Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 11, 2014 | Jun. 30, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Kaiser Aluminum Corp | ' | ' |
Entity Central Index Key | '0000811596 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Well Known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $1,100 |
Entity Common Stock, Shares Outstanding | ' | 18,014,394 | ' |
Consolidated_Balance_Sheet
Consolidated Balance Sheet (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $169.50 | $273.40 |
Short-term investments | 129.5 | 85 |
Receivables: | ' | ' |
Trade, less allowance for doubtful receivables of $0.8 at December 31, 2013 and December 31, 2012 | 119.8 | 123.8 |
Other | 13.4 | 3.4 |
Inventories | 214.4 | 186 |
Prepaid expenses and other current assets | 44.2 | 70.1 |
Total current assets | 690.8 | 741.7 |
Property, plant, and equipment — net | 429.3 | 384.3 |
Net asset in respect of VEBAs | 406 | 365.9 |
Deferred tax assets — net (including deferred tax liability relating to the VEBAs of $152.4 at December 31, 2013 and $136.9 at December 31, 2012 - see Note 6) | 69.1 | 102 |
Intangible assets — net | 33.7 | 35.4 |
Goodwill | 37.2 | 37.2 |
Other assets | 104.8 | 86 |
Total | 1,770.90 | 1,752.50 |
Current liabilities: | ' | ' |
Accounts payable | 62.9 | 62.5 |
Accrued salaries, wages, and related expenses | 42.7 | 39.3 |
Other accrued liabilities | 44.8 | 51.8 |
Payable to affiliate | 0 | 7.9 |
Short-term capital leases | 0.2 | 0.1 |
Total current liabilities | 150.6 | 161.6 |
Net liability in respect of VEBA | 0 | 5.3 |
Deferred tax liability | 1.2 | 0 |
Long-term liabilities | 146.4 | 134.5 |
Long-term debt | 388.5 | 380.3 |
Total liabilities | 686.7 | 681.7 |
Commitments and contingencies — Note 10 | ' | ' |
Stockholders’ equity: | ' | ' |
Preferred stock, 5,000,000 shares authorized at both December 31, 2013 and December 31, 2012; no shares were issued and outstanding at December 31, 2013 and December 31, 2012 | 0 | 0 |
Common stock, par value $0.01, 90,000,000 shares authorized at both December 31, 2013 and December 31, 2012; 21,103,700 shares issued and 18,147,017 shares outstanding at December 31, 2013; 21,037,841 shares issued and 19,313,235 shares outstanding at December 31, 2012 | 0.2 | 0.2 |
Additional paid in capital | 1,023.10 | 1,017.70 |
Retained earnings | 233.8 | 151.2 |
Treasury stock, at cost, 2,956,683 shares at December 31, 2013 and 1,724,606 shares at December 31, 2012 | -152.2 | -72.3 |
Accumulated other comprehensive loss | -20.7 | -26 |
Total stockholders’ equity | 1,084.20 | 1,070.80 |
Total | $1,770.90 | $1,752.50 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Receivables: | ' | ' |
Allowance for doubtful receivables | $0.80 | $0.80 |
Deferred tax liability relating to VEBAs | $152.40 | $136.90 |
Stockholders' equity: | ' | ' |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common Stock, Shares, Issued | 21,103,700 | 21,037,841 |
Common Stock, Shares, Outstanding | 18,147,017 | 19,313,235 |
Common stock owned by Union VEBA, shares | 0 | 0 |
Treasury stock, shares | 2,956,683 | 1,724,606 |
Statements_of_Consolidated_Inc
Statements of Consolidated Income (USD $) | 12 Months Ended | |||||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Net sales | $1,297.50 | $1,360.10 | $1,301.30 | |||
Cost of products sold: | ' | ' | ' | |||
Cost of products sold, excluding depreciation and amortization and other items | 1,038.90 | 1,116.20 | 1,129 | |||
Unrealized (gains) losses on derivative instruments | -0.7 | -15.2 | 29.9 | |||
Restructuring benefits | 0 | 0 | -0.3 | |||
Depreciation and amortization | 28.1 | 26.5 | 25.2 | |||
Selling, administrative, research and development, and general (includes accumulated other comprehensive income reclassifications related to VEBA and Canadian pension plan adjustments of $5.7, $7.3 and $4.8 for the years ended 2013, 2012 and 2011, respectively) - See Note 7 | 57.9 | 62.2 | 62.7 | |||
Other operating charges (benefits), net | 0 | 4.5 | -0.2 | |||
Total costs and expenses | 1,124.20 | 1,194.20 | 1,246.30 | |||
Operating income | 173.3 | 165.9 | 55 | |||
Other (expense) income: | ' | ' | ' | |||
Interest expense | -35.7 | -29.1 | -18 | |||
Other income, net (includes accumulated other comprehensive income reclassifications for realized gains on available for sale securities of $1.0 for the year ended 2013) | 5.6 | 2.8 | 4.3 | |||
Income before income taxes | 143.2 | 139.6 | 41.3 | |||
Income tax provision (includes aggregate income tax expense from reclassification items of $(1.8), $(2.8) and $(1.8) for the years ended 2013, 2012 and 2011, respectively) | -38.4 | -53.8 | -16.2 | |||
Net income | $104.80 | $85.80 | $25.10 | |||
Earnings per common share, Basic: | ' | ' | ' | |||
Net income per share | $5.56 | $4.49 | $1.32 | |||
Earnings per common share, Diluted: | ' | ' | ' | |||
Net income per share | $5.44 | [1],[2] | $4.45 | [1],[2] | $1.32 | [1],[2] |
Weighted-average number of common shares outstanding (in thousands): | ' | ' | ' | |||
Basic | 18,827 | [3] | 19,115 | [3] | 18,979 | [3] |
Diluted | 19,246 | [1],[2] | 19,278 | [1],[2] | 18,979 | [1],[2] |
[1] | The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2013 and 2012 were calculated using the treasury method. The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2011 were calculated using the two-class method (see Note 1). | |||||
[2] | Diluted weighted-average number of common shares outstanding and diluted earnings per share for 2013 and 2012 are based on the treasury method. Diluted weighted-average number of common shares outstanding and diluted earnings per share for 2011 is based on the two-class method (see Note 1 and Note 13). | |||||
[3] | The basic weighted-average number of common shares outstanding during the period excludes unvested share-based incentive awards. |
Statements_of_Consolidated_Inc1
Statements of Consolidated Income Statements of Consolidated Income (Parentheticals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Reclassification related to VEBA and Canadian pension plan adjustments | $5.70 | $7.30 | $4.80 |
Reclassification adjustments for realized gains on available for sale securities | -1 | 0 | 0 |
Aggregate income tax expense from reclassification items | ($1.80) | ($2.80) | ($1.80) |
Statements_of_Consolidated_Com
Statements of Consolidated Comprehensive Income (Loss) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net income | $27.30 | $25.40 | $18.60 | $33.50 | $9.10 | $29.20 | $21 | $26.50 | $104.80 | $85.80 | $25.10 |
Defined benefit pension plan and VEBAs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net actuarial gain (loss) arising during the period | ' | ' | ' | ' | ' | ' | ' | ' | 2.2 | 87.8 | -110.6 |
Reclassification adjustments relating to VEBAs: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization of net actuarial loss | ' | ' | ' | ' | ' | ' | ' | ' | 1.5 | 3.1 | 0.6 |
Amortization of prior service cost | ' | ' | ' | ' | ' | ' | ' | ' | 4.2 | 4.2 | 4.2 |
Other comprehensive income (loss) relating to defined benefit pension plan and VEBAs | ' | ' | ' | ' | ' | ' | ' | ' | 7.9 | 95.1 | -105.8 |
Available for sale securities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrealized gain (loss) on available for sale securities | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 0.6 | -0.1 |
Reclassification adjustments: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: reclassification of unrealized gain upon sale of available for sale securities | ' | ' | ' | ' | ' | ' | ' | ' | -1 | 0 | 0 |
Other comprehensive income (loss) relating to available for sale securities | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0.6 | -0.1 |
Foreign currency translation adjustment | ' | ' | ' | ' | ' | ' | ' | ' | 0.2 | -0.2 | 0.2 |
Other comprehensive income (loss), before tax | ' | ' | ' | ' | ' | ' | ' | ' | 8.1 | 95.5 | -105.7 |
Income tax (expense) benefit related to items of other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -2.8 | -36.5 | 40.4 |
Other comprehensive income (loss), net of tax | ' | ' | ' | ' | ' | ' | ' | ' | 5.3 | 59 | -65.3 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $110.10 | $144.80 | ($40.20) |
Statement_of_Consolidated_Stoc
Statement of Consolidated Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid in Capital | Retained Earnings | Common Stock Owned by Union VEBA | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | |
In Millions, except Share data, unless otherwise specified | ||||||||
Beginning balance at Dec. 31, 2010 | $888.70 | $0.20 | $987.10 | $78 | ($84.60) | ($72.30) | ($19.70) | |
Beginning balance, shares at Dec. 31, 2010 | ' | 19,214,451 | ' | ' | ' | ' | ' | |
Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |
Net income | 25.1 | ' | ' | 25.1 | ' | ' | ' | |
Other comprehensive income, net of tax | -65.3 | ' | ' | ' | ' | ' | -65.3 | |
Release of restriction on Union VEBA shares, net of tax of $19.6, $25.0, and $41.3 for 2010, 2011, and 2012, respectively) | 40.5 | ' | 8.8 | ' | 31.7 | ' | ' | |
Issuance of non-vested shares to employees | ' | 83,066 | ' | ' | ' | ' | ' | |
Issuance of common shares to directors, shares | ' | 3,750 | ' | ' | ' | ' | ' | |
Issuance of common shares to directors | 0.2 | ' | 0.2 | ' | ' | ' | ' | |
Issuance of common shares to employees upon vesting of restricted stock units and performance shares | ' | 17,444 | ' | ' | ' | ' | ' | |
Cancellation of employee non-vested shares | ' | -2,889 | ' | ' | ' | ' | ' | |
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares, shares | ' | -62,637 | ' | ' | ' | ' | ' | |
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | -3.1 | ' | -3.1 | ' | ' | ' | ' | |
Repurchase of common stock, shares | 0 | ' | ' | ' | ' | ' | ' | |
Shares returned from distribution of bankruptcy trust, value | 0 | ' | ' | ' | ' | ' | ' | |
Cash dividends on common stock ($0.96, $1.00 and $1.20 per share for 2011, 2012 and 2013, respectively) | -18.9 | ' | ' | -18.9 | ' | ' | ' | |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0.2 | ' | 0.2 | ' | ' | ' | ' | |
Amortization of unearned equity compensation | 5.2 | ' | 5.2 | ' | ' | ' | ' | |
Dividends on unvested equity awards that were canceled | 0.2 | ' | ' | 0.2 | ' | ' | ' | |
Ending balance at Dec. 31, 2011 | 872.8 | 0.2 | 998.4 | 84.4 | -52.9 | -72.3 | -85 | |
Ending balance, shares at Dec. 31, 2011 | ' | 19,253,185 | ' | ' | ' | ' | ' | |
Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |
Net income | 85.8 | ' | ' | 85.8 | ' | ' | ' | |
Other comprehensive income, net of tax | 59 | ' | ' | ' | ' | ' | 59 | |
Release of restriction on Union VEBA shares, net of tax of $19.6, $25.0, and $41.3 for 2010, 2011, and 2012, respectively) | 67.3 | ' | 14.4 | ' | 52.9 | ' | ' | |
Issuance of non-vested shares to employees | ' | 92,949 | ' | ' | ' | ' | ' | |
Issuance of common shares to directors, shares | ' | 3,930 | ' | ' | ' | ' | ' | |
Issuance of common shares to directors | 0.2 | ' | 0.2 | ' | ' | ' | ' | |
Issuance of common shares to employees upon vesting of restricted stock units and performance shares | ' | 11,327 | ' | ' | ' | ' | ' | |
Cancellation of employee non-vested shares | ' | -2,355 | ' | ' | ' | ' | ' | |
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares, shares | ' | -45,801 | ' | ' | ' | ' | ' | |
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | -2.2 | ' | -2.2 | ' | ' | ' | ' | |
Repurchase of common stock, shares | 0 | ' | ' | ' | ' | ' | ' | |
Shares returned from distribution of bankruptcy trust, value | 0 | ' | ' | ' | ' | ' | ' | |
Cash dividends on common stock ($0.96, $1.00 and $1.20 per share for 2011, 2012 and 2013, respectively) | -19.6 | ' | ' | -19.6 | ' | ' | ' | |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1.3 | ' | 1.3 | ' | ' | ' | ' | |
Amortization of unearned equity compensation | 5.6 | ' | 5.6 | ' | ' | ' | ' | |
Dividends on unvested equity awards that were canceled | 0.6 | ' | ' | 0.6 | ' | ' | ' | |
Ending balance at Dec. 31, 2012 | 1,070.80 | 0.2 | 1,017.70 | 151.2 | 0 | -72.3 | -26 | |
Ending balance, shares at Dec. 31, 2012 | 19,313,235 | 19,313,235 | ' | ' | ' | ' | ' | |
Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |
Net income | 104.8 | ' | ' | 104.8 | ' | ' | ' | |
Other comprehensive income, net of tax | 5.3 | ' | ' | ' | ' | ' | 5.3 | |
Issuance of non-vested shares to employees | ' | 76,336 | ' | ' | ' | ' | ' | |
Issuance of common shares to directors, shares | ' | 2,916 | ' | ' | ' | ' | ' | |
Issuance of common shares to directors | 0.2 | ' | 0.2 | ' | ' | ' | ' | |
Issuance of common shares to employees upon vesting of restricted stock units and performance shares | ' | 36,503 | ' | ' | ' | ' | ' | |
Cancellation of employee non-vested shares | ' | -820 | ' | ' | ' | ' | ' | |
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares, shares | ' | -40,075 | ' | ' | ' | ' | ' | |
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | -2.5 | ' | -2.5 | ' | ' | ' | ' | |
Repurchase of common stock, shares | -1,232,077 | -1,232,077 | ' | ' | ' | ' | ' | |
Repurchase of common stock | -79.3 | ' | ' | ' | ' | -79.3 | ' | |
Shares returned from distribution of bankruptcy trust, shares | ' | -9,001 | ' | ' | ' | ' | ' | |
Dividends received from distribution of bankruptcy trust | ' | ' | ' | 0.6 | ' | ' | ' | |
Shares returned from distribution of bankruptcy trust, value | 0.6 | [1] | ' | ' | ' | ' | -0.6 | ' |
Cash dividends on common stock ($0.96, $1.00 and $1.20 per share for 2011, 2012 and 2013, respectively) | -23 | ' | ' | -23 | ' | ' | ' | |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1.1 | ' | 1.1 | ' | ' | ' | ' | |
Amortization of unearned equity compensation | 6.6 | ' | 6.6 | ' | ' | ' | ' | |
Dividends on unvested equity awards that were canceled | 0.2 | ' | ' | 0.2 | ' | ' | ' | |
Ending balance at Dec. 31, 2013 | $1,084.20 | $0.20 | $1,023.10 | $233.80 | $0 | ($152.20) | ($20.70) | |
Ending balance, shares at Dec. 31, 2013 | 18,147,017 | 18,147,017 | ' | ' | ' | ' | ' | |
[1] | See Note 13 for discussion of the distribution. |
Statements_of_Consolidated_Sto
Statements of Consolidated Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Additional Paid in Capital | ' | ' | ' |
Tax effect on release of restriction on Union VEBA shares | $0 | $41.30 | $25 |
Retained Earnings | ' | ' | ' |
Cash dividends declared on common stock (per share) | $1.20 | $1 | $0.96 |
Statement_of_Consolidated_Cash
Statement of Consolidated Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $104.80 | $85.80 | $25.10 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation of property, plant and equipment | 26.4 | 24.7 | 23 |
Amortization of definite-lived intangible assets | 1.7 | 1.8 | 2.2 |
Amortization of debt discount and debt issuance costs | 11 | 9.8 | 8.6 |
Deferred income taxes | 55.4 | 52 | 17.6 |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | -1.1 | -1.3 | -0.2 |
Non-cash equity compensation | 6.8 | 5.8 | 5.4 |
Net non-cash LIFO benefits | -24.1 | -4.9 | -7.1 |
Non-cash unrealized (gains) losses on derivative instruments | -3.9 | -16 | 25.9 |
Amortization of option premiums (received) paid, net | -0.1 | 0.3 | -1.2 |
Non-cash impairment charges | 0 | 4.4 | 0 |
Losses (gains) on disposition of property, plant and equipment | 0.1 | -0.1 | 0.2 |
Gain on disposition of available for sale securities | -0.4 | 0 | 0 |
Non-cash defined benefit net periodic benefit income | -22 | -11.5 | -5.7 |
Other non-cash changes in assets and liabilities | -9.3 | 1.2 | 0.4 |
Changes in operating assets and liabilities, net of effect of acquisition: | ' | ' | ' |
Trade and other receivables | -3.3 | -27.1 | -8.3 |
Inventories (excluding LIFO adjustments) | -4.3 | 24.6 | -24.5 |
Prepaid expenses and other current assets | 1.1 | 1.4 | -2.9 |
Accounts payable | -1.6 | -1.3 | 10.9 |
Accrued liabilities (includes the effect of the VEBA contribution accrual of $16.0 at December 31, 2013 and $20.0 at December 31, 2012) | -18.2 | 10.4 | -1.5 |
Payable to affiliate | -7.9 | -6.5 | -2.7 |
Long-term assets and liabilities, net | 0.6 | -1.1 | -2.4 |
Net cash provided by operating activities | 111.7 | 152.4 | 62.8 |
Cash flows from investing activities: | ' | ' | ' |
Capital expenditures | -70.4 | -44.1 | -32.5 |
Purchase of available for sale securities | -227.8 | -85 | -0.3 |
Proceeds from disposition of available for sale securities | 183.1 | 0 | 0 |
Proceeds from disposal of property, plant and equipment | 0 | 0.3 | 0.7 |
Cash payment for acquisition of manufacturing facility and related assets (net of $4.9 of cash received in connection with the acquisition in 2011) | 0 | 0 | -83.2 |
Change in restricted cash | 1.7 | 6.9 | -1 |
Net cash used in investing activities | -113.4 | -121.9 | -116.3 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of Senior Notes | 0 | 225 | 0 |
Payment of capital lease liability | -0.1 | -0.1 | -0.1 |
Repayment of promissory notes | 0 | -4.7 | -8.3 |
Cash paid for financing costs | 0 | -6.6 | -2.1 |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1.1 | 1.3 | 0.2 |
Repurchase of common stock to cover employees' tax withholdings upon vesting of non-vested shares | -2.5 | -2.2 | -3.1 |
Repurchase of common stock | -78.3 | 0 | 0 |
Cash dividend paid to stockholders | -23 | -19.6 | -18.9 |
Cash dividend returned to the Company | 0.6 | 0 | 0 |
Net cash (used in) provided by financing activities | -102.2 | 193.1 | -32.3 |
Net (decrease) increase in cash and cash equivalents during the period | -103.9 | 223.6 | -85.8 |
Cash and cash equivalents at beginning of period | 273.4 | 49.8 | 135.6 |
Cash and cash equivalents at end of period | $169.50 | $273.40 | $49.80 |
Statement_of_Consolidated_Cash1
Statement of Consolidated Cash Flows (Parenthetical) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2011 |
Statement of Cash Flows [Abstract] | ' |
Cash received in the acquisition | $4.90 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Summary of Significant Accounting Policies | ' | |||
Summary of Significant Accounting Policies | ||||
Organization and Nature of Operations. Kaiser Aluminum Corporation (together with its subsidiaries, unless the context otherwise requires, the “Company”) specializes in the production of semi-fabricated specialty aluminum products, such as aluminum sheet and plate and extruded and drawn products, primarily used in aerospace/high strength, general engineering, automotive, and other industrial end market applications. The Company has one operating segment, Fabricated Products. See Note 14 for additional information regarding the Company's reportable segment and its other business units. | ||||
Principles of Consolidation and Basis of Presentation. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, and are prepared in accordance with United States generally accepted accounting principles (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Intercompany balances and transactions are eliminated. | ||||
The Company sold its 49% non-controlling ownership interest in Anglesey Aluminium Limited ("Anglesey") in the fourth quarter of 2013 for a de minimis amount. The Company had previously impaired the carrying value of its ownership interest in Anglesey to zero, and accordingly, recorded a de minimis gain on the sale. Because the Company had suspended the use of the equity method of accounting with respect to its 49% non-controlling ownership interest in Anglesey, no equity in income from Anglesey was reflected for any of the periods presented herein. | ||||
Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company’s consolidated financial position and results of operations. | ||||
Recognition of Sales. Sales are generally recognized on a gross basis when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) title, ownership and risk of loss has passed to the customer, (iii) the price to the customer is fixed or determinable, and (iv) collection of the resulting receivable is reasonably assured. A provision for estimated sales returns from, and allowances to, customers is made in the same period as the related revenues are recognized, based on historical experience or the specific identification of an event necessitating a reserve. | ||||
From time to time, in the ordinary course of business, the Company may enter into agreements with customers in which the Company, in return for a fee, agrees to reserve certain amounts of its existing production capacity for the customer, defer an existing customer purchase commitment into future periods and reserve certain amounts of its expected production capacity in those periods for the customer, or cancel or reduce existing commitments under existing contracts. These agreements may have terms or impact periods exceeding one year. | ||||
Certain of the capacity reservation and commitment deferral agreements provide for periodic, such as quarterly or annual, billing for the duration of the contract. For capacity reservation agreements, the Company recognizes revenue ratably over the period of the capacity reservation. Accordingly, the Company may recognize revenue prior to billing reservation fees. Unbilled receivables are included within Trade receivables on the Company's Consolidated Balance Sheets (see Note 2). For commitment deferral agreements, the Company recognizes revenue upon the earlier occurrence of the related sale of product or the end of the commitment period. In connection with other agreements, the Company may collect funds from customers in advance of the periods for which (i) the production capacity is reserved, (ii) commitments are deferred, (iii) commitments are reduced or (iv) performance is completed, in which event the recognition of revenue is deferred until the fee is earned. Any unearned fees are included within Other accrued liabilities or Long-term liabilities, as appropriate, on the Company's Consolidated Balance Sheets (see Note 2). | ||||
Stock-Based Compensation. Stock-based compensation in the form of service-based awards is provided to executive officers, certain employees and directors, and is accounted for at fair value. The Company measures the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award and the number of awards expected to ultimately vest. The cost of an award is recognized as an expense over the requisite service period of the award on a straight-line basis. The Company has elected to amortize compensation expense for equity awards with graded vesting using the straight-line method (see Note 9). | ||||
The Company also grants performance-based awards to executive officers and other key employees. These awards are subject to performance requirements pertaining to the Company's economic value added (“EVA”) performance, measured over specified three-year performance periods. The EVA is a measure of the excess of the Company's adjusted pre-tax operating income for a particular year over a pre-determined percentage of the adjusted net assets of the immediately preceding year-end, as defined in the Company's annual long-term incentive (“LTI”) programs. The number of performance shares, if any, that will ultimately vest and result in the issuance of common shares depends on the average annual EVA achieved for the specified three-year performance period. The fair value of performance-based awards is measured based on the most probable outcome of the performance condition, which is estimated quarterly using the Company's forecast and actual results. The Company expenses the fair value, after assuming an estimated forfeiture rate, over the specified three-year performance period on a ratable basis (see Note 9). | ||||
Shipping and Handling Costs. Shipping and handling costs are recorded as a component of Cost of products sold excluding depreciation, amortization and other items. | ||||
Advertising Costs. Advertising costs, which are included in Selling, administrative, research and development, and general, are expensed as incurred. Advertising costs for 2013, 2012 and 2011 were $1.3, $0.4, and $0.4, respectively. | ||||
Research and Development Costs. Research and development costs, which are included in Selling, research and development, and general, are expensed as incurred. Research and development costs for 2013, 2012 and 2011 were $7.8, $6.4, and $6.1, respectively. | ||||
Major Maintenance Activities. All of the major maintenance costs are accounted for using the direct expensing method. | ||||
Cash and Cash Equivalents. The Company considers only those short-term, highly liquid investments with original maturities of 90 days or less when purchased to be cash equivalents. The Company’s cash equivalents consist primarily of funds in commercial paper, savings accounts, demand notes, money market funds and other highly liquid investments, which are classified within Level 1 of the fair value hierarchy with the exception of commercial paper, which is classified within Level 2 of the fair value hierarchy. | ||||
Restricted Cash. The Company is required to keep certain amounts on deposit relating to workers’ compensation and other agreements. The Company accounts for such deposits as restricted cash (see Note 2). | ||||
Trade Receivables and Allowance for Doubtful Accounts. Trade receivables primarily consist of amounts billed to customers for products sold. Accounts receivable are generally due within 30 to 60 days. For the majority of its receivables, the Company establishes an allowance for doubtful accounts based upon collection experience and other factors. On certain other receivables where the Company is aware of a specific customer’s inability or reluctance to pay, an allowance for doubtful accounts is established against amounts due, to reduce the net receivable balance to the amount the Company reasonably expects to collect. However, if circumstances change, the Company’s estimate of the recoverability of accounts receivable could be different. Circumstances that could affect the Company’s estimates include, but are not limited to, customer credit issues and general economic conditions. Accounts are written off once deemed to be uncollectible. Any subsequent cash collections relating to accounts that have been previously written off are typically recorded as a reduction to total bad debt expense in the period of payment. | ||||
Inventories. Inventories are stated at the lower of cost or market value. Finished products, work-in-process and raw material inventories are stated on the last-in, first-out (“LIFO”) basis. The Company recorded net non-cash LIFO inventory benefits of approximately $24.1, $4.9 and $7.1 during 2013, 2012 and 2011, respectively. These amounts are primarily a result of changes in metal prices and changes in inventory volumes. The excesses of current cost over the stated LIFO value of inventory at December 31, 2013 and December 31, 2012 were $0.4 and $24.5, respectively. Inventory volume decreased during the year ended December 31, 2012. The effect from the liquidation of the 2011 LIFO layer was $22.3. Other inventories, principally operating supplies and repair and maintenance parts, are stated at average cost. Inventory costs consist of material, labor and manufacturing overhead, including depreciation. Abnormal costs, such as idle facility expenses, freight, handling costs and spoilage, are accounted for as current period charges. All of the Company's inventories at December 31, 2013 and December 31, 2012 were included in the Fabricated Products segment (see Note 2 for the components of inventories). | ||||
Property, Plant, and Equipment - Net. Property, plant and equipment is recorded at cost (see Note 2). Construction in progress is included within Property, plant, and equipment - net in the Consolidated Balance Sheets. Interest related to the construction of qualifying assets is capitalized as part of the construction costs. The aggregate amount of interest capitalized is limited to the interest expense incurred in the period. The amount of interest expense capitalized as construction in progress was $3.4, $1.7 and $1.3 during 2013, 2012 and 2011, respectively. | ||||
Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Capital lease assets and leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The principal estimated useful lives are as follows: | ||||
Range (in years) | ||||
Land improvements | 3 | - | 25 | |
Buildings and leasehold improvements | 15 | - | 45 | |
Machinery and equipment | 1 | - | 24 | |
Capital lease assets | 3 | - | 5 | |
Depreciation expense is not included in Cost of products sold, excluding depreciation and amortization and other items, but is included in Depreciation and amortization on the Statements of Consolidated Income. For 2013, 2012 and 2011, the Company recorded depreciation expense of $25.8, $24.2 and $22.7, respectively, relating to the Company's operating facilities in its Fabricated Products segment. An immaterial amount of depreciation expense was also recorded in the Company's Corporate and Other for all periods presented herein. | ||||
Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or group of assets may not be recoverable. The Company regularly assesses whether events and circumstances with the potential to trigger impairment have occurred and relies on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flow, to make such assessments. The Company uses an estimate of the future undiscounted cash flows of the related asset or asset group over the estimated remaining life of such asset(s) in measuring whether the asset(s) are recoverable. Measurement of the amount of impairment, if any, is based on the difference between the carrying value of the asset(s) and the estimated fair value of such asset(s). Fair value is determined through a series of standard valuation techniques. | ||||
Property, plant and equipment held for future development are presented as idled assets. Such assets are evaluated for impairment on a held-and-used basis. Depreciation expense is not adjusted when assets are temporarily idled. | ||||
During 2012, the Company determined not to deploy a portion of the idled assets for future use and recorded an impairment charge of $4.4 to reflect the scrap value of such assets. There were no impairment charges in 2013 and 2011. Asset impairment charges are included in Other operating charges (benefits), net in the Statements of Consolidated Income and are included in the Fabricated Products segment. | ||||
Available for Sale Securities. The Company accounts for investments in certain marketable debt securities as available for sale securities. Such securities are recorded at fair value (see “Fair Values of Financial Assets and Liabilities - Available for Sale Securities” in Note 12), with net unrealized gains and losses, net of income taxes, reflected in other comprehensive earnings as a component of Stockholders' equity. Debt investment securities with an original maturity of 90 days or less is classified as Cash and cash equivalents (see Note 2). Debt investment securities with an original maturity of greater than 90 days is presented as Short-term investments on the Consolidated Balance Sheets. In addition to debt investment securities, the Company also holds assets in various investment funds managed by a third-party trust in connection with the Company's deferred compensation program (see Note 7). | ||||
Deferred Financing Costs. Costs incurred in connection with debt financing are deferred and amortized over the estimated term of the related borrowing. Such amortization is included in Interest expense and may be capitalized as part of construction in progress (see Note 2 and Note 3). | ||||
Goodwill and Intangible Assets. Goodwill is tested for impairment during the fourth quarter on an annual basis, as well as on an interim basis, as warranted, at the time of relevant events and changes in circumstances. Intangible assets with definite lives are initially recognized at fair value and subsequently amortized over the estimated useful lives to reflect the pattern in which the economic benefits of the intangible assets are consumed. In the event the pattern cannot be reliably determined, the Company uses a straight-line amortization method. Whenever events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable, the intangible assets are reviewed for impairment. The Company concluded there was no impairment of the carrying value of goodwill at December 31, 2013 or December 31, 2012 (Note 5). | ||||
Conditional Asset Retirement Obligations (“CAROs”). The Company has CAROs at several of its fabricated products facilities. The vast majority of such CAROs consist of incremental costs that would be associated with the removal and disposal of asbestos (all of which is believed to be fully contained and encapsulated within walls, floors, roofs, ceilings or piping) at certain of the Company’s older facilities if such facilities were to undergo major renovation or be demolished. The Company, in accordance with Accounting Standards Codification ("ASC") Topic 410, Asset Retirement and Environmental Obligations, estimates incremental costs for special handling, removal and disposal costs of materials that may or will give rise to CAROs and then discounts the expected costs back to the current year using a credit-adjusted, risk-free rate. The Company recognizes liabilities and costs for CAROs even if it is unclear when or if CAROs will be triggered. When it is unclear when or if CAROs will be triggered, the Company uses probability weighting for possible timing scenarios to determine the probability-weighted amounts that should be recognized in the Company’s consolidated financial statements (see Note 12). | ||||
Self Insurance of Employee Health and Workers' Compensation Liabilities. The Company is primarily self-insured for group health insurance and workers' compensation benefits provided to employees. Self insurance liabilities are estimated for incurred-but-not-paid claims based on judgment, using the Company's historical claims data and information and analysis provided by actuarial and claims advisors, the Company's insurance carriers and other professionals. The Company accounts for accrued liability relating to workers' compensation claims on a discounted basis. The discount rates used in estimating the liabilities were 1.75% and 0.75% and the undiscounted workers' compensation liabilities were $29.1 and $27.3 at December 31, 2013 and December 31, 2012, respectively. The accrued liabilities for health insurance and workers' compensation is included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2). | ||||
Environmental Contingencies. With respect to environmental loss contingencies, the Company records a loss contingency whenever a contingency is probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations are generally recognized at no later than the completion of the remedial feasibility study. Such accruals are adjusted as information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Accruals for expected environmental costs are included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2). Environmental expense relating to continuing operations is included in Cost of products sold, excluding depreciation and amortization and other items in the Statements of Consolidated Income. Environmental expense relating to non-operating locations is included in Selling, administrative, research and development, and general in the Statements of Consolidated Income. | ||||
Derivative Financial Instruments. Hedging transactions using derivative financial instruments are primarily designed to mitigate the Company's exposure to changes in prices for certain products sold and consumed by the Company and, to a lesser extent, to mitigate the Company's exposure to changes in foreign currency exchange rates. From time to time, the Company also enters into hedging arrangements in connection with financing transactions to mitigate financial risks. | ||||
The Company does not utilize derivative financial instruments for trading or other speculative purposes. The Company's derivative activities are initiated within guidelines established by management and approved by the Company's Board of Directors. Hedging transactions are executed centrally on behalf of all of the Company's business units to minimize transaction costs, monitor consolidated net exposures and allow for increased responsiveness to changes in market factors. | ||||
The Company recognizes all derivative instruments as assets or liabilities in its Consolidated Balance Sheets and measures these instruments at fair value by “marking-to-market” all of its hedging positions at each period's end (see Note 12). Because the Company does not meet the documentation requirements for hedge (deferral) accounting, unrealized and realized gains and losses associated with hedges of operational risks are reflected as a reduction or increase, respectively, in Cost of products sold (Unrealized (gains) losses on derivative instruments), and unrealized and realized gains and losses relating to hedges of financing transactions are reflected as a component of Other income (expense) (see Note 16). See Note 11 for additional information about realized and unrealized gains and losses relating to the Company's derivative financial instruments. | ||||
Fair Value Measurement. The Company applies the provisions of Accounting Standards Update (“ASU”) Topic 820, Fair Value Measurements and Disclosures, in measuring the fair value of its derivative contracts and plan assets invested by certain of the Company’s employee benefit plans (see Note 12). | ||||
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 consists of three broad levels and 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 and 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. | |||
Income Taxes. Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying statutory tax rates in effect for the year during which the differences are expected to reverse. In accordance with ASC Topic 740, Income Taxes, the Company uses a “more likely than not” threshold for recognition of tax attributes that are subject to uncertainties and measures any reserves in respect of such expected benefits based on their probability. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized (see Note 6). | ||||
Earnings per Share. Basic earnings per share is computed by dividing distributed and undistributed earnings allocable to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes unvested share-based payment awards. The shares that were owned by a voluntary employee’s beneficiary association (“VEBA”) for the benefit of certain union retirees, their surviving spouses and eligible dependents (the “Union VEBA”) and subject to transfer restrictions (see Note 7) are included in the computation of basic weighted-average number of common shares outstanding in 2012 and 2011 because such shares were irrevocably issued and had full dividend and voting rights. Diluted earnings per share is calculated as the more dilutive result of computing earnings per share under: (i) the treasury stock method or (ii) the two-class method. Diluted earnings per share for 2013 and 2012 were calculated under the treasury stock method. Diluted earnings per share for 2011 was calculated under the two-class method (see Note 13). | ||||
Concentration of Credit Risk. Financial arrangements which potentially subject the Company to concentrations of credit risk consist of metal, natural gas, electricity and foreign currency derivative contracts, certain cash-settled call options that the Company purchased in March 2010 (the “Call Options”) (see Note 3), and arrangements related to the Company's cash equivalents and short-term investments. If the market value of the Company's net commodity and currency derivative positions with certain counterparties exceeds the applicable threshold, if any, the counterparty is required to post margin by transferring cash collateral in excess of the threshold to the Company. Conversely, if the market value of these net derivative positions falls below a specified threshold, the Company is required to post margin by transferring cash collateral below the threshold to certain counterparties. At both December 31, 2013 and December 31, 2012, the Company had no margin deposits with or from its counterparties. | ||||
The Company is exposed to credit loss in the event of nonperformance by counterparties on derivative contracts used in hedging activities as well as failure of counterparties to return cash collateral previously transferred to the counterparties. The counterparties to the Company's derivative contracts are major financial institutions, and the Company does not expect nonperformance by any of its counterparties. | ||||
The Company places its cash in commercial paper, savings accounts, demand notes and money market funds. Such money market funds are with high credit quality financial institutions which invest primarily in commercial paper and time deposits of prime quality, short-term repurchase agreements, and U.S. government agency notes. | ||||
Leases. For leases that contain predetermined fixed escalations of the minimum rent, the Company recognizes the related rent expense on a straight-line basis from the date it takes possession of the property to the end of the initial lease term. The Company records any difference between the straight-line rent amounts and the amount payable under the lease as part of deferred rent in Other accrued liabilities or Long-term liabilities, as appropriate. Deferred rent for all periods presented was not material. | ||||
Foreign Currency. Certain of the Company’s foreign subsidiaries use the local currency as its functional currency; its assets and liabilities are translated at exchange rates in effect at the balance sheet date; and its statement of operations is translated at weighted-average monthly rates of exchange prevailing during the year. Resulting translation adjustments are recorded directly to a separate component of stockholders’ equity in accordance with ASC Topic 830, Foreign Currency Matters. At both December 31, 2013 and December 31, 2012, the amount of translation adjustment relating to the foreign subsidiary using local currency as its functional currency was immaterial. Where the U.S. dollar is the functional currency of a foreign facility or subsidiary, re-measurement adjustments are recorded in Other income (expense). | ||||
New Accounting Pronouncements. ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. (“ASU 2013-11”), was issued in July 2013. ASU 2013-11 requires an entity to present in the financial statements an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset resulting from a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, when the above situation is not available at the reporting date or the tax law of the applicable jurisdiction does not require the entity to use the deferred tax asset for such purpose, the unrecognized tax benefit is to be presented in the financial statements as a liability and not be combined with deferred tax assets. An entity is required to adopt ASU 2013-11 for annual and interim periods beginning after December 15, 2014. The Company does not expect the adoption of ASU 2013-11 to have a material impact on its financial statements. |
Supplemental_Balance_Sheet_Inf
Supplemental Balance Sheet Information | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Supplemental Balance Sheet Information [Abstract] | ' | ||||||||
Supplemental Balance Sheet Information | ' | ||||||||
Supplemental Balance Sheet Information | |||||||||
December 31, 2013 | December 31, 2012 | ||||||||
Cash and Cash Equivalents. | |||||||||
Cash and money market funds | $ | 57.7 | $ | 107.9 | |||||
Commercial paper | 111.8 | 165.5 | |||||||
Total | $ | 169.5 | $ | 273.4 | |||||
Trade Receivables. | |||||||||
Billed trade receivables | $ | 120.2 | $ | 124.4 | |||||
Unbilled trade receivables — Note 1 | 0.4 | 0.2 | |||||||
Trade receivables, gross | 120.6 | 124.6 | |||||||
Allowance for doubtful receivables | (0.8 | ) | (0.8 | ) | |||||
Trade receivables, net | $ | 119.8 | $ | 123.8 | |||||
Inventories. | |||||||||
Finished products | $ | 72.5 | $ | 59.9 | |||||
Work-in-process | 75.9 | 55.5 | |||||||
Raw materials | 47.2 | 53.9 | |||||||
Operating supplies and repairs and maintenance parts | 18.8 | 16.7 | |||||||
Total | $ | 214.4 | $ | 186 | |||||
Prepaid Expenses and Other Current Assets. | |||||||||
Current derivative assets — Notes 11 and 12 | $ | 2 | $ | 3 | |||||
Current deferred tax assets | 36.7 | 59.5 | |||||||
Current portion of option premiums paid — Notes 11 and 12 | — | 0.1 | |||||||
Short-term restricted cash | 0.3 | 1.3 | |||||||
Prepaid taxes | — | 2.1 | |||||||
Prepaid expenses | 5.2 | 4.1 | |||||||
Total | $ | 44.2 | $ | 70.1 | |||||
Property, Plant, and Equipment - Net. | |||||||||
Land and improvements | $ | 22.6 | $ | 22.6 | |||||
Buildings and leasehold improvements | 53 | 50.9 | |||||||
Machinery and equipment | 425.6 | 400.4 | |||||||
Construction in progress | 66 | 20.8 | |||||||
Active property, plant, and equipment, gross | 567.2 | 494.7 | |||||||
Accumulated depreciation | (137.9 | ) | (111.4 | ) | |||||
Active property, plant, and equipment, net | 429.3 | 383.3 | |||||||
Idled equipment | — | 1 | |||||||
Property, plant, and equipment, net | $ | 429.3 | $ | 384.3 | |||||
Other Assets. | |||||||||
Derivative assets — Notes 11 and 12 | $ | 79.8 | $ | 55.5 | |||||
Restricted cash | 9.3 | 10 | |||||||
Long-term income tax receivable | — | 2.9 | |||||||
Deferred financing costs | 8.9 | 11.7 | |||||||
Deferred compensation plan assets | 6.5 | 5.6 | |||||||
Other | 0.3 | 0.3 | |||||||
Total | $ | 104.8 | $ | 86 | |||||
Other Accrued Liabilities. | |||||||||
Current derivative liabilities — Notes 11 and 12 | $ | 1.8 | $ | 3.1 | |||||
Current portion of option premiums received — Notes 11 and 12 | — | 0.1 | |||||||
Uncleared cash disbursement | 9.6 | 4.7 | |||||||
Accrued income taxes and taxes payable | 4.3 | 3.1 | |||||||
Accrued annual VEBA contribution | 16 | 20 | |||||||
Short-term environmental accrual — Note 10 | 2.8 | 3 | |||||||
Accrued interest | 3.7 | 3.7 | |||||||
Short-term deferred revenue — Note 1 | — | 6.7 | |||||||
Other | 6.6 | 7.4 | |||||||
Total | $ | 44.8 | $ | 51.8 | |||||
Long-term Liabilities. | |||||||||
Derivative liabilities — Notes 11 and 12 | $ | 84.3 | $ | 63.5 | |||||
Income tax liabilities | 5 | 15.1 | |||||||
Workers’ compensation accruals | 23.3 | 24 | |||||||
Long-term environmental accrual — Note 10 | 20 | 18.7 | |||||||
Long-term asset retirement obligations | 4 | 3.8 | |||||||
Deferred compensation liability | 7 | 5.8 | |||||||
Long-term capital leases | 0.1 | 0.2 | |||||||
Other long-term liabilities | 2.7 | 3.4 | |||||||
Total | $ | 146.4 | $ | 134.5 | |||||
Long-term Debt. — Note 3 | |||||||||
Senior notes | $ | 225 | $ | 225 | |||||
Cash convertible senior notes | 163.5 | 155.3 | |||||||
Total | $ | 388.5 | $ | 380.3 | |||||
LongTerm_Debt_and_Credit_Facil
Long-Term Debt and Credit Facility | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Long-Term Debt and Credit Facility | ' | |||||||||||
Senior Notes | ||||||||||||
In May 2012, the Company issued $225.0 principal amount of 8.250% Senior Notes due June 1, 2020 (the “Senior Notes”) at 100% of the principal amount. Interest expense, including amortization of deferred financing costs, relating to the Senior Notes were $19.4 and $11.8 for 2013 and 2012, respectively. The effective interest rate of the Senior Notes is approximately 8.6% per annum, taking into account the amortization of deferred financing costs. | ||||||||||||
The Senior Notes are unsecured obligations and are guaranteed by existing and future direct and indirect subsidiaries of the Company that are borrowers or guarantors under the Company's revolving credit facility. The indenture governing the Senior Notes places limitations on the ability of the Company and certain of its subsidiaries to, among other things, incur liens, consolidate, merge or sell all or substantially all of the Company's and certain of its subsidiaries' assets, incur or guarantee additional indebtedness, prepay, redeem or repurchase certain indebtedness, make loans and investments, enter into transactions with affiliates, pay dividends and repurchase shares. | ||||||||||||
The Senior Notes are redeemable at the option of the Company in whole or part at any time on or after June 1, 2016 at an initial redemption price of 104.125% of the principal amount plus any accrued and unpaid interest, declining to a redemption price of 100% of the principal amount, plus any accrued and unpaid interest, on or after June 1, 2018. At any time prior to June 1, 2015, the Company may redeem up to 35% of the original principal amount of the Senior Notes with the proceeds of certain equity offerings at a redemption price of 108.250% of the principal amount, plus any accrued and unpaid interest. At any time prior to June 1, 2016, the Company may also redeem some or all of the Senior Notes at a redemption price equal to 100% of the principal amount, together with any accrued and unpaid interest, plus a “make-whole premium.” | ||||||||||||
Holders of the Senior Notes have the right to require the Company to repurchase the Senior Notes at a price equal to 101% of the principal amount plus any accrued and unpaid interest following a change of control. A change of control includes (i) certain ownership changes, (ii) certain recapitalizations, mergers and dispositions, (iii) certain changes in the composition of the Board of Directors of the Company, and (iv) shareholders' approval of any plan or proposal for the liquidation or dissolution of the Company. The Company may also be required to offer to repurchase the Senior Notes at 100% of the principal amount, plus any accrued and unpaid interest, with the proceeds of certain asset sales. | ||||||||||||
See “Fair Values of Financial Assets and Liabilities - All Other Financial Assets and Liabilities” in Note 12 for information relating to the estimated fair value of the Senior Notes. | ||||||||||||
Cash Convertible Senior Notes | ||||||||||||
Convertible Notes. In March 2010, the Company issued $175.0 principal amount of 4.5% Cash Convertible Senior Notes due April 1, 2015 (the "Convertible Notes"). The Convertible Notes are unsecured obligations of the Company. The Convertible Notes are not convertible into the Company's common stock or any other securities, but instead will be settled in cash. The Company accounts for the cash conversion feature of the Convertible Notes as a separate derivative instrument (the “Bifurcated Conversion Feature”) with the fair value on the issuance date equaling the original issue discount for purposes of accounting for the debt component of the Convertible Notes. The effective interest rate for the term of the Convertible Notes is approximately 11%, taking into account the amortization of the original issuance discount and deferred financing costs. | ||||||||||||
The following tables provide additional information regarding the Convertible Notes: | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Principal amount | $ | 175 | $ | 175 | ||||||||
Less: unamortized issuance discount1 | (11.5 | ) | (19.7 | ) | ||||||||
Carrying amount, net of discount | $ | 163.5 | $ | 155.3 | ||||||||
________________ | ||||||||||||
1 The remaining unamortized issuance discount at December 31, 2013 will be amortized over the next 1.3 years assuming no early conversion. | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Contractual coupon interest | $ | 7.9 | $ | 7.9 | $ | 8.4 | ||||||
Amortization of discount | 8.2 | 7.3 | 6.6 | |||||||||
Amortization of deferred financing costs | 1.2 | 1.2 | 1.2 | |||||||||
Total interest expense1 | $ | 17.3 | $ | 16.4 | $ | 16.2 | ||||||
_______________ | ||||||||||||
1 | A portion of the interest relating to the Convertible Notes is capitalized as Construction in progress. | |||||||||||
The Convertible Notes’ conversion rate is subject to adjustment based on the occurrence of certain events, including, but not limited to, the payment of quarterly cash dividends on the Company's common stock in excess of $0.24 per share. As of December 31, 2013, the conversion rate was 20.7903 shares per $1,000 principal amount of the Convertible Notes and the equivalent conversion price was approximately $48.10 per share, reflecting cumulative adjustments for quarterly dividends paid in excess of $0.24 per share. | ||||||||||||
