs by plan. If substantially all of the plan’s participants are no longer actively accruing benefits, the average life expectancy is used. Benefits provided to employees after employment but prior to retirement are accounted for under ASC 712, “Compensation—Nonretirement Postemployment Benefits” (“ASC 712”). Such postemployment benefits include severance and medical continuation benefits that are offered pursuant to an ongoing benefit arrangement and do not represent a one-time benefit termination arrangement. Under ASC 712, liabilities for postemployment benefits are recorded at the time the obligations are probable of being incurred and can be reasonably estimated. This is typically at the time a triggering event occurs, such as the decision by management to close a facility. Benefits related to the relocation of employees and certain other termination benefits are accounted for under ASC 420, “Exit or Disposal Cost Obligations,” and are expensed over the required service period. |
Business Combinations | Business Combinations All business combinations are accounted for using the acquisition method as prescribed by ASC 805, “Business Combinations.” The purchase price paid is allocated to the assets acquired and liabilities assumed based on their estimated fair values. Any excess purchase price over the fair value of the net assets acquired is recorded as goodwill. |
General Guarantees and Indemnifications | General Guarantees and Indemnifications It is common in long-term processing agreements for us to agree to indemnify customers for tort liabilities that arise out of, or relate to, the processing of their material. Additionally, we typically indemnify such parties for certain environmental liabilities that arise out of or relate to the processing of their material. In our equipment financing agreements, we typically indemnify the financing parties, trustees acting on their behalf and other related parties against liabilities that arise from the manufacture, design, ownership, financing, use, operation and maintenance of the equipment and for tort liability, whether or not these liabilities arise out of or relate to the negligence of these indemnified parties, except for their gross negligence or willful misconduct. We expect that we would be covered by insurance (subject to deductibles) for most tort liabilities and related indemnities described above with respect to equipment we lease and material we process. Although we cannot estimate the potential amount of future payments under the foregoing indemnities and agreements, we are not aware of any events or actions that will require payment. |
New Accounting Pronouncements | New 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. For the year ended December 31, 2017 , $2.0 and $1.6 of pension and postretirement benefit expenses were reclassified from “Cost of sales” and “Selling, general and administrative expenses,” respectively, to “ Other (income) expense, net ” in the Consolidated Statements of Operations. For the year ended December 31, 2016 , $1.8 and $1.0 of pension and postretirement benefit expenses were reclassified from “Cost of sales” and “Selling, general and administrative expenses,” respectively, to “ Other (income) expense, net ” in the Consolidated Statements of Operations. 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. The Company adopted ASU 2016-02 on January 1, 2019 and has executed a project plan to guide the implementation of the standard. The project plan includes analyzing the Company’s purchasing contracts, drafting an updated accounting policy and evaluating new disclosure requirements. In addition, the Company is identifying and implementing appropriate changes to its business processes and controls to support the accounting and disclosure under the new guidance. We have adopted the standard using a modified retrospective approach, applying the standard’s transition provisions at the beginning of the period of adoption. ASU 2016-02 provides for certain practical expedients when adopting the guidance. The Company elected the package of practical expedients allowing us to not reassess whether any expired or existing contracts are, or contain, leases, the lease classification for any expired or existing leases or initial direct costs for any expired or existing leases. Upon adoption, we expect to record operating lease right-of-use assets in the range of approximately $10.0 to $15.0 , representing the present value of future lease payments under operating leases with terms of greater than twelve months. We also expect to record corresponding operating lease liabilities in the range of approximately and $11.0 to $16.0 . In addition, we expect the current capital lease balances of $10.4 , $4.0 and $6.2 reported in fixed assets, current maturities of long-term debt and long-term debt, respectively, will be reclassified into separately classified right-of-use asset and lease obligation accounts. We do not expect the adoption to impact retained earnings. 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, and has applied the standard to all contracts at that date. In evaluating the impact of the standard, management has concluded that control has transferred on certain 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 December 31, 2018 and our Consolidated Statement of Operations for the year ended December 31, 2018 is as follows: Increase (decrease) Consolidated Balance Sheet Accounts receivable $ 26.0 Inventories (22.8 ) Accrued liabilities 2.4 Consolidated Statement of Operations Revenues $ (2.0 ) Cost of goods sold (1.7 ) |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [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 December 31, 2018 and our Consolidated Statement of Operations for the year ended December 31, 2018 is as follows: Increase (decrease) Consolidated Balance Sheet Accounts receivable $ 26.0 Inventories (22.8 ) Accrued liabilities 2.4 Consolidated Statement of Operations Revenues $ (2.0 ) Cost of goods sold (1.7 ) |
Schedule of Accounts Receivable, Allowance for Bad Debt | The movement of the accounts receivable allowance is as follows: For the years ended December 31, 2018 2017 2016 Balance at beginning of the period $ 0.4 $ 0.3 $ 0.4 Expenses for uncollectible accounts, net of recoveries — 0.1 0.4 Receivables written off against the valuation reserve (0.3 ) — (0.5 ) Balance at end of the period $ 0.1 $ 0.4 $ 0.3 |
Property, Plant and Equipment | Depreciation is primarily computed using the straight-line method over the estimated useful lives of the related assets, as follows: Buildings and improvements 5 - 38 years Production equipment and machinery 2 - 25 years Office furniture, equipment and other 3 - 10 years The components of our consolidated property, plant and equipment are as follows: December 31, 2018 2017 Land $ 94.2 $ 93.6 Buildings and improvements 395.6 395.6 Production equipment and machinery 1,456.8 1,314.9 Office furniture and computer software and equipment 129.8 120.9 Construction work-in-progress 41.7 152.9 Property, plant and equipment 2,118.1 2,077.9 Accumulated depreciation (723.1 ) (607.0 ) Property, plant and equipment, net $ 1,395.0 $ 1,470.9 |
Schedule of Capitalized Interest Costs | Capitalized interest costs are as follows: For the years ended December 31, 2018 2017 2016 Capitalized interest $ 1.2 $ 8.4 $ 25.2 |
Revenue From Contracts with C_2
Revenue From Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table discloses the disaggregated revenue from our contracts with customers by major end-use: For the year ended December 31, 2018 North America Europe Asia Pacific Intra-entity sales Total Aerospace $ — $ 293.3 $ 85.1 $ — $ 378.4 Automotive 221.0 400.8 — (25.0 ) 596.8 Building and construction 834.6 — — — 834.6 Distribution 465.0 — 61.6 (0.8 ) 525.8 Heat exchanger — 263.9 — — 263.9 Regional plate and sheet — 397.5 — — 397.5 Truck trailer 194.0 — — — 194.0 Other 201.1 51.9 2.1 (0.2 ) 254.9 $ 1,915.7 $ 1,407.4 $ 148.8 $ (26.0 ) $ 3,445.9 |
Disaggregation of Revenue | The following table details the deferred revenue for which our performance obligations have not been satisfied: Total Deferred Revenue Deferred revenue at January 1, 2018 $ 21.4 (a) Payments received 78.0 Revenue recognized (18.8 ) Adoption of ASC 606 1.6 Currency and other (0.3 ) Deferred revenue at December 31, 2018 $ 81.9 (a) (a) Deferred revenue is included in “Accrued liabilities” and “Deferred revenue” on the Consolidated Balance Sheet. |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory, Net [Abstract] | |
Schedule of Inventory, Current | The components of our “Inventories” as of December 31, 2018 and 2017 are as follows: December 31, 2018 2017 Raw materials $ 283.8 $ 207.6 Work in process 284.5 210.8 Finished goods 169.1 181.6 Supplies 35.5 31.2 Total inventories $ 772.9 $ 631.2 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Depreciation is primarily computed using the straight-line method over the estimated useful lives of the related assets, as follows: Buildings and improvements 5 - 38 years Production equipment and machinery 2 - 25 years Office furniture, equipment and other 3 - 10 years The components of our consolidated property, plant and equipment are as follows: December 31, 2018 2017 Land $ 94.2 $ 93.6 Buildings and improvements 395.6 395.6 Production equipment and machinery 1,456.8 1,314.9 Office furniture and computer software and equipment 129.8 120.9 Construction work-in-progress 41.7 152.9 Property, plant and equipment 2,118.1 2,077.9 Accumulated depreciation (723.1 ) (607.0 ) Property, plant and equipment, net $ 1,395.0 $ 1,470.9 |
Schedule of Depreciation and Maintenance Expense | Our depreciation expense, including amortization of capital lease assets, and repair and maintenance expense was as follows: For the years ended December 31, 2018 2017 2016 Depreciation expense included within “Selling, general and administrative expenses” $ 9.5 $ 8.2 $ 9.5 Depreciation expense included within “Cost of sales” 128.1 105.4 93.2 Repair and maintenance expense included within “Loss from continuing operations” 105.0 95.5 93.1 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table details our intangible assets as of December 31, 2018 and 2017 : December 31, 2018 December 31, 2017 Gross Gross carrying Accumulated Net Average carrying Accumulated Net amount amortization amount life amount amortization amount Trade name $ 15.9 $ — $ 15.9 Indefinite $ 15.9 $ — $ 15.9 Technology 5.9 (2.1 ) 3.8 25 years 5.9 (1.8 ) 4.1 Customer relationships 28.3 (15.5 ) 12.8 15 years 28.3 (13.6 ) 14.7 Total $ 50.1 $ (17.6 ) $ 32.5 17 years $ 50.1 $ (15.4 ) $ 34.7 |
Schedule of Amortization Expense, Intangible Assets | The following table presents amortization expense, which has been classified within “Selling, general and administrative expenses” in the Consolidated Statements of Operations: For the years ended December 31, 2018 2017 2016 Amortization expense $ 2.1 $ 2.1 $ 2.1 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table presents estimated amortization expense for the next five years: 2019 $ 2.1 2020 2.1 2021 2.1 2022 2.1 2023 2.1 Total $ 10.5 |
Accrued and Other Long-Term L_2
Accrued and Other Long-Term Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities at December 31, 2018 and 2017 consisted of the following: December 31, 2018 2017 Employee-related costs $ 67.8 $ 64.7 Accrued interest 31.5 26.9 Accrued taxes 21.2 16.9 Accrued capital expenditures 20.4 42.6 Deferred revenue 16.8 3.0 Accrued professional fees 11.1 7.8 Derivative financial instruments 4.8 9.0 Other liabilities 24.5 26.5 Total accrued liabilities $ 198.1 $ 197.4 |
Schedule of Other long-term liabilities | Other long-term liabilities at December 31, 2018 and 2017 consisted of the following: December 31, 2018 2017 Accrued environmental and ARO liabilities $ 26.7 $ 24.3 Employee-related costs 14.6 18.2 Derivative financial instruments 2.4 — Other long-term liabilities 2.4 6.6 Total other long-term liabilities $ 46.1 $ 49.1 |
Asset Retirement Obligation (Ta
Asset Retirement Obligation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Asset Retirement Obligation [Abstract] | |
Schedule of Change in Asset Retirement Obligation | The changes in the carrying amount of asset retirement obligations for the years ended December 31, 2018 , 2017 and 2016 are as follows: For the years ended December 31, 2018 2017 2016 Balance at the beginning of the period $ 6.1 $ 4.7 $ 4.6 Revisions and liabilities incurred 1.0 1.2 — Accretion expense 0.1 0.1 0.1 Payments (0.3 ) — (0.1 ) Translation and other charges (0.1 ) 0.1 0.1 Balance at the end of the period $ 6.8 $ 6.1 $ 4.7 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Our debt is summarized as follows: December 31, 2018 2017 ABL Facility $ 253.7 $ 319.3 First Lien Term Loan due 2023, net of discount and deferred issuance costs of $24.3 at December 31, 2018 1,070.2 — 10.75% Senior Secured Junior Priority Notes due 2023, net of discount and deferred issuance costs of $7.5 at December 31, 2018 392.5 — 7 7/8% Senior Notes due 2020, net of discount and deferred issuance costs of $3.3 at December 31, 2017 — 436.7 9 1/2% Senior Secured Notes due 2021, inclusive of net premiums and deferred issuance costs of $0.8 at December 31, 2017 — 800.8 Exchangeable Notes, net of discount of $0.2 and $0.3 at December 31, 2018 and December 31, 2017, respectively 44.6 44.5 Zhenjiang Term Loans, net of discount of $0.4 and $0.5 at December 31, 2018 and December 31, 2017, respectively 157.2 169.8 Other 10.1 9.4 Total debt 1,928.3 1,780.5 Less: Current portion of long-term debt 21.9 9.1 Total long-term debt $ 1,906.4 $ 1,771.4 |
Schedule of Maturities of Long-term Debt | Scheduled maturities of our debt and capital leases subsequent to December 31, 2018 are as follows: Debt Capital leases 2019 $ 18.0 $ 4.1 2020 73.2 3.0 2021 37.2 1.5 2022 299.6 0.8 2023 1,485.4 0.5 After 2023 37.3 0.6 Total $ 1,950.7 $ 10.5 |
Employee Benefit Plans (Tables
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Company Match of Employee Contributions | Our match of employees’ contributions under our defined contribution plans and supplemental employer contributions for the years ended December 31, 2018 , 2017 and 2016 were as follows: For the years ended December 31, 2018 2017 2016 Company match of employee contributions $ 5.9 $ 5.4 $ 5.2 Supplemental employer contributions 1.5 1.3 1.3 |
Schedule of Net Benefit Costs | he components of the net periodic benefit expense for the years ended December 31, 2018 , 2017 and 2016 are as follows: U.S. Pension Benefits For the years ended December 31, 2018 2017 2016 Service cost $ 4.5 $ 3.9 $ 3.7 Interest cost 5.8 5.8 6.0 Amortization of net loss 1.9 1.9 1.9 Amortization of prior service cost 0.2 0.2 0.2 Expected return on plan assets (10.3 ) (10.2 ) (10.0 ) Net periodic benefit cost $ 2.1 $ 1.6 $ 1.8 Non-U.S. Pension Benefits For the years ended December 31, 2018 2017 2016 Service cost $ 2.5 $ 2.5 $ 2.0 Interest cost 2.1 1.8 2.1 Amortization of net loss 2.7 3.0 1.6 Net periodic benefit cost $ 7.3 $ 7.3 $ 5.7 The components of net postretirement benefit expense for the years ended December 31, 2018 , 2017 and 2016 are as follows: For the years ended December 31, 2018 2017 2016 Service cost $ 0.3 $ 0.2 $ 0.2 Interest cost 1.1 1.1 1.3 Amortization of prior service credit 0.2 — — Amortization of net (gain) loss (0.7 ) (0.5 ) (0.1 ) Net postretirement benefit expense $ 0.9 $ 0.8 $ 1.4 |
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | The financial status of the plans at December 31, 2018 and 2017 is as follows: For the years ended December 31, 2018 2017 Change in benefit obligations Benefit obligation at beginning of period $ 37.5 $ 37.6 Service cost 0.3 0.2 Interest cost 1.1 1.1 Benefits paid (4.4 ) (4.3 ) Employee contributions 1.0 1.2 Medicare subsidies received 0.2 0.2 Actuarial gain (3.2 ) (1.7 ) Other — 3.2 Benefit obligation at end of period $ 32.5 $ 37.5 Change in plan assets Fair value of plan assets at beginning of period $ — $ — Employer contributions 3.2 2.9 Employee contributions 1.0 1.2 Medicare subsidies received 0.2 0.2 Benefits paid (4.4 ) (4.3 ) Fair value of plan assets at end of period $ — $ — Net amount recognized $ (32.5 ) $ (37.5 ) The changes in projected benefit obligations and plan assets during the years ended December 31, 2018 and 2017 are as follows: U.S. Pension Benefits Non-U.S. Pension Benefits For the years ended December 31, For the years ended December 31, 2018 2017 2018 2017 Change in projected benefit obligations Projected benefit obligation at beginning of period $ 188.8 $ 180.6 $ 130.3 $ 118.9 Service cost 4.5 3.9 2.5 2.5 Interest cost 5.8 5.8 2.1 1.8 Actuarial (gain) loss (12.5 ) 11.2 (0.6 ) (3.7 ) Expenses paid (2.0 ) (1.8 ) — — Benefits paid (10.0 ) (10.9 ) (3.7 ) (4.2 ) Plan settlements — — (0.7 ) — Translation and other — — (4.2 ) 15.0 Projected benefit obligation at end of period $ 174.6 $ 188.8 $ 125.7 $ 130.3 Change in plan assets Fair value of plan assets at beginning of period $ 143.6 $ 136.1 $ 1.3 $ 1.3 Employer contributions 7.0 1.2 4.7 4.0 Actual return on plan assets (8.9 ) 19.0 — 0.1 Expenses paid (2.0 ) (1.8 ) — — Benefits paid (10.0 ) (10.9 ) (3.7 ) (4.2 ) Plan settlements — — (0.7 ) — Translation and other — — 1.5 0.1 Fair value of plan assets at end of period $ 129.7 $ 143.6 $ 3.1 $ 1.3 Net amount recognized $ (44.9 ) $ (45.2 ) $ (122.6 ) $ (129.0 ) |
