Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 20, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | Kaiser Aluminum Corp | |
Entity Central Index Key | 811,596 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,227,403 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 54.3 | $ 177.7 |
Short-term investments | 30 | 114 |
Receivables: | ||
Trade receivables – net | 138.6 | 129.3 |
Other | 5.9 | 10.9 |
Inventories | 217.3 | 214.7 |
Prepaid expenses and other current assets | 100.4 | 178.6 |
Total current assets | 546.5 | 825.2 |
Property, plant and equipment – net | 464.5 | 454.9 |
Net assets of Union VEBA | 0 | 340.1 |
Deferred tax assets – net (including deferred tax liability relating to the Union VEBA of $0.0 and $127.0 at June 30, 2015 and December 31, 2014, respectively) | 148.7 | 30.9 |
Intangible assets – net | 31.3 | 32.1 |
Goodwill | 37.2 | 37.2 |
Other assets | 23.1 | 23.3 |
Total | 1,251.3 | 1,743.7 |
Current liabilities: | ||
Accounts payable | 77.4 | 81.4 |
Accrued salaries, wages and related expenses | 34.4 | 39.6 |
Other accrued liabilities | 51.6 | 132.8 |
Current portion of long-term debt | 0 | 172.5 |
Short-term capital leases | 0.1 | 0.1 |
Total current liabilities | 163.5 | 426.4 |
Net liabilities of Salaried VEBA | 16.4 | 17.2 |
Deferred tax liabilities | 0.8 | 0.9 |
Long-term liabilities | 86.8 | 58.3 |
Long-term debt | 225 | 225 |
Total liabilities | $ 492.5 | $ 727.8 |
Commitments and contingencies – Note 7 | ||
Stockholders’ equity: | ||
Preferred stock, 5,000,000 shares authorized at both June 30, 2015 and December 31, 2014; no shares were issued and outstanding at June 30, 2015 and December 31, 2014 | $ 0 | $ 0 |
Common stock, par value $0.01, 90,000,000 shares authorized at both June 30, 2015 and at December 31, 2014; 21,277,185 shares issued and 17,134,818 shares outstanding at June 30, 2015; 21,197,164 shares issued and 17,607,251 shares outstanding at December 31, 2014 | 0.2 | 0.2 |
Additional paid in capital | 1,031.4 | 1,028.5 |
(Accumulated deficit) retained earnings | (5.4) | 280.4 |
Treasury stock, at cost, 4,142,367 shares at June 30, 2015 and 3,589,913 shares at December 31, 2014, respectively | (238.6) | (197.1) |
Accumulated other comprehensive loss | (28.8) | (96.1) |
Total stockholders’ equity | 758.8 | 1,015.9 |
Total | $ 1,251.3 | $ 1,743.7 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Receivables: | ||
Allowance for doubtful receivables | $ 0.8 | $ 0.8 |
Deferred tax liabilities relating to the VEBAs | $ 0 | $ 127 |
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 | 21,277,185 | 21,197,164 |
Common stock, shares outstanding | 17,134,818 | 17,607,251 |
Treasury stock, shares | 4,142,367 | 3,589,913 |
Statements of Consolidated Inco
Statements of Consolidated Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | $ 367.2 | $ 344.1 | $ 738.9 | $ 679.2 |
Cost of products sold: | ||||
Cost of products sold, excluding depreciation and amortization and other items | 294.8 | 275.5 | 597.1 | 558.4 |
Unrealized losses (gains) on derivative instruments | 1.5 | (1.6) | 6 | (3.6) |
Depreciation and amortization | 8.1 | 7.7 | 16.1 | 15.1 |
Selling, general, administrative, research and development | 23.6 | 22 | 46.3 | 42.3 |
Loss on removal of Union VEBA net assets – Note 5 | 0.6 | (6.1) | 1.2 | (11.7) |
Loss on removal of Union VEBA net assets | 1.6 | 493.8 | 0 | |
Pre-tax loss on settlement of Union VEBA | 0 | |||
Total selling, administrative, research and development, and general | 25.8 | 15.9 | 541.3 | 30.6 |
Other Operating Income (Expense), Net | 0 | 0.2 | 0 | 0.2 |
Total costs and expenses | 330.2 | 297.7 | 1,160.5 | 600.7 |
Operating income (loss) | 37 | 46.4 | (421.6) | 78.5 |
Other (expense) income: | ||||
Interest expense | (5.2) | (9.2) | (15) | (18) |
Other income, net – Note 13 | 0.4 | 1.8 | 0.8 | 3.7 |
Income (loss) before income taxes | 32.2 | 39 | (435.8) | 64.2 |
Income tax (provision) benefit | (12) | (14.5) | 163.8 | (23.9) |
Net income (loss) | $ 20.2 | $ 24.5 | $ (272) | $ 40.3 |
Net income (loss) per common share: | ||||
Basic | $ 1.19 | $ 1.38 | $ (15.78) | $ 2.25 |
Diluted | $ 1.11 | $ 1.33 | $ (15.78) | $ 2.18 |
Weighted-average number of common shares outstanding (in thousands): | ||||
Basic | 17,006 | 17,841 | 17,233 | 17,889 |
Diluted | 18,192 | 18,458 | 17,233 | 18,512 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ 20.2 | $ 24.5 | $ (272) | $ 40.3 |
Reclassification adjustments: | ||||
Amortization of net actuarial loss (gain) | 0.2 | (0.6) | 0.5 | (0.9) |
Amortization of prior service cost | 0.8 | 2.6 | 1.5 | 5.4 |
Removal of obligation relating to Union VEBA | 0 | 0 | 106.6 | 0 |
Other comprehensive income relating to VEBAs | 1 | 2 | 108.6 | 4.5 |
Available for sale securities: | ||||
Unrealized (loss) gain on available for sale securities | (0.3) | 0.2 | (0.3) | 0.3 |
Reclassification adjustments: | ||||
Reclassification of unrealized loss (gain) upon sale of available for sale securities | 0.1 | (0.1) | 0.2 | (0.2) |
Other comprehensive (loss) income relating to available for sale securities | (0.2) | 0.1 | (0.1) | 0.1 |
Unrealized loss on foreign currency cash flow hedges | (0.2) | 0 | (0.2) | 0 |
Foreign currency translation adjustment | 0 | (0.1) | 0.1 | 0.1 |
Other comprehensive income, before tax | 0.6 | 2 | 108.4 | 4.7 |
Income tax (expense) benefit related to items of other comprehensive income (loss) | (0.2) | 0.1 | (41.1) | (1.7) |
Other comprehensive income, net of tax | 0.4 | 2.1 | 67.3 | 3 |
Comprehensive income (loss) | $ 20.6 | $ 26.6 | $ (204.7) | $ 43.3 |
Statement of Consolidated Stock
Statement of Consolidated Stockholders' Equity - 6 months ended Jun. 30, 2015 - USD ($) $ in Millions | Total | Common Stock | Additional Paid in Capital | Retained Earnings (Accumulated Deficit) | Treasury Stock | Accumulated Other Comprehensive Loss |
Beginning balance, shares at Dec. 31, 2014 | 17,607,251 | 17,607,251 | ||||
Beginning balance at Dec. 31, 2014 | $ 1,015.9 | $ 0.2 | $ 1,028.5 | $ 280.4 | $ (197.1) | $ (96.1) |
Stockholders' Equity [Roll Forward] | ||||||
Net loss | (272) | (272) | ||||
Other comprehensive income, net of tax | 67.3 | 67.3 | ||||
Issuance of non-vested shares to employees and non-employee directors | 62,285 | |||||
Issuance of common shares to non-employee directors | 2,436 | |||||
Issuance of common shares to non-employee directors | 0.2 | 0.2 | ||||
Issuance of common shares to employees upon vesting of restricted stock units and performance shares | 50,809 | |||||
Cancellation of employee non-vested shares | (540) | |||||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | (34,969) | |||||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | (3) | (3) | ||||
Repurchase of common stock | (552,454) | |||||
Repurchase of common stock | (41.5) | (41.5) | ||||
Cash dividends on common stock ($0.80 per share) | (14) | (14) | ||||
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 | 4.6 | 4.6 | ||||
Dividends on unvested equity awards that were canceled | $ (0.2) | 0.2 | ||||
Ending balance, shares at Jun. 30, 2015 | 17,134,818 | 17,134,818 | ||||
Ending balance at Jun. 30, 2015 | $ 758.8 | $ 0.2 | $ 1,031.4 | $ (5.4) | $ (238.6) | $ (28.8) |
Statement of Consolidated Stoc7
Statement of Consolidated Stockholders' Equity Statement of Consolidated Stockholders' Equity (Parenthetical) | 6 Months Ended |
Jun. 30, 2015$ / shares | |
Retained Earnings (Accumulated Deficit) | |
Cash dividend declared per common share | $ 0.80 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (272) | $ 40.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 15.3 | 14.3 |
Amortization of definite-lived intangible assets | 0.8 | 0.8 |
Amortization of debt discount and debt issuance costs | 3.6 | 5.8 |
Deferred income taxes – Note 4 | (163.8) | 22.4 |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | (1.1) | (0.8) |
Non-cash equity compensation | 4.8 | 4.5 |
Non-cash unrealized losses (gains) on derivative instruments | 6 | (4.9) |
Non-cash impairment charges | 0 | 0.2 |
Losses on disposition of property, plant and equipment | 0 | (0.1) |
Non-cash net periodic postretirement benefit cost (income) relating to VEBAs1 | 1.2 | (11.7) |
Non-cash loss on removal of Union VEBA net assets1 | 446.7 | 0 |
Other non-cash changes in assets and liabilities | 0.4 | 0.3 |
Changes in operating assets and liabilities: | ||
Trade and other receivables | (4.3) | (0.9) |
Inventories | (2.6) | 16.3 |
Prepaid expenses and other current assets | (1.7) | (2.1) |
Accounts payable | (6.1) | 12.2 |
Accrued liabilities1 | 7 | (10.2) |
Annual variable cash contributions to VEBAs1 | (13.7) | (16) |
Long-term assets and liabilities, net1 | 27.8 | 0.7 |
Net cash provided by operating activities | 48.3 | 71.3 |
Cash flows from investing activities: | ||
Capital expenditures | (22.9) | (30.1) |
Purchase of available for sale securities | (0.5) | (23.4) |
Proceeds from disposition of available for sale securities | 84 | 25 |
Net cash provided by (used in) investing activities | 60.6 | (28.5) |
Cash flows from financing activities: | ||
Repayment of Convertible Notes2 | (175) | 0 |
Proceeds from cash-settled call options related to repayment of Convertible Notes2 | 94.9 | 0 |
Payment for conversion premium related to repayment of Convertible Notes2 | (94.9) | 0 |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1.1 | 0.8 |
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | (3) | (2.4) |
Repurchase of common stock | (41.4) | (23.7) |
Cash dividend paid to stockholders | (14) | (12.8) |
Net cash used in financing activities | (232.3) | (38.1) |
Net (decrease) increase in cash and cash equivalents during the period | (123.4) | 4.7 |
Cash and cash equivalents at beginning of period | 177.7 | 169.5 |