Holders may convert their Convertible Notes at any time on or after January 1, 2015. Additionally, holders may convert the Convertible Notes before January 1, 2015 in certain limited circumstances determined by (i) the trading price of the Convertible Notes, (ii) the occurrence of specified corporate events, or (iii) the market price of the Company's common stock. Because the Company's closing stock price exceeded 130% of the conversion price for 20 trading days during a period of 30 consecutive trading days ending on December 31, 2013, the last trading date of the fourth quarter of 2013, holders may convert the Convertible Notes during the first quarter of 2014. The Company believes that the market value of the Convertible Notes will continue to exceed the amount of cash payable upon conversion, making early conversion unlikely. As of December 31, 2013, no Convertible Notes had been converted. | ||||||||||||
Holders of the Convertible Notes can require the Company to repurchase the Convertible Notes at a price equal to 100% of the principal amount plus any accrued and unpaid interest following a fundamental change. Fundamental changes include, but are not limited to, (i) certain ownership changes, (ii) certain recapitalizations, mergers and dispositions, (iii) shareholders’ approval of any plan or proposal for the liquidation or dissolution of the Company, and (iv) failure of the Company’s common stock to be listed on certain stock exchanges. | ||||||||||||
Convertible Note Hedge Transactions. In March 2010, the Company purchased cash-settled Call Options that have an exercise price equal to the conversion price of the Convertible Notes and an expiration date that is the same as the maturity or on the earlier conversion date of the Convertible Notes. If the Company exercises the Call Options, the aggregate amount of cash it will receive from the counterparties to the Call Options will cover the aggregate amount of cash that the Company would be required to pay to the holders of the converted Convertible Notes, less the principal amount thereof. Contemporaneous with the purchase of the Call Options, the Company also sold net-share-settled warrants (the “Warrants”) with an exercise date of July 1, 2015 relating to approximately 3.6 million shares of the Company’s common stock. The Call Options and the Warrants have anti-dilution provisions similar to the convertible Notes. At December 31, 2013, the exercise prices were $48.10 per share and $61.08 per share for the Call Options and the Warrants, respectively, reflecting cumulative adjustments for quarterly dividends paid in excess of $0.24 per share. | ||||||||||||
See “Fair Values of Financial Assets and Liabilities - All Other Financial Assets and Liabilities” in Note 12 for information | ||||||||||||
relating to the estimated fair value of the Bifurcated Conversion Feature and the Call Options. | ||||||||||||
Revolving Credit Facility | ||||||||||||
The Company’s credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the other financial institutions party thereto (the “Revolving Credit Facility”) provides the Company with a $300.0 funding commitment through September 30, 2016. The Revolving Credit Facility is secured by a first priority lien on substantially all of the accounts receivable, inventory and certain other related assets and proceeds of the Company and certain of its domestic operating subsidiaries as well as certain machinery and equipment. Under the Revolving Credit Facility, the Company is able to borrow from time to time an aggregate commitment amount equal to the lesser of $300.0 and a borrowing base comprised of (i) 85% of eligible accounts receivable, (ii) the lesser of (a) 65% of eligible inventory and (b) 85% of the net orderly liquidation value of eligible inventory as determined in the most recent inventory appraisal ordered by the administrative agent and (iii) 85% of certain eligible machinery and equipment, reduced by certain reserves, all as specified in the Revolving Credit Facility. Up to a maximum of $60.0 of availability under the Revolving Credit Facility may be utilized for letters of credit. | ||||||||||||
Borrowings under the Revolving Credit Facility bear interest at a rate equal to either a base prime rate or LIBOR, at the Company's option, plus, in each case, a specified variable percentage determined by reference to the then-remaining borrowing availability under the Revolving Credit Facility. The Revolving Credit Facility may, subject to certain conditions and the agreement of lenders thereunder, be increased up to $350.0. | ||||||||||||
The Company had $260.1 of borrowing availability under the Revolving Credit Facility at December 31, 2013, based on the borrowing base determination then in effect. At December 31, 2013, there were no borrowings under the Revolving Credit Facility and $7.0 was being used to support outstanding letters of credit, leaving $253.1 of net borrowing availability. The interest rate applicable to any overnight borrowings under the Revolving Credit Facility would have been 4.0% at December 31, 2013. | ||||||||||||
Amounts owed under the Revolving Credit Facility may be accelerated upon the occurrence of various events of default including, without limitation, the failure to make principal or interest payments when due and breaches of covenants, representations and warranties set forth therein. The Revolving Credit Facility places limitations on the ability of the Company and certain of its subsidiaries to, among other things, grant liens, engage in mergers, sell assets, incur debt, make investments, undertake transactions with affiliates, pay dividends and repurchase shares. In addition, the Company is required to maintain a fixed charge coverage ratio on a consolidated basis at or above 1.1:1.0 if borrowing availability under the Revolving Credit Facility is less than $30.0. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Business Combinations [Abstract] | ' | |||||||||||
Acquisition | ' | |||||||||||
Acquisitions | ||||||||||||
Alexco. Effective January 1, 2011, the Company completed the acquisition of substantially all of the assets of Alexco, LLC, a manufacturer of hard alloy extrusions for the aerospace industry, based in Chandler, Arizona. | ||||||||||||
The Company paid net cash consideration of $83.2, with existing cash on hand, and assumed certain liabilities totaling approximately $1.0. Total acquisition related costs were $0.5, of which $0.1 was expensed in 2011. Such expenses are included within Selling, administrative, research and development, and general expenses. | ||||||||||||
The following table summarizes recognized amounts of identifiable assets acquired and liabilities assumed at the effective date of the acquisition: | ||||||||||||
Allocation of purchase price: | ||||||||||||
Cash | $ | 4.9 | ||||||||||
Accounts receivable, net | 3.6 | |||||||||||
Inventory | 6.6 | |||||||||||
Property, plant and equipment | 4.5 | |||||||||||
Definite-lived intangible assets: | ||||||||||||
Customer relationships | 34.7 | |||||||||||
Backlog | 0.3 | |||||||||||
Trademark and trade name | 0.4 | |||||||||||
Goodwill | 34.1 | |||||||||||
Accounts payable and other current liabilities | (1.0 | ) | ||||||||||
Cash consideration paid | $ | 88.1 | ||||||||||
Goodwill arising from this transaction reflects the commercial opportunity for the Company to sell aerospace extruded products manufactured by the acquired operation as a complement to the Company's other products and is expected to be deductible for tax purposes over a period of 15 years. | ||||||||||||
The following unaudited pro forma financial information for the Company summarizes the results of operations for the periods indicated as if the Alexco acquisition had been completed as of January 1, 2010. This pro forma financial information considers principally (i) the Company's audited financial results, (ii) the unaudited historical financial results of Alexco, as supplied to the Company, and (iii) select pro forma adjustments to the historical financial results of Alexco, which did not have a material impact on the pro forma Net income, as presented below. The combined results presented below for the year ended December 31, 2011 are the actual results presented in the Statements of Consolidated Income, as the operating results for the Chandler, Arizona (Extrusion) facility were included in the Company's consolidated results commencing January 1, 2011. The following pro forma data does not purport to be indicative of the results of future operations or of the results that would have actually occurred had the acquisition taken place at the beginning of 2010: | ||||||||||||
Year Ended | ||||||||||||
December 31, | ||||||||||||
2011 | 2010 | |||||||||||
Net sales (combined) | $ | 1,301.30 | $ | 1,110.70 | ||||||||
Net income (combined) | $ | 25.1 | $ | 16.9 | ||||||||
Basic earnings per share (combined) | $ | 1.32 | $ | 0.87 | ||||||||
Diluted earnings per share (combined) | $ | 1.32 | $ | 0.87 | ||||||||
The following information presents select financial data relating to the Chandler, Arizona (Extrusion) facility, as included within the Company's consolidated operating results for 2013, 2012 and 2011. | ||||||||||||
Year Ended | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales | $ | 39.5 | $ | 44.5 | $ | 42.8 | ||||||
Net income before income taxes | $ | 6.3 | $ | 9 | $ | 10.5 | ||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||
Goodwill and Intangible Assets | |||||||||||||
Goodwill. The Company had goodwill of $37.2 at both December 31, 2013 and December 31, 2012. Such goodwill is related to the Company's acquisitions of the Chandler, Arizona (Extrusion) facility and the Florence, Alabama facility and is included in the Fabricated Products segment. | |||||||||||||
The Company’s accounting policy is to perform an annual goodwill impairment test during the fourth quarter of each year or whenever events or changes in circumstances indicate that goodwill or the carrying value of intangible assets may not be recoverable. As of December 31, 2013, the Company performed a quantitative impairment test and determined that no impairment of its goodwill and intangible assets was required. | |||||||||||||
Intangible Assets. Identifiable intangible assets at December 31, 2013 and December 31, 2012 are comprised of the following: | |||||||||||||
December 31, 2013: | |||||||||||||
Original cost | Accumulated | Net book | |||||||||||
amortization | value | ||||||||||||
Customer relationships | $ | 38.5 | $ | (4.8 | ) | $ | 33.7 | ||||||
Backlog | 0.8 | (0.8 | ) | — | |||||||||
Trademark and trade name | 0.4 | (0.4 | ) | — | |||||||||
Total | $ | 39.7 | $ | (6.0 | ) | $ | 33.7 | ||||||
December 31, 2012: | |||||||||||||
Original cost | Accumulated | Net book | |||||||||||
amortization | value | ||||||||||||
Customer relationships | $ | 38.5 | $ | (3.2 | ) | $ | 35.3 | ||||||
Backlog | 0.8 | (0.8 | ) | — | |||||||||
Trademark and trade name | 0.4 | (0.3 | ) | 0.1 | |||||||||
Total | $ | 39.7 | $ | (4.3 | ) | $ | 35.4 | ||||||
Amortization expense relating to definite-lived intangible assets is recorded in the Fabricated Products segment. Such expense was $1.7, $1.8 and $2.2 for 2013, 2012 and 2011, respectively. The expected amortization of intangible assets for each of the next five calendar years is $1.6 and $25.7 for years thereafter. |
Income_Tax_Matters
Income Tax Matters | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Tax Matters | ' | |||||||||||||||
Income Tax Matters | ||||||||||||||||
Tax provision. Income before income taxes by geographic area is as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Domestic | $ | 138.9 | $ | 134.5 | $ | 37.9 | ||||||||||
Foreign | 4.3 | 5.1 | 3.4 | |||||||||||||
Income before income taxes | $ | 143.2 | $ | 139.6 | $ | 41.3 | ||||||||||
Income taxes are classified as either domestic or foreign, based on whether payment is made or due to the United States or a foreign country. Certain income classified as foreign is also subject to domestic income taxes. | ||||||||||||||||
The provision for income taxes consists of: | ||||||||||||||||
Federal | Foreign | State | Total | |||||||||||||
2013 | ||||||||||||||||
Current | $ | 1.1 | $ | 16.2 | $ | (0.2 | ) | $ | 17.1 | |||||||
Deferred | (49.7 | ) | (0.5 | ) | (6.7 | ) | (56.9 | ) | ||||||||
Benefit (expense) applied to increase (decrease) Additional capital/ Other comprehensive income | 1.3 | (0.1 | ) | 0.2 | 1.4 | |||||||||||
Total (expense) benefit | $ | (47.3 | ) | $ | 15.6 | $ | (6.7 | ) | $ | (38.4 | ) | |||||
2012 | ||||||||||||||||
Current | $ | — | $ | (2.3 | ) | $ | 0.2 | $ | (2.1 | ) | ||||||
Deferred | (113.0 | ) | (0.2 | ) | (15.3 | ) | (128.5 | ) | ||||||||
Benefit applied to increase Additional capital/ Other comprehensive income | 67.4 | 0.2 | 9.2 | 76.8 | ||||||||||||
Total expense | $ | (45.6 | ) | $ | (2.3 | ) | $ | (5.9 | ) | $ | (53.8 | ) | ||||
2011 | ||||||||||||||||
Current | $ | 1.4 | $ | 0.3 | $ | 0.1 | $ | 1.8 | ||||||||
Deferred | (2.3 | ) | (0.5 | ) | 0.7 | (2.1 | ) | |||||||||
Expense applied to decrease Additional capital/ Other comprehensive income | (13.5 | ) | (0.4 | ) | (2.0 | ) | (15.9 | ) | ||||||||
Total expense | $ | (14.4 | ) | $ | (0.6 | ) | $ | (1.2 | ) | $ | (16.2 | ) | ||||
A reconciliation between the provision for income taxes and the amount computed by applying the federal statutory income tax rate to income before income taxes is as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Amount of federal income tax provision based on the statutory rate | $ | (50.1 | ) | $ | (48.9 | ) | $ | (14.5 | ) | |||||||
Decrease in federal valuation allowances | 0.1 | 0.1 | — | |||||||||||||
Non-deductible compensation expense | (0.3 | ) | (0.4 | ) | (1.1 | ) | ||||||||||
Non-deductible expense | (0.9 | ) | (0.3 | ) | (0.4 | ) | ||||||||||
State income taxes, net of federal benefit 1 | (4.4 | ) | (3.8 | ) | (0.8 | ) | ||||||||||
Foreign income tax (expense) benefit | — | (0.5 | ) | 0.6 | ||||||||||||
Expiration of statute of limitations | 4.6 | — | — | |||||||||||||
Settlement with taxing authorities | 4.4 | — | — | |||||||||||||
Advance pricing agreement | 2.9 | — | — | |||||||||||||
Competent Authority settlement | 5.3 | — | — | |||||||||||||
Income tax provision | $ | (38.4 | ) | $ | (53.8 | ) | $ | (16.2 | ) | |||||||
___________________________ | ||||||||||||||||
1 | State income taxes of $4.4 in 2013 includes a $1.2 increase in the valuation allowance relating to certain unused state net operating losses expected to expire. State income taxes of $0.8 in 2011 includes a $1.2 decrease in the valuation allowance relating to certain state net operating losses expected to be utilized before their expiration. | |||||||||||||||
The table above reflects a full statutory U.S. tax provision despite the fact that the Company is only paying U.S. federal alternative minimum tax (“AMT”) and some state income taxes. See “Tax Attributes” below. | ||||||||||||||||
Deferred Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The components of the Company’s net deferred income tax assets are as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Deferred income tax assets: | ||||||||||||||||
Loss and credit carryforwards | $ | 321.8 | $ | 342.2 | ||||||||||||
VEBAs (See Note 7) | 6.1 | 7.6 | ||||||||||||||
Other assets | 34.4 | 35.3 | ||||||||||||||
Inventories and other | 2.5 | 1.7 | ||||||||||||||
Valuation allowances | (19.9 | ) | (18.7 | ) | ||||||||||||
Total deferred income tax assets | 344.9 | 368.1 | ||||||||||||||
Deferred income tax liabilities: | ||||||||||||||||
Property, plant, and equipment | (73.0 | ) | (69.7 | ) | ||||||||||||
VEBAs (See Note 7) | (152.4 | ) | (136.9 | ) | ||||||||||||
Inventories | (14.9 | ) | — | — | ||||||||||||
Total deferred income tax liabilities | (240.3 | ) | (206.6 | ) | ||||||||||||
Net deferred income tax assets 1 | $ | 104.6 | $ | 161.5 | ||||||||||||
__________________________ | ||||||||||||||||
1 | Of the total net deferred income tax assets of $104.6, $36.7 was included in Prepaid expenses and other current assets, $69.1 was presented as Deferred tax assets, net and $1.2 was presented as Deferred tax liability on the Consolidated Balance Sheet as of December 31, 2013. Of the total net deferred income tax assets of $161.5, $59.5 was included in Prepaid expenses and other current assets and $102.0 was presented as Deferred tax assets, net on the Consolidated Balance Sheet as of December 31, 2012. | |||||||||||||||
Tax Attributes. At December 31, 2013, the Company had $736.9 of net operating loss (“NOL”) carryforwards available to reduce future cash payments for income taxes in the United States. Of the $736.9 of NOL carryforwards at December 31, 2013, $1.7 represents excess tax benefits related to the vesting of employee restricted stock, which will result in an increase in equity if and when such excess tax benefits are ultimately realized. The NOL carryforwards expire periodically through 2030. The Company also had $29.1 of AMT credit carryforwards with an indefinite life, available to offset regular federal income tax requirements. | ||||||||||||||||
To preserve the NOL carryforwards available to the Company, the Company’s certificate of incorporation includes certain restrictions on the transfer of the Company’s common stock. | ||||||||||||||||
In assessing the realizability of deferred tax assets, management considers whether it is “more likely than not” that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers taxable income in carryback years, the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. Due to uncertainties surrounding the realization of some of the Company’s deferred tax assets, primarily including state NOL carryforwards sustained during the prior years and expiring tax benefits, the Company has a valuation allowance against its deferred tax assets. When recognized, the tax benefits relating to any reversal of this valuation allowance will be recorded as a reduction of income tax expense. The increase (decrease) in the valuation allowance was $1.2, $(0.1) and $(1.3) in 2013, 2012 and 2011, respectively. The increase in the valuation allowance in 2013 was primarily due to unutilized state NOL carryforwards that are expected to expire. The decrease in the valuation allowance for 2012 and 2011 was primarily due to the projected utilization of state NOL carryforwards. | ||||||||||||||||
Other. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Canada Revenue Agency audited the Company’s tax returns for fiscal years 1998 through 2004 and issued assessment notices for which Notices of Objection were filed. During the first quarter of 2013, these audits were settled resulting in a cash tax benefit to the Company of $7.6, of which, $6.1 was received in 2013. In addition, during the third quarter of 2013, the Company signed an advance pricing agreement with the Canada Revenue Agency, which resulted in an additional cash tax benefit of $2.9, which is expected to be refunded within the next 12 months. | ||||||||||||||||
The Company’s tax returns for certain past years are still subject to examination by taxing authorities, and the use of NOL carryforwards in future periods could trigger a review of attributes and other tax matters in years that are not otherwise subject to examination. | ||||||||||||||||
The Company has gross unrecognized benefits relating to uncertain tax positions. A reconciliation of changes in the gross unrecognized tax benefits is as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Gross unrecognized tax benefits at beginning of period | $ | 15.7 | $ | 13.7 | $ | 15 | ||||||||||
Gross increases for tax positions of prior years | — | 1.3 | 0.1 | |||||||||||||
Gross decreases for tax positions of prior years | (7.6 | ) | (0.1 | ) | — | |||||||||||
Gross increases for tax positions of current years | — | 0.4 | 0.4 | |||||||||||||
Settlements | — | — | (0.5 | ) | ||||||||||||
Gross decrease for tax positions relating to lapse of a statute of limitation | (3.3 | ) | — | (0.9 | ) | |||||||||||
Foreign currency translation | (1.0 | ) | 0.4 | (0.4 | ) | |||||||||||
Gross unrecognized tax benefits at end of period | $ | 3.8 | $ | 15.7 | $ | 13.7 | ||||||||||
If and when the $3.8 and $15.7 of gross unrecognized tax benefits at December 31, 2013 and December 31, 2012, respectively, are recognized, $2.7 and $14.6 will go through the Company's income tax provision and thus affect the effective tax rate in future periods. For the year ended December 31, 2011, if and when the gross unrecognized tax benefits are ultimately recognized, they will be reflected in the Company’s income tax provision and affect the effective tax rate in future periods. | ||||||||||||||||
The change during 2013 was primarily due to the expiration of statutes, settlements with taxing authorities, foreign currency fluctuations and change in tax positions. The change during 2012 was primarily due to foreign currency fluctuations and change in tax positions. The change during 2011 was primarily due to a partial release of an unrecognized tax benefit as a result of the expiration of a statute, settlements with taxing authorities, foreign currency fluctuations and change in tax positions. | ||||||||||||||||
In addition, the Company recognizes interest and penalties related to unrecognized tax benefits in the income tax provision. The Company had $2.3 and $7.5 accrued for interest and penalties at December 31, 2013 and December 31, 2012, respectively. Of these amounts, none were recorded as current liabilities and included in Other accrued liabilities on the Consolidated Balance Sheets at December 31, 2013 and December 31, 2012. The Company recognized a (decrease) increase in interest and penalty of $(5.2) and $0.9 in its tax provision in 2013 and 2012. The change in interest and penalty in 2011 was immaterial. | ||||||||||||||||
In connection with the gross unrecognized tax benefits (including interest and penalties) denominated in foreign currency, the Company incurred a foreign currency translation adjustment. During 2013, 2012 and 2011, the foreign currency impact on such liabilities resulted in $0.7, $(0.5) and $0.3 currency translation adjustments, respectively, which increased (decreased)Other comprehensive income (loss). | ||||||||||||||||
The Company expects its gross unrecognized tax benefits to be reduced by $1.6 within the next 12 months. |
Employee_Benefits
Employee Benefits | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Employee Benefits | ' | |||||||||||||||||||||||||||
Employee Benefits | ||||||||||||||||||||||||||||
Employee Plans. Employee benefit plans include: | ||||||||||||||||||||||||||||
• | A defined contribution 401(k) savings plan for hourly bargaining unit employees at seven of the Company’s production facilities based on the specific collective bargaining agreement at each facility. For active bargaining unit employees at three of these production facilities, the Company is required to make fixed rate contributions. For active bargaining unit employees at one of these production facilities, the Company is required to match certain employee contributions. For active bargaining unit employees at two of these production facilities, the Company is required to make both fixed rate contributions and concurrent matches. For active bargaining unit employees at the one remaining production facility, the Company is not required to make any contributions. Fixed rate contributions either (i) range from (in whole dollars) $800 to $2,400 per employee per year, depending on the employee’s age, or (ii) vary between 2% to 10% of the employees’ compensation depending on their age and years of service for employees hired prior to January 1, 2004 or is a fixed 2% annual contribution for employees hired on or after January 1, 2004. The Company currently estimates that contributions to such plans will range from $1.0 to $3.0 per year. | |||||||||||||||||||||||||||
• | A defined contribution 401(k) savings plan for salaried and certain hourly employees providing for a concurrent match of up to 4% of certain contributions made by employees plus an annual contribution of between 2% and 10% of their compensation depending on their age and years of service to employees hired prior to January 1, 2004. All new hires on or after January 1, 2004 receive a fixed 2% contribution annually. The Company currently estimates that contributions to such plan will range from $5.0 to $7.0 per year. | |||||||||||||||||||||||||||
• | A defined benefit plan for salaried employees at the Company’s London, Ontario facility, with annual contributions based on each salaried employee’s age and years of service. At December 31, 2013, approximately 65% of the plan assets were invested in equity securities, and 31% of plan assets were invested in fixed income securities. The remaining plan assets were invested in short-term securities. The Company’s investment committee reviews and evaluates the investment portfolio. The asset mix target allocation on the long-term investments is approximately 62% in equity securities, 34% in fixed income securities and the remaining assets in short-term securities. See Note 12 for additional information regarding the fair values of the Canadian pension plan assets. | |||||||||||||||||||||||||||
• | A non-qualified, unfunded, unsecured plan of deferred compensation for key employees who would otherwise suffer a loss of benefits under the Company’s defined contribution plan as a result of the limitations imposed by the Internal Revenue Code of 1986 (the “Code”). Despite the plan being an unfunded plan, the Company makes an annual contribution to a rabbi trust to fulfill future funding obligations, as contemplated by the terms of the plan. The assets in the trust are at all times subject to the claims of the Company’s general creditors, and no participant has a claim to any assets of the trust. Plan participants are eligible to receive distributions from the trust subject to vesting and other eligibility requirements. Assets in the rabbi trust relating to the deferred compensation plan are accounted for as available for sale securities and are included as Other assets on the Consolidated Balance Sheets (see Note 2). Liabilities relating to the deferred compensation plan are included on the Consolidated Balance Sheets as Long-term liabilities (see Note 2). | |||||||||||||||||||||||||||
• | An employment agreement with the Company’s chief executive officer extending through July 6, 2015. The Company also provides certain members of senior management, including each of the Company’s named executive officers, with benefits related to terminations of employment in specified circumstances, including in connection with a change in control, by the Company without cause and by the executive officer with good reason. | |||||||||||||||||||||||||||
VEBA Postretirement Medical Obligations. Certain eligible retirees receive medical coverage through participation in the Union VEBA or a VEBA that provides benefits for certain other eligible retirees, their surviving spouse and eligible dependents (the “Salaried VEBA” and, together with the Union VEBA, the “VEBAs”). The Union VEBA covers certain qualifying bargaining unit retirees and future retirees. The Salaried VEBA covers certain retirees who retired prior to the 2004 termination of the prior plan and employees who were hired prior to February 2002 and subsequently retired or will retire with the requisite age and service. The Union VEBA is managed by four trustees, two of which are appointed by the Company and two of which are appointed by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC ("USW"). Its assets are managed by an independent fiduciary. The Salaried VEBA is managed by trustees who are independent of the Company. | ||||||||||||||||||||||||||||
The Company’s only financial obligations to the VEBAs are (i) to make an annual variable cash contribution and (ii) to pay up to $0.3 of the annual administrative expenses of the VEBAs. The formula determining the annual variable contribution amount is 10% of the first $20.0 of annual cash flow (as defined; in general terms, the principal elements of cash flow are earnings before interest expense, provision for income taxes, and depreciation and amortization less cash payments for, among other things, interest, income taxes, and capital expenditures), plus 20% of annual cash flow (as defined) in excess of $20.0. Such payments may not exceed $20.0 annually, and payments are allocated between the Union VEBA and the Salaried VEBA at 85.5% and 14.5%, respectively. The variable cash contribution obligation to the Union VEBA extends through September 2017, while the obligation to the Salaried VEBA has no express termination date. | ||||||||||||||||||||||||||||
Amounts owed by the Company to the VEBAs are recorded in the Company's Consolidated Balance Sheets under Other accrued liabilities, with a corresponding increase in Net assets in respect of VEBAs. Such amounts are determined and paid on an annual basis. As of December 31, 2013, the Company determined that the variable contribution for 2013 was $16.0 (comprised of $13.7 to the Union VEBA and $2.3 to the Salaried VEBA). These amounts will be paid during the first quarter of 2014. The variable contribution relating to 2012 in the amount of $20.0 was paid in 2013. | ||||||||||||||||||||||||||||
The Company has no claim to the plan assets of the VEBAs nor any obligation to fund their liabilities. The benefits paid by the VEBAs are at the sole discretion of the respective VEBA trustees and are outside the Company's control. Nevertheless, the Company accounts for the VEBAs as defined benefit postretirement plans with the current VEBA assets and future variable contributions from the Company, and earnings thereon, operating as a cap on the benefits to be paid. Accordingly, the Company accounts for net periodic postretirement benefit costs in accordance with ASC Topic 715, Compensation — Retirement Benefits, and records any difference between the assets of each VEBA and its accumulated postretirement benefit obligation in the Company’s consolidated financial statements. Information necessary for the valuation of the net funded status of the plans must be obtained from the VEBAs on an annual basis. | ||||||||||||||||||||||||||||
While under this accounting treatment, the funding status of the VEBAs could result in a liability or asset position on the Company's Consolidated Balance Sheets, such liability or asset has no impact on the Company's cash flow or liquidity. Only the Company's obligation to make an annual variable cash contribution can have a material impact to the Company's cash flow or liquidity. | ||||||||||||||||||||||||||||
In 2011 and 2012, the Union VEBA owned shares of the Company's common stock that were subject to a stock transfer restriction agreement that limited its ability to sell such shares. In 2011, transfer restrictions were removed on a portion of the shares held by the Union VEBA, and restrictions on all remaining shares were removed in 2012. During periods when the Union VEBA's shares were subject to the stock transfer restrictions, the Company treated such shares as being similar to treasury stock (i.e. as a reduction of Stockholders' equity) on its Consolidated Balance Sheet. Refer to Statements of Consolidated Stockholders' Equity for the number of shares on which stock transfer restrictions were removed. | ||||||||||||||||||||||||||||
Key Assumptions. The following data presents the key assumptions used and the amounts reflected in the Company’s financial statements with respect to the Company’s Canadian pension plan and the VEBAs. The Company uses a December 31 measurement date for all of the plans. | ||||||||||||||||||||||||||||
Assumptions used to determine benefit obligations as of December 31 are: | ||||||||||||||||||||||||||||
Canadian Pension Benefits | VEBA Benefits | |||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Union | Salaried | Union | Salaried | |||||||||||||||||||||||||
VEBA | VEBA | VEBA | VEBA | |||||||||||||||||||||||||
Benefit obligations assumptions: | ||||||||||||||||||||||||||||
Discount rate | 4.9 | % | 4.4 | % | 4.7 | % | 4.2 | % | 4 | % | 3.4 | % | ||||||||||||||||
Rate of compensation increase | 3 | % | 3 | % | — | — | — | — | ||||||||||||||||||||
Initial medical trend rate 1 | — | — | 7.5 | % | — | 8 | % | — | ||||||||||||||||||||
Ultimate medical trend rate 1 | — | — | 5 | % | — | 5 | % | — | ||||||||||||||||||||
1 | The medical trend rate assumptions used for the Union VEBA were provided by the Union VEBA and certain industry data were provided by the Company's actuaries. The trend rate is assumed to decline to 5% by 2019 at each of December 31, 2013 and December 31, 2012. A one-percentage-point increase in the assumed medical trend rates would increase the accumulated postretirement benefit obligation of the Union VEBA by $27.8 and $41.1 at December 31, 2013 and December 31, 2012, respectively. A one-percentage-point decrease in the assumed medical trend rates would decrease the accumulated postretirement benefit obligation of the Union VEBA by $22.7 and $33.4 at December 31, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||
Key assumptions made in computing the net asset/obligation of each VEBA and in total include: | ||||||||||||||||||||||||||||
With respect to VEBA assets: | ||||||||||||||||||||||||||||
• | Based on the information received from the VEBAs, at December 31, 2013 and December 31, 2012 both the Salaried VEBA and Union VEBA assets were invested in various managed proprietary funds. VEBA plan assets are managed by various investment advisors selected by the VEBA trustees, and are not under the control of the Company. | |||||||||||||||||||||||||||
• | The Company's variable payment, if any, is treated as a funding/contribution policy and not counted as a VEBA asset at December 31 for actuarial purposes. | |||||||||||||||||||||||||||
With respect to VEBA obligations: | ||||||||||||||||||||||||||||
• | The accumulated postretirement benefit obligation (“APBO”) for each VEBA was computed based on the level of benefits being provided by it at December 31, 2013 and December 31, 2012. | |||||||||||||||||||||||||||
• | Since the Salaried VEBA was paying a fixed annual amount to its constituents at both December 31, 2013 and December 31, 2012, no future cost trend rate increase has been assumed in computing the APBO for the Salaried VEBA. | |||||||||||||||||||||||||||
Assumptions used to determine net periodic benefit cost (income) for the years ended December 31 are: | ||||||||||||||||||||||||||||
Canadian Pension Benefits | VEBA Benefits | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Union | Salaried | Union | Salaried | Union | Salaried | |||||||||||||||||||||||
VEBA | VEBA | VEBA | VEBA | VEBA | VEBA | |||||||||||||||||||||||
Net periodic benefit cost assumptions: | ||||||||||||||||||||||||||||
Discount rate | 4.4 | % | 5.6 | % | 5.7 | % | 4 | % | 3.4 | % | 4.2 | % | 3.75 | % | 5.25 | % | 4.7 | % | ||||||||||
Expected long-term return on plan assets 1 | 4.5 | % | 4.6 | % | 5.4 | % | 6.25 | % | 7.25 | % | 7.25 | % | 7.25 | % | 6 | % | 7.25 | % | ||||||||||
Rate of compensation increase | 3 | % | 3 | % | 3.5 | % | — | — | — | — | — | — | ||||||||||||||||
Initial medical trend rate2 | — | — | — | 8 | % | — | 8.5 | % | — | 9 | % | — | ||||||||||||||||
Ultimate medical trend rate2 | — | — | — | 5 | % | — | 5 | % | — | 5 | % | — | ||||||||||||||||
_____________________ | ||||||||||||||||||||||||||||
1 | The expected long-term rate of return assumption is based on the targeted investment portfolios provided to the Company by the VEBAs’ trustees. | |||||||||||||||||||||||||||
2 | The medical trend rate assumptions used for the Union VEBA, which is currently paying certain prescription drug benefits, were provided by the Union VEBA and certain industry data were provided by the Company's actuaries. The trend rate is assumed to decline to 5% by 2019 for each of 2013, 2012 and 2011. A one-percentage-point increase in the assumed medical trend rates would increase the aggregate of the service and interest cost components of net periodic benefit costs by $2.0, $2.5 and $2.7 for 2013, 2012 and 2011, respectively. A one-percentage-point decrease in the assumed medical trend rates would decrease the aggregate of the service and interest cost components of net periodic benefit costs by $1.5, $2.0, and $2.1 for 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||
Benefit Obligations and Funded Status — The following table presents the benefit obligations and funded status of the Company’s Canadian pension and the VEBAs as of December 31, 2013 and December 31, 2012, and the corresponding amounts that are included in the Company’s Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
Canadian Pension Benefits | VEBA Benefits | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||||||||||||||
Obligation at beginning of year | $ | 7 | $ | 5.4 | $ | 384.1 | $ | 446.9 | ||||||||||||||||||||
Foreign currency translation adjustment | (0.5 | ) | 0.2 | — | — | |||||||||||||||||||||||
Service cost | 0.3 | 0.2 | 2.5 | 3.4 | ||||||||||||||||||||||||
Interest cost | 0.3 | 0.3 | 14.6 | 17.9 | ||||||||||||||||||||||||
Actuarial (gain) loss1 | (0.2 | ) | 1.1 | (7.3 | ) | (66.2 | ) | |||||||||||||||||||||
Plan participant contributions | — | 0.1 | — | — | ||||||||||||||||||||||||
Benefits paid by Company | (0.3 | ) | (0.3 | ) | — | — | ||||||||||||||||||||||
Benefits paid by VEBA | — | — | (21.5 | ) | (20.8 | ) | ||||||||||||||||||||||
Reimbursement from retiree drug subsidy2 | — | — | 2.3 | 2.9 | ||||||||||||||||||||||||
Obligation at end of year | 6.6 | 7 | 374.7 | 384.1 | ||||||||||||||||||||||||
Change in Plan Assets: | ||||||||||||||||||||||||||||
FMV of plan assets at beginning of year | 5.7 | 4.9 | 744.7 | 571 | ||||||||||||||||||||||||
Foreign currency translation adjustment | (0.4 | ) | 0.2 | — | — | |||||||||||||||||||||||
Actual return on assets | 0.7 | 0.3 | 39.2 | 63 | ||||||||||||||||||||||||
Plan participant contributions | — | 0.1 | — | — | ||||||||||||||||||||||||
Sale of Company's common stock by Union VEBA | — | — | — | 108.6 | ||||||||||||||||||||||||
Employer/Company contributions 4 | 0.5 | 0.5 | 16 | 20 | ||||||||||||||||||||||||
Benefits paid by Company | (0.3 | ) | (0.3 | ) | — | — | ||||||||||||||||||||||
Benefits paid by VEBA | — | — | (21.5 | ) | (20.8 | ) | ||||||||||||||||||||||
Reimbursement from retiree drug subsidy2 | — | — | 2.3 | 2.9 | ||||||||||||||||||||||||
FMV of plan assets at end of year | 6.2 | 5.7 | 780.7 | 744.7 | ||||||||||||||||||||||||
Net Funded Status 3 | $ | (0.4 | ) | $ | (1.3 | ) | $ | 406 | $ | 360.6 | ||||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||
1 | The actuarial gain relating to the VEBA plans in 2013 was primarily comprised of (i) a gain of $54.9 due to projected lower drug claim cost in the future because of lower than expected drug claim costs in 2013 in the Union VEBA, (ii) a gain of $30.5 due to a decrease in discount rates used to determine benefit obligations for both VEBAs, (iii) a gain of $8.0 primarily due to a higher than expected mortality rate in the Union VEBA, partially offset by (iv) a loss of $63.8 due to the addition of a new healthcare premium reimbursement benefit starting in 2014 in the Union VEBA, (v) a loss of $20.8 resulting from an increase in the existing benefits reimbursement rates starting in 2014 for plan participants in both VEBAs, and (vi) a loss of $2.7 primarily due to an increase in administrative cost in the Union VEBA. | |||||||||||||||||||||||||||
The actuarial gain relating to the VEBA plans in 2012 was primarily comprised of (i) a gain of $42.2 due to lower than expected prescription drug claim cost and a change in retiree drug subsidy assumption in 2012 in the Union VEBA, (ii) a gain of $16.2 due to changes in census data for both VEBA plans, (iii) a gain of $9.6 relating to a change in the participant marital status assumption in the Union VEBA and (iv) a gain of $11.0 relating to a change in the assumption for annual benefit utilization per participant in the Salaried VEBA, partially offset by a loss of $9.7 due to a decrease in discount rates used to determine benefit obligations for both VEBA plans. | ||||||||||||||||||||||||||||
2 | The Union VEBA is eligible for the retiree drug subsidy of the Medicare Modernization Act that went into effect January 1, 2006 equal to 28% of allowable drug costs. As a result, the Company has measured the Union VEBA’s obligations and costs to take into account this subsidy. | |||||||||||||||||||||||||||
3 | Prepaid benefit of $406.0 relating to the VEBAs at December 31, 2013 was presented as Net asset in respect of VEBAs on the Consolidated Balance Sheet. With respect to the Prepaid benefit of $360.6 relating to the VEBAs at December 31, 2012, $365.9 was included in Net asset in respect of VEBA and $5.3 was included in Net liability in respect of VEBA on the Consolidated Balance Sheets. | |||||||||||||||||||||||||||
4 | The Company accrued a liability for a variable cash contribution of $16.0 to the VEBAs with respect to calendar year 2013, which will be paid in the first quarter of 2014. The Company accrued a liability for a variable cash contribution of $20.0 to the VEBAs with respect to calendar year 2012, which was paid in the first quarter of 2013. | |||||||||||||||||||||||||||
With respect to the VEBAs, the Company has no claim to the plan assets nor obligation to fund the liability. The Company's only financial obligations to the VEBAs are the variable cash contribution and reimbursement of certain administrative fees discussed previously. The following table presents the net assets of each VEBA as of December 31, 2013 and December 31, 2012 (such information is also included in the tables required under GAAP above which roll forward the assets and obligations): | ||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Union VEBA | Salaried VEBA | Total | Union VEBA | Salaried VEBA | Total | |||||||||||||||||||||||
Accumulated plan benefit obligation | $ | (312.7 | ) | $ | (62.0 | ) | $ | (374.7 | ) | $ | (319.4 | ) | $ | (64.7 | ) | $ | (384.1 | ) | ||||||||||
Plan assets | 717.5 | 63.2 | 780.7 | 685.3 | 59.4 | 744.7 | ||||||||||||||||||||||
Net Funded Status | $ | 404.8 | $ | 1.2 | $ | 406 | $ | 365.9 | $ | (5.3 | ) | $ | 360.6 | |||||||||||||||
The accumulated benefit obligation for the Canadian defined benefit pension plan was $5.8 and $6.2 at December 31, 2013 and December 31, 2012, respectively. The Company expects to contribute $0.5 to the Canadian pension plan in 2014. | ||||||||||||||||||||||||||||
As of December 31, 2013, the net benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter are as follows: | ||||||||||||||||||||||||||||
Benefit Payments Due by Period | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019-2023 | |||||||||||||||||||||||
Canadian pension plan benefit payments | $ | 0.2 | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 2 | ||||||||||||||||
VEBA benefit payments1 | 30.5 | 30.5 | 30.3 | 30.1 | 29.8 | 142.5 | ||||||||||||||||||||||
Anticipated retiree drug subsidy1 | (3.1 | ) | (3.3 | ) | (3.4 | ) | (3.5 | ) | (3.5 | ) | (18.6 | ) | ||||||||||||||||
Total net benefits | $ | 27.6 | $ | 27.5 | $ | 27.2 | $ | 26.9 | $ | 26.6 | $ | 125.9 | ||||||||||||||||
__________________________________ | ||||||||||||||||||||||||||||
1 Such amounts were obtained from the VEBAs. The Company's only financial obligations to the VEBAs are to pay the variable contributions, which may not exceed $20.0 annually, and certain administrative fees. | ||||||||||||||||||||||||||||
The amount of loss which is recognized in the Consolidated Balance Sheets (in Accumulated other comprehensive income (loss)) associated with the Company’s Canadian defined benefit pension plan and the VEBAs (before tax) that have not yet been reflected in net periodic benefit cost as of December 31, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||||||||||
Canadian Pension Benefits | VEBA Benefits | |||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Accumulated net actuarial losses | $ | (1.8 | ) | $ | (2.8 | ) | $ | (0.5 | ) | $ | (3.2 | ) | ||||||||||||||||
Transition assets | 0.2 | 0.3 | — | — | ||||||||||||||||||||||||
Prior service cost | — | — | (32.7 | ) | (36.9 | ) | ||||||||||||||||||||||
Loss recognized in Accumulated other comprehensive (loss) | $ | (1.6 | ) | $ | (2.5 | ) | $ | (33.2 | ) | $ | (40.1 | ) | ||||||||||||||||
The amounts in Accumulated other comprehensive income (loss) that have not yet been recognized as components of net periodic pension benefit costs at December 31, 2013 that are expected to be recognized in 2014 are $0.1 for the Canadian pension plan relating to prior service cost and $5.2 for the VEBAs. Of the $5.2 relating to the VEBAs, $4.1 is related to amortization of prior service cost and $1.1 is related to amortization of net actuarial loss. See the Statement of Comprehensive Income (Loss) for reclassification adjustments of other comprehensive income that were recognized as components of net periodic benefit costs for 2013, 2012 and 2011. | ||||||||||||||||||||||||||||
Fair Value of Plan Assets. See Note 12 for the fair values of the assets of the Canadian pension plan and the VEBAs. | ||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost (Income) — The Company’s results of operations included the following impacts associated with the Canadian defined benefit plan and the VEBAs: (a) charges for service rendered by employees; (b) a charge for accretion of interest; (c) a benefit for the return on plan assets; and (d) amortization of net gains or losses on assets, prior service costs associated with plan amendments and actuarial differences. The following table presents the components of net periodic benefit cost (income) for 2013, 2012 and 2011: | ||||||||||||||||||||||||||||
Canadian Pension Benefits | VEBA Benefits | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Service cost | $ | 0.3 | $ | 0.2 | $ | 0.2 | $ | 2.5 | $ | 3.4 | $ | 2.2 | ||||||||||||||||
Interest cost | 0.3 | 0.3 | 0.3 | 14.6 | 17.9 | 17.4 | ||||||||||||||||||||||
Expected return on plan assets | (0.3 | ) | (0.2 | ) | (0.3 | ) | (45.1 | ) | (40.4 | ) | (30.4 | ) | ||||||||||||||||
Amortization of prior service cost1 | — | — | — | 4.2 | 4.2 | 4.2 | ||||||||||||||||||||||
Amortization of net actuarial loss | 0.2 | 0.1 | 0.1 | 1.3 | 3 | 0.6 | ||||||||||||||||||||||
Net periodic benefit costs (income) | $ | 0.5 | $ | 0.4 | $ | 0.3 | $ | (22.5 | ) | $ | (11.9 | ) | $ | (6.0 | ) | |||||||||||||
__________________________ | ||||||||||||||||||||||||||||
1 | The Company amortizes prior service cost on a straight-line basis over the average remaining years of service to full eligibility for benefits of the active plan participants. | |||||||||||||||||||||||||||
The following tables present the total (income) charges related to all benefit plans for 2013, 2012 and 2011: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Canadian pension plan | $ | 0.5 | $ | 0.4 | $ | 0.3 | ||||||||||||||||||||||
VEBAs | (22.5 | ) | (11.9 | ) | (6.0 | ) | ||||||||||||||||||||||
Deferred compensation plan | 1.2 | 0.9 | 0.2 | |||||||||||||||||||||||||
Defined contribution plans | 7.9 | 7.6 | 7.1 | |||||||||||||||||||||||||
Total | $ | (12.9 | ) | $ | (3.0 | ) | $ | 1.6 | ||||||||||||||||||||
The following tables present the allocation of these (income) charges: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Fabricated Products | $ | 8 | $ | 7.4 | $ | 6.4 | ||||||||||||||||||||||
All Other | (20.9 | ) | (10.4 | ) | (4.8 | ) | ||||||||||||||||||||||
Total | $ | (12.9 | ) | $ | (3.0 | ) | $ | 1.6 | ||||||||||||||||||||
For all periods presented, the net periodic benefits relating to the VEBAs are included as a component of Selling, administrative, research and development and general expense within All Other and substantially all of the Fabricated Products segment’s related charges are in Cost of products sold, excluding depreciation and amortization and other items with the balance in Selling, administrative, research and development and general. |
Multiemployer_Pension_Plans
Multiemployer Pension Plans | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Multiemployer Plans [Abstract] | ' | ||||||||||||||||||||||||||
Multiemployer Pension Plans Disclosure | ' | ||||||||||||||||||||||||||
Multiemployer Pension Plans | |||||||||||||||||||||||||||
Overview. The Company contributes to multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover its union-represented employees at certain facilities. At December 31, 2013, approximately | |||||||||||||||||||||||||||
55% of the Company's total employees were union-represented employees at facilities participating in these multiemployer pension plans. The Company currently estimates that contributions will range from $3.0 to $5.0 per year through 2015. | |||||||||||||||||||||||||||
The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: | |||||||||||||||||||||||||||
• | Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. | ||||||||||||||||||||||||||
• | If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. | ||||||||||||||||||||||||||
• | If the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. | ||||||||||||||||||||||||||
The Company's participation in multiemployer pension plans for the annual period ended December 31, 2013 is outlined in the table below. | |||||||||||||||||||||||||||
Pension Fund | Employer Identification Number | Pension Protection Act Zone Status1 | FIP/RP Status Pending/Implemented in 20132 | Contributions of the Company | Surcharge Imposed in 2013 | Expiration Date of Collective-Bargaining Agreement | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||
Steelworkers Pension Trust (USW)3 | 236648508 | Green | Green | No | $ | 2.9 | $ | 3 | $ | 2.6 | No | Mar-14 | - | Nov-17 | |||||||||||||
Other Funds4 | 0.9 | 0.9 | 1 | ||||||||||||||||||||||||
$ | 3.8 | $ | 3.9 | $ | 3.6 | ||||||||||||||||||||||
________________ | |||||||||||||||||||||||||||
1 | The most recent Pension Protection Act zone status available in 2013 and 2012 for the Steelworkers Pension Trust is for the plan's year-end at December 31, 2012 and December 31, 2011, respectively. The zone status is based on information that the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the green zone are at least 80 percent funded. | ||||||||||||||||||||||||||
2 | The “FIP/RP Status Pending/Implemented” column indicates if a Financial Improvement Plan (FIP) or a Rehabilitation Plan (RP) is either pending or has been implemented for the plan under the Pension Protection Act. | ||||||||||||||||||||||||||
3 | The Company is party to three USW collective-bargaining agreements that require contributions to the Steelworkers Pension Trust. Current USW collective bargaining agreements covering employees at the Newark, Ohio and Spokane (Trentwood), Washington facilities covers 89% of the Company's USW-represented employees and expires in September 2015. The Company's monthly contributions per hour worked by each bargaining unit employee at the Newark, Ohio and Spokane (Trentwood), Washington facilities are (in whole dollars) $1.25 and will increase to (in whole dollars) $1.50 in July 2015. The union contracts covering employees at the Richmond (Bellwood), Virginia facility and Florence, Alabama facility cover 7% and 4% of the Company's USW-represented employees, respectively, and expire in November 2017 and March 2014, respectively. | ||||||||||||||||||||||||||
4 | Other Funds consists of plans that are not individually significant. | ||||||||||||||||||||||||||
The Company was not listed in any of the plans' Forms 5500 or the CWIPP financial statements as providing more than 5% of the total contributions for any of the plan years disclosed. At December 31, 2013, Forms 5500 were not available for the plan years ending in 2013. Further, there were no significant changes to the number of employees covered by the Company's multiemployer plans that would affect the period-to-period comparability of the contributions for the years presented. |
Employee_Incentive_Plans
Employee Incentive Plans | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Employee Incentive Plans | ' | ||||||||||||||||||||
Employee Incentive Plans | |||||||||||||||||||||
Short-term Incentive Plans (“STI Plans”) | |||||||||||||||||||||