Schedule of Amounts Recognized in Balance Sheet | The following table provides the amounts recognized in the Consolidated Balance Sheet as of December 31, 2018 and 2017 : U.S. Pension Benefits Non-U.S. Pension Benefits December 31, December 31, 2018 2017 2018 2017 Accrued liabilities $ — $ — $ (3.8 ) $ (4.0 ) Accrued pension benefits (44.9 ) (45.2 ) (118.8 ) (125.0 ) Net amount recognized $ (44.9 ) $ (45.2 ) $ (122.6 ) $ (129.0 ) Amounts recognized in accumulated other comprehensive loss (before tax) consist of: Net actuarial loss $ 42.6 $ 37.7 $ 39.5 $ 44.7 Net prior service cost 1.3 1.6 — — $ 43.9 $ 39.3 $ 39.5 $ 44.7 Amortization expected to be recognized during next fiscal year (before tax): Amortization of net actuarial loss $ (2.6 ) $ (2.4 ) Amortization of net prior service cost (0.2 ) — $ (2.8 ) $ (2.4 ) Additional Information Accumulated benefit obligation for all defined benefit pension plans $ 174.2 $ 188.4 $ 123.2 $ 127.3 For defined benefit pension plans with projected benefit obligations in excess of plan assets: Aggregate projected benefit obligation 174.6 188.9 124.7 130.4 Aggregate fair value of plan assets 129.8 143.7 2.0 1.4 For defined benefit pension plans with accumulated benefit obligations in excess of plan assets: Aggregate accumulated benefit obligation 174.2 188.4 120.5 126.1 Aggregate fair value of plan assets 129.8 143.7 — — Projected employer contributions for 2019 5.1 — The following table provides the amounts recognized in the Consolidated Balance Sheet as of December 31, 2018 and 2017 : December 31, 2018 2017 Accrued liabilities $ (2.9 ) $ (3.2 ) Accrued postretirement benefits (29.6 ) (34.3 ) Net amount recognized $ (32.5 ) $ (37.5 ) Amounts recognized in accumulated other comprehensive loss (before tax) consist of: Net actuarial gain $ (5.4 ) $ (3.0 ) Net prior service cost 3.0 3.2 $ (2.4 ) $ 0.2 Amortization expected to be recognized during next fiscal year (before tax): Amortization of net actuarial gain $ 1.0 Amortization of prior service cost (0.2 ) $ 0.8 |
Schedule of Assumptions Used | The weighted average assumptions used to determine net postretirement benefit expense and benefit obligations are as follows: For the years ended December 31, 2018 2017 2016 Discount rates 3.0% - 3.7% 3.1% - 4.3% 3.1% - 4.3% Discount rate used to determine end of period benefit obligations 4.1 % 3.4 % 3.8 % Health care cost trend rate assumed for next year 6.9 % 7.4 % 7.8 % Ultimate trend rate 4.5 % 4.5 % 4.5 % Year rate reaches ultimate trend rate 2037 2037 2037 The weighted average assumptions used to determine benefit obligations are as follows: U.S. Pension Benefits As of December 31, 2018 2017 2016 Discount rate 4.2 % 3.5 % 4.0 % Non-U.S. Pension Benefits As of December 31, 2018 2017 2016 Discount rate 2.2 % 2.1 % 1.9 % Rate of compensation increases, if applicable 3.0 3.0 3.0 The weighted average assumptions used to determine the net periodic benefit cost for the years ended December 31, 2018 , 2017 and 2016 are as follows: U.S. Pension Benefits For the years ended December 31, 2018 2017 2016 Discount rates 3.2%-3.7% 3.3% - 4.4% 3.4% - 4.2% Expected return on plan assets 7.3 7.8 7.8 Non-U.S. Pension Benefits For the years ended December 31, 2018 2017 2016 Discount rates 1.6% - 2.3% 1.5% - 2.0% 2.6 % Expected return on plan assets 3.0 2.5 2.8 Rate of compensation increase 3.0 3.0 3.0 |
Schedule of Allocation of Plan Assets | The weighted average plan asset allocations at December 31, 2018 and 2017 and the target allocations are as follows: Percentage of Plan Assets 2018 2017 Target Allocation Cash 1 % 12 % — % Equity 49 44 55 Fixed income 36 30 35 Real estate 12 13 10 Other 2 1 — Total 100 % 100 % 100 % |
Schedule of Defined Benefit Plans Disclosures | The fair values of the Company’s pension plan assets at December 31, 2018 by asset class are as follows: Fair Value Measurements at December 31, 2018 Using: Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Class: Fair Value (Level 1) (Level 2) (Level 3) Cash and Plan Receivables $ 1.1 $ 1.1 $ — $ — Registered Investment Companies: Large U.S. Equity 13.5 13.5 — — Small / Mid U.S. Equity 4.7 4.7 — — International Equity 11.8 11.8 — — Other 3.0 — 3.0 — Total assets in the fair value hierarchy 34.1 $ 31.1 $ 3.0 $ — Commingled and Limited Partnership Funds measured at NAV (a) : Hedged Equity 16.3 Core Real Estate 15.6 International Large Cap Equity 10.3 Core Fixed Income 47.4 Small Cap Value Equity 9.1 Total assets $ 132.8 (a) In accordance with ASC 820-10, certain investments that were measured at NAV (as defined below) (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the total pension plan assets. The fair values of the Company’s pension plan assets at December 31, 2017 by asset class are as follows: Fair Value Measurements at December 31, 2017 Using: Quoted Prices in Significant Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs Asset Class: Fair Value (Level 1) (Level 2) (Level 3) Cash $ 17.2 $ 17.2 $ — $ — Registered Investment Companies: Large U.S. Equity 15.6 15.6 — — Small / Mid U.S. Equity 5.6 5.6 — — International Equity 13.2 13.2 — — Other 1.3 — 1.3 — Total assets in the fair value hierarchy 52.9 $ 51.6 $ 1.3 $ — Commingled and Limited Partnership Funds measured at NAV (a) : Hedged Equity 3.5 Core Real Estate 18.7 International Large Cap Equity 12.6 Core Fixed Income 44.2 Small Cap Value Equity 13.0 Total assets $ 144.9 (a) In accordance with ASC 820-10, certain investments that were measured at NAV (as defined below) (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented in the table are intended to permit reconciliation of the fair value hierarchy to the total pension plan assets. |
Schedule of Expected Benefit Payments | The following benefit payments are expected to be paid for the periods indicated: Gross Benefit Payment Net of Medicare Part D Subsidy 2019 $ 3.1 $ 2.9 2020 2.9 2.9 2021 2.7 2.7 2022 2.6 2.6 2023 2.5 2.5 2024 - 2028 11.0 11.0 The following benefit payments for our pension plans, which reflect expected future service, as appropriate, are expected to be paid for the periods indicated: U.S. Non-U.S. Pension Benefits Pension Benefits 2019 $ 10.9 $ 3.8 2020 11.6 3.8 2021 11.7 3.9 2022 11.4 4.4 2023 11.7 3.9 2024 - 2028 56.2 21.6 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage change in assumed health care cost trend rates would have the following effects: 1% increase 1% decrease Effect on total service and interest components $ 0.1 $ (0.1 ) Effect on postretirement benefit obligations 1.5 (1.3 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | A summary of stock option activity for the year ended December 31, 2018 is as follows: Weighted Weighted average Weighted average remaining average exercise price contractual grant date Service-based options Options per option term in years fair value Outstanding at January 1, 2018 3,494,974 $ 20.92 $ 9.32 Forfeited (63,054 ) 20.17 9.06 Outstanding at December 31, 2018 3,431,920 $ 20.93 5.7 $ 9.32 Options exercisable at December 31, 2018 2,911,828 $ 21.63 5.2 $ 9.60 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the significant assumptions used to determine the fair value of the stock options granted during the year ended December 31, 2017 . There were no stock options granted during the years ended December 31, 2018 and 2016 . For the year ended December 31, 2017 Weighted average expected option life in years 5.5 Weighted average grant date fair value $7.78 Risk-free interest rate 2.1 % Equity volatility factor 50 % Dividend yield — % Intrinsic value of options exercised N/A |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of restricted stock units activity for the year ended December 31, 2018 is as follows: Weighted average grant date Restricted Stock Units Shares fair value Outstanding at January 1, 2018 597,658 $ 17.29 Vested (328,201 ) 17.53 Forfeited (9,406 ) 17.00 Outstanding at December 31, 2018 260,051 $ 17.00 |
Derivative And Other Financia_2
Derivative And Other Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of December 31, 2018 and 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 December 31, 2018 2017 Derivatives by Type Asset Liability Asset Liability Metal $ 52.3 $ (24.3 ) $ 33.5 $ (36.0 ) Energy 0.2 (1.6 ) 0.2 (0.1 ) Currency 0.4 (4.5 ) 1.6 (0.1 ) Interest Rate — (0.4 ) — — Total 52.9 (30.8 ) 35.3 (36.2 ) Effect of counterparty netting (23.5 ) 23.5 (27.2 ) 27.2 Effect of cash collateral — 0.2 — — Net derivatives as classified in the balance sheet $ 29.4 $ (7.1 ) $ 8.1 $ (9.0 ) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair value of our derivative financial instruments at December 31, 2018 and 2017 are recorded on the Consolidated Balance Sheet as follows: December 31, Asset Derivatives Balance Sheet Location 2018 2017 Metal Prepaid expenses and other current assets $ 29.3 $ 2.2 Other long-term assets — 4.3 Energy Prepaid expenses and other current assets 0.1 0.1 Currency Prepaid expenses and other current assets — 0.8 Other long-term assets — 0.7 Total $ 29.4 $ 8.1 December 31, Liability Derivatives Balance Sheet Location 2018 2017 Metal Accrued liabilities $ — $ 9.0 Other long-term liabilities 1.2 — Energy Accrued liabilities 1.4 — Currency Accrued liabilities 3.0 — Other long-term liabilities 1.1 — Interest Rate Accrued liabilities 0.4 — Total $ 7.1 $ 9.0 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Realized (gains) losses on derivative financial instruments totaled the following during the years ended December 31, 2018 , 2017 and 2016 : For the years ended December 31, 2018 2017 2016 Metal $ (23.5 ) $ 47.3 $ 30.0 Energy (1.4 ) 1.0 0.2 Currency 0.6 (0.6 ) 0.8 Interest Rate 0.1 — — Total realized (gains) losses $ (24.2 ) $ 47.7 $ 31.0 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The carrying amount, fair values and level in the fair value hierarchy of our other financial instruments at December 31, 2018 and 2017 are as follows: December 31, 2018 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 $ 108.6 $ 108.6 Level 1 $ 102.4 $ 102.4 Level 1 Restricted cash 7.0 7.0 Level 1 5.6 5.6 N/A ABL Facility 253.7 253.7 Level 2 319.3 319.3 Level 2 First Lien Term Loan 1,070.2 1,088.2 Level 1 — — N/A 10.75% Senior Secured Junior Priority Notes 392.5 410.1 Level 1 — — N/A Exchangeable Notes 44.6 60.7 Level 3 44.5 45.4 Level 3 7 7 / 8 % Senior Notes — — N/A 436.7 438.1 Level 1 9 ½ % Senior Secured Notes — — N/A 800.8 847.3 Level 1 Zhenjiang Term Loans 157.2 157.6 Level 3 169.8 170.3 Level 3 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | The (loss) income before income taxes was as follows: For the years ended December 31, 2018 2017 2016 U.S. $ (147.2 ) $ (244.8 ) $ (145.3 ) International 74.1 70.8 113.0 Loss from continuing operations before income taxes (73.1 ) (174.0 ) (32.3 ) Income (loss) from discontinued operations before income taxes — 4.5 (3.3 ) Total loss before income taxes $ (73.1 ) $ (169.5 ) $ (35.6 ) |
Schedule of Provision for Income Taxes | The provision for income taxes, which reflects the application of the intraperiod tax allocation requirements of ASC 740-20, “Intraperiod Tax Allocation”, was as follows: For the years ended December 31, 2018 2017 2016 Current: Federal $ (0.1 ) $ (1.9 ) $ (0.1 ) State 0.1 — 0.3 International 16.5 10.7 18.3 16.5 8.8 18.5 Deferred: Federal (1.5 ) (1.6 ) 0.2 State (0.1 ) 0.1 0.1 International 3.6 33.1 21.2 2.0 31.6 21.5 Provision for income taxes of continuing operations 18.5 40.4 40.0 Provision for income taxes of discontinued operations — 0.7 — Total provision for income taxes $ 18.5 $ 41.1 $ 40.0 |
Schedule of Income Tax Reconciliation | The income tax benefit of continuing operations, computed by applying the federal statutory tax rate to the loss from continuing operations before income taxes, differed from the provision for income taxes of continuing operations as follows: For the years ended December 31, 2018 2017 2016 Income tax benefit at the federal statutory rate $ (15.4 ) $ (60.9 ) $ (11.3 ) Foreign income tax rate differential and permanent differences, net 16.5 (2.5 ) (3.0 ) State income taxes, net (4.4 ) (9.9 ) (2.8 ) Domestic permanent differences, net 0.3 0.6 0.8 Disallowed tax loss on property distribution 2.2 — — Tax on deemed dividend of foreign earnings, net of foreign tax credit 16.9 10.5 28.5 Change in uncertain tax position — 1.2 0.2 Effect of statutory rate changes 1.0 99.1 — SAB 118 adjustment at 35% (1.8 ) 1.8 — Change in valuation allowance - excluding rate change 3.7 86.2 28.8 Change in valuation allowance - rate change — (86.8 ) — Other, net (0.5 ) 1.1 (1.2 ) Provision for income taxes of continuing operations $ 18.5 $ 40.4 $ 40.0 |
Schedule of Deferred Tax Assets and Liabilities | Significant components of our deferred tax liabilities and assets are as follows: December 31, 2018 2017 Deferred Tax Liabilities Property, plant and equipment and intangible assets $ 84.4 $ 84.5 Undistributed foreign earnings — 1.3 Other 23.7 15.4 Total deferred tax liabilities 108.1 101.2 Deferred Tax Assets Net operating loss carryforwards 254.7 274.6 Interest expense carryforwards 35.1 9.2 Property, plant and equipment and intangible assets 35.0 44.5 Deferred revenue 17.9 5.9 Accrued pension benefits 32.2 33.5 Accrued liabilities 17.1 20.8 Other 32.5 37.0 424.5 425.5 Valuation allowance (257.1 ) (257.6 ) Total deferred tax assets 167.4 167.9 Net deferred tax assets $ 59.3 $ 66.7 |
Summary of Valuation Allowance | The following table summarizes the change in the valuation allowances: For the years ended December 31, 2018 2017 2016 Balance at beginning of the period $ 257.6 $ 244.9 $ 218.5 Additions recorded in the provision for income taxes - excluding rate change 3.7 86.2 30.3 Reversals recorded in the provision for income taxes - rate change — (86.8 ) — Accumulated other comprehensive income (loss) 0.5 0.6 (0.5 ) Currency translation (4.7 ) 5.3 (3.4 ) Retained earnings — 7.4 — Balance at end of the period $ 257.1 $ 257.6 $ 244.9 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following table summarizes the change in uncertain tax positions, all of which are recorded in continuing operations: For the years ended December 31, 2018 2017 2016 Balance at beginning of the period $ 4.2 $ 2.5 $ 2.4 Additions for tax positions of prior years — 1.3 0.1 Reductions for tax positions of prior years (0.3 ) (0.2 ) — Additions for tax positions of current year — 0.6 — Balance at end of period $ 3.9 $ 4.2 $ 2.5 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year, which may also contain renewal options, as of December 31, 2018 , are as follows: 2019 2020 2021 2022 2023 Thereafter Operating leases $ 4.9 $ 4.3 $ 3.1 $ 1.3 $ 1.2 $ 0.8 |
Long-term Purchase Commitment | As of December 31, 2018 , amounts due under long-term non-cancellable purchase obligations are as follows: 2019 2020 2021 2022 2023 Thereafter Purchase obligations $ 218.0 $ 169.9 $ 150.2 $ 3.3 $ 2.3 $ 16.4 |
Schedule of Environmental Loss Contingencies | The changes in our accruals for environmental liabilities are as follows: For the years ended December 31, 2018 2017 2016 Balance at the beginning of the period $ 22.1 $ 23.8 $ 26.2 Revisions and liabilities incurred 5.7 (0.1 ) (0.3 ) Payments (2.1 ) (2.0 ) (2.0 ) Translation and other charges (0.1 ) 0.4 (0.1 ) Balance at the end of the period $ 25.6 $ 22.1 $ 23.8 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table shows our revenues, segment income and other financial information for each of our reportable segments: North Asia Intra-entity America Europe Pacific Revenues Total Year Ended December 31, 2018 Revenues to external customers $ 1,915.7 $ 1,382.2 $ 148.0 $ 3,445.9 Intra-entity revenues — 25.2 0.8 $ (26.0 ) — Total revenues 1,915.7 1,407.4 148.8 (26.0 ) 3,445.9 Segment income 196.0 129.8 23.6 349.4 Segment assets 1,460.0 736.4 340.2 2,536.6 Payments for property, plant and equipment 60.2 34.2 12.0 106.4 Year Ended December 31, 2017 Revenues to external customers $ 1,467.8 $ 1,272.6 $ 116.9 $ 2,857.3 Intra-entity revenues — 28.1 5.4 $ (33.5 ) — Total revenues 1,467.8 1,300.7 122.3 (33.5 ) 2,857.3 Segment income 88.0 127.4 15.0 230.4 Segment assets 1,309.9 738.4 371.4 2,419.7 Payments for property, plant and equipment 174.6 25.8 5.9 206.3 Year Ended December 31, 2016 Revenues to external customers $ 1,363.5 $ 1,206.0 $ 94.4 $ 2,663.9 Intra-entity revenues 1.6 16.6 6.1 $ (24.3 ) — Total revenues 1,365.1 1,222.6 100.5 (24.3 ) 2,663.9 Segment income 86.1 149.4 10.8 246.3 Payments for property, plant and equipment 299.9 46.2 8.2 354.3 |
Reconciliation of reportable segment disclosures | Reconciliations of total reportable segment disclosures to our consolidated financial statements are as follows: For the years ended December 31, 2018 2017 2016 Profits Total segment income $ 349.4 $ 230.4 $ 246.3 Unallocated amounts: Depreciation and amortization (139.7 ) (115.7 ) (104.9 ) Corporate general and administrative expenses, excluding depreciation, amortization and start-up costs (58.1 ) (56.3 ) (51.8 ) Restructuring charges (4.8 ) (2.9 ) (1.5 ) Interest expense, net (144.7 ) (124.1 ) (82.5 ) Unallocated gains on derivative financial instruments 22.6 3.1 19.1 Unallocated currency exchange losses (2.3 ) (2.5 ) (0.5 ) Start-up costs (55.0 ) (73.6 ) (46.0 ) Loss on extinguishment of debt (48.9 ) — (12.6 ) Other income (expense), net 8.4 (9.6 ) 2.1 Impairment of amounts held in escrow related to the sale of the recycling business — (22.8 ) — Loss from continuing operations before income taxes $ (73.1 ) $ (174.0 ) $ (32.3 ) Payments for property, plant and equipment Total payments for property, plant and equipment for reportable segments $ 106.4 $ 206.3 $ 354.3 Other payments for property, plant and equipment 1.8 1.4 3.8 Total consolidated payments for property, plant and equipment $ 108.2 $ 207.7 $ 358.1 Assets Total assets for reportable segments $ 2,536.6 $ 2,419.7 Unallocated assets 242.8 224.7 Total consolidated assets $ 2,779.4 $ 2,644.4 |
Revenue By Geography | The following table sets forth the geographic breakout of our revenues (based on customer location) and long-lived tangible assets (net of accumulated depreciation and amortization): For the years ended December 31, 2018 2017 2016 Revenues United States $ 1,811.8 $ 1,399.5 $ 1,324.8 International: Asia 241.2 199.3 184.3 Germany 396.6 439.5 433.6 Other Europe 711.7 603.1 548.5 Mexico, Canada and South America 255.6 191.1 148.5 Other 29.0 24.8 24.2 Total international revenues 1,634.1 1,457.8 1,339.1 Consolidated revenues $ 3,445.9 $ 2,857.3 $ 2,663.9 |