Cash and cash equivalents at end of period | $ 54.3 | $ 174.2 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies This Quarterly Report on Form 10-Q (this "Report") should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . Unless the context otherwise requires, references in these notes to interim consolidated financial statements - unaudited to "Kaiser Aluminum Corporation," "we," "us," "our," "the Company" and "our Company" refer to Kaiser Aluminum Corporation and its consolidated subsidiaries. Organization and Nature of Operations. Kaiser Aluminum Corporation 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, automotive, general engineering and other industrial end market applications. Our business is organized into one operating segment, Fabricated Products. See Note 11 for additional information regarding our reportable segment and business unit. Principles of Consolidation and Basis of Presentation. The accompanying unaudited consolidated financial statements include the accounts of our 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 ("SEC") applicable for interim periods and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In management’s opinion, all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for our interim periods are not necessarily indicative of the results of operations that may be achieved for the entire 2015 fiscal year. The financial information as of December 31, 2014 is derived from our audited consolidated financial statements and footnotes for the year ended December 31, 2014 included in our Annual Report on Form 10-K. 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 our 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 our consolidated financial position and results of operations. 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 excesses of current cost over the stated LIFO value of inventory at June 30, 2015 and December 31, 2014 was $10.2 million and $37.6 million , respectively. 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 our inventories at June 30, 2015 and December 31, 2014 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 on 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 $0.4 million and $0.8 million during the quarters ended June 30, 2015 and June 30, 2014 , respectively. The amount of interest expense capitalized as construction in progress was $0.7 million and $1.9 million during the six months ended June 30, 2015 and June 30, 2014 , 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. 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 the quarters ended June 30, 2015 and June 30, 2014 , we recorded depreciation expense of $7.6 million and $7.3 million , respectively, relating to our operating facilities in the Fabricated Products segment. For the six months ended June 30, 2015 and June 30, 2014 , we recorded depreciation expense of $15.1 million and $14.1 million , respectively, relating to our operating facilities in the Fabricated Products segment. An immaterial amount of depreciation expense was also recorded within All Other for all periods presented in this Report. We classify assets as held for sale only when an asset is being actively marketed and expected to sell within 12 months. Assets held for sale are initially measured at the lesser of the assets’ carrying amount and the fair value less costs to sell. Concentration of Labor Subject to Collective Bargaining Agreements . At June 30, 2015 , approximately 63% of our employees were covered by collective bargaining agreements and none of our employees were covered by collective bargaining agreements with expiration dates occurring within the remainder of 2015. Dividends . To the extent we expect to be in a capital surplus position by the end of the fiscal year, cash dividends and dividend equivalents paid are charged against (Accumulated deficit) retained earnings; otherwise, dividends and dividend equivalents paid are charged against Additional paid in capital. Foreign Currency Risk Management. From time to time, we enter into foreign currency forward contracts to protect the value of anticipated foreign currency expenses associated cash commitments for equipment purchases. These derivative instruments are designated and qualify for cash flow hedge accounting and are adjusted to current market values each reporting period. Both realized and unrealized periodic gains and losses of derivative instruments designated as cash flow hedges are deferred in Accumulated other comprehensive loss until depreciation on the underlying equipment commences. Upon commencement, realized gains and losses are recorded in Net income (loss) as an adjustment to depreciation expense in the period in which depreciation is recognized on the underlying equipment. Depending on the time to maturity and asset or liability position, the carrying values of cash flow hedges are included in Prepaid expenses and other current assets, Other assets, Other accrued liabilities or Long-term liabilities. Our policy requires that derivative instruments used as hedges must be effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the instrument contract. Hedge effectiveness is assessed periodically. Any derivative instrument not designated as a hedge, or so designated but ineffective, is adjusted to market value and recognized in net income immediately. If a cash flow hedge ceases to qualify for hedge accounting treatment or is terminated, the derivative instrument would continue to be carried on the balance sheet at fair value until settled and future adjustments to the derivative instrument’s fair value would be recognized in earnings immediately. If a forecasted equipment purchase was no longer probable to occur, amounts previously deferred in accumulated other comprehensive income would be recognized immediately in earnings. See Note 8 for additional information. We are exposed to counterparty credit risk on all of our derivative instruments. Accordingly, we have established and maintained strict counterparty credit guidelines and entered into hedges only with major financial institutions that are investment grade or better. We do not have significant exposure to any one counterparty and management believes the risk of loss is remote and in any event would not be material. Additionally, we do not require collateral under these agreements. New Accounting Pronouncements. ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), was issued in May 2014. ASU 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the guidance provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. We expect to adopt ASU 2014-09 for the fiscal year ending December 31, 2018. ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period - Consensus of the FASB Emerging Issues Task Force ("ASU 2014-12"), was issued in June 2014. ASU 2014-12 requires an entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. Our adoption of this ASU in the first quarter of 2015 did not have a material impact on our consolidated financial statements. ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"), was issued in April 2015. ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in an entity’s balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of being presented as a deferred charge in the balance sheet. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. An entity is required to adopt ASU 2015-03 for reporting periods beginning on or after December 15, 2015. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. ASU No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"), was issued in April 2015. The ASU requires companies to perform the same assessment that vendors currently perform under ASC 985-605; that is, companies must determine whether an arrangement with its vendor contains a software license element. If so, the related fees paid are accounted for as an internal-use software intangible under ASC 350-40; if not, the arrangement is accounted for as a service contract. As a result of the issuance of this ASU, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. An entity is required to adopt ASU 2015-05 for reporting periods beginning on or after December 15, 2015. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information June 30, 2015 December 31, 2014 (In millions of dollars) Cash and Cash Equivalents Cash and money market funds $ 42.3 $ 29.5 Commercial paper 12.0 148.2 Total $ 54.3 $ 177.7 Trade Receivables – Net Billed trade receivables $ 138.6 $ 128.7 Unbilled trade receivables 0.8 1.4 Trade receivables, gross 139.4 130.1 Allowance for doubtful receivables (0.8 ) (0.8 ) Trade receivables – net $ 138.6 $ 129.3 Inventories Finished products $ 64.6 $ 73.6 Work-in-process 70.2 66.7 Raw materials 60.4 54.2 Operating supplies and repair and maintenance parts 22.1 20.2 Total $ 217.3 $ 214.7 Prepaid Expenses and Other Current Assets Current derivative assets – Notes 8 and 9 $ 0.3 $ 85.7 Current deferred tax assets 92.2 86.4 Short-term restricted cash 0.3 0.3 Prepaid taxes 2.0 — Other 5.6 6.2 Total $ 100.4 $ 178.6 June 30, 2015 December 31, 2014 (In millions of dollars) Property, Plant and Equipment – Net Land and improvements $ 22.7 $ 22.9 Buildings and leasehold improvements 64.1 63.8 Machinery and equipment 523.2 509.8 Construction in progress 36.1 25.2 Property, plant and equipment – gross 646.1 621.7 Accumulated depreciation (181.9 ) (166.8 ) Assets held for sale 0.3 — Property, plant and equipment – net $ 464.5 $ 454.9 Other Assets Restricted cash $ 10.4 $ 10.0 Deferred financing costs 5.0 5.9 Deferred compensation plan assets 7.6 7.3 Other 0.1 0.1 Total $ 23.1 $ 23.3 Other Accrued Liabilities Current derivative liabilities – Notes 8 and 9 $ 15.6 $ 94.9 Uncleared cash disbursements 5.0 9.1 Accrued income taxes and taxes payable 6.3 5.2 Accrued annual contribution to VEBAs — 13.7 Accrued contingent contribution to Union VEBA - Note 5 17.1 — Short-term environmental accruals – Note 7 2.2 2.3 Accrued interest 1.7 3.7 Short-term deferred revenue 0.2 0.2 Other 3.5 3.7 Total $ 51.6 $ 132.8 Long-Term Liabilities Derivative liabilities – Notes 8 and 9 $ 2.0 $ 1.9 Income tax liabilities 0.7 2.4 Workers’ compensation accruals 20.7 21.5 Long-term environmental accruals – Note 7 17.3 17.0 Long-term asset retirement obligations 4.7 4.4 Deferred compensation liabilities 7.8 7.2 Long-term deferred revenue 0.4 0.5 Long-term capital leases 0.1 0.1 Long-term portion of contingent contribution to Union VEBA – Note 5 29.9 — Other long-term liabilities 3.2 3.3 Total $ 86.8 $ 58.3 |
Long-Term Debt and Credit Facil