The Company has a short-term incentive compensation plan for senior management and certain other employees payable at the Company’s election in cash, shares of common stock, or a combination of cash and shares of common stock. Amounts earned under the plan are based primarily on EVA of the Company’s Fabricated Products business, adjusted for certain safety and performance factors. EVA, as defined by the Company's STI Plans, is a measure of the excess of the Company’s adjusted pre-tax operating income for a particular year over a pre-determined percentage of the adjusted net assets of the immediately preceding year, measured over a one-year period. Most of the Company’s production facilities have similar programs for both hourly and salaried employees. | |||||||||||||||||||||
Total costs relating to STI Plans were recorded as follows, for each period presented: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | $ | 4.6 | $ | 4.3 | $ | 3.2 | |||||||||||||||
Selling, administrative, research and development, and general | 11.1 | 10.1 | 5.2 | ||||||||||||||||||
Total costs recorded in connection with STI Plans | $ | 15.7 | $ | 14.4 | $ | 8.4 | |||||||||||||||
The following table presents the allocation of the charges detailed above, by segment: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Fabricated Products | $ | 11.2 | $ | 9.9 | $ | 5.9 | |||||||||||||||
All Other | 4.5 | 4.5 | 2.5 | ||||||||||||||||||
Total costs recorded in connection with STI Plans | $ | 15.7 | $ | 14.4 | $ | 8.4 | |||||||||||||||
Long- term Incentive Programs | |||||||||||||||||||||
General. Officers and other key employees of the Company or one or more of its subsidiaries, as well as directors of the Company, are eligible to participate in the Kaiser Aluminum Corporation Amended and Restated 2006 Equity and Performance Incentive Plan (as amended, the “Equity Incentive Plan”). The Equity Incentive Plan permits the granting of awards in the form of options to purchase common shares, stock appreciation rights, shares of non-vested and vested stock, restricted stock units, performance shares, performance units and other awards. The Equity Incentive Plan will expire on July 6, 2016, and no grants will be made thereunder after that date. The Company’s Board of Directors may, in its discretion, terminate the Equity Incentive Plan at any time. The termination of the Equity Incentive Plan will not affect the rights of participants or their successors under any awards outstanding and not exercised in full on the date of termination, and all grants made on or prior to the date of termination will remain in effect thereafter subject to the terms of the applicable grant agreement and the Equity Incentive Plan. Subject to certain adjustments that may be required from time to time to prevent dilution or enlargement of the rights of participants under the Equity Incentive Plan, a total of 2,722,222 common shares have been authorized for issuance under the Equity Incentive Plan. At December 31, 2013, 840,693 common shares were available for additional awards under the Equity Incentive Plan. Compensation charges relating to all awards under the Equity Incentive Plan are included in Selling, administrative, research and development and general expenses. | |||||||||||||||||||||
Non-vested Common Shares, Restricted Stock Units, and Performance Shares. The Company grants non-vested common shares to its non-employee directors, executive officers and other key employees. The Company also grants restricted stock units to certain employees. The restricted stock units have rights similar to the rights of non-vested common shares, and the employee will receive one common share for each restricted stock unit upon the vesting of the restricted stock unit. In addition to non-vested common shares and restricted stock units, the Company also grants performance shares to executive officers and other key employees. Such awards are subject to performance requirements pertaining to the Company’s EVA as set forth in each year’s LTI program, measured over a three-year performance period. EVA, as defined in the Company’s LTI programs, is the excess of the Company’s adjusted pre-tax operating income for a particular year over a pre-determined percentage of the adjusted net assets of the immediately preceding year. The number of performance shares, if any, that will ultimately vest and result in the issuance of common shares depends on the average annual EVA achieved for the specified three-year performance period. During 2013, a portion of the performance shares granted under the 2010-2012 LTI program vested (see “Summary of Activity” below). The vesting of performance shares and resulting issuance and delivery of common shares, if any, under the 2011-2013 LTI program, 2012-2014 LTI program and 2013-2015 LTI program will occur in 2014, 2015 and 2016, respectively. Holders of performance shares do not receive voting rights through the ownership of such performance shares. | |||||||||||||||||||||
Non-cash Compensation Expense. Recorded non-cash compensation expense by type of award under LTI programs were as follows, for each period presented: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Service-based non-vested common shares and restricted stock units | $ | 4.3 | $ | 3.8 | $ | 4.1 | |||||||||||||||
Performance shares | 2.3 | 1.8 | 1.1 | ||||||||||||||||||
Total non-cash compensation expense | $ | 6.6 | $ | 5.6 | $ | 5.2 | |||||||||||||||
The following table presents the allocation of the charges detailed above, by segment: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Fabricated Products | $ | 2.2 | $ | 1.7 | $ | 1.5 | |||||||||||||||
All Other | 4.4 | 3.9 | 3.7 | ||||||||||||||||||
Total non-cash compensation expense | $ | 6.6 | $ | 5.6 | $ | 5.2 | |||||||||||||||
Recognized tax benefit relating to non-cash compensation expense were $2.4, $2.1 and $2.0 for 2013, 2012 and 2011, respectively. | |||||||||||||||||||||
Unrecognized Gross Compensation Cost Data. The following table presents unrecognized gross compensation cost data, by type of award: | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Unrecognized gross compensation costs, by award type | Expected period (in years) over which the remaining gross compensation costs will be recognized, by award type | ||||||||||||||||||||
Service-based non-vested common shares and restricted stock units | $ | 3.8 | 1.5 | ||||||||||||||||||
Performance shares | $ | 4.8 | 1.9 | ||||||||||||||||||
Summary of Activity. A summary of the activity with respect to non-vested common shares, restricted stock units and performance shares for the year ended December 31, 2013 is as follows: | |||||||||||||||||||||
Non-Vested | Restricted | Performance | |||||||||||||||||||
Common Shares | Stock Units | Shares | |||||||||||||||||||
Shares | Weighted-Average | Units | Weighted-Average | Shares | Weighted-Average | ||||||||||||||||
Grant-Date Fair | Grant-Date Fair | Grant-Date Fair | |||||||||||||||||||
Value per Share | Value per Unit | Value per Share | |||||||||||||||||||
Outstanding at December 31, 2012 | 158,684 | $ | 42.47 | 5,183 | $ | 43.99 | 583,950 | $ | 41.78 | ||||||||||||
Granted | 76,336 | 58.65 | 2,600 | 57.7 | 175,317 | 57.75 | |||||||||||||||
Vested | (90,233 | ) | 42.31 | (2,311 | ) | 42.74 | (34,192 | ) | 34.84 | ||||||||||||
Forfeited | (820 | ) | 53 | — | — | — | — | ||||||||||||||
Canceled | — | — | — | — | (162,521 | ) | 34.58 | ||||||||||||||
Outstanding at December 31, 2013 | 143,967 | $ | 51.09 | 5,472 | $ | 51.03 | 562,554 | $ | 49.26 | ||||||||||||
The total grant-date fair value for shares granted during 2013, 2012 and 2011 was $14.8, $13.9 and $12.8, respectively. Total grant-date fair value for shares that vested during 2013, 2012 and 2011 was $5.1, $3.5 and $6.3. | |||||||||||||||||||||
Stock Options. As of both December 31, 2013 and December 31, 2012, there were 20,791 fully-vested options outstanding, in each case exercisable to purchase common shares at $80.01 per share and having a remaining contractual life of 3.25 and 4.25 years, respectively. The grant-date fair value of all options was $39.90 per share. No new options were granted and no existing options were forfeited, or exercised during 2013 or 2012. No options expired in 2013. | |||||||||||||||||||||
Vested Stock. From time to time, the Company issues common shares to non-employee directors electing to receive common shares in lieu of all or a portion of their annual retainer fees. The fair value of these common shares is based on the fair value of the shares at the date of issuance and is immediately recognized in earnings as a period expense. During 2013, 2012 and 2011, the Company recorded $0.2, $0.2 and $0.2, respectively, relating to common shares granted to non-employee directors in lieu of all or a portion of their annual retainer fees. | |||||||||||||||||||||
Under the Equity Incentive Plan, participants may elect to have the Company withhold common shares to satisfy minimum statutory tax withholding obligations arising in connection with the exercise of stock options and vesting of non-vested shares, restricted stock units and performance shares. Any such shares withheld are canceled by the Company on the applicable vesting dates, which correspond to the times at which income to the employee is recognized. When the Company withholds these common shares, the Company is required to remit to the appropriate taxing authorities the fair value of the shares withheld as of the vesting date. During 2013, 2012 and 2011, 40,075, 45,801 and 62,637 commons shares, respectively, were withheld and canceled for this purpose. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Commitments and Contingencies | ' | ||||||||||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||||||||
Commitments. The Company has a variety of financial commitments, including purchase agreements, forward foreign exchange and forward sales contracts, indebtedness (and related Call Options and Warrants) and letters of credit (see Note 3 and Note 11). | |||||||||||||||||||||||||
Rental expenses were $7.5, $10.0 and $10.0 for 2013, 2012, and 2011, respectively. There are renewal options in various operating leases subject to certain terms and conditions. Minimum rental commitments under operating leases at December 31, 2013 are as follows for years ending December 31: | |||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 and Thereafter | ||||||||||||||||||||
Minimum rental commitments | $ | 4.7 | $ | 4 | $ | 2.9 | $ | 2.1 | $ | 2 | $ | 29.4 | |||||||||||||
Purchase obligations are primarily comprised of various contracts with suppliers of aluminum that require the Company to purchase minimum quantities of aluminum in future years at a price to be determined at the time of purchase based primarily on the underlying metal price at that time. Amounts included in the table below are based on minimum quantities at the metal price at December 31, 2013. The Company believes the minimum quantities are lower than its current requirements for aluminum. Actual quantities and actual metal prices at the time of purchase could be different. Amounts due under purchase obligations as of December 31, 2013 are as follows for years ending December 31: | |||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 and Thereafter | ||||||||||||||||||||
Purchase obligations | $ | 278.5 | $ | 4.9 | $ | 0.4 | $ | 0.4 | $ | 0.4 | $ | 1.9 | |||||||||||||
Environmental Contingencies. The Company is subject to a number of environmental laws and regulations, to potential fines or penalties assessed for alleged breaches of such laws and regulations, and to potential claims based upon such laws and regulations. | |||||||||||||||||||||||||
The Company has established procedures for regularly evaluating environmental loss contingencies. The Company’s environmental accruals represent the Company’s undiscounted estimate of costs reasonably expected to be incurred based on presently enacted laws and regulations, existing requirements, currently available facts, existing technology, and the Company’s assessment of the likely remediation actions to be taken. | |||||||||||||||||||||||||
The following table presents the changes in such accruals, which are primarily included in Long-term liabilities. | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Beginning balance | $ | 21.7 | $ | 22 | $ | 20.2 | |||||||||||||||||||
Additional accruals | 4.5 | 1.2 | 3.9 | ||||||||||||||||||||||
Less expenditures | (3.4 | ) | (1.5 | ) | (2.1 | ) | |||||||||||||||||||
Ending balance | $ | 22.8 | $ | 21.7 | $ | 22 | |||||||||||||||||||
In 2012, the Company submitted a final feasibility study to the Washington State Department of Ecology (“Washington State Ecology”) that included recommendations for remediation alternatives primarily to address the historical use of oils containing polychlorinated biphenyls, ("PCBs") at the Company’s Spokane (Trentwood), Washington facility. The Company also signed an amended work order in 2012 with Washington State Ecology allowing certain remediation activities to begin the initiation of a treatability study in regards to proposed PCB remediation methods. The Company began implementation of certain approved sections of the work plan during the third quarter of 2013 and continues to work with Washington State Ecology in developing the implementation work plans, which are subject to Washington State Ecology approval. | |||||||||||||||||||||||||
During 2013, at the request of the Ohio Environmental Protection Agency (“OEPA)”, the Company initiated an investigational study of its Newark, Ohio facility related to historical on-site waste disposal. As this work continues and progresses to a risk assessment and feasibility study, the Company will establish and update estimates for probable and estimable remediation. Actual and final cost for remediation will not be fully determinable until a final feasibility study is submitted and accepted by OEPA and work plans are prepared, which is expected to occur in the next 18 to 24 months. | |||||||||||||||||||||||||
At December 31, 2013, the Company’s environmental accrual of $22.8 represented the Company’s estimate of the incremental cost based on proposed alternatives in the final feasibility study related to the Company’s Spokane (Trentwood), Washington facility and currently available facts with respect to its Newark, Ohio facility and certain other locations owned or formally owned by the Company. Once the remediation actions are approved for these sites, the Company expects the implementation and ongoing monitoring could occur over a period of 30 years. | |||||||||||||||||||||||||
As additional facts are developed, feasibility studies are completed, draft remediation plans are modified, necessary regulatory approvals for the implementation of remediation are obtained, alternative technologies are developed, and/or other factors change, there may be revisions to management’s estimates, and actual costs may exceed the current environmental accruals. The Company believes at this time that it is reasonably possible that undiscounted costs associated with these environmental matters may exceed current accruals by amounts that could be, in the aggregate, up to an estimated $25.0 over the remediation period. It is reasonably possible that the Company’s recorded estimate may change in the next 12 months. | |||||||||||||||||||||||||
Other Contingencies. The Company is party to various lawsuits, claims, investigations, and administrative proceedings that arise in connection with past and current operations. The Company evaluates such matters on a case-by-case basis, and its policy is to vigorously contest any such claims it believes are without merit. The Company accrues for a legal liability when it is both probable that a liability has been incurred and the amount of the loss is reasonably estimable. Quarterly, in addition to when changes in facts and circumstances require it, the Company reviews and adjusts these accruals to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information, and events pertaining to a particular case. While uncertainties are inherent in the final outcome of such matters and it is presently impossible to determine the actual cost that may ultimately be incurred, management believes that it has sufficiently reserved for such matters and that the ultimate resolution of pending matters will not have a material impact on the Company’s consolidated financial position, operating results, or liquidity. |
Derivative_Financial_Instrumen
Derivative Financial Instruments and Related Hedging Programs | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Derivative Financial Instruments and Related Hedging Programs | ' | |||||||||||||||||||||||
Derivative Financial Instruments and Related Hedging Programs | ||||||||||||||||||||||||
Overview. In conducting its business, the Company enters into derivative transactions, including forward contracts and options, to limit its economic (i.e., cash) exposure resulting from (i) metal price risk related to its sale of fabricated aluminum products and the purchase of metal used as raw material for its fabrication operations, (ii) energy price risk relating to fluctuating prices of natural gas and electricity used in its production processes, and (iii) foreign currency requirements with respect to its foreign subsidiaries and cash commitments for equipment purchases denominated in foreign currency. Additionally, in connection with the issuance of the Convertible Notes, the Company purchased cash-settled Call Options relating to the Company’s common stock to limit its exposure to the cash conversion feature of the Convertible Notes (see Note 3). | ||||||||||||||||||||||||
The Company may modify the terms of its derivative contracts based on operational needs or financing objectives. Because the Company's hedging activities are generally designed to lock-in a specified price or range of prices, realized gains or losses on the derivative contracts utilized in the hedging activities generally offset at least a portion of any losses or gains, respectively, on the transactions being hedged at the time the transactions occur. However, due to mark-to-market accounting, during the term of the derivative contracts, significant unrealized, non-cash gains and losses may be recorded in the income statement. | ||||||||||||||||||||||||
Hedges of Operational Risks. The Company’s pricing of fabricated aluminum products is generally intended to lock in a conversion margin (representing the value added from the fabrication process(es)) and to pass metal price fluctuations to its customers. However, in certain instances the Company enters into firm-price arrangements with its customers for stipulated volumes to be delivered in the future. Because the Company generally purchases primary and secondary aluminum on a floating price basis, pounds that it has committed to sell to its customers under a firm-price arrangement create metal price risk for the Company. The Company uses third-party hedging instruments to limit exposure to metal price risks related to firm-price customer sales contracts. See Note 12 for additional information regarding the Company’s material derivative positions relating to hedges of operational risks, and their respective fair values. | ||||||||||||||||||||||||
A majority of the Company's derivative contracts relating to hedges of operational risks contain credit risk-related contingency features that could require the Company to provide additional collateral in the event the Company's credit rating were to be downgraded. To minimize the exposure to additional collateral requirements related to its liability hedge positions, the Company allocates hedging transactions among its counterparties, uses options as part of its hedging activities, or both. The aggregate fair value of the Company's derivative instruments that contain credit risk-related contingency features and were in a net liability position at December 31, 2013 was $1.6. | ||||||||||||||||||||||||
The Company regularly reviews the credit worthiness of its derivative counterparties and does not expect to incur significant loss from the failure of any counterparties to perform under any agreements. | ||||||||||||||||||||||||
During 2013, 2012 and 2011, total fabricated products shipments sold under firm-price arrangements were (in millions of pounds) 119.8, 178.8 and 157.0, respectively. At December 31, 2013, the Company had customer sales contracts for the delivery of fabricated aluminum products pursuant to firm-price arrangements for 2014 and 2015, totaling approximately (in millions of pounds) 62.0 and 2.3, respectively. | ||||||||||||||||||||||||
Hedges Relating to the Convertible Notes. As described in Note 3, the Company issued Convertible Notes in the aggregate principal amount of $175.0 in March 2010. The conversion feature of the Convertible Notes can only be settled in cash and is required to be bifurcated from the Convertible Notes and treated as a separate derivative instrument. In order to offset the cash flow risk associated with the Bifurcated Conversion Feature, the Company purchased Call Options, which are accounted for as derivative instruments. The Company expects that the realized gain or loss from the Call Options will substantially offset the realized loss or gain of the Bifurcated Conversion Feature upon maturity of the Convertible Notes. However, because valuation assumptions for the Bifurcated Conversion Feature and the Call Option are not identical, over time the Company expects to record net unrealized gains and losses due to mark-to-market adjustments to the fair values of the two derivatives. See Note 12 for additional information regarding the fair values of the Bifurcated Conversion Feature and the Call Options. | ||||||||||||||||||||||||
Realized and Unrealized Gains and Losses. Realized and unrealized (losses) gains associated with all derivative contracts consisted of the following, for each period presented: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Realized (losses) gains: | ||||||||||||||||||||||||
Aluminum | $ | (5.5 | ) | $ | (9.0 | ) | $ | 9.6 | ||||||||||||||||
Natural Gas | (1.8 | ) | (6.7 | ) | (5.2 | ) | ||||||||||||||||||
Electricity | 0.8 | (3.4 | ) | — | ||||||||||||||||||||
Total realized (losses) gains: | $ | (6.5 | ) | $ | (19.1 | ) | $ | 4.4 | ||||||||||||||||
Unrealized gains (losses): | ||||||||||||||||||||||||
Aluminum | $ | (3.1 | ) | $ | 10.1 | $ | (26.5 | ) | ||||||||||||||||
Natural Gas | 2.6 | 4.3 | (1.6 | ) | ||||||||||||||||||||
Electricity | 1.1 | 0.8 | (1.8 | ) | ||||||||||||||||||||
Foreign Currency | 0.1 | — | — | |||||||||||||||||||||
Call Options relating to the Convertible Notes | 24.2 | 9 | (2.1 | ) | ||||||||||||||||||||
Bifurcated Conversion Feature of the Convertible Notes | (21.0 | ) | (8.2 | ) | 6.1 | |||||||||||||||||||
Total unrealized gains (losses) | $ | 3.9 | $ | 16 | $ | (25.9 | ) | |||||||||||||||||
The following table summarizes the Company's material derivative positions at December 31, 2013: | ||||||||||||||||||||||||
Notional | ||||||||||||||||||||||||
Amount of | ||||||||||||||||||||||||
Contracts | ||||||||||||||||||||||||
Commodity | Maturity Period | (mmlbs) | ||||||||||||||||||||||
Aluminum — | ||||||||||||||||||||||||
Fixed priced purchase contracts | 1/14 through 12/15 | 64.4 | ||||||||||||||||||||||
Midwest premium swap contracts1 | 1/14 through 12/15 | 60.1 | ||||||||||||||||||||||
Notional | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
of Contracts | ||||||||||||||||||||||||
Energy | Maturity Period | (mmbtu) | ||||||||||||||||||||||
Natural gas —2 | ||||||||||||||||||||||||
Fixed priced purchase contracts | 1/14 through 12/16 | 6,240,000 | ||||||||||||||||||||||
Notional | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
of Contracts | ||||||||||||||||||||||||
Electricity | Maturity Period | (Mwh) | ||||||||||||||||||||||
Fixed priced purchase contracts | 1/14 through 12/15 | 394,200 | ||||||||||||||||||||||
Notional Amount of Contracts | ||||||||||||||||||||||||
Currency | Maturity Period | (as shown) | ||||||||||||||||||||||
Euro — | ||||||||||||||||||||||||
Fixed priced purchase contracts | 1/14 through 1/14 | € | 674,483 | |||||||||||||||||||||
GBP — | ||||||||||||||||||||||||
Fixed priced purchase contracts | 1/14 through 5/14 | £ | 44,106 | |||||||||||||||||||||
Notional | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
of Contracts | ||||||||||||||||||||||||
Hedges Relating to the Convertible Notes | Contract Period | (Common Shares) | ||||||||||||||||||||||
Bifurcated Conversion Feature3 | 3/10 through 3/15 | 3,638,303 | ||||||||||||||||||||||
Call Options3 | 3/10 through 3/15 | 3,638,303 | ||||||||||||||||||||||
_________________________ | ||||||||||||||||||||||||
1 | Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on the Company's purchases of primary aluminum. | |||||||||||||||||||||||
2 | As of December 31, 2013, the Company's exposure to fluctuations in natural gas prices had been substantially reduced for approximately 82%, 64% and 6% of the expected natural gas purchases for 2014, 2015 and 2016, respectively. | |||||||||||||||||||||||
3 | The Bifurcated Conversion Feature represents the cash conversion feature of the Convertible Notes. To hedge against the potential cash outflows associated with the Bifurcated Conversion Feature, the Company purchased cash-settled Call Options. The Call Options have an exercise price equal to the conversion price of the Convertible Notes, subject to anti-dilution adjustment provisions substantially similar to the Convertible Notes, which may cause the exercise price to decrease and the notional amount of shares relating thereto to increase. The Call Options will expire upon the maturity of the Convertible Notes. Although the fair value of the Call Options is derived from a notional number of shares of the Company's common stock, the Call Options may only be settled in cash. | |||||||||||||||||||||||
The Company enters into derivative contracts with counterparties, some of which are subject to enforceable master netting arrangements and some of which are not. The Company reflects the fair value of its derivative contracts on a gross basis on the Consolidated Balance Sheets (see Note 2). | ||||||||||||||||||||||||
The following tables present offsetting information regarding the Company's derivatives by type of counterparty as of December 31, 2013: | ||||||||||||||||||||||||
Derivative Assets and Collateral Held by Counterparty | ||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||
Counterparty (with Netting Agreements) | $ | 1 | $ | — | $ | 1 | $ | 0.8 | $ | — | $ | 0.2 | ||||||||||||
Counterparty (without Netting Agreements)1 | 80.4 | — | 80.4 | — | — | 80.4 | ||||||||||||||||||
Counterparty (with partial Netting Agreements) | 0.4 | — | 0.4 | 0.4 | — | — | ||||||||||||||||||
Total | $ | 81.8 | $ | — | $ | 81.8 | $ | 1.2 | $ | — | $ | 80.6 | ||||||||||||
Derivative Liabilities and Collateral Held by Counterparty | ||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||||||
Counterparty (with Netting Agreements) | $ | (1.6 | ) | $ | — | $ | (1.6 | ) | $ | (0.8 | ) | $ | — | $ | (0.8 | ) | ||||||||
Counterparty (without Netting Agreements)1 | (83.2 | ) | — | (83.2 | ) | — | — | (83.2 | ) | |||||||||||||||
Counterparty (with partial Netting Agreements) | (1.3 | ) | — | (1.3 | ) | (0.4 | ) | — | (0.9 | ) | ||||||||||||||
Total | $ | (86.1 | ) | $ | — | $ | (86.1 | ) | $ | (1.2 | ) | $ | — | $ | (84.9 | ) | ||||||||
_________________ | ||||||||||||||||||||||||
1 | Such amounts include the fair value of the Bifurcated Conversion Feature and Call Options at December 31, 2013 (see Note 12). | |||||||||||||||||||||||
The following tables present offsetting information regarding the Company’s derivatives by type of counterparty as of December 31, 2012: | ||||||||||||||||||||||||
Derivative Assets and Collateral Held by Counterparty | ||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||
Counterparty (with Netting Agreements) | $ | 2.3 | $ | — | $ | 2.3 | $ | 1 | $ | — | $ | 1.3 | ||||||||||||
Counterparty (without Netting Agreements)1 | 55.9 | — | 55.9 | — | — | 55.9 | ||||||||||||||||||
Counterparty (with partial Netting Agreements) | 0.3 | — | 0.3 | 0.2 | — | 0.1 | ||||||||||||||||||
Total | $ | 58.5 | $ | — | $ | 58.5 | $ | 1.2 | $ | — | $ | 57.3 | ||||||||||||
Derivative Liabilities and Collateral Held by Counterparty | ||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||||||
Counterparty (with Netting Agreements) | $ | (1.7 | ) | $ | — | $ | (1.7 | ) | $ | (1.0 | ) | $ | — | $ | (0.7 | ) | ||||||||
Counterparty (without Netting Agreements)1 | (63.8 | ) | — | (63.8 | ) | — | — | (63.8 | ) | |||||||||||||||
Counterparty (with partial Netting Agreements) | (1.2 | ) | — | (1.2 | ) | (0.2 | ) | — | (1.0 | ) | ||||||||||||||
Total | $ | (66.7 | ) | $ | — | $ | (66.7 | ) | $ | (1.2 | ) | $ | — | $ | (65.5 | ) | ||||||||
_________________ | ||||||||||||||||||||||||
1 | Such amounts include the fair value of the Bifurcated Conversion Feature and Call Options at December 31, 2012 (see Note 12). |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Fair Value Measurement | ' | |||||||||||||||
Fair Value Measurements | ||||||||||||||||
Overview | ||||||||||||||||
The Company applies the fair value hierarchy established by GAAP for the recognition and measurement of assets and liabilities. An asset or liability's fair value classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, and considers counterparty risk in its assessment of fair value. | ||||||||||||||||
The fair values of financial assets and liabilities are measured on a recurring basis. The Company has elected not to carry any financial assets and liabilities at fair value other than as required by GAAP. Financial assets and liabilities that the Company carries at fair value as required by GAAP include: (i) its derivative instruments; (ii) the plan assets of the VEBAs and the Company's Canadian pension plan measured annually at December 31; and (iii) available for sale securities, consisting of debt investment securities and investments related to the Company's deferred compensation plan (see Note 7). The Company records certain other financial assets and liability at carrying value (see table below for the fair value disclosure of those assets and liabilities). | ||||||||||||||||
The majority of the Company's non-financial assets and liabilities, which include goodwill, intangible assets, inventories and property, plant, and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or at least annually for goodwill), an evaluation of a non-financial asset or liability is required, potentially resulting in an adjustment to the carrying amount of such asset or liability. For the years ended December 31, 2013 and December 31, 2012, the Company concluded that none of its non-financial assets and liabilities subject to fair value assessments on a non-recurring basis required a material adjustment to the carrying amount of such assets and liabilities (see Note 5). | ||||||||||||||||
Fair Values of Financial Assets and Liabilities | ||||||||||||||||
Fair Values of Derivative Assets and Liabilities. The Company's derivative contracts are valued at fair value using significant observable and unobservable inputs. | ||||||||||||||||
Commodity, Energy, Electricity and Foreign Currency Hedges - The fair values of a majority of these derivative contracts are based upon trades in liquid markets. Valuation model inputs can generally be verified, and valuation techniques do not involve significant judgment. The fair values of such financial instruments are generally classified within Level 2 of the fair value hierarchy. The Company, however, has some derivative contracts that do not have observable market quotes. For these financial instruments, management uses significant other observable inputs (e.g., information concerning regional premiums for swaps). Where appropriate, valuations are adjusted for various factors, such as bid/offer spreads. The fair values of these financial instruments are classified as Level 3 in the fair value hierarchy. | ||||||||||||||||
Bifurcated Conversion Feature and Call Options - The fair value of the Bifurcated Conversion Feature is measured as the difference in the estimated fair value of the Convertible Notes and the estimated fair value of the Convertible Notes without the cash conversion feature. The Convertible Notes are valued based on the trading price of the Convertible Notes each period end (see “All Other Financial Assets and Liabilities” below). The fair value of the Convertible Notes without the cash conversion feature is the present value of the series of the remaining fixed income cash flows under the Convertible Notes, with a mandatory redemption in 2015. | ||||||||||||||||
The Company determines the fair value of the Call Options using a binomial lattice valuation model. The inputs to the model at December 31, 2013 were as follows: | ||||||||||||||||
Stock price at December 31, 2013 | $ | 70.24 | ||||||||||||||
Quarterly dividend yield (per share)1 | $ | 0.24 | ||||||||||||||
Risk-free interest rate2 | 0.19 | % | ||||||||||||||
Credit spread (basis points)3 | 171 | |||||||||||||||
Expected volatility rate4 | 17 | % | ||||||||||||||
____________ | ||||||||||||||||
1 | Quarterly dividends during 2013 were $0.30 per share, but the model assumes a discrete $0.24 per share quarterly dividend as was paid at the inception of the Call Options. Quarterly dividends in excess of $0.24 per share do not affect the Call Options' value due to anti-dilution adjustments. | |||||||||||||||
2 | The risk-free rate was based on the 1.25-year Constant Maturity Treasury rate on December 31, 2013. | |||||||||||||||
3 | The credit spread is based on the Company's long-term credit rating of BB- issued by Standard & Poor’s and a senior | |||||||||||||||
unsecured credit rating of Ba3 issued by Moody’s. | ||||||||||||||||
4 | The volatility rate was based on both observed volatility, which is based on the Company’s historical stock price, and | |||||||||||||||
implied volatility from the Company’s traded options. Such volatility was further adjusted to take into consideration | ||||||||||||||||
market participant risk tolerance. | ||||||||||||||||
VEBA and Canadian Pension Plan Assets. The VEBA assets are managed by various investment advisors selected by the trustees of each of the VEBAs. The VEBA assets are outside of the Company's control, and the Company does not have insight into the investment strategies. The fair value of the plan assets of the VEBAs assets is based on information made available to the Company by the VEBA administrators. | ||||||||||||||||
The assets of the Company's Canadian pension plan are managed by advisors selected by the Company, with the investment portfolio subject to periodic review and evaluation by the Company's investment committee. The investment of assets in the Canadian pension plan is based upon the objective of maintaining a diversified portfolio of investments in order to minimize concentration of credit and market risks (such as interest rate, currency, equity price and liquidity risks). The degree of risk and risk tolerance take into account the obligation structure of the plan, the anticipated demand for funds and the maturity profiles required from the investment portfolio in light of these demands. | ||||||||||||||||
The fair value of the plan assets of the VEBAs and the Company's Canadian pension plan is measured annually on December 31 and is reflected in the Company's Consolidated Balance Sheets at fair value. In determining the fair value of the plan assets at each annual period end, the Company utilizes primarily the results of valuations supplied by the investment advisors responsible for managing the assets of each plan. | ||||||||||||||||
Certain assets are valued based upon unadjusted quoted market prices in active markets that are accessible at the measurement date for identical, unrestricted assets (e.g., liquid securities listed on an exchange). Such assets are classified within Level 1 of the fair value hierarchy. | ||||||||||||||||
Valuation of other invested assets is based on significant observable inputs (e.g., net asset values of registered investment companies not listed on an exchange, valuations derived from actual market transactions, broker-dealer supplied valuations, or correlations between a given U.S. market and a non-U.S. security). Valuation model inputs can generally be verified and valuation techniques do not involve significant judgment. The fair values of such financial instruments are classified within Level 2 of the fair value hierarchy. | ||||||||||||||||
Available for sale securities. The Company holds debt investment securities. The fair value of the debt investment securities, which consists of commercial paper and corporate bonds, is determined based on valuation models that use observable market data. At December 31, 2013, the remaining maturity period with respect to short-term investments ranged from 91 days to approximately 15 months. In addition to debt investment securities, the Company also holds assets in various investment funds at certain registered investment companies in connection with its deferred compensation program (see Note 1 and Note 7). Such assets are accounted for as available for sale securities and are measured and recorded at fair value based on the net asset value of the investment funds on a recurring basis. The fair value input of the available for sale securities is considered either a Level 1 or Level 2 input depending on whether the debt security or investment fund is traded on a public exchange. The amortized cost for available for sale securities approximates their fair value. | ||||||||||||||||
All Other Financial Assets and Liabilities. The Company believes that the fair value of its cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their respective carrying values due to their short maturities and nominal credit risk. | ||||||||||||||||
The fair value of the Senior Notes and Convertible Notes is based on their trading price and is considered a Level 1 input in the fair value hierarchy. See Note 3 for the carrying value of the Convertible Notes and the Senior Notes. | ||||||||||||||||
The following tables present the Company's financial instruments, classified under the appropriate level of the fair value hierarchy, as of December 31, 2013 and December 31, 2012: | ||||||||||||||||
2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
FINANCIAL ASSETS: | ||||||||||||||||
Derivative Instruments | ||||||||||||||||
Aluminum - | ||||||||||||||||
Fixed priced purchase contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | ||||||||
Midwest premium swap contracts | — | — | 1.1 | 1.1 | ||||||||||||
Natural Gas - | ||||||||||||||||
Fixed priced purchase contracts | — | 0.5 | — | 0.5 | ||||||||||||
Electricity - | ||||||||||||||||
Fixed priced purchase contracts | — | 0.5 | — | 0.5 | ||||||||||||
Foreign Currency - | ||||||||||||||||
Euro | — | 0.1 | — | 0.1 | ||||||||||||
Hedges Relating to the Convertible Notes - | ||||||||||||||||
Call Options | — | 79.5 | — | 79.5 | ||||||||||||
VEBAs and Canadian Pension Plan | ||||||||||||||||
Fixed income investment funds in registered investment companies1 | 57 | 318 | — | 375 | ||||||||||||
Mortgage backed securities | — | 25.9 | — | 25.9 | ||||||||||||
Corporate debt securities2 | — | 78.2 | — | 78.2 | ||||||||||||
Equity investment funds in registered investment companies3 | — | 175.3 | — | 175.3 | ||||||||||||
United States Treasuries | — | 43.3 | — | 43.3 | ||||||||||||
Municipal debt securities | — | 1.6 | — | 1.6 | ||||||||||||
Cash and money market investments4 | 36.8 | — | — | 36.8 | ||||||||||||
Asset backed securities | — | 8.5 | — | 8.5 | ||||||||||||
Diversified investment funds in registered investment companies5 | 20.1 | 6.2 | — | 26.3 | ||||||||||||
All Other Financial Assets | ||||||||||||||||
Cash and cash equivalents6 | 57.7 | 111.8 | — | 169.5 | ||||||||||||
Short-term investments | — | 129.5 | — | 129.5 | ||||||||||||
Deferred compensation plan asset | — | 6.5 | — | 6.5 | ||||||||||||
Total | $ | 171.6 | $ | 985.5 | $ | 1.1 | $ | 1,158.20 | ||||||||
FINANCIAL LIABILITIES: | ||||||||||||||||
Derivative Instruments | ||||||||||||||||
Aluminum - | ||||||||||||||||
Fixed priced purchase contracts | $ | — | $ | (1.8 | ) | $ | — | $ | (1.8 | ) | ||||||
Natural Gas - | ||||||||||||||||
Fixed priced purchase contracts | — | (0.8 | ) | — | (0.8 | ) | ||||||||||
Electricity - | ||||||||||||||||
Fixed priced purchase contracts | — | (0.4 | ) | — | (0.4 | ) | ||||||||||
Hedges Relating to the Convertible Notes - | ||||||||||||||||
Bifurcated Conversion Feature | — | (83.1 | ) | — | (83.1 | ) | ||||||||||
All Other Financial Liabilities | ||||||||||||||||
Senior Notes | (255.4 | ) | — | — | (255.4 | ) | ||||||||||
Convertible Notes | (260.0 | ) | — | — | (260.0 | ) | ||||||||||
Total | $ | (515.4 | ) | $ | (86.1 | ) | $ | — | $ | (601.5 | ) | |||||
2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
FINANCIAL ASSETS: | ||||||||||||||||
Derivative Instruments | ||||||||||||||||
Aluminum - | ||||||||||||||||
Fixed priced purchase contracts | $ | — | $ | 2.6 | $ | — | $ | 2.6 | ||||||||
Midwest premium swap contracts | — | — | 0.4 | 0.4 | ||||||||||||
Natural Gas - | ||||||||||||||||
Fixed priced purchase contracts | — | 0.2 | — | 0.2 | ||||||||||||
Hedges Relating to the Convertible Notes - | ||||||||||||||||
Call Options | — | 55.3 | — | 55.3 | ||||||||||||
VEBAs and Canadian Pension Plan | ||||||||||||||||
Fixed income investment funds in registered investment companies1 | 192.3 | 235.4 | — | 427.7 | ||||||||||||
Mortgage backed securities | — | 31.5 | — | 31.5 | ||||||||||||
Corporate debt securities2 | — | 40.4 | — | 40.4 | ||||||||||||
Equity investment funds in registered investment companies3 | 114.1 | 58.8 | — | 172.9 | ||||||||||||
United States Treasuries | — | 13.6 | — | 13.6 | ||||||||||||
Municipal debt securities | — | 3.9 | — | 3.9 | ||||||||||||
Cash and money market investments4 | 16.4 | — | — | 16.4 | ||||||||||||
Asset backed securities | — | 3.2 | — | 3.2 | ||||||||||||
Diversified investment funds in registered investment companies5 | 6.4 | 5.7 | — | 12.1 | ||||||||||||
Equity securities | 8.7 | — | — | 8.7 | ||||||||||||
All Other Financial Assets | ||||||||||||||||
Cash and cash equivalents6 | 107.9 | 165.5 | — | 273.4 | ||||||||||||
Short-term investments | — | 85 | — | 85 | ||||||||||||
Deferred compensation plan asset | — | 5.6 | — | 5.6 | ||||||||||||
Total | $ | 445.8 | $ | 706.7 | $ | 0.4 | $ | 1,152.90 | ||||||||
FINANCIAL LIABILITIES: | ||||||||||||||||
Derivative Instruments | ||||||||||||||||
Aluminum - | ||||||||||||||||
Fixed priced purchase contracts | $ | — | $ | (0.5 | ) | $ | — | $ | (0.5 | ) | ||||||
Natural Gas - | ||||||||||||||||
Put option sales contracts | — | (0.5 | ) | — | (0.5 | ) | ||||||||||
Fixed priced purchase contracts | — | (2.6 | ) | — | (2.6 | ) | ||||||||||
Electricity - | ||||||||||||||||
Fixed priced purchase contracts | — | (1.0 | ) | — | (1.0 | ) | ||||||||||
Hedges Relating to the Convertible Notes - | ||||||||||||||||
Bifurcated Conversion Feature | — | (62.1 | ) | — | (62.1 | ) | ||||||||||
All Other Financial Liabilities | ||||||||||||||||
Senior Notes | (250.0 | ) | — | — | (250.0 | ) | ||||||||||
Convertible Notes | (240.1 | ) | — | — | (240.1 | ) | ||||||||||
Total | $ | (490.1 | ) | $ | (66.7 | ) | $ | — | $ | (556.8 | ) | |||||
_________________________ | ||||||||||||||||
1. | This category represents investments in various fixed income funds with multiple registered investment companies. Such funds invest in diversified portfolios, including (i) marketable fixed income securities such as (a) U.S. Treasury and other government and agency securities, (b) municipal bonds, (c) mortgage-backed securities, (d) asset-backed securities, (e) corporate bonds, notes and debentures in various sectors, (f) preferred and common stock, (g) investments in affiliated and other investment companies, (h) short-term investments and other net assets and (i) repurchase agreements and reverse repurchase agreements, (ii) other commingled investments, (iii) investment grade debt, (iv) fixed income instruments which may be represented by options, future contracts or swap agreements, and (v) cash and cash equivalents. The fair value of assets in this category is estimated using the net asset value per share of the investments. | |||||||||||||||
2. | This category represents investments in fixed income corporate securities in various sectors. Investments in the industrial, financial and utilities sectors in 2013 represented approximately 56%, 35% and 9% of the total portfolio in this category, respectively. Investments in the industrial, financial and utilities sectors in 2012 represented approximately 61%, 33% and 6% of the total portfolio in this category, respectively. The fair value of assets in this category is estimated using the net asset value per share of the investments. | |||||||||||||||
3. | This category represents investments in equity funds that invest in portfolios comprised of (i) equity and equity-related securities of U.S. and non-U.S. issuers across all market capitalization, (ii) common stock in investment trust funds, and (iii) other short-term investments. The fair value of assets in this category is determined by using quoted prices in active markets for investments considered Level 1 inputs and estimated using the net asset value per share of the investments for investments considered Level 2 inputs. | |||||||||||||||
4. | This category represents cash and investments in various money market funds. | |||||||||||||||
5. | The plan assets are invested in investment funds that hold a diversified portfolio of (i) U.S and international debt and equity securities, (ii) fixed income securities such as corporate bonds and government bonds, (iii) mortgage-related securities, and (iv) cash and cash equivalents. The fair value of assets in this category is estimated using the net asset value per share of the investments. | |||||||||||||||
6. | See Note 2 for components of cash and cash equivalents. | |||||||||||||||
Financial instruments classified as Level 3 in the fair value hierarchy represent derivative contracts in which management has used at least one significant unobservable input in the valuation model. The following table presents a reconciliation of activity for such derivative contracts on a net basis: | ||||||||||||||||
Level 3 | ||||||||||||||||
Balance at December 31, 2012 | $ | 0.4 | ||||||||||||||
Total realized/unrealized gains included in: | ||||||||||||||||
Cost of goods sold excluding depreciation and amortization and Unrealized (gains) losses on derivative instruments | (0.1 | ) | ||||||||||||||
Transactions involving Level 3 derivative contracts: | ||||||||||||||||
Purchases | 1 | |||||||||||||||
Sales | — | |||||||||||||||
Issuances | — | |||||||||||||||
Settlements | (0.2 | ) | ||||||||||||||
Transactions involving Level 3 derivatives - net | 0.8 | |||||||||||||||
Transfers in and (or) out of Level 3 valuation hierarchy | — | |||||||||||||||
Balance at December 31, 2013 | $ | 1.1 | ||||||||||||||
Total gains included in Unrealized (gains) losses on derivative instruments, attributable to the change in unrealized gains/losses relating to derivative contracts held at December 31, 2013: | $ | 1.1 | ||||||||||||||
Fair Values of Non-financial Assets and Liabilities | ||||||||||||||||
CAROs. The inputs in estimating the fair value of CAROs include: (i) the timing of when any such CARO cash flows may be incurred: (ii) incremental costs associated with special handling or treatment of CARO materials, and (iii) the credit-adjusted risk-free rate applicable at the time additional CARO cash flows are estimated, all of which are considered Level 3 inputs as they involve significant judgment of the Company. | ||||||||||||||||
During 2013, the Company re-assessed and revised its estimates relating to the timing and future costs of various asbestos removal projects at one facility. The following table summarizes the activity relating to the Company's CARO liabilities: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Beginning balance | $ | 4.1 | $ | 4 | $ | 3.8 | ||||||||||
Liabilities settled during the period | (0.2 | ) | (0.5 | ) | (0.1 | ) | ||||||||||
Accretion expense | 0.4 | 0.3 | 0.3 | |||||||||||||
Adjustment to accretion expense due to revisions to estimated cash flow and timing of expenditure1 | 0.1 | 0.3 | — | |||||||||||||
Ending balance | $ | 4.4 | $ | 4.1 | $ | 4 | ||||||||||
__________________________________________ | ||||||||||||||||
1 | The adjustment in 2013 did not have a material impact on the basic and diluted earnings per share for 2013. The adjustment in 2012 decreased both basic and diluted earnings per share for 2012 by approximately $0.02 per share. | |||||||||||||||
The estimated fair value of CARO liabilities at December 31, 2013 and December 31, 2012 are based upon the application of a weighted-average credit-adjusted risk-free rate of 8.6% and 8.7%, respectively. CAROs are included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2). |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share | ' | ||||||||||||
Earnings Per Share | |||||||||||||
Basic and diluted earnings per share for 2013, 2012 and 2011 were calculated as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 104.8 | $ | 85.8 | $ | 25.1 | |||||||
Denominator - Weighted-average common shares outstanding (in thousands): | |||||||||||||
Basic1 | 18,827 | 19,115 | 18,979 | ||||||||||
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares | 178 | 163 | — | ||||||||||
Add: dilutive effect of warrants | 241 | — | — | ||||||||||
Diluted2 | 19,246 | 19,278 | 18,979 | ||||||||||
Earnings per common share, Basic: | |||||||||||||
Net income per share | $ | 5.56 | $ | 4.49 | $ | 1.32 | |||||||
Earnings per common share, Diluted: | |||||||||||||
Net income per share2 | $ | 5.44 | $ | 4.45 | $ | 1.32 | |||||||
_____________ | |||||||||||||
1 | The basic weighted-average number of common shares outstanding during the period excludes unvested share-based incentive awards. | ||||||||||||
2 | The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2013 and 2012 were calculated using the treasury method. The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2011 were calculated using the two-class method (see Note 1). | ||||||||||||
Options to purchase 20,791 common shares at an average exercise price of $80.01 per share were outstanding at both December 31, 2013 and December 31, 2012. The potential dilutive effect of options outstanding was zero for 2013, 2012 and 2011. Warrants relating to approximately 3.6 million common shares were outstanding at both December 31, 2013 (at an average exercise price of approximately $61.08 per share) and December 31, 2012 (at an average exercise price of approximately $61.31 per share). | |||||||||||||
During 2013, 2012 and 2011, the Company paid a total of approximately $23.0 ($1.20 per common share), $19.6 ($1.00 per common share), and $18.9 ($0.96 per common share), respectively, in cash dividends to stockholders, including the holders of restricted stock, and dividend equivalents to the holders of certain restricted stock units and to the holders of performance shares with respect to approximately one-half of the performance shares. | |||||||||||||
Upon the termination in the third quarter of 2013 of the third-party disbursing agent agreement entered into in connection with the Company’s emergence from chapter 11 proceedings in 2006, $0.6 of cash dividends paid in respect of common shares of the Company held in trust by the third-party disbursing agent for distribution under the Company’s chapter 11 plan, as well as 9,001 such common shares, were returned to the Company at the direction of the bankruptcy court. The fair market value of the shares was included in Other income, net (see Note 16). | |||||||||||||
From time to time, the Company repurchases shares pursuant to a stock repurchase program authorized by the Company’s Board of Directors. During 2013, the Company’s Board of Directors twice authorized additional funds under this program, with $75.0 million authorized in April 2013 and another $75.0 million authorized in December 2013. Repurchase transactions will occur at such times and prices as management deems appropriate and will be funded with the Company’s excess liquidity after giving consideration to internal and external growth opportunities and future cash flows. Repurchases may be in open-market transactions or in privately negotiated transactions, and the program may be modified or terminated by the Company’s Board of Directors at any time. | |||||||||||||