Property Plant, and Equipment by Geography | December 31, 2018 2017 Long-lived tangible assets United States $ 864.8 $ 906.9 International: Asia 258.8 278.9 Europe 271.4 285.1 Total international 530.2 564.0 Consolidated total $ 1,395.0 $ 1,470.9 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the components of “ Accumulated other comprehensive loss ” in the Consolidated Balance Sheet, which are items that change equity during the reporting period, but are not included in earnings: Currency Pension and other Total translation postretirement Balance at January 1, 2016 $ (182.7 ) $ (118.7 ) $ (64.0 ) Current year currency translation adjustments (29.7 ) (32.2 ) 2.5 Recognition of net actuarial losses (19.7 ) — (19.7 ) Amortization of net actuarial losses and prior service cost 3.6 — 3.6 Deferred tax expense on pension and other postretirement liability adjustments 5.0 — 5.0 Balance at December 31, 2016 (223.5 ) (150.9 ) (72.6 ) Current year currency translation adjustments 82.0 86.7 (4.7 ) Recognition of net actuarial losses (2.0 ) — (2.0 ) Amortization of net actuarial losses and prior service cost 4.7 — 4.7 Deferred tax expense on pension and other postretirement liability adjustments (1.7 ) — (1.7 ) Balance at December 31, 2017 (140.5 ) (64.2 ) (76.3 ) Current year currency translation adjustments (27.3 ) (29.1 ) 1.8 Recognition of net actuarial losses (2.1 ) — (2.1 ) Amortization of net actuarial losses and prior service cost 4.3 — 4.3 Deferred tax expense on pension and other postretirement liability adjustments (1.4 ) — (1.4 ) Balance at December 31, 2018 $ (167.0 ) $ (93.3 ) $ (73.7 ) |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | A summary of reclassifications out of accumulated other comprehensive loss for the year ended December 31, 2018 is provided below: Description of reclassifications out of accumulated other comprehensive loss Amount reclassified Amortization of net actuarial losses and prior service cost, before tax $ (4.3 ) (a) Deferred tax benefit on pension and other postretirement liability adjustments 0.8 Losses reclassified into earnings, net of tax $ (3.5 ) (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). |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information is as follows: For the years ended December 31, 2018 2017 2016 Cash payments for: Interest $ 135.4 $ 130.2 $ 100.9 Income taxes 15.4 8.5 29.5 Non-cash financing activity associated with lease contracts 5.8 5.5 3.6 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Changes in the Number of Outstanding Common Shares | The following table shows changes in the number of our outstanding shares of common stock: Outstanding common shares Balance at January 1, 2016 31,768,819 Issuance associated with options exercised 60,094 Issuance associated with vested restricted stock units 74,542 Issuance upon conversion of Aleris International preferred stock to common stock 795 Balance at December 31, 2016 31,904,250 Issuance associated with vested restricted stock units 97,068 Balance at December 31, 2017 32,001,318 Issuance associated with vested restricted stock units 382,967 Shares cancelled (3,418 ) Balance at December 31, 2018 32,380,867 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | As of December 31, 2018 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ — $ 32.5 $ — $ 76.8 $ (0.7 ) $ 108.6 Accounts receivable, net — — 133.5 175.3 — 308.8 Inventories — — 427.9 345.0 — 772.9 Prepaid expenses and other current assets — 3.3 12.0 47.4 — 62.7 Intercompany receivables — 628.1 333.6 17.5 (979.2 ) — Total Current Assets — 663.9 907.0 662.0 (979.9 ) 1,253.0 Property, plant and equipment, net — 0.9 860.9 533.2 — 1,395.0 Intangible assets, net — — 16.6 15.9 — 32.5 Deferred income taxes — — — 60.2 — 60.2 Other long-term assets — 8.0 3.9 26.8 — 38.7 Investments in subsidiaries 4.8 1,395.9 4.4 — (1,405.1 ) — Total Assets $ 4.8 $ 2,068.7 $ 1,792.8 $ 1,298.1 $ (2,385.0 ) $ 2,779.4 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Accounts payable $ — $ 5.9 $ 199.4 $ 170.2 $ (0.7 ) $ 374.8 Accrued liabilities 54.0 64.1 80.0 — 198.1 Current portion of long-term debt — 11.0 1.0 9.9 — 21.9 Intercompany payables 31.9 308.0 589.2 50.1 (979.2 ) — Total Current Liabilities 31.9 378.9 853.7 310.2 (979.9 ) 594.8 Long-term debt — 1,681.4 0.5 224.5 — 1,906.4 Deferred revenue — — 65.0 — — 65.0 Deferred income taxes — — 0.1 0.8 — 0.9 Accrued pension benefits — — 44.9 118.8 — 163.7 Accrued postretirement benefits — — 29.6 — — 29.6 Other long-term liabilities — 3.6 14.9 27.6 — 46.1 Total Long-Term Liabilities — 1,685.0 155.0 371.7 — 2,211.7 Total Aleris Corporation Equity (27.1 ) 4.8 784.1 616.2 (1,405.1 ) (27.1 ) Total Liabilities and Equity $ 4.8 $ 2,068.7 $ 1,792.8 $ 1,298.1 $ (2,385.0 ) $ 2,779.4 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 Aleris Corporation 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 year ended December 31, 2018 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 1,915.6 $ 1,555.3 $ (25.0 ) $ 3,445.9 Cost of sales — — 1,813.4 1,372.3 (25.0 ) 3,160.7 Gross profit — — 102.2 183.0 — 285.2 Selling, general and administrative expenses 0.1 50.4 69.6 93.6 — 213.7 Restructuring charges — — 4.0 0.8 — 4.8 (Gains) losses on derivative financial instruments — — (48.4 ) 1.4 — (47.0 ) Other operating expense, net — — 3.5 — — 3.5 Operating (loss) income (0.1 ) (50.4 ) 73.5 87.2 — 110.2 Interest expense (income), net 3.6 (1.8 ) 114.0 28.9 — 144.7 Debt extinguishment costs — — 48.9 — — 48.9 Other expense (income), net 11.1 (50.6 ) 30.1 (0.9 ) — (10.3 ) Equity in net loss (earnings) of affiliates 76.8 78.6 (2.1 ) — (153.3 ) — (Loss) income before income taxes (91.6 ) (76.6 ) (117.4 ) 59.2 153.3 (73.1 ) Provision for (benefit from) income taxes — 0.2 (0.2 ) 18.5 — 18.5 Net (loss) income $ (91.6 ) $ (76.8 ) $ (117.2 ) $ 40.7 $ 153.3 $ (91.6 ) Comprehensive (loss) income $ (118.1 ) $ (103.3 ) $ (120.5 ) $ 17.5 $ 206.3 $ (118.1 ) For the year ended December 31, 2017 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 1,467.8 $ 1,417.5 $ (28.0 ) $ 2,857.3 Cost of sales — — 1,406.8 1,217.1 (28.0 ) 2,595.9 Gross profit — — 61.0 200.4 — 261.4 Selling, general and administrative expenses — 17.0 117.5 84.7 — 219.2 Restructuring charges — — 1.7 1.2 2.9 Losses on derivative financial instruments — — 42.9 1.8 — 44.7 Other operating expense, net — — 5.7 — — 5.7 Operating (loss) income — (17.0 ) (106.8 ) 112.7 — (11.1 ) Interest expense, net — — 95.3 28.8 — 124.1 Other expense, net — 3.2 8.4 27.2 — 38.8 Equity in net loss (earnings) of affiliates 210.6 194.8 (1.7 ) — (403.7 ) — (Loss) income before income taxes (210.6 ) (215.0 ) (208.8 ) 56.7 403.7 (174.0 ) (Benefit from) provision for income taxes — (0.6 ) (1.9 ) 42.9 — 40.4 (Loss) income from continuing operations (210.6 ) (214.4 ) (206.9 ) 13.8 403.7 (214.4 ) Income from discontinued operations, net of tax — 3.8 — — — 3.8 Net (loss) income $ (210.6 ) $ (210.6 ) $ (206.9 ) $ 13.8 $ 403.7 $ (210.6 ) Comprehensive (loss) income $ (127.6 ) $ (127.6 ) $ (205.3 ) $ 95.1 $ 237.8 $ (127.6 ) For the year ended December 31, 2016 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Revenues $ — $ — $ 1,364.8 $ 1,316.8 $ (17.7 ) $ 2,663.9 Cost of sales — — 1,277.0 1,114.9 (17.7 ) 2,374.2 Gross profit — — 87.8 201.9 — 289.7 Selling, general and administrative expenses — 2.0 135.9 79.6 — 217.5 Restructuring charges — — 0.4 1.1 — 1.5 Losses on derivative financial instruments — — 1.6 10.5 — 12.1 Other operating expense, net — — 3.3 0.6 — 3.9 Operating (loss) income — (2.0 ) (53.4 ) 110.1 — 54.7 Interest expense, net — — 51.5 31.0 — 82.5 Debt extinguishment costs — 12.6 — — — 12.6 Other (income) expense, net — (4.4 ) 12.1 (15.8 ) — (8.1 ) Equity in net loss (earnings) of affiliates 75.6 60.5 (0.8 ) — (135.3 ) — (Loss) income before income taxes (75.6 ) (70.7 ) (116.2 ) 94.9 135.3 (32.3 ) Provision for income taxes — 0.3 — 39.7 — 40.0 (Loss) income from continuing operations (75.6 ) (71.0 ) (116.2 ) 55.2 135.3 (72.3 ) (Loss) income from discontinued operations, net of tax — (4.6 ) — 1.3 — (3.3 ) Net (loss) income $ (75.6 ) $ (75.6 ) $ (116.2 ) $ 56.5 $ 135.3 $ (75.6 ) Comprehensive (loss) income $ (116.4 ) $ (116.4 ) $ (114.2 ) $ 13.8 $ 216.8 $ (116.4 ) |
Schedule of Condensed Cash Flow Statement | For the year ended December 31, 2018 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided (used) by operating activities $ 2.3 $ (110.4 ) $ 53.4 $ 117.7 $ (40.7 ) $ 22.3 Investing activities Payments for property, plant and equipment — (0.7 ) (61.4 ) (46.1 ) — (108.2 ) Disbursements of intercompany loans — — — (25.4 ) 25.4 — Repayments from intercompany loans — — — 39.5 (39.5 ) — Equity contributions in subsidiaries — (23.2 ) (0.5 ) — 23.7 — Return of investments in subsidiaries — — 0.1 — (0.1 ) — Other — — (2.5 ) 0.5 — (2.0 ) Net cash used by investing activities — (23.9 ) (64.3 ) (31.5 ) 9.5 (110.2 ) Financing activities Proceeds from revolving credit facilities — 200.0 — 95.3 — 295.3 Payments on revolving credit facilities — (230.0 ) — (125.1 ) — (355.1 ) Proceeds from notes and term loans, net of discount — 1,483.0 — — — 1,483.0 Payments on notes and term loans, including premiums — (1,292.2 ) — — — (1,292.2 ) Payments on other long-term debt — — (1.1 ) (8.8 ) — (9.9 ) Debt issuance costs — (20.1 ) — (0.9 ) — (21.0 ) Proceeds from intercompany loans — 25.4 — — (25.4 ) — Repayments on intercompany loans — (39.5 ) — — 39.5 — Proceeds from intercompany equity contributions — — 13.7 10.0 (23.7 ) — Intercompany dividends paid — — (2.0 ) (40.2 ) 42.2 — Other (2.3 ) (0.1 ) 0.3 (0.3 ) — (2.4 ) Net cash (used) provided by financing activities (2.3 ) 126.5 10.9 (70.0 ) 32.6 97.7 Effect of exchange rate differences on cash and cash equivalents — — — (2.2 ) — (2.2 ) Net (decrease) increase in cash and cash equivalents — (7.8 ) — 14.0 1.4 7.6 Cash, cash equivalents and restricted cash at beginning of period — 40.3 — 69.8 (2.1 ) 108.0 Cash, cash equivalents and restricted cash at end of period $ — $ 32.5 $ — $ 83.8 $ (0.7 ) $ 115.6 Cash and cash equivalents $ — $ 32.5 $ — $ 76.8 $ (0.7 ) $ 108.6 Restricted cash (included in “Prepaid expenses and other current assets”) — — — 7.0 — 7.0 Cash, cash equivalents and restricted cash $ — $ 32.5 $ — $ 83.8 $ (0.7 ) $ 115.6 For the year ended December 31, 2017 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided (used) by operating activities $ 2.9 $ 505.7 $ (499.3 ) $ 121.5 $ (162.2 ) $ (31.4 ) Investing activities Payments for property, plant and equipment — — (175.9 ) (31.8 ) — (207.7 ) Disbursements of intercompany loans — — — (14.5 ) 14.5 — Repayments from intercompany loans — — — 135.0 (135.0 ) — Equity contributions in subsidiaries — (704.7 ) (1.0 ) — 705.7 — Return of investments in subsidiaries — 8.3 7.0 — (15.3 ) — Other — — (3.0 ) — — (3.0 ) Net cash (used) provided by investing activities — (696.4 ) (172.9 ) 88.7 569.9 (210.7 ) Financing activities Proceeds from revolving credit facilities — 270.0 — 305.1 — 575.1 Payments on revolving credit facilities — (185.0 ) — (351.3 ) — (536.3 ) Proceeds from senior secured notes, net of discount 263.8 — — — 263.8 Payments on other long-term debt — — (0.7 ) (5.7 ) — (6.4 ) Debt issuance costs (2.8 ) — — — (2.8 ) Proceeds from intercompany loans — 14.5 — — (14.5 ) — Repayments on intercompany loans — (135.0 ) — — 135.0 — Proceeds from intercompany equity contributions — — 680.5 25.2 (705.7 ) — Intercompany dividends paid — — (8.0 ) (170.6 ) 178.6 — Other (2.9 ) — 0.4 (0.4 ) — (2.9 ) Net cash (used) provided by financing activities (2.9 ) 225.5 672.2 (197.7 ) (406.6 ) 290.5 Effect of exchange rate differences on cash and cash equivalents — — — 4.0 — 4.0 Net increase in cash and cash equivalents — 34.8 — 16.5 1.1 52.4 Cash and cash equivalents at beginning of period — 5.5 — 53.3 (3.2 ) 55.6 Cash and cash equivalents at end of period $ — $ 40.3 $ — $ 69.8 $ (2.1 ) $ 108.0 Cash and cash equivalents $ — $ 40.3 $ — $ 64.2 $ (2.1 ) $ 102.4 Restricted cash (included in “Prepaid expenses and other current assets”) — — — 5.6 — 5.6 Cash, cash equivalents and restricted cash $ — $ 40.3 $ — $ 69.8 $ (2.1 ) $ 108.0 For the year ended December 31, 2016 Aleris Corporation (Parent) Aleris International, Inc. Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated Net cash provided (used) by operating activities $ 0.7 $ (340.2 ) $ 285.3 $ 70.4 $ (4.2 ) $ 12.0 Investing activities Payments for property, plant and equipment — — (301.8 ) (56.3 ) — (358.1 ) Proceeds from the sale of businesses, net of cash transferred — 5.0 — — — 5.0 Disbursements of intercompany loans — — — (135.0 ) 135.0 — Equity contributions in subsidiaries — (16.4 ) — — 16.4 — Return of investments in subsidiaries — — 1.8 — (1.8 ) — Other — — (1.7 ) 0.2 — (1.5 ) Net cash (used) provided by investing activities — (11.4 ) (301.7 ) (191.1 ) 149.6 (354.6 ) Financing activities Proceeds from revolving credit facilities — 235.0 — 125.4 — 360.4 Payments on revolving credit facilities — (105.0 ) — (2.0 ) — (107.0 ) Proceeds from senior secured notes, net of discount — 540.4 — — — 540.4 Payments on senior notes, including premiums — (443.8 ) — — — (443.8 ) Payments on other long-term debt — (0.5 ) (0.6 ) (6.2 ) — (7.3 ) Debt issuance costs — (4.0 ) — — — (4.0 ) Proceeds from intercompany loans — 135.0 — — (135.0 ) — Proceeds from intercompany equity contributions — — 16.4 — (16.4 ) — Intercompany dividends paid — — (0.3 ) (2.5 ) 2.8 — Other (0.7 ) — 0.9 (0.8 ) — (0.6 ) Net cash (used) provided by financing activities (0.7 ) 357.1 16.4 113.9 (148.6 ) 338.1 Effect of exchange rate differences on cash and cash equivalents — — — (2.1 ) — (2.1 ) Net increase (decrease) in cash and cash equivalents — 5.5 — (8.9 ) (3.2 ) (6.6 ) Cash and cash equivalents at beginning of period — — — 62.2 — 62.2 Cash and cash equivalents at end of period $ — $ 5.5 $ — $ 53.3 $ (3.2 ) $ 55.6 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Narrative (Details) | 12 Months Ended | |||||
Dec. 31, 2018USD ($)counterpartyshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)shares | Jan. 01, 2019USD ($) | Mar. 31, 2018USD ($) | Jan. 01, 2018USD ($) | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Restricted cash (included in “Prepaid expenses and other current assets”) | $ 7,000,000 | $ 5,600,000 | $ 0 | |||
Other inventory, materials, supplies and merchandise under consignment, gross | 16,400,000 | 32,500,000 | ||||
Impairment of intangible assets, indefinite-lived | 0 | |||||
Research and development expense | $ 18,400,000 | 16,000,000 | $ 10,900,000 | |||
Weight of discounted cash flow analysis | 50.00% | |||||
Weight of comparable public company analysis | 50.00% | |||||
Options, grants in period, gross | shares | 0 | 0 | ||||
Stock-based compensation expense | $ 9,200,000 | 11,300,000 | $ 7,000,000 | |||
Derivative, counterparty | counterparty | 10 | |||||
Foreign currency transaction (gain) loss, before tax | $ 300,000 | 8,200,000 | (800,000) | |||
Retained deficit | 292,200,000 | 203,400,000 | ||||
Accounts receivable, net | 308,800,000 | 245,700,000 | ||||
Inventories | 772,900,000 | 631,200,000 | ||||
Accrued liabilities | 198,100,000 | 197,400,000 | ||||
Deferred income taxes | 900,000 | 4,000,000 | ||||
Revenues | 3,445,900,000 | 2,857,300,000 | 2,663,900,000 | |||
Cost of sales | 3,160,700,000 | 2,595,900,000 | 2,374,200,000 | |||
Additional Paid-in Capital [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Stock-based compensation expense | 9,200,000 | 11,300,000 | 7,000,000 | |||
Property, Plant and Equipment [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Capital lease obligations, current | 10,400,000 | |||||
Property Plant and Equipment, Current [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Capital lease obligations, current | 4,000,000 | |||||
Property, Plant and Equipment, Noncurrent [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Capital lease obligations, current | 6,200,000 | |||||
Accounting Standards Update 2018-02 [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Retained deficit | $ 0 | |||||
Accounting Standards Update 2017-07 [Member] | Retained Earnings [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Net periodic defined benefits expense reversal of expense | 0 | |||||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Retained deficit | $ (2,800,000) | |||||
Accounts receivable, net | 26,000,000 | 28,600,000 | ||||
Inventories | (22,800,000) | (23,000,000) | ||||
Accrued liabilities | 2,400,000 | 1,600,000 | ||||
Deferred income taxes | $ 1,200,000 | |||||
Revenues | (2,000,000) | |||||
Cost of sales | $ (1,700,000) | |||||
Scenario, Forecast [Member] | Accounting Standards Update 2016-02 [Member] | Minimum [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Operating lease, right-of-use asset | $ 10,000,000 | |||||
Operating lease, liability | 11,000,000 | |||||
Scenario, Forecast [Member] | Accounting Standards Update 2016-02 [Member] | Maximum [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Operating lease, right-of-use asset | 15,000,000 | |||||
Operating lease, liability | $ 16,000,000 | |||||
Cost of Sales [Member] | Accounting Standards Update 2017-07 [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Net periodic defined benefits expense reversal of expense | 2,000,000 | 1,800,000 | ||||
Selling, General and Administrative Expenses [Member] | Accounting Standards Update 2017-07 [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Net periodic defined benefits expense reversal of expense | $ 1,600,000 | $ 1,000,000 | ||||
Restricted Stock Units (RSUs) [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Equity instruments other than options, grants in period (in shares) | shares | 0 | |||||
Restricted Stock [Member] | ||||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||||