Long-Term Debt and Credit Facility | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Debt and Credit Facility Senior Notes In May 2012, we issued $225.0 million principal amount of 8.25% unsecured senior notes due June 1, 2020 ("Senior Notes") at 100% of the principal amount. Interest expense, including amortization of deferred financing costs, relating to the Senior Notes was $4.9 million and $9.7 million for the quarter and six months ended June 30, 2015 , respectively. Interest expense, including amortization of deferred financing costs, relating to the Senior Notes were $4.9 million and $9.7 million for the quarter and six months ended June 30, 2014 , respectively. A portion of the interest relating to the Senior Notes was capitalized as construction in progress. Cash Convertible Senior Notes Convertible Notes. In March 2010, we issued $175.0 million principal amount of 4.50% unsecured Cash Convertible Senior Notes due April 1, 2015 ("Convertible Notes"). We accounted for the cash conversion feature of the Convertible Notes as a separate derivative instrument ("Bifurcated Conversion Feature") with the fair value on the issuance date equaling the original issuance discount for purposes of accounting for the debt component of the Convertible Notes. At December 31, 2014 , the carrying amount of the Convertible Notes, net of discount, was $172.5 million , of which $2.5 million was unamortized issuance discount. The following table provides additional information regarding the Convertible Notes (in millions of dollars): Quarter Ended Six Months Ended 2015 2014 2015 2014 Contractual coupon interest $ — $ 1.9 $ 2.0 $ 3.9 Amortization of discount — 2.3 2.4 4.4 Amortization of deferred financing costs — 0.3 0.3 0.6 Total interest expense 1 $ — $ 4.5 $ 4.7 $ 8.9 ____________ 1 A portion of the interest relating to the Convertible Notes was capitalized as construction in progress. Substantially all of the Convertible Notes were presented for conversion during the quarter ended March 31, 2015 and were settled in cash on April 1, 2015. The conversion value of 154.261% of par was determined over the final settlement period of 50 consecutive trading days that ended on March 27, 2015, resulting in a total payment amount to settle the Convertible Notes on April 1, 2015 of $273.8 million , comprised of a final coupon payment of $3.9 million , principal of $175.0 million and conversion premium of $94.9 million . Convertible Note Hedge Transactions . In connection with the issuance of our Convertible Notes, we entered into privately negotiated transactions whereby we purchased cash-settled call options ("Option Assets") relating to shares of our common stock that settled contemporaneously with the Convertible Notes. On April 1, 2015, we received Option Asset settlement proceeds of $94.9 million , which equaled the aggregate amount of cash that we paid to the holders of the converted Convertible Notes, less the principal amount thereof and interest payable thereon. Accordingly, the net cash outflow to settle our Convertible Notes and Option Assets on April 1, 2015 was $178.9 million . Contemporaneous with the issuance of the Convertible Notes and our purchase of the Option Assets in 2010, we sold net-share-settled warrants ("Warrants") relating to approximately 3.7 million notional shares of our common stock. Beginning on July 1, 2015, the Warrants have commenced settling ratably over the subsequent 120 trading day period. As of June 30, 2015 , after reflecting cumulative anti-dilution adjustments for payment of quarterly dividends paid in excess of $0.24 per share, the exercise price of the Warrants was $60.44 per share. See Note 16 for additional information relating to the settlement of our Warrants beginning on July 1, 2015. See " Fair Values of Financial Assets and Liabilities - All Other Financial Assets and Liabilities " in Note 9 for information relating to the estimated fair value of the Senior Notes, Convertible Notes, Bifurcated Conversion Feature and Option Assets. Revolving Credit Facility Our credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the other financial institutions party thereto ("Revolving Credit Facility") provides us with a $300.0 million funding commitment through September 30, 2016. We had $274.7 million of borrowing availability under the Revolving Credit Facility at June 30, 2015 , based on the borrowing base determination then in effect. At June 30, 2015 , there were no borrowings under the Revolving Credit Facility and $7.6 million was being used to support outstanding letters of credit, leaving $267.1 million of net borrowing availability. The interest rate applicable to any overnight borrowings under the Revolving Credit Facility would have been 4.0% at June 30, 2015 . |
Income Tax Matters
Income Tax Matters | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Matters | Income Tax Matters The provision for (benefit from) incomes taxes, for each period presented, consisted of the following (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Domestic $ 13.4 $ 13.9 $ (162.4 ) $ 23.0 Foreign (1.4 ) 0.6 (1.4 ) 0.9 Total $ 12.0 $ 14.5 $ (163.8 ) $ 23.9 The income tax provision (benefit) for the quarters ended June 30, 2015 and June 30, 2014 was $12.0 million and $14.5 million , reflecting an effective tax rate of 37.2% and 37.0% , respectively. The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended June 30, 2015 was primarily due to an increase in the valuation allowance of $1.9 million , resulting in a 5.8% increase in the effective tax rate. This increase in the valuation allowance was due to unutilized state NOL carryforwards that are expected to expire. This was partially offset by a decrease in unrecognized tax benefits, including interest and penalties, of $1.8 million , resulting in a 5.4% decrease in the effective tax rate. The decrease in unrecognized tax benefits was a result of a decrease in prior year positions. There was no material difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended June 30, 2014 . The income tax provision (benefit) for the six months ended June 30, 2015 and June 30, 2014 was $(163.8) million and $23.9 million , reflecting an effective tax rate of 37.6% and 37.2% , respectively. There was no material difference between the effective tax rate and the projected blended statutory tax rate for the six months ended June 30, 2015 and June 30, 2014 . The $(163.8) million income tax benefit for the six months ended June 30, 2015 included a $184.4 million tax benefit that was recorded as a result of removing the Union VEBA net assets and related deferred tax liabilities from our consolidated financial statements. See Note 5 of Notes to Interim Financial Statements included in this Report for disclosure regarding employee benefits. The audit settlement and advance pricing agreement in 2013 with Canada resulted in a cash tax benefit of $10.4 million in 2013, which represented amounts previously paid against Canadian accrued taxes. As of June 30, 2015 , the Company had received $9.3 million , with the remaining $1.1 million expected to be received within the next 12 months. Our gross unrecognized benefits relating to uncertain tax positions were $1.6 million and $2.2 million at June 30, 2015 and December 31, 2014 , respectively, of which, $0.5 million and $1.1 million would go through our income tax provision and thus impact the effective tax rate at June 30, 2015 and December 31, 2014 , respectively, if the gross unrecognized tax benefits were to be recognized. The Company does not expect its gross unrecognized tax benefits to significantly change within the next 12 months . |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | Employee Benefits Pension and Similar Benefit Plans. We provide contributions to (i) multi-employer pension plans sponsored by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union AFL-CIO, CLC ("USW") and the International Association of Machinists and certain other unions at certain of our production facilities; (ii) defined contribution 401(k) savings plans for hourly bargaining unit employees and salaried and certain hourly non-bargaining unit employees; (iii) a defined benefit plan for salaried employees at our London, Ontario (Canada) facility; and (iv) a non-qualified, unfunded, unsecured plan of deferred compensation for key employees who would otherwise suffer a loss of benefits under our defined contribution plan. VEBA Postretirement Medical Obligations. Certain retirees, their surviving spouses and eligible dependents receive medical coverage through participation in a voluntary employees’ beneficiary association ("VEBA") for the benefit of certain union retirees, their surviving spouses and eligible dependents ("Union VEBA") or a VEBA that provides benefits for certain other eligible retirees, their surviving spouses and eligible dependents ("Salaried VEBA" and, together with the Union VEBA, "VEBAs"). We have no claim to the assets of the VEBAs or any obligation to fund their liabilities. The benefits paid by the VEBAs to the plan participants are made at the sole discretion of the respective VEBA trustees and are outside our control. Our only financial obligations to the VEBAs are (i) an annual variable cash contribution (described in more detail below) and (ii) reimbursement of annual administrative expenses of the VEBAs up to $0.3 million in the aggregate. Nevertheless, we have historically accounted for each of the VEBAs, and continue to account for the Salaried VEBA, as a defined benefit postretirement plan with the maximum benefits payable capped at the aggregate of the current assets of the VEBAs and the estimated future variable contributions from us and earnings thereon. Under this accounting treatment, the funding status of the VEBAs resulted in a liability or asset position on our Consolidated Balance Sheets, even though such liability or asset has no impact on our cash flow or liquidity. The only impact that the VEBAs have on our cash flow or liquidity is with respect to our obligations to make annual variable cash contributions and to reimburse a portion of the VEBAs’ administrative expenses. The amount of annual variable cash contribution to be made by us is determined as follows: 10% of the first $20.0 million 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 million . Such payments may not exceed $20.0 million annually, and payments are allocated between the Union VEBA and the Salaried VEBA at 85.5% and 14.5% , respectively. Amounts owing by us to the VEBAs are recorded on our Consolidated Balance Sheets at the end of each year in Other accrued liabilities (until paid in cash), with corresponding adjustments reflecting an increase in Net assets of VEBAs, a decrease in Net liabilities of VEBAs, or a combination thereof. The annual variable contributions with respect to 2014 and 2013 totaled $13.7 million and $16.0 million at December 31, 2014 and December 31, 2013 , respectively and these contributions were made during the subsequent first quarters. The variable cash contribution obligation to the Union VEBA expires in September 2017, while the obligation to the Salaried VEBA has no express termination. In January 2015, members of the USW at our Newark, Ohio ("Newark") and Spokane, Washington ("Trentwood") facilities