In 2013, the Company repurchased 1,232,077 shares of common stock at a weighted-average price of $64.35 per share pursuant to this authorization. The total cost of $79.3 was recorded as Treasury Stock. The Company purchased no shares under this program during 2012 and 2011. At December 31, 2013 and December 31, 2012, $117.6 and $46.9, respectively, were available to repurchase the Company’s common shares pursuant to the stock repurchase program. |
Segment_and_Geographical_Area_
Segment and Geographical Area Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Segment and Geographical Area Information | ' | ||||||||||||
Segment and Geographical Area Information | |||||||||||||
The Company's primary line of business is the production of semi-fabricated specialty aluminum products, such as aluminum sheet and plate and extruded and drawn products, primarily used in aerospace/high strength, general engineering, automotive, and other industrial end market applications. The Company operates 11 focused production facilities in the United States and one in Canada. Consistent with the manner in which the Company's chief operating decision maker reviews and evaluates the Company's business, the Fabricated Products business is treated as a single operating segment. | |||||||||||||
In addition to the Fabricated Products segment, the Company has two business units, Corporate and Other and Secondary Aluminum. The Corporate and Other business unit provides general and administrative support for the Company's operations. The Secondary Aluminum business unit activities related to the Company’s purchase and resale to a third party of secondary aluminum produced by Anglesey until Anglesey ceased its remelt and casting operations at its facility in Holyhead, Wales in the quarter ended June 30, 2013. The Company owned a 49% non-controlling interest in Anglesey until selling its ownership interest in the quarter ended December 31, 2013. | |||||||||||||
For purposes of segment reporting under GAAP, the Company treats the Fabricated Products segment as a reportable segment and combines the two other business units, Corporate and Other and Secondary Aluminum, into one category, which is referred to as All Other. All Other is not considered a reportable segment. | |||||||||||||
The accounting policies of the Fabricated Products segment are the same as those described in Note 1. Segment results are evaluated internally by management before any allocation of corporate overhead and without any charge for income taxes, interest expense, or Other operating charges, net. | |||||||||||||
The following tables provide financial information by reporting segment for each period or as of each period end, as applicable: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net Sales: | |||||||||||||
Fabricated Products | $ | 1,297.50 | $ | 1,360.10 | $ | 1,301.30 | |||||||
Operating Income (Loss): | |||||||||||||
Fabricated Products 1,2 | $ | 188.6 | $ | 190.8 | $ | 83.6 | |||||||
All Other3 | (15.3 | ) | (24.9 | ) | (28.6 | ) | |||||||
Total operating income | $ | 173.3 | $ | 165.9 | $ | 55 | |||||||
Interest expense | (35.7 | ) | (29.1 | ) | (18.0 | ) | |||||||
Other income, net | 5.6 | 2.8 | 4.3 | ||||||||||
Income before income taxes | $ | 143.2 | $ | 139.6 | $ | 41.3 | |||||||
Depreciation and Amortization: | |||||||||||||
Fabricated Products | $ | 27.6 | $ | 26 | $ | 24.8 | |||||||
All Other | 0.5 | 0.5 | 0.4 | ||||||||||
Total depreciation and amortization | $ | 28.1 | $ | 26.5 | $ | 25.2 | |||||||
Capital expenditures: | |||||||||||||
Fabricated Products | $ | 69.8 | $ | 43.8 | $ | 32.1 | |||||||
All Other | 0.6 | 0.3 | 0.4 | ||||||||||
Total capital expenditures | $ | 70.4 | $ | 44.1 | $ | 32.5 | |||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Assets: | |||||||||||||
Fabricated Products | $ | 852.5 | $ | 771.2 | $ | 637 | |||||||
All Other4 | 918.4 | 981.3 | 683.6 | ||||||||||
Total assets | $ | 1,770.90 | $ | 1,752.50 | $ | 1,320.60 | |||||||
__________________ | |||||||||||||
1 | Operating results in the Fabricated Products segment for 2013, 2012 and 2011 included non-cash LIFO inventory benefits of $24.1, $4.9 and $7.1, respectively. Also included in the Fabricated Products segment operating results for 2013, 2012 and 2011 were $4.0, $1.1 and $1.7, respectively, of environmental expense. Fabricated Products segment operating results for 2012 also included $4.4 of asset impairment charge relating to certain property, plant and equipment. | ||||||||||||
2 | Fabricated Products segment results for 2013, 2012 and 2011 include non-cash mark-to-market gains (losses) on primary aluminum, natural gas, electricity and foreign currency hedging activities totaling $0.7, $15.2 and $(29.9), respectively. For further discussion regarding mark-to-market matters, see Note 11. | ||||||||||||
3 | Operating results in All Other represent operating expenses in the Corporate and Other business unit. Operating results of All Other include VEBA net periodic pension benefit income of $22.5, $11.9 and $6.0 for 2013, 2012 and 2011, respectively. | ||||||||||||
4 | Assets in All Other represent primarily all of the Company’s cash and cash equivalents, short-term investments, financial derivative assets, net assets in respect of VEBA(s) and net deferred income tax assets. | ||||||||||||
Net sales by product categories, which are based on end market applications, for the Fabricated Products segment are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net Sales: | |||||||||||||
Aero/HS Products | $ | 677 | $ | 695.1 | $ | 596.3 | |||||||
GE Products | 411 | 441.4 | 447 | ||||||||||
Automotive Extrusions | 129.5 | 125.5 | 126.9 | ||||||||||
Other Products | 80 | 98.1 | 131.1 | ||||||||||
Total Net Sales | $ | 1,297.50 | $ | 1,360.10 | $ | 1,301.30 | |||||||
Geographic information for net sales, based on country of origin, income taxes paid, and long-lived assets are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales to unaffiliated customers: | |||||||||||||
Fabricated Products — | |||||||||||||
United States | $ | 1,204.70 | $ | 1,256.50 | $ | 1,195.10 | |||||||
Canada | 92.8 | 103.6 | 106.2 | ||||||||||
Total net sales | $ | 1,297.50 | $ | 1,360.10 | $ | 1,301.30 | |||||||
Income taxes paid: | |||||||||||||
Fabricated Products — | |||||||||||||
United States | $ | 1.2 | $ | 0.5 | $ | 1.7 | |||||||
Canada | 0.9 | 1.3 | 1.8 | ||||||||||
Total income taxes paid | $ | 2.1 | $ | 1.8 | $ | 3.5 | |||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Long-lived assets:1 | |||||||||||||
Fabricated Products — | |||||||||||||
United States | $ | 409.5 | $ | 367.5 | $ | 351.4 | |||||||
Canada | 15.3 | 12.5 | 11.9 | ||||||||||
Total Fabricated Products long-lived assets | 424.8 | 380 | 363.3 | ||||||||||
All Other — | |||||||||||||
United States | 4.5 | 4.3 | 4.5 | ||||||||||
Total All Other long-lived assets | 4.5 | 4.3 | 4.5 | ||||||||||
Total long-lived assets | $ | 429.3 | $ | 384.3 | $ | 367.8 | |||||||
__________________ | |||||||||||||
1 Long-lived assets represent Property, plant and equipment, net. | |||||||||||||
The aggregate foreign currency transaction gains (losses) included in determining net income were immaterial for 2013, 2012, and 2011. | |||||||||||||
The Company depends on a core group of significant customers and suppliers of primary aluminum. The loss of the Company’s largest customer or supplier would have a material adverse effect on the Company taken as a whole. However, in the Company’s opinion, the relationship between the Company and its customers and suppliers is good, and the risk of loss of the customer or supplier is remote. Information for sales to the Company's largest Fabricated Products customer, export sales, and primary aluminum supply from the Company's major suppliers are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Percentage of Total Revenue: | |||||||||||||
Sales to largest Fabricated Products customer | 23 | % | 22 | % | 21 | % | |||||||
Export sales | 17 | % | 18 | % | 14 | % | |||||||
Percentage of Total Annual Primary Aluminum Supply | |||||||||||||
Supply from the Company's top five major suppliers | 86 | % | 78 | % | 83 | % | |||||||
Supply from the Company's largest supplier | 25 | % | 29 | % | 32 | % | |||||||
Supply from the Company's second and third largest suppliers | 35 | % | 31 | % | 34 | % |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||
Supplemental Cash Flow Information | ' | ||||||||||||
Supplemental Cash Flow Information | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||
Interest paid | $ | 28.1 | $ | 19.4 | $ | 10.4 | |||||||
Income taxes paid | $ | 2.1 | $ | 1.8 | $ | 3.5 | |||||||
Supplemental disclosure of non-cash transactions: | |||||||||||||
Stock repurchases not yet settled (accrued in accounts payable) | $ | 1 | $ | — | $ | — | |||||||
Non-cash capital expenditures | $ | 4.4 | $ | 3.4 | $ | 1.8 | |||||||
Capital leases acquired | $ | 0.2 | $ | 0.1 | $ | 0.3 | |||||||
Other_Income_Net
Other Income, Net | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other Income, Net | ' | |||||||||||
Other Income, Net | ||||||||||||
Other income, net consisted of the following, for each period presented: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Interest income | $ | 0.4 | $ | 0.4 | $ | 0.2 | ||||||
Unrealized gains on financial derivatives1 | 3.2 | 0.8 | 4 | |||||||||
Realized gains on investments | 1.4 | 0.5 | 0.1 | |||||||||
Distribution from bankruptcy trust2 | 0.6 | — | — | |||||||||
Insurance settlement | — | 0.4 | — | |||||||||
All other, net | — | 0.7 | — | |||||||||
Other income, net | $ | 5.6 | $ | 2.8 | $ | 4.3 | ||||||
____________ | ||||||||||||
1 | See “Derivative Financial Instruments” in Note 1 for a discussion of accounting policy for such instruments. |
Other_Comprehensive_Income_Los
Other Comprehensive Income (Loss) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||||
Other Comprehensive Income (Loss) | ' | |||||||||||
Other Comprehensive Income (Loss) | ||||||||||||
The following table presents the tax effect allocated to each component of other comprehensive income (loss) for each period presented: | ||||||||||||
Before-Tax | Income Tax | Net-of-Tax | ||||||||||
Amount | (Expense) Benefit | Amount | ||||||||||
2013 | ||||||||||||
Defined benefit pension plan and VEBAs: | ||||||||||||
Net actuarial gain arising during the period | $ | 2.2 | $ | (0.7 | ) | $ | 1.5 | |||||
Reclassification adjustments: | ||||||||||||
Less: amortization of net actuarial loss | 1.5 | (0.5 | ) | 1 | ||||||||
Less: amortization of prior service cost | 4.2 | (1.6 | ) | 2.6 | ||||||||
Other comprehensive income relating to defined benefit pension plan and VEBAs | 7.9 | (2.8 | ) | 5.1 | ||||||||
Available for Sale Securities: | ||||||||||||
Unrealized gain on available for sale securities | 1 | (0.3 | ) | 0.7 | ||||||||
Reclassification adjustments: | ||||||||||||
Less: reclassification of unrealized gain upon sale of available for sale securities | (1.0 | ) | 0.3 | (0.7 | ) | |||||||
Other comprehensive income (loss) relating to available for sale securities | — | — | — | |||||||||
Foreign currency translation adjustment | 0.2 | — | 0.2 | |||||||||
Other comprehensive income | $ | 8.1 | $ | (2.8 | ) | $ | 5.3 | |||||
2012 | ||||||||||||
Defined benefit pension plan and VEBAs: | ||||||||||||
Net actuarial gain arising during the period | $ | 87.8 | $ | (33.5 | ) | $ | 54.3 | |||||
Reclassification adjustments: | ||||||||||||
Less: amortization of net actuarial loss | 3.1 | (1.1 | ) | 2 | ||||||||
Less: amortization of prior service cost | 4.2 | (1.7 | ) | 2.5 | ||||||||
Other comprehensive income relating to defined benefit pension plan and VEBAs | 95.1 | (36.3 | ) | 58.8 | ||||||||
Available for Sale Securities: | ||||||||||||
Unrealized gain on available for sale securities | 0.6 | (0.2 | ) | 0.4 | ||||||||
Foreign currency translation adjustment | (0.2 | ) | — | (0.2 | ) | |||||||
Other comprehensive income | $ | 95.5 | $ | (36.5 | ) | $ | 59 | |||||
2011 | ||||||||||||
Defined benefit pension plan and VEBAs: | ||||||||||||
Net actuarial loss arising during the period | $ | (110.6 | ) | $ | 42.2 | $ | (68.4 | ) | ||||
Reclassification adjustments | ||||||||||||
Less: amortization of net actuarial loss | 0.6 | (0.2 | ) | 0.4 | ||||||||
Less: amortization of prior service cost | 4.2 | (1.6 | ) | 2.6 | ||||||||
Other comprehensive loss relating to defined benefit pension plan and VEBAs | (105.8 | ) | 40.4 | (65.4 | ) | |||||||
Available for Sale Securities: | ||||||||||||
Unrealized loss on available for sale securities | (0.1 | ) | — | (0.1 | ) | |||||||
Foreign currency translation adjustment | 0.2 | — | 0.2 | |||||||||
Other comprehensive loss | $ | (105.7 | ) | $ | 40.4 | $ | (65.3 | ) | ||||
Guarantor_and_NonGuarantor_Fin
Guarantor and Non-Guarantor Financial Statements (Notes) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Guarantor and Non-Guarantor Financial Statement [Abstract] | ' | ||||||||||||||||||||
Guarantor and Non-Guarantor Financial Statements | ' | ||||||||||||||||||||
Condensed Guarantor and Non-Guarantor Financial Information | |||||||||||||||||||||
The Company issued $225.0 aggregate principal amount of its Senior Notes pursuant to an indenture dated May 23, 2012 | |||||||||||||||||||||
(the “Indenture”), among Kaiser Aluminum Corporation (the "Parent", the subsidiary guarantors party thereto (the “Guarantor | |||||||||||||||||||||
Subsidiaries”) and Wells Fargo Bank, National Association, as trustee (the “Trustee”). The Guarantor Subsidiaries currently | |||||||||||||||||||||
include Kaiser Aluminum Investments Company, Kaiser Aluminum Fabricated Products, LLC, Kaiser Aluminum Mill Products | |||||||||||||||||||||
Inc., Kaiser Aluminum Washington, LLC and Kaiser Aluminum Alexco, LLC, all of which are 100% owned by the Parent. The guarantees are full and unconditional and joint and several but have the following customary releases: i) the Guarantor Subsidiary is sold or sells all of its assets; ii) the Guarantor Subsidiary is declared an unrestricted subsidiary under the Indenture; iii) the Guarantor Subsidiary’s guarantee of certain other indebtedness is terminated or released; or iv) the Company exercises legal defeasance or covenant defeasance or if the Company’s obligations under the Indenture are discharged. | |||||||||||||||||||||
Pursuant to the requirements of Section 210.3-10(f) of Regulation S-X, the following condensed consolidating financial information as of December 31, 2013 and December 31, 2012, and for the years ended December 31, 2013, December 31, 2012 and December 31, 2011 present (i) the financial position, results of operation and cash flows for each of (a) the Parent, (b) the Guarantor Subsidiaries on a combined basis, and (c) the Non-Guarantor Subsidiaries (as defined below) on a combined basis, (ii) the adjustments necessary to eliminate investments in subsidiaries and intercompany balances and transactions among the Parent, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries, and (iii) the resulting totals, reflecting information for the Company on a consolidated basis, as reported. In the following tables, "Non- Guarantor Subsidiaries" refers to Kaiser Aluminum Canada Limited, Trochus Insurance Company, DCO Management, LLC, Kaiser Aluminum France, S.A.S. and Kaiser Aluminum Beijing Trading Company; and "Consolidating Adjustments" represent the adjustments necessary to eliminate the investments in the Company's subsidiaries and other intercompany sales and cost of sales transactions. The condensed consolidating financial information should be read in conjunction with the consolidated financial statements herein. | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 5 | $ | 157.7 | $ | 6.8 | $ | — | $ | 169.5 | |||||||||||
Short-term investments | — | 129.5 | — | — | 129.5 | ||||||||||||||||
Receivables: | |||||||||||||||||||||
Trade, less allowance for doubtful receivables | — | 117.7 | 2.1 | — | 119.8 | ||||||||||||||||
Intercompany receivables | — | 0.1 | 0.2 | (0.3 | ) | — | |||||||||||||||
Other | — | 5.3 | 8.1 | — | 13.4 | ||||||||||||||||
Inventories | — | 208.6 | 6.4 | (0.6 | ) | 214.4 | |||||||||||||||
Prepaid expenses and other current assets | 0.1 | 43.7 | 0.4 | — | 44.2 | ||||||||||||||||
Total current assets | 5.1 | 662.6 | 24 | (0.9 | ) | 690.8 | |||||||||||||||
Investments in and advances to subsidiaries | 1,437.90 | 26.5 | — | (1,464.4 | ) | — | |||||||||||||||
Property, plant, and equipment — net | — | 414 | 15.3 | — | 429.3 | ||||||||||||||||
Long-term intercompany receivables | 31.3 | 1.6 | 9.5 | (42.4 | ) | — | |||||||||||||||
Net asset in respect of VEBA | — | 406 | — | — | 406 | ||||||||||||||||
Deferred tax assets — net | — | 60.2 | — | 8.9 | 69.1 | ||||||||||||||||
Intangible assets — net | — | 33.7 | — | — | 33.7 | ||||||||||||||||
Goodwill | — | 37.2 | — | — | 37.2 | ||||||||||||||||
Other assets | 86.2 | 18.5 | 0.1 | — | 104.8 | ||||||||||||||||
Total | $ | 1,560.50 | $ | 1,660.30 | $ | 48.9 | $ | (1,498.8 | ) | $ | 1,770.90 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 1.1 | $ | 56.3 | $ | 5.5 | $ | — | $ | 62.9 | |||||||||||
Intercompany payable | — | 13.9 | 0.1 | (14.0 | ) | — | |||||||||||||||
Accrued salaries, wages, and related expenses | — | 39.3 | 3.4 | — | 42.7 | ||||||||||||||||
Other accrued liabilities | 3.5 | 39.9 | 1.4 | — | 44.8 | ||||||||||||||||
Short-term capital lease | — | 0.2 | — | — | 0.2 | ||||||||||||||||
Total current liabilities | 4.6 | 149.6 | 10.4 | (14.0 | ) | 150.6 | |||||||||||||||
Deferred tax liability | — | — | 1.2 | — | 1.2 | ||||||||||||||||
Long-term intercompany payable | — | 40.7 | 1.7 | (42.4 | ) | — | |||||||||||||||
Long-term liabilities | 83.2 | 52 | 11.2 | — | 146.4 | ||||||||||||||||
Long-term debt | 388.5 | — | — | — | 388.5 | ||||||||||||||||
Total liabilities | 476.3 | 242.3 | 24.5 | (56.4 | ) | 686.7 | |||||||||||||||
Total stockholders’ equity | 1,084.20 | 1,418.00 | 24.4 | (1,442.4 | ) | 1,084.20 | |||||||||||||||
Total | $ | 1,560.50 | $ | 1,660.30 | $ | 48.9 | $ | (1,498.8 | ) | $ | 1,770.90 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 5 | $ | 266 | $ | 2.4 | $ | — | $ | 273.4 | |||||||||||
Short-term investments | — | 85 | — | — | 85 | ||||||||||||||||
Receivables: | |||||||||||||||||||||
Trade, less allowance for doubtful receivables | — | 121.5 | 2.3 | — | 123.8 | ||||||||||||||||
Intercompany receivables | — | (10.3 | ) | 0.4 | 9.9 | — | |||||||||||||||
Other | — | 1.3 | 2.1 | — | 3.4 | ||||||||||||||||
Inventories | — | 178.7 | 7.3 | — | 186 | ||||||||||||||||
Prepaid expenses and other current assets | — | 68.1 | 2 | — | 70.1 | ||||||||||||||||
Total current assets | 5 | 710.3 | 16.5 | 9.9 | 741.7 | ||||||||||||||||
Investments in and advances to subsidiaries | 1,284.10 | 7.4 | — | (1,291.5 | ) | — | |||||||||||||||
Property, plant, and equipment — net | — | 371.8 | 12.5 | — | 384.3 | ||||||||||||||||
Long-term intercompany receivables | 163.7 | 0.4 | 6.4 | (170.5 | ) | — | |||||||||||||||
Net asset in respect of VEBA | — | 365.9 | — | — | 365.9 | ||||||||||||||||
Deferred tax assets — net | — | 93.4 | (0.8 | ) | 9.4 | 102 | |||||||||||||||
Intangible assets — net | — | 35.4 | — | — | 35.4 | ||||||||||||||||
Goodwill | — | 37.2 | — | — | 37.2 | ||||||||||||||||
Other assets | 64 | 19.2 | 3 | (0.2 | ) | 86 | |||||||||||||||
Total | $ | 1,516.80 | $ | 1,641.00 | $ | 37.6 | $ | (1,442.9 | ) | $ | 1,752.50 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 0.1 | $ | 56.5 | $ | 5.9 | $ | — | $ | 62.5 | |||||||||||
Intercompany payable | — | 0.3 | 0.2 | (0.5 | ) | — | |||||||||||||||
Accrued salaries, wages, and related expenses | — | 36.7 | 2.6 | — | 39.3 | ||||||||||||||||
Other accrued liabilities | 3.5 | 47.8 | 0.5 | — | 51.8 | ||||||||||||||||
Payable to affiliate | — | 7.9 | — | — | 7.9 | ||||||||||||||||
Short-term capital lease | — | 0.1 | — | — | 0.1 | ||||||||||||||||
Total current liabilities | 3.6 | 149.3 | 9.2 | (0.5 | ) | 161.6 | |||||||||||||||
Net liability in respect of VEBA | — | 5.3 | — | — | 5.3 | ||||||||||||||||
Long-term intercompany payable | — | 170 | 0.5 | (170.5 | ) | — | |||||||||||||||
Long-term liabilities | 62.1 | 49.6 | 22.8 | — | 134.5 | ||||||||||||||||
Long-term debt | 380.3 | — | — | — | 380.3 | ||||||||||||||||
Total liabilities | 446 | 374.2 | 32.5 | (171.0 | ) | 681.7 | |||||||||||||||
Total stockholders’ equity | 1,070.80 | 1,266.80 | 5.1 | (1,271.9 | ) | 1,070.80 | |||||||||||||||
Total | $ | 1,516.80 | $ | 1,641.00 | $ | 37.6 | $ | (1,442.9 | ) | $ | 1,752.50 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
Net sales | $ | — | $ | 1,275.20 | $ | 118 | $ | (95.7 | ) | $ | 1,297.50 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of products sold: | |||||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | — | 1,026.00 | 105.7 | (92.8 | ) | 1,038.90 | |||||||||||||||
Unrealized gains on derivative instruments | — | (0.7 | ) | — | — | (0.7 | ) | ||||||||||||||
Depreciation and amortization | — | 27 | 1.1 | — | 28.1 | ||||||||||||||||
Selling, administrative, research and development, and general | 3.8 | 47.6 | 8.9 | (2.4 | ) | 57.9 | |||||||||||||||
Total costs and expenses | 3.8 | 1,099.90 | 115.7 | (95.2 | ) | 1,124.20 | |||||||||||||||
Operating (loss) income | (3.8 | ) | 175.3 | 2.3 | (0.5 | ) | 173.3 | ||||||||||||||
Other (expense) income: | |||||||||||||||||||||
Interest expense | (36.6 | ) | 0.5 | — | 0.4 | (35.7 | ) | ||||||||||||||
Other income (expense), net | 3.9 | 2 | — | (0.3 | ) | 5.6 | |||||||||||||||
(Loss) income before income taxes | (36.5 | ) | 177.8 | 2.3 | (0.4 | ) | 143.2 | ||||||||||||||
Income tax (provision) benefit | — | (68.1 | ) | 15.7 | 14 | (38.4 | ) | ||||||||||||||
Earnings in equity of subsidiaries | 141.3 | 17.6 | — | (158.9 | ) | — | |||||||||||||||
Net income | $ | 104.8 | $ | 127.3 | $ | 18 | $ | (145.3 | ) | $ | 104.8 | ||||||||||
Comprehensive income | $ | 110.1 | $ | 131.6 | $ | 19 | $ | (150.6 | ) | $ | 110.1 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
Net sales | $ | — | $ | 1,326.00 | $ | 124 | $ | (89.9 | ) | $ | 1,360.10 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of products sold: | |||||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | — | 1,090.00 | 110.2 | (84.0 | ) | 1,116.20 | |||||||||||||||
Unrealized loss on derivative instruments | — | (15.2 | ) | — | — | (15.2 | ) | ||||||||||||||
Depreciation and amortization | — | 25.5 | 1 | — | 26.5 | ||||||||||||||||
Selling, administrative, research and development, and general | 2 | 57.7 | 8.2 | (5.7 | ) | 62.2 | |||||||||||||||
Other operating charges, net | — | 4.5 | — | — | 4.5 | ||||||||||||||||
Total costs and expenses | 2 | 1,162.50 | 119.4 | (89.7 | ) | 1,194.20 | |||||||||||||||
Operating (loss) income | (2.0 | ) | 163.5 | 4.6 | (0.2 | ) | 165.9 | ||||||||||||||
Other (expense) income: | |||||||||||||||||||||
Interest expense | (28.2 | ) | (1.0 | ) | — | 0.1 | (29.1 | ) | |||||||||||||
Other income, net | 0.8 | 1.5 | 0.6 | (0.1 | ) | 2.8 | |||||||||||||||
(Loss) income before income taxes | (29.4 | ) | 164 | 5.2 | (0.2 | ) | 139.6 | ||||||||||||||
Income tax provision | — | (62.6 | ) | (2.3 | ) | 11.1 | (53.8 | ) | |||||||||||||
Earnings in equity of subsidiaries | 115.2 | 2.6 | — | (117.8 | ) | — | |||||||||||||||
Net income | $ | 85.8 | $ | 104 | $ | 2.9 | $ | (106.9 | ) | $ | 85.8 | ||||||||||
Comprehensive income | $ | 144.8 | $ | 164 | $ | 1.9 | $ | (165.9 | ) | $ | 144.8 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | |||||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
Net sales | $ | — | $ | 1,264.50 | $ | 133.6 | $ | (96.8 | ) | $ | 1,301.30 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of products sold: | |||||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | — | 1,098.70 | 125.4 | (95.1 | ) | 1,129.00 | |||||||||||||||
Unrealized loss on derivative instruments | — | 29.9 | — | — | 29.9 | ||||||||||||||||
Restructuring benefits | — | (0.3 | ) | — | — | (0.3 | ) | ||||||||||||||
Depreciation and amortization | — | 24.3 | 0.9 | — | 25.2 | ||||||||||||||||
Selling, administrative, research and development, and general | 1.8 | 56.3 | 6.2 | (1.6 | ) | 62.7 | |||||||||||||||
Other operating charges (benefits), net | — | 0.1 | (0.3 | ) | — | (0.2 | ) | ||||||||||||||
Total costs and expenses | 1.8 | 1,209.00 | 132.2 | (96.7 | ) | 1,246.30 | |||||||||||||||
Operating (loss) income | (1.8 | ) | 55.5 | 1.4 | (0.1 | ) | 55 | ||||||||||||||
Other (expense) income: | |||||||||||||||||||||
Interest expense | (16.2 | ) | (1.8 | ) | — | — | (18.0 | ) | |||||||||||||
Other income (expense), net | 4 | 0.4 | (0.1 | ) | — | 4.3 | |||||||||||||||
(Loss) income before income taxes | (14.0 | ) | 54.1 | 1.3 | (0.1 | ) | 41.3 | ||||||||||||||
Income tax provision | — | (21.8 | ) | (0.6 | ) | 6.2 | (16.2 | ) | |||||||||||||
Earnings in equity of subsidiaries | 39.1 | 0.8 | — | (39.9 | ) | — | |||||||||||||||
Net income | $ | 25.1 | $ | 33.1 | $ | 0.7 | $ | (33.8 | ) | $ | 25.1 | ||||||||||
Comprehensive (loss) income | $ | (40.2 | ) | $ | (32.2 | ) | $ | 0.7 | $ | 31.5 | $ | (40.2 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (29.2 | ) | $ | 131.7 | $ | 9.2 | $ | — | $ | 111.7 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | — | (66.5 | ) | (3.9 | ) | — | (70.4 | ) | |||||||||||||
Purchase of available for sale securities | — | (227.8 | ) | — | (227.8 | ) | |||||||||||||||
Proceeds from disposition of available for sale securities | — | 183.1 | — | — | 183.1 | ||||||||||||||||
Change in restricted cash | — | 0.7 | 1 | — | 1.7 | ||||||||||||||||
Net cash used in investing activities | — | (110.5 | ) | (2.9 | ) | — | (113.4 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Repayment of capital lease | — | (0.1 | ) | — | — | (0.1 | ) | ||||||||||||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | — | 1.1 | — | — | 1.1 | ||||||||||||||||
Repurchase of common stock to cover employees' tax withholdings upon vesting of non-vested shares | (2.5 | ) | — | — | — | (2.5 | ) | ||||||||||||||
Cash dividend paid to stockholders | (23.0 | ) | — | — | — | (23.0 | ) | ||||||||||||||
Cash dividend returned to the Company | 0.6 | — | — | — | 0.6 | ||||||||||||||||
Repurchase of common stock | (78.3 | ) | — | — | — | (78.3 | ) | ||||||||||||||
Intercompany loan | 132.4 | (130.5 | ) | (1.9 | ) | — | — | ||||||||||||||
Net cash provided by (used in) financing activities | 29.2 | (129.5 | ) | (1.9 | ) | — | (102.2 | ) | |||||||||||||
Net increase in cash and cash equivalents during the period | — | (108.3 | ) | 4.4 | — | (103.9 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 5 | 266 | 2.4 | — | 273.4 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 5 | $ | 157.7 | $ | 6.8 | $ | — | $ | 169.5 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net cash (used in) provided by operating activities1 | $ | (17.8 | ) | $ | 164.3 | $ | 5.9 | $ | — | $ | 152.4 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | — | (42.6 | ) | (1.5 | ) | — | (44.1 | ) | |||||||||||||
Purchase of available for sale securities | — | (85.0 | ) | — | — | (85.0 | ) | ||||||||||||||
Proceeds from disposal of property, plant and equipment | — | 0.3 | — | — | 0.3 | ||||||||||||||||
Change in restricted cash | 6.9 | 0.4 | (0.4 | ) | — | 6.9 | |||||||||||||||
Net cash provided by (used in) investing activities | 6.9 | (126.9 | ) | (1.9 | ) | — | (121.9 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Proceeds from issuance of Senior Notes | 225 | — | — | — | 225 | ||||||||||||||||
Repayment of capital lease | — | (0.1 | ) | — | — | (0.1 | ) | ||||||||||||||
Repayment of promissory notes | — | (4.7 | ) | — | — | (4.7 | ) | ||||||||||||||
Cash paid for financing costs | (6.6 | ) | — | — | — | (6.6 | ) | ||||||||||||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | — | 1.3 | — | — | 1.3 | ||||||||||||||||
Repurchase of common stock to cover employees' tax withholdings upon vesting of non-vested shares | (2.2 | ) | — | — | — | (2.2 | ) | ||||||||||||||
Cash dividend paid to stockholders | (19.6 | ) | — | — | — | (19.6 | ) | ||||||||||||||
Intercompany loan | (185.7 | ) | 189.1 | (3.4 | ) | — | — | ||||||||||||||
Net cash provided by (used in) financing activities | 10.9 | 185.6 | (3.4 | ) | — | 193.1 | |||||||||||||||
Net increase in cash and cash equivalents during the period | — | 223 | 0.6 | — | 223.6 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 5 | 43 | 1.8 | — | 49.8 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 5 | $ | 266 | $ | 2.4 | $ | — | $ | 273.4 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (10.2 | ) | $ | 71.9 | $ | 1.1 | $ | — | $ | 62.8 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | — | (31.2 | ) | (1.3 | ) | — | (32.5 | ) | |||||||||||||
Purchase of available for sale securities | — | (0.3 | ) | — | — | (0.3 | ) | ||||||||||||||
Proceeds from disposal of property, plant and equipment | — | — | 0.7 | — | 0.7 | ||||||||||||||||
Cash payment for acquisition of manufacturing facility and related assets (net of $4.9 of cash received in connection with the acquisition in 2011) | — | (83.2 | ) | — | — | (83.2 | ) | ||||||||||||||
Change in restricted cash | — | (1.0 | ) | — | — | (1.0 | ) | ||||||||||||||
Net cash used in investing activities | — | (115.7 | ) | (0.6 | ) | — | (116.3 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Repayment of capital lease | — | (0.1 | ) | — | — | (0.1 | ) | ||||||||||||||
Repayment of promissory notes | — | (8.3 | ) | — | — | (8.3 | ) | ||||||||||||||
Cash paid for financing costs | — | (2.1 | ) | — | — | (2.1 | ) | ||||||||||||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | — | 0.2 | — | — | 0.2 | ||||||||||||||||
Repurchase of common stock to cover employees' tax withholdings upon vesting of non-vested shares | (3.1 | ) | — | — | — | (3.1 | ) | ||||||||||||||
Cash dividend paid to stockholders | (18.9 | ) | — | — | — | (18.9 | ) | ||||||||||||||
Intercompany loan | 32.2 | (32.5 | ) | 0.3 | — | — | |||||||||||||||
Net cash provided (used in) by financing activities | 10.2 | (42.8 | ) | 0.3 | — | (32.3 | ) | ||||||||||||||
Net (decrease) increase in cash and cash equivalents during the period | — | (86.6 | ) | 0.8 | — | (85.8 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 5 | 129.6 | 1 | — | 135.6 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 5 | $ | 43 | $ | 1.8 | $ | — | $ | 49.8 | |||||||||||
Quarterly_Financial_Data
Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Data [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information [Text Block] | ' | ||||||||||||||||
Quarterly Financial Data (Unaudited) | |||||||||||||||||
The following tables present the unaudited financial data for each of the interim periods in 2013 and 2012. | |||||||||||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 337.4 | $ | 328.9 | $ | 319.9 | $ | 311.3 | |||||||||
Cost of products sold, excluding depreciation, amortization and other items | 263.6 | 261.5 | 259.5 | 254.3 | |||||||||||||
Unrealized losses (gains) on derivative instruments | 0.7 | 4.2 | (1.5 | ) | (4.1 | ) | |||||||||||
Gross Profit | 73.1 | 63.2 | 61.9 | 61.1 | |||||||||||||
Operating income | 50 | 40.1 | 41.6 | 41.6 | |||||||||||||
Net income | $ | 33.5 | $ | 18.6 | $ | 25.4 | $ | 27.3 | |||||||||
Earnings per common share, Basic: | |||||||||||||||||
Net income per share | $ | 1.75 | $ | 0.99 | $ | 1.37 | $ | 1.48 | |||||||||
Earnings per common share, Diluted: | |||||||||||||||||
Net income per share | $ | 1.73 | $ | 0.98 | $ | 1.34 | $ | 1.44 | |||||||||
Common stock market price (based on daily closing price): | |||||||||||||||||
High | $ | 65.03 | $ | 65.44 | $ | 71.96 | $ | 73.03 | |||||||||
Low | $ | 60.77 | $ | 58.75 | $ | 62.31 | $ | 65.23 | |||||||||
Quarter | Quarter | Quarter | Quarter | ||||||||||||||
Ended | Ended | Ended | Ended | ||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
2012 | |||||||||||||||||
Net sales | $ | 365.4 | $ | 345.2 | $ | 335.5 | $ | 314 | |||||||||
Cost of products sold, excluding depreciation, amortization and other items | 298.1 | 284.4 | 268.9 | 264.8 | |||||||||||||
Unrealized (gains) losses on derivative instruments | (3.1 | ) | 0.1 | (12.3 | ) | 0.1 | |||||||||||
Gross Profit | 70.4 | 60.7 | 78.9 | 49.1 | |||||||||||||
Operating income | 46.2 | 39.6 | 56.2 | 23.9 | |||||||||||||
Net income | $ | 26.5 | $ | 21 | $ | 29.2 | $ | 9.1 | |||||||||
Earnings per common share, Basic: | |||||||||||||||||
Net income per share | $ | 1.39 | $ | 1.1 | $ | 1.52 | $ | 0.48 | |||||||||
Earnings per common share, Diluted: | |||||||||||||||||
Net income per share | $ | 1.38 | $ | 1.09 | $ | 1.51 | $ | 0.47 | |||||||||
Common stock market price (based on daily closing price): | |||||||||||||||||
High | $ | 52.46 | $ | 52.57 | $ | 59.15 | $ | 61.75 | |||||||||
Low | $ | 46.82 | $ | 46.62 | $ | 49.42 | $ | 56.27 | |||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
Dividend Declaration. On January 14, 2014, the Company announced that its Board of Directors approved the declaration of a quarterly cash dividend of $0.35 per common share, or $6.4 (including dividend equivalents), which was paid on February 14, 2014 to stockholders of record at the close of business on January 24, 2014. | |
Anti-dilution Adjustments to Convertible Notes and Convertible Note Hedge Transactions. Upon the payment of the | |
quarterly dividend on February 14, 2014, (a) the Convertible Notes' conversion rate increased slightly to 20.8234 shares | |
per $1,000 principal amount of the Convertible Notes and the equivalent conversion price decreased slightly to $48.02 per share, (b) the Call Options' exercise price decreased slightly to $48.02 per share, and (c) the Warrants' exercise price decreased slightly to $60.98 per share. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Accounting Policies [Abstract] | ' | |||
Organization and Nature of Operations | ' | |||
Organization and Nature of Operations. Kaiser Aluminum Corporation (together with its subsidiaries, unless the context otherwise requires, the “Company”) specializes in the production of semi-fabricated specialty aluminum products, such as aluminum sheet and plate and extruded and drawn products, primarily used in aerospace/high strength, general engineering, automotive, and other industrial end market applications. The Company has one operating segment, Fabricated Products. See Note 14 for additional information regarding the Company's reportable segment and its other business units. | ||||
Principles of Consolidation and Basis of Presentation | ' | |||
Principles of Consolidation and Basis of Presentation. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, and are prepared in accordance with United States generally accepted accounting principles (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). Intercompany balances and transactions are eliminated. | ||||
The Company sold its 49% non-controlling ownership interest in Anglesey Aluminium Limited ("Anglesey") in the fourth quarter of 2013 for a de minimis amount. The Company had previously impaired the carrying value of its ownership interest in Anglesey to zero, and accordingly, recorded a de minimis gain on the sale. Because the Company had suspended the use of the equity method of accounting with respect to its 49% non-controlling ownership interest in Anglesey, no equity in income from Anglesey was reflected for any of the periods presented herein. | ||||
Use of Estimates in the Preparation of Financial Statements | ' | |||
Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of the Company’s consolidated financial position and results of operations. | ||||
Recognition of Sales | ' | |||
Recognition of Sales. Sales are generally recognized on a gross basis when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) title, ownership and risk of loss has passed to the customer, (iii) the price to the customer is fixed or determinable, and (iv) collection of the resulting receivable is reasonably assured. A provision for estimated sales returns from, and allowances to, customers is made in the same period as the related revenues are recognized, based on historical experience or the specific identification of an event necessitating a reserve. | ||||
From time to time, in the ordinary course of business, the Company may enter into agreements with customers in which the Company, in return for a fee, agrees to reserve certain amounts of its existing production capacity for the customer, defer an existing customer purchase commitment into future periods and reserve certain amounts of its expected production capacity in those periods for the customer, or cancel or reduce existing commitments under existing contracts. These agreements may have terms or impact periods exceeding one year. | ||||
Certain of the capacity reservation and commitment deferral agreements provide for periodic, such as quarterly or annual, billing for the duration of the contract. For capacity reservation agreements, the Company recognizes revenue ratably over the period of the capacity reservation. Accordingly, the Company may recognize revenue prior to billing reservation fees. Unbilled receivables are included within Trade receivables on the Company's Consolidated Balance Sheets (see Note 2). For commitment deferral agreements, the Company recognizes revenue upon the earlier occurrence of the related sale of product or the end of the commitment period. In connection with other agreements, the Company may collect funds from customers in advance of the periods for which (i) the production capacity is reserved, (ii) commitments are deferred, (iii) commitments are reduced or (iv) performance is completed, in which event the recognition of revenue is deferred until the fee is earned. Any unearned fees are included within Other accrued liabilities or Long-term liabilities, as appropriate, on the Company's Consolidated Balance Sheets (see Note 2). | ||||
Stock-Based Compensation | ' | |||
Stock-Based Compensation. Stock-based compensation in the form of service-based awards is provided to executive officers, certain employees and directors, and is accounted for at fair value. The Company measures the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award and the number of awards expected to ultimately vest. The cost of an award is recognized as an expense over the requisite service period of the award on a straight-line basis. The Company has elected to amortize compensation expense for equity awards with graded vesting using the straight-line method (see Note 9). | ||||
The Company also grants performance-based awards to executive officers and other key employees. These awards are subject to performance requirements pertaining to the Company's economic value added (“EVA”) performance, measured over specified three-year performance periods. The EVA is a measure of the excess of the Company's adjusted pre-tax operating income for a particular year over a pre-determined percentage of the adjusted net assets of the immediately preceding year-end, as defined in the Company's annual long-term incentive (“LTI”) programs. The number of performance shares, if any, that will ultimately vest and result in the issuance of common shares depends on the average annual EVA achieved for the specified three-year performance period. The fair value of performance-based awards is measured based on the most probable outcome of the performance condition, which is estimated quarterly using the Company's forecast and actual results. The Company expenses the fair value, after assuming an estimated forfeiture rate, over the specified three-year performance period on a ratable basis (see Note 9). | ||||
Shipping and Handling Costs | ' | |||
Shipping and Handling Costs. Shipping and handling costs are recorded as a component of Cost of products sold excluding depreciation, amortization and other items. | ||||
Advertising Costs | ' | |||
Advertising Costs. Advertising costs, which are included in Selling, administrative, research and development, and general, are expensed as incurred. Advertising costs for 2013, 2012 and 2011 were $1.3, $0.4, and $0.4, respectively. | ||||
Research and Development Costs | ' | |||
Research and Development Costs. Research and development costs, which are included in Selling, research and development, and general, are expensed as incurred. Research and development costs for 2013, 2012 and 2011 were $7.8, $6.4, and $6.1, respectively. | ||||
Major Maintenance Activities | ' | |||
Major Maintenance Activities. All of the major maintenance costs are accounted for using the direct expensing method. | ||||
Cash and Cash Equivalents | ' | |||
Cash and Cash Equivalents. The Company considers only those short-term, highly liquid investments with original maturities of 90 days or less when purchased to be cash equivalents. The Company’s cash equivalents consist primarily of funds in commercial paper, savings accounts, demand notes, money market funds and other highly liquid investments, which are classified within Level 1 of the fair value hierarchy with the exception of commercial paper, which is classified within Level 2 of the fair value hierarchy. | ||||
Restricted Cash | ' | |||
Restricted Cash. The Company is required to keep certain amounts on deposit relating to workers’ compensation and other agreements. The Company accounts for such deposits as restricted cash (see Note 2). | ||||
Trade Receivables and Allowance for Doubtful Accounts | ' | |||
Trade Receivables and Allowance for Doubtful Accounts. Trade receivables primarily consist of amounts billed to customers for products sold. Accounts receivable are generally due within 30 to 60 days. For the majority of its receivables, the Company establishes an allowance for doubtful accounts based upon collection experience and other factors. On certain other receivables where the Company is aware of a specific customer’s inability or reluctance to pay, an allowance for doubtful accounts is established against amounts due, to reduce the net receivable balance to the amount the Company reasonably expects to collect. However, if circumstances change, the Company’s estimate of the recoverability of accounts receivable could be different. Circumstances that could affect the Company’s estimates include, but are not limited to, customer credit issues and general economic conditions. Accounts are written off once deemed to be uncollectible. Any subsequent cash collections relating to accounts that have been previously written off are typically recorded as a reduction to total bad debt expense in the period of payment. | ||||
Inventories | ' | |||
Inventories. Inventories are stated at the lower of cost or market value. Finished products, work-in-process and raw material inventories are stated on the last-in, first-out (“LIFO”) basis. The Company recorded net non-cash LIFO inventory benefits of approximately $24.1, $4.9 and $7.1 during 2013, 2012 and 2011, respectively. These amounts are primarily a result of changes in metal prices and changes in inventory volumes. The excesses of current cost over the stated LIFO value of inventory at December 31, 2013 and December 31, 2012 were $0.4 and $24.5, respectively. Inventory volume decreased during the year ended December 31, 2012. The effect from the liquidation of the 2011 LIFO layer was $22.3. Other inventories, principally operating supplies and repair and maintenance parts, are stated at average cost. Inventory costs consist of material, labor and manufacturing overhead, including depreciation. Abnormal costs, such as idle facility expenses, freight, handling costs and spoilage, are accounted for as current period charges. All of the Company's inventories at December 31, 2013 and December 31, 2012 were included in the Fabricated Products segment (see Note 2 for the components of inventories). | ||||
Property, Plant and Equipment - Net | ' | |||
Property, Plant, and Equipment - Net. Property, plant and equipment is recorded at cost (see Note 2). Construction in progress is included within Property, plant, and equipment - net in the Consolidated Balance Sheets. Interest related to the construction of qualifying assets is capitalized as part of the construction costs. The aggregate amount of interest capitalized is limited to the interest expense incurred in the period. The amount of interest expense capitalized as construction in progress was $3.4, $1.7 and $1.3 during 2013, 2012 and 2011, respectively. | ||||
Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Capital lease assets and leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The principal estimated useful lives are as follows: | ||||
Range (in years) | ||||
Land improvements | 3 | - | 25 | |
Buildings and leasehold improvements | 15 | - | 45 | |
Machinery and equipment | 1 | - | 24 | |
Capital lease assets | 3 | - | 5 | |
Depreciation expense is not included in Cost of products sold, excluding depreciation and amortization and other items, but is included in Depreciation and amortization on the Statements of Consolidated Income. For 2013, 2012 and 2011, the Company recorded depreciation expense of $25.8, $24.2 and $22.7, respectively, relating to the Company's operating facilities in its Fabricated Products segment. An immaterial amount of depreciation expense was also recorded in the Company's Corporate and Other for all periods presented herein. | ||||
Property, Plant and Equipment, Impairment | ' | |||
Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or group of assets may not be recoverable. The Company regularly assesses whether events and circumstances with the potential to trigger impairment have occurred and relies on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flow, to make such assessments. The Company uses an estimate of the future undiscounted cash flows of the related asset or asset group over the estimated remaining life of such asset(s) in measuring whether the asset(s) are recoverable. Measurement of the amount of impairment, if any, is based on the difference between the carrying value of the asset(s) and the estimated fair value of such asset(s). Fair value is determined through a series of standard valuation techniques. | ||||
Property, plant and equipment held for future development are presented as idled assets. Such assets are evaluated for impairment on a held-and-used basis. Depreciation expense is not adjusted when assets are temporarily idled. | ||||
During 2012, the Company determined not to deploy a portion of the idled assets for future use and recorded an impairment charge of $4.4 to reflect the scrap value of such assets. There were no impairment charges in 2013 and 2011. Asset impairment charges are included in Other operating charges (benefits), net in the Statements of Consolidated Income and are included in the Fabricated Products segment. | ||||
Available for Sale Securities | ' | |||
Available for Sale Securities. The Company accounts for investments in certain marketable debt securities as available for sale securities. Such securities are recorded at fair value (see “Fair Values of Financial Assets and Liabilities - Available for Sale Securities” in Note 12), with net unrealized gains and losses, net of income taxes, reflected in other comprehensive earnings as a component of Stockholders' equity. Debt investment securities with an original maturity of 90 days or less is classified as Cash and cash equivalents (see Note 2). Debt investment securities with an original maturity of greater than 90 days is presented as Short-term investments on the Consolidated Balance Sheets. In addition to debt investment securities, the Company also holds assets in various investment funds managed by a third-party trust in connection with the Company's deferred compensation program (see Note 7). | ||||
Deferred Financing Costs | ' | |||
Deferred Financing Costs. Costs incurred in connection with debt financing are deferred and amortized over the estimated term of the related borrowing. Such amortization is included in Interest expense and may be capitalized as part of construction in progress (see Note 2 and Note 3). | ||||
Goodwill and Intangible Assets | ' | |||
Goodwill and Intangible Assets. Goodwill is tested for impairment during the fourth quarter on an annual basis, as well as on an interim basis, as warranted, at the time of relevant events and changes in circumstances. Intangible assets with definite lives are initially recognized at fair value and subsequently amortized over the estimated useful lives to reflect the pattern in which the economic benefits of the intangible assets are consumed. In the event the pattern cannot be reliably determined, the Company uses a straight-line amortization method. Whenever events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable, the intangible assets are reviewed for impairment. The Company concluded there was no impairment of the carrying value of goodwill at December 31, 2013 or December 31, 2012 (Note 5). | ||||
Conditional Asset Retirement Obligations ("CAROs") | ' | |||
Conditional Asset Retirement Obligations (“CAROs”). The Company has CAROs at several of its fabricated products facilities. The vast majority of such CAROs consist of incremental costs that would be associated with the removal and disposal of asbestos (all of which is believed to be fully contained and encapsulated within walls, floors, roofs, ceilings or piping) at certain of the Company’s older facilities if such facilities were to undergo major renovation or be demolished. The Company, in accordance with Accounting Standards Codification ("ASC") Topic 410, Asset Retirement and Environmental Obligations, estimates incremental costs for special handling, removal and disposal costs of materials that may or will give rise to CAROs and then discounts the expected costs back to the current year using a credit-adjusted, risk-free rate. The Company recognizes liabilities and costs for CAROs even if it is unclear when or if CAROs will be triggered. When it is unclear when or if CAROs will be triggered, the Company uses probability weighting for possible timing scenarios to determine the probability-weighted amounts that should be recognized in the Company’s consolidated financial statements (see Note 12). | ||||
Self Insurance of Employee Health and Workers' Compensation Liabilities | ' | |||
Self Insurance of Employee Health and Workers' Compensation Liabilities. The Company is primarily self-insured for group health insurance and workers' compensation benefits provided to employees. Self insurance liabilities are estimated for incurred-but-not-paid claims based on judgment, using the Company's historical claims data and information and analysis provided by actuarial and claims advisors, the Company's insurance carriers and other professionals. The Company accounts for accrued liability relating to workers' compensation claims on a discounted basis. The discount rates used in estimating the liabilities were 1.75% and 0.75% and the undiscounted workers' compensation liabilities were $29.1 and $27.3 at December 31, 2013 and December 31, 2012, respectively. The accrued liabilities for health insurance and workers' compensation is included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2). | ||||
Environmental Contingencies | ' | |||
Environmental Contingencies. With respect to environmental loss contingencies, the Company records a loss contingency whenever a contingency is probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations are generally recognized at no later than the completion of the remedial feasibility study. Such accruals are adjusted as information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Accruals for expected environmental costs are included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2). Environmental expense relating to continuing operations is included in Cost of products sold, excluding depreciation and amortization and other items in the Statements of Consolidated Income. Environmental expense relating to non-operating locations is included in Selling, administrative, research and development, and general in the Statements of Consolidated Income. | ||||
Derivative Financial Instruments | ' | |||
Derivative Financial Instruments. Hedging transactions using derivative financial instruments are primarily designed to mitigate the Company's exposure to changes in prices for certain products sold and consumed by the Company and, to a lesser extent, to mitigate the Company's exposure to changes in foreign currency exchange rates. From time to time, the Company also enters into hedging arrangements in connection with financing transactions to mitigate financial risks. | ||||