Equity instruments other than options, grants in period (in shares) | shares | 0 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Account Receivable Allowance for Bad Debt (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Balance at beginning of the period | $ 0.4 | $ 0.3 | $ 0.4 |
Expenses for uncollectible accounts, net of recoveries | 0 | 0.1 | 0.4 |
Receivables written off against the valuation reserve | (0.3) | 0 | (0.5) |
Balance at end of the period | $ 0.1 | $ 0.4 | $ 0.3 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Property, Plant and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |
Repair and maintenance expensing period | 18 months |
Finite-lived intangible asset, useful life | 17 years |
Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, useful life | 15 years |
Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Finite-lived intangible asset, useful life | 25 years |
Buildings and Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 5 years |
Buildings and Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 38 years |
Production Equipment and Machinery [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Production Equipment and Machinery [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Office Furniture, Equipment and Other[Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Office Furniture, Equipment and Other[Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Capitalized Interest Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accounting Policies [Abstract] | |||
Capitalized interest | $ 1.2 | $ 8.4 | $ 25.2 |
Revenue From Contracts with C_3
Revenue From Contracts with Customers (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenues | $ 3,445.9 | $ 2,857.3 | $ 2,663.9 |
North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,915.7 | 1,467.8 | 1,365.1 |
Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 1,407.4 | 1,300.7 | 1,222.6 |
Asia Pacific [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 148.8 | $ 122.3 | $ 100.5 |
Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (26) | ||
Aerospace [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 378.4 | ||
Aerospace [Member] | North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Aerospace [Member] | Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 293.3 | ||
Aerospace [Member] | Asia Pacific [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 85.1 | ||
Aerospace [Member] | Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Automotive [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 596.8 | ||
Automotive [Member] | North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 221 | ||
Automotive [Member] | Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 400.8 | ||
Automotive [Member] | Asia Pacific [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Automotive [Member] | Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (25) | ||
Building and Construction [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 834.6 | ||
Building and Construction [Member] | North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 834.6 | ||
Building and Construction [Member] | Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Building and Construction [Member] | Asia Pacific [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Building and Construction [Member] | Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Distribution [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 525.8 | ||
Distribution [Member] | North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 465 | ||
Distribution [Member] | Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Distribution [Member] | Asia Pacific [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 61.6 | ||
Distribution [Member] | Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | (0.8) | ||
Heat Exchanger [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 263.9 | ||
Heat Exchanger [Member] | North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Heat Exchanger [Member] | Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 263.9 | ||
Heat Exchanger [Member] | Asia Pacific [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Heat Exchanger [Member] | Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Regional Plate and Sheet [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 397.5 | ||
Regional Plate and Sheet [Member] | North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Regional Plate and Sheet [Member] | Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 397.5 | ||
Regional Plate and Sheet [Member] | Asia Pacific [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Regional Plate and Sheet [Member] | Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Truck Trailer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 194 | ||
Truck Trailer [Member] | North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 194 | ||
Truck Trailer [Member] | Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Truck Trailer [Member] | Asia Pacific [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Truck Trailer [Member] | Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 0 | ||
Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 254.9 | ||
Other [Member] | North America Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 201.1 | ||
Other [Member] | Europe [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 51.9 | ||
Other [Member] | Asia Pacific [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | 2.1 | ||
Other [Member] | Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenues | $ (0.2) |
Revenue From Contracts with C_4
Revenue From Contracts with Customers (Deferred Revenue) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 | |
Change in Contract with Customer, Liability [Roll Forward] | |||
Deferred revenue at January 1, 2018 | $ 21.4 | ||
Payments received | 78 | ||
Revenue recognized | (18.8) | ||
Adoption of ASC 606 | (2.8) | $ 4.7 | |
Currency and other | (0.3) | ||
Deferred revenue at September 30, 2018 | $ 81.9 | ||
Accounting Standards Update 2014-09 [Member] | |||
Change in Contract with Customer, Liability [Roll Forward] | |||
Adoption of ASC 606 | $ 1.6 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 4.8 | $ 2.9 | $ 1.5 |
2018 Initiatives [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 4.8 | ||
2017 Initiatives [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2.9 | ||
2017 Initiatives [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 1.3 | ||
North America Segment [Member] | 2018 Initiatives [Member] | Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 4.3 | ||
North America Segment [Member] | 2017 Initiatives [Member] | Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 1.6 | ||
North America Segment [Member] | 2016 Initiatives [Member] | Facility Closing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 1.5 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory, Net [Abstract] | ||
Raw materials | $ 283.8 | $ 207.6 |
Work in process | 284.5 | 210.8 |
Finished goods | 169.1 | 181.6 |
Supplies | 35.5 | 31.2 |
Total inventories | $ 772.9 | $ 631.2 |
Property, Plant and Equipment P
Property, Plant and Equipment Property, Plant and Equipment Component (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 94.2 | $ 93.6 |
Buildings and improvements | 395.6 | 395.6 |
Production equipment and machinery | 1,456.8 | 1,314.9 |
Office furniture and computer software and equipment | 129.8 | 120.9 |
Construction work-in-progress | 41.7 | 152.9 |
Property, plant and equipment | 2,118.1 | 2,077.9 |
Accumulated depreciation | (723.1) | (607) |
Property, plant and equipment, net | $ 1,395 | $ 1,470.9 |
Property, Plant and Equipment N
Property, Plant and Equipment Narratives (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Capital leased assets, gross | $ 17.9 | $ 16.4 |
Capital leases, accumulated depreciation | 7.5 | 7.2 |
Accounts Payable [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Capital expenditures incurred but not yet paid | 17.9 | 20.4 |
Capital Expenditures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Capital expenditures incurred but not yet paid | $ 20.4 | $ 42.6 |
Property, Plant and Equipment D
Property, Plant and Equipment Depreciation and Maintenance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense included within “Selling, general and administrative expenses” | $ 9.5 | $ 8.2 | $ 9.5 |
Cost of Goods and Services Sold, Depreciation | 128.1 | 105.4 | 93.2 |
Repair and maintenance expense included within “Loss from continuing operations” | $ 105 | $ 95.5 | $ 93.1 |
Intangible Assets Schedule of I
Intangible Assets Schedule of Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Intangible Asset [Line Items] | ||
Intangible assets, gross | $ 50.1 | $ 50.1 |
Finite-lived intangible assets, accumulated amortization | (17.6) | (15.4) |
Intangible assets, net | $ 32.5 | 34.7 |
Finite-lived intangible asset, useful life | 17 years | |
Trade Names [Member] | ||
Schedule of Intangible Asset [Line Items] | ||
Indefinite-lived intangible assets | $ 15.9 | 15.9 |
Developed Technology Rights [Member] | ||
Schedule of Intangible Asset [Line Items] | ||
Finite-lived intangible assets, gross | 5.9 | 5.9 |
Finite-lived intangible assets, accumulated amortization | (2.1) | (1.8) |
Finite-lived intangible assets, net | $ 3.8 | 4.1 |
Finite-lived intangible asset, useful life | 25 years | |
Customer Relationships [Member] | ||
Schedule of Intangible Asset [Line Items] | ||
Finite-lived intangible assets, gross | $ 28.3 | 28.3 |
Finite-lived intangible assets, accumulated amortization | (15.5) | (13.6) |
Finite-lived intangible assets, net | $ 12.8 | $ 14.7 |
Finite-lived intangible asset, useful life | 15 years |
Intangible Assets Schedule of A
Intangible Assets Schedule of Amortization Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense | $ 2.1 | $ 2.1 | $ 2.1 |
Intangible Assets Schedule of F
Intangible Assets Schedule of Finite-Lived Intangible Assets, Future Amortization (Details) $ in Millions | Dec. 31, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2,019 | $ 2.1 |
2,020 | 2.1 |
2,021 | 2.1 |
2,022 | 2.1 |
2,023 | 2.1 |
Total | $ 10.5 |
Accrued and Other Long-Term L_3
Accrued and Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued liabilities | $ 198.1 | $ 197.4 |
Accrued environmental and ARO liabilities | 26.7 | 24.3 |
Employee-related costs | 14.6 | 18.2 |
Derivative liability | 2.4 | 0 |
Other Liabilities, Noncurrent, Misc | 2.4 | 6.6 |
Total other long-term liabilities | 46.1 | 49.1 |
Employee-Related Cost [Member] | ||
Accrued liabilities | 67.8 | 64.7 |
Interest Expense [Member] | ||
Accrued liabilities | 31.5 | 26.9 |
Taxes [Member] | ||
Accrued liabilities | 21.2 | 16.9 |
Capital Expenditures [Member] | ||
Accrued liabilities | 20.4 | 42.6 |
Deferred Revenue [Member] | ||
Accrued liabilities | 16.8 | 3 |
Professional Fee [Member] | ||
Accrued liabilities | 11.1 | 7.8 |
Derivative Financial Instruments, Liabilities [Member] | ||
Accrued liabilities | 4.8 | 9 |
Other Liabilities [Member] | ||
Accrued liabilities | $ 24.5 | $ 26.5 |
Asset Retirement Obligation (De
Asset Retirement Obligation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | |||
Balance at the beginning of the period | $ 6.1 | $ 4.7 | $ 4.6 |
Revisions and liabilities incurred | 1 | 1.2 | 0 |
Accretion expense | 0.1 | 0.1 | 0.1 |
Payments | (0.3) | 0 | (0.1) |
Translation and other charges | (0.1) | 0.1 | 0.1 |
Balance at the end of the period | $ 6.8 | $ 6.1 | $ 4.7 |
Schedule of Debt (Details)
Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 01, 2010 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,928.3 | $ 1,780.5 | |
Less: Current portion of long-term debt | 21.9 | 9.1 | |
Total long-term debt | 1,906.4 | 1,771.4 | |
Exchangeable Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, discount | 0.2 | 0.3 | |
Zhenjiang term loans [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, discount | 0.4 | 0.5 | |
Line of Credit [Member] | ABL Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 253.7 | 319.3 | |
Term Loan [Member] | First Lien Term Loan [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 1,070.2 | 0 | |
Debt instrument, discount and deferred issuance costs | 24.3 | ||
Senior Notes [Member] | 10 3/4% Senior Secured Junior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 392.5 | 0 | |
Debt instrument, interest rate, stated percentage | 10.75% | ||
Debt instrument, discount and deferred issuance costs | $ 7.5 | ||
Senior Notes [Member] | 7 7/8% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | 436.7 | |
Debt instrument, interest rate, stated percentage | 7.875% | ||
Debt instrument, discount and deferred issuance costs | 3.3 | ||
Senior Notes [Member] | 9 1/2% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | 800.8 | |
Debt instrument, interest rate, stated percentage | 9.50% | ||
Debt instrument, discount and deferred issuance costs | 0.8 | ||
Senior Subordinated Notes [Member] | Exchangeable Notes [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 44.6 | 44.5 | |
Debt instrument, interest rate, stated percentage | 6.00% | ||
Notes Payable to Banks [Member] | Zhenjiang term loans [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 157.2 | 169.8 | |
Other Long-term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 10.1 | $ 9.4 |
Long-Term Debt Schedule of Matu
Long-Term Debt Schedule of Maturities (Details) $ in Millions | Dec. 31, 2018USD ($) |
Debt | |
2,019 | $ 18 |
2,020 | 73.2 |
2,021 | 37.2 |
2,022 | 299.6 |
2,023 | 1,485.4 |
After 2,023 | 37.3 |
Total | 1,950.7 |
Capital leases | |
2,019 | 4.1 |
2,020 | 3 |
2,021 | 1.5 |
2,022 | 0.8 |
2,023 | 0.5 |
After 2,023 | 0.6 |
Total | $ 10.5 |
Long-Term Debt - Debt Refinanci
Long-Term Debt - Debt Refinancing (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 25, 2018 | |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 48,900,000 | $ 0 | $ 12,600,000 | |
New Financing [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate original principal amount of debt | $ 1,500,000,000 | |||
Secured Debt [Member] | Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate original principal amount of debt | 1,100,000,000 | |||
Senior Notes [Member] | 2023 Junior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate original principal amount of debt | $ 400,000,000 | |||
Debt instrument, interest rate, stated percentage | 10.75% |
Long-Term Debt - Term Loan Faci
Long-Term Debt - Term Loan Facility (Details) - USD ($) | Jun. 25, 2018 | Apr. 04, 2016 |
Senior Notes [Member] | 9 1/2% Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Collateral, outstanding non-voting stock, percent | $ 1 | |
Collateral, outstanding voting stock of certain foreign subsidiaries, percent | $ 0.65 | |
Secured Debt [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate original principal amount of debt | $ 1,100,000,000 | |
Secured Debt [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Amended and restated maximum borrowings | $ 75,000,000 | |
Supplementary leverage ratio | 3.75% | |
Applicable margin range for debt instrument interest rate (percent) | 3.75% | |
Percentage of principal amount of annual amortization | 1.00% | |
Prepayment fee percentage | 1.00% | |
Secured Debt [Member] | Term Loan Facility [Member] | Overnight Federal Funds Rate [Member] | ||
Debt Instrument [Line Items] | ||
Applicable margin range for debt instrument interest rate (percent) | 0.50% | |
Secured Debt [Member] | Term Loan Facility [Member] | One Month London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Applicable margin range for debt instrument interest rate (percent) | 1.00% | |
Secured Debt [Member] | Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument [Line Items] | ||
Applicable margin range for debt instrument interest rate (percent) | 4.75% | |
Secured Debt [Member] | Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Applicable margin range for debt instrument interest rate (percent) | 0.00% |
Long-Term Debt - 2023 Junior Pr
Long-Term Debt - 2023 Junior Priority Notes (Details) - Senior Notes [Member] - 2023 Junior Notes [Member] $ in Millions | Jun. 25, 2018USD ($) |
Debt Instrument [Line Items] | |
Aggregate original principal amount of debt | $ 400 |
Debt instrument, interest rate, stated percentage | 10.75% |
Net proceeds of asset sales | $ 35 |
Percentage of required usage of consideration received | 80.00% |
Debt Instrument, Redemption, Period One [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price | 102.00% |
Debt instrument, redemption price upon change in control | 102.00% |
Debt Instrument, Redemption, Period One [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price | 104.00% |
Debt Instrument, Redemption, Period One [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price | 100.00% |
Debt Instrument, Redemption, Period Two [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price | 103.00% |
Maximum early redemption percent of original principal amount | 40.00% |
Minimum remaining percent of original principal amount after early redemption | 60.00% |
Debt instrument, redemption price upon change in control | 103.00% |
Debt Instrument, Redemption, Period Two [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price | 110.75% |
Debt Instrument, Redemption, Period Two [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price | 100.00% |
Debt Instrument, Redemption, Period Three [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price upon change in control | 101.00% |
Debt Instrument, Redemption, Period Four [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, redemption price upon change in control | 100.00% |
Long-Term Debt - ABL Facility N
Long-Term Debt - ABL Facility Narrative (Details) - USD ($) | Jun. 25, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 1,928,300,000 | $ 1,780,500,000 | |
Asset Backed Multi-Currency Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Estimated maximum supported borrowings | 632,400,000 | ||