ratified a new five-year collective bargaining agreement ("CBA"). The CBA did not extend our obligation to make annual variable contributions to the Union VEBA. As a result of our obligation to make annual variable contributions to the Union VEBA expiring for any period after September 2017, we no longer account for the Union VEBA as a defined benefit plan and have removed the Union VEBA net assets and related deferred tax liabilities from our Consolidated Balance Sheets as of January 1, 2015. In addition, we accrued for the estimated, remaining variable cash contributions through September 2017, which, as of June 30, 2015 , were estimated to be $47.0 million in the aggregate and was recorded in Other accrued liabilities and Long-term liabilities (see Note 2 ). Such amounts will be adjusted quarterly based on our most current cash flow (as previously defined) projections with the changes reflected in our Operating income (loss). The projected benefit obligation and fair value of the plan assets of the Union VEBA as of December 31, 2014 were $391.5 million and $731.6 million , respectively. As a result of the termination of defined benefit plan accounting for the Union VEBA, the projected benefit obligation and fair value of the plan assets were removed from our consolidated financial statements, resulting in a non-cash loss of $307.8 million , net of a $184.4 million tax benefit, during the quarter ended March 31, 2015. Components of Net Periodic Postretirement Benefit (Income) Cost. Our results of operations included the following impacts associated with the VEBAs and the Canadian defined benefit plan: (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. Net periodic postretirement benefit cost related to the Canadian defined benefit plan was not material for the quarters and six months ended June 30, 2015 and June 30, 2014 . The following table presents the components of net periodic postretirement benefit cost (income) for the VEBAs and charges relating to all other employee benefit plans for the periods presented (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 VEBAs: Service cost 1 $ — $ 0.5 $ — $ 1.1 Interest cost 0.7 4.2 1.4 8.3 Expected return on plan assets (1.1 ) (12.8 ) (2.2 ) (25.6 ) Amortization of prior service cost 0.8 2.6 1.5 5.4 Amortization of net actuarial loss (gain) 0.2 (0.6 ) 0.5 (0.9 ) Total net periodic postretirement benefit cost (income) relating to VEBAs 0.6 (6.1 ) 1.2 (11.7 ) Loss on removal of Union VEBA net assets 2 1.6 — 493.8 — Total VEBAs 2.2 (6.1 ) 495.0 (11.7 ) Other employee benefit plans: Deferred compensation plan 0.1 0.4 0.5 0.6 Defined contribution plans 1.7 1.5 5.7 5.5 Multiemployer pension plans 0.9 0.9 1.8 1.8 Total other employee benefit plans $ 2.7 $ 2.8 $ 8.0 $ 7.9 Total $ 4.9 $ (3.3 ) $ 503.0 $ (3.8 ) ____________ 1 The service cost related to the Salaried VEBA was insignificant for all periods presented. 2 The quarter ended June 30, 2015 includes a $1.6 million adjustment to increase our contingent contribution accrual related to the Union VEBA settlement. The following table presents the allocation of the charges (income) detailed above, by reportable segment and business unit (in millions of dollars – see Note 11 ): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Fabricated Products $ 2.4 $ 2.3 $ 7.0 $ 6.9 All Other 2.5 (5.6 ) 496.0 (10.7 ) Total $ 4.9 $ (3.3 ) $ 503.0 $ (3.8 ) For all periods presented, Net periodic postretirement benefit cost (income) relating to VEBAs is included within All Other. Further, substantially all of the Fabricated Products segment’s employee benefits related charges are in Cost of products sold, excluding depreciation and amortization and other items with the remaining balance in Selling, general, administrative, research and development. |
Employee Incentive Plans
Employee Incentive Plans | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Incentive Plans | Employee Incentive Plans Short-Term Incentive Plans ("STI Plans") We have annual short-term incentive compensation plans for senior management and certain other employees payable at our election in cash, shares of common stock, or a combination of cash and shares of common stock. Amounts earned under STI Plans are based on our adjusted earnings before interest, taxes, depreciation and amortization ("Adjusted EBITDA"), modified for certain safety, quality, delivery, cost and individual performance factors. The Adjusted EBITDA targets are determined based on the economic value added ("EVA") of our Fabricated Products business. Most of our 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 (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Cost of products sold, excluding depreciation and amortization and other items $ 1.4 $ 1.4 $ 2.2 $ 2.5 Selling, general, administrative, research and development 3.2 3.2 5.7 4.5 Total costs recorded in connection with STI Plans $ 4.6 $ 4.6 $ 7.9 $ 7.0 The following table presents the allocation of the charges detailed above, by segment (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Fabricated Products $ 3.1 $ 3.5 $ 5.5 $ 5.4 All Other 1.5 1.1 2.4 1.6 Total costs recorded in connection with STI Plans $ 4.6 $ 4.6 $ 7.9 $ 7.0 Long-Term Incentive Programs ("LTI Programs") General . Executive 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, "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 June 30, 2015 , 706,471 common shares were available for additional awards under the Equity Incentive Plan. Non-Vested Common Shares and Restricted Stock Units. We grant non-vested common shares to our non-employee directors, executive officers and other key employees. We also grant restricted stock units to certain employees. The restricted stock units have rights similar to the rights of non-vested common shares and each restricted stock unit that becomes vested entitles the recipient to receive one common share. For both non-vested common shares and restricted stock units, the service period is generally one year for non-employee directors and three years for executive officers and other key employees. In addition to non-vested common shares and restricted stock units, we grant performance shares to executive officers and other key employees. Each performance share that becomes vested entitles the recipient to receive one common share. Performance shares granted prior to 2014 ("EVA-Based Performance Shares") are subject to performance conditions pertaining to our EVA performance, measured over specified three -year performance periods. The number of EVA-Based Performance Shares that will ultimately vest and result in the issuance of common shares ranges between 0% to 200% of the target number of underlying common shares (constituting approximately one half of the maximum payout) and depends on the average annual EVA achieved for the specified three -year performance period. Performance shares granted after 2013 ("TSR-Based Performance Shares") are subject to performance conditions pertaining to our total shareholder return ("TSR") over specified three -year performance periods compared to the TSR of a specified group of peer companies. The number of TSR-Based Performance Shares that will ultimately vest under both the 2014-2016 and 2015-2017 LTI Programs and result in the issuance of common shares ranges between 0% to 200% of the target number of underlying common shares (constituting approximately one-half of the maximum payout) and depends on the percentile ranking of our TSR compared to the group of peer companies. During the first quarter of 2015, a portion of the EVA-Based Performance shares granted under the 2012-2014 LTI Program vested (see "Summary of Activity" below). The vesting of performance shares resulting in the issuance and delivery of common shares, if any, under the 2013-2015, 2014-2016 and 2015-2017 LTI Programs will occur in 2016, 2017 and 2018, respectively. Non-Cash Compensation Expense. Compensation expense relating to all awards under the Equity Incentive Plan is included in Selling, general, administrative, research and development. Non-cash compensation expense by type of award under LTI Programs were as follows for each period presented (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Non-vested common shares and restricted stock units $ 1.1 $ 1.2 $ 2.2 $ 2.3 EVA-Based Performance Shares 0.3 0.5 0.7 1.0 TSR-Based Performance Shares 1.0 0.6 1.7 1.0 Total non-cash compensation expense $ 2.4 $ 2.3 $ 4.6 $ 4.3 The following table presents the allocation of the charges detailed above, by segment (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Fabricated Products $ 0.9 $ 1.1 $ 1.6 $ 2.1 All Other 1.5 1.2 3.0 2.2 Total non-cash compensation expense $ 2.4 $ 2.3 $ 4.6 $ 4.3 Unrecognized Gross Compensation Cost Data. The following table presents unrecognized gross compensation cost data by type of award as of June 30, 2015 : Unrecognized gross compensation costs (in millions of dollars) Expected period (in years) over which the remaining gross compensation costs will be recognized Non-vested common shares and restricted stock units $ 8.0 2.2 EVA-Based Performance Shares $ 0.9 0.7 TSR-Based Performance Shares $ 9.9 2.4 Summary of Activity. A summary of the activity with respect to non-vested common shares, restricted stock units, EVA-Based Performance Shares and TSR-Based Performance Shares for the six months ended June 30, 2015 was as follows: Non-Vested Common Shares Restricted Stock Units EVA-Based Performance Shares TSR-Based Performance Shares Shares Weighted-Average Grant-Date Fair Value per Share Units Weighted-Average Grant-Date Fair Value per Unit Shares Weighted-Average Grant-Date Fair Value per Share Shares Weighted-Average Outstanding at December 31, 2014 158,770 $ 59.88 5,357 $ 59.71 353,576 $ 50.35 150,223 $ 83.18 Granted 1 62,285 71.67 2,325 69.83 — — 150,424 95.68 Vested (57,849 ) 52.68 (2,161 ) 52.91 (48,648 ) 44.48 — — Forfeited 1 (540 ) 66.89 — — (432 ) 57.54 (404 ) 83.18 Canceled 2 — — — — (146,016 ) 44.48 — — Outstanding at June 30, 2015 162,666 $ 66.93 5,521 $ 66.64 158,480 $ 57.75 300,243 $ 89.44 ____________ 1 For EVA-Based Performance Shares and TSR-Based Performance Shares, the number of shares granted and forfeited are presented at their maximum payout. 