The Company does not utilize derivative financial instruments for trading or other speculative purposes. The Company's derivative activities are initiated within guidelines established by management and approved by the Company's Board of Directors. Hedging transactions are executed centrally on behalf of all of the Company's business units to minimize transaction costs, monitor consolidated net exposures and allow for increased responsiveness to changes in market factors. | ||||
The Company recognizes all derivative instruments as assets or liabilities in its Consolidated Balance Sheets and measures these instruments at fair value by “marking-to-market” all of its hedging positions at each period's end (see Note 12). Because the Company does not meet the documentation requirements for hedge (deferral) accounting, unrealized and realized gains and losses associated with hedges of operational risks are reflected as a reduction or increase, respectively, in Cost of products sold (Unrealized (gains) losses on derivative instruments), and unrealized and realized gains and losses relating to hedges of financing transactions are reflected as a component of Other income (expense) (see Note 16). See Note 11 for additional information about realized and unrealized gains and losses relating to the Company's derivative financial instruments. | ||||
Fair Value Measurement | ' | |||
Fair Value Measurement. The Company applies the provisions of Accounting Standards Update (“ASU”) Topic 820, Fair Value Measurements and Disclosures, in measuring the fair value of its derivative contracts and plan assets invested by certain of the Company’s employee benefit plans (see Note 12). | ||||
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 consists of three broad levels and 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 and 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. | |||
Income Taxes | ' | |||
Income Taxes. Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying statutory tax rates in effect for the year during which the differences are expected to reverse. In accordance with ASC Topic 740, Income Taxes, the Company uses a “more likely than not” threshold for recognition of tax attributes that are subject to uncertainties and measures any reserves in respect of such expected benefits based on their probability. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized (see Note 6). | ||||
Earnings per Share | ' | |||
Earnings per Share. Basic earnings per share is computed by dividing distributed and undistributed earnings allocable to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes unvested share-based payment awards. The shares that were owned by a voluntary employee’s beneficiary association (“VEBA”) for the benefit of certain union retirees, their surviving spouses and eligible dependents (the “Union VEBA”) and subject to transfer restrictions (see Note 7) are included in the computation of basic weighted-average number of common shares outstanding in 2012 and 2011 because such shares were irrevocably issued and had full dividend and voting rights. Diluted earnings per share is calculated as the more dilutive result of computing earnings per share under: (i) the treasury stock method or (ii) the two-class method. Diluted earnings per share for 2013 and 2012 were calculated under the treasury stock method. Diluted earnings per share for 2011 was calculated under the two-class method (see Note 13). | ||||
Concentration of Credit Risk | ' | |||
Concentration of Credit Risk. Financial arrangements which potentially subject the Company to concentrations of credit risk consist of metal, natural gas, electricity and foreign currency derivative contracts, certain cash-settled call options that the Company purchased in March 2010 (the “Call Options”) (see Note 3), and arrangements related to the Company's cash equivalents and short-term investments. If the market value of the Company's net commodity and currency derivative positions with certain counterparties exceeds the applicable threshold, if any, the counterparty is required to post margin by transferring cash collateral in excess of the threshold to the Company. Conversely, if the market value of these net derivative positions falls below a specified threshold, the Company is required to post margin by transferring cash collateral below the threshold to certain counterparties. At both December 31, 2013 and December 31, 2012, the Company had no margin deposits with or from its counterparties. | ||||
The Company is exposed to credit loss in the event of nonperformance by counterparties on derivative contracts used in hedging activities as well as failure of counterparties to return cash collateral previously transferred to the counterparties. The counterparties to the Company's derivative contracts are major financial institutions, and the Company does not expect nonperformance by any of its counterparties. | ||||
The Company places its cash in commercial paper, savings accounts, demand notes and money market funds. Such money market funds are with high credit quality financial institutions which invest primarily in commercial paper and time deposits of prime quality, short-term repurchase agreements, and U.S. government agency notes. | ||||
Leases | ' | |||
Leases. For leases that contain predetermined fixed escalations of the minimum rent, the Company recognizes the related rent expense on a straight-line basis from the date it takes possession of the property to the end of the initial lease term. The Company records any difference between the straight-line rent amounts and the amount payable under the lease as part of deferred rent in Other accrued liabilities or Long-term liabilities, as appropriate. Deferred rent for all periods presented was not material. | ||||
Foreign Currency | ' | |||
Foreign Currency. Certain of the Company’s foreign subsidiaries use the local currency as its functional currency; its assets and liabilities are translated at exchange rates in effect at the balance sheet date; and its statement of operations is translated at weighted-average monthly rates of exchange prevailing during the year. Resulting translation adjustments are recorded directly to a separate component of stockholders’ equity in accordance with ASC Topic 830, Foreign Currency Matters. At both December 31, 2013 and December 31, 2012, the amount of translation adjustment relating to the foreign subsidiary using local currency as its functional currency was immaterial. Where the U.S. dollar is the functional currency of a foreign facility or subsidiary, re-measurement adjustments are recorded in Other income (expense). | ||||
New Accounting Pronouncements | ' | |||
New Accounting Pronouncements. ASU No. 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. (“ASU 2013-11”), was issued in July 2013. ASU 2013-11 requires an entity to present in the financial statements an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset resulting from a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, when the above situation is not available at the reporting date or the tax law of the applicable jurisdiction does not require the entity to use the deferred tax asset for such purpose, the unrecognized tax benefit is to be presented in the financial statements as a liability and not be combined with deferred tax assets. An entity is required to adopt ASU 2013-11 for annual and interim periods beginning after December 15, 2014. The Company does not expect the adoption of ASU 2013-11 to have a material impact on its financial statements. |
Supplemental_Balance_Sheet_Inf1
Supplemental Balance Sheet Information (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Supplemental Balance Sheet Information [Abstract] | ' | ||||||||
Cash and Cash Equivalents | ' | ||||||||
December 31, 2013 | December 31, 2012 | ||||||||
Cash and Cash Equivalents. | |||||||||
Cash and money market funds | $ | 57.7 | $ | 107.9 | |||||
Commercial paper | 111.8 | 165.5 | |||||||
Total | $ | 169.5 | $ | 273.4 | |||||
Trade Receivables | ' | ||||||||
Trade Receivables. | |||||||||
Billed trade receivables | $ | 120.2 | $ | 124.4 | |||||
Unbilled trade receivables — Note 1 | 0.4 | 0.2 | |||||||
Trade receivables, gross | 120.6 | 124.6 | |||||||
Allowance for doubtful receivables | (0.8 | ) | (0.8 | ) | |||||
Trade receivables, net | $ | 119.8 | $ | 123.8 | |||||
Inventories | ' | ||||||||
Inventories. | |||||||||
Finished products | $ | 72.5 | $ | 59.9 | |||||
Work-in-process | 75.9 | 55.5 | |||||||
Raw materials | 47.2 | 53.9 | |||||||
Operating supplies and repairs and maintenance parts | 18.8 | 16.7 | |||||||
Total | $ | 214.4 | $ | 186 | |||||
Prepaid Expenses and Other Current Assets | ' | ||||||||
Prepaid Expenses and Other Current Assets. | |||||||||
Current derivative assets — Notes 11 and 12 | $ | 2 | $ | 3 | |||||
Current deferred tax assets | 36.7 | 59.5 | |||||||
Current portion of option premiums paid — Notes 11 and 12 | — | 0.1 | |||||||
Short-term restricted cash | 0.3 | 1.3 | |||||||
Prepaid taxes | — | 2.1 | |||||||
Prepaid expenses | 5.2 | 4.1 | |||||||
Total | $ | 44.2 | $ | 70.1 | |||||
Property, Plant and Equipment - Net | ' | ||||||||
Property, Plant, and Equipment - Net. | |||||||||
Land and improvements | $ | 22.6 | $ | 22.6 | |||||
Buildings and leasehold improvements | 53 | 50.9 | |||||||
Machinery and equipment | 425.6 | 400.4 | |||||||
Construction in progress | 66 | 20.8 | |||||||
Active property, plant, and equipment, gross | 567.2 | 494.7 | |||||||
Accumulated depreciation | (137.9 | ) | (111.4 | ) | |||||
Active property, plant, and equipment, net | 429.3 | 383.3 | |||||||
Idled equipment | — | 1 | |||||||
Property, plant, and equipment, net | $ | 429.3 | $ | 384.3 | |||||
Other Assets | ' | ||||||||
Other Assets. | |||||||||
Derivative assets — Notes 11 and 12 | $ | 79.8 | $ | 55.5 | |||||
Restricted cash | 9.3 | 10 | |||||||
Long-term income tax receivable | — | 2.9 | |||||||
Deferred financing costs | 8.9 | 11.7 | |||||||
Deferred compensation plan assets | 6.5 | 5.6 | |||||||
Other | 0.3 | 0.3 | |||||||
Total | $ | 104.8 | $ | 86 | |||||
Other Accrued Liabilities | ' | ||||||||
Other Accrued Liabilities. | |||||||||
Current derivative liabilities — Notes 11 and 12 | $ | 1.8 | $ | 3.1 | |||||
Current portion of option premiums received — Notes 11 and 12 | — | 0.1 | |||||||
Uncleared cash disbursement | 9.6 | 4.7 | |||||||
Accrued income taxes and taxes payable | 4.3 | 3.1 | |||||||
Accrued annual VEBA contribution | 16 | 20 | |||||||
Short-term environmental accrual — Note 10 | 2.8 | 3 | |||||||
Accrued interest | 3.7 | 3.7 | |||||||
Short-term deferred revenue — Note 1 | — | 6.7 | |||||||
Other | 6.6 | 7.4 | |||||||
Total | $ | 44.8 | $ | 51.8 | |||||
Long-term Liabilities | ' | ||||||||
Long-term Liabilities. | |||||||||
Derivative liabilities — Notes 11 and 12 | $ | 84.3 | $ | 63.5 | |||||
Income tax liabilities | 5 | 15.1 | |||||||
Workers’ compensation accruals | 23.3 | 24 | |||||||
Long-term environmental accrual — Note 10 | 20 | 18.7 | |||||||
Long-term asset retirement obligations | 4 | 3.8 | |||||||
Deferred compensation liability | 7 | 5.8 | |||||||
Long-term capital leases | 0.1 | 0.2 | |||||||
Other long-term liabilities | 2.7 | 3.4 | |||||||
Total | $ | 146.4 | $ | 134.5 | |||||
Long-term Debt | ' | ||||||||
Long-term Debt. — Note 3 | |||||||||
Senior notes | $ | 225 | $ | 225 | |||||
Cash convertible senior notes | 163.5 | 155.3 | |||||||
Total | $ | 388.5 | $ | 380.3 | |||||
LongTerm_Debt_and_Credit_Facil1
Long-Term Debt and Credit Facility (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||
Principal amount, carrying amount, and interest expense of the notes | ' | |||||||||||
The following tables provide additional information regarding the Convertible Notes: | ||||||||||||
December 31, | December 31, | |||||||||||
2013 | 2012 | |||||||||||
Principal amount | $ | 175 | $ | 175 | ||||||||
Less: unamortized issuance discount1 | (11.5 | ) | (19.7 | ) | ||||||||
Carrying amount, net of discount | $ | 163.5 | $ | 155.3 | ||||||||
________________ | ||||||||||||
1 The remaining unamortized issuance discount at December 31, 2013 will be amortized over the next 1.3 years assuming no early conversion. | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Contractual coupon interest | $ | 7.9 | $ | 7.9 | $ | 8.4 | ||||||
Amortization of discount | 8.2 | 7.3 | 6.6 | |||||||||
Amortization of deferred financing costs | 1.2 | 1.2 | 1.2 | |||||||||
Total interest expense1 | $ | 17.3 | $ | 16.4 | $ | 16.2 | ||||||
_______________ | ||||||||||||
1 | A portion of the interest relating to the Convertible Notes is capitalized as Construction in progress. |
Acquisitions_Tables
Acquisitions (Tables) (Alexco) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Alexco | ' | |||||||||||
Business Acquisition | ' | |||||||||||
Allocation of purchase price | ' | |||||||||||
The following table summarizes recognized amounts of identifiable assets acquired and liabilities assumed at the effective date of the acquisition: | ||||||||||||
Allocation of purchase price: | ||||||||||||
Cash | $ | 4.9 | ||||||||||
Accounts receivable, net | 3.6 | |||||||||||
Inventory | 6.6 | |||||||||||
Property, plant and equipment | 4.5 | |||||||||||
Definite-lived intangible assets: | ||||||||||||
Customer relationships | 34.7 | |||||||||||
Backlog | 0.3 | |||||||||||
Trademark and trade name | 0.4 | |||||||||||
Goodwill | 34.1 | |||||||||||
Accounts payable and other current liabilities | (1.0 | ) | ||||||||||
Cash consideration paid | $ | 88.1 | ||||||||||
Pro forma information | ' | |||||||||||
The following pro forma data does not purport to be indicative of the results of future operations or of the results that would have actually occurred had the acquisition taken place at the beginning of 2010: | ||||||||||||
Year Ended | ||||||||||||
December 31, | ||||||||||||
2011 | 2010 | |||||||||||
Net sales (combined) | $ | 1,301.30 | $ | 1,110.70 | ||||||||
Net income (combined) | $ | 25.1 | $ | 16.9 | ||||||||
Basic earnings per share (combined) | $ | 1.32 | $ | 0.87 | ||||||||
Diluted earnings per share (combined) | $ | 1.32 | $ | 0.87 | ||||||||
Select financial data relating to acquisition | ' | |||||||||||
The following information presents select financial data relating to the Chandler, Arizona (Extrusion) facility, as included within the Company's consolidated operating results for 2013, 2012 and 2011. | ||||||||||||
Year Ended | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net sales | $ | 39.5 | $ | 44.5 | $ | 42.8 | ||||||
Net income before income taxes | $ | 6.3 | $ | 9 | $ | 10.5 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Identifiable intangible assets | ' | ||||||||||||
Identifiable intangible assets at December 31, 2013 and December 31, 2012 are comprised of the following: | |||||||||||||
December 31, 2013: | |||||||||||||
Original cost | Accumulated | Net book | |||||||||||
amortization | value | ||||||||||||
Customer relationships | $ | 38.5 | $ | (4.8 | ) | $ | 33.7 | ||||||
Backlog | 0.8 | (0.8 | ) | — | |||||||||
Trademark and trade name | 0.4 | (0.4 | ) | — | |||||||||
Total | $ | 39.7 | $ | (6.0 | ) | $ | 33.7 | ||||||
December 31, 2012: | |||||||||||||
Original cost | Accumulated | Net book | |||||||||||
amortization | value | ||||||||||||
Customer relationships | $ | 38.5 | $ | (3.2 | ) | $ | 35.3 | ||||||
Backlog | 0.8 | (0.8 | ) | — | |||||||||
Trademark and trade name | 0.4 | (0.3 | ) | 0.1 | |||||||||
Total | $ | 39.7 | $ | (4.3 | ) | $ | 35.4 | ||||||
Income_Tax_Matters_Tables
Income Tax Matters (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income before income taxes by geographic area | ' | |||||||||||||||
Tax provision. Income before income taxes by geographic area is as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Domestic | $ | 138.9 | $ | 134.5 | $ | 37.9 | ||||||||||
Foreign | 4.3 | 5.1 | 3.4 | |||||||||||||
Income before income taxes | $ | 143.2 | $ | 139.6 | $ | 41.3 | ||||||||||
Tax Provision | ' | |||||||||||||||
The provision for income taxes consists of: | ||||||||||||||||
Federal | Foreign | State | Total | |||||||||||||
2013 | ||||||||||||||||
Current | $ | 1.1 | $ | 16.2 | $ | (0.2 | ) | $ | 17.1 | |||||||
Deferred | (49.7 | ) | (0.5 | ) | (6.7 | ) | (56.9 | ) | ||||||||
Benefit (expense) applied to increase (decrease) Additional capital/ Other comprehensive income | 1.3 | (0.1 | ) | 0.2 | 1.4 | |||||||||||
Total (expense) benefit | $ | (47.3 | ) | $ | 15.6 | $ | (6.7 | ) | $ | (38.4 | ) | |||||
2012 | ||||||||||||||||
Current | $ | — | $ | (2.3 | ) | $ | 0.2 | $ | (2.1 | ) | ||||||
Deferred | (113.0 | ) | (0.2 | ) | (15.3 | ) | (128.5 | ) | ||||||||
Benefit applied to increase Additional capital/ Other comprehensive income | 67.4 | 0.2 | 9.2 | 76.8 | ||||||||||||
Total expense | $ | (45.6 | ) | $ | (2.3 | ) | $ | (5.9 | ) | $ | (53.8 | ) | ||||
2011 | ||||||||||||||||
Current | $ | 1.4 | $ | 0.3 | $ | 0.1 | $ | 1.8 | ||||||||
Deferred | (2.3 | ) | (0.5 | ) | 0.7 | (2.1 | ) | |||||||||
Expense applied to decrease Additional capital/ Other comprehensive income | (13.5 | ) | (0.4 | ) | (2.0 | ) | (15.9 | ) | ||||||||
Total expense | $ | (14.4 | ) | $ | (0.6 | ) | $ | (1.2 | ) | $ | (16.2 | ) | ||||
Reconciliation of income tax provision based on effective income tax rate and statutory tax rate | ' | |||||||||||||||
A reconciliation between the provision for income taxes and the amount computed by applying the federal statutory income tax rate to income before income taxes is as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Amount of federal income tax provision based on the statutory rate | $ | (50.1 | ) | $ | (48.9 | ) | $ | (14.5 | ) | |||||||
Decrease in federal valuation allowances | 0.1 | 0.1 | — | |||||||||||||
Non-deductible compensation expense | (0.3 | ) | (0.4 | ) | (1.1 | ) | ||||||||||
Non-deductible expense | (0.9 | ) | (0.3 | ) | (0.4 | ) | ||||||||||
State income taxes, net of federal benefit 1 | (4.4 | ) | (3.8 | ) | (0.8 | ) | ||||||||||
Foreign income tax (expense) benefit | — | (0.5 | ) | 0.6 | ||||||||||||
Expiration of statute of limitations | 4.6 | — | — | |||||||||||||
Settlement with taxing authorities | 4.4 | — | — | |||||||||||||
Advance pricing agreement | 2.9 | — | — | |||||||||||||
Competent Authority settlement | 5.3 | — | — | |||||||||||||
Income tax provision | $ | (38.4 | ) | $ | (53.8 | ) | $ | (16.2 | ) | |||||||
___________________________ | ||||||||||||||||
1 | State income taxes of $4.4 in 2013 includes a $1.2 increase in the valuation allowance relating to certain unused state net operating losses expected to expire. State income taxes of $0.8 in 2011 includes a $1.2 decrease in the valuation allowance relating to certain state net operating losses expected to be utilized before their expiration. | |||||||||||||||
The table above reflects a full statutory U.S. tax provision despite the fact that the Company is only paying U.S. federal alternative minimum tax (“AMT”) and some state income taxes. | ||||||||||||||||
Deferred tax assets and liabilities | ' | |||||||||||||||
The components of the Company’s net deferred income tax assets are as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Deferred income tax assets: | ||||||||||||||||
Loss and credit carryforwards | $ | 321.8 | $ | 342.2 | ||||||||||||
VEBAs (See Note 7) | 6.1 | 7.6 | ||||||||||||||
Other assets | 34.4 | 35.3 | ||||||||||||||
Inventories and other | 2.5 | 1.7 | ||||||||||||||
Valuation allowances | (19.9 | ) | (18.7 | ) | ||||||||||||
Total deferred income tax assets | 344.9 | 368.1 | ||||||||||||||
Deferred income tax liabilities: | ||||||||||||||||
Property, plant, and equipment | (73.0 | ) | (69.7 | ) | ||||||||||||
VEBAs (See Note 7) | (152.4 | ) | (136.9 | ) | ||||||||||||
Inventories | (14.9 | ) | — | — | ||||||||||||
Total deferred income tax liabilities | (240.3 | ) | (206.6 | ) | ||||||||||||
Net deferred income tax assets 1 | $ | 104.6 | $ | 161.5 | ||||||||||||
__________________________ | ||||||||||||||||
1 | Of the total net deferred income tax assets of $104.6, $36.7 was included in Prepaid expenses and other current assets, $69.1 was presented as Deferred tax assets, net and $1.2 was presented as Deferred tax liability on the Consolidated Balance Sheet as of December 31, 2013. Of the total net deferred income tax assets of $161.5, $59.5 was included in Prepaid expenses and other current assets and $102.0 was presented as Deferred tax assets, net on the Consolidated Balance Sheet as of December 31, 2012. | |||||||||||||||
Reconciliation of changes in the gross unrecognized tax benefits | ' | |||||||||||||||
A reconciliation of changes in the gross unrecognized tax benefits is as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Gross unrecognized tax benefits at beginning of period | $ | 15.7 | $ | 13.7 | $ | 15 | ||||||||||
Gross increases for tax positions of prior years | — | 1.3 | 0.1 | |||||||||||||
Gross decreases for tax positions of prior years | (7.6 | ) | (0.1 | ) | — | |||||||||||
Gross increases for tax positions of current years | — | 0.4 | 0.4 | |||||||||||||
Settlements | — | — | (0.5 | ) | ||||||||||||
Gross decrease for tax positions relating to lapse of a statute of limitation | (3.3 | ) | — | (0.9 | ) | |||||||||||
Foreign currency translation | (1.0 | ) | 0.4 | (0.4 | ) | |||||||||||
Gross unrecognized tax benefits at end of period | $ | 3.8 | $ | 15.7 | $ | 13.7 | ||||||||||
Employee_Benefits_Tables
Employee Benefits (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||||||
Schedule of Assumptions Used to Determine Benefit Obligations | ' | |||||||||||||||||||||||||||
Assumptions used to determine benefit obligations as of December 31 are: | ||||||||||||||||||||||||||||
Canadian Pension Benefits | VEBA Benefits | |||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Union | Salaried | Union | Salaried | |||||||||||||||||||||||||
VEBA | VEBA | VEBA | VEBA | |||||||||||||||||||||||||
Benefit obligations assumptions: | ||||||||||||||||||||||||||||
Discount rate | 4.9 | % | 4.4 | % | 4.7 | % | 4.2 | % | 4 | % | 3.4 | % | ||||||||||||||||
Rate of compensation increase | 3 | % | 3 | % | — | — | — | — | ||||||||||||||||||||
Initial medical trend rate 1 | — | — | 7.5 | % | — | 8 | % | — | ||||||||||||||||||||
Ultimate medical trend rate 1 | — | — | 5 | % | — | 5 | % | — | ||||||||||||||||||||
1 | The medical trend rate assumptions used for the Union VEBA were provided by the Union VEBA and certain industry data were provided by the Company's actuaries. The trend rate is assumed to decline to 5% by 2019 at each of December 31, 2013 and December 31, 2012. A one-percentage-point increase in the assumed medical trend rates would increase the accumulated postretirement benefit obligation of the Union VEBA by $27.8 and $41.1 at December 31, 2013 and December 31, 2012, respectively. A one-percentage-point decrease in the assumed medical trend rates would decrease the accumulated postretirement benefit obligation of the Union VEBA by $22.7 and $33.4 at December 31, 2013 and December 31, 2012, respectively. | |||||||||||||||||||||||||||
Schedule of Assumptions Used to Determine Net Periodic Benefit Cost (Income) | ' | |||||||||||||||||||||||||||
Assumptions used to determine net periodic benefit cost (income) for the years ended December 31 are: | ||||||||||||||||||||||||||||
Canadian Pension Benefits | VEBA Benefits | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Union | Salaried | Union | Salaried | Union | Salaried | |||||||||||||||||||||||
VEBA | VEBA | VEBA | VEBA | VEBA | VEBA | |||||||||||||||||||||||
Net periodic benefit cost assumptions: | ||||||||||||||||||||||||||||
Discount rate | 4.4 | % | 5.6 | % | 5.7 | % | 4 | % | 3.4 | % | 4.2 | % | 3.75 | % | 5.25 | % | 4.7 | % | ||||||||||
Expected long-term return on plan assets 1 | 4.5 | % | 4.6 | % | 5.4 | % | 6.25 | % | 7.25 | % | 7.25 | % | 7.25 | % | 6 | % | 7.25 | % | ||||||||||
Rate of compensation increase | 3 | % | 3 | % | 3.5 | % | — | — | — | — | — | — | ||||||||||||||||
Initial medical trend rate2 | — | — | — | 8 | % | — | 8.5 | % | — | 9 | % | — | ||||||||||||||||
Ultimate medical trend rate2 | — | — | — | 5 | % | — | 5 | % | — | 5 | % | — | ||||||||||||||||
_____________________ | ||||||||||||||||||||||||||||
1 | The expected long-term rate of return assumption is based on the targeted investment portfolios provided to the Company by the VEBAs’ trustees. | |||||||||||||||||||||||||||
2 | The medical trend rate assumptions used for the Union VEBA, which is currently paying certain prescription drug benefits, were provided by the Union VEBA and certain industry data were provided by the Company's actuaries. The trend rate is assumed to decline to 5% by 2019 for each of 2013, 2012 and 2011. A one-percentage-point increase in the assumed medical trend rates would increase the aggregate of the service and interest cost components of net periodic benefit costs by $2.0, $2.5 and $2.7 for 2013, 2012 and 2011, respectively. A one-percentage-point decrease in the assumed medical trend rates would decrease the aggregate of the service and interest cost components of net periodic benefit costs by $1.5, $2.0, and $2.1 for 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||
Schedule of Changes in Benefit Obligations | ' | |||||||||||||||||||||||||||
The following table presents the benefit obligations and funded status of the Company’s Canadian pension and the VEBAs as of December 31, 2013 and December 31, 2012, and the corresponding amounts that are included in the Company’s Consolidated Balance Sheets. | ||||||||||||||||||||||||||||
Canadian Pension Benefits | VEBA Benefits | |||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||||||
Change in Benefit Obligation: | ||||||||||||||||||||||||||||
Obligation at beginning of year | $ | 7 | $ | 5.4 | $ | 384.1 | $ | 446.9 | ||||||||||||||||||||
Foreign currency translation adjustment | (0.5 | ) | 0.2 | — | — | |||||||||||||||||||||||
Service cost | 0.3 | 0.2 | 2.5 | 3.4 | ||||||||||||||||||||||||
Interest cost | 0.3 | 0.3 | 14.6 | 17.9 | ||||||||||||||||||||||||
Actuarial (gain) loss1 | (0.2 | ) | 1.1 | (7.3 | ) | (66.2 | ) | |||||||||||||||||||||
Plan participant contributions | — | 0.1 | — | — | ||||||||||||||||||||||||
Benefits paid by Company | (0.3 | ) | (0.3 | ) | — | — | ||||||||||||||||||||||
Benefits paid by VEBA | — | — | (21.5 | ) | (20.8 | ) | ||||||||||||||||||||||
Reimbursement from retiree drug subsidy2 | — | — | 2.3 | 2.9 | ||||||||||||||||||||||||
Obligation at end of year | 6.6 | 7 | 374.7 | 384.1 | ||||||||||||||||||||||||
Schedule of Changes in Plan Assets | ' | |||||||||||||||||||||||||||
Change in Plan Assets: | ||||||||||||||||||||||||||||
FMV of plan assets at beginning of year | 5.7 | 4.9 | 744.7 | 571 | ||||||||||||||||||||||||
Foreign currency translation adjustment | (0.4 | ) | 0.2 | — | — | |||||||||||||||||||||||
Actual return on assets | 0.7 | 0.3 | 39.2 | 63 | ||||||||||||||||||||||||
Plan participant contributions | — | 0.1 | — | — | ||||||||||||||||||||||||
Sale of Company's common stock by Union VEBA | — | — | — | 108.6 | ||||||||||||||||||||||||
Employer/Company contributions 4 | 0.5 | 0.5 | 16 | 20 | ||||||||||||||||||||||||
Benefits paid by Company | (0.3 | ) | (0.3 | ) | — | — | ||||||||||||||||||||||
Benefits paid by VEBA | — | — | (21.5 | ) | (20.8 | ) | ||||||||||||||||||||||
Reimbursement from retiree drug subsidy2 | — | — | 2.3 | 2.9 | ||||||||||||||||||||||||
FMV of plan assets at end of year | 6.2 | 5.7 | 780.7 | 744.7 | ||||||||||||||||||||||||
Net Funded Status 3 | $ | (0.4 | ) | $ | (1.3 | ) | $ | 406 | $ | 360.6 | ||||||||||||||||||
_____________________________ | ||||||||||||||||||||||||||||
1 | The actuarial gain relating to the VEBA plans in 2013 was primarily comprised of (i) a gain of $54.9 due to projected lower drug claim cost in the future because of lower than expected drug claim costs in 2013 in the Union VEBA, (ii) a gain of $30.5 due to a decrease in discount rates used to determine benefit obligations for both VEBAs, (iii) a gain of $8.0 primarily due to a higher than expected mortality rate in the Union VEBA, partially offset by (iv) a loss of $63.8 due to the addition of a new healthcare premium reimbursement benefit starting in 2014 in the Union VEBA, (v) a loss of $20.8 resulting from an increase in the existing benefits reimbursement rates starting in 2014 for plan participants in both VEBAs, and (vi) a loss of $2.7 primarily due to an increase in administrative cost in the Union VEBA. | |||||||||||||||||||||||||||
The actuarial gain relating to the VEBA plans in 2012 was primarily comprised of (i) a gain of $42.2 due to lower than expected prescription drug claim cost and a change in retiree drug subsidy assumption in 2012 in the Union VEBA, (ii) a gain of $16.2 due to changes in census data for both VEBA plans, (iii) a gain of $9.6 relating to a change in the participant marital status assumption in the Union VEBA and (iv) a gain of $11.0 relating to a change in the assumption for annual benefit utilization per participant in the Salaried VEBA, partially offset by a loss of $9.7 due to a decrease in discount rates used to determine benefit obligations for both VEBA plans. | ||||||||||||||||||||||||||||
2 | The Union VEBA is eligible for the retiree drug subsidy of the Medicare Modernization Act that went into effect January 1, 2006 equal to 28% of allowable drug costs. As a result, the Company has measured the Union VEBA’s obligations and costs to take into account this subsidy. | |||||||||||||||||||||||||||
3 | Prepaid benefit of $406.0 relating to the VEBAs at December 31, 2013 was presented as Net asset in respect of VEBAs on the Consolidated Balance Sheet. With respect to the Prepaid benefit of $360.6 relating to the VEBAs at December 31, 2012, $365.9 was included in Net asset in respect of VEBA and $5.3 was included in Net liability in respect of VEBA on the Consolidated Balance Sheets. | |||||||||||||||||||||||||||
4 | The Company accrued a liability for a variable cash contribution of $16.0 to the VEBAs with respect to calendar year 2013, which will be paid in the first quarter of 2014. The Company accrued a liability for a variable cash contribution of $20.0 to the VEBAs with respect to calendar year 2012, which was paid in the first quarter of 2013. | |||||||||||||||||||||||||||
Schedule of Net Funded Status | ' | |||||||||||||||||||||||||||
The following table presents the net assets of each VEBA as of December 31, 2013 and December 31, 2012 (such information is also included in the tables required under GAAP above which roll forward the assets and obligations): | ||||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||||
Union VEBA | Salaried VEBA | Total | Union VEBA | Salaried VEBA | Total | |||||||||||||||||||||||
Accumulated plan benefit obligation | $ | (312.7 | ) | $ | (62.0 | ) | $ | (374.7 | ) | $ | (319.4 | ) | $ | (64.7 | ) | $ | (384.1 | ) | ||||||||||
Plan assets | 717.5 | 63.2 | 780.7 | 685.3 | 59.4 | 744.7 | ||||||||||||||||||||||
Net Funded Status | $ | 404.8 | $ | 1.2 | $ | 406 | $ | 365.9 | $ | (5.3 | ) | $ | 360.6 | |||||||||||||||
Schedule of Expected Benefit Payments | ' | |||||||||||||||||||||||||||
As of December 31, 2013, the net benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter are as follows: | ||||||||||||||||||||||||||||
Benefit Payments Due by Period | ||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019-2023 | |||||||||||||||||||||||
Canadian pension plan benefit payments | $ | 0.2 | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 0.3 | $ | 2 | ||||||||||||||||
VEBA benefit payments1 | 30.5 | 30.5 | 30.3 | 30.1 | 29.8 | 142.5 | ||||||||||||||||||||||
Anticipated retiree drug subsidy1 | (3.1 | ) | (3.3 | ) | (3.4 | ) | (3.5 | ) | (3.5 | ) | (18.6 | ) | ||||||||||||||||
Total net benefits | $ | 27.6 | $ | 27.5 | $ | 27.2 | $ | 26.9 | $ | 26.6 | $ | 125.9 | ||||||||||||||||
__________________________________ | ||||||||||||||||||||||||||||
1 Such amounts were obtained from the VEBAs. The Company's only financial obligations to the VEBAs are to pay the variable contributions, which may not exceed $20.0 annually, and certain administrative fees. | ||||||||||||||||||||||||||||
Schedule of Net Periodic Benefit Cost Not yet Recognized | ' | |||||||||||||||||||||||||||
The amount of loss which is recognized in the Consolidated Balance Sheets (in Accumulated other comprehensive income (loss)) associated with the Company’s Canadian defined benefit pension plan and the VEBAs (before tax) that have not yet been reflected in net periodic benefit cost as of December 31, 2013 and December 31, 2012 were as follows: | ||||||||||||||||||||||||||||
Canadian Pension Benefits | VEBA Benefits | |||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Accumulated net actuarial losses | $ | (1.8 | ) | $ | (2.8 | ) | $ | (0.5 | ) | $ | (3.2 | ) | ||||||||||||||||
Transition assets | 0.2 | 0.3 | — | — | ||||||||||||||||||||||||
Prior service cost | — | — | (32.7 | ) | (36.9 | ) | ||||||||||||||||||||||
Loss recognized in Accumulated other comprehensive (loss) | $ | (1.6 | ) | $ | (2.5 | ) | $ | (33.2 | ) | $ | (40.1 | ) | ||||||||||||||||
Schedule of Net Periodic Benefit Costs (Income) | ' | |||||||||||||||||||||||||||
The following table presents the components of net periodic benefit cost (income) for 2013, 2012 and 2011: | ||||||||||||||||||||||||||||
Canadian Pension Benefits | VEBA Benefits | |||||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Service cost | $ | 0.3 | $ | 0.2 | $ | 0.2 | $ | 2.5 | $ | 3.4 | $ | 2.2 | ||||||||||||||||
Interest cost | 0.3 | 0.3 | 0.3 | 14.6 | 17.9 | 17.4 | ||||||||||||||||||||||
Expected return on plan assets | (0.3 | ) | (0.2 | ) | (0.3 | ) | (45.1 | ) | (40.4 | ) | (30.4 | ) | ||||||||||||||||
Amortization of prior service cost1 | — | — | — | 4.2 | 4.2 | 4.2 | ||||||||||||||||||||||
Amortization of net actuarial loss | 0.2 | 0.1 | 0.1 | 1.3 | 3 | 0.6 | ||||||||||||||||||||||
Net periodic benefit costs (income) | $ | 0.5 | $ | 0.4 | $ | 0.3 | $ | (22.5 | ) | $ | (11.9 | ) | $ | (6.0 | ) | |||||||||||||
__________________________ | ||||||||||||||||||||||||||||
1 | The Company amortizes prior service cost on a straight-line basis over the average remaining years of service to full eligibility for benefits of the active plan participants. | |||||||||||||||||||||||||||
Schedule of Income (Charges) Related to All Benefit Plans | ' | |||||||||||||||||||||||||||
The following tables present the total (income) charges related to all benefit plans for 2013, 2012 and 2011: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Canadian pension plan | $ | 0.5 | $ | 0.4 | $ | 0.3 | ||||||||||||||||||||||
VEBAs | (22.5 | ) | (11.9 | ) | (6.0 | ) | ||||||||||||||||||||||
Deferred compensation plan | 1.2 | 0.9 | 0.2 | |||||||||||||||||||||||||
Defined contribution plans | 7.9 | 7.6 | 7.1 | |||||||||||||||||||||||||
Total | $ | (12.9 | ) | $ | (3.0 | ) | $ | 1.6 | ||||||||||||||||||||
Allocation of Income (Charges) Relating to Retirement Plans | ' | |||||||||||||||||||||||||||
The following tables present the allocation of these (income) charges: | ||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||||
Fabricated Products | $ | 8 | $ | 7.4 | $ | 6.4 | ||||||||||||||||||||||
All Other | (20.9 | ) | (10.4 | ) | (4.8 | ) | ||||||||||||||||||||||
Total | $ | (12.9 | ) | $ | (3.0 | ) | $ | 1.6 | ||||||||||||||||||||
Multiemployer_Pension_Plans_Ta
Multiemployer Pension Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||
Multiemployer Pension Plans [Abstract] | ' | ||||||||||||||||||||||||||
Multiemployer Pension Plan Description and Contributions | ' | ||||||||||||||||||||||||||
The Company's participation in multiemployer pension plans for the annual period ended December 31, 2013 is outlined in the table below. | |||||||||||||||||||||||||||
Pension Fund | Employer Identification Number | Pension Protection Act Zone Status1 | FIP/RP Status Pending/Implemented in 20132 | Contributions of the Company | Surcharge Imposed in 2013 | Expiration Date of Collective-Bargaining Agreement | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||||
Steelworkers Pension Trust (USW)3 | 236648508 | Green | Green | No | $ | 2.9 | $ | 3 | $ | 2.6 | No | Mar-14 | - | Nov-17 | |||||||||||||
Other Funds4 | 0.9 | 0.9 | 1 | ||||||||||||||||||||||||
$ | 3.8 | $ | 3.9 | $ | 3.6 | ||||||||||||||||||||||
________________ | |||||||||||||||||||||||||||
1 | The most recent Pension Protection Act zone status available in 2013 and 2012 for the Steelworkers Pension Trust is for the plan's year-end at December 31, 2012 and December 31, 2011, respectively. The zone status is based on information that the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the green zone are at least 80 percent funded. | ||||||||||||||||||||||||||
2 | The “FIP/RP Status Pending/Implemented” column indicates if a Financial Improvement Plan (FIP) or a Rehabilitation Plan (RP) is either pending or has been implemented for the plan under the Pension Protection Act. | ||||||||||||||||||||||||||
3 | The Company is party to three USW collective-bargaining agreements that require contributions to the Steelworkers Pension Trust. Current USW collective bargaining agreements covering employees at the Newark, Ohio and Spokane (Trentwood), Washington facilities covers 89% of the Company's USW-represented employees and expires in September 2015. The Company's monthly contributions per hour worked by each bargaining unit employee at the Newark, Ohio and Spokane (Trentwood), Washington facilities are (in whole dollars) $1.25 and will increase to (in whole dollars) $1.50 in July 2015. The union contracts covering employees at the Richmond (Bellwood), Virginia facility and Florence, Alabama facility cover 7% and 4% of the Company's USW-represented employees, respectively, and expire in November 2017 and March 2014, respectively. | ||||||||||||||||||||||||||
4 | Other Funds consists of plans that are not individually significant. |
Employee_Incentive_Plans_Table
Employee Incentive Plans (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||||||
Compensation expense relating to short term incentive plans | ' | ||||||||||||||||||||
Total costs relating to STI Plans were recorded as follows, for each period presented: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | $ | 4.6 | $ | 4.3 | $ | 3.2 | |||||||||||||||
Selling, administrative, research and development, and general | 11.1 | 10.1 | 5.2 | ||||||||||||||||||
Total costs recorded in connection with STI Plans | $ | 15.7 | $ | 14.4 | $ | 8.4 | |||||||||||||||
The following table presents the allocation of the charges detailed above, by segment: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Fabricated Products | $ | 11.2 | $ | 9.9 | $ | 5.9 | |||||||||||||||
All Other | 4.5 | 4.5 | 2.5 | ||||||||||||||||||
Total costs recorded in connection with STI Plans | $ | 15.7 | $ | 14.4 | $ | 8.4 | |||||||||||||||
Non-cash compensation expense | ' | ||||||||||||||||||||
Recorded non-cash compensation expense by type of award under LTI programs were as follows, for each period presented: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Service-based non-vested common shares and restricted stock units | $ | 4.3 | $ | 3.8 | $ | 4.1 | |||||||||||||||
Performance shares | 2.3 | 1.8 | 1.1 | ||||||||||||||||||
Total non-cash compensation expense | $ | 6.6 | $ | 5.6 | $ | 5.2 | |||||||||||||||
The following table presents the allocation of the charges detailed above, by segment: | |||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Fabricated Products | $ | 2.2 | $ | 1.7 | $ | 1.5 | |||||||||||||||
All Other | 4.4 | 3.9 | 3.7 | ||||||||||||||||||
Total non-cash compensation expense | $ | 6.6 | $ | 5.6 | $ | 5.2 | |||||||||||||||
Unrecognized gross compensation cost data | ' | ||||||||||||||||||||
The following table presents unrecognized gross compensation cost data, by type of award: | |||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||
Unrecognized gross compensation costs, by award type | Expected period (in years) over which the remaining gross compensation costs will be recognized, by award type | ||||||||||||||||||||
Service-based non-vested common shares and restricted stock units | $ | 3.8 | 1.5 | ||||||||||||||||||
Performance shares | $ | 4.8 | 1.9 | ||||||||||||||||||
Summary of activity of non-vested common shares, restricted stock units, and performance shares | ' | ||||||||||||||||||||
A summary of the activity with respect to non-vested common shares, restricted stock units and performance shares for the year ended December 31, 2013 is as follows: | |||||||||||||||||||||
Non-Vested | Restricted | Performance | |||||||||||||||||||
Common Shares | Stock Units | Shares | |||||||||||||||||||
Shares | Weighted-Average | Units | Weighted-Average | Shares | Weighted-Average | ||||||||||||||||
Grant-Date Fair | Grant-Date Fair | Grant-Date Fair | |||||||||||||||||||
Value per Share | Value per Unit | Value per Share | |||||||||||||||||||
Outstanding at December 31, 2012 | 158,684 | $ | 42.47 | 5,183 | $ | 43.99 | 583,950 | $ | 41.78 | ||||||||||||
Granted | 76,336 | 58.65 | 2,600 | 57.7 | 175,317 | 57.75 | |||||||||||||||
Vested | (90,233 | ) | 42.31 | (2,311 | ) | 42.74 | (34,192 | ) | 34.84 | ||||||||||||
Forfeited | (820 | ) | 53 | — | — | — | — | ||||||||||||||
Canceled | — | — | — | — | (162,521 | ) | 34.58 | ||||||||||||||
Outstanding at December 31, 2013 | 143,967 | $ | 51.09 | 5,472 | $ | 51.03 | 562,554 | $ | 49.26 | ||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||||||||||||||||||||
Schedule of future minimum rental payments | ' | ||||||||||||||||||||||||
Minimum rental commitments under operating leases at December 31, 2013 are as follows for years ending December 31: | |||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 and Thereafter | ||||||||||||||||||||
Minimum rental commitments | $ | 4.7 | $ | 4 | $ | 2.9 | $ | 2.1 | $ | 2 | $ | 29.4 | |||||||||||||
Schedule of future purchase obligations | ' | ||||||||||||||||||||||||
Amounts due under purchase obligations as of December 31, 2013 are as follows for years ending December 31: | |||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 and Thereafter | ||||||||||||||||||||
Purchase obligations | $ | 278.5 | $ | 4.9 | $ | 0.4 | $ | 0.4 | $ | 0.4 | $ | 1.9 | |||||||||||||
Environmental accrual rollforward | ' | ||||||||||||||||||||||||
The following table presents the changes in such accruals, which are primarily included in Long-term liabilities. | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Beginning balance | $ | 21.7 | $ | 22 | $ | 20.2 | |||||||||||||||||||
Additional accruals | 4.5 | 1.2 | 3.9 | ||||||||||||||||||||||
Less expenditures | (3.4 | ) | (1.5 | ) | (2.1 | ) | |||||||||||||||||||
Ending balance | $ | 22.8 | $ | 21.7 | $ | 22 | |||||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments and Related Hedging Programs (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||
Summary of realized and unrealized gains and losses | ' | |||||||||||||||||||||||
Realized and unrealized (losses) gains associated with all derivative contracts consisted of the following, for each period presented: | ||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Realized (losses) gains: | ||||||||||||||||||||||||
Aluminum | $ | (5.5 | ) | $ | (9.0 | ) | $ | 9.6 | ||||||||||||||||
Natural Gas | (1.8 | ) | (6.7 | ) | (5.2 | ) | ||||||||||||||||||
Electricity | 0.8 | (3.4 | ) | — | ||||||||||||||||||||
Total realized (losses) gains: | $ | (6.5 | ) | $ | (19.1 | ) | $ | 4.4 | ||||||||||||||||
Unrealized gains (losses): | ||||||||||||||||||||||||
Aluminum | $ | (3.1 | ) | $ | 10.1 | $ | (26.5 | ) | ||||||||||||||||
Natural Gas | 2.6 | 4.3 | (1.6 | ) | ||||||||||||||||||||
Electricity | 1.1 | 0.8 | (1.8 | ) | ||||||||||||||||||||
Foreign Currency | 0.1 | — | — | |||||||||||||||||||||
Call Options relating to the Convertible Notes | 24.2 | 9 | (2.1 | ) | ||||||||||||||||||||
Bifurcated Conversion Feature of the Convertible Notes | (21.0 | ) | (8.2 | ) | 6.1 | |||||||||||||||||||
Total unrealized gains (losses) | $ | 3.9 | $ | 16 | $ | (25.9 | ) | |||||||||||||||||
Summary of material derivative positions | ' | |||||||||||||||||||||||
The following table summarizes the Company's material derivative positions at December 31, 2013: | ||||||||||||||||||||||||
Notional | ||||||||||||||||||||||||
Amount of | ||||||||||||||||||||||||
Contracts | ||||||||||||||||||||||||
Commodity | Maturity Period | (mmlbs) | ||||||||||||||||||||||
Aluminum — | ||||||||||||||||||||||||
Fixed priced purchase contracts | 1/14 through 12/15 | 64.4 | ||||||||||||||||||||||
Midwest premium swap contracts1 | 1/14 through 12/15 | 60.1 | ||||||||||||||||||||||
Notional | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
of Contracts | ||||||||||||||||||||||||
Energy | Maturity Period | (mmbtu) | ||||||||||||||||||||||
Natural gas —2 | ||||||||||||||||||||||||
Fixed priced purchase contracts | 1/14 through 12/16 | 6,240,000 | ||||||||||||||||||||||
Notional | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
of Contracts | ||||||||||||||||||||||||
Electricity | Maturity Period | (Mwh) | ||||||||||||||||||||||
Fixed priced purchase contracts | 1/14 through 12/15 | 394,200 | ||||||||||||||||||||||
Notional Amount of Contracts | ||||||||||||||||||||||||
Currency | Maturity Period | (as shown) | ||||||||||||||||||||||
Euro — | ||||||||||||||||||||||||
Fixed priced purchase contracts | 1/14 through 1/14 | € | 674,483 | |||||||||||||||||||||
GBP — | ||||||||||||||||||||||||
Fixed priced purchase contracts | 1/14 through 5/14 | £ | 44,106 | |||||||||||||||||||||
Notional | ||||||||||||||||||||||||
Amount | ||||||||||||||||||||||||
of Contracts | ||||||||||||||||||||||||
Hedges Relating to the Convertible Notes | Contract Period | (Common Shares) | ||||||||||||||||||||||
Bifurcated Conversion Feature3 | 3/10 through 3/15 | 3,638,303 | ||||||||||||||||||||||
Call Options3 | 3/10 through 3/15 | 3,638,303 | ||||||||||||||||||||||
_________________________ | ||||||||||||||||||||||||
1 | Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on the Company's purchases of primary aluminum. | |||||||||||||||||||||||
2 | As of December 31, 2013, the Company's exposure to fluctuations in natural gas prices had been substantially reduced for approximately 82%, 64% and 6% of the expected natural gas purchases for 2014, 2015 and 2016, respectively. | |||||||||||||||||||||||
3 | The Bifurcated Conversion Feature represents the cash conversion feature of the Convertible Notes. To hedge against the potential cash outflows associated with the Bifurcated Conversion Feature, the Company purchased cash-settled Call Options. The Call Options have an exercise price equal to the conversion price of the Convertible Notes, subject to anti-dilution adjustment provisions substantially similar to the Convertible Notes, which may cause the exercise price to decrease and the notional amount of shares relating thereto to increase. The Call Options will expire upon the maturity of the Convertible Notes. Although the fair value of the Call Options is derived from a notional number of shares of the Company's common stock, the Call Options may only be settled in cash. | |||||||||||||||||||||||
Schedule of Offsetting Derivative Instruments by Counterparty [Table Text Block] | ' | |||||||||||||||||||||||
The following tables present offsetting information regarding the Company's derivatives by type of counterparty as of December 31, 2013: | ||||||||||||||||||||||||
Derivative Assets and Collateral Held by Counterparty | ||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||
Counterparty (with Netting Agreements) | $ | 1 | $ | — | $ | 1 | $ | 0.8 | $ | — | $ | 0.2 | ||||||||||||
Counterparty (without Netting Agreements)1 | 80.4 | — | 80.4 | — | — | 80.4 | ||||||||||||||||||
Counterparty (with partial Netting Agreements) | 0.4 | — | 0.4 | 0.4 | — | — | ||||||||||||||||||
Total | $ | 81.8 | $ | — | $ | 81.8 | $ | 1.2 | $ | — | $ | 80.6 | ||||||||||||
Derivative Liabilities and Collateral Held by Counterparty | ||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||||||
Counterparty (with Netting Agreements) | $ | (1.6 | ) | $ | — | $ | (1.6 | ) | $ | (0.8 | ) | $ | — | $ | (0.8 | ) | ||||||||
Counterparty (without Netting Agreements)1 | (83.2 | ) | — | (83.2 | ) | — | — | (83.2 | ) | |||||||||||||||
Counterparty (with partial Netting Agreements) | (1.3 | ) | — | (1.3 | ) | (0.4 | ) | — | (0.9 | ) | ||||||||||||||
Total | $ | (86.1 | ) | $ | — | $ | (86.1 | ) | $ | (1.2 | ) | $ | — | $ | (84.9 | ) | ||||||||
_________________ | ||||||||||||||||||||||||
1 | Such amounts include the fair value of the Bifurcated Conversion Feature and Call Options at December 31, 2013 (see Note 12). | |||||||||||||||||||||||
The following tables present offsetting information regarding the Company’s derivatives by type of counterparty as of December 31, 2012: | ||||||||||||||||||||||||
Derivative Assets and Collateral Held by Counterparty | ||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Assets Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Received | Net Amount | |||||||||||||||||||
Counterparty (with Netting Agreements) | $ | 2.3 | $ | — | $ | 2.3 | $ | 1 | $ | — | $ | 1.3 | ||||||||||||
Counterparty (without Netting Agreements)1 | 55.9 | — | 55.9 | — | — | 55.9 | ||||||||||||||||||
Counterparty (with partial Netting Agreements) | 0.3 | — | 0.3 | 0.2 | — | 0.1 | ||||||||||||||||||
Total | $ | 58.5 | $ | — | $ | 58.5 | $ | 1.2 | $ | — | $ | 57.3 | ||||||||||||
Derivative Liabilities and Collateral Held by Counterparty | ||||||||||||||||||||||||
Gross Amounts Not Offset in the Consolidated Balance Sheets | ||||||||||||||||||||||||
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Consolidated Balance Sheets | Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | Financial Instruments | Cash Collateral Pledged | Net Amount | |||||||||||||||||||
Counterparty (with Netting Agreements) | $ | (1.7 | ) | $ | — | $ | (1.7 | ) | $ | (1.0 | ) | $ | — | $ | (0.7 | ) | ||||||||
Counterparty (without Netting Agreements)1 | (63.8 | ) | — | (63.8 | ) | — | — | (63.8 | ) | |||||||||||||||
Counterparty (with partial Netting Agreements) | (1.2 | ) | — | (1.2 | ) | (0.2 | ) | — | (1.0 | ) | ||||||||||||||
Total | $ | (66.7 | ) | $ | — | $ | (66.7 | ) | $ | (1.2 | ) | $ | — | $ | (65.5 | ) | ||||||||
_________________ | ||||||||||||||||||||||||
1 | Such amounts include the fair value of the Bifurcated Conversion Feature and Call Options at December 31, 2012 (see Note 12). |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||
Assumptions used in determining fair value of the Call Option | ' | |||||||||||||||
The inputs to the model at December 31, 2013 were as follows: | ||||||||||||||||
Stock price at December 31, 2013 | $ | 70.24 | ||||||||||||||
Quarterly dividend yield (per share)1 | $ | 0.24 | ||||||||||||||
Risk-free interest rate2 | 0.19 | % | ||||||||||||||
Credit spread (basis points)3 | 171 | |||||||||||||||
Expected volatility rate4 | 17 | % | ||||||||||||||
____________ | ||||||||||||||||
1 | Quarterly dividends during 2013 were $0.30 per share, but the model assumes a discrete $0.24 per share quarterly dividend as was paid at the inception of the Call Options. Quarterly dividends in excess of $0.24 per share do not affect the Call Options' value due to anti-dilution adjustments. | |||||||||||||||
2 | The risk-free rate was based on the 1.25-year Constant Maturity Treasury rate on December 31, 2013. | |||||||||||||||
3 | The credit spread is based on the Company's long-term credit rating of BB- issued by Standard & Poor’s and a senior | |||||||||||||||
unsecured credit rating of Ba3 issued by Moody’s. | ||||||||||||||||
4 | The volatility rate was based on both observed volatility, which is based on the Company’s historical stock price, and | |||||||||||||||
implied volatility from the Company’s traded options. Such volatility was further adjusted to take into consideration | ||||||||||||||||
market participant risk tolerance. | ||||||||||||||||
Summary of assets and liabilities measured and recognized at fair value on a recurring basis | ' | |||||||||||||||
The following tables present the Company's financial instruments, classified under the appropriate level of the fair value hierarchy, as of December 31, 2013 and December 31, 2012: | ||||||||||||||||