Amount available for borrowings | 353,300,000 | ||
Line of Credit [Member] | Asset Backed Multi-Currency Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 253,700,000 | $ 319,300,000 | |
Revolving Credit Facility [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Additional increase to maximum borrowing capacity | $ 150,000,000 | ||
Amended and restated maximum borrowings | 750,000,000 | ||
Maximum borrowing capacity, additional increase subject to applicable borrowing base | $ 300,000,000 | ||
Mandatory prepayment with net cash proceeds of asset sales (percent) | 100.00% | ||
Mandatory prepayment with net cash proceeds from issuance of debt (percent) | 100.00% | ||
Percent of commitments or borrowing base for fixed charge fee (percent) | 10.00% | ||
Maximum borrowing amount available for fixed charge fee | $ 40,000,000 | ||
Revolving Credit Facility [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Commitment fee | 0.25% | ||
Fixed charge coverage ratio | 1 | ||
Revolving Credit Facility [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Commitment fee | 0.375% | ||
Revolving Credit Facility [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Applicable margin range for debt instrument interest rate (percent) | 1.50% | ||
Revolving Credit Facility [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Applicable margin range for debt instrument interest rate (percent) | 2.00% | ||
Revolving Credit Facility [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | Eurodollar [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Applicable margin range for debt instrument interest rate (percent) | 0.50% | ||
Revolving Credit Facility [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | Eurodollar [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Applicable margin range for debt instrument interest rate (percent) | 1.00% | ||
Revolving Credit Facility [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | Euro InterBank Offered Rate [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Applicable margin range for debt instrument interest rate (percent) | 1.50% | ||
Revolving Credit Facility [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | Euro InterBank Offered Rate [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Applicable margin range for debt instrument interest rate (percent) | 2.00% | ||
Revolving Credit Facility [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | Sterling London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Applicable margin range for debt instrument interest rate (percent) | 1.50% | ||
Revolving Credit Facility [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | Sterling London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Applicable margin range for debt instrument interest rate (percent) | 2.00% | ||
Letter of Credit [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Amended and restated maximum borrowings | $ 125,000,000 | ||
Aleris Switzerland GmbH [Member] | Aleris Switzerland [Member] | Revolving Credit Facility [Member] | New Asset Backed Multi-Currency Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Amended and restated maximum borrowings | $ 375,000,000 |
Long-Term Debt - Senior Notes (
Long-Term Debt - Senior Notes (Details) | Jun. 01, 2010USD ($)shares / $ | Dec. 31, 2018 |
Senior Notes [Member] | Existing Senior Notes [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Initial redemption price percent of principal amount (percent) | 101.969% | |
Debt instrument, redemption price | 104.75% | |
Senior Subordinated Notes [Member] | Senior Subordinated Exchangeable Notes [Member] | ||
Debt Instrument [Line Items] | ||
Aggregate original principal amount of debt | $ 45,000,000 | |
Debt instrument, interest rate, stated percentage | 6.00% | |
Shares of common stock per unit of debt principal amount (in shares) | shares / $ | 60.58 | |
Unit of debt principal amount for conversion | $ 1,000 |
Long-Term Debt - China Loan Fac
Long-Term Debt - China Loan Facility (Details) ¥ in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018CNY (¥) | Dec. 31, 2018USD ($) | Dec. 31, 2018CNY (¥) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ | $ 1,928.3 | $ 1,780.5 | ||
Notes Payable to Banks [Member] | Amended Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate on term and revolving credit facility for foreign loans (percent) | 110.00% | 110.00% | ||
Notes Payable to Banks [Member] | Zhenjiang term loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ | $ 157.2 | 169.8 | ||
Revolving Credit Facility [Member] | Notes Payable to Banks [Member] | Zhenjiang term loans [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Semi-annual repayments | ¥ | ¥ 3.5 | |||
Revolving Credit Facility [Member] | Notes Payable to Banks [Member] | Zhenjiang term loans [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Semi-annual repayments | ¥ | 36 | |||
United States Dollars [Member] | Amended Term Loan [Member] | Notes Payable to Banks [Member] | Zhenjiang term loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Amended and restated maximum borrowings | $ | 30.6 | |||
United States Dollars [Member] | Revolving Credit Facility [Member] | Notes Payable to Banks [Member] | Zhenjiang term loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Amended and restated maximum borrowings | $ | 59.6 | |||
Renminbi with United States Dollars Equivalent [Member] | Amended Term Loan [Member] | Notes Payable to Banks [Member] | Zhenjiang term loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Amended and restated maximum borrowings | 127.1 | ¥ 873.8 | ||
Renminbi with United States Dollars Equivalent [Member] | Revolving Credit Facility [Member] | Notes Payable to Banks [Member] | Zhenjiang term loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Amended and restated maximum borrowings | ¥ | ¥ 410 | |||
Renminbi with United States Dollars Equivalent [Member] | Revolving Credit Facility [Member] | Notes Payable to Banks [Member] | Zhenjiang term loans [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Semi-annual repayments | ¥ | 23.9 | |||
Renminbi with United States Dollars Equivalent [Member] | Revolving Credit Facility [Member] | Notes Payable to Banks [Member] | Zhenjiang term loans [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Semi-annual repayments | ¥ | ¥ 247.3 | |||
London Interbank Offered Rate [Member] | Notes Payable to Banks [Member] | Zhenjiang term loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin range for debt instrument interest rate (percent) | 5.00% | |||
Zhenjiang term loans [Member] | Foreign Line of Credit [Member] | Zhenjiang term loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ | $ 157.6 | $ 170.3 |
Employee Benefit Plans Company
Employee Benefit Plans Company Match of Employee Contributions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Company Match of Employee Contributions [Member] | |||
Company Match of Employee Contributions [Line Items] | |||
Defined Benefit Plan, Contributions by Employer | $ 5.9 | $ 5.4 | $ 5.2 |
Supplemental Employer Contributions [Member] | |||
Company Match of Employee Contributions [Line Items] | |||
Defined Benefit Plan, Contributions by Employer | $ 1.5 | $ 1.3 | $ 1.3 |
Components of the Net Periodic
Components of the Net Periodic and Postretirement Benefit Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Amortization of net loss | $ 4.3 | $ 4.7 | $ 3.6 |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 0.3 | 0.2 | 0.2 |
Interest cost | 1.1 | 1.1 | 1.3 |
Amortization of net loss | (0.7) | (0.5) | (0.1) |
Amortization of prior service cost | 0.2 | 0 | 0 |
Net periodic benefit expense | 0.9 | 0.8 | 1.4 |
UNITED STATES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4.5 | 3.9 | |
Interest cost | 5.8 | 5.8 | |
UNITED STATES | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 4.5 | 3.9 | 3.7 |
Interest cost | 5.8 | 5.8 | 6 |
Amortization of net loss | 1.9 | 1.9 | 1.9 |
Amortization of prior service cost | 0.2 | 0.2 | 0.2 |
Expected return on plan assets | (10.3) | (10.2) | (10) |
Net periodic benefit expense | 2.1 | 1.6 | 1.8 |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2.5 | 2.5 | |
Interest cost | 2.1 | 1.8 | |
Foreign Plan [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 2.5 | 2.5 | 2 |
Interest cost | 2.1 | 1.8 | 2.1 |
Amortization of net loss | 2.7 | 3 | 1.6 |
Net periodic benefit expense | $ 7.3 | $ 7.3 | $ 5.7 |
Employee Benefit Plans Changes
Employee Benefit Plans Changes in Projected Benefit Obligation and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
UNITED STATES | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of period | $ 188.8 | $ 180.6 | |
Service cost | 4.5 | 3.9 | |
Interest cost | 5.8 | 5.8 | |
Actuarial (gain) loss | (12.5) | 11.2 | |
Expenses paid | (2) | (1.8) | |
Benefits paid | (10) | (10.9) | |
Plan settlements | 0 | 0 | |
Translation and other | 0 | 0 | |
Projected benefit obligation at end of period | 174.6 | 188.8 | $ 180.6 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 143.6 | 136.1 | |
Employer contributions | 7 | 1.2 | |
Actual return on plan assets | (8.9) | 19 | |
Expenses paid | (2) | (1.8) | |
Benefits paid | (10) | (10.9) | |
Plan settlement | 0 | 0 | |
Translation and other | 0 | 0 | |
Fair value of plan assets at end of period | 129.7 | 143.6 | 136.1 |
Net amount recognized | (44.9) | (45.2) | |
Foreign Plan [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of period | 130.3 | 118.9 | |
Service cost | 2.5 | 2.5 | |
Interest cost | 2.1 | 1.8 | |
Actuarial (gain) loss | (0.6) | (3.7) | |
Expenses paid | 0 | 0 | |
Benefits paid | (3.7) | (4.2) | |
Plan settlements | (0.7) | 0 | |
Translation and other | (4.2) | 15 | |
Projected benefit obligation at end of period | 125.7 | 130.3 | 118.9 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 1.3 | 1.3 | |
Employer contributions | 4.7 | 4 | |
Actual return on plan assets | 0 | 0.1 | |
Expenses paid | 0 | 0 | |
Benefits paid | (3.7) | (4.2) | |
Plan settlement | 0.7 | 0 | |
Translation and other | 1.5 | 0.1 | |
Fair value of plan assets at end of period | 3.1 | 1.3 | 1.3 |
Net amount recognized | (122.6) | (129) | |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of period | 37.5 | 37.6 | |
Service cost | 0.3 | 0.2 | 0.2 |
Interest cost | 1.1 | 1.1 | 1.3 |
Actuarial (gain) loss | (3.2) | (1.7) | |
Benefits paid | (4.4) | (4.3) | |
Employee contributions | 1 | 1.2 | |
Medicare subsidies received | 0.2 | 0.2 | |
Translation and other | 0 | 3.2 | |
Projected benefit obligation at end of period | 32.5 | 37.5 | 37.6 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of period | 0 | 0 | |
Employer contributions | 3.2 | 2.9 | |
Employee contributions | 1 | 1.2 | |
Medicare subsidies received | 0.2 | 0.2 | |
Benefits paid | (4.4) | (4.3) | |
Fair value of plan assets at end of period | 0 | 0 | $ 0 |
Net amount recognized | $ (32.5) | $ (37.5) |
Employee Benefit Plans Defined
Employee Benefit Plans Defined Benefit Plans Amounts Recognized in the Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued pension benefits | $ (163.7) | $ (170.2) |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net amount recognized | (32.5) | (37.5) |
Net actuarial loss (gain) | (5.4) | (3) |
Net prior service cost | 3 | 3.2 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | (2.4) | 0.2 |
Amortization of net actuarial loss | 1 | |
Amortization of net prior service cost | (0.2) | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | 0.8 | |
Accrued Liabilities [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued liabilities | (2.9) | (3.2) |
Accrued pension benefits [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued pension benefits | (29.6) | (34.3) |
UNITED STATES | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net amount recognized | (44.9) | (45.2) |
UNITED STATES | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net amount recognized | (44.9) | (45.2) |
Net actuarial loss (gain) | 42.6 | 37.7 |
Net prior service cost | 1.3 | 1.6 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 43.9 | 39.3 |
Amortization of net actuarial loss | (2.6) | |
Amortization of net prior service cost | (0.2) | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | (2.8) | |
Accumulated benefit obligation for all defined benefit pension plans | 174.2 | 188.4 |
Aggregate projected benefit obligation | 174.6 | 188.9 |
Aggregate fair value of plan assets | 129.8 | 143.7 |
Aggregate accumulated benefit obligation | 174.2 | 188.4 |
Aggregate fair value of plan assets | 129.8 | 143.7 |
Projected employer contributions for 2019 | 5.1 | |
UNITED STATES | Accrued Liabilities [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued liabilities | 0 | 0 |
UNITED STATES | Accrued pension benefits [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued pension benefits | (44.9) | (45.2) |
Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net amount recognized | (122.6) | (129) |
Foreign Plan [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net amount recognized | (122.6) | (129) |
Net actuarial loss (gain) | 39.5 | 44.7 |
Net prior service cost | 0 | 0 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 39.5 | 44.7 |
Amortization of net actuarial loss | (2.4) | |
Amortization of net prior service cost | 0 | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year | (2.4) | |
Accumulated benefit obligation for all defined benefit pension plans | 123.2 | 127.3 |
Aggregate projected benefit obligation | 124.7 | 130.4 |
Aggregate fair value of plan assets | 2 | 1.4 |
Aggregate accumulated benefit obligation | 120.5 | 126.1 |
Aggregate fair value of plan assets | 0 | 0 |
Projected employer contributions for 2019 | 0 | |
Foreign Plan [Member] | Accrued Liabilities [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued liabilities | (3.8) | (4) |
Foreign Plan [Member] | Accrued pension benefits [Member] | Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Accrued pension benefits | $ (118.8) | $ (125) |
Employee Benefit Plans Assumpti
Employee Benefit Plans Assumptions Used to Determine the Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.10% | 3.40% | 3.80% |
Minimum [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates | 3.00% | 3.10% | 3.10% |
Maximum [Member] | Other Postretirement Benefit Plans, Defined Benefit [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates | 3.70% | 4.30% | 4.30% |
UNITED STATES | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.20% | 3.50% | 4.00% |
Expected return on plan assets | 7.30% | 7.80% | 7.80% |
UNITED STATES | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates | 3.20% | 3.30% | 3.40% |
UNITED STATES | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates | 3.70% | 4.40% | 4.20% |
Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.20% | 2.10% | 1.90% |
Rate of compensation increases, if applicable | 3.00% | 3.00% | 3.00% |
Discount rates | 2.60% | ||
Expected return on plan assets | 3.00% | 2.50% | 2.80% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Foreign Plan [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates | 1.60% | 1.50% | |
Foreign Plan [Member] | Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rates | 2.30% | 2.00% |
Employee Benefit Plans Plan Ass
Employee Benefit Plans Plan Asset Allocations (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 100.00% | 100.00% |
Target allocation for plan asset | 100.00% | |
Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 1.00% | 12.00% |
Target allocation for plan asset | 0.00% | |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 49.00% | 44.00% |
Target allocation for plan asset | 55.00% | |
Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 36.00% | 30.00% |
Target allocation for plan asset | 35.00% | |
Real Estate Investment [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 12.00% | 13.00% |
Target allocation for plan asset | 10.00% | |
Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 2.00% | 1.00% |
Target allocation for plan asset | 0.00% |
Employee Benefit Plans Fair Val
Employee Benefit Plans Fair Values of Pension Plan Assets by Asset Class (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | $ 132.8 | $ 144.9 |
Defined benefit plan, fair value of plan assets, excluding net asset value investments | 34.1 | 52.9 |
Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 31.1 | 51.6 |
Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 3 | 1.3 |
Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 1.1 | 17.2 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 1.1 | 17.2 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 13.5 | 15.6 |
Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 13.5 | 15.6 |
Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Equity Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Equity Securities, Other [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 4.7 | 5.6 |
Equity Securities, Other [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 4.7 | 5.6 |
Equity Securities, Other [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Equity Securities, Other [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
International equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 11.8 | 13.2 |
International equities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 11.8 | 13.2 |
International equities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
International equities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Other pension assets [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 3 | 1.3 |
Other pension assets [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Other pension assets [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 3 | 1.3 |
Other pension assets [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, fair value of plan assets | 0 | 0 |
Hedge Funds, Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, alternative investments, fair value of plan assets | 3.5 | |