2 For EVA-Based Performance Shares and TSR-Based Performance Shares, canceled represents the number of shares that did not vest due to EVA or TSR performance results falling below those required for maximum payout. Stock Options. We have fully-vested stock options that were granted in 2007. There were 16,645 fully-vested options outstanding as of June 30, 2015 and December 31, 2014 , in each case exercisable to purchase common shares at $80.01 per share and having a remaining contractual life of 1.75 and 2.25 years, respectively. The average grant date fair value of the options was $39.90 . No options were granted, exercised or forfeited during the six months ended June 30, 2015 . Vested Stock. From time to time, we issue 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. For each six month period ended June 30, 2015 and June 30, 2014 , we recorded $0.2 million 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 us 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. We cancel any such shares withheld on the applicable vesting dates or earlier dates when service requirements are satisfied, which correspond to the times at which income to the employee is recognized. When we withhold these common shares, we are required to remit to the appropriate taxing authorities the fair value of the shares withheld as of the vesting date. During the six months ended June 30, 2015 and June 30, 2014 , 34,969 and 33,006 common shares, respectively, were withheld and canceled for this purpose. The withholding of common shares by us could be deemed a purchase of the common shares. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments. We have a variety of financial commitments, including purchase agreements, forward foreign exchange and forward sales contracts, indebtedness (and related Warrants) and letters of credit (see Note 3 and Note 8 ). There were no material changes to our scheduled minimum rental commitments during the six months ended June 30, 2015 . During the six months ended June 30, 2015 , our contractual obligations for 2015 increased by $33.3 million , consisting of $26.2 million in raw material related purchase obligations and $7.1 million in firm commitments for equipment purchases. Additionally, our contractual obligations for 2016 increased by $6.9 million , consisting of $5.3 million and $1.6 million in firm commitments for equipment purchases and energy purchases, respectively. Environmental Contingencies. We are subject to a number of environmental laws and regulations, to potential fines or penalties assessed for alleged breaches of such law and regulations and to potential claims based upon such laws and regulations. We have established procedures for regularly evaluating environmental loss contingencies. Our environmental accruals represent our undiscounted estimate of costs reasonably expected to be incurred based on presently enacted laws and regulations, existing requirements, currently available facts, existing technology and our assessment of the likely remediation actions to be taken. In 2012, we 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 our Trentwood facility. We 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. We began implementation of certain approved sections of the work plan in 2013 and throughout 2014, completing a number of these sections in 2014. We continue to work with Washington State Ecology in developing the implementation plans for the remaining remediation activity as well as receiving final approval for the sections of the work plan completed to date. During 2013, at the request of the Ohio Environmental Protection Agency ("OEPA"), we initiated an investigational study of the Newark facility related to historical on-site waste disposal. During 2014, we completed a number of preliminary steps in the preparation of completing the final risk assessment and feasibility study, both of which are subject to review and approval by the OEPA. As this work continues and progresses to a risk assessment and feasibility study, we will establish and update the estimates for probable and estimable remediations, if any. The actual and final cost for remediation will not be fully determinable until a final feasibility study is submitted and accepted by the OEPA and work plans are prepared, which is expected to occur within the next 18 to 24 months . At June 30, 2015 , our environmental accrual of $19.5 million represented our estimate of the incremental remediation cost based on (i) proposed alternatives in the final feasibility study related to our Trentwood facility; (ii) currently available facts with respect to our Newark facility; and (iii) facts related to certain other locations owned or formally owned by us. In accordance with approved and proposed remediation action plans, we expect that the implementation and ongoing monitoring could occur over a period of 30 or more 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. We believe 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 $25.1 million over the remediation period. It is reasonably possible that our recorded estimate may change in the next 12 months. Other Contingencies. We are party to various lawsuits, claims, investigations and administrative proceedings that arise in connection with past and current operations. We evaluate such matters on a case-by-case basis, and our policy is to vigorously contest any such claims we believe are without merit. We accrue for a legal liability when it is both probable that a liability has been incurred and the amount of the loss is material and reasonably estimable. Quarterly, in addition to when changes in facts and circumstances require it, we review and adjust 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, we believe that we have sufficiently accrued for such matters and that the ultimate resolution of pending matters will not have a material impact on our consolidated financial position, operating results, or liquidity. |
Derivative Financial Instrument
Derivative Financial Instruments and Related Hedging Programs | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Related Hedging Programs | Derivative Financial Instruments and Related Hedging Programs Overview . In conducting our business, we enter into derivative transactions, including forward contracts and options, to limit our economic (i.e. cash) exposure resulting from (i) metal price risk related to our sale of fabricated aluminum products and the purchase of metal used as raw material for our fabrication operations; (ii) energy price risk relating to fluctuating prices of natural gas and electricity used in our production processes; and (iii) foreign currency requirements with respect to our foreign subsidiaries and cash commitments for equipment purchases denominated in foreign currency. Our derivative activities are overseen by a hedging committee ("Hedging Committee"), which is composed of our chief executive officer, chief financial officer, chief accounting officer, treasurer and vice president, commodity risk management and other officers and employees selected by the chief executive officer. The Hedging Committee meets regularly to review derivative positions and strategy and reports to our Board of Directors on the scope of its activities. Hedges of Operational Risks Designated Foreign Currency Cash Flow Hedges . We are exposed to foreign currency exchange risk related to firm price agreements for equipment purchases from foreign manufacturers. Such agreements require that we make payments in foreign currency to the vendor over time based on milestone achievements. We use foreign currency forward contracts in order to mitigate the exposure to currency exchange rate fluctuations related to these purchases. The timing and amounts of the forward contract settlements are designed to line up with the timing and amounts of scheduled payments to the foreign equipment manufacturers, and therefore we expect no hedge ineffectiveness. As of June 30, 2015 , we had open forward contracts designated as cash flow hedges to purchase euros with maturity dates between one and 18 months . The notional amounts of these foreign currency forward contracts totaled 8.1 million euros at June 30, 2015 with an average contract exchange rate of 1.14 . The effective portion of the changes in fair value on these instruments is recorded within Other comprehensive income (loss) and is reclassified into the Statements of Consolidated Income on the same line item and the same period in which the underlying equipment is depreciated. We had no such reclassifications into earnings during the quarter ended June 30, 2015 and anticipate no such reclassifications for the next 12 months. For the quarter and six months ended June 30, 2015 , we recorded an unrealized loss of $0.2 million on the effective portions of our designated foreign currency cash flow hedges. No ineffectiveness was incurred on these hedges during the quarter and six months ended June 30, 2015 . Non-Designated Hedges of Operational Risks . Our 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 through metal price fluctuations to our customers. In certain instances, we enter into firm-price arrangements with our customers for stipulated volumes to be delivered in the future. Additionally, for some of our higher value added products sold on a spot basis, the pass through of metal price movements can sometimes lag by as much as several months, with a favorable impact to us when metal prices decline and an adverse impact to us when metal prices increase. Because we generally purchase primary and secondary aluminum on a floating price basis, the volume that we have committed to sell to our customers under a firm-price arrangement and the lag in passing through metal price movements to customers on some of our higher value added products sold on a spot basis create metal price risk for us. We use third-party hedging instruments to limit exposure to metal price risk related to firm-price customer sales contracts and the metal pass through lag on some of our products. See Note 9 for additional information regarding our material derivative positions relating to hedges of operational risk, and their respective fair values. A majority of our derivative contracts relating to hedges of operational risks contain liquidity based thresholds that could require us to provide additional collateral in the event our liquidity were to fall below specified levels. To minimize the exposure to additional collateral requirements related to our liability hedge positions, we allocate hedging transactions among our counterparties, use options as part of our hedging activities, or both. The aggregate fair value of our derivative instruments that were in a net liability position was $15.7 million and $11.4 million at June 30, 2015 and December 31, 2014 , respectively. We regularly review the creditworthiness of our derivative counterparties and do not expect to incur significant loss from the failure of any counterparties to perform under any agreements. During the six months ended June 30, 2015 and June 30, 2014 , total fabricated products shipments that contained firm-price terms were (in millions of pounds) 91.5 and 68.5 , respectively. At June 30, 2015 , the Fabricated Products segment held contracts for the delivery of fabricated aluminum products that had the effect of creating price risk on anticipated purchases of aluminum for the remainder of 2015 and 2016 , totaling approximately (in millions of pounds) 118.3 and 16.7 , respectively. Hedges Relating to the Convertible Notes As described in Note 3 , we issued $175.0 million principal amount of Convertible Notes due on April 1, 2015, which could only be settled in cash. The conversion feature of the Convertible Notes was 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, we purchased Option Assets that settled on April 1, 2015. The Option Assets were accounted for as derivative instruments. The cash we received on April 1, 2015 from the settlement of the Option Assets equaled and offset the cash that we paid to the holders of any converted Convertible Notes in excess of the principal amount thereof and interest payable thereon on April 1, 2015. See Note 9 for additional information regarding the fair values of the Bifurcated Conversion Feature and the Option Assets. Realized and Unrealized Gains and Losses. Realized and unrealized (losses) gains associated with all derivative contracts consisted of the following, for each period presented (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Included in Other Comprehensive Income (Loss): Unrealized (losses): Foreign Currency $ (0.2 ) $ — $ (0.2 ) $ — Included in Statements of Consolidated Income (Loss): Realized (losses) gains 1 : Aluminum (7.1 ) 1.3 (9.8 ) 2.1 Natural Gas (1.3 ) 0.5 (2.6 ) 1.2 Electricity (0.4 ) (0.5 ) (1.1 ) — Total realized (losses) gains $ (8.8 ) $ 1.3 $ (13.5 ) $ 3.3 Unrealized (losses) gains 2 : Hedges of operational risk: Aluminum $ (4.3 ) $ 0.6 $ (8.5 ) $ 2.3 Natural Gas 1.5 (0.2 ) 0.8 0.6 Electricity 1.3 1.2 1.7 0.7 Foreign Currency — (0.1 ) — (0.1 ) Total hedges of operational risk (1.5 ) 1.5 (6.0 ) 3.5 Option Assets relating to the Convertible Notes 3 — 2.5 10.2 6.9 Bifurcated Conversion Feature of the Convertible Notes 3 — (2.0 ) (10.2 ) (5.5 ) Total unrealized (losses) gains $ (1.5 ) $ 2.0 $ (6.0 ) $ 4.9 ______________________ 1 Realized (losses) gains on hedges of operational risk are recorded within Cost of products sold, excluding depreciation, amortization and other items. 2 Unrealized (losses) gains on hedges of operational risk are recorded within Unrealized losses (gains) on derivative instruments. 3 Unrealized (losses) gains on financial derivatives are recorded within Other income, net. The following table summarizes our material derivative positions at June 30, 2015 : Aluminum Maturity Period (month/year) Notional Amount of contracts (mmlbs) Fixed price purchase contracts 7/15 through 12/16 117.1 Fixed price sales contracts 1/16 through 5/16 0.9 Midwest premium swap contracts 1 7/15 through 12/16 93.2 Natural Gas 2 Maturity Period (month/year) Notional Amount of contracts (mmbtu) Fixed price purchase contracts 7/15 through 12/17 6,160,000 Electricity 3 Maturity Period (month/year) Notional Amount of contracts (Mwh) Fixed price purchase contracts 7/15 through 12/15 88,340 Euro Maturity Period (month/year) Notional Amount of contracts (euro) Fixed price purchase contracts 7/15 through 12/16 8,135,000 ______________________ 1 Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on our purchases of primary aluminum. 2 As of June 30, 2015 , we had Henry Hub NYMEX-based hedge positions in place to cover exposure to fluctuations in prices for approximately 79% , 75% and 34% of the expected natural gas purchases for the remainder of 2015 , 2016 and 2017 , respectively. 3 As of June 30, 2015 , we had Mid-C International Commodity Exchange-based hedge positions in place to cover exposure to fluctuations in prices for approximately 54% , 54% and 36% of the expected electricity purchases for the remainder of 2015 , 2016 and 2017 , respectively. We enter into derivative contracts with counterparties, some of which are subject to enforceable master netting arrangements and some of which are not. We reflect the fair value of our derivative contracts on a gross basis on the Consolidated Balance Sheets (see Note 2 ). The following tables present offsetting information regarding our derivatives by type of counterparty as of June 30, 2015 (in millions of dollars): 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) $ 0.2 $ — $ 0.2 $ 0.2 $ — $ — Counterparty (with partial netting agreements) 0.1 — 0.1 0.1 — — Total $ 0.3 $ — $ 0.3 $ 0.3 $ — $ — 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) $ (9.5 ) $ — $ (9.5 ) $ (0.2 ) $ — $ (9.3 ) Counterparty (without netting agreements) (1.6 ) — (1.6 ) — — (1.6 ) Counterparty (with partial netting agreements) (6.5 ) — (6.5 ) (0.1 ) — (6.4 ) Total $ (17.6 ) $ — $ (17.6 ) $ (0.3 ) $ — $ (17.3 ) The following tables present offsetting information regarding our derivatives by type of counterparty as of December 31, 2014 (in millions of dollars): 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) $ 0.9 $ — $ 0.9 $ 0.8 $ — $ 0.1 Counterparty (without netting agreements) 1 84.8 — 84.8 — — 84.8 Total $ 85.7 $ — $ 85.7 $ 0.8 $ — $ 84.9 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) $ (8.0 ) $ — $ (8.0 ) $ (0.8 ) $ — $ (7.2 ) Counterparty (without netting agreements) 1 (85.0 ) — (85.0 ) — — (85.0 ) Counterparty (with partial netting agreements) (3.8 ) — (3.8 ) — — (3.8 ) Total $ (96.8 ) $ — $ (96.8 ) $ (0.8 ) $ — $ (96.0 ) _________________ 1 Such amounts include the fair value of the Bifurcated Conversion Feature and Option Assets at December 31, 2014 (see Note 9 ). |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurements Overview We apply the fair value hierarchy established by GAAP for the recognition and measurement of certain financial 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, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible, and consider counterparty risk in our assessment of fair value. The fair values of financial assets and liabilities are evaluated and measured on a recurring basis. As part of that evaluation process, we review the underlying inputs that are significant to the fair value measurement of financial instruments to determine if a transfer among hierarchy levels is appropriate. We historically have not had significant transfers into or out of each hierarchy level. Financial assets and liabilities that we measure at fair value as required by GAAP include: (i) our derivative instruments; (ii) the plan assets of the VEBAs and our Canadian defined benefit pension plan measured annually at December 31; and (iii) available for sale securities, consisting of debt investment securities and investments related to our deferred compensation plan (see Note 5 ). We record certain other financial assets and liabilities at carrying value (see the tables below for the fair value disclosure of those assets and liabilities). The majority of our non-financial assets and liabilities, which include goodwill, intangible assets, inventories and property, plant and equipment, are not required to be measured 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. Fair Values of Financial Assets and Liabilities Derivative Assets and Liabilities. Our derivative contracts are valued at fair value using significant observable and unobservable inputs. Commodity, Energy and Foreign Currency Derivatives - 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. We, however, have some derivative contracts that do not have observable market quotes. For these financial instruments, management uses significant unobservable 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 Option Assets - At December 31, 2014 , the fair value of the Bifurcated Conversion Feature was classified as Level 2 in the fair value hierarchy and measured as the difference in the estimated fair value of the Convertible Notes (based on the trading price of the Convertible Notes) and the estimated fair value of the Convertible Notes without the cash conversion feature (present value of the series of the remaining fixed income cash flows under the Convertible Notes, with a maturity of April 1, 2015). Due to the short duration before maturity, management concluded that the fair value of the Option Assets should equal the fair value of the Bifurcated Conversion Feature as of December 31, 2014 . As of December 31, 2014 , the Bifurcated Conversion Feature and Option Assets were included in the Consolidated Balance Sheet as a portion of Other accrued liabilities and Prepaid expenses and other current assets, respectively. As of June 30, 2015 , all balances related to the Convertible Notes, Bifurcated Conversion Feature and Option Assets had been settled. The aggregate fair value of our derivatives, recorded on the Consolidated Balance Sheets at June 30, 2015 and December 31, 2014 , was a net liability of $17.3 million and $11.1 million , respectively. The increase in net liability position during the quarter ended June 30, 2015 was due primarily to changes in the underlying commodity and energy prices, as well as settlements of asset positions during such period. Changes in the fair value of our derivative contracts relating to operational hedging activities are reflected in Operating income (loss) (see Note 8 ). VEBA and Canadian Pension Plan Assets. The fair value of the plan assets of the VEBAs and our Canadian pension plan is measured annually on December 31 and is reflected in our Consolidated Balance Sheets at fair value. In determining the fair value of the plan assets at each annual period end, we utilize primarily the results of valuations supplied by the investment advisors responsible for managing the assets of each plan, which we independently review for reasonableness. With respect to the VEBAs, the investment advisors providing the valuations are engaged by the VEBA trustees. As previously discussed, in January 2015, members of the USW at our Newark and Trentwood facilities ratified a new five-year CBA, which did not did not extend our obligation to make annual variable contributions to the Union VEBA for any period after September 2017. As a result of the expiration of our obligation to make annual variable contributions to the Union VEBA, we removed the assets of the Union VEBA from our Consolidated Balance Sheets during the quarter ended March 31, 2015 based on the valuation at December 31, 2014 (See Note 5 ). Available for Sale Securities. We hold debt investment securities. The fair value of the debt investment securities, which consist of commercial paper and corporate bonds, is determined based on valuation models that use observable market data. At June 30, 2015 , the remaining maturity period with respect to short-term investments ranged from approximately eight to 10 months . We review our debt investment portfolio for other-than-temporary impairment at least quarterly or when there are changes in credit risk or other potential valuation concerns exists. At June 30, 2015 and June 30, 2014 , the total unrealized loss, net of tax, included in accumulated other comprehensive income was immaterial and was not other-than-temporarily impaired. We believe that it is probable that the principal and interest will be collected in accordance with the contractual terms, and that the unrealized losses on these securities were due to changes in normal market fluctuations, and were not due to increased credit risk or other valuation concerns. In addition to debt investment securities, we also hold assets in various investment funds at certain registered investment companies in connection with our deferred compensation program (see Note 5 ). 