2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
FINANCIAL ASSETS: | ||||||||||||||||
Derivative Instruments | ||||||||||||||||
Aluminum - | ||||||||||||||||
Fixed priced purchase contracts | $ | — | $ | 0.1 | $ | — | $ | 0.1 | ||||||||
Midwest premium swap contracts | — | — | 1.1 | 1.1 | ||||||||||||
Natural Gas - | ||||||||||||||||
Fixed priced purchase contracts | — | 0.5 | — | 0.5 | ||||||||||||
Electricity - | ||||||||||||||||
Fixed priced purchase contracts | — | 0.5 | — | 0.5 | ||||||||||||
Foreign Currency - | ||||||||||||||||
Euro | — | 0.1 | — | 0.1 | ||||||||||||
Hedges Relating to the Convertible Notes - | ||||||||||||||||
Call Options | — | 79.5 | — | 79.5 | ||||||||||||
VEBAs and Canadian Pension Plan | ||||||||||||||||
Fixed income investment funds in registered investment companies1 | 57 | 318 | — | 375 | ||||||||||||
Mortgage backed securities | — | 25.9 | — | 25.9 | ||||||||||||
Corporate debt securities2 | — | 78.2 | — | 78.2 | ||||||||||||
Equity investment funds in registered investment companies3 | — | 175.3 | — | 175.3 | ||||||||||||
United States Treasuries | — | 43.3 | — | 43.3 | ||||||||||||
Municipal debt securities | — | 1.6 | — | 1.6 | ||||||||||||
Cash and money market investments4 | 36.8 | — | — | 36.8 | ||||||||||||
Asset backed securities | — | 8.5 | — | 8.5 | ||||||||||||
Diversified investment funds in registered investment companies5 | 20.1 | 6.2 | — | 26.3 | ||||||||||||
All Other Financial Assets | ||||||||||||||||
Cash and cash equivalents6 | 57.7 | 111.8 | — | 169.5 | ||||||||||||
Short-term investments | — | 129.5 | — | 129.5 | ||||||||||||
Deferred compensation plan asset | — | 6.5 | — | 6.5 | ||||||||||||
Total | $ | 171.6 | $ | 985.5 | $ | 1.1 | $ | 1,158.20 | ||||||||
FINANCIAL LIABILITIES: | ||||||||||||||||
Derivative Instruments | ||||||||||||||||
Aluminum - | ||||||||||||||||
Fixed priced purchase contracts | $ | — | $ | (1.8 | ) | $ | — | $ | (1.8 | ) | ||||||
Natural Gas - | ||||||||||||||||
Fixed priced purchase contracts | — | (0.8 | ) | — | (0.8 | ) | ||||||||||
Electricity - | ||||||||||||||||
Fixed priced purchase contracts | — | (0.4 | ) | — | (0.4 | ) | ||||||||||
Hedges Relating to the Convertible Notes - | ||||||||||||||||
Bifurcated Conversion Feature | — | (83.1 | ) | — | (83.1 | ) | ||||||||||
All Other Financial Liabilities | ||||||||||||||||
Senior Notes | (255.4 | ) | — | — | (255.4 | ) | ||||||||||
Convertible Notes | (260.0 | ) | — | — | (260.0 | ) | ||||||||||
Total | $ | (515.4 | ) | $ | (86.1 | ) | $ | — | $ | (601.5 | ) | |||||
2012 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
FINANCIAL ASSETS: | ||||||||||||||||
Derivative Instruments | ||||||||||||||||
Aluminum - | ||||||||||||||||
Fixed priced purchase contracts | $ | — | $ | 2.6 | $ | — | $ | 2.6 | ||||||||
Midwest premium swap contracts | — | — | 0.4 | 0.4 | ||||||||||||
Natural Gas - | ||||||||||||||||
Fixed priced purchase contracts | — | 0.2 | — | 0.2 | ||||||||||||
Hedges Relating to the Convertible Notes - | ||||||||||||||||
Call Options | — | 55.3 | — | 55.3 | ||||||||||||
VEBAs and Canadian Pension Plan | ||||||||||||||||
Fixed income investment funds in registered investment companies1 | 192.3 | 235.4 | — | 427.7 | ||||||||||||
Mortgage backed securities | — | 31.5 | — | 31.5 | ||||||||||||
Corporate debt securities2 | — | 40.4 | — | 40.4 | ||||||||||||
Equity investment funds in registered investment companies3 | 114.1 | 58.8 | — | 172.9 | ||||||||||||
United States Treasuries | — | 13.6 | — | 13.6 | ||||||||||||
Municipal debt securities | — | 3.9 | — | 3.9 | ||||||||||||
Cash and money market investments4 | 16.4 | — | — | 16.4 | ||||||||||||
Asset backed securities | — | 3.2 | — | 3.2 | ||||||||||||
Diversified investment funds in registered investment companies5 | 6.4 | 5.7 | — | 12.1 | ||||||||||||
Equity securities | 8.7 | — | — | 8.7 | ||||||||||||
All Other Financial Assets | ||||||||||||||||
Cash and cash equivalents6 | 107.9 | 165.5 | — | 273.4 | ||||||||||||
Short-term investments | — | 85 | — | 85 | ||||||||||||
Deferred compensation plan asset | — | 5.6 | — | 5.6 | ||||||||||||
Total | $ | 445.8 | $ | 706.7 | $ | 0.4 | $ | 1,152.90 | ||||||||
FINANCIAL LIABILITIES: | ||||||||||||||||
Derivative Instruments | ||||||||||||||||
Aluminum - | ||||||||||||||||
Fixed priced purchase contracts | $ | — | $ | (0.5 | ) | $ | — | $ | (0.5 | ) | ||||||
Natural Gas - | ||||||||||||||||
Put option sales contracts | — | (0.5 | ) | — | (0.5 | ) | ||||||||||
Fixed priced purchase contracts | — | (2.6 | ) | — | (2.6 | ) | ||||||||||
Electricity - | ||||||||||||||||
Fixed priced purchase contracts | — | (1.0 | ) | — | (1.0 | ) | ||||||||||
Hedges Relating to the Convertible Notes - | ||||||||||||||||
Bifurcated Conversion Feature | — | (62.1 | ) | — | (62.1 | ) | ||||||||||
All Other Financial Liabilities | ||||||||||||||||
Senior Notes | (250.0 | ) | — | — | (250.0 | ) | ||||||||||
Convertible Notes | (240.1 | ) | — | — | (240.1 | ) | ||||||||||
Total | $ | (490.1 | ) | $ | (66.7 | ) | $ | — | $ | (556.8 | ) | |||||
_________________________ | ||||||||||||||||
1. | This category represents investments in various fixed income funds with multiple registered investment companies. Such funds invest in diversified portfolios, including (i) marketable fixed income securities such as (a) U.S. Treasury and other government and agency securities, (b) municipal bonds, (c) mortgage-backed securities, (d) asset-backed securities, (e) corporate bonds, notes and debentures in various sectors, (f) preferred and common stock, (g) investments in affiliated and other investment companies, (h) short-term investments and other net assets and (i) repurchase agreements and reverse repurchase agreements, (ii) other commingled investments, (iii) investment grade debt, (iv) fixed income instruments which may be represented by options, future contracts or swap agreements, and (v) cash and cash equivalents. The fair value of assets in this category is estimated using the net asset value per share of the investments. | |||||||||||||||
2. | This category represents investments in fixed income corporate securities in various sectors. Investments in the industrial, financial and utilities sectors in 2013 represented approximately 56%, 35% and 9% of the total portfolio in this category, respectively. Investments in the industrial, financial and utilities sectors in 2012 represented approximately 61%, 33% and 6% of the total portfolio in this category, respectively. The fair value of assets in this category is estimated using the net asset value per share of the investments. | |||||||||||||||
3. | This category represents investments in equity funds that invest in portfolios comprised of (i) equity and equity-related securities of U.S. and non-U.S. issuers across all market capitalization, (ii) common stock in investment trust funds, and (iii) other short-term investments. The fair value of assets in this category is determined by using quoted prices in active markets for investments considered Level 1 inputs and estimated using the net asset value per share of the investments for investments considered Level 2 inputs. | |||||||||||||||
4. | This category represents cash and investments in various money market funds. | |||||||||||||||
5. | The plan assets are invested in investment funds that hold a diversified portfolio of (i) U.S and international debt and equity securities, (ii) fixed income securities such as corporate bonds and government bonds, (iii) mortgage-related securities, and (iv) cash and cash equivalents. The fair value of assets in this category is estimated using the net asset value per share of the investments. | |||||||||||||||
6. | See Note 2 for components of cash and cash equivalents. | |||||||||||||||
Reconciliation of activity for financial instruments classified as Level 3 | ' | |||||||||||||||
The following table presents a reconciliation of activity for such derivative contracts on a net basis: | ||||||||||||||||
Level 3 | ||||||||||||||||
Balance at December 31, 2012 | $ | 0.4 | ||||||||||||||
Total realized/unrealized gains included in: | ||||||||||||||||
Cost of goods sold excluding depreciation and amortization and Unrealized (gains) losses on derivative instruments | (0.1 | ) | ||||||||||||||
Transactions involving Level 3 derivative contracts: | ||||||||||||||||
Purchases | 1 | |||||||||||||||
Sales | — | |||||||||||||||
Issuances | — | |||||||||||||||
Settlements | (0.2 | ) | ||||||||||||||
Transactions involving Level 3 derivatives - net | 0.8 | |||||||||||||||
Transfers in and (or) out of Level 3 valuation hierarchy | — | |||||||||||||||
Balance at December 31, 2013 | $ | 1.1 | ||||||||||||||
Total gains included in Unrealized (gains) losses on derivative instruments, attributable to the change in unrealized gains/losses relating to derivative contracts held at December 31, 2013: | $ | 1.1 | ||||||||||||||
Summary of activities relating to the Company's CARO liabilities | ' | |||||||||||||||
The following table summarizes the activity relating to the Company's CARO liabilities: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Beginning balance | $ | 4.1 | $ | 4 | $ | 3.8 | ||||||||||
Liabilities settled during the period | (0.2 | ) | (0.5 | ) | (0.1 | ) | ||||||||||
Accretion expense | 0.4 | 0.3 | 0.3 | |||||||||||||
Adjustment to accretion expense due to revisions to estimated cash flow and timing of expenditure1 | 0.1 | 0.3 | — | |||||||||||||
Ending balance | $ | 4.4 | $ | 4.1 | $ | 4 | ||||||||||
__________________________________________ | ||||||||||||||||
1 | The adjustment in 2013 did not have a material impact on the basic and diluted earnings per share for 2013. The adjustment in 2012 decreased both basic and diluted earnings per share for 2012 by approximately $0.02 per share. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Calculation of basic and diluted earnings per share | ' | ||||||||||||
Basic and diluted earnings per share for 2013, 2012 and 2011 were calculated as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Numerator: | |||||||||||||
Net income | $ | 104.8 | $ | 85.8 | $ | 25.1 | |||||||
Denominator - Weighted-average common shares outstanding (in thousands): | |||||||||||||
Basic1 | 18,827 | 19,115 | 18,979 | ||||||||||
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares | 178 | 163 | — | ||||||||||
Add: dilutive effect of warrants | 241 | — | — | ||||||||||
Diluted2 | 19,246 | 19,278 | 18,979 | ||||||||||
Earnings per common share, Basic: | |||||||||||||
Net income per share | $ | 5.56 | $ | 4.49 | $ | 1.32 | |||||||
Earnings per common share, Diluted: | |||||||||||||
Net income per share2 | $ | 5.44 | $ | 4.45 | $ | 1.32 | |||||||
_____________ | |||||||||||||
1 | The basic weighted-average number of common shares outstanding during the period excludes unvested share-based incentive awards. | ||||||||||||
2 | The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2013 and 2012 were calculated using the treasury method. The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2011 were calculated using the two-class method (see Note 1). |
Segment_and_Geographical_Area_1
Segment and Geographical Area Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||
Summary of financial information by operating segment | ' | ||||||||||||
The following tables provide financial information by reporting segment for each period or as of each period end, as applicable: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net Sales: | |||||||||||||
Fabricated Products | $ | 1,297.50 | $ | 1,360.10 | $ | 1,301.30 | |||||||
Operating Income (Loss): | |||||||||||||
Fabricated Products 1,2 | $ | 188.6 | $ | 190.8 | $ | 83.6 | |||||||
All Other3 | (15.3 | ) | (24.9 | ) | (28.6 | ) | |||||||
Total operating income | $ | 173.3 | $ | 165.9 | $ | 55 | |||||||
Interest expense | (35.7 | ) | (29.1 | ) | (18.0 | ) | |||||||
Other income, net | 5.6 | 2.8 | 4.3 | ||||||||||
Income before income taxes | $ | 143.2 | $ | 139.6 | $ | 41.3 | |||||||
Depreciation and Amortization: | |||||||||||||
Fabricated Products | $ | 27.6 | $ | 26 | $ | 24.8 | |||||||
All Other | 0.5 | 0.5 | 0.4 | ||||||||||
Total depreciation and amortization | $ | 28.1 | $ | 26.5 | $ | 25.2 | |||||||
Capital expenditures: | |||||||||||||
Fabricated Products | $ | 69.8 | $ | 43.8 | $ | 32.1 | |||||||
All Other | 0.6 | 0.3 | 0.4 | ||||||||||
Total capital expenditures | $ | 70.4 | $ | 44.1 | $ | 32.5 | |||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Assets: | |||||||||||||
Fabricated Products | $ | 852.5 | $ | 771.2 | $ | 637 | |||||||
All Other4 | 918.4 | 981.3 | 683.6 | ||||||||||
Total assets | $ | 1,770.90 | $ | 1,752.50 | $ | 1,320.60 | |||||||
__________________ | |||||||||||||
1 | Operating results in the Fabricated Products segment for 2013, 2012 and 2011 included non-cash LIFO inventory benefits of $24.1, $4.9 and $7.1, respectively. Also included in the Fabricated Products segment operating results for 2013, 2012 and 2011 were $4.0, $1.1 and $1.7, respectively, of environmental expense. Fabricated Products segment operating results for 2012 also included $4.4 of asset impairment charge relating to certain property, plant and equipment. | ||||||||||||
2 | Fabricated Products segment results for 2013, 2012 and 2011 include non-cash mark-to-market gains (losses) on primary aluminum, natural gas, electricity and foreign currency hedging activities totaling $0.7, $15.2 and $(29.9), respectively. For further discussion regarding mark-to-market matters, see Note 11. | ||||||||||||
3 | Operating results in All Other represent operating expenses in the Corporate and Other business unit. Operating results of All Other include VEBA net periodic pension benefit income of $22.5, $11.9 and $6.0 for 2013, 2012 and 2011, respectively. | ||||||||||||
4 | Assets in All Other represent primarily all of the Company’s cash and cash equivalents, short-term investments, financial derivative assets, net assets in respect of VEBA(s) and net deferred income tax assets. | ||||||||||||
Schedule of net sales by end market segment applications | ' | ||||||||||||
Net sales by product categories, which are based on end market applications, for the Fabricated Products segment are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net Sales: | |||||||||||||
Aero/HS Products | $ | 677 | $ | 695.1 | $ | 596.3 | |||||||
GE Products | 411 | 441.4 | 447 | ||||||||||
Automotive Extrusions | 129.5 | 125.5 | 126.9 | ||||||||||
Other Products | 80 | 98.1 | 131.1 | ||||||||||
Total Net Sales | $ | 1,297.50 | $ | 1,360.10 | $ | 1,301.30 | |||||||
Schedule of net sales, income taxes paid, and long-lived assets, by geographical area | ' | ||||||||||||
Geographic information for net sales, based on country of origin, income taxes paid, and long-lived assets are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net sales to unaffiliated customers: | |||||||||||||
Fabricated Products — | |||||||||||||
United States | $ | 1,204.70 | $ | 1,256.50 | $ | 1,195.10 | |||||||
Canada | 92.8 | 103.6 | 106.2 | ||||||||||
Total net sales | $ | 1,297.50 | $ | 1,360.10 | $ | 1,301.30 | |||||||
Income taxes paid: | |||||||||||||
Fabricated Products — | |||||||||||||
United States | $ | 1.2 | $ | 0.5 | $ | 1.7 | |||||||
Canada | 0.9 | 1.3 | 1.8 | ||||||||||
Total income taxes paid | $ | 2.1 | $ | 1.8 | $ | 3.5 | |||||||
December 31, 2013 | December 31, 2012 | December 31, 2011 | |||||||||||
Long-lived assets:1 | |||||||||||||
Fabricated Products — | |||||||||||||
United States | $ | 409.5 | $ | 367.5 | $ | 351.4 | |||||||
Canada | 15.3 | 12.5 | 11.9 | ||||||||||
Total Fabricated Products long-lived assets | 424.8 | 380 | 363.3 | ||||||||||
All Other — | |||||||||||||
United States | 4.5 | 4.3 | 4.5 | ||||||||||
Total All Other long-lived assets | 4.5 | 4.3 | 4.5 | ||||||||||
Total long-lived assets | $ | 429.3 | $ | 384.3 | $ | 367.8 | |||||||
__________________ | |||||||||||||
1 Long-lived assets represent Property, plant and equipment, net. | |||||||||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | ||||||||||||
Information for sales to the Company's largest Fabricated Products customer, export sales, and primary aluminum supply from the Company's major suppliers are as follows: | |||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Percentage of Total Revenue: | |||||||||||||
Sales to largest Fabricated Products customer | 23 | % | 22 | % | 21 | % | |||||||
Export sales | 17 | % | 18 | % | 14 | % | |||||||
Percentage of Total Annual Primary Aluminum Supply | |||||||||||||
Supply from the Company's top five major suppliers | 86 | % | 78 | % | 83 | % | |||||||
Supply from the Company's largest supplier | 25 | % | 29 | % | 32 | % | |||||||
Supply from the Company's second and third largest suppliers | 35 | % | 31 | % | 34 | % |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||||||
Supplemental Cash Flow Information | ' | ||||||||||||
Year Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Supplemental disclosure of cash flow information: | |||||||||||||
Interest paid | $ | 28.1 | $ | 19.4 | $ | 10.4 | |||||||
Income taxes paid | $ | 2.1 | $ | 1.8 | $ | 3.5 | |||||||
Supplemental disclosure of non-cash transactions: | |||||||||||||
Stock repurchases not yet settled (accrued in accounts payable) | $ | 1 | $ | — | $ | — | |||||||
Non-cash capital expenditures | $ | 4.4 | $ | 3.4 | $ | 1.8 | |||||||
Capital leases acquired | $ | 0.2 | $ | 0.1 | $ | 0.3 | |||||||
Other_Income_Net_Tables
Other Income, Net (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other Income (Expense), Net | ' | |||||||||||
Other income, net consisted of the following, for each period presented: | ||||||||||||
Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Interest income | $ | 0.4 | $ | 0.4 | $ | 0.2 | ||||||
Unrealized gains on financial derivatives1 | 3.2 | 0.8 | 4 | |||||||||
Realized gains on investments | 1.4 | 0.5 | 0.1 | |||||||||
Distribution from bankruptcy trust2 | 0.6 | — | — | |||||||||
Insurance settlement | — | 0.4 | — | |||||||||
All other, net | — | 0.7 | — | |||||||||
Other income, net | $ | 5.6 | $ | 2.8 | $ | 4.3 | ||||||
____________ | ||||||||||||
1 | See “Derivative Financial Instruments” in Note 1 for a discussion of accounting policy for such instruments. | |||||||||||
2 | See Note 13 for discussion of the distribution. |
Other_Comprehensive_Income_Los1
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Statement of Comprehensive Income [Abstract] | ' | |||||||||||
Schedule of Other Comprehensive Income (Loss) | ' | |||||||||||
The following table presents the tax effect allocated to each component of other comprehensive income (loss) for each period presented: | ||||||||||||
Before-Tax | Income Tax | Net-of-Tax | ||||||||||
Amount | (Expense) Benefit | Amount | ||||||||||
2013 | ||||||||||||
Defined benefit pension plan and VEBAs: | ||||||||||||
Net actuarial gain arising during the period | $ | 2.2 | $ | (0.7 | ) | $ | 1.5 | |||||
Reclassification adjustments: | ||||||||||||
Less: amortization of net actuarial loss | 1.5 | (0.5 | ) | 1 | ||||||||
Less: amortization of prior service cost | 4.2 | (1.6 | ) | 2.6 | ||||||||
Other comprehensive income relating to defined benefit pension plan and VEBAs | 7.9 | (2.8 | ) | 5.1 | ||||||||
Available for Sale Securities: | ||||||||||||
Unrealized gain on available for sale securities | 1 | (0.3 | ) | 0.7 | ||||||||
Reclassification adjustments: | ||||||||||||
Less: reclassification of unrealized gain upon sale of available for sale securities | (1.0 | ) | 0.3 | (0.7 | ) | |||||||
Other comprehensive income (loss) relating to available for sale securities | — | — | — | |||||||||
Foreign currency translation adjustment | 0.2 | — | 0.2 | |||||||||
Other comprehensive income | $ | 8.1 | $ | (2.8 | ) | $ | 5.3 | |||||
2012 | ||||||||||||
Defined benefit pension plan and VEBAs: | ||||||||||||
Net actuarial gain arising during the period | $ | 87.8 | $ | (33.5 | ) | $ | 54.3 | |||||
Reclassification adjustments: | ||||||||||||
Less: amortization of net actuarial loss | 3.1 | (1.1 | ) | 2 | ||||||||
Less: amortization of prior service cost | 4.2 | (1.7 | ) | 2.5 | ||||||||
Other comprehensive income relating to defined benefit pension plan and VEBAs | 95.1 | (36.3 | ) | 58.8 | ||||||||
Available for Sale Securities: | ||||||||||||
Unrealized gain on available for sale securities | 0.6 | (0.2 | ) | 0.4 | ||||||||
Foreign currency translation adjustment | (0.2 | ) | — | (0.2 | ) | |||||||
Other comprehensive income | $ | 95.5 | $ | (36.5 | ) | $ | 59 | |||||
2011 | ||||||||||||
Defined benefit pension plan and VEBAs: | ||||||||||||
Net actuarial loss arising during the period | $ | (110.6 | ) | $ | 42.2 | $ | (68.4 | ) | ||||
Reclassification adjustments | ||||||||||||
Less: amortization of net actuarial loss | 0.6 | (0.2 | ) | 0.4 | ||||||||
Less: amortization of prior service cost | 4.2 | (1.6 | ) | 2.6 | ||||||||
Other comprehensive loss relating to defined benefit pension plan and VEBAs | (105.8 | ) | 40.4 | (65.4 | ) | |||||||
Available for Sale Securities: | ||||||||||||
Unrealized loss on available for sale securities | (0.1 | ) | — | (0.1 | ) | |||||||
Foreign currency translation adjustment | 0.2 | — | 0.2 | |||||||||
Other comprehensive loss | $ | (105.7 | ) | $ | 40.4 | $ | (65.3 | ) | ||||
Guarantor_and_NonGuarantor_Fin1
Guarantor and Non-Guarantor Financial Statements (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Guarantor and Non-Guarantor Financial Statement [Abstract] | ' | ||||||||||||||||||||
Schedule of Condensed Financial Statements | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 5 | $ | 157.7 | $ | 6.8 | $ | — | $ | 169.5 | |||||||||||
Short-term investments | — | 129.5 | — | — | 129.5 | ||||||||||||||||
Receivables: | |||||||||||||||||||||
Trade, less allowance for doubtful receivables | — | 117.7 | 2.1 | — | 119.8 | ||||||||||||||||
Intercompany receivables | — | 0.1 | 0.2 | (0.3 | ) | — | |||||||||||||||
Other | — | 5.3 | 8.1 | — | 13.4 | ||||||||||||||||
Inventories | — | 208.6 | 6.4 | (0.6 | ) | 214.4 | |||||||||||||||
Prepaid expenses and other current assets | 0.1 | 43.7 | 0.4 | — | 44.2 | ||||||||||||||||
Total current assets | 5.1 | 662.6 | 24 | (0.9 | ) | 690.8 | |||||||||||||||
Investments in and advances to subsidiaries | 1,437.90 | 26.5 | — | (1,464.4 | ) | — | |||||||||||||||
Property, plant, and equipment — net | — | 414 | 15.3 | — | 429.3 | ||||||||||||||||
Long-term intercompany receivables | 31.3 | 1.6 | 9.5 | (42.4 | ) | — | |||||||||||||||
Net asset in respect of VEBA | — | 406 | — | — | 406 | ||||||||||||||||
Deferred tax assets — net | — | 60.2 | — | 8.9 | 69.1 | ||||||||||||||||
Intangible assets — net | — | 33.7 | — | — | 33.7 | ||||||||||||||||
Goodwill | — | 37.2 | — | — | 37.2 | ||||||||||||||||
Other assets | 86.2 | 18.5 | 0.1 | — | 104.8 | ||||||||||||||||
Total | $ | 1,560.50 | $ | 1,660.30 | $ | 48.9 | $ | (1,498.8 | ) | $ | 1,770.90 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 1.1 | $ | 56.3 | $ | 5.5 | $ | — | $ | 62.9 | |||||||||||
Intercompany payable | — | 13.9 | 0.1 | (14.0 | ) | — | |||||||||||||||
Accrued salaries, wages, and related expenses | — | 39.3 | 3.4 | — | 42.7 | ||||||||||||||||
Other accrued liabilities | 3.5 | 39.9 | 1.4 | — | 44.8 | ||||||||||||||||
Short-term capital lease | — | 0.2 | — | — | 0.2 | ||||||||||||||||
Total current liabilities | 4.6 | 149.6 | 10.4 | (14.0 | ) | 150.6 | |||||||||||||||
Deferred tax liability | — | — | 1.2 | — | 1.2 | ||||||||||||||||
Long-term intercompany payable | — | 40.7 | 1.7 | (42.4 | ) | — | |||||||||||||||
Long-term liabilities | 83.2 | 52 | 11.2 | — | 146.4 | ||||||||||||||||
Long-term debt | 388.5 | — | — | — | 388.5 | ||||||||||||||||
Total liabilities | 476.3 | 242.3 | 24.5 | (56.4 | ) | 686.7 | |||||||||||||||
Total stockholders’ equity | 1,084.20 | 1,418.00 | 24.4 | (1,442.4 | ) | 1,084.20 | |||||||||||||||
Total | $ | 1,560.50 | $ | 1,660.30 | $ | 48.9 | $ | (1,498.8 | ) | $ | 1,770.90 | ||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
December 31, 2012 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
ASSETS | |||||||||||||||||||||
Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 5 | $ | 266 | $ | 2.4 | $ | — | $ | 273.4 | |||||||||||
Short-term investments | — | 85 | — | — | 85 | ||||||||||||||||
Receivables: | |||||||||||||||||||||
Trade, less allowance for doubtful receivables | — | 121.5 | 2.3 | — | 123.8 | ||||||||||||||||
Intercompany receivables | — | (10.3 | ) | 0.4 | 9.9 | — | |||||||||||||||
Other | — | 1.3 | 2.1 | — | 3.4 | ||||||||||||||||
Inventories | — | 178.7 | 7.3 | — | 186 | ||||||||||||||||
Prepaid expenses and other current assets | — | 68.1 | 2 | — | 70.1 | ||||||||||||||||
Total current assets | 5 | 710.3 | 16.5 | 9.9 | 741.7 | ||||||||||||||||
Investments in and advances to subsidiaries | 1,284.10 | 7.4 | — | (1,291.5 | ) | — | |||||||||||||||
Property, plant, and equipment — net | — | 371.8 | 12.5 | — | 384.3 | ||||||||||||||||
Long-term intercompany receivables | 163.7 | 0.4 | 6.4 | (170.5 | ) | — | |||||||||||||||
Net asset in respect of VEBA | — | 365.9 | — | — | 365.9 | ||||||||||||||||
Deferred tax assets — net | — | 93.4 | (0.8 | ) | 9.4 | 102 | |||||||||||||||
Intangible assets — net | — | 35.4 | — | — | 35.4 | ||||||||||||||||
Goodwill | — | 37.2 | — | — | 37.2 | ||||||||||||||||
Other assets | 64 | 19.2 | 3 | (0.2 | ) | 86 | |||||||||||||||
Total | $ | 1,516.80 | $ | 1,641.00 | $ | 37.6 | $ | (1,442.9 | ) | $ | 1,752.50 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 0.1 | $ | 56.5 | $ | 5.9 | $ | — | $ | 62.5 | |||||||||||
Intercompany payable | — | 0.3 | 0.2 | (0.5 | ) | — | |||||||||||||||
Accrued salaries, wages, and related expenses | — | 36.7 | 2.6 | — | 39.3 | ||||||||||||||||
Other accrued liabilities | 3.5 | 47.8 | 0.5 | — | 51.8 | ||||||||||||||||
Payable to affiliate | — | 7.9 | — | — | 7.9 | ||||||||||||||||
Short-term capital lease | — | 0.1 | — | — | 0.1 | ||||||||||||||||
Total current liabilities | 3.6 | 149.3 | 9.2 | (0.5 | ) | 161.6 | |||||||||||||||
Net liability in respect of VEBA | — | 5.3 | — | — | 5.3 | ||||||||||||||||
Long-term intercompany payable | — | 170 | 0.5 | (170.5 | ) | — | |||||||||||||||
Long-term liabilities | 62.1 | 49.6 | 22.8 | — | 134.5 | ||||||||||||||||
Long-term debt | 380.3 | — | — | — | 380.3 | ||||||||||||||||
Total liabilities | 446 | 374.2 | 32.5 | (171.0 | ) | 681.7 | |||||||||||||||
Total stockholders’ equity | 1,070.80 | 1,266.80 | 5.1 | (1,271.9 | ) | 1,070.80 | |||||||||||||||
Total | $ | 1,516.80 | $ | 1,641.00 | $ | 37.6 | $ | (1,442.9 | ) | $ | 1,752.50 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
Net sales | $ | — | $ | 1,275.20 | $ | 118 | $ | (95.7 | ) | $ | 1,297.50 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of products sold: | |||||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | — | 1,026.00 | 105.7 | (92.8 | ) | 1,038.90 | |||||||||||||||
Unrealized gains on derivative instruments | — | (0.7 | ) | — | — | (0.7 | ) | ||||||||||||||
Depreciation and amortization | — | 27 | 1.1 | — | 28.1 | ||||||||||||||||
Selling, administrative, research and development, and general | 3.8 | 47.6 | 8.9 | (2.4 | ) | 57.9 | |||||||||||||||
Total costs and expenses | 3.8 | 1,099.90 | 115.7 | (95.2 | ) | 1,124.20 | |||||||||||||||
Operating (loss) income | (3.8 | ) | 175.3 | 2.3 | (0.5 | ) | 173.3 | ||||||||||||||
Other (expense) income: | |||||||||||||||||||||
Interest expense | (36.6 | ) | 0.5 | — | 0.4 | (35.7 | ) | ||||||||||||||
Other income (expense), net | 3.9 | 2 | — | (0.3 | ) | 5.6 | |||||||||||||||
(Loss) income before income taxes | (36.5 | ) | 177.8 | 2.3 | (0.4 | ) | 143.2 | ||||||||||||||
Income tax (provision) benefit | — | (68.1 | ) | 15.7 | 14 | (38.4 | ) | ||||||||||||||
Earnings in equity of subsidiaries | 141.3 | 17.6 | — | (158.9 | ) | — | |||||||||||||||
Net income | $ | 104.8 | $ | 127.3 | $ | 18 | $ | (145.3 | ) | $ | 104.8 | ||||||||||
Comprehensive income | $ | 110.1 | $ | 131.6 | $ | 19 | $ | (150.6 | ) | $ | 110.1 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
Net sales | $ | — | $ | 1,326.00 | $ | 124 | $ | (89.9 | ) | $ | 1,360.10 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of products sold: | |||||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | — | 1,090.00 | 110.2 | (84.0 | ) | 1,116.20 | |||||||||||||||
Unrealized loss on derivative instruments | — | (15.2 | ) | — | — | (15.2 | ) | ||||||||||||||
Depreciation and amortization | — | 25.5 | 1 | — | 26.5 | ||||||||||||||||
Selling, administrative, research and development, and general | 2 | 57.7 | 8.2 | (5.7 | ) | 62.2 | |||||||||||||||
Other operating charges, net | — | 4.5 | — | — | 4.5 | ||||||||||||||||
Total costs and expenses | 2 | 1,162.50 | 119.4 | (89.7 | ) | 1,194.20 | |||||||||||||||
Operating (loss) income | (2.0 | ) | 163.5 | 4.6 | (0.2 | ) | 165.9 | ||||||||||||||
Other (expense) income: | |||||||||||||||||||||
Interest expense | (28.2 | ) | (1.0 | ) | — | 0.1 | (29.1 | ) | |||||||||||||
Other income, net | 0.8 | 1.5 | 0.6 | (0.1 | ) | 2.8 | |||||||||||||||
(Loss) income before income taxes | (29.4 | ) | 164 | 5.2 | (0.2 | ) | 139.6 | ||||||||||||||
Income tax provision | — | (62.6 | ) | (2.3 | ) | 11.1 | (53.8 | ) | |||||||||||||
Earnings in equity of subsidiaries | 115.2 | 2.6 | — | (117.8 | ) | — | |||||||||||||||
Net income | $ | 85.8 | $ | 104 | $ | 2.9 | $ | (106.9 | ) | $ | 85.8 | ||||||||||
Comprehensive income | $ | 144.8 | $ | 164 | $ | 1.9 | $ | (165.9 | ) | $ | 144.8 | ||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | |||||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
Net sales | $ | — | $ | 1,264.50 | $ | 133.6 | $ | (96.8 | ) | $ | 1,301.30 | ||||||||||
Costs and expenses: | |||||||||||||||||||||
Cost of products sold: | |||||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | — | 1,098.70 | 125.4 | (95.1 | ) | 1,129.00 | |||||||||||||||
Unrealized loss on derivative instruments | — | 29.9 | — | — | 29.9 | ||||||||||||||||
Restructuring benefits | — | (0.3 | ) | — | — | (0.3 | ) | ||||||||||||||
Depreciation and amortization | — | 24.3 | 0.9 | — | 25.2 | ||||||||||||||||
Selling, administrative, research and development, and general | 1.8 | 56.3 | 6.2 | (1.6 | ) | 62.7 | |||||||||||||||
Other operating charges (benefits), net | — | 0.1 | (0.3 | ) | — | (0.2 | ) | ||||||||||||||
Total costs and expenses | 1.8 | 1,209.00 | 132.2 | (96.7 | ) | 1,246.30 | |||||||||||||||
Operating (loss) income | (1.8 | ) | 55.5 | 1.4 | (0.1 | ) | 55 | ||||||||||||||
Other (expense) income: | |||||||||||||||||||||
Interest expense | (16.2 | ) | (1.8 | ) | — | — | (18.0 | ) | |||||||||||||
Other income (expense), net | 4 | 0.4 | (0.1 | ) | — | 4.3 | |||||||||||||||
(Loss) income before income taxes | (14.0 | ) | 54.1 | 1.3 | (0.1 | ) | 41.3 | ||||||||||||||
Income tax provision | — | (21.8 | ) | (0.6 | ) | 6.2 | (16.2 | ) | |||||||||||||
Earnings in equity of subsidiaries | 39.1 | 0.8 | — | (39.9 | ) | — | |||||||||||||||
Net income | $ | 25.1 | $ | 33.1 | $ | 0.7 | $ | (33.8 | ) | $ | 25.1 | ||||||||||
Comprehensive (loss) income | $ | (40.2 | ) | $ | (32.2 | ) | $ | 0.7 | $ | 31.5 | $ | (40.2 | ) | ||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (29.2 | ) | $ | 131.7 | $ | 9.2 | $ | — | $ | 111.7 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | — | (66.5 | ) | (3.9 | ) | — | (70.4 | ) | |||||||||||||
Purchase of available for sale securities | — | (227.8 | ) | — | (227.8 | ) | |||||||||||||||
Proceeds from disposition of available for sale securities | — | 183.1 | — | — | 183.1 | ||||||||||||||||
Change in restricted cash | — | 0.7 | 1 | — | 1.7 | ||||||||||||||||
Net cash used in investing activities | — | (110.5 | ) | (2.9 | ) | — | (113.4 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Repayment of capital lease | — | (0.1 | ) | — | — | (0.1 | ) | ||||||||||||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | — | 1.1 | — | — | 1.1 | ||||||||||||||||
Repurchase of common stock to cover employees' tax withholdings upon vesting of non-vested shares | (2.5 | ) | — | — | — | (2.5 | ) | ||||||||||||||
Cash dividend paid to stockholders | (23.0 | ) | — | — | — | (23.0 | ) | ||||||||||||||
Cash dividend returned to the Company | 0.6 | — | — | — | 0.6 | ||||||||||||||||
Repurchase of common stock | (78.3 | ) | — | — | — | (78.3 | ) | ||||||||||||||
Intercompany loan | 132.4 | (130.5 | ) | (1.9 | ) | — | — | ||||||||||||||
Net cash provided by (used in) financing activities | 29.2 | (129.5 | ) | (1.9 | ) | — | (102.2 | ) | |||||||||||||
Net increase in cash and cash equivalents during the period | — | (108.3 | ) | 4.4 | — | (103.9 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 5 | 266 | 2.4 | — | 273.4 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 5 | $ | 157.7 | $ | 6.8 | $ | — | $ | 169.5 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net cash (used in) provided by operating activities1 | $ | (17.8 | ) | $ | 164.3 | $ | 5.9 | $ | — | $ | 152.4 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | — | (42.6 | ) | (1.5 | ) | — | (44.1 | ) | |||||||||||||
Purchase of available for sale securities | — | (85.0 | ) | — | — | (85.0 | ) | ||||||||||||||
Proceeds from disposal of property, plant and equipment | — | 0.3 | — | — | 0.3 | ||||||||||||||||
Change in restricted cash | 6.9 | 0.4 | (0.4 | ) | — | 6.9 | |||||||||||||||
Net cash provided by (used in) investing activities | 6.9 | (126.9 | ) | (1.9 | ) | — | (121.9 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Proceeds from issuance of Senior Notes | 225 | — | — | — | 225 | ||||||||||||||||
Repayment of capital lease | — | (0.1 | ) | — | — | (0.1 | ) | ||||||||||||||
Repayment of promissory notes | — | (4.7 | ) | — | — | (4.7 | ) | ||||||||||||||
Cash paid for financing costs | (6.6 | ) | — | — | — | (6.6 | ) | ||||||||||||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | — | 1.3 | — | — | 1.3 | ||||||||||||||||
Repurchase of common stock to cover employees' tax withholdings upon vesting of non-vested shares | (2.2 | ) | — | — | — | (2.2 | ) | ||||||||||||||
Cash dividend paid to stockholders | (19.6 | ) | — | — | — | (19.6 | ) | ||||||||||||||
Intercompany loan | (185.7 | ) | 189.1 | (3.4 | ) | — | — | ||||||||||||||
Net cash provided by (used in) financing activities | 10.9 | 185.6 | (3.4 | ) | — | 193.1 | |||||||||||||||
Net increase in cash and cash equivalents during the period | — | 223 | 0.6 | — | 223.6 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 5 | 43 | 1.8 | — | 49.8 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 5 | $ | 266 | $ | 2.4 | $ | — | $ | 273.4 | |||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
Year Ended December 31, 2011 | |||||||||||||||||||||
Parent | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidated | |||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||
Net cash (used in) provided by operating activities | $ | (10.2 | ) | $ | 71.9 | $ | 1.1 | $ | — | $ | 62.8 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Capital expenditures | — | (31.2 | ) | (1.3 | ) | — | (32.5 | ) | |||||||||||||
Purchase of available for sale securities | — | (0.3 | ) | — | — | (0.3 | ) | ||||||||||||||
Proceeds from disposal of property, plant and equipment | — | — | 0.7 | — | 0.7 | ||||||||||||||||
Cash payment for acquisition of manufacturing facility and related assets (net of $4.9 of cash received in connection with the acquisition in 2011) | — | (83.2 | ) | — | — | (83.2 | ) | ||||||||||||||
Change in restricted cash | — | (1.0 | ) | — | — | (1.0 | ) | ||||||||||||||
Net cash used in investing activities | — | (115.7 | ) | (0.6 | ) | — | (116.3 | ) | |||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Repayment of capital lease | — | (0.1 | ) | — | — | (0.1 | ) | ||||||||||||||
Repayment of promissory notes | — | (8.3 | ) | — | — | (8.3 | ) | ||||||||||||||
Cash paid for financing costs | — | (2.1 | ) | — | — | (2.1 | ) | ||||||||||||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | — | 0.2 | — | — | 0.2 | ||||||||||||||||
Repurchase of common stock to cover employees' tax withholdings upon vesting of non-vested shares | (3.1 | ) | — | — | — | (3.1 | ) | ||||||||||||||
Cash dividend paid to stockholders | (18.9 | ) | — | — | — | (18.9 | ) | ||||||||||||||
Intercompany loan | 32.2 | (32.5 | ) | 0.3 | — | — | |||||||||||||||
Net cash provided (used in) by financing activities | 10.2 | (42.8 | ) | 0.3 | — | (32.3 | ) | ||||||||||||||
Net (decrease) increase in cash and cash equivalents during the period | — | (86.6 | ) | 0.8 | — | (85.8 | ) | ||||||||||||||
Cash and cash equivalents at beginning of period | 5 | 129.6 | 1 | — | 135.6 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 5 | $ | 43 | $ | 1.8 | $ | — | $ | 49.8 | |||||||||||
Quarterly_Financial_Data_Quart
Quarterly Financial Data Quarterly Financial Data (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | |||||||||||||||||||||||||||||||||
Quarterly Financial Data [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||
The following tables present the unaudited financial data for each of the interim periods in 2013 and 2012. | ||||||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | |||||||||||||||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | 31-Mar | 30-Jun | 30-Sep | 31-Dec | |||||||||||||||||||||||||||
Ended | Ended | Ended | Ended | 2012 | ||||||||||||||||||||||||||||||
31-Mar | 30-Jun | 30-Sep | 31-Dec | Net sales | $ | 365.4 | $ | 345.2 | $ | 335.5 | $ | 314 | ||||||||||||||||||||||
2013 | ||||||||||||||||||||||||||||||||||
Net sales | $ | 337.4 | $ | 328.9 | $ | 319.9 | $ | 311.3 | Cost of products sold, excluding depreciation, amortization and other items | 298.1 | 284.4 | 268.9 | 264.8 | |||||||||||||||||||||
Cost of products sold, excluding depreciation, amortization and other items | 263.6 | 261.5 | 259.5 | 254.3 | Unrealized (gains) losses on derivative instruments | (3.1 | ) | 0.1 | (12.3 | ) | 0.1 | |||||||||||||||||||||||
Unrealized losses (gains) on derivative instruments | 0.7 | 4.2 | (1.5 | ) | (4.1 | ) | Gross Profit | 70.4 | 60.7 | 78.9 | 49.1 | |||||||||||||||||||||||
Gross Profit | 73.1 | 63.2 | 61.9 | 61.1 | Operating income | 46.2 | 39.6 | 56.2 | 23.9 | |||||||||||||||||||||||||
Operating income | 50 | 40.1 | 41.6 | 41.6 | Net income | $ | 26.5 | $ | 21 | $ | 29.2 | $ | 9.1 | |||||||||||||||||||||
Net income | $ | 33.5 | $ | 18.6 | $ | 25.4 | $ | 27.3 | Earnings per common share, Basic: | |||||||||||||||||||||||||
Net income per share | $ | 1.39 | $ | 1.1 | $ | 1.52 | $ | 0.48 | ||||||||||||||||||||||||||
Earnings per common share, Basic: | ||||||||||||||||||||||||||||||||||
Net income per share | $ | 1.75 | $ | 0.99 | $ | 1.37 | $ | 1.48 | Earnings per common share, Diluted: | |||||||||||||||||||||||||
Net income per share | $ | 1.38 | $ | 1.09 | $ | 1.51 | $ | 0.47 | ||||||||||||||||||||||||||
Earnings per common share, Diluted: | ||||||||||||||||||||||||||||||||||
Net income per share | $ | 1.73 | $ | 0.98 | $ | 1.34 | $ | 1.44 | Common stock market price (based on daily closing price): | |||||||||||||||||||||||||
High | $ | 52.46 | $ | 52.57 | $ | 59.15 | $ | 61.75 | ||||||||||||||||||||||||||
Common stock market price (based on daily closing price): | ||||||||||||||||||||||||||||||||||
High | $ | 65.03 | $ | 65.44 | $ | 71.96 | $ | 73.03 | Low | $ | 46.82 | $ | 46.62 | $ | 49.42 | $ | 56.27 | |||||||||||||||||
Low | $ | 60.77 | $ | 58.75 | $ | 62.31 | $ | 65.23 | ||||||||||||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies, Textuals, Equity Method Investee (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Noncontrolling Interest | ' | ' | ' |
Equity in income from Anglesey | $0 | $0 | $0 |
Anglesey Aluminium Limited | ' | ' | ' |
Noncontrolling Interest | ' | ' | ' |
Ownership percentage of Anglesey | 49.00% | ' | ' |
Equity in income from Anglesey | 0 | 0 | 0 |
Carrying amount of equity method investments | $0 | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies, Textuals (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounting policies additional disclosures | ' | ' | ' |
Advertising costs | $1.30 | $0.40 | $0.40 |
Research and development costs | 7.8 | 6.4 | 6.1 |
Net non-cash LIFO benefits | 24.1 | 4.9 | 7.1 |
Excess of current cost over the stated LIFO value of inventory | 0.4 | 24.5 | ' |
Effect of LIFO Inventory Liquidation on Income | ' | 22.3 | ' |
Impairment of the carrying value of goodwill | 0 | 0 | ' |
Discount rate used in estimating liabilities for worker compensation claims | 1.75% | 0.75% | ' |
Undiscounted workers' compensation liabilities | 29.1 | 27.3 | ' |
Margin deposits with counterparties | 0 | 0 | ' |
Margin deposits from counterparties | 0 | 0 | ' |
Performance shares | ' | ' | ' |
Accounting policies additional disclosures | ' | ' | ' |
Performance award vesting period, years | '3 years | ' | ' |
Fabricated Products | ' | ' | ' |
Accounting policies additional disclosures | ' | ' | ' |
Net non-cash LIFO benefits | $24.10 | $4.90 | $7.10 |
Minimum | ' | ' | ' |
Accounting policies additional disclosures | ' | ' | ' |
Period over which accounts receivable is due, days | '30 days | ' | ' |
Number of days in maturity for debt investment securities to be classified as short-term investments | '90 days | ' | ' |
Maximum | ' | ' | ' |
Accounting policies additional disclosures | ' | ' | ' |
Number of days to maturity for debt investment securities to be classified as cash and cash equivalents | '90 days | ' | ' |
Period over which accounts receivable is due, days | '60 days | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies,Textuals, Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment | ' | ' | ' |
Interest expense capitalized as construction in progress | $3.40 | $1.70 | $1.30 |
Depreciation expense | 26.4 | 24.7 | 23 |
Asset impairment charge | 0 | 4.4 | 0 |
Fabricated Products | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Depreciation expense | 25.8 | 24.2 | 22.7 |
Asset impairment charge | 0 | ' | 0 |
Fabricated Products | Idled equipment | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Asset impairment charge | ' | $4.40 | ' |
Minimum | Land improvements | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment useful lives (in years) | '3 years | ' | ' |
Minimum | Buildings and leasehold improvements | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment useful lives (in years) | '15 years | ' | ' |
Minimum | Machinery and equipment | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment useful lives (in years) | '1 year | ' | ' |
Minimum | Capital lease assets | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment useful lives (in years) | '3 years | ' | ' |
Maximum | Land improvements | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment useful lives (in years) | '25 years | ' | ' |
Maximum | Buildings and leasehold improvements | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment useful lives (in years) | '45 years | ' | ' |
Maximum | Machinery and equipment | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment useful lives (in years) | '24 years | ' | ' |
Maximum | Capital lease assets | ' | ' | ' |
Property, Plant and Equipment | ' | ' | ' |
Property, plant and equipment useful lives (in years) | '5 years | ' | ' |
Supplemental_Balance_Sheet_Inf2
Supplemental Balance Sheet Information (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Cash and Cash Equivalents. | ' | ' | ' | ' |
Cash and money market funds | $57.70 | $107.90 | ' | ' |
Commercial paper | 111.8 | 165.5 | ' | ' |
Total | 169.5 | 273.4 | 49.8 | 135.6 |
Trade Receivables. | ' | ' | ' | ' |
Billed trade receivables | 120.2 | 124.4 | ' | ' |
Unbilled trade receivables — Note 1 | 0.4 | 0.2 | ' | ' |
Trade receivables, gross | 120.6 | 124.6 | ' | ' |
Allowance for doubtful receivables | -0.8 | -0.8 | ' | ' |
Trade receivables, net | 119.8 | 123.8 | ' | ' |
Inventories. | ' | ' | ' | ' |
Finished products | 72.5 | 59.9 | ' | ' |
Work-in-process | 75.9 | 55.5 | ' | ' |
Raw materials | 47.2 | 53.9 | ' | ' |
Operating supplies and repairs and maintenance parts | 18.8 | 16.7 | ' | ' |
Total | 214.4 | 186 | ' | ' |
Prepaid Expenses and Other Current Assets. | ' | ' | ' | ' |
Current derivative assets — Notes 11 and 12 | 2 | 3 | ' | ' |
Current deferred tax assets | 36.7 | 59.5 | ' | ' |
Current portion of option premiums paid — Notes 11 and 12 | 0 | 0.1 | ' | ' |
Short-term restricted cash | 0.3 | 1.3 | ' | ' |
Prepaid taxes | 0 | 2.1 | ' | ' |
Prepaid expenses | 5.2 | 4.1 | ' | ' |
Total | 44.2 | 70.1 | ' | ' |
Property, Plant, and Equipment - Net. | ' | ' | ' | ' |
Land and improvements | 22.6 | 22.6 | ' | ' |
Buildings and leasehold improvements | 53 | 50.9 | ' | ' |
Machinery and equipment | 425.6 | 400.4 | ' | ' |
Construction in progress | 66 | 20.8 | ' | ' |
Active property, plant, and equipment, gross | 567.2 | 494.7 | ' | ' |
Accumulated depreciation | -137.9 | -111.4 | ' | ' |
Active property, plant, and equipment, net | 429.3 | 383.3 | ' | ' |
Idled equipment | 0 | 1 | ' | ' |
Property, plant, and equipment, net | 429.3 | 384.3 | ' | ' |
Other Assets. | ' | ' | ' | ' |
Derivative assets — Notes 11 and 12 | 79.8 | 55.5 | ' | ' |
Restricted cash | 9.3 | 10 | ' | ' |
Long-term income tax receivable | 0 | 2.9 | ' | ' |
Deferred financing costs | 8.9 | 11.7 | ' | ' |
Deferred compensation plan assets | 6.5 | 5.6 | ' | ' |
Other | 0.3 | 0.3 | ' | ' |
Total | 104.8 | 86 | ' | ' |
Other Accrued Liabilities. | ' | ' | ' | ' |
Current derivative liabilities — Notes 11 and 12 | 1.8 | 3.1 | ' | ' |
Current portion of option premiums received — Notes 11 and 12 | 0 | 0.1 | ' | ' |
Uncleared cash disbursement | 9.6 | 4.7 | ' | ' |
Accrued income taxes and taxes payable | 4.3 | 3.1 | ' | ' |
Accrued annual VEBA contribution | 16 | 20 | ' | ' |
Short-term environmental accrual — Note 10 | 2.8 | 3 | ' | ' |
Accrued interest | 3.7 | 3.7 | ' | ' |
Short-term deferred revenue — Note 1 | 0 | 6.7 | ' | ' |
Other | 6.6 | 7.4 | ' | ' |
Total | 44.8 | 51.8 | ' | ' |
Long-term Liabilities. | ' | ' | ' | ' |
Derivative liabilities — Notes 11 and 12 | 84.3 | 63.5 | ' | ' |
Income tax liabilities | 5 | 15.1 | ' | ' |
Workers’ compensation accruals | 23.3 | 24 | ' | ' |
Long-term environmental accrual — Note 10 | 20 | 18.7 | ' | ' |
Long-term asset retirement obligations | 4 | 3.8 | ' | ' |
Deferred compensation liability | 7 | 5.8 | ' | ' |
Long-term capital leases | 0.1 | 0.2 | ' | ' |
Other long-term liabilities | 2.7 | 3.4 | ' | ' |
Total | 146.4 | 134.5 | ' | ' |
Long-term Debt. — Note 3 | ' | ' | ' | ' |
Senior notes | 225 | 225 | ' | ' |
Cash convertible senior notes | 163.5 | 155.3 | ' | ' |
Total | $388.50 | $380.30 | ' | ' |
LongTerm_Debt_and_Credit_Facil2
Long-Term Debt and Credit Facility, Textuals (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Mar. 29, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 30, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | 23-May-12 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Convertible Notes | Convertible Notes | Call Options | Warrant Transactions | Warrant Transactions | Warrant Transactions | Senior Notes | Senior Notes | Senior Notes | Line of Credit | Letter of Credit | Minimum | Maximum | On or after June 1, 2016 | On or after June 1, 2018 | Prior to June 1, 2015 | On or after June 1, 2015 but prior to June 1, 2016 | Change in control | |||||
Days | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | |||||||||||||||||
Debt Instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of notes | $225,000,000 | $225,000,000 | $225,000,000 | ' | ' | $175,000,000 | ' | ' | ' | ' | ' | ' | $225,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | 4.50% | ' | ' | ' | ' | ' | ' | 8.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt issuance, percentage of principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,400,000 | 11,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effective interest rate | 8.60% | 8.60% | ' | ' | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price percentage of principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 104.13% | 100.00% | 108.25% | 100.00% | 101.00% |
Percentage of original principal amount that may be redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35.00% | ' | ' |
Conversion rate of common stock shares per $1,000 of principal amount | ' | ' | ' | ' | 20.7903 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount in conversion feature | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Conversion price of note | $48.10 | $48.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of quarterly cash dividends | $0.30 | $1.20 | $1 | $0.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.24 | ' | ' | ' | ' | ' | ' |
Threshold percentage of stock price trigger for conversion | ' | ' | ' | ' | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold trading days for conversion | ' | ' | ' | ' | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Threshold consecutive trading days for conversion | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of notes converted | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock sold related to option counterparties net share-settled warrants | ' | ' | ' | ' | ' | ' | ' | 3.6 | 3.6 | 3.6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price of call options | ' | ' | ' | ' | ' | ' | $48.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price per share of Warrants | ' | ' | ' | ' | ' | ' | ' | 61.08 | 61.31 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | 300,000,000 | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60,000,000 | ' | 350,000,000 | ' | ' | ' | ' | ' |
Percentage of eligible accounts receivable for borrowing base | 85.00% | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of eligible inventory for borrowing base | 65.00% | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of net orderly liquidation value of eligible inventory | 85.00% | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent of eligible machinery and equipment for borrowing base | 85.00% | 85.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Available borrowing capacity | 260,100,000 | 260,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' |
Outstanding line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -7,000,000 | ' | ' | ' | ' | ' | ' | ' |
Remaining available borrowing capacity | $253,100,000 | $253,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest on line of credit | 4.00% | 4.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed Charge Coverage Ratio | ' | '1.1:1.0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_and_Credit_Facil3
Long-Term Debt and Credit Facility, Carrying Amount Table (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Principal amount, carrying amount and interest expense of notes | ' | ' | ' | |||
Principal amount | $225 | $225 | ' | |||
Carrying amount, net of discount | 163.5 | 155.3 | ' | |||
Remaining discount amortization period | '1 year 3 months 18 days | ' | ' | |||
Convertible Notes | ' | ' | ' | |||
Principal amount, carrying amount and interest expense of notes | ' | ' | ' | |||
Principal amount | 175 | 175 | ' | |||
Less: unamortized issuance discount | -11.5 | [1] | -19.7 | ' | ||
Carrying amount, net of discount | 163.5 | 155.3 | ' | |||
Contractual coupon interest | 7.9 | 7.9 | 8.4 | |||
Amortization of discount | 8.2 | 7.3 | 6.6 | |||
Amortization of deferred financing costs | 1.2 | 1.2 | 1.2 | |||
Total interest expense | $17.30 | [2] | $16.40 | [2] | $16.20 | [2] |
[1] | The remaining unamortized issuance discount at December 31, 2013 will be amortized over the next 1.3 years assuming no early conversion. | |||||
[2] | A portion of the interest relating to the Convertible Notes is capitalized as Construction in progress. |
Acquisitions_Textuals_Details
Acquisitions, Textuals (Details) (USD $) | 12 Months Ended | 24 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Jan. 03, 2011 |
Alexco | Alexco | Alexco | ||||
Business Acquisition | ' | ' | ' | ' | ' | ' |
Net cash consideration paid | $0 | $0 | $83.20 | $83.20 | ' | ' |
Liabilities assumed from acquisition | ' | ' | ' | 1 | ' | ' |
Acquisition related costs | ' | ' | ' | $0.10 | $0.50 | ' |
Period for goodwill expected to be deductible for income tax purposes | ' | ' | ' | ' | ' | '15 years |
Acquisitions_Alexco_Purchase_P
Acquisitions, Alexco Purchase Price Allocation Table (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jan. 03, 2011 | Jan. 03, 2011 | Jan. 03, 2011 | Jan. 03, 2011 |
In Millions, unless otherwise specified | Alexco | Alexco | Alexco | Alexco | Alexco | Alexco | ||
Customer relationships | Backlog | Trademark and trade name | ||||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $4.90 | ' | ' | ' | ' |