Hedge Funds, Equity [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, alternative investments, fair value of plan assets | 16.3 | |
Real Estate Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, alternative investments, fair value of plan assets | 15.6 | 18.7 |
Private Equity Funds, Foreign [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, alternative investments, fair value of plan assets | 10.3 | 12.6 |
Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, alternative investments, fair value of plan assets | 47.4 | 44.2 |
Private Equity Funds, Domestic [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, alternative investments, fair value of plan assets | $ 9.1 | $ 13 |
Employee Benefit Plans Expected
Employee Benefit Plans Expected Future Benefit Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
UNITED STATES | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 10.9 |
2,020 | 11.6 |
2,021 | 11.7 |
2,022 | 11.4 |
2,023 | 11.7 |
2024-2028 | 56.2 |
Foreign Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 3.8 |
2,020 | 3.8 |
2,021 | 3.9 |
2,022 | 4.4 |
2,023 | 3.9 |
2024-2028 | 21.6 |
Other Pension, Postretirement and Supplemental Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 3.1 |
2,020 | 2.9 |
2,021 | 2.7 |
2,022 | 2.6 |
2,023 | 2.5 |
2024-2028 | 11 |
Postretirement Health Coverage [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 2.9 |
2,020 | 2.9 |
2,021 | 2.7 |
2,022 | 2.6 |
2,023 | 2.5 |
2024-2028 | $ 11 |
Employee Benefit Plans Effect o
Employee Benefit Plans Effect of Change in Assumed Health Care Cost Trend Rates (Details) - Other Postretirement Benefit Plans, Defined Benefit [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate used to determine end of period benefit obligations | 4.10% | 3.40% | 3.80% |
Health care cost trend rate assumed for next year | 6.90% | 7.40% | 7.80% |
Ultimate trend rate | 4.50% | 4.50% | 4.50% |
Year rate reaches ultimate trend rate | 2,037 | 2,037 | 2,037 |
Effect of 1% point increase on service and interest cost components | $ 0.1 | ||
Effect of 1% point decrease on service and interest cost components | (0.1) | ||
Effect of 1% point increase on accumulated postretirement benefit obligation | 1.5 | ||
Effect of 1% point decrease on accumulated postretirement benefit obligation | $ (1.3) |
Employee Benefit Plans Unfunded
Employee Benefit Plans Unfunded early retirement benefit plans (Details) - Belgium and German subsidiaries [Member] - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Liability, other postretirement defined benefit plan | $ 9.9 | $ 10.2 |
Current liabilities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Liability, other postretirement defined benefit plan | $ 3.2 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narratives (Details) - USD ($) $ / shares in Units, $ in Millions | Jun. 01, 2010 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Option term | 10 years | |||
Award vesting period | 4 years | |||
Shares authorized under stock option plans, exercise price range, lower range limit (in dollars per share) | $ 16.78 | |||
Shares authorized under stock option plans, exercise price range, upper range limit (in dollars per share) | $ 38.45 | |||
Total compensation cost not yet recognized | $ 8.5 | |||
Compensation cost not yet recognized, period for recognition | 1 year | |||
Options, grants in period, gross | 0 | 0 | ||
Vested in period, fair value | $ 5.8 | $ 8.2 | $ 2.7 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value (in dollars per share) | $ 23.70 | $ 23.70 | ||
Equity instruments other than options, grants in period (in shares) | 0 |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Options | |
Outstanding at beginning of period (in shares) | shares | 3,494,974 |
Forfeited (in shares) | shares | (63,054) |
Outstanding at end of period (in shares) | shares | 3,431,920 |
Weighted average exercise price per option | |
Outstanding at beginning of period (in dollars per share) | $ 20.92 |
Forfeited (in dollars per share) | 20.17 |
Outstanding at end of period (in dollars per share) | 20.93 |
Weighted average grant date fair value | |
Outstanding at beginning of period (in dollars per share) | 9.32 |
Forfeited (in dollars per share) | 9.06 |
Outstanding at end of period (in dollars per share) | $ 9.32 |
Additional disclosures | |
Options exercisable (in shares) | shares | 2,911,828 |
Options exercisable, weighted average exercise price per option (in dollars per share) | $ 21.63 |
Options outstanding, weighted average remaining contractual term | 5 years 8 months 12 days |
Options exercisable, weighted average remaining contractual term | 5 years 2 months 12 days |
Options exercisable, weighted average grant date fair value (in dollars per share) | $ 9.60 |
Stock-Based Compensation Fair V
Stock-Based Compensation Fair Value Assumptions (Details) | 12 Months Ended |
Dec. 31, 2017$ / shares | |
Significant Assumptions Used to Determine Fair Value of Stock Options | |
Weighted average expected option life in years | 5 years 6 months |
Weighted average grant date fair value | $ 7.78 |
Risk-free interest rate | 2.10% |
Equity volatility factor | 50.00% |
Dividend yield | 0.00% |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Shares | |
Outstanding at beginning of period (in shares) | shares | 597,658 |
Vested (in shares) | shares | (328,201) |
Forfeited (in shares) | shares | (9,406) |
Outstanding at end of period (in shares) | shares | 260,051 |
Weighted average grant date fair value | |
Outstanding at beginning of period (in dollars per share) | $ / shares | $ 17.29 |
Vested (in dollars per share) | $ / shares | 17.53 |
Forfeited (in dollars per share) | $ / shares | 17 |
Outstanding at end of period (in dollars per share) | $ / shares | $ 17 |
Derivative And Other Financia_3
Derivative And Other Financial Instruments Narratives (Details) gal in Millions, T in Millions, BTU in Trillions | 12 Months Ended | ||||
Dec. 31, 2018USD ($)BTUgalT | Dec. 31, 2018EUR (€)BTUgalT | Oct. 31, 2018USD ($) | Dec. 31, 2017USD ($)BTUgalT | Dec. 31, 2017EUR (€)BTUgalT | |
Derivative [Line Items] | |||||
Collateral already posted, aggregate fair value | $ | $ 200,000 | $ 0 | |||
Metal [Member] | |||||
Derivative [Line Items] | |||||
Derivative, higher remaining maturity range | 3 months | ||||
Tons of metal in forward contracts with the right to buy (in tons) | T | 0.2 | 0.2 | 0.1 | 0.1 | |
Tons of metal in forward contracts with the right to sell (in tons) | T | 0.3 | 0.3 | 0.2 | 0.2 | |
Energy Related Derivative [Member] | |||||
Derivative [Line Items] | |||||
British thermal units in forward buy contracts (in British thermal units) | BTU | 4.6 | 4.6 | 3.5 | 3.5 | |
Derivative, underlying basis, swap contracts, energy | gal | 4.3 | 4.3 | 1.5 | 1.5 | |
Currency Swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | € | € 77,600,000 | € 100,800,000 | |||
Term Loan Facility [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Derivative, notional amount | $ | $ 700,000,000 | ||||
Zhenjiang term loans [Member] | |||||
Derivative [Line Items] | |||||
Debt instrument, description of variable rate basis, maximum period | 6 months | ||||
Measurement Input Risk Free Interest Rate [Member] | Exchangeable Notes [Member] | |||||
Derivative [Line Items] | |||||
Long term debt measurement input | 0.026 | 0.026 | |||
Measurement Input Price Volatility [Member] | Exchangeable Notes [Member] | |||||
Derivative [Line Items] | |||||
Long term debt measurement input | 0.60 | 0.60 |
Derivative And Other Financia_4
Derivative And Other Financial Instruments Schedule of Derivative Instruments (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Assets | ||
Fair value, gross asset | $ 52,900,000 | $ 35,300,000 |
Fair value, effect of counterparty netting | (23,500,000) | (27,200,000) |
Fair value, effect of cash collateral | 0 | 0 |
Collateral already posted, aggregate fair value | 200,000 | 0 |
Derivative asset, fair value | 29,400,000 | 8,100,000 |
Derivative Liabilities | ||
Fair value, gross liability | (30,800,000) | (36,200,000) |
Fair value, effect of counterparty netting | 23,500,000 | 27,200,000 |
Fair value, effect of cash collateral | 0 | |
Derivative liability, fair value | (7,100,000) | (9,000,000) |
Metal [Member] | ||
Derivative Assets | ||
Fair value, gross asset | 52,300,000 | 33,500,000 |
Derivative Liabilities | ||
Fair value, gross liability | (24,300,000) | (36,000,000) |
Energy Related Derivative [Member] | ||
Derivative Assets | ||
Fair value, gross asset | 200,000 | 200,000 |
Derivative Liabilities | ||
Fair value, gross liability | (1,600,000) | (100,000) |
Currency Swap [Member] | ||
Derivative Assets | ||
Fair value, gross asset | 400,000 | 1,600,000 |
Derivative Liabilities | ||
Fair value, gross liability | (4,500,000) | (100,000) |
Interest Rate Contract [Member] | ||
Derivative Assets | ||
Fair value, gross asset | 0 | 0 |
Derivative Liabilities | ||
Fair value, gross liability | $ (400,000) | $ 0 |
Derivative And Other Financia_5
Derivative And Other Financial Instruments Schedule of Derivative Instruments in Statement of Financial Position (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses and other current assets | $ 62.7 | $ 36.1 |
Other long-term assets | 38.7 | 52.7 |
Derivative asset, fair value | 29.4 | 8.1 |
Accrued liabilities | 198.1 | 197.4 |
Other long-term liabilities | 46.1 | 49.1 |
Derivative liability, fair value | 7.1 | 9 |
Metal [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses and other current assets | 29.3 | 2.2 |
Other long-term assets | 0 | 4.3 |
Accrued liabilities | 0 | 9 |
Other long-term liabilities | 1.2 | 0 |
Energy Related Derivative [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses and other current assets | 0.1 | 0.1 |
Accrued liabilities | 1.4 | 0 |
Currency Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Prepaid expenses and other current assets | 0 | 0.8 |
Other long-term assets | 0 | 0.7 |
Accrued liabilities | 3 | 0 |
Other long-term liabilities | 1.1 | 0 |
Interest Rate Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Accrued liabilities | $ 0.4 | $ 0 |
Schedule of Realized (Gains) an
Schedule of Realized (Gains) and Losses on Derivatives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Derivative Instruments, (Gain) Loss [Line Items] | |||
Realized (gains) and losses on derivative financial instruments | $ (24.2) | $ 47.7 | $ 31 |
Metal [Member] | |||
Derivative Instruments, (Gain) Loss [Line Items] | |||
Realized (gains) and losses on derivative financial instruments | (23.5) | 47.3 | 30 |
Energy Related Derivative [Member] | |||
Derivative Instruments, (Gain) Loss [Line Items] | |||
Realized (gains) and losses on derivative financial instruments | (1.4) | 1 | 0.2 |
Currency Swap [Member] | |||
Derivative Instruments, (Gain) Loss [Line Items] | |||
Realized (gains) and losses on derivative financial instruments | 0.6 | (0.6) | 0.8 |
Interest Rate Contract [Member] | |||
Derivative Instruments, (Gain) Loss [Line Items] | |||
Realized (gains) and losses on derivative financial instruments | $ 0.1 | $ 0 | $ 0 |
Schedule of Fair Value for Asse
Schedule of Fair Value for Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 108.6 | $ 102.4 |
Restricted cash | 7 | 5.6 |
Fair Value, Inputs, Level 1 [Member] | First Lien Term Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 1,088.2 | 0 |
Fair Value, Inputs, Level 1 [Member] | 10 3/4% Senior Secured Junior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 410.1 | 0 |
Fair Value, Inputs, Level 1 [Member] | 7 7/8% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 438.1 |
Fair Value, Inputs, Level 1 [Member] | 9 1/2% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 847.3 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lines of credit | 253.7 | 319.3 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt | 60.7 | 45.4 |
Fair Value, Inputs, Level 3 [Member] | Zhenjiang term loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | 157.6 | 170.3 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 108.6 | 102.4 |
Restricted cash | 7 | 5.6 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | First Lien Term Loan [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | 1,070.2 | 0 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | 10 3/4% Senior Secured Junior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 392.5 | 0 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | 7 7/8% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 436.7 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | 9 1/2% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Notes payable | 0 | 800.8 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Lines of credit | 253.7 | 319.3 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible debt | 44.6 | 44.5 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Zhenjiang term loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | $ 157.2 | $ 169.8 |
Senior Notes [Member] | 10 3/4% Senior Secured Junior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, interest rate, stated percentage | 10.75% | |
Senior Notes [Member] | 7 7/8% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, interest rate, stated percentage | 7.875% | |
Senior Notes [Member] | 9 1/2% Senior Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument, interest rate, stated percentage | 9.50% |
Income Taxes Narratives (Detail
Income Taxes Narratives (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2019USD ($) | Mar. 31, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Income Tax Note [Line Items] | ||||||
Tax Cuts and Jobs Act of 2017, change in tax rate, net impact of tax reform | $ 12.3 | |||||
Effect of statutory rate changes | $ 1 | 99.1 | $ 0 | |||
Effective income tax rate reconciliation, change in enacted tax rate | 85.7 | |||||
Change in valuation allowance - rate change | 0 | (86.8) | 0 | |||
Deferred tax assets, valuation allowance | 257.1 | 257.6 | 244.9 | $ 218.5 | ||
net operating losses and future tax deductions for depreciation in non-US tax jurisdictions | 65.7 | 83.9 | ||||
U.S. federal effects of amortization, pension and postretirement benefits | 154.1 | 141 | ||||
state effects of amortization, pension and postretirement benefits | 37.3 | 32.7 | ||||
Deferred tax assets, capital loss carryforwards | 18 | |||||
Unrecognized tax benefits that would impact effective tax rate | 3 | |||||
Interest on income taxes accrued | 0.9 | 0.8 | ||||
Income tax penalties and interest expense | 0.2 | 0.2 | 0.2 | |||
Income tax expense | 18.5 | 40.4 | $ 40 | |||
Domestic Tax Authority [Member] | ||||||
Income Tax Note [Line Items] | ||||||
Tax Cuts and Jobs Act of 2017, change in tax rate, net impact of tax reform | 1.1 | |||||
Operating loss carryforwards | 651.2 | |||||
Undistributed earnings of foreign subsidiaries | 0 | |||||
Foreign Tax Authority [Member] | ||||||
Income Tax Note [Line Items] | ||||||
Belgium Tax Change, net impact of tax reform | $ 13.4 | |||||
Operating loss carryforwards | 332.6 | |||||
Operating loss carryforward indefinitely | 172.9 | |||||
State and Local Jurisdiction [Member] | ||||||
Income Tax Note [Line Items] | ||||||
Deferred tax assets, operating loss carryforwards, state and local | $ 29.1 | |||||
Minimum [Member] | Scenario, Forecast [Member] | ||||||
Income Tax Note [Line Items] | ||||||
Income tax expense | $ 3.4 | € 3 | ||||
Maximum [Member] | Scenario, Forecast [Member] | ||||||
Income Tax Note [Line Items] | ||||||
Income tax expense | $ 5.4 | € 4.7 |
Income Taxes Schedule of Income
Income Taxes Schedule of Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Income Before Income Taxes [Line Items] | |||
(Loss) income before income taxes | $ (73.1) | $ (174) | $ (32.3) |
Income (loss) from discontinued operations before income taxes | 0 | 4.5 | (3.3) |
Total loss before income taxes | (73.1) | (169.5) | (35.6) |
Domestic Tax Authority [Member] | |||
Schedule of Income Before Income Taxes [Line Items] | |||
(Loss) income before income taxes | (147.2) | (244.8) | (145.3) |
Foreign Tax Authority [Member] | |||
Schedule of Income Before Income Taxes [Line Items] | |||
(Loss) income before income taxes | $ 74.1 | $ 70.8 | $ 113 |
Income Taxes Schedule of Provis
Income Taxes Schedule of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Income Tax Expense (Benefit), Continuing Operations | |||
Deferred income tax expense (benefit) | $ 2 | $ 32.3 | $ 21.5 |
Provision for income taxes | 18.5 | 40.4 | 40 |
Total provision for income taxes | 18.5 | 41.1 | 40 |
Continuing Operations [Member] | |||
Current Income Tax Expense (Benefit) Continuing Operations | |||
Federal | (0.1) | (1.9) | (0.1) |
State | 0.1 | 0 | 0.3 |
International | 16.5 | 10.7 | 18.3 |
Current income tax expense (benefit) | 16.5 | 8.8 | 18.5 |
Deferred Income Tax Expense (Benefit), Continuing Operations | |||
Federal | (1.5) | (1.6) | 0.2 |
State | (0.1) | 0.1 | 0.1 |
International | 3.6 | 33.1 | 21.2 |
Deferred income tax expense (benefit) | 2 | 31.6 | 21.5 |
Discontinued Operations [Member] | |||
Deferred Income Tax Expense (Benefit), Continuing Operations | |||
Provision for income taxes | $ 0 | $ 0.7 | $ 0 |
Income Taxes Reconciliation of
Income Taxes Reconciliation of Income Taxes at Statutory Rate and Provision Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit at the federal statutory rate | $ (15.4) | $ (60.9) | $ (11.3) |
Foreign income tax rate differential and permanent differences, net | 16.5 | (2.5) | (3) |
State income taxes, net | (4.4) | (9.9) | (2.8) |
Domestic permanent differences, net | 0.3 | 0.6 | 0.8 |
Disallowed tax loss on property distribution | 2.2 | 0 | 0 |
Tax on deemed dividend of foreign earnings, net of foreign tax credit | 16.9 | 10.5 | 28.5 |
Change in uncertain tax position | 0 | 1.2 | 0.2 |
Effect of statutory rate changes | 1 | 99.1 | 0 |
SAB 118 adjustment at 35% | (1.8) | 1.8 | 0 |