Accounts receivable, net | ' | ' | ' | ' | 3.6 | ' | ' | ' |
Inventory | ' | ' | ' | ' | 6.6 | ' | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | 4.5 | ' | ' | ' |
Definite-lived intangible assets: | ' | ' | ' | ' | ' | 34.7 | 0.3 | 0.4 |
Goodwill | 37.2 | 37.2 | ' | ' | 34.1 | ' | ' | ' |
Accounts payable and other current liabilities | ' | ' | ' | ' | -1 | ' | ' | ' |
Cash consideration paid | ' | ' | $88.10 | ' | ' | ' | ' | ' |
Acquisitions_Alexco_Pro_Forma_
Acquisitions, Alexco Pro Forma Table (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |||
Net sales (combined) | $311.30 | $319.90 | $328.90 | $337.40 | $314 | $335.50 | $345.20 | $365.40 | $1,297.50 | $1,360.10 | $1,301.30 | ' | |||
Net income (combined) | 27.3 | 25.4 | 18.6 | 33.5 | 9.1 | 29.2 | 21 | 26.5 | 104.8 | 85.8 | 25.1 | ' | |||
Basic earnings per share (combined) | $1.48 | $1.37 | $0.99 | $1.75 | $0.48 | $1.52 | $1.10 | $1.39 | $5.56 | $4.49 | $1.32 | ' | |||
Diluted earnings per share (combined) | $1.44 | $1.34 | $0.98 | $1.73 | $0.47 | $1.51 | $1.09 | $1.38 | $5.44 | [1],[2] | $4.45 | [1],[2] | $1.32 | [1],[2] | ' |
Business Acquisition, Pro Forma Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales (combined) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,110.70 | |||
Net income (combined) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16.9 | |||
Basic earnings per share (combined) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.87 | |||
Diluted earnings per share (combined) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.87 | |||
Alexco | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Business Acquisition, Pro Forma Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 39.5 | 44.5 | 42.8 | ' | |||
Net income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | $6.30 | $9 | $10.50 | ' | |||
[1] | The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2013 and 2012 were calculated using the treasury method. The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2011 were calculated using the two-class method (see Note 1). | ||||||||||||||
[2] | Diluted weighted-average number of common shares outstanding and diluted earnings per share for 2013 and 2012 are based on the treasury method. Diluted weighted-average number of common shares outstanding and diluted earnings per share for 2011 is based on the two-class method (see Note 1 and Note 13). |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Goodwill (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill | ' | ' |
Goodwill | $37.20 | $37.20 |
Goodwill and intangible asset impairment | 0 | ' |
Fabricated Products | ' | ' |
Goodwill | ' | ' |
Goodwill | $37.20 | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, Identifiable Intangible Table (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Identifiable intangible assets | ' | ' |
Original cost | $39.70 | $39.70 |
Accumulated amortization | -6 | -4.3 |
Net book value | 33.7 | 35.4 |
Customer relationships | ' | ' |
Identifiable intangible assets | ' | ' |
Original cost | 38.5 | 38.5 |
Accumulated amortization | -4.8 | -3.2 |
Net book value | 33.7 | 35.3 |
Backlog | ' | ' |
Identifiable intangible assets | ' | ' |
Original cost | 0.8 | 0.8 |
Accumulated amortization | -0.8 | -0.8 |
Net book value | 0 | 0 |
Trademark and trade name | ' | ' |
Identifiable intangible assets | ' | ' |
Original cost | 0.4 | 0.4 |
Accumulated amortization | -0.4 | -0.3 |
Net book value | $0 | $0.10 |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets, Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' |
Amortization expense related to definite-lived intangible assets | $1.70 | $1.80 | $2.20 |
Expected amortization of intangible assets for the next five years | ' | ' | ' |
Expected amortization of intangible assets for the next year | 1.6 | ' | ' |
2015 | 1.6 | ' | ' |
2016 | 1.6 | ' | ' |
2017 | 1.6 | ' | ' |
2018 | 1.6 | ' | ' |
Expected amortization of intangible assets, year six and thereafter | $25.70 | ' | ' |
Income_Tax_Matters_Income_Befo
Income Tax Matters, Income Before Income Taxes and Tax Provision Table (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income before income taxes by geographic area | ' | ' | ' |
Domestic | $138.90 | $134.50 | $37.90 |
Foreign | 4.3 | 5.1 | 3.4 |
Income before income taxes | 143.2 | 139.6 | 41.3 |
Federal income tax (expense) benefit | ' | ' | ' |
Current federal tax (expense) benefit | 1.1 | 0 | 1.4 |
Deferred federal income tax (expense) benefit | -49.7 | -113 | -2.3 |
Federal benefit (expense) applied to increase (decrease) Additional capital/Other comprehensive income | 1.3 | 67.4 | -13.5 |
Federal income tax (expense) benefit | -47.3 | -45.6 | -14.4 |
Foreign income tax (expense) benefit | ' | ' | ' |
Current foreign tax (expense) benefit | 16.2 | -2.3 | 0.3 |
Deferred foreign income tax (expense) benefit | -0.5 | -0.2 | -0.5 |
Foreign benefit (expense) applied to increase (decrease) Additional capital/Other comprehensive income | -0.1 | 0.2 | -0.4 |
Foreign income tax (expense) benefit | 15.6 | -2.3 | -0.6 |
State income tax (expense) benefit | ' | ' | ' |
Current state tax (expense) benefit | -0.2 | 0.2 | 0.1 |
Deferred state income tax (expense) benefit | -6.7 | -15.3 | 0.7 |
State benefit (expense) applied to increase (decrease) Additioanl capital/Other comprehensive income | 0.2 | 9.2 | -2 |
State income tax (expense) benefit | -6.7 | -5.9 | -1.2 |
Total income tax (expense) benefit | ' | ' | ' |
Current income tax (expense) benefit | -17.1 | 2.1 | -1.8 |
Deferred income tax (expense) benefit | 56.9 | 128.5 | 2.1 |
Benefit (expense) applied to increase (decrease) Additional capital/Other comprehensive income | -1.4 | -76.8 | 15.9 |
Income tax provision | ($38.40) | ($53.80) | ($16.20) |
Income_Tax_Matters_Effective_T
Income Tax Matters, Effective Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Reconciliation between income tax provision and statutory income tax provision: | ' | ' | ' | |||
Amount of federal income tax provision based on the statutory rate | ($50.10) | ($48.90) | ($14.50) | |||
Decrease in federal valuation allowances | 0.1 | 0.1 | 0 | |||
Non-deductible compensation expense | -0.3 | -0.4 | -1.1 | |||
Non-deductible expense | -0.9 | -0.3 | -0.4 | |||
State income taxes, net of federal benefit | -4.4 | [1] | -3.8 | [1] | -0.8 | [1] |
Foreign income tax (expense) benefit | 0 | -0.5 | 0.6 | |||
Expiration of statute of limitations | 4.6 | 0 | 0 | |||
Settlement with taxing authorities | 4.4 | 0 | 0 | |||
Advance pricing agreement | 2.9 | 0 | 0 | |||
Competent Authority settlement | 5.3 | 0 | 0 | |||
Income tax provision | -38.4 | -53.8 | -16.2 | |||
Valuation Allowance | ' | ' | ' | |||
Increase (Decrease) in valuation allowance | 1.2 | -0.1 | -1.3 | |||
Unused state net operating losses | ' | ' | ' | |||
Valuation Allowance | ' | ' | ' | |||
Increase (Decrease) in valuation allowance | $1.20 | ' | ($1.20) | |||
[1] | State income taxes of $4.4 in 2013 includes a $1.2 increase in the valuation allowance relating to certain unused state net operating losses expected to expire. State income taxes of $0.8 in 2011 includes a $1.2 decrease in the valuation allowance relating to certain state net operating losses expected to be utilized before their expiration. |
Income_Tax_Matters_Components_
Income Tax Matters, Components of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Deferred income tax assets: | ' | ' | ||
Loss and credit carryforwards | $321.80 | $342.20 | ||
VEBAs (See Note 7) | 6.1 | 7.6 | ||
Other assets | 34.4 | 35.3 | ||
Inventories and other | 2.5 | 1.7 | ||
Valuation allowances | -19.9 | -18.7 | ||
Total deferred income tax assets | 344.9 | 368.1 | ||
Deferred income tax liabilities: | ' | ' | ||
Property, plant, and equipment | -73 | -69.7 | ||
VEBAs (See Note 7) | -152.4 | -136.9 | ||
Inventories | -14.9 | 0 | ||
Total deferred income tax liabilities | -240.3 | -206.6 | ||
Net deferred income tax assets | 104.6 | [1] | 161.5 | [1] |
Net deferred income tax assets, current | 36.7 | 59.5 | ||
Net deferred income tax assets, long term | 69.1 | 102 | ||
Deferred tax liability, long term | ($1.20) | ' | ||
[1] | Of the total net deferred income tax assets of $104.6, $36.7 was included in Prepaid expenses and other current assets, $69.1 was presented as Deferred tax assets, net and $1.2 was presented as Deferred tax liability on the Consolidated Balance Sheet as of December 31, 2013. Of the total net deferred income tax assets of $161.5, $59.5 was included in Prepaid expenses and other current assets and $102.0 was presented as Deferred tax assets, net on the Consolidated Balance Sheet as of December 31, 2012. |
Income_Tax_Matters_NOL_Details
Income Tax Matters, NOL (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Net operating loss carryforwards | $736.90 | ' | ' |
NOL carryforwards related to the excess tax benefits from vesting of employee restricted stock | 1.7 | ' | ' |
AMT credit carryforwards | 29.1 | ' | ' |
Increase (Decrease) in valuation allowance | $1.20 | ($0.10) | ($1.30) |
Income_Tax_Matters_Tax_Uncerta
Income Tax Matters, Tax Uncertainties (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other, settlements from tax audit | ' | ' | ' |
Cash tax benefit from settlement of tax audit | $7.60 | ' | ' |
Cash received from settlement of tax audit | 6.1 | ' | ' |
Cash tax benefit from advance pricing agreement | 2.9 | 0 | 0 |
Reconciliation of changes in the gross unrecognized tax benefits: | ' | ' | ' |
Gross unrecognized tax benefits at beginning of period | 15.7 | 13.7 | 15 |
Gross increases for tax positions of prior years | 0 | 1.3 | 0.1 |
Gross decreases for tax positions of prior years | -7.6 | -0.1 | 0 |
Gross increases for tax positions of current years | 0 | 0.4 | 0.4 |
Settlements | 0 | 0 | -0.5 |
Gross decrease for tax positions relating to lapse of a statute of limitation | -3.3 | 0 | -0.9 |
Foreign currency translation | -1 | 0.4 | -0.4 |
Gross unrecognized tax benefits at end of period | 3.8 | 15.7 | 13.7 |
Unrecognized tax benefits that would impact effective tax rate if recognized | 2.7 | 14.6 | ' |
Unrecognized tax benefits, income tax penalties and interest accrued: | ' | ' | ' |
Accrued interest and penalties on unrecognized tax benefits | 2.3 | 7.5 | ' |
Accrued interest and penalties on unrecognized tax benefits, current | 0 | ' | ' |
(Decrease) increase in interest and penalty | -5.2 | 0.9 | ' |
Foreign currency impact on gross unrecognized tax benefit (including interest and penalties) which increased (decreased) Other comprehensive income (loss) | 0.2 | -0.2 | 0.2 |
Expected gross unrecognized tax benefits to be reduced within the next 12 months | 1.6 | ' | ' |
FIN 48 | ' | ' | ' |
Unrecognized tax benefits, income tax penalties and interest accrued: | ' | ' | ' |
Foreign currency impact on gross unrecognized tax benefit (including interest and penalties) which increased (decreased) Other comprehensive income (loss) | $0.70 | ($0.50) | $0.30 |
Employee_Benefits_Defined_Cont
Employee Benefits, Defined Contribution Plans (Details) (Defined Contribution Plan, USD $) | 12 Months Ended |
Dec. 31, 2013 | |
productionfacilities | |
Hourly bargaining unit employees | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Number of production facilities | 7 |
Hourly bargaining unit employees | Fixed rate contributions | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Number of production facilities | 3 |
Hourly bargaining unit employees | Concurrent match | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Number of production facilities | 1 |
Hourly bargaining unit employees | Fixed rate and concurrent match | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Number of production facilities | 2 |
Hourly bargaining unit employees | No contributions required | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Number of production facilities | 1 |
Salaried and certain hourly employee | Concurrent match | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Defined contribution plan employer concurrent match percentage | 4.00% |
Hired on or after January 1, 2004 | Hourly bargaining unit employees | Fixed rate contributions | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Defined contribution plan annual employer contribution percentage | 2.00% |
Hired on or after January 1, 2004 | Salaried and certain hourly employee | Fixed rate contributions | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Defined contribution plan annual employer contribution percentage | 2.00% |
Minimum | Hourly bargaining unit employees | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Estimated annual contribution to pension and other postretirement benefit plans | 1,000,000 |
Minimum | Hourly bargaining unit employees | Fixed rate contributions | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Defined contribution plan annual employer contribution | 800 |
Minimum | Salaried and certain hourly employee | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Estimated annual contribution to pension and other postretirement benefit plans | 5,000,000 |
Minimum | Hired prior to January 1, 2004 | Hourly bargaining unit employees | Fixed rate contributions | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Defined contribution plan annual employer contribution percentage | 2.00% |
Minimum | Hired prior to January 1, 2004 | Salaried and certain hourly employee | Fixed rate contributions | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Defined contribution plan annual employer contribution percentage | 2.00% |
Maximum | Hourly bargaining unit employees | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Estimated annual contribution to pension and other postretirement benefit plans | 3,000,000 |
Maximum | Hourly bargaining unit employees | Fixed rate contributions | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Defined contribution plan annual employer contribution | 2,400 |
Maximum | Salaried and certain hourly employee | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Estimated annual contribution to pension and other postretirement benefit plans | 7,000,000 |
Maximum | Hired prior to January 1, 2004 | Hourly bargaining unit employees | Fixed rate contributions | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Defined contribution plan annual employer contribution percentage | 10.00% |
Maximum | Hired prior to January 1, 2004 | Salaried and certain hourly employee | Fixed rate contributions | ' |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | ' |
Defined contribution plan annual employer contribution percentage | 10.00% |
Employee_Benefits_Defined_Bene
Employee Benefits, Defined Benefit Plans (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Postretirement Medical Obligations | ' | ' | ' | |||
Accrued annual VEBA contribution | $16 | $20 | ' | |||
Benefit Obligations and Funded Status Additional Disclosure | ' | ' | ' | |||
Net asset In respect of VEBAs | 406 | 365.9 | ' | |||
Net liability in respect of VEBA | 0 | 5.3 | ' | |||
Estimated future benefit payments | ' | ' | ' | |||
Expected future benefit payments, 2014 | 27.6 | ' | ' | |||
Expected future benefit payments, 2015 | 27.5 | ' | ' | |||
Expected future benefit payments, 2016 | 27.2 | ' | ' | |||
Expected future benefit payments, 2017 | 26.9 | ' | ' | |||
Expected future benefit payments, 2018 | 26.6 | ' | ' | |||
Expected future benefit payments, 2019-2023 | 125.9 | ' | ' | |||
Components of Net Periodic Benefit Cost (Income) | ' | ' | ' | |||
Net periodic benefit costs (income) | -22 | -11.5 | -5.7 | |||
Canadian pension plan | ' | ' | ' | |||
Assumptions used to determine benefit obligations | ' | ' | ' | |||
Discount rate | 4.90% | 4.40% | ' | |||
Rate of compensation increase | 3.00% | 3.00% | ' | |||
Assumptions used to determine net periodic benefit cost (income) | ' | ' | ' | |||
Discount rate | 4.40% | 5.60% | 5.70% | |||
Expected long-term return on plan assets | 4.50% | 4.60% | 5.40% | |||
Rate of compensation increase | 3.00% | 3.00% | 3.50% | |||
Change in Benefit Obligation: | ' | ' | ' | |||
Obligation at beginning of year | 7 | 5.4 | ' | |||
Foreign currency translation adjustment | -0.5 | 0.2 | ' | |||
Service cost | 0.3 | 0.2 | 0.2 | |||
Interest cost | 0.3 | 0.3 | 0.3 | |||
Actuarial (gain) loss | -0.2 | 1.1 | ' | |||
Plan participant contributions | 0 | 0.1 | ' | |||
Benefits paid by Company | -0.3 | -0.3 | ' | |||
Obligation at end of year | 6.6 | 7 | 5.4 | |||
Change in Plan Assets: | ' | ' | ' | |||
FMV of plan assets at beginning of year | 5.7 | 4.9 | ' | |||
Foreign currency translation adjustment | -0.4 | 0.2 | ' | |||
Actual return on assets | 0.7 | 0.3 | ' | |||
Plan participant contributions | 0 | 0.1 | ' | |||
Employer/Company contributions | 0.5 | 0.5 | ' | |||
Benefits paid by Company | -0.3 | -0.3 | ' | |||
FMV of plan assets at end of year | 6.2 | 5.7 | 4.9 | |||
Net Funded Status | -0.4 | -1.3 | ' | |||
Net Funded Status | ' | ' | ' | |||
Accumulated plan benefit obligation | -5.8 | -6.2 | ' | |||
Plan assets | 6.2 | 5.7 | 4.9 | |||
Net Funded Status | -0.4 | -1.3 | ' | |||
Net benefits expected to be contributed in 2014 | 0.5 | ' | ' | |||
Estimated future benefit payments | ' | ' | ' | |||
Expected future benefit payments, 2014 | 0.2 | ' | ' | |||
Expected future benefit payments, 2015 | 0.3 | ' | ' | |||
Expected future benefit payments, 2016 | 0.3 | ' | ' | |||
Expected future benefit payments, 2017 | 0.3 | ' | ' | |||
Expected future benefit payments, 2018 | 0.3 | ' | ' | |||
Expected future benefit payments, 2019-2023 | 2 | ' | ' | |||
Accumulated other comprehensive (loss) income | ' | ' | ' | |||
Accumulated net actuarial losses | -1.8 | -2.8 | ' | |||
Transition assets | 0.2 | 0.3 | ' | |||
Loss recognized in Accumulated other comprehensive (loss) | -1.6 | -2.5 | ' | |||
Amounts in Accumulated other comprehensive (loss) income expected to be recognized in 2014 | ' | ' | ' | |||
Future amortization of prior service cost | 0.1 | ' | ' | |||
Components of Net Periodic Benefit Cost (Income) | ' | ' | ' | |||
Service cost | 0.3 | 0.2 | 0.2 | |||
Interest cost | 0.3 | 0.3 | 0.3 | |||
Expected return on plan assets | -0.3 | -0.2 | -0.3 | |||
Amortization of prior service cost | 0 | 0 | 0 | |||
Amortization of net actuarial loss | 0.2 | 0.1 | 0.1 | |||
Net periodic benefit costs (income) | 0.5 | 0.4 | 0.3 | |||
Canadian pension plan | London, Ontario Facility | Equity Securities | ' | ' | ' | |||
Defined Benefit Plan at the London, Ontario Facility, Information About Plan Assets | ' | ' | ' | |||
Actual plan asset allocations | 65.00% | ' | ' | |||
Asset mix target allocation on long-term investments | 62.00% | ' | ' | |||
Canadian pension plan | London, Ontario Facility | Fixed Income Securities | ' | ' | ' | |||
Defined Benefit Plan at the London, Ontario Facility, Information About Plan Assets | ' | ' | ' | |||
Actual plan asset allocations | 31.00% | ' | ' | |||
Asset mix target allocation on long-term investments | 34.00% | ' | ' | |||
VEBAs | ' | ' | ' | |||
Postretirement Medical Obligations | ' | ' | ' | |||
Cash flow in determining VEBA obligation | 20 | ' | ' | |||
Change in Benefit Obligation: | ' | ' | ' | |||
Obligation at beginning of year | 384.1 | 446.9 | ' | |||
Foreign currency translation adjustment | 0 | 0 | ' | |||
Service cost | 2.5 | 3.4 | 2.2 | |||
Interest cost | 14.6 | 17.9 | 17.4 | |||
Actuarial (gain) loss | -7.3 | [1] | -66.2 | [1] | ' | |
Plan participant contributions | 0 | 0 | ' | |||
Benefits paid by VEBA | -21.5 | -20.8 | ' | |||
Reimbursement from Retiree Drug Subsidy | 2.3 | [2] | 2.9 | [2] | ' | |
Obligation at end of year | 374.7 | 384.1 | 446.9 | |||
Change in Plan Assets: | ' | ' | ' | |||
FMV of plan assets at beginning of year | 744.7 | 571 | ' | |||
Foreign currency translation adjustment | 0 | 0 | ' | |||
Actual return on assets | 39.2 | 63 | ' | |||
Plan participant contributions | 0 | 0 | ' | |||
Employer/Company contributions | 16 | [3] | 20 | [3] | ' | |
Benefits paid by VEBA | -21.5 | -20.8 | ' | |||
Reimbursement from Retiree Drug Subsidy | 2.3 | [2] | 2.9 | [2] | ' | |
FMV of plan assets at end of year | 780.7 | 744.7 | 571 | |||
Net Funded Status | 406 | [4] | 360.6 | [4] | ' | |
Benefit Obligations and Funded Status Additional Disclosure | ' | ' | ' | |||
Actuarial gain due to a decrease in discount rate | 30.5 | ' | ' | |||
Actuarial gain due to higher than expected mortality rate | ' | 16.2 | ' | |||
Actuarial loss resulting from an increase in existing benefits reimbursement rates | 20.8 | ' | ' | |||
Actuarial loss resulting from a decrease in discount rates used to determine benefit obligations | ' | 9.7 | ' | |||
Net Funded Status | ' | ' | ' | |||
Accumulated plan benefit obligation | -374.7 | -384.1 | ' | |||
Plan assets | 780.7 | 744.7 | 571 | |||
Net Funded Status | 406 | [4] | 360.6 | [4] | ' | |
Estimated future benefit payments | ' | ' | ' | |||
Expected future benefit payments, 2014 | 30.5 | [5] | ' | ' | ||
Expected future benefit payments, 2015 | 30.5 | [5] | ' | ' | ||
Expected future benefit payments, 2016 | 30.3 | [5] | ' | ' | ||
Expected future benefit payments, 2017 | 30.1 | [5] | ' | ' | ||
Expected future benefit payments, 2018 | 29.8 | [5] | ' | ' | ||
Expected future benefit payments, 2019-2023 | 142.5 | [5] | ' | ' | ||
Accumulated other comprehensive (loss) income | ' | ' | ' | |||
Accumulated net actuarial losses | -0.5 | -3.2 | ' | |||
Prior service cost | -32.7 | -36.9 | ' | |||
Loss recognized in Accumulated other comprehensive (loss) | -33.2 | -40.1 | ' | |||
Amounts in Accumulated other comprehensive (loss) income expected to be recognized in 2014 | ' | ' | ' | |||
Amounts in Accumulated other comprehensive (loss) income expected to be recognized in 2014 | 5.2 | ' | ' | |||
Future amortization of prior service cost | 4.1 | ' | ' | |||
Future amortization of actuarial loss | -1.1 | ' | ' | |||
Components of Net Periodic Benefit Cost (Income) | ' | ' | ' | |||
Service cost | 2.5 | 3.4 | 2.2 | |||
Interest cost | 14.6 | 17.9 | 17.4 | |||
Expected return on plan assets | -45.1 | -40.4 | -30.4 | |||
Amortization of prior service cost | 4.2 | [6] | 4.2 | [6] | 4.2 | [6] |
Amortization of net actuarial loss | 1.3 | 3 | 0.6 | |||
Net periodic benefit costs (income) | -22.5 | -11.9 | -6 | |||
VEBAs | Maximum | ' | ' | ' | |||
Postretirement Medical Obligations | ' | ' | ' | |||
Administrative expense obligation | 0.3 | ' | ' | |||
Variable cash contribution obligation to VEBAs | 20 | ' | ' | |||
VEBAs | Annual Cash Flows up to $20 Million | ' | ' | ' | |||
Postretirement Medical Obligations | ' | ' | ' | |||
Postretirement medical plan contribution obligation percentage | 10.00% | ' | ' | |||
VEBAs | Annual Cash Flows in Excess of $20 Million | ' | ' | ' | |||
Postretirement Medical Obligations | ' | ' | ' | |||
Postretirement medical plan contribution obligation percentage | 20.00% | ' | ' | |||
Union VEBA | ' | ' | ' | |||
Postretirement Medical Obligations | ' | ' | ' | |||
Number of trustees | 4 | ' | ' | |||
Percent allocation of total contribution between VEBAs | 85.50% | ' | ' | |||
Accrued annual VEBA contribution | 13.7 | ' | ' | |||
Assumptions used to determine benefit obligations | ' | ' | ' | |||
Discount rate | 4.70% | 4.00% | ' | |||
Initial medical trend rate | 7.50% | [7] | 8.00% | [7] | ' | |
Ultimate medical trend rate | 5.00% | [7],[8] | 5.00% | [7],[8] | 5.00% | [8] |
Year that rate reaches ultimate trend rate | '2019 | '2019 | '2019 | |||
Effect of one-percentage-point increase in medical trend rate on accumulated postretirement benefit obligation | 27.8 | 41.1 | ' | |||
Effect of one-percentage-point decrease in medical trend rate on accumulated postretirement benefit obligation | 22.7 | 33.4 | ' | |||
Assumptions used to determine net periodic benefit cost (income) | ' | ' | ' | |||
Discount rate | 4.00% | 4.20% | 5.25% | |||
Expected long-term return on plan assets | 6.25% | [9] | 7.25% | [9] | 6.00% | [9] |
Initial medical trend rate | 8.00% | [8] | 8.50% | [8] | 9.00% | [8] |
Ultimate medical trend rate | 5.00% | [7],[8] | 5.00% | [7],[8] | 5.00% | [8] |
Year that rate reaches ultimate trend rate | '2019 | '2019 | '2019 | |||
Effect of one-percentage-point increase on service and interest cost components | 2 | 2.5 | 2.7 | |||
Effect of one-percentage-point decrease on service and interest cost components | 1.5 | 2 | 2.1 | |||
Change in Plan Assets: | ' | ' | ' | |||
FMV of plan assets at beginning of year | 685.3 | ' | ' | |||
Sale of Company's common stock by Union VEBA | 0 | 108.6 | ' | |||
FMV of plan assets at end of year | 717.5 | 685.3 | ' | |||
Net Funded Status | 404.8 | 365.9 | ' | |||
Benefit Obligations and Funded Status Additional Disclosure | ' | ' | ' | |||
Actuarial gain due to lower than expected drug claim costs | 54.9 | 42.2 | ' | |||
Actuarial gain due to higher than expected mortality rate | 8 | ' | ' | |||
Actuarial loss due to the addition of a new healthcare premium reimbursement benefit starting in 2014 | 63.8 | ' | ' | |||
Actuarial loss due to changes in administrative costs | 2.7 | ' | ' | |||
Actuarial gain due to a change in participant marital status assumption | ' | 9.6 | ' | |||
Prescription drug benefit retiree drug subsidy percentage | 28.00% | ' | ' | |||
Net Funded Status | ' | ' | ' | |||
Accumulated plan benefit obligation | -312.7 | -319.4 | ' | |||
Plan assets | 717.5 | 685.3 | ' | |||
Net Funded Status | 404.8 | 365.9 | ' | |||
Anticipated Retiree Drug Subsidy | ' | ' | ' | |||
Anticipated Retiree Drug Subsidy, 2014 | -3.1 | [5] | ' | ' | ||
Anticipated Retiree Drug Subsidy, 2015 | -3.3 | [5] | ' | ' | ||
Anticipated Retiree Drug Subsidy, 2016 | -3.4 | [5] | ' | ' | ||
Anticipated Retiree Drug Subsidy, 2017 | -3.5 | [5] | ' | ' | ||
Anticipated Retiree Drug Subsidy, 2018 | -3.5 | [5] | ' | ' | ||
Anticipated Retiree Drug Subsidy, 2019-2023 | -18.6 | [5] | ' | ' | ||
Union VEBA | Company Appointed | ' | ' | ' | |||
Postretirement Medical Obligations | ' | ' | ' | |||
Number of trustees | 2 | ' | ' | |||
Union VEBA | USW Appointed | ' | ' | ' | |||
Postretirement Medical Obligations | ' | ' | ' | |||
Number of trustees | 2 | ' | ' | |||
Salaried VEBA | ' | ' | ' | |||
Postretirement Medical Obligations | ' | ' | ' | |||
Percent allocation of total contribution between VEBAs | 14.50% | ' | ' | |||
Accrued annual VEBA contribution | 2.3 | ' | ' | |||
Assumptions used to determine benefit obligations | ' | ' | ' | |||
Discount rate | 4.20% | 3.40% | ' | |||
Assumptions used to determine net periodic benefit cost (income) | ' | ' | ' | |||
Discount rate | 3.40% | 3.75% | 4.70% | |||
Expected long-term return on plan assets | 7.25% | [9] | 7.25% | [9] | 7.25% | [9] |
Change in Plan Assets: | ' | ' | ' | |||
FMV of plan assets at beginning of year | 59.4 | ' | ' | |||
FMV of plan assets at end of year | 63.2 | 59.4 | ' | |||
Net Funded Status | 1.2 | -5.3 | ' | |||
Benefit Obligations and Funded Status Additional Disclosure | ' | ' | ' | |||
Actuarial gain due to change in assumption for annual benefit utilization | ' | 11 | ' | |||
Net Funded Status | ' | ' | ' | |||
Accumulated plan benefit obligation | -62 | -64.7 | ' | |||
Plan assets | 63.2 | 59.4 | ' | |||
Net Funded Status | 1.2 | -5.3 | ' | |||
Variable cash contribution | VEBAs | ' | ' | ' | |||
Postretirement Medical Obligations | ' | ' | ' | |||
Annual VEBA contribution paid | $20 | ' | ' | |||
[1] | The actuarial gain relating to the VEBA plans in 2013 was primarily comprised of (i) a gain of $54.9 due to projected lower drug claim cost in the future because of lower than expected drug claim costs in 2013 in the Union VEBA, (ii) a gain of $30.5 due to a decrease in discount rates used to determine benefit obligations for both VEBAs, (iii) a gain of $8.0 primarily due to a higher than expected mortality rate in the Union VEBA, partially offset by (iv) a loss of $63.8 due to the addition of a new healthcare premium reimbursement benefit starting in 2014 in the Union VEBA, (v) a loss of $20.8 resulting from an increase in the existing benefits reimbursement rates starting in 2014 for plan participants in both VEBAs, and (vi) a loss of $2.7 primarily due to an increase in administrative cost in the Union VEBA. The actuarial gain relating to the VEBA plans in 2012 was primarily comprised of (i) a gain of $42.2 due to lower than expected prescription drug claim cost and a change in retiree drug subsidy assumption in 2012 in the Union VEBA, (ii) a gain of $16.2 due to changes in census data for both VEBA plans, (iii) a gain of $9.6 relating to a change in the participant marital status assumption in the Union VEBA and (iv) a gain of $11.0 relating to a change in the assumption for annual benefit utilization per participant in the Salaried VEBA, partially offset by a loss of $9.7 due to a decrease in discount rates used to determine benefit obligations for both VEBA plans. | |||||
[2] | The Union VEBA is eligible for the retiree drug subsidy of the Medicare Modernization Act that went into effect January 1, 2006 equal to 28% of allowable drug costs. As a result, the Company has measured the Union VEBA’s obligations and costs to take into account this subsidy. | |||||
[3] | The Company accrued a liability for a variable cash contribution of $16.0 to the VEBAs with respect to calendar year 2013, which will be paid in the first quarter of 2014. The Company accrued a liability for a variable cash contribution of $20.0 to the VEBAs with respect to calendar year 2012, which was paid in the first quarter of 2013. | |||||
[4] | Prepaid benefit of $406.0 relating to the VEBAs at December 31, 2013 was presented as Net asset in respect of VEBAs on the Consolidated Balance Sheet. With respect to the Prepaid benefit of $360.6 relating to the VEBAs at December 31, 2012, $365.9 was included in Net asset in respect of VEBA and $5.3 was included in Net liability in respect of VEBA on the Consolidated Balance Sheets. | |||||
[5] | Such amounts were obtained from the VEBAs. The Company's only financial obligations to the VEBAs are to pay the variable contributions, which may not exceed $20.0 annually, and certain administrative fees. | |||||
[6] | The Company amortizes prior service cost on a straight-line basis over the average remaining years of service to full eligibility for benefits of the active plan participants. | |||||
[7] | The medical trend rate assumptions used for the Union VEBA were provided by the Union VEBA and certain industry data were provided by the Company's actuaries. The trend rate is assumed to decline to 5% by 2019 at each of December 31, 2013 and December 31, 2012. A one-percentage-point increase in the assumed medical trend rates would increase the accumulated postretirement benefit obligation of the Union VEBA by $27.8 and $41.1 at December 31, 2013 and December 31, 2012, respectively. A one-percentage-point decrease in the assumed medical trend rates would decrease the accumulated postretirement benefit obligation of the Union VEBA by $22.7 and $33.4 at December 31, 2013 and December 31, 2012, respectively. | |||||
[8] | The medical trend rate assumptions used for the Union VEBA, which is currently paying certain prescription drug benefits, were provided by the Union VEBA and certain industry data were provided by the Company's actuaries. The trend rate is assumed to decline to 5% by 2019 for each of 2013, 2012 and 2011. A one-percentage-point increase in the assumed medical trend rates would increase the aggregate of the service and interest cost components of net periodic benefit costs by $2.0, $2.5 and $2.7 for 2013, 2012 and 2011, respectively. A one-percentage-point decrease in the assumed medical trend rates would decrease the aggregate of the service and interest cost components of net periodic benefit costs by $1.5, $2.0, and $2.1 for 2013, 2012 and 2011, respectively. | |||||
[9] | The expected long-term rate of return assumption is based on the targeted investment portfolios provided to the Company by the VEBAs’ trustees. |
Employee_Benefits_Net_Periodic
Employee Benefits, Net Periodic Benefit Costs and Charges Relating To Other Benefit Plans(Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Periodic Benefit Costs and Charges Relating to Other Benefit Plans | ' | ' | ' |
Non-cash net periodic benefit income | ($22) | ($11.50) | ($5.70) |
Deferred compensation plan | 1.2 | 0.9 | 0.2 |
Defined contribution plans | 7.9 | 7.6 | 7.1 |
Total | -12.9 | -3 | 1.6 |
Fabricated Products | ' | ' | ' |
Net Periodic Benefit Costs and Charges Relating to Other Benefit Plans | ' | ' | ' |
Total | 8 | 7.4 | 6.4 |
All Other | ' | ' | ' |
Net Periodic Benefit Costs and Charges Relating to Other Benefit Plans | ' | ' | ' |
Total | -20.9 | -10.4 | -4.8 |
Canadian pension plan | ' | ' | ' |
Net Periodic Benefit Costs and Charges Relating to Other Benefit Plans | ' | ' | ' |
Non-cash net periodic benefit income | 0.5 | 0.4 | 0.3 |
VEBAs | ' | ' | ' |
Net Periodic Benefit Costs and Charges Relating to Other Benefit Plans | ' | ' | ' |
Non-cash net periodic benefit income | ($22.50) | ($11.90) | ($6) |
Multiemployer_Pension_Plans_De
Multiemployer Pension Plans (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||
Multiemployer Pension Plan Disclosure | ' | ' | ' | |||
Percentage of employees participating in multiemployer pension plans to total employees | 55.00% | ' | ' | |||
Contributions of the Company | $3,800,000 | $3,900,000 | $3,600,000 | |||
Company's contributions to the multiemployer plans is less than | ' | 5.00% | ' | |||
USW Plan | ' | ' | ' | |||
Multiemployer Pension Plan Disclosure | ' | ' | ' | |||
Employer Identification Number | '236648508 | ' | ' | |||
Pension Protection Act Zone Status | ' | 'Green | [1] | 'Green | [1] | |
FIP/RP Status Pending/Implemented in 2013 | 'No | [2] | ' | ' | ||
Contributions of the Company | 2,900,000 | [3] | 3,000,000 | [3] | 2,600,000 | [3] |
Surcharge Imposed in 2013 | 'No | ' | ' | |||
Expiration Date of Collective-Bargaining Agreement, First | 31-Mar-14 | ' | ' | |||
Expiration Date of Collective-Bargaining Agreement, Last | 30-Nov-17 | ' | ' | |||
Number of collective-bargaining agreements | 3 | ' | ' | |||
USW Plan | Newark, Ohio and Spokane (Trentwood), Washington Facilities | ' | ' | ' | |||
Multiemployer Pension Plan Disclosure | ' | ' | ' | |||
Percentage of employees covered by bargaining agreement | 89.00% | ' | ' | |||
USW Plan | Newark, Ohio and Spokane (Trentwood), Washington Facilities | Starting July 2010 Until July 2015 | ' | ' | ' | |||
Multiemployer Pension Plan Disclosure | ' | ' | ' | |||
Monthly contributions per hour worked by each bargaining unit employee | 1.25 | ' | ' | |||
USW Plan | Newark, Ohio and Spokane (Trentwood), Washington Facilities | Starting July 2015 | ' | ' | ' | |||
Multiemployer Pension Plan Disclosure | ' | ' | ' | |||
Monthly contributions per hour worked by each bargaining unit employee | 1.5 | ' | ' | |||
USW Plan | Richmond (Bellwood), Virginia Facility | ' | ' | ' | |||
Multiemployer Pension Plan Disclosure | ' | ' | ' | |||
Percentage of employees covered by bargaining agreement | 7.00% | ' | ' | |||
USW Plan | Florence, Alabama Facility | ' | ' | ' | |||
Multiemployer Pension Plan Disclosure | ' | ' | ' | |||
Percentage of employees covered by bargaining agreement | 4.00% | ' | ' | |||
Other Funds | ' | ' | ' | |||
Multiemployer Pension Plan Disclosure | ' | ' | ' | |||
Contributions of the Company | 900,000 | [4] | 900,000 | [4] | 1,000,000 | [4] |
Multiemployer Pension Plans | Minimum | ' | ' | ' | |||
Multiemployer Pension Plan Disclosure | ' | ' | ' | |||
Estimated annual contribution to pension and other postretirement benefit plans | 3,000,000 | ' | ' | |||
Multiemployer Pension Plans | Maximum | ' | ' | ' | |||
Multiemployer Pension Plan Disclosure | ' | ' | ' | |||
Estimated annual contribution to pension and other postretirement benefit plans | $5,000,000 | ' | ' | |||
[1] | The most recent Pension Protection Act zone status available in 2013 and 2012 for the Steelworkers Pension Trust is for the plan's year-end at December 31, 2012 and December 31, 2011, respectively. The zone status is based on information that the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the green zone are at least 80 percent funded. | |||||
[2] | The “FIP/RP Status Pending/Implemented†column indicates if a Financial Improvement Plan (FIP) or a Rehabilitation Plan (RP) is either pending or has been implemented for the plan under the Pension Protection Act. | |||||
[3] | The Company is party to three USW collective-bargaining agreements that require contributions to the Steelworkers Pension Trust. Current USW collective bargaining agreements covering employees at the Newark, Ohio and Spokane (Trentwood), Washington facilities covers 89% of the Company's USW-represented employees and expires in September 2015. The Company's monthly contributions per hour worked by each bargaining unit employee at the Newark, Ohio and Spokane (Trentwood), Washington facilities are (in whole dollars) $1.25 and will increase to (in whole dollars) $1.50 in July 2015. The union contracts covering employees at the Richmond (Bellwood), Virginia facility and Florence, Alabama facility cover 7% and 4% of the Company's USW-represented employees, respectively, and expire in November 2017 and March 2014, respectively. | |||||
[4] | Other Funds consists of plans that are not individually significant. |
Employee_Incentive_Plans_Short
Employee Incentive Plans, Short Term Incentive Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' |
EVA measurement period | '1 year | ' | ' |
Compensation charges associated with STI Plans | ' | ' | ' |
Costs recorded in connection with STI plans | $15.70 | $14.40 | $8.40 |
Fabricated Products | ' | ' | ' |
Compensation charges associated with STI Plans | ' | ' | ' |
Costs recorded in connection with STI plans | 11.2 | 9.9 | 5.9 |
All Other | ' | ' | ' |
Compensation charges associated with STI Plans | ' | ' | ' |
Costs recorded in connection with STI plans | 4.5 | 4.5 | 2.5 |
Cost of products sold, excluding depreciation and amortization and other items | ' | ' | ' |
Compensation charges associated with STI Plans | ' | ' | ' |
Costs recorded in connection with STI plans | 4.6 | 4.3 | 3.2 |
Selling, administrative, research and development, and general | ' | ' | ' |
Compensation charges associated with STI Plans | ' | ' | ' |
Costs recorded in connection with STI plans | $11.10 | $10.10 | $5.20 |
Employee_Incentive_Plans_Long_
Employee Incentive Plans, Long term Incentive Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Number of common shares authorized for issuance under Equity Incentive Plan | 2,722,222 | ' | ' |
Number of common shares available for additional awards under Equity Incentive Plan | 840,693 | ' | ' |
Non-cash compensation expense | $6.60 | $5.60 | $5.20 |
Recognized tax benefit relating to non-cash compensation expense | 2.4 | 2.1 | 2 |
Summary of Activity | ' | ' | ' |
Total grant-date fair value for shares granted | 14.8 | 13.9 | 12.8 |
Total grant-date fair value for shares that vested | 5.1 | 3.5 | 6.3 |
Stock Options | ' | ' | ' |
Fully-vested options outstanding | 20,791 | 20,791 | ' |
Exercise price of options to purchase common stock | $80.01 | $80.01 | ' |
Remaining contractual life of options outstanding | '3 years 3 months | '4 years 3 months | ' |
Grant date fair value of options outstanding | $39.90 | ' | ' |
Stock options granted | 0 | 0 | ' |
Stock options forfeited | 0 | 0 | ' |
Stock options expired | 0 | 0 | ' |
Stock options exercised | 0 | 0 | ' |
Vested Stock | ' | ' | ' |
Common shares granted to non-employee directors | 0.2 | 0.2 | 0.2 |
Common shares withheld and canceled | 40,075 | 45,801 | 62,637 |
Fabricated Products | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Non-cash compensation expense | 2.2 | 1.7 | 1.5 |
All Other | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Non-cash compensation expense | 4.4 | 3.9 | 3.7 |
Non-vested common shares | ' | ' | ' |
Summary of Activity | ' | ' | ' |
Outstanding Beginning Balance, Shares/Units | 158,684 | ' | ' |
Outstanding Beginning Balance, Weighted-Average Grant-Date Fair Value per Share | $42.47 | ' | ' |
Granted, shares/units | 76,336 | ' | ' |
Granted, Weighted-Average Grant-Date Fair Value per Share | $58.65 | ' | ' |
Vested, shares/units | -90,233 | ' | ' |
Vested, Weighted-Average Grant-Date Fair Value per Share | $42.31 | ' | ' |
Forfeited, shares/units | -820 | ' | ' |
Forfeited, Weighted-Average Grant-Date Fair Value per Share | $53 | ' | ' |
Canceled, shares/units | 0 | ' | ' |
Canceled, Weighted-Average Grant-Date Fair Value per Share | $0 | ' | ' |
Outstanding Ending Balance, Shares/Units | 143,967 | ' | ' |
Outstanding Ending Balance, Weighted-Average Grant-Date Fair Value per Share | $51.09 | ' | ' |
Restricted stock units (RSUs) | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Number of common share received by the employee on vesting of restricted stock unit | 1 | ' | ' |
Summary of Activity | ' | ' | ' |
Outstanding Beginning Balance, Shares/Units | 5,183 | ' | ' |
Outstanding Beginning Balance, Weighted-Average Grant-Date Fair Value per Share | $43.99 | ' | ' |
Granted, shares/units | 2,600 | ' | ' |
Granted, Weighted-Average Grant-Date Fair Value per Share | $57.70 | ' | ' |
Vested, shares/units | -2,311 | ' | ' |
Vested, Weighted-Average Grant-Date Fair Value per Share | $42.74 | ' | ' |
Forfeited, shares/units | 0 | ' | ' |
Forfeited, Weighted-Average Grant-Date Fair Value per Share | $0 | ' | ' |
Canceled, shares/units | 0 | ' | ' |
Canceled, Weighted-Average Grant-Date Fair Value per Share | $0 | ' | ' |
Outstanding Ending Balance, Shares/Units | 5,472 | ' | ' |
Outstanding Ending Balance, Weighted-Average Grant-Date Fair Value per Share | $51.03 | ' | ' |
Service-based non-vested common shares and restricted stock units | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Non-cash compensation expense | 4.3 | 3.8 | 4.1 |
Unrecognized gross compensation costs, by award type | 3.8 | ' | ' |
Expected period (in years) over which the remaining gross compensation costs will be recognized, by award type | '1 year 6 months | ' | ' |
Performance shares | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' |
Performance award vesting period, years | '3 years | ' | ' |
Non-cash compensation expense | 2.3 | 1.8 | 1.1 |
Unrecognized gross compensation costs, by award type | $4.80 | ' | ' |
Expected period (in years) over which the remaining gross compensation costs will be recognized, by award type | '1 year 10 months 10 days | ' | ' |
Summary of Activity | ' | ' | ' |
Outstanding Beginning Balance, Shares/Units | 583,950 | ' | ' |
Outstanding Beginning Balance, Weighted-Average Grant-Date Fair Value per Share | $41.78 | ' | ' |
Granted, shares/units | 175,317 | ' | ' |
Granted, Weighted-Average Grant-Date Fair Value per Share | $57.75 | ' | ' |
Vested, shares/units | -34,192 | ' | ' |
Vested, Weighted-Average Grant-Date Fair Value per Share | $34.84 | ' | ' |
Forfeited, shares/units | 0 | ' | ' |
Forfeited, Weighted-Average Grant-Date Fair Value per Share | $0 | ' | ' |
Canceled, shares/units | -162,521 | ' | ' |
Canceled, Weighted-Average Grant-Date Fair Value per Share | $34.58 | ' | ' |
Outstanding Ending Balance, Shares/Units | 562,554 | 583,950 | ' |
Outstanding Ending Balance, Weighted-Average Grant-Date Fair Value per Share | $49.26 | $41.78 | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies, Commitments (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Minimum rental commitments | ' | ' | ' |
Rental expense | $7.50 | $10 | $10 |
Minimum rental commitments, 2014 | 4.7 | ' | ' |
Minimum rental commitments, 2015 | 4 | ' | ' |
Minimum rental commitments, 2016 | 2.9 | ' | ' |
Minimum rental commitments, 2017 | 2.1 | ' | ' |
Minimum rental commitments, 2018 | 2 | ' | ' |
Minimum rental commitments, 2019 and thereafter | 29.4 | ' | ' |
Purchase obligations | ' | ' | ' |
Purchase Obligation, 2014 | 278.5 | ' | ' |
Purchase Obligation, 2015 | 4.9 | ' | ' |
Purchase Obligation, 2016 | 0.4 | ' | ' |
Purchase Obligation, 2017 | 0.4 | ' | ' |
Purchase Obligation, 2018 | 0.4 | ' | ' |
Purchase Obligation, 2019 and thereafter | $1.90 | ' | ' |
Commitments_and_Contingencies_2
Commitments and Contingencies, Environmental Contingencies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accrual for Environmental Loss Contingencies, Gross, Fiscal Year Maturity | ' | ' | ' |
Environmental accrual | $22.80 | $21.70 | $22 |
Expected period related to remediation expenditures for environmental contingencies | '30 years | ' | ' |
Estimated environmental contingency loss exposure in excess of current accrual | 25 | ' | ' |
Time period within which Company's recorded estimate of its obligation may change | '12 months | ' | ' |
Accrual for Environmental Loss Contingencies | ' | ' | ' |
Beginning balance | 21.7 | 22 | 20.2 |
Additional accruals | 4.5 | 1.2 | 3.9 |
Less expenditures | -3.4 | -1.5 | -2.1 |
Ending balance | $22.80 | $21.70 | $22 |
Minimum | ' | ' | ' |
Accrual for Environmental Loss Contingencies, Gross, Fiscal Year Maturity | ' | ' | ' |
Period for feasibility study completion | '18 months | ' | ' |
Maximum | ' | ' | ' |
Accrual for Environmental Loss Contingencies, Gross, Fiscal Year Maturity | ' | ' | ' |
Period for feasibility study completion | '24 months | ' | ' |
Derivative_Financial_Instrumen2
Derivative Financial Instruments and Related Hedging Programs, Hedging Discussion (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 29, 2010 |
mmlbs | mmlbs | mmlbs | 2014 | 2015 | Convertible Notes | |
mmlbs | mmlbs | |||||
Derivative Financial Instruments and Related Hedging Programs (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' |
Aggregate fair value of derivative instruments in a net liability position | ($1.60) | ' | ' | ' | ' | ' |
Total fabricated products shipments containing fixed price terms | 119.8 | 178.8 | 157 | ' | ' | ' |
Firm price customer sales contracts containing price risk on anticipated purchases of primary aluminum | ' | ' | ' | 62 | 2.3 | ' |
Principal amount of notes | $225 | $225 | ' | ' | ' | $175 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments and Related Hedging Programs, Realized and Unrealized Gains and Losses Table (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary Of Realized And Unrealized Gains Losses | ' | ' | ' |
Unrealized gains (losses) | $3.90 | $16 | ($25.90) |
Not Designated as Hedging Instrument | ' | ' | ' |
Summary Of Realized And Unrealized Gains Losses | ' | ' | ' |
Realized (losses) gains | -6.5 | -19.1 | 4.4 |
Unrealized gains (losses) | 3.9 | 16 | -25.9 |
Not Designated as Hedging Instrument | Aluminum | ' | ' | ' |
Summary Of Realized And Unrealized Gains Losses | ' | ' | ' |
Realized (losses) gains | -5.5 | -9 | 9.6 |
Unrealized gains (losses) | -3.1 | 10.1 | -26.5 |
Not Designated as Hedging Instrument | Natural Gas | ' | ' | ' |
Summary Of Realized And Unrealized Gains Losses | ' | ' | ' |
Realized (losses) gains | -1.8 | -6.7 | -5.2 |
Unrealized gains (losses) | 2.6 | 4.3 | -1.6 |
Not Designated as Hedging Instrument | Electricity | ' | ' | ' |
Summary Of Realized And Unrealized Gains Losses | ' | ' | ' |
Realized (losses) gains | 0.8 | -3.4 | 0 |
Unrealized gains (losses) | 1.1 | 0.8 | -1.8 |
Not Designated as Hedging Instrument | Foreign Currency | ' | ' | ' |
Summary Of Realized And Unrealized Gains Losses | ' | ' | ' |
Unrealized gains (losses) | 0.1 | 0 | 0 |
Not Designated as Hedging Instrument | Call Options relating to the Convertible Notes | Hedges Relating to the Convertible Notes | ' | ' | ' |
Summary Of Realized And Unrealized Gains Losses | ' | ' | ' |
Unrealized gains (losses) | 24.2 | 9 | -2.1 |
Not Designated as Hedging Instrument | Bifurcated Conversion Feature of the Convertible Notes | Hedges Relating to the Convertible Notes | ' | ' | ' |
Summary Of Realized And Unrealized Gains Losses | ' | ' | ' |
Unrealized gains (losses) | ($21) | ($8.20) | $6.10 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments and Related Hedging Programs, Notional Quantity Table (Details) | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
2014 | 2015 | 2016 | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Purchase | Purchase | Purchase | Purchase | Purchase | Purchase | |
Hedges Relating to the Convertible Notes | Hedges Relating to the Convertible Notes | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Euro | GBP | ||||
Bifurcated Conversion Feature | Call Options | Aluminum | Aluminum | Natural Gas | Electricity | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | ||||
Fixed priced contracts | Midwest premium swap contracts | Fixed priced contracts | Fixed priced contracts | Foreign Currency | Foreign Currency | ||||||
mmlbs | mmlbs | MMBTU | MWH | Fixed priced contracts | Fixed priced contracts | ||||||
EUR (€) | GBP (£) | ||||||||||
Summary of material derivative positions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notional Amount of Contracts | ' | ' | ' | 3,638,303 | 3,638,303 | 64.4 | 60.1 | 6,240,000 | 394,200 | ' | ' |
Notional Amount of Contracts, Currency | ' | ' | ' | ' | ' | ' | ' | ' | ' | € 674,483 | £ 44,106 |
Percentage of natural gas purchases for which the Company's exposure to fluctuations in gas prices have been reduced | 82.00% | 64.00% | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative_Financial_Instrumen5
Derivative Financial Instruments and Related Hedging Programs, Offsetting of Derivative Instruments by Counterparty (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract] | ' | ' |
Gross Amounts of Recognized Assets | $81.80 | $58.50 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 81.8 | 58.5 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 1.2 | 1.2 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 |
Net Amount | 80.6 | 57.3 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract] | ' | ' |
Gross Amounts of Recognized Liabilities | -86.1 | -66.7 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | -86.1 | -66.7 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | -1.2 | -1.2 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | -84.9 | -65.5 |
Counterparty (with Netting Agreements) | ' | ' |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract] | ' | ' |
Gross Amounts of Recognized Assets | 1 | 2.3 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 1 | 2.3 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0.8 | 1 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 |
Net Amount | 0.2 | 1.3 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract] | ' | ' |
Gross Amounts of Recognized Liabilities | -1.6 | -1.7 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | -1.6 | -1.7 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | -0.8 | -1 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | -0.8 | -0.7 |
Counterparty (without Netting Agreements) | ' | ' |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract] | ' | ' |
Gross Amounts of Recognized Assets | 80.4 | 55.9 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 80.4 | 55.9 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 |
Net Amount | 80.4 | 55.9 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract] | ' | ' |
Gross Amounts of Recognized Liabilities | -83.2 | -63.8 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | -83.2 | -63.8 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0 | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | -83.2 | -63.8 |
Counterparty (with partial Netting Agreements) | ' | ' |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract] | ' | ' |
Gross Amounts of Recognized Assets | 0.4 | 0.3 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 0.4 | 0.3 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0.4 | 0.2 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0.1 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract] | ' | ' |
Gross Amounts of Recognized Liabilities | -1.3 | -1.2 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | -1.3 | -1.2 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | -0.4 | -0.2 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | ($0.90) | ($1) |
Fair_Value_Measurements_Call_O
Fair Value Measurements, Call Option FV Assumption Table (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
basispoints | basispoints | |||||
Fair Value Disclosures [Abstract] | ' | ' | ' | ' | ||
Stock price at December 31, 2013 | $70.24 | $70.24 | ' | ' | ||
Quarterly dividend yield (per share) | ' | $0.24 | [1] | ' | ' | |
Risk-free interest rate | ' | 0.19% | [2] | ' | ' | |