Change in valuation allowance - excluding rate change | 3.7 | 86.2 | 28.8 |
Change in valuation allowance - rate change | 0 | (86.8) | 0 |
Other, net | (0.5) | 1.1 | (1.2) |
Provision for income taxes of continuing operations | $ 18.5 | $ 40.4 | $ 40 |
Income Taxes Schedule of Deferr
Income Taxes Schedule of Deferred Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||||
Property, plant and equipment and intangible assets | $ 84.4 | $ 84.5 | ||
Undistributed foreign earnings | 0 | 1.3 | ||
Other | 23.7 | 15.4 | ||
Total deferred tax liabilities | 108.1 | 101.2 | ||
Net operating loss carryforwards | 254.7 | 274.6 | ||
Interest expense carryforwards | 35.1 | 9.2 | ||
Property, plant and equipment and intangible assets | 35 | 44.5 | ||
Deferred revenue | 17.9 | 5.9 | ||
Accrued pension benefits | 32.2 | 33.5 | ||
Accrued liabilities | 17.1 | 20.8 | ||
Other | 32.5 | 37 | ||
Total deferred tax assets, gross | 424.5 | 425.5 | ||
Valuation allowance | (257.1) | (257.6) | $ (244.9) | $ (218.5) |
Total deferred tax assets | 167.4 | 167.9 | ||
Net deferred tax assets | $ 59.3 | $ 66.7 |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Asset Valuation Allowance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of the period | $ 257.6 | $ 244.9 | $ 218.5 |
Additions recorded in the provision for income taxes - excluding rate change | 3.7 | 86.2 | 30.3 |
Reversals recorded in the provision for income taxes - rate change | 0 | (86.8) | 0 |
Accumulated other comprehensive income (loss) | 0.5 | 0.6 | (0.5) |
Currency translation | (4.7) | 5.3 | (3.4) |
Retained earnings | 0 | 7.4 | 0 |
Balance at end of the period | $ 257.1 | $ 257.6 | $ 244.9 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefit (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Balance at beginning of the period | $ 4.2 | $ 2.5 | $ 2.4 |
Additions for tax positions of prior years | 0 | 1.3 | 0.1 |
Reductions for tax positions of prior years | (0.3) | (0.2) | 0 |
Additions for tax positions of current year | 0 | 0.6 | 0 |
Balance at end of period | $ 3.9 | $ 4.2 | $ 2.5 |
Commitments And Contingencies N
Commitments And Contingencies Narratives (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018USD ($)Foreign_CountryState_in_USSite | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | |||
Operating leases, rent expense | $ | $ 9.9 | $ 10.1 | $ 9.9 |
Collective-bargaining arrangment, percentage of US participants | 64.00% | ||
Collective-bargaining arrangment, percentage of non-U.S. participants | substantially all | ||
Number of superfund sites with operation and maintenance | Site | 2 | ||
Number of States in which Entity Performs Environmental Remediations | State_in_US | 4 | ||
Number of foreign countries with environmental remediation | Foreign_Country | 1 | ||
Number of sites with environmental remediation | Site | 7 | ||
Accrual for environmental loss contingencies, amount indemnified by third party | $ | $ 11.9 | $ 10.2 | |
Environmental remediation, description, estimated timeframe of disbursements | 10 years |
Commitments And Contingencies O
Commitments And Contingencies Operating Lease Minimum Payments (Details) - Continuing Operations [Member] $ in Millions | Dec. 31, 2018USD ($) |
Schedule of Operating Lease Future Minimum Payments [Line Items] | |
2,019 | $ 4.9 |
2,020 | 4.3 |
2,021 | 3.1 |
2,022 | 1.3 |
2,023 | 1.2 |
Thereafter | $ 0.8 |
Commitments And Contingencies P
Commitments And Contingencies Purchase Obligations (Details) - Continuing Operations [Member] $ in Millions | Dec. 31, 2018USD ($) |
Long-term Purchase Commitment [Line Items] | |
2,019 | $ 218 |
2,020 | 169.9 |
2,021 | 150.2 |
2,022 | 3.3 |
2,023 | 2.3 |
Thereafter | $ 16.4 |
Commitments And Contingencies E
Commitments And Contingencies Environmental Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Balance at the beginning of the period | $ 22.1 | $ 23.8 | $ 26.2 |
Revisions and liabilities incurred | 5.7 | (0.1) | (0.3) |
Payments | (2.1) | (2) | (2) |
Translation and other charges | (0.1) | 0.4 | (0.1) |
Balance at the end of the period | $ 25.6 | $ 22.1 | $ 23.8 |
Segment and Geographic Inform_3
Segment and Geographic Information Narratives (Details) | 12 Months Ended |
Dec. 31, 2018Operating_Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Number of facilities | 9 |
Number of aluminum rolling mills | 2 |
Segment and Geographic Inform_4
Segment and Geographic Information Schedule of Revenues and Segment Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 3,445.9 | $ 2,857.3 | $ 2,663.9 |
Assets | 2,779.4 | 2,644.4 | |
Payments for property, plant and equipment | 108.2 | 207.7 | 358.1 |
North America Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,915.7 | 1,467.8 | 1,365.1 |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,407.4 | 1,300.7 | 1,222.6 |
Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 148.8 | 122.3 | 100.5 |
Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | (26) | (33.5) | (24.3) |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3,445.9 | 2,857.3 | 2,663.9 |
Segment income | 349.4 | 230.4 | 246.3 |
Assets | 2,536.6 | 2,419.7 | |
Payments for property, plant and equipment | 106.4 | 206.3 | 354.3 |
Operating Segments [Member] | North America Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,915.7 | 1,467.8 | 1,363.5 |
Segment income | 196 | 88 | 86.1 |
Assets | 1,460 | 1,309.9 | |
Payments for property, plant and equipment | 60.2 | 174.6 | 299.9 |
Operating Segments [Member] | Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,382.2 | 1,272.6 | 1,206 |
Segment income | 129.8 | 127.4 | 149.4 |
Assets | 736.4 | 738.4 | |
Payments for property, plant and equipment | 34.2 | 25.8 | 46.2 |
Operating Segments [Member] | Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 148 | 116.9 | 94.4 |
Segment income | 23.6 | 15 | 10.8 |
Assets | 340.2 | 371.4 | |
Payments for property, plant and equipment | 12 | 5.9 | 8.2 |
Consolidation, Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | (25) | (28) | (17.7) |
Assets | (2,385) | (1,830.3) | |
Payments for property, plant and equipment | 0 | 0 | 0 |
Consolidation, Eliminations [Member] | North America Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0 | 0 | 1.6 |
Consolidation, Eliminations [Member] | Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 25.2 | 28.1 | 16.6 |
Consolidation, Eliminations [Member] | Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0.8 | 5.4 | 6.1 |
Consolidation, Eliminations [Member] | Intersegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ (26) | $ (33.5) | $ (24.3) |
Segment and Geographic Inform_5
Segment and Geographic Information Reconciliation of Reportable Segments to Consolidated Financials (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ (139.7) | $ (115.7) | $ (104.9) |
Restructuring charges | (4.8) | (2.9) | (1.5) |
Interest expense, net | (144.7) | (124.1) | (82.5) |
Unallocated gains on derivative financial instruments | 47 | (44.7) | (12.1) |
Loss on extinguishment of debt | (48.9) | 0 | (12.6) |
Impairment of receivable held in escrow | 11.1 | (22.8) | 0 |
Loss from continuing operations before income taxes | (73.1) | (174) | (32.3) |
Payments for property, plant and equipment | 108.2 | 207.7 | 358.1 |
Assets | 2,779.4 | 2,644.4 | |
Operating Segments [Member] | |||
Segment Reporting Information [Line Items] | |||
Segment income | 349.4 | 230.4 | 246.3 |
Payments for property, plant and equipment | 106.4 | 206.3 | 354.3 |
Assets | 2,536.6 | 2,419.7 | |
Segment Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | (139.7) | (115.7) | (104.9) |
Corporate general and administrative expense, excluding depreciation, amortization and start-up expenses | (58.1) | (56.3) | (51.8) |
Restructuring charges | (4.8) | (2.9) | (1.5) |
Interest expense, net | (144.7) | (124.1) | (82.5) |
Unallocated gains on derivative financial instruments | 22.6 | 3.1 | 19.1 |
Unallocated currency exchange losses | (2.3) | (2.5) | (0.5) |
Start-Up expenses | (55) | (73.6) | (46) |
Loss on extinguishment of debt | (48.9) | 0 | (12.6) |
Other expense, net | 8.4 | (9.6) | 2.1 |
Impairment of receivable held in escrow | 0 | (22.8) | 0 |
Payments for property, plant and equipment | 1.8 | 1.4 | $ 3.8 |
Assets | $ 242.8 | $ 224.7 |
Segment and Geographic Inform_6
Segment and Geographic Information Revenue by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue By Geography [Line Items] | |||
Revenues | $ 3,445.9 | $ 2,857.3 | $ 2,663.9 |
United States [Member] | |||
Revenue By Geography [Line Items] | |||
Revenues | 1,811.8 | 1,399.5 | 1,324.8 |
Asia [Member] | |||
Revenue By Geography [Line Items] | |||
Revenues | 241.2 | 199.3 | 184.3 |
GERMANY | |||
Revenue By Geography [Line Items] | |||
Revenues | 396.6 | 439.5 | 433.6 |
Europe [Member] | |||
Revenue By Geography [Line Items] | |||
Revenues | 711.7 | 603.1 | 548.5 |
Mexico, Canada and South America [Member] | |||
Revenue By Geography [Line Items] | |||
Revenues | 255.6 | 191.1 | 148.5 |
Other Countries [Member] | |||
Revenue By Geography [Line Items] | |||
Revenues | 29 | 24.8 | 24.2 |
International [Member] | |||
Revenue By Geography [Line Items] | |||
Revenues | $ 1,634.1 | $ 1,457.8 | $ 1,339.1 |
Segment and Geographic Inform_7
Segment and Geographic Information Long-Lived Assets by Geography (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Property Plant and Equipment by Geography [Line Items] | ||
Property, plant and equipment, net | $ 1,395 | $ 1,470.9 |
United States [Member] | ||
Property Plant and Equipment by Geography [Line Items] | ||
Property, plant and equipment, net | 864.8 | 906.9 |
Asia [Member] | ||
Property Plant and Equipment by Geography [Line Items] | ||
Property, plant and equipment, net | 258.8 | 278.9 |
Europe [Member] | ||
Property Plant and Equipment by Geography [Line Items] | ||
Property, plant and equipment, net | 271.4 | 285.1 |
International [Member] | ||
Property Plant and Equipment by Geography [Line Items] | ||
Property, plant and equipment, net | $ 530.2 | $ 564 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax, beginning of period | $ (140.5) | $ (223.5) | $ (182.7) |
Current year currency translation adjustments | (27.3) | 82 | (29.7) |
Recognition of net actuarial losses | (2.1) | (2) | (19.7) |
Amortization of net actuarial losses and prior service cost | 4.3 | 4.7 | 3.6 |
Deferred tax expense on pension and other postretirement liability adjustments | (1.4) | (1.7) | 5 |
Accumulated other comprehensive income (loss), net of tax, end of period | (167) | (140.5) | (223.5) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax, beginning of period | (64.2) | (150.9) | (118.7) |
Current year currency translation adjustments | (29.1) | 86.7 | (32.2) |
Recognition of net actuarial losses | 0 | 0 | 0 |
Amortization of net actuarial losses and prior service cost | 0 | 0 | 0 |
Deferred tax expense on pension and other postretirement liability adjustments | 0 | 0 | 0 |
Accumulated other comprehensive income (loss), net of tax, end of period | (93.3) | (64.2) | (150.9) |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Accumulated other comprehensive income (loss), net of tax, beginning of period | (76.3) | (72.6) | (64) |
Current year currency translation adjustments | 1.8 | (4.7) | 2.5 |
Recognition of net actuarial losses | (2.1) | (2) | (19.7) |
Amortization of net actuarial losses and prior service cost | 4.3 | 4.7 | 3.6 |
Deferred tax expense on pension and other postretirement liability adjustments | (1.4) | (1.7) | 5 |
Accumulated other comprehensive income (loss), net of tax, end of period | (73.7) | $ (76.3) | $ (72.6) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Amortization of net actuarial losses and prior service cost, before tax | (4.3) | ||
Deferred tax benefit on pension and other postretirement liability adjustments | 0.8 | ||
Losses reclassified into earnings, net of tax | $ (3.5) |
Supplemental Information (Detai
Supplemental Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |||
Interest | $ 135.4 | $ 130.2 | $ 100.9 |
Income taxes | 15.4 | 8.5 | 29.5 |
Non-cash financing activity associated with lease contracts | $ 5.8 | $ 5.5 | $ 3.6 |
Stockholders' Equity Changes in
Stockholders' Equity Changes in the Number of Outstanding Common Shares (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Common stock, shares, outstanding, beginning of period (in shares) | 32,001,318 | 31,904,250 | 31,768,819 |
Issuance associated with vested restricted stock units (in shares) | 3,418 | ||
Issuance upon conversion of Aleris International preferred stock to common stock (in shares) | 795 | ||
Common stock, shares, outstanding, end of period (in shares) | 32,380,867 | 32,001,318 | 31,904,250 |
Stock Options [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Issuance associated with options exercised (in shares) | 60,094 | ||
Restricted Stock [Member] | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Issuance associated with vested restricted stock units (in shares) | 382,967 | 97,068 | 74,542 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Stockholders' Equity DIsclosure [Line Items] | ||
Dividends and interest paid | $ 0.2 | |
Real Industry Inc [Member] | ||
Stockholders' Equity DIsclosure [Line Items] | ||
Other than temporary impairment losses, investments, portion recognized in earnings | $ 22.8 | |
Equity, fair value | 11.1 | |
Other Nonoperating Income (Expense) [Member] | Real Industry Inc [Member] | ||
Stockholders' Equity DIsclosure [Line Items] | ||
Equity securities FvNi realized gain (loss) | $ (12.2) |
Potential Acquisition of Aler_2
Potential Acquisition of Aleris Corporation (Details) $ in Millions | Jul. 26, 2018USD ($) |
Novelis Inc [Member] | Aleris Corporation [Member] | |
Business Acquisition [Line Items] | |
Business combination, consideration transferred | $ 2,600 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Statements Condensed Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||||
Cash and cash equivalents | $ 108.6 | $ 102.4 | $ 55.6 | |
Accounts receivable, net | 308.8 | 245.7 | ||
Inventories | 772.9 | 631.2 | ||
Prepaid expenses and other current assets | 62.7 | 36.1 | ||
Intercompany receivables | 0 | 0 | ||
Total Current Assets | 1,253 | 1,015.4 | ||
Property, plant and equipment, net | 1,395 | 1,470.9 | ||
Intangible assets, net | 32.5 | 34.7 | ||
Deferred income taxes | 60.2 | 70.7 | ||
Other long-term assets | 38.7 | 52.7 | ||
Investments in subsidiaries | 0 | 0 | ||
Total Assets | 2,779.4 | 2,644.4 | ||
Current Liabilities | ||||
Accounts payable | 374.8 | 299.2 | ||
Accrued liabilities | 198.1 | 197.4 | ||
Current portion of long-term debt | 21.9 | 9.1 | ||
Intercompany payables | 0 | 0 | ||
Total Current Liabilities | 594.8 | 505.7 | ||
Long-term debt | 1,906.4 | 1,771.4 | ||
Deferred revenue | 65 | 17 | ||
Deferred income taxes | 0.9 | 4 | ||
Accrued pension benefits | 163.7 | 170.2 | ||
Accrued postretirement benefits | 29.6 | 34.3 | ||
Other long-term liabilities | 46.1 | 49.1 | ||
Total Long-Term Liabilities | 2,211.7 | 2,046 | ||
Total Aleris Corporation Equity | (27.1) | 92.7 | $ 216.6 | $ 327.2 |
Total Liabilities and Equity | 2,779.4 | 2,644.4 | ||
Reportable Legal Entities [Member] | Aleris Corporation (Parent) [Member] | ||||
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 | 4.8 | 96.3 | ||
Total Assets | 4.8 | 96.3 | ||
Current Liabilities | ||||
Accounts payable | 0 | 0 | ||
Accrued liabilities | 0 | |||
Current portion of long-term debt | 0 | 0 | ||
Intercompany payables | 31.9 | 3.6 | ||
Total Current Liabilities | 31.9 | 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 Aleris Corporation Equity | (27.1) | 92.7 | ||
Total Liabilities and Equity | 4.8 | 96.3 | ||
Reportable Legal Entities [Member] | Aleris International, Inc. [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 32.5 | 40.3 | ||
Accounts receivable, net | 0 | 0.2 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 3.3 | 3.4 | ||
Intercompany receivables | 628.1 | 134.6 | ||
Total Current Assets | 663.9 | 178.5 | ||
Property, plant and equipment, net | 0.9 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Other long-term assets | 8 | 3.4 | ||
Investments in subsidiaries | 1,395.9 | 1,514.4 | ||
Total Assets | 2,068.7 | 1,696.3 | ||
Current Liabilities | ||||
Accounts payable | 5.9 | 4.3 | ||
Accrued liabilities | 54 | 43.9 | ||
Current portion of long-term debt | 11 | 0 | ||
Intercompany payables | 308 | 54.8 | ||
Total Current Liabilities | 378.9 | 103 | ||
Long-term debt | 1,681.4 | 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 | 3.6 | 0 | ||
Total Long-Term Liabilities | 1,685 | 1,497 | ||
Total Aleris Corporation Equity | 4.8 | 96.3 | ||
Total Liabilities and Equity | 2,068.7 | 1,696.3 | ||
Reportable Legal Entities [Member] | Guarantors [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 133.5 | 83 | ||
Inventories | 427.9 | 286.6 | ||
Prepaid expenses and other current assets | 12 | 10 | ||
Intercompany receivables | 333.6 | 46 | ||
Total Current Assets | 907 | 425.6 | ||
Property, plant and equipment, net | 860.9 | 903.7 | ||
Intangible assets, net | 16.6 | 18.8 | ||
Deferred income taxes | 0 | 0 | ||
Other long-term assets | 3.9 | 8 | ||
Investments in subsidiaries | 4.4 | 4.5 | ||
Total Assets | 1,792.8 | 1,360.6 | ||
Current Liabilities | ||||
Accounts payable | 199.4 | 140.7 | ||
Accrued liabilities | 64.1 | 75.8 | ||
Current portion of long-term debt | 1 | 1 | ||
Intercompany payables | 589.2 | 137.8 | ||
Total Current Liabilities | 853.7 | 355.3 | ||
Long-term debt | 0.5 | 1 | ||
Deferred revenue | 65 | 17 | ||
Deferred income taxes | 0.1 | 0.2 | ||
Accrued pension benefits | 44.9 | 45.2 | ||
Accrued postretirement benefits | 29.6 | 34.3 | ||
Other long-term liabilities | 14.9 | 17.2 | ||
Total Long-Term Liabilities | 155 | 114.9 | ||
Total Aleris Corporation Equity | 784.1 | 890.4 | ||
Total Liabilities and Equity | 1,792.8 | 1,360.6 | ||