Credit spread (basis points) | 171 | [3] | 171 | [3] | ' | ' |
Expected volatility rate | ' | 17.00% | [4] | ' | ' | |
Quarterly cash dividends | $0.30 | $1.20 | $1 | $0.96 | ||
Constant Maturity Treasury rate | '1.25 | '1.25 | ' | ' | ||
[1] | Quarterly dividends during 2013 were $0.30 per share, but the model assumes a discrete $0.24 per share quarterly dividend as was paid at the inception of the Call Options. Quarterly dividends in excess of $0.24 per share do not affect the Call Options' value due to anti-dilution adjustments. | |||||
[2] | The risk-free rate was based on the 1.25-year Constant Maturity Treasury rate on December 31, 2013. | |||||
[3] | The credit spread is based on the Company's long-term credit rating of BB- issued by Standard & Poor’s and a seniorunsecured credit rating of Ba3 issued by Moody’s. | |||||
[4] | The volatility rate was based on both observed volatility, which is based on the Company’s historical stock price, andimplied volatility from the Company’s traded options. Such volatility was further adjusted to take into considerationmarket participant risk tolerance. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements, Fair Value Hierarchy Table (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
Financial Assets: | ' | ' | ||
Derivative Asset | $81.80 | $58.50 | ||
Deferred compensation plan assets | 6.5 | 5.6 | ||
Investment Percentage in Industrial Sector | 56.00% | 61.00% | ||
Investment Percentage in Financial Sector | 35.00% | 33.00% | ||
Investment Percentage in Utilities Sector | 9.00% | 6.00% | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | -86.1 | -66.7 | ||
Recurring | ' | ' | ||
Financial Assets: | ' | ' | ||
Cash and cash equivalents | 169.5 | [1] | 273.4 | [1] |
Deferred compensation plan assets | 6.5 | 5.6 | ||
Total Assets | 1,158.20 | 1,152.90 | ||
Financial Liabilities: | ' | ' | ||
Convertible Notes | -260 | -240.1 | ||
Total Liabilities | -601.5 | -556.8 | ||
Recurring | VEBAs and Canadian Pension Plan | Fixed income investment funds in registered investment companies | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 375 | [2] | 427.7 | [2] |
Recurring | VEBAs and Canadian Pension Plan | Mortgage backed securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 25.9 | 31.5 | ||
Recurring | VEBAs and Canadian Pension Plan | Corporate debt securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 78.2 | [3] | 40.4 | [3] |
Recurring | VEBAs and Canadian Pension Plan | Equity investment funds in registered investment companies | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 175.3 | [4] | 172.9 | [4] |
Recurring | VEBAs and Canadian Pension Plan | United States Treasuries | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 43.3 | 13.6 | ||
Recurring | VEBAs and Canadian Pension Plan | Municipal debt securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 1.6 | 3.9 | ||
Recurring | VEBAs and Canadian Pension Plan | Cash and money market investments | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 36.8 | [5] | 16.4 | [5] |
Recurring | VEBAs and Canadian Pension Plan | Asset backed securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 8.5 | 3.2 | ||
Recurring | VEBAs and Canadian Pension Plan | Diversified investment funds in registered investment companies | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 26.3 | [6] | 12.1 | [6] |
Recurring | VEBAs and Canadian Pension Plan | Equity Securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | ' | 8.7 | ||
Recurring | Senior Notes | ' | ' | ||
Financial Liabilities: | ' | ' | ||
Senior Notes | -255.4 | -250 | ||
Recurring | Debt Securities | ' | ' | ||
Financial Assets: | ' | ' | ||
Short-term investments | 129.5 | 85 | ||
Recurring | Aluminum | Fixed priced contracts | Purchase | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0.1 | 2.6 | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | -1.8 | -0.5 | ||
Recurring | Aluminum | Midwest premium swap contracts | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 1.1 | 0.4 | ||
Recurring | Natural Gas | Fixed priced contracts | Purchase | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0.5 | 0.2 | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | -0.8 | -2.6 | ||
Recurring | Natural Gas | Option contracts | Sales | ' | ' | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | ' | -0.5 | ||
Recurring | Electricity | Fixed priced contracts | Purchase | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0.5 | ' | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | -0.4 | -1 | ||
Recurring | Foreign Currency | Fixed priced contracts | Purchase | Euro | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0.1 | ' | ||
Recurring | Hedges Relating to the Convertible Notes | Call Options | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 79.5 | 55.3 | ||
Recurring | Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature | ' | ' | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | -83.1 | -62.1 | ||
Recurring | Level 1 | ' | ' | ||
Financial Assets: | ' | ' | ||
Cash and cash equivalents | 57.7 | [1] | 107.9 | [1] |
Deferred compensation plan assets | 0 | 0 | ||
Total Assets | 171.6 | 445.8 | ||
Financial Liabilities: | ' | ' | ||
Convertible Notes | -260 | -240.1 | ||
Total Liabilities | -515.4 | -490.1 | ||
Recurring | Level 1 | VEBAs and Canadian Pension Plan | Fixed income investment funds in registered investment companies | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 57 | [2] | 192.3 | [2] |
Recurring | Level 1 | VEBAs and Canadian Pension Plan | Mortgage backed securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 1 | VEBAs and Canadian Pension Plan | Corporate debt securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 1 | VEBAs and Canadian Pension Plan | Equity investment funds in registered investment companies | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 114.1 | [4] | |
Recurring | Level 1 | VEBAs and Canadian Pension Plan | United States Treasuries | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 1 | VEBAs and Canadian Pension Plan | Municipal debt securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 1 | VEBAs and Canadian Pension Plan | Cash and money market investments | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 36.8 | [5] | 16.4 | [5] |
Recurring | Level 1 | VEBAs and Canadian Pension Plan | Asset backed securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 1 | VEBAs and Canadian Pension Plan | Diversified investment funds in registered investment companies | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 20.1 | [6] | 6.4 | [6] |
Recurring | Level 1 | VEBAs and Canadian Pension Plan | Equity Securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | ' | 8.7 | ||
Recurring | Level 1 | Senior Notes | ' | ' | ||
Financial Liabilities: | ' | ' | ||
Senior Notes | -255.4 | -250 | ||
Recurring | Level 1 | Debt Securities | ' | ' | ||
Financial Assets: | ' | ' | ||
Short-term investments | 0 | 0 | ||
Recurring | Level 1 | Aluminum | Fixed priced contracts | Purchase | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0 | 0 | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | 0 | 0 | ||
Recurring | Level 1 | Aluminum | Midwest premium swap contracts | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0 | 0 | ||
Recurring | Level 1 | Natural Gas | Fixed priced contracts | Purchase | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0 | 0 | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | 0 | 0 | ||
Recurring | Level 1 | Natural Gas | Option contracts | Sales | ' | ' | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | ' | 0 | ||
Recurring | Level 1 | Electricity | Fixed priced contracts | Purchase | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0 | ' | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | 0 | 0 | ||
Recurring | Level 1 | Foreign Currency | Fixed priced contracts | Purchase | Euro | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0 | ' | ||
Recurring | Level 1 | Hedges Relating to the Convertible Notes | Call Options | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0 | 0 | ||
Recurring | Level 1 | Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature | ' | ' | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | 0 | 0 | ||
Recurring | Level 2 | ' | ' | ||
Financial Assets: | ' | ' | ||
Cash and cash equivalents | 111.8 | [1] | 165.5 | [1] |
Deferred compensation plan assets | 6.5 | 5.6 | ||
Total Assets | 985.5 | 706.7 | ||
Financial Liabilities: | ' | ' | ||
Convertible Notes | 0 | 0 | ||
Total Liabilities | -86.1 | -66.7 | ||
Recurring | Level 2 | VEBAs and Canadian Pension Plan | Fixed income investment funds in registered investment companies | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 318 | [2] | 235.4 | [2] |
Recurring | Level 2 | VEBAs and Canadian Pension Plan | Mortgage backed securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 25.9 | 31.5 | ||
Recurring | Level 2 | VEBAs and Canadian Pension Plan | Corporate debt securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 78.2 | [3] | 40.4 | [3] |
Recurring | Level 2 | VEBAs and Canadian Pension Plan | Equity investment funds in registered investment companies | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 175.3 | [4] | 58.8 | [4] |
Recurring | Level 2 | VEBAs and Canadian Pension Plan | United States Treasuries | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 43.3 | 13.6 | ||
Recurring | Level 2 | VEBAs and Canadian Pension Plan | Municipal debt securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 1.6 | 3.9 | ||
Recurring | Level 2 | VEBAs and Canadian Pension Plan | Cash and money market investments | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 2 | VEBAs and Canadian Pension Plan | Asset backed securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 8.5 | 3.2 | ||
Recurring | Level 2 | VEBAs and Canadian Pension Plan | Diversified investment funds in registered investment companies | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 6.2 | [6] | 5.7 | [6] |
Recurring | Level 2 | VEBAs and Canadian Pension Plan | Equity Securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | ' | 0 | ||
Recurring | Level 2 | Senior Notes | ' | ' | ||
Financial Liabilities: | ' | ' | ||
Senior Notes | 0 | 0 | ||
Recurring | Level 2 | Debt Securities | ' | ' | ||
Financial Assets: | ' | ' | ||
Short-term investments | 129.5 | 85 | ||
Recurring | Level 2 | Aluminum | Fixed priced contracts | Purchase | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0.1 | 2.6 | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | -1.8 | -0.5 | ||
Recurring | Level 2 | Aluminum | Midwest premium swap contracts | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0 | 0 | ||
Recurring | Level 2 | Natural Gas | Fixed priced contracts | Purchase | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0.5 | 0.2 | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | -0.8 | -2.6 | ||
Recurring | Level 2 | Natural Gas | Option contracts | Sales | ' | ' | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | ' | -0.5 | ||
Recurring | Level 2 | Electricity | Fixed priced contracts | Purchase | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0.5 | ' | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | -0.4 | -1 | ||
Recurring | Level 2 | Foreign Currency | Fixed priced contracts | Purchase | Euro | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0.1 | ' | ||
Recurring | Level 2 | Hedges Relating to the Convertible Notes | Call Options | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 79.5 | 55.3 | ||
Recurring | Level 2 | Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature | ' | ' | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | -83.1 | -62.1 | ||
Recurring | Level 3 | ' | ' | ||
Financial Assets: | ' | ' | ||
Cash and cash equivalents | 0 | 0 | ||
Deferred compensation plan assets | 0 | 0 | ||
Total Assets | 1.1 | 0.4 | ||
Financial Liabilities: | ' | ' | ||
Convertible Notes | 0 | 0 | ||
Total Liabilities | 0 | 0 | ||
Recurring | Level 3 | VEBAs and Canadian Pension Plan | Fixed income investment funds in registered investment companies | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 3 | VEBAs and Canadian Pension Plan | Mortgage backed securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 3 | VEBAs and Canadian Pension Plan | Corporate debt securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 3 | VEBAs and Canadian Pension Plan | Equity investment funds in registered investment companies | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 3 | VEBAs and Canadian Pension Plan | United States Treasuries | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 3 | VEBAs and Canadian Pension Plan | Municipal debt securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 3 | VEBAs and Canadian Pension Plan | Cash and money market investments | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 3 | VEBAs and Canadian Pension Plan | Asset backed securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 3 | VEBAs and Canadian Pension Plan | Diversified investment funds in registered investment companies | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | 0 | 0 | ||
Recurring | Level 3 | VEBAs and Canadian Pension Plan | Equity Securities | ' | ' | ||
Financial Assets: | ' | ' | ||
VEBAs and Canadian Pension Plan Assets | ' | 0 | ||
Recurring | Level 3 | Senior Notes | ' | ' | ||
Financial Liabilities: | ' | ' | ||
Senior Notes | 0 | 0 | ||
Recurring | Level 3 | Debt Securities | ' | ' | ||
Financial Assets: | ' | ' | ||
Short-term investments | 0 | 0 | ||
Recurring | Level 3 | Aluminum | Fixed priced contracts | Purchase | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0 | 0 | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | 0 | 0 | ||
Recurring | Level 3 | Aluminum | Midwest premium swap contracts | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 1.1 | 0.4 | ||
Recurring | Level 3 | Natural Gas | Fixed priced contracts | Purchase | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0 | 0 | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | 0 | 0 | ||
Recurring | Level 3 | Natural Gas | Option contracts | Sales | ' | ' | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | ' | 0 | ||
Recurring | Level 3 | Electricity | Fixed priced contracts | Purchase | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0 | ' | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | 0 | 0 | ||
Recurring | Level 3 | Foreign Currency | Fixed priced contracts | Purchase | Euro | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0 | ' | ||
Recurring | Level 3 | Hedges Relating to the Convertible Notes | Call Options | ' | ' | ||
Financial Assets: | ' | ' | ||
Derivative Asset | 0 | 0 | ||
Recurring | Level 3 | Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature | ' | ' | ||
Financial Liabilities: | ' | ' | ||
Derivative Liabilities | $0 | $0 | ||
[1] | See Note 2 for components of cash and cash equivalents. | |||
[2] | This category represents investments in various fixed income funds with multiple registered investment companies. Such funds invest in diversified portfolios, including (i)Â marketable fixed income securities such as (a) U.S. Treasury and other government and agency securities, (b) municipal bonds, (c) mortgage-backed securities, (d) asset-backed securities, (e) corporate bonds, notes and debentures in various sectors, (f) preferred and common stock, (g) investments in affiliated and other investment companies, (h)Â short-term investments and other net assets and (i)Â repurchase agreements and reverse repurchase agreements, (ii)Â other commingled investments, (iii) investment grade debt, (iv) fixed income instruments which may be represented by options, future contracts or swap agreements, and (v) cash and cash equivalents. The fair value of assets in this category is estimated using the net asset value per share of the investments. | |||
[3] | This category represents investments in fixed income corporate securities in various sectors. Investments in the industrial, financial and utilities sectors in 2013 represented approximately 56%, 35% and 9% of the total portfolio in this category, respectively. Investments in the industrial, financial and utilities sectors in 2012 represented approximately 61%, 33% and 6% of the total portfolio in this category, respectively. The fair value of assets in this category is estimated using the net asset value per share of the investments. | |||
[4] | This category represents investments in equity funds that invest in portfolios comprised of (i) equity and equity-related securities of U.S. and non-U.S. issuers across all market capitalization, (ii) common stock in investment trust funds, and (iii) other short-term investments. The fair value of assets in this category is determined by using quoted prices in active markets for investments considered Level 1 inputs and estimated using the net asset value per share of the investments for investments considered Level 2 inputs. | |||
[5] | This category represents cash and investments in various money market funds. | |||
[6] | The plan assets are invested in investment funds that hold a diversified portfolio of (i) U.S and international debt and equity securities, (ii) fixed income securities such as corporate bonds and government bonds, (iii) mortgage-related securities, and (iv) cash and cash equivalents. The fair value of assets in this category is estimated using the net asset value per share of the investments. |
Fair_Value_Measurements_Level_
Fair Value Measurements, Level 3 Fair Value Input Reconciliation Table (Details) (Derivative, Midwest premium swap contracts, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative | Midwest premium swap contracts | ' | ' |
Reconciliation of activity for financial instruments classified as Level 3: | ' | ' |
Balance at December 31, 2012 | $1.10 | $0.40 |
Total realized/unrealized gains included in: | ' | ' |
Cost of goods sold excluding depreciation and amortization and Unrealized (gains) losses on derivative instruments | -0.1 | ' |
Transactions involving Level 3 derivative contracts: | ' | ' |
Purchases | 1 | ' |
Sales | 0 | ' |
Issuances | 0 | ' |
Settlements | -0.2 | ' |
Transactions involving Level 3 derivatives - net | 0.8 | ' |
Transfers in and (or) out of Level 3 valuation hierarchy | 0 | ' |
Balance at December 31, 2013 | 1.1 | 0.4 |
Total gains included in Unrealized (gains) losses on derivative instruments, attributable to the change in unrealized gains/losses relating to derivative contracts held at December 31, 2013: | $1.10 | ' |
Fair_Value_Measurements_Fair_V1
Fair Value Measurements, Fair Value of Non financial Assets and Liabilities (Details) (USD $) | 12 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Asset Retirement Obligation, Roll Forward | ' | ' | ' | ||
Beginning balance | $4.10 | $4 | $3.80 | ||
Liabilities settled during the period | -0.2 | -0.5 | -0.1 | ||
Accretion expense | 0.4 | 0.3 | 0.3 | ||
Adjustment to accretion expense due to revisions to estimated cash flow and timing of expenditure | 0.1 | [1] | 0.3 | [1] | 0 |
Ending balance | $4.40 | $4.10 | $4 | ||
(Decrease)/increase in basic earnings per share resulting from adjustment | ' | ($0.02) | ' | ||
(Decrease)/increase in diluted earnings per share resulting from adjustment | ' | ($0.02) | ' | ||
Weighted-average credit-adjusted risk-free rate | 8.60% | 8.70% | ' | ||
[1] | The adjustment in 2013 did not have a material impact on the basic and diluted earnings per share for 2013. The adjustment in 2012 decreased both basic and diluted earnings per share for 2012 by approximately $0.02 per share. |
Earnings_Per_Share_Calculation
Earnings Per Share, Calculation of EPS (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income | $27.30 | $25.40 | $18.60 | $33.50 | $9.10 | $29.20 | $21 | $26.50 | $104.80 | $85.80 | $25.10 | |||
Denominator - Weighted-average common shares outstanding (in thousands): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Basic | ' | ' | ' | ' | ' | ' | ' | ' | 18,827 | [1] | 19,115 | [1] | 18,979 | [1] |
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares | ' | ' | ' | ' | ' | ' | ' | ' | 178 | 163 | 0 | |||
Add: dilutive effect of warrants | ' | ' | ' | ' | ' | ' | ' | ' | 241 | 0 | 0 | |||
Diluted | ' | ' | ' | ' | ' | ' | ' | ' | 19,246 | [2],[3] | 19,278 | [2],[3] | 18,979 | [2],[3] |
Earnings per common share, Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income per share | $1.48 | $1.37 | $0.99 | $1.75 | $0.48 | $1.52 | $1.10 | $1.39 | $5.56 | $4.49 | $1.32 | |||
Earnings per common share, Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income per share | $1.44 | $1.34 | $0.98 | $1.73 | $0.47 | $1.51 | $1.09 | $1.38 | $5.44 | [2],[3] | $4.45 | [2],[3] | $1.32 | [2],[3] |
[1] | The basic weighted-average number of common shares outstanding during the period excludes unvested share-based incentive awards. | |||||||||||||
[2] | The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2013 and 2012 were calculated using the treasury method. The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2011 were calculated using the two-class method (see Note 1). | |||||||||||||
[3] | Diluted weighted-average number of common shares outstanding and diluted earnings per share for 2013 and 2012 are based on the treasury method. Diluted weighted-average number of common shares outstanding and diluted earnings per share for 2011 is based on the two-class method (see Note 1 and Note 13). |
Earnings_Per_Share_Other_Discl
Earnings Per Share, Other Disclosures (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Apr. 30, 2013 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 30, 2010 | Jun. 30, 2013 | Dec. 31, 2013 |
Warrant Transactions | Warrant Transactions | Warrant Transactions | Common Stock | Common Stock | ||||||||
Potential dilutive effect of options and Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options outstanding to purchase common shares | 20,791 | ' | 20,791 | ' | 20,791 | 20,791 | ' | ' | ' | ' | ' | ' |
Average exercise price per share | $80.01 | ' | $80.01 | ' | $80.01 | $80.01 | ' | ' | ' | ' | ' | ' |
Potential dilutive effect of shares underlying the options | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' |
Number of common shares underlying the Warrants outstanding | ' | ' | ' | ' | ' | ' | ' | 3,600,000 | 3,600,000 | 3,600,000 | ' | ' |
Average exercise price of common shares underlying warrants | ' | ' | ' | ' | ' | ' | ' | 61.08 | 61.31 | ' | ' | ' |
Dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payment of cash dividends to stockholders | ' | ' | ' | ' | $23 | $19.60 | $18.90 | ' | ' | ' | ' | ' |
Payment of quarterly cash dividends | ' | ' | $0.30 | ' | $1.20 | $1 | $0.96 | ' | ' | ' | ' | ' |
Cash dividend returned to the Company | ' | ' | ' | 0.6 | 0.6 | 0 | 0 | ' | ' | ' | ' | ' |
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares returned from distribution of bankruptcy trust, shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,001 | 9,001 |
Repurchase of common shares authorized by Board | 75 | 75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares pursuant to an authorization from the Board, shares | ' | ' | ' | ' | 1,232,077 | 0 | 0 | ' | ' | ' | ' | 1,232,077 |
Weighted-average price of repurchases of common shares | ' | ' | ' | ' | $64.35 | ' | ' | ' | ' | ' | ' | ' |
Repurchase of common shares pursuant to an authorization from the Board, value | ' | ' | ' | ' | 79.3 | ' | ' | ' | ' | ' | ' | ' |
Common shares available for additional share repurchase | ' | ' | ' | ' | $117.60 | $46.90 | ' | ' | ' | ' | ' | ' |
Segment_and_Geographical_Area_2
Segment and Geographical Area Information, Textuals (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment Reporting Information | ' | ' | ' |
Non-cash LIFO inventory benefits | $24.10 | $4.90 | $7.10 |
Environmental expense | 4.5 | 1.2 | 3.9 |
Asset impairment charge | 0 | 4.4 | 0 |
Unrealized gains (losses) on derivatives | 3.9 | 16 | -25.9 |
Non-cash defined benefit net periodic benefit income | -22 | -11.5 | -5.7 |
Fabricated Products | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Non-cash LIFO inventory benefits | 24.1 | 4.9 | 7.1 |
Environmental expense | 4 | 1.1 | 1.7 |
Asset impairment charge | 0 | ' | 0 |
Unrealized gains (losses) on derivatives | 0.7 | 15.2 | -29.9 |
United States | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Number of production facilities | 11 | ' | ' |
Canada | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Number of production facilities | 1 | ' | ' |
Anglesey Aluminium Limited | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Ownership percentage of Anglesey | 49.00% | ' | ' |
VEBAs | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Non-cash defined benefit net periodic benefit income | -22.5 | -11.9 | -6 |
Idled equipment | Fabricated Products | ' | ' | ' |
Segment Reporting Information | ' | ' | ' |
Asset impairment charge | ' | $4.40 | ' |
Segment_and_Geographical_Area_3
Segment and Geographical Area Information, Financial Information by Reporting Segment Table (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Net Sales: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales | $311.30 | $319.90 | $328.90 | $337.40 | $314 | $335.50 | $345.20 | $365.40 | $1,297.50 | $1,360.10 | $1,301.30 | |||||
Segment Operating Income (Loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total operating income (loss) | 41.6 | 41.6 | 40.1 | 50 | 23.9 | 56.2 | 39.6 | 46.2 | 173.3 | 165.9 | 55 | |||||
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -35.7 | -29.1 | -18 | |||||
Other income, net | ' | ' | ' | ' | ' | ' | ' | ' | 5.6 | 2.8 | 4.3 | |||||
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 143.2 | 139.6 | 41.3 | |||||
Depreciation and Amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 28.1 | 26.5 | 25.2 | |||||
Capital expenditures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 70.4 | 44.1 | 32.5 | |||||
Segment assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total | 1,770.90 | ' | ' | ' | 1,752.50 | ' | ' | ' | 1,770.90 | 1,752.50 | 1,320.60 | |||||
Fabricated Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net Sales: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,297.50 | 1,360.10 | 1,301.30 | |||||
Segment Operating Income (Loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 188.6 | [1],[2] | 190.8 | [1],[2] | 83.6 | [1],[2] | ||
Depreciation and Amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 27.6 | 26 | 24.8 | |||||
Capital expenditures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 69.8 | 43.8 | 32.1 | |||||
Segment assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total | 852.5 | ' | ' | ' | 771.2 | ' | ' | ' | 852.5 | 771.2 | 637 | |||||
All Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Segment Operating Income (Loss): | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -15.3 | [3] | -24.9 | [3] | -28.6 | [3] | ||
Depreciation and Amortization: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 0.5 | 0.5 | 0.4 | |||||
Capital expenditures: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 0.3 | 0.4 | |||||
Segment assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Total | $918.40 | [4] | ' | ' | ' | $981.30 | [4] | ' | ' | ' | $918.40 | [4] | $981.30 | [4] | $683.60 | [4] |
[1] | Operating results in the Fabricated Products segment for 2013, 2012 and 2011 included non-cash LIFO inventory benefits of $24.1, $4.9 and $7.1, respectively. Also included in the Fabricated Products segment operating results for 2013, 2012 and 2011 were $4.0, $1.1 and $1.7, respectively, of environmental expense. Fabricated Products segment operating results for 2012 also included $4.4 of asset impairment charge relating to certain property, plant and equipment. | |||||||||||||||
[2] | Fabricated Products segment results for 2013, 2012 and 2011 include non-cash mark-to-market gains (losses) on primary aluminum, natural gas, electricity and foreign currency hedging activities totaling $0.7, $15.2 and $(29.9), respectively. For further discussion regarding mark-to-market matters, see Note 11. | |||||||||||||||
[3] | Operating results in All Other represent operating expenses in the Corporate and Other business unit. Operating results of All Other include VEBA net periodic pension benefit income of $22.5, $11.9 and $6.0 for 2013, 2012 and 2011, respectively. | |||||||||||||||
[4] | Assets in All Other represent primarily all of the Company’s cash and cash equivalents, short-term investments, financial derivative assets, net assets in respect of VEBA(s) and net deferred income tax assets. |
Segment_and_Geographical_Area_4
Segment and Geographical Area Information, Revenues from External Customers by Products (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue from External Customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $311.30 | $319.90 | $328.90 | $337.40 | $314 | $335.50 | $345.20 | $365.40 | $1,297.50 | $1,360.10 | $1,301.30 |
Aero/HS Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 677 | 695.1 | 596.3 |
GE Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 411 | 441.4 | 447 |
Automotive Extrusions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 129.5 | 125.5 | 126.9 |
Other Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | $80 | $98.10 | $131.10 |
Segment_and_Geographical_Area_5
Segment and Geographical Area Information Segment and Geographical Area Information, Information by Geographical Area (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales to unaffiliated customers | $311.30 | $319.90 | $328.90 | $337.40 | $314 | $335.50 | $345.20 | $365.40 | $1,297.50 | $1,360.10 | $1,301.30 | |||||
Income taxes paid | ' | ' | ' | ' | ' | ' | ' | ' | 2.1 | 1.8 | 3.5 | |||||
Long-lived assets | 429.3 | [1] | ' | ' | ' | 384.3 | [1] | ' | ' | ' | 429.3 | [1] | 384.3 | [1] | 367.8 | [1] |
Fabricated Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales to unaffiliated customers | ' | ' | ' | ' | ' | ' | ' | ' | 1,297.50 | 1,360.10 | 1,301.30 | |||||
Long-lived assets | 424.8 | [1] | ' | ' | ' | 380 | [1] | ' | ' | ' | 424.8 | [1] | 380 | [1] | 363.3 | [1] |
Fabricated Products | United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales to unaffiliated customers | ' | ' | ' | ' | ' | ' | ' | ' | 1,204.70 | 1,256.50 | 1,195.10 | |||||
Income taxes paid | ' | ' | ' | ' | ' | ' | ' | ' | 1.2 | 0.5 | 1.7 | |||||
Long-lived assets | 409.5 | [1] | ' | ' | ' | 367.5 | [1] | ' | ' | ' | 409.5 | [1] | 367.5 | [1] | 351.4 | [1] |
Fabricated Products | Canada | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Net sales to unaffiliated customers | ' | ' | ' | ' | ' | ' | ' | ' | 92.8 | 103.6 | 106.2 | |||||
Income taxes paid | ' | ' | ' | ' | ' | ' | ' | ' | 0.9 | 1.3 | 1.8 | |||||
Long-lived assets | 15.3 | [1] | ' | ' | ' | 12.5 | [1] | ' | ' | ' | 15.3 | [1] | 12.5 | [1] | 11.9 | [1] |
All Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Long-lived assets | 4.5 | [1] | ' | ' | ' | 4.3 | [1] | ' | ' | ' | 4.5 | [1] | 4.3 | [1] | 4.5 | [1] |
All Other | United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Long-lived assets | $4.50 | [1] | ' | ' | ' | $4.30 | [1] | ' | ' | ' | $4.50 | [1] | $4.30 | [1] | $4.50 | [1] |
[1] | Long-lived assets represent Property, plant and equipment, net. |
Segment_and_Geographical_Area_6
Segment and Geographical Area Information Sales and Supply Information (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Customer concentration risk | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Concentration Risk Percentage | 23.00% | 22.00% | 21.00% |
Export sales | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Concentration Risk Percentage | 17.00% | 18.00% | 14.00% |
Supplier concentration risk | Top five major suppliers | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Concentration Risk Percentage | 86.00% | 78.00% | 83.00% |
Supplier concentration risk | Largest supplier | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Concentration Risk Percentage | 25.00% | 29.00% | 32.00% |
Supplier concentration risk | Second and third largest suppliers | ' | ' | ' |
Concentration Risk | ' | ' | ' |
Concentration Risk Percentage | 35.00% | 31.00% | 34.00% |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Interest paid | $28.10 | $19.40 | $10.40 |
Income taxes paid | 2.1 | 1.8 | 3.5 |
Supplemental disclosure of non-cash transactions: | ' | ' | ' |
Stock repurchases not yet settled (accrued in accounts payable) | 1 | 0 | 0 |
Non-cash capital expenditures | 4.4 | 3.4 | 1.8 |
Capital leases acquired | $0.20 | $0.10 | $0.30 |
Other_Income_Net_Details
Other Income, Net (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Other Income and Expenses [Abstract] | ' | ' | ' | |||
Interest income | $0.40 | $0.40 | $0.20 | |||
Unrealized gains on financial derivatives | 3.2 | [1] | 0.8 | [1] | 4 | [1] |
Realized gains on investments | 1.4 | 0.5 | 0.1 | |||
Distribution from bankruptcy trust | 0.6 | [2] | 0 | 0 | ||
Insurance settlement | 0 | 0.4 | 0 | |||
All other, net | 0 | 0.7 | 0 | |||
Other income, net | $5.60 | $2.80 | $4.30 | |||
[1] | See “Derivative Financial Instruments†in Note 1 for a discussion of accounting policy for such instruments. | |||||
[2] | See Note 13 for discussion of the distribution. |
Other_Comprehensive_Income_Los2
Other Comprehensive Income (Loss) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined benefit pension plan and VEBAs: | ' | ' | ' |
Net actuarial (loss) gain arising during the period | $2.20 | $87.80 | ($110.60) |
Reclassification adjustments: | ' | ' | ' |
Less: amortization of net actuarial loss | 1.5 | 3.1 | 0.6 |
Less: amortization of prior service cost | 4.2 | 4.2 | 4.2 |
Other comprehensive income relating to defined benefit pension plan and VEBAs | 7.9 | 95.1 | -105.8 |
Available for Sale Securities: | ' | ' | ' |
Unrealized gain on available for sale securities | 1 | 0.6 | -0.1 |
Reclassification adjustments: | ' | ' | ' |
Less: reclassification of unrealized gain upon sale of available for sale securities | -1 | 0 | 0 |
Other comprehensive income (loss) relating to available for sale securities | 0 | 0.6 | -0.1 |
Foreign currency translation adjustment | 0.2 | -0.2 | 0.2 |
Other comprehensive income (loss) | 8.1 | 95.5 | -105.7 |
Defined benefit pension plan and VEBAs: | ' | ' | ' |
Net actuarial (loss) gain arising during the period | -0.7 | -33.5 | 42.2 |
Reclassification adjustments: | ' | ' | ' |
Less: amortization of net actuarial loss | -0.5 | -1.1 | -0.2 |
Less: amortization of prior service cost | -1.6 | -1.7 | -1.6 |
Other comprehensive income relating to defined benefit pension plan and VEBAs | -2.8 | -36.3 | 40.4 |
Available for Sale Securities: | ' | ' | ' |
Unrealized gain on available for sale securities | -0.3 | -0.2 | 0 |
Reclassification adjustments: | ' | ' | ' |
Less: reclassification of unrealized gain upon sale of available for sale securities | 0.3 | ' | ' |
Other comprehensive income (loss) relating to available for sale securities | 0 | ' | ' |
Foreign currency translation adjustment | 0 | 0 | 0 |
Other comprehensive income (loss) | -2.8 | -36.5 | 40.4 |
Defined benefit pension plan and VEBAs: | ' | ' | ' |
Net actuarial (loss) gain arising during the period | 1.5 | 54.3 | -68.4 |
Reclassification adjustments: | ' | ' | ' |
Less: amortization of net actuarial loss | 1 | 2 | 0.4 |
Less: amortization of prior service cost | 2.6 | 2.5 | 2.6 |
Other comprehensive income relating to defined benefit pension plan and VEBAs | 5.1 | 58.8 | -65.4 |
Available for Sale Securities: | ' | ' | ' |
Unrealized gain on available for sale securities | 0.7 | 0.4 | -0.1 |
Reclassification adjustments: | ' | ' | ' |
Less: reclassification of unrealized gain upon sale of available for sale securities | -0.7 | ' | ' |
Other comprehensive income (loss) relating to available for sale securities | 0 | ' | ' |
Foreign currency translation adjustment | 0.2 | -0.2 | 0.2 |
Other comprehensive income (loss), net of tax | $5.30 | $59 | ($65.30) |
Guarantor_and_NonGuarantor_Fin2
Guarantor and Non-Guarantor Financial Statements (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | 23-May-12 |
Parent | Parent | Parent | Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Consolidating Adjustments | Consolidating Adjustments | Consolidating Adjustments | Senior Notes | |||||||||||||
Condensed Financial Statements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of notes | $225 | ' | ' | ' | $225 | ' | ' | ' | $225 | $225 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $225 |
Ownership interest by parent | 100.00% | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 169.5 | ' | ' | ' | 273.4 | ' | ' | ' | 169.5 | 273.4 | 49.8 | ' | 5 | 5 | 5 | 157.7 | 266 | 43 | 6.8 | 2.4 | 1.8 | 0 | 0 | 0 | ' |
Short-term investments | 129.5 | ' | ' | ' | 85 | ' | ' | ' | 129.5 | 85 | ' | ' | 0 | 0 | ' | 129.5 | 85 | ' | 0 | 0 | ' | 0 | 0 | ' | ' |
Receivables: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Trade, less allowance for doubtful receivables | 119.8 | ' | ' | ' | 123.8 | ' | ' | ' | 119.8 | 123.8 | ' | ' | 0 | 0 | ' | 117.7 | 121.5 | ' | 2.1 | 2.3 | ' | 0 | 0 | ' | ' |
Intercompany receivables | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | 0.1 | -10.3 | ' | 0.2 | 0.4 | ' | -0.3 | 9.9 | ' | ' |
Other | 13.4 | ' | ' | ' | 3.4 | ' | ' | ' | 13.4 | 3.4 | ' | ' | 0 | 0 | ' | 5.3 | 1.3 | ' | 8.1 | 2.1 | ' | 0 | 0 | ' | ' |
Inventories | 214.4 | ' | ' | ' | 186 | ' | ' | ' | 214.4 | 186 | ' | ' | 0 | 0 | ' | 208.6 | 178.7 | ' | 6.4 | 7.3 | ' | -0.6 | 0 | ' | ' |
Prepaid expenses and other current assets | 44.2 | ' | ' | ' | 70.1 | ' | ' | ' | 44.2 | 70.1 | ' | ' | 0.1 | 0 | ' | 43.7 | 68.1 | ' | 0.4 | 2 | ' | 0 | 0 | ' | ' |
Total current assets | 690.8 | ' | ' | ' | 741.7 | ' | ' | ' | 690.8 | 741.7 | ' | ' | 5.1 | 5 | ' | 662.6 | 710.3 | ' | 24 | 16.5 | ' | -0.9 | 9.9 | ' | ' |
Investments in and advances to unconsolidated affiliates | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' | ' | 1,437.90 | 1,284.10 | ' | 26.5 | 7.4 | ' | 0 | 0 | ' | -1,464.40 | -1,291.50 | ' | ' |
Property, plant, and equipment — net | 429.3 | ' | ' | ' | 384.3 | ' | ' | ' | 429.3 | 384.3 | ' | ' | 0 | 0 | ' | 414 | 371.8 | ' | 15.3 | 12.5 | ' | 0 | 0 | ' | ' |
Long-term intercompany receivables | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' | ' | 31.3 | 163.7 | ' | 1.6 | 0.4 | ' | 9.5 | 6.4 | ' | -42.4 | -170.5 | ' | ' |
Net asset in respect of VEBAs | 406 | ' | ' | ' | 365.9 | ' | ' | ' | 406 | 365.9 | ' | ' | 0 | 0 | ' | 406 | 365.9 | ' | 0 | 0 | ' | 0 | 0 | ' | ' |
Deferred tax assets — net | 69.1 | ' | ' | ' | 102 | ' | ' | ' | 69.1 | 102 | ' | ' | 0 | 0 | ' | 60.2 | 93.4 | ' | 0 | -0.8 | ' | 8.9 | 9.4 | ' | ' |
Intangible assets — net | 33.7 | ' | ' | ' | 35.4 | ' | ' | ' | 33.7 | 35.4 | ' | ' | 0 | 0 | ' | 33.7 | 35.4 | ' | 0 | 0 | ' | 0 | 0 | ' | ' |
Goodwill | 37.2 | ' | ' | ' | 37.2 | ' | ' | ' | 37.2 | 37.2 | ' | ' | 0 | 0 | ' | 37.2 | 37.2 | ' | 0 | 0 | ' | 0 | 0 | ' | ' |
Other assets | 104.8 | ' | ' | ' | 86 | ' | ' | ' | 104.8 | 86 | ' | ' | 86.2 | 64 | ' | 18.5 | 19.2 | ' | 0.1 | 3 | ' | 0 | -0.2 | ' | ' |
Total | 1,770.90 | ' | ' | ' | 1,752.50 | ' | ' | ' | 1,770.90 | 1,752.50 | 1,320.60 | ' | 1,560.50 | 1,516.80 | ' | 1,660.30 | 1,641 | ' | 48.9 | 37.6 | ' | -1,498.80 | -1,442.90 | ' | ' |
Current liabilities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | 62.9 | ' | ' | ' | 62.5 | ' | ' | ' | 62.9 | 62.5 | ' | ' | 1.1 | 0.1 | ' | 56.3 | 56.5 | ' | 5.5 | 5.9 | ' | 0 | 0 | ' | ' |
Intercompany payable | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | 13.9 | 0.3 | ' | 0.1 | 0.2 | ' | -14 | -0.5 | ' | ' |
Accrued salaries, wages, and related expenses | 42.7 | ' | ' | ' | 39.3 | ' | ' | ' | 42.7 | 39.3 | ' | ' | 0 | 0 | ' | 39.3 | 36.7 | ' | 3.4 | 2.6 | ' | 0 | 0 | ' | ' |
Other accrued liabilities | 44.8 | ' | ' | ' | 51.8 | ' | ' | ' | 44.8 | 51.8 | ' | ' | 3.5 | 3.5 | ' | 39.9 | 47.8 | ' | 1.4 | 0.5 | ' | 0 | 0 | ' | ' |
Payable to affiliate | 0 | ' | ' | ' | 7.9 | ' | ' | ' | 0 | 7.9 | ' | ' | ' | 0 | ' | ' | 7.9 | ' | ' | 0 | ' | ' | 0 | ' | ' |
Short-term capital leases | 0.2 | ' | ' | ' | 0.1 | ' | ' | ' | 0.2 | 0.1 | ' | ' | 0 | 0 | ' | 0.2 | 0.1 | ' | 0 | 0 | ' | 0 | 0 | ' | ' |
Total current liabilities | 150.6 | ' | ' | ' | 161.6 | ' | ' | ' | 150.6 | 161.6 | ' | ' | 4.6 | 3.6 | ' | 149.6 | 149.3 | ' | 10.4 | 9.2 | ' | -14 | -0.5 | ' | ' |
Net liability in respect of VEBA | 0 | ' | ' | ' | 5.3 | ' | ' | ' | 0 | 5.3 | ' | ' | ' | 0 | ' | ' | 5.3 | ' | ' | 0 | ' | ' | 0 | ' | ' |
Deferred tax liability | 1.2 | ' | ' | ' | 0 | ' | ' | ' | 1.2 | 0 | ' | ' | 0 | ' | ' | 0 | ' | ' | 1.2 | ' | ' | 0 | ' | ' | ' |
Long-term intercompany payable | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | ' | ' | 0 | 0 | ' | 40.7 | 170 | ' | 1.7 | 0.5 | ' | -42.4 | -170.5 | ' | ' |
Long-term liabilities | 146.4 | ' | ' | ' | 134.5 | ' | ' | ' | 146.4 | 134.5 | ' | ' | 83.2 | 62.1 | ' | 52 | 49.6 | ' | 11.2 | 22.8 | ' | 0 | 0 | ' | ' |
Long-term debt | 388.5 | ' | ' | ' | 380.3 | ' | ' | ' | 388.5 | 380.3 | ' | ' | 388.5 | 380.3 | ' | 0 | 0 | ' | 0 | 0 | ' | 0 | 0 | ' | ' |
Total liabilities | 686.7 | ' | ' | ' | 681.7 | ' | ' | ' | 686.7 | 681.7 | ' | ' | 476.3 | 446 | ' | 242.3 | 374.2 | ' | 24.5 | 32.5 | ' | -56.4 | -171 | ' | ' |
Total stockholders’ equity | 1,084.20 | ' | ' | ' | 1,070.80 | ' | ' | ' | 1,084.20 | 1,070.80 | 872.8 | 888.7 | 1,084.20 | 1,070.80 | ' | 1,418 | 1,266.80 | ' | 24.4 | 5.1 | ' | -1,442.40 | -1,271.90 | ' | ' |
Total | 1,770.90 | ' | ' | ' | 1,752.50 | ' | ' | ' | 1,770.90 | 1,752.50 | ' | ' | 1,560.50 | 1,516.80 | ' | 1,660.30 | 1,641 | ' | 48.9 | 37.6 | ' | -1,498.80 | -1,442.90 | ' | ' |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | 311.3 | 319.9 | 328.9 | 337.4 | 314 | 335.5 | 345.2 | 365.4 | 1,297.50 | 1,360.10 | 1,301.30 | ' | 0 | 0 | 0 | 1,275.20 | 1,326 | 1,264.50 | 118 | 124 | 133.6 | -95.7 | -89.9 | -96.8 | ' |
Cost of products sold: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cost of products sold, excluding depreciation and amortization and other items | 254.3 | 259.5 | 261.5 | 263.6 | 264.8 | 268.9 | 284.4 | 298.1 | 1,038.90 | 1,116.20 | 1,129 | ' | 0 | 0 | 0 | 1,026 | 1,090 | 1,098.70 | 105.7 | 110.2 | 125.4 | -92.8 | -84 | -95.1 | ' |
Unrealized (gains) losses on derivative instruments | -4.1 | -1.5 | 4.2 | 0.7 | 0.1 | -12.3 | 0.1 | -3.1 | -0.7 | -15.2 | 29.9 | ' | 0 | 0 | 0 | -0.7 | -15.2 | 29.9 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Restructuring benefits | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -0.3 | ' | ' | ' | 0 | ' | ' | -0.3 | ' | ' | 0 | ' | ' | 0 | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 28.1 | 26.5 | 25.2 | ' | 0 | 0 | 0 | 27 | 25.5 | 24.3 | 1.1 | 1 | 0.9 | 0 | 0 | 0 | ' |
Selling, administrative, research and development, and general (includes accumulated other comprehensive income reclassifications related to VEBA and Canadian pension plan adjustments of $5.7, $7.3 and $4.8 for the years ended 2013, 2012 and 2011, respectively) - See Note 7 | ' | ' | ' | ' | ' | ' | ' | ' | 57.9 | 62.2 | 62.7 | ' | 3.8 | 2 | 1.8 | 47.6 | 57.7 | 56.3 | 8.9 | 8.2 | 6.2 | -2.4 | -5.7 | -1.6 | ' |
Other operating (benefits) charges, net | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.5 | -0.2 | ' | ' | 0 | 0 | ' | 4.5 | 0.1 | ' | 0 | -0.3 | ' | 0 | 0 | ' |
Total costs and expenses | ' | ' | ' | ' | ' | ' | ' | ' | 1,124.20 | 1,194.20 | 1,246.30 | ' | 3.8 | 2 | 1.8 | 1,099.90 | 1,162.50 | 1,209 | 115.7 | 119.4 | 132.2 | -95.2 | -89.7 | -96.7 | ' |
Operating (loss) income | 41.6 | 41.6 | 40.1 | 50 | 23.9 | 56.2 | 39.6 | 46.2 | 173.3 | 165.9 | 55 | ' | -3.8 | -2 | -1.8 | 175.3 | 163.5 | 55.5 | 2.3 | 4.6 | 1.4 | -0.5 | -0.2 | -0.1 | ' |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -35.7 | -29.1 | -18 | ' | -36.6 | -28.2 | -16.2 | 0.5 | -1 | -1.8 | 0 | 0 | 0 | 0.4 | 0.1 | 0 | ' |
Other (expense) income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other income, net | ' | ' | ' | ' | ' | ' | ' | ' | 5.6 | 2.8 | 4.3 | ' | 3.9 | 0.8 | 4 | 2 | 1.5 | 0.4 | 0 | 0.6 | -0.1 | -0.3 | -0.1 | 0 | ' |
(Loss) income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 143.2 | 139.6 | 41.3 | ' | -36.5 | -29.4 | -14 | 177.8 | 164 | 54.1 | 2.3 | 5.2 | 1.3 | -0.4 | -0.2 | -0.1 | ' |
Income tax provision | ' | ' | ' | ' | ' | ' | ' | ' | -38.4 | -53.8 | -16.2 | ' | 0 | 0 | 0 | -68.1 | -62.6 | -21.8 | 15.7 | -2.3 | -0.6 | 14 | 11.1 | 6.2 | ' |
Earnings in equity of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | 141.3 | 115.2 | 39.1 | 17.6 | 2.6 | 0.8 | 0 | 0 | 0 | -158.9 | -117.8 | -39.9 | ' |
Net income | 27.3 | 25.4 | 18.6 | 33.5 | 9.1 | 29.2 | 21 | 26.5 | 104.8 | 85.8 | 25.1 | ' | 104.8 | 85.8 | 25.1 | 127.3 | 104 | 33.1 | 18 | 2.9 | 0.7 | -145.3 | -106.9 | -33.8 | ' |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 110.1 | 144.8 | -40.2 | ' | 110.1 | 144.8 | -40.2 | 131.6 | 164 | -32.2 | 19 | 1.9 | 0.7 | -150.6 | -165.9 | 31.5 | ' |
Cash flows from operating activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net cash (used in) provided by operating activities | ' | ' | ' | ' | ' | ' | ' | ' | 111.7 | 152.4 | 62.8 | ' | -29.2 | -17.8 | -10.2 | 131.7 | 164.3 | 71.9 | 9.2 | 5.9 | 1.1 | 0 | 0 | 0 | ' |
Cash flows from investing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | -70.4 | -44.1 | -32.5 | ' | 0 | 0 | 0 | -66.5 | -42.6 | -31.2 | -3.9 | -1.5 | -1.3 | 0 | 0 | 0 | ' |
Purchase of available for sale securities | ' | ' | ' | ' | ' | ' | ' | ' | -227.8 | -85 | -0.3 | ' | 0 | 0 | 0 | -227.8 | -85 | -0.3 | ' | 0 | 0 | 0 | 0 | 0 | ' |
Proceeds from disposition of available for sale securities | ' | ' | ' | ' | ' | ' | ' | ' | 183.1 | 0 | 0 | ' | 0 | ' | ' | 183.1 | ' | ' | 0 | ' | ' | 0 | ' | ' | ' |
Proceeds from disposal of property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0.3 | 0.7 | ' | ' | 0 | 0 | ' | 0.3 | 0 | ' | 0 | 0.7 | ' | 0 | 0 | ' |
Cash payment for acquisition of manufacturing facility and related assets (net of $4.9 of cash received in connection with the acquisition in 2011) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -83.2 | ' | ' | ' | 0 | ' | ' | -83.2 | ' | ' | 0 | ' | ' | 0 | ' |
Change in restricted cash | ' | ' | ' | ' | ' | ' | ' | ' | 1.7 | 6.9 | -1 | ' | 0 | 6.9 | 0 | 0.7 | 0.4 | -1 | 1 | -0.4 | 0 | 0 | 0 | 0 | ' |
Net cash provided by (used in) investing activities | ' | ' | ' | ' | ' | ' | ' | ' | -113.4 | -121.9 | -116.3 | ' | 0 | 6.9 | 0 | -110.5 | -126.9 | -115.7 | -2.9 | -1.9 | -0.6 | 0 | 0 | 0 | ' |
Cash flows from financing activities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of Senior Notes | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 225 | 0 | ' | ' | 225 | ' | ' | 0 | ' | ' | 0 | ' | ' | 0 | ' | ' |
Repayments of capital lease | ' | ' | ' | ' | ' | ' | ' | ' | -0.1 | -0.1 | -0.1 | ' | 0 | 0 | 0 | -0.1 | -0.1 | -0.1 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Repayment of promissory notes | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -4.7 | -8.3 | ' | ' | 0 | 0 | ' | -4.7 | -8.3 | ' | 0 | 0 | ' | 0 | 0 | ' |
Cash paid for financing costs | ' | ' | ' | ' | ' | ' | ' | ' | 0 | -6.6 | -2.1 | ' | ' | -6.6 | 0 | ' | 0 | -2.1 | ' | 0 | 0 | ' | 0 | 0 | ' |
Repurchase of common stock | ' | ' | ' | ' | ' | ' | ' | ' | -78.3 | 0 | 0 | ' | -78.3 | ' | ' | 0 | ' | ' | 0 | ' | ' | 0 | ' | ' | ' |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | 1.3 | 0.2 | ' | 0 | 0 | 0 | 1.1 | 1.3 | 0.2 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Repurchase of common stock to cover employees' tax withholdings upon vesting of non-vested shares | ' | ' | ' | ' | ' | ' | ' | ' | -2.5 | -2.2 | -3.1 | ' | -2.5 | -2.2 | -3.1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Cash dividend paid to stockholders | ' | ' | ' | ' | ' | ' | ' | ' | -23 | -19.6 | -18.9 | ' | -23 | -19.6 | -18.9 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Cash dividend returned to the Company | ' | ' | 0.6 | ' | ' | ' | ' | ' | 0.6 | 0 | 0 | ' | 0.6 | ' | ' | 0 | ' | ' | 0 | ' | ' | 0 | ' | ' | ' |
Intercompany loan | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | 132.4 | -185.7 | 32.2 | -130.5 | 189.1 | -32.5 | -1.9 | -3.4 | 0.3 | 0 | 0 | 0 | ' |
Net cash provided by (used in) financing activities | ' | ' | ' | ' | ' | ' | ' | ' | -102.2 | 193.1 | -32.3 | ' | 29.2 | 10.9 | 10.2 | -129.5 | 185.6 | -42.8 | -1.9 | -3.4 | 0.3 | 0 | 0 | 0 | ' |
Net (decrease) increase in cash and cash equivalents during the period | ' | ' | ' | ' | ' | ' | ' | ' | -103.9 | 223.6 | -85.8 | ' | 0 | 0 | 0 | -108.3 | 223 | -86.6 | 4.4 | 0.6 | 0.8 | 0 | 0 | 0 | ' |
Cash and cash equivalents at beginning of period | ' | ' | ' | 273.4 | ' | ' | ' | 49.8 | 273.4 | 49.8 | 135.6 | ' | 5 | 5 | 5 | 266 | 43 | 129.6 | 2.4 | 1.8 | 1 | 0 | 0 | 0 | ' |
Cash and cash equivalents at end of period | $169.50 | ' | ' | ' | $273.40 | ' | ' | ' | $169.50 | $273.40 | $49.80 | ' | $5 | $5 | $5 | $157.70 | $266 | $43 | $6.80 | $2.40 | $1.80 | $0 | $0 | $0 | ' |
Quarterly_Financial_Data_Detai
Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Quarterly Financial Data [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net sales | $311.30 | $319.90 | $328.90 | $337.40 | $314 | $335.50 | $345.20 | $365.40 | $1,297.50 | $1,360.10 | $1,301.30 | |||
Cost of products sold, excluding depreciation and amortization and other items | 254.3 | 259.5 | 261.5 | 263.6 | 264.8 | 268.9 | 284.4 | 298.1 | 1,038.90 | 1,116.20 | 1,129 | |||
Unrealized (gains) losses on derivative instruments | -4.1 | -1.5 | 4.2 | 0.7 | 0.1 | -12.3 | 0.1 | -3.1 | -0.7 | -15.2 | 29.9 | |||
Gross Profit | 61.1 | 61.9 | 63.2 | 73.1 | 49.1 | 78.9 | 60.7 | 70.4 | ' | ' | ' | |||
Operating income | 41.6 | 41.6 | 40.1 | 50 | 23.9 | 56.2 | 39.6 | 46.2 | 173.3 | 165.9 | 55 | |||
Net income | $27.30 | $25.40 | $18.60 | $33.50 | $9.10 | $29.20 | $21 | $26.50 | $104.80 | $85.80 | $25.10 | |||
Earnings per common share, Basic: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income per share | $1.48 | $1.37 | $0.99 | $1.75 | $0.48 | $1.52 | $1.10 | $1.39 | $5.56 | $4.49 | $1.32 | |||
Earnings per common share, Diluted: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Net income per share | $1.44 | $1.34 | $0.98 | $1.73 | $0.47 | $1.51 | $1.09 | $1.38 | $5.44 | [1],[2] | $4.45 | [1],[2] | $1.32 | [1],[2] |
High | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Common stock market price: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Common stock market price (based on daily closing price) | $73.03 | $71.96 | $65.44 | $65.03 | $61.75 | $59.15 | $52.57 | $52.46 | ' | ' | ' | |||
Low | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Common stock market price: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Common stock market price (based on daily closing price) | $65.23 | $62.31 | $58.75 | $60.77 | $56.27 | $49.42 | $46.62 | $46.82 | ' | ' | ' | |||
[1] | The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2013 and 2012 were calculated using the treasury method. The diluted weighted-average number of common shares outstanding and diluted earnings per share for 2011 were calculated using the two-class method (see Note 1). | |||||||||||||
[2] | Diluted weighted-average number of common shares outstanding and diluted earnings per share for 2013 and 2012 are based on the treasury method. Diluted weighted-average number of common shares outstanding and diluted earnings per share for 2011 is based on the two-class method (see Note 1 and Note 13). |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | Dec. 31, 2013 | Feb. 14, 2014 | Dec. 31, 2013 | Feb. 14, 2014 | Dec. 31, 2013 | Feb. 14, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 14, 2014 |
Subsequent Event | Convertible Notes | Convertible Notes | Call Options | Call Options | Warrants | Warrants | Warrants | ||
Subsequent Event | Subsequent Event | Subsequent Event | |||||||
Subsequent Events (Textuals) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash dividend declared per common share | ' | $0.35 | ' | ' | ' | ' | ' | ' | ' |
Dividends | ' | $6,400,000 | ' | ' | ' | ' | ' | ' | ' |
Conversion rate of common stock shares per $1,000 of principal amount | ' | ' | 20.7903 | 20.8234 | ' | ' | ' | ' | ' |
Principal amount in conversion feature | ' | ' | $1,000 | $1,000 | ' | ' | ' | ' | ' |
Conversion price of note | $48.10 | $48.02 | ' | ' | ' | ' | ' | ' | ' |
Exercise price of call options | ' | ' | ' | ' | $48.10 | $48.02 | ' | ' | ' |
Exercise price per share of Warrants | ' | ' | ' | ' | ' | ' | 61.08 | 61.31 | 60.98 |