Reportable Legal Entities [Member] | Non-Guarantors [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 76.8 | 64.2 | ||
Accounts receivable, net | 175.3 | 162.5 | ||
Inventories | 345 | 344.6 | ||
Prepaid expenses and other current assets | 47.4 | 22.7 | ||
Intercompany receivables | 17.5 | 32.4 | ||
Total Current Assets | 662 | 626.4 | ||
Property, plant and equipment, net | 533.2 | 567.2 | ||
Intangible assets, net | 15.9 | 15.9 | ||
Deferred income taxes | 60.2 | 70.7 | ||
Other long-term assets | 26.8 | 41.3 | ||
Investments in subsidiaries | 0 | 0 | ||
Total Assets | 1,298.1 | 1,321.5 | ||
Current Liabilities | ||||
Accounts payable | 170.2 | 156.3 | ||
Accrued liabilities | 80 | 77.7 | ||
Current portion of long-term debt | 9.9 | 8.1 | ||
Intercompany payables | 50.1 | 16.8 | ||
Total Current Liabilities | 310.2 | 258.9 | ||
Long-term debt | 224.5 | 273.4 | ||
Deferred revenue | 0 | 0 | ||
Deferred income taxes | 0.8 | 3.8 | ||
Accrued pension benefits | 118.8 | 125 | ||
Accrued postretirement benefits | 0 | 0 | ||
Other long-term liabilities | 27.6 | 31.9 | ||
Total Long-Term Liabilities | 371.7 | 434.1 | ||
Total Aleris Corporation Equity | 616.2 | 628.5 | ||
Total Liabilities and Equity | 1,298.1 | 1,321.5 | ||
Consolidation, Eliminations [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | (0.7) | (2.1) | ||
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Intercompany receivables | (979.2) | (213) | ||
Total Current Assets | (979.9) | (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 | (1,405.1) | (1,615.2) | ||
Total Assets | (2,385) | (1,830.3) | ||
Current Liabilities | ||||
Accounts payable | (0.7) | (2.1) | ||
Accrued liabilities | 0 | 0 | ||
Current portion of long-term debt | 0 | 0 | ||
Intercompany payables | (979.2) | (213) | ||
Total Current Liabilities | (979.9) | (215.1) | ||
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 Aleris Corporation Equity | (1,405.1) | (1,615.2) | ||
Total Liabilities and Equity | $ (2,385) | $ (1,830.3) |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Statements Condensed Income Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | $ 3,445.9 | $ 2,857.3 | $ 2,663.9 |
Cost of sales | 3,160.7 | 2,595.9 | 2,374.2 |
Gross profit | 285.2 | 261.4 | 289.7 |
Selling, general and administrative expenses | 213.7 | 219.2 | 217.5 |
Restructuring charges | 4.8 | 2.9 | 1.5 |
(Gains) losses on derivative financial instruments | (47) | 44.7 | 12.1 |
Other operating expense, net | 3.5 | 5.7 | 3.9 |
Operating income (loss) | 110.2 | (11.1) | 54.7 |
Interest expense, net | 144.7 | 124.1 | 82.5 |
Debt extinguishment costs | 48.9 | 0 | 12.6 |
Other (income) expense, net | (10.3) | 38.8 | (8.1) |
Equity in net earnings of affiliates | 0 | 0 | 0 |
Loss from continuing operations before income taxes | (73.1) | (174) | (32.3) |
Provision for income taxes | 18.5 | 40.4 | 40 |
Loss from continuing operations | (91.6) | (214.4) | (72.3) |
Income (loss) from discontinued operations, net of tax | 0 | 3.8 | (3.3) |
Net loss | (91.6) | (210.6) | (75.6) |
Comprehensive income (loss) | (118.1) | (127.6) | (116.4) |
Reportable Legal Entities [Member] | Aleris Corporation (Parent) [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Selling, general and administrative expenses | 0.1 | 0 | 0 |
Restructuring charges | 0 | 0 | 0 |
(Gains) losses on derivative financial instruments | 0 | 0 | 0 |
Other operating expense, net | 0 | 0 | 0 |
Operating income (loss) | (0.1) | 0 | 0 |
Interest expense, net | 3.6 | 0 | 0 |
Debt extinguishment costs | 0 | 0 | |
Other (income) expense, net | 11.1 | 0 | 0 |
Equity in net earnings of affiliates | 76.8 | 210.6 | 75.6 |
Loss from continuing operations before income taxes | (91.6) | (210.6) | (75.6) |
Provision for income taxes | 0 | 0 | 0 |
Loss from continuing operations | (210.6) | (75.6) | |
Income (loss) from discontinued operations, net of tax | 0 | 0 | |
Net loss | (91.6) | (210.6) | (75.6) |
Comprehensive income (loss) | (118.1) | (127.6) | (116.4) |
Reportable Legal Entities [Member] | Aleris International, Inc. [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 |
Selling, general and administrative expenses | 50.4 | 17 | 2 |
Restructuring charges | 0 | 0 | 0 |
(Gains) losses on derivative financial instruments | 0 | 0 | 0 |
Other operating expense, net | 0 | 0 | 0 |
Operating income (loss) | (50.4) | (17) | (2) |
Interest expense, net | (1.8) | 0 | 0 |
Debt extinguishment costs | 0 | 12.6 | |
Other (income) expense, net | (50.6) | 3.2 | (4.4) |
Equity in net earnings of affiliates | 78.6 | 194.8 | 60.5 |
Loss from continuing operations before income taxes | (76.6) | (215) | (70.7) |
Provision for income taxes | 0.2 | (0.6) | 0.3 |
Loss from continuing operations | (214.4) | (71) | |
Income (loss) from discontinued operations, net of tax | 3.8 | (4.6) | |
Net loss | (76.8) | (210.6) | (75.6) |
Comprehensive income (loss) | (103.3) | (127.6) | (116.4) |
Reportable Legal Entities [Member] | Guarantors [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | 1,915.6 | 1,467.8 | 1,364.8 |
Cost of sales | 1,813.4 | 1,406.8 | 1,277 |
Gross profit | 102.2 | 61 | 87.8 |
Selling, general and administrative expenses | 69.6 | 117.5 | 135.9 |
Restructuring charges | 4 | 1.7 | 0.4 |
(Gains) losses on derivative financial instruments | (48.4) | 42.9 | 1.6 |
Other operating expense, net | 3.5 | 5.7 | 3.3 |
Operating income (loss) | 73.5 | (106.8) | (53.4) |
Interest expense, net | 114 | 95.3 | 51.5 |
Debt extinguishment costs | 48.9 | 0 | |
Other (income) expense, net | 30.1 | 8.4 | 12.1 |
Equity in net earnings of affiliates | (2.1) | (1.7) | (0.8) |
Loss from continuing operations before income taxes | (117.4) | (208.8) | (116.2) |
Provision for income taxes | (0.2) | (1.9) | 0 |
Loss from continuing operations | (206.9) | (116.2) | |
Income (loss) from discontinued operations, net of tax | 0 | 0 | |
Net loss | (117.2) | (206.9) | (116.2) |
Comprehensive income (loss) | (120.5) | (205.3) | (114.2) |
Reportable Legal Entities [Member] | Non-Guarantors [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | 1,555.3 | 1,417.5 | 1,316.8 |
Cost of sales | 1,372.3 | 1,217.1 | 1,114.9 |
Gross profit | 183 | 200.4 | 201.9 |
Selling, general and administrative expenses | 93.6 | 84.7 | 79.6 |
Restructuring charges | 0.8 | 1.2 | 1.1 |
(Gains) losses on derivative financial instruments | 1.4 | 1.8 | 10.5 |
Other operating expense, net | 0 | 0 | 0.6 |
Operating income (loss) | 87.2 | 112.7 | 110.1 |
Interest expense, net | 28.9 | 28.8 | 31 |
Debt extinguishment costs | 0 | 0 | |
Other (income) expense, net | (0.9) | 27.2 | (15.8) |
Equity in net earnings of affiliates | 0 | 0 | 0 |
Loss from continuing operations before income taxes | 59.2 | 56.7 | 94.9 |
Provision for income taxes | 18.5 | 42.9 | 39.7 |
Loss from continuing operations | 13.8 | 55.2 | |
Income (loss) from discontinued operations, net of tax | 0 | 1.3 | |
Net loss | 40.7 | 13.8 | 56.5 |
Comprehensive income (loss) | 17.5 | 95.1 | 13.8 |
Consolidation, Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Revenues | (25) | (28) | (17.7) |
Cost of sales | (25) | (28) | (17.7) |
Gross profit | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | |
(Gains) losses on derivative financial instruments | 0 | 0 | 0 |
Other operating expense, net | 0 | 0 | 0 |
Operating income (loss) | 0 | 0 | 0 |
Interest expense, net | 0 | 0 | 0 |
Debt extinguishment costs | 0 | 0 | |
Other (income) expense, net | 0 | 0 | 0 |
Equity in net earnings of affiliates | (153.3) | (403.7) | (135.3) |
Loss from continuing operations before income taxes | 153.3 | 403.7 | 135.3 |
Provision for income taxes | 0 | 0 | 0 |
Loss from continuing operations | 403.7 | 135.3 | |
Income (loss) from discontinued operations, net of tax | 0 | 0 | |
Net loss | 153.3 | 403.7 | 135.3 |
Comprehensive income (loss) | $ 206.3 | $ 237.8 | $ 216.8 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Statements Condensed Cash Flow Statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used) provided by operating activities | $ 22.3 | $ (31.4) | $ 12 |
Investing activities | |||
Payments for property, plant and equipment | (108.2) | (207.7) | (358.1) |
Proceeds from the sale of businesses, net of cash transferred | 0 | 0 | 5 |
Disbursements of intercompany loans | 0 | 0 | 0 |
Repayments from intercompany loans | 0 | 0 | |
Equity contributions in subsidiaries | 0 | 0 | 0 |
Return of investments in subsidiaries | 0 | 0 | 0 |
Other | (2) | (3) | (1.5) |
Net cash used by investing activities | (110.2) | (210.7) | (354.6) |
Financing activities | |||
Proceeds from revolving credit facilities | 295.3 | 575.1 | 360.4 |
Payments on revolving credit facilities | (355.1) | (536.3) | (107) |
Proceeds from notes and term loans, inclusive of premiums and discounts | 1,483 | 263.8 | 540.4 |
Payments on notes and term loans, including premiums | (1,292.2) | 0 | (443.8) |
Net payments on other long-term debt | (9.9) | (6.4) | (7.3) |
Debt issuance costs | (21) | (2.8) | (4) |
Proceeds from intercompany loans | 0 | 0 | 0 |
Repayments on intercompany loans | 0 | 0 | |
Proceeds from intercompany equity contributions | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Other | (2.4) | (2.9) | (0.6) |
Net cash used by financing activities | 97.7 | 290.5 | 338.1 |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | (2.2) | 4 | (2.1) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 7.6 | 52.4 | (6.6) |
Cash, cash equivalents and restricted cash at beginning of period | 108 | 55.6 | 62.2 |
Cash, cash equivalents and restricted cash at end of period | 115.6 | 108 | 55.6 |
Cash and cash equivalents | 108.6 | 102.4 | 55.6 |
Restricted cash (included in “Prepaid expenses and other current assets”) | 7 | 5.6 | 0 |
Reportable Legal Entities [Member] | Aleris Corporation (Parent) [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used) provided by operating activities | 2.3 | 2.9 | 0.7 |
Investing activities | |||
Payments for property, plant and equipment | 0 | 0 | 0 |
Proceeds from the sale of businesses, net of cash transferred | 0 | ||
Disbursements of intercompany loans | 0 | 0 | 0 |
Repayments from intercompany loans | 0 | 0 | |
Equity contributions in subsidiaries | 0 | 0 | 0 |
Return of investments in subsidiaries | 0 | 0 | 0 |
Other | 0 | 0 | 0 |
Net cash used by investing activities | 0 | 0 | 0 |
Financing activities | |||
Proceeds from revolving credit facilities | 0 | 0 | 0 |
Payments on revolving credit facilities | 0 | 0 | 0 |
Proceeds from notes and term loans, inclusive of premiums and discounts | 0 | 0 | |
Payments on notes and term loans, including premiums | 0 | 0 | |
Net payments on other long-term debt | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | |
Proceeds from intercompany loans | 0 | 0 | 0 |
Repayments on intercompany loans | 0 | 0 | |
Proceeds from intercompany equity contributions | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Other | (2.3) | (2.9) | (0.7) |
Net cash used by financing activities | (2.3) | (2.9) | (0.7) |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | 0 |
Cash and cash equivalents | 0 | 0 | |
Restricted cash (included in “Prepaid expenses and other current assets”) | 0 | 0 | |
Reportable Legal Entities [Member] | Aleris International, Inc. [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used) provided by operating activities | (110.4) | 505.7 | (340.2) |
Investing activities | |||
Payments for property, plant and equipment | (0.7) | 0 | 0 |
Proceeds from the sale of businesses, net of cash transferred | 5 | ||
Disbursements of intercompany loans | 0 | 0 | 0 |
Repayments from intercompany loans | 0 | 0 | |
Equity contributions in subsidiaries | (23.2) | (704.7) | (16.4) |
Return of investments in subsidiaries | 0 | 8.3 | 0 |
Other | 0 | 0 | 0 |
Net cash used by investing activities | (23.9) | (696.4) | (11.4) |
Financing activities | |||
Proceeds from revolving credit facilities | 200 | 270 | 235 |
Payments on revolving credit facilities | (230) | (185) | (105) |
Proceeds from notes and term loans, inclusive of premiums and discounts | 1,483 | 263.8 | 540.4 |
Payments on notes and term loans, including premiums | (1,292.2) | (443.8) | |
Net payments on other long-term debt | 0 | 0 | (0.5) |
Debt issuance costs | (20.1) | (2.8) | (4) |
Proceeds from intercompany loans | 25.4 | 14.5 | 135 |
Repayments on intercompany loans | (39.5) | (135) | |
Proceeds from intercompany equity contributions | 0 | 0 | 0 |
Dividends paid | 0 | 0 | 0 |
Other | (0.1) | 0 | 0 |
Net cash used by financing activities | 126.5 | 225.5 | 357.1 |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (7.8) | 34.8 | 5.5 |
Cash, cash equivalents and restricted cash at beginning of period | 40.3 | 5.5 | 0 |
Cash, cash equivalents and restricted cash at end of period | 32.5 | 40.3 | 5.5 |
Cash and cash equivalents | 32.5 | 40.3 | |
Restricted cash (included in “Prepaid expenses and other current assets”) | 0 | 0 | |
Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used) provided by operating activities | 53.4 | (499.3) | 285.3 |
Investing activities | |||
Payments for property, plant and equipment | (61.4) | (175.9) | (301.8) |
Proceeds from the sale of businesses, net of cash transferred | 0 | ||
Disbursements of intercompany loans | 0 | 0 | 0 |
Repayments from intercompany loans | 0 | 0 | |
Equity contributions in subsidiaries | (0.5) | (1) | 0 |
Return of investments in subsidiaries | 0.1 | 7 | 1.8 |
Other | (2.5) | (3) | (1.7) |
Net cash used by investing activities | (64.3) | (172.9) | (301.7) |
Financing activities | |||
Proceeds from revolving credit facilities | 0 | 0 | 0 |
Payments on revolving credit facilities | 0 | 0 | 0 |
Proceeds from notes and term loans, inclusive of premiums and discounts | 0 | 0 | 0 |
Payments on notes and term loans, including premiums | 0 | 0 | |
Net payments on other long-term debt | (1.1) | (0.7) | (0.6) |
Debt issuance costs | 0 | 0 | 0 |
Proceeds from intercompany loans | 0 | 0 | 0 |
Repayments on intercompany loans | 0 | 0 | |
Proceeds from intercompany equity contributions | 13.7 | 680.5 | 16.4 |
Dividends paid | (2) | (8) | (0.3) |
Other | 0.3 | 0.4 | 0.9 |
Net cash used by financing activities | 10.9 | 672.2 | 16.4 |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash at beginning of period | 0 | 0 | 0 |
Cash, cash equivalents and restricted cash at end of period | 0 | 0 | 0 |
Cash and cash equivalents | 0 | 0 | |
Restricted cash (included in “Prepaid expenses and other current assets”) | 0 | 0 | |
Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used) provided by operating activities | 117.7 | 121.5 | 70.4 |
Investing activities | |||
Payments for property, plant and equipment | (46.1) | (31.8) | (56.3) |
Proceeds from the sale of businesses, net of cash transferred | 0 | ||
Disbursements of intercompany loans | (25.4) | (14.5) | (135) |
Repayments from intercompany loans | 39.5 | 135 | |
Equity contributions in subsidiaries | 0 | 0 | 0 |
Return of investments in subsidiaries | 0 | 0 | 0 |
Other | 0.5 | 0 | 0.2 |
Net cash used by investing activities | (31.5) | 88.7 | (191.1) |
Financing activities | |||
Proceeds from revolving credit facilities | 95.3 | 305.1 | 125.4 |
Payments on revolving credit facilities | (125.1) | (351.3) | (2) |
Proceeds from notes and term loans, inclusive of premiums and discounts | 0 | 0 | 0 |
Payments on notes and term loans, including premiums | 0 | 0 | |
Net payments on other long-term debt | (8.8) | (5.7) | (6.2) |
Debt issuance costs | (0.9) | 0 | 0 |
Proceeds from intercompany loans | 0 | 0 | 0 |
Repayments on intercompany loans | 0 | 0 | |
Proceeds from intercompany equity contributions | 10 | 25.2 | 0 |
Dividends paid | (40.2) | (170.6) | (2.5) |
Other | (0.3) | (0.4) | (0.8) |
Net cash used by financing activities | (70) | (197.7) | 113.9 |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | (2.2) | 4 | (2.1) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 14 | 16.5 | (8.9) |
Cash, cash equivalents and restricted cash at beginning of period | 69.8 | 53.3 | 62.2 |
Cash, cash equivalents and restricted cash at end of period | 83.8 | 69.8 | 53.3 |
Cash and cash equivalents | 76.8 | 64.2 | |
Restricted cash (included in “Prepaid expenses and other current assets”) | 7 | 5.6 | |
Consolidation, Eliminations [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash (used) provided by operating activities | (40.7) | (162.2) | (4.2) |
Investing activities | |||
Payments for property, plant and equipment | 0 | 0 | 0 |
Proceeds from the sale of businesses, net of cash transferred | 0 | ||
Disbursements of intercompany loans | 25.4 | 14.5 | 135 |
Repayments from intercompany loans | (39.5) | (135) | |
Equity contributions in subsidiaries | 23.7 | 705.7 | 16.4 |
Return of investments in subsidiaries | (0.1) | (15.3) | (1.8) |
Other | 0 | 0 | 0 |
Net cash used by investing activities | 9.5 | 569.9 | 149.6 |
Financing activities | |||
Proceeds from revolving credit facilities | 0 | 0 | 0 |
Payments on revolving credit facilities | 0 | 0 | 0 |
Proceeds from notes and term loans, inclusive of premiums and discounts | 0 | 0 | 0 |
Payments on notes and term loans, including premiums | 0 | 0 | |
Net payments on other long-term debt | 0 | 0 | 0 |
Debt issuance costs | 0 | 0 | 0 |
Proceeds from intercompany loans | (25.4) | (14.5) | (135) |
Repayments on intercompany loans | 39.5 | 135 | |
Proceeds from intercompany equity contributions | (23.7) | (705.7) | (16.4) |
Dividends paid | 42.2 | 178.6 | 2.8 |
Other | 0 | 0 | 0 |
Net cash used by financing activities | 32.6 | (406.6) | (148.6) |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | 0 | 0 | 0 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1.4 | 1.1 | (3.2) |
Cash, cash equivalents and restricted cash at beginning of period | (2.1) | (3.2) | 0 |
Cash, cash equivalents and restricted cash at end of period | (0.7) | (2.1) | $ (3.2) |
Cash and cash equivalents | (0.7) | (2.1) | |
Restricted cash (included in “Prepaid expenses and other current assets”) | $ 0 | $ 0 |