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. We believe that the fair value of our 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 values of the Convertible Notes at December 31, 2014 and the Senior Notes at both June 30, 2015 and December 31, 2014 are based on their trading prices at each respective period end date and are considered Level 1 inputs in the fair value hierarchy (see Note 3 for the carrying values of the Convertible Notes and the Senior Notes). The Convertible Notes were settled on April 1, 2015. The following table presents our financial instruments, classified under the appropriate level of the fair value hierarchy, as of the period presented (in millions of dollars): June 30, 2015 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Derivative Instruments (Non-Designated Hedges): Aluminum - Fixed price sales contracts $ — $ 0.1 $ — $ 0.1 Electricity - Fixed price purchase contracts — 0.2 — 0.2 All Other Financial Assets: Cash and cash equivalents 42.3 12.0 — 54.3 Short-term investments — 30.0 — 30.0 Deferred compensation plan asset — 7.6 — 7.6 Total assets $ 42.3 $ 49.9 $ — $ 92.2 FINANCIAL LIABILITIES: Derivative Instruments (Non-Designated Hedges): Aluminum - Fixed price purchase contracts $ — $ (7.5 ) $ — $ (7.5 ) Midwest premium swap contracts — — (4.3 ) (4.3 ) Natural Gas - Fixed price purchase contracts — (5.4 ) — (5.4 ) Electricity - Fixed price purchase contracts — (0.2 ) — (0.2 ) Derivative Instruments (Designated Hedges): Foreign Currency - Euro forward purchase contracts — (0.2 ) — (0.2 ) All Other Financial Liabilities: Senior Notes (243.7 ) — — (243.7 ) Total liabilities $ (243.7 ) $ (13.3 ) $ (4.3 ) $ (261.3 ) The following table presents our financial instruments, classified under the appropriate level of the fair value hierarchy, as of the period presented (in millions of dollars): December 31, 2014 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Derivative Instruments (Non-Designated Hedges): Aluminum - Midwest premium swap contracts $ — $ — $ 1.0 $ 1.0 Hedges Relating to the Convertible Notes - Option Assets — 84.7 — 84.7 All Other Financial Assets: Cash and cash equivalents 29.5 148.2 — 177.7 Short-term investments — 114.0 — 114.0 Deferred compensation plan asset — 7.3 — 7.3 Total assets $ 29.5 $ 354.2 $ 1.0 $ 384.7 FINANCIAL LIABILITIES: Derivative Instruments (Non-Designated Hedges): Aluminum - Fixed price purchase contracts $ — $ (4.2 ) $ — $ (4.2 ) Natural Gas - Fixed price purchase contracts — (6.2 ) — (6.2 ) Electricity - Fixed price purchase contracts — (1.7 ) — (1.7 ) Hedges Relating to the Convertible Notes - Bifurcated Conversion Feature — (84.7 ) — (84.7 ) All Other Financial Liabilities: Senior Notes (244.5 ) — — (244.5 ) Convertible Notes, including Bifurcated Conversion Feature (263.3 ) — — (263.3 ) Total liabilities $ (507.8 ) $ (96.8 ) $ — $ (604.6 ) Financial instruments classified as Level 3 in the fair value hierarchy represent Midwest premium swap contracts for which at least one significant unobservable input in the valuation model is a management estimate. This is necessary due to the lack of an exchange traded product with observable market pricing data. Fair value was determined using a forward curve based on the average pricing quotes from our trading counterparties and applying a discount factor based on the risk free interest rate. The following table presents quantitative information for Level 3 Midwest premium derivative contracts: Fair Value at June 30, 2015 (in millions of dollars) Valuation technique Unobservable input Range ($ in unit price) Liabilities: Midwest premium contracts $ (4.3 ) Discounted fair value Forward price curve $0.082 per metric ton in Jul 2015 to $0.070 per metric ton in Dec 2016 The following table presents a reconciliation of activity for the Midwest premium derivative contracts on a net basis (in millions of dollars): Level 3 Balance at December 31, 2014 $ 1.0 Total realized/unrealized (losses) included in: Cost of goods sold excluding depreciation and amortization and other items and Unrealized losses (gains) on derivative instruments (3.9 ) Transactions involving Level 3 derivative contracts: Purchases (4.9 ) Sales — Issuances — Settlements 3.5 Transactions involving Level 3 derivatives — net (1.4 ) Transfers in and (or) out of Level 3 valuation hierarchy — Balance at June 30, 2015 $ (4.3 ) Total (losses) included in Unrealized losses (gains) on derivative instruments, attributable to the change in unrealized gains/losses relating to derivative contracts held at June 30, 2015: $ (4.4 ) Fair Values of Non-Financial Assets and Liabilities We concluded that none of our 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 for the six months ended June 30, 2015 and June 30, 2014 . |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Per Share Basic and diluted net income (loss) per share were calculated as follows, for each period presented (in millions of dollars, except share and per share amounts): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ 20.2 $ 24.5 $ (272.0 ) $ 40.3 Denominator - Weighted-average common shares outstanding (in thousands): Basic 1 17,006 17,841 17,233 17,889 Add: dilutive effect of non-vested common shares, restricted stock units and performance shares 247 112 — 133 Add: dilutive effect of warrants 939 505 — 490 Diluted 2 18,192 18,458 17,233 18,512 Net income (loss) per common share, Basic: $ 1.19 $ 1.38 $ (15.78 ) $ 2.25 Net income (loss) per common share, Diluted: $ 1.11 $ 1.33 $ (15.78 ) $ 2.18 ______________________ 1 The basic weighted-average number of common shares outstanding during the periods presented excludes non-vested common shares, restricted stock units and performance shares. 2 The diluted weighted-average number of common shares outstanding during the periods presented was calculated using the treasury method. Warrants relating to approximately 3.7 million and 3.6 million notional common shares were outstanding at June 30, 2015 (at an exercise price of approximately $60.44 per share) and June 30, 2014 (at an exercise price of approximately $60.89 per share), respectively. The Warrants are net-share-settled, such that, when settled, only the value represented by the market price per share of our common stock in excess of the exercise price of the Warrants will be paid to the Warrant holders in shares of our common stock. The value of the Warrants on any settlement date will equal the greater of zero or (a) the number of notional shares settling on that date multiplied by (b) the difference of (i) the market price per share of our common stock on that settlement date less (ii) the exercise price of the Warrants. To determine the number of common shares issued when Warrants are settled, the value of the Warrants on that settlement date will be divided by the market price per share of our common stock on that settlement date. As of July 1, 2015, the Warrants began settling ratably over the subsequent 120 trading day period. If the Warrants had all been settled on June 30, 2015 or June 30, 2014 , the number of our common shares issued using our average stock price for the quarter would have been 939,221 or 505,151 , respectively. See Note 16 for additional information relating to the settlement of our Warrants beginning on July 1, 2015. The following securities were excluded from the weighted-average diluted shares computation for the quarters ended June 30, 2015 and June 30, 2014 as their inclusion would have been anti-dilutive (in thousands of shares): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Options to purchase common shares — 21 17 21 Non-vested common shares, restricted stock units and performance shares — 43 243 28 Warrants — — 799 — Total excluded — 64 1,059 49 During the six months ended June 30, 2015 and June 30, 2014 , we paid a total of approximately $14.0 million ( $0.80 per common share) and $12.8 million ( $0.70 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 granted prior to 2014 with respect to the target number of underlying common shares (constituting approximately one-half of the maximum payout). From time to time, we repurchase shares pursuant to a stock repurchase program authorized by our Board of Directors. Repurchase transactions will occur at such times and prices as management deems appropriate and will be funded with our 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 our Board of Directors at any time. During the six months ended June 30, 2015 and June 30, 2014 , we repurchased 552,454 shares of common stock (at a weighted-average price of $75.21 per share) and 346,781 shares of common stock (at a weighted-average price of $69.25 per share), respectively, pursuant to the stock repurchase program. The total cost of $41.5 million and $24.0 million was recorded as Treasury stock at June 30, 2015 and June 30, 2014 , respectively. At June 30, 2015 , $131.2 million were available for the repurchase of our common shares under the stock repurchase program. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment and Geographical Area Information | Segment and Geographical Area Information Our primary line of business is the production of semi-fabricated specialty aluminum products for the following end market applications: aerospace and high strength products ("Aero/HS products"); extrusions for automotive applications ("Automotive Extrusions"); general engineering products ("GE products"); and other industrial products ("Other products"). We operate 11 focused production facilities in the United States and one in Canada. Consistent with the manner in which our chief operating decision maker reviews and evaluates our business, the Fabricated Products business is treated as a single operating segment. In addition to the Fabricated Products segment, we have a business unit, All Other, which provides general and administrative support for our operations. For purposes of segment reporting under GAAP, we treat the Fabricated Products segment as a reportable segment. 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 net operating charges. The following tables provide financial information by reporting segment and business unit for each period or as of each period-end, as applicable (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net sales: Fabricated Products $ 367.2 $ 344.1 $ 738.9 $ 679.2 Segment operating (loss) income: Fabricated Products 1 $ 50.6 $ 50.2 $ 95.5 $ 85.6 All Other 2 (13.6 ) (3.8 ) (517.1 ) (7.1 ) Total operating (loss) income $ 37.0 $ 46.4 $ (421.6 ) $ 78.5 Interest expense (5.2 ) (9.2 ) (15.0 ) (18.0 ) Other income, net 0.4 1.8 0.8 3.7 (Loss) income before income taxes $ 32.2 $ 39.0 $ (435.8 ) $ 64.2 Depreciation and amortization: Fabricated Products $ 8.0 $ 7.7 $ 15.9 $ 14.9 All Other 0.1 — 0.2 0.2 Total depreciation and amortization $ 8.1 $ 7.7 $ 16.1 $ 15.1 Capital expenditures: Fabricated Products $ 11.5 $ 14.2 $ 22.7 $ 29.5 All Other 0.1 0.5 0.2 0.6 Total capital expenditures $ 11.6 $ 14.7 $ 22.9 $ 30.1 _____________________ 1 Fabricated Products segment operating income included non-cash mark-to-market (losses) gains on primary aluminum, natural gas, electricity and foreign currency hedging activities totaled $(1.5) million and $1.5 million for the quarters ended June 30, 2015 and June 30, 2014 , respectively. Non-cash mark-to-market (losses) gains on primary aluminum, natural gas, electricity and foreign currency hedging activities totaled $(6.0) million and $3.5 million for the six months ended June 30, 2015 and June 30, 2014 , respectively. For further discussion regarding mark-to-market matters, see Note 8 . 2 Operating loss in All Other included Net periodic postretirement benefit cost (income) of $0.6 million and $(6.1) million for the quarters ended June 30, 2015 and June 30, 2014 , respectively, and $1.2 million and $(11.7) million for the six months ended June 30, 2015 and June 30, 2014 , respectively. Additionally, operating loss in All Other included Loss on removal of Union VEBA net assets of $1.6 million and $493.8 million during the quarter and six months ended June 30, 2015 , respectively. See Note 5 for further details. June 30, 2015 December 31, 2014 Assets: Fabricated Products $ 900.1 $ 878.9 All Other 1 351.2 864.8 Total assets $ 1,251.3 $ 1,743.7 _____________________ 1 Assets in All Other represent primarily all of our cash and cash equivalents, short-term investments, financial derivative assets, net assets of VEBAs (see Note 5 and Note 9 ) and net deferred income tax assets. Net sales by product categories based on end market applications for the Fabricated Products segment were as follows (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net sales: Aero/HS products $ 181.1 $ 173.0 $ 361.4 $ 336.6 Automotive Extrusions 53.7 44.7 103.8 85.5 GE products 112.0 107.3 231.1 219.5 Other products 20.4 19.1 42.6 37.6 Total net sales $ 367.2 $ 344.1 $ 738.9 $ 679.2 Geographic information for income taxes paid were as follows (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Income taxes paid: Fabricated Products — United States $ 0.2 $ 0.1 $ 0.3 $ 0.2 Canada 0.4 0.3 1.3 0.9 Total income taxes paid $ 0.6 $ 0.4 $ 1.6 $ 1.1 The aggregate foreign currency transaction gains (losses) included in determining net income were immaterial for the quarter and six months ended June 30, 2015 and June 30, 2014 . For the quarter ended June 30, 2015 , one customer represented 25% and another represented 10% of Fabricated Products Net sales. For the quarter ended June 30, 2014 , one customer represented 27% and no other individual customer accounted for more than 10% of Fabricated Products Net sales. For the six months ended June 30, 2015 , one customer represented 26% and another represented 10% of Fabricated Products Net sales. For the six months ended June 30, 2014 , one customer represented 27% and no other individual customer accounted for more than 10% of Fabricated Products Net sales. At June 30, 2015 , one customer represented 20% and no other individual customers accounted for 10% or more of the trade receivables balance. Two individual customers accounted 10% and 12% of the trade receivables balance at December 31, 2014 . Information for contractual delivery of our primary aluminum supply from our major suppliers were as follows: Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Percentage of Total Annual Primary Aluminum Supply (lbs): Supply from the Company's top five major suppliers 86 % 83 % 87 % 84 % Supply from the Company's largest supplier 27 % 29 % 28 % 30 % Supply from the Company's second and third largest suppliers 36 % 30 % 35 % 32 % |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Six Months Ended June 30, 2015 2014 (In millions of dollars) Interest paid $ 13.3 $ 12.1 Non-cash investing and financing activities: Stock repurchases not yet settled (accrued in accounts payable) $ 0.1 $ 0.3 Unpaid purchases of property and equipment $ 3.8 $ 1.1 |
Other Income (Expense), Net
Other Income (Expense), Net | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income, Net Other income, net consisted of the following, for each period presented (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Interest income $ — $ 0.2 $ 0.2 $ 0.5 Unrealized gains on financial derivatives 1 — 0.5 — 1.4 Realized gains on investments 0.2 0.2 0.5 0.4 All other, net 0.2 0.9 0.1 1.4 Other income, net $ 0.4 $ 1.8 $ 0.8 $ 3.7 ______________________ 1 See " Hedges Relating to the Convertible Notes " in Note 8 for discussion of such instruments. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive Income Disclosure | Other Comprehensive Income The following table presents the tax effect allocated to each component of other comprehensive income (loss) for each period presented (in millions of dollars): Before-Tax Income Tax Net-of-Tax Amount (Expense) Benefit 4 Amount Quarter Ended June 30, 2015 VEBAs: Reclassification adjustments: Amortization of net actuarial loss 1 $ 0.2 $ (0.1 ) $ 0.1 Amortization of prior service cost 1 0.8 (0.3 ) 0.5 Other comprehensive income relating to VEBAs 1.0 (0.4 ) 0.6 Available for sale securities: Unrealized loss on available for sale securities (0.3 ) 0.1 (0.2 ) Reclassification adjustments: Reclassification of unrealized loss upon sale of available for sale securities 3 0.1 — 0.1 Other comprehensive loss relating to available for sale securities (0.2 ) 0.1 (0.1 ) Unrealized loss on foreign currency cash flow hedges (0.2 ) 0.1 (0.1 ) Other comprehensive income $ 0.6 $ (0.2 ) $ 0.4 Quarter Ended June 30, 2014 VEBAs: Reclassification adjustments: Amortization of net actuarial gain 2 $ (0.6 ) $ 0.2 $ (0.4 ) Amortization of prior service cost 2 2.6 (1.0 ) 1.6 Other comprehensive income relating to VEBAs 2.0 (0.8 ) 1.2 Available for sale securities: Unrealized gain on available for sale securities 0.2 (0.1 ) 0.1 Reclassification adjustments: Reclassification of unrealized gain upon sale of available for sale securities 3 (0.1 ) 0.1 — Other comprehensive income relating to available for sale securities 0.1 — 0.1 Foreign currency translation adjustment (0.1 ) — (0.1 ) Cumulative tax rate adjustment — 0.9 0.9 Other comprehensive income $ 2.0 $ 0.1 $ 2.1 Before-Tax Income Tax Net-of-Tax Amount (Expense) Benefit 4 Amount Six Months Ended June 30, 2015 VEBAs: Reclassification adjustments: Amortization of net actuarial loss 1 $ 0.5 $ (0.2 ) $ 0.3 Amortization of prior service cost 1 1.5 (0.6 ) 0.9 Removal of obligation relating to Union VEBA 106.6 (40.4 ) 66.2 Other comprehensive income relating to VEBAs 108.6 (41.2 ) 67.4 Available for sale securities: Unrealized loss on available for sale securities (0.3 ) 0.1 (0.2 ) Reclassification adjustments: Reclassification of unrealized loss upon sale of available for sale securities 3 0.2 (0.1 ) 0.1 Other comprehensive loss relating to available for sale securities (0.1 ) — (0.1 ) Unrealized loss on foreign currency cash flow hedges (0.2 ) 0.1 (0.1 ) Foreign currency translation adjustment 0.1 — 0.1 Other comprehensive income $ 108.4 $ (41.1 ) $ 67.3 Six Months Ended June 30, 2014 VEBAs: Reclassification adjustments: Amortization of net actuarial (gain) 2 $ (0.9 ) $ 0.3 $ (0.6 ) Amortization of prior service cost 2 5.4 (2.0 ) 3.4 Other comprehensive income relating to VEBAs 4.5 (1.7 ) 2.8 Available for sale securities: Unrealized gain on available for sale securities 0.3 (0.1 ) 0.2 Reclassification adjustments: Reclassification of unrealized gain upon sale of available for sale securities 3 (0.2 ) 0.1 (0.1 ) Other comprehensive income relating to available for sale securities 0.1 — 0.1 Foreign currency translation adjustment 0.1 — 0.1 Other comprehensive income $ 4.7 $ (1.7 ) $ 3.0 ________________ 1 Amounts reclassified out of Accumulated other comprehensive loss relating to VEBA adjustments were included as a component of Net periodic postretirement benefit loss (income) relating to the Salaried VEBA. 2 Amounts reclassified out of Accumulated other comprehensive loss relating to VEBA adjustments were included as a component of Net periodic postretirement benefit loss (income) relating to both VEBAs. 3 Amounts reclassified out of Accumulated other comprehensive loss relating to sales of available for sale securities were included as a component of Other income, net. We use the specific identification method to determine the amount reclassified out of Accumulated other comprehensive loss. 4 Income tax amounts reclassified out of Accumulated other comprehensive loss relating to VEBA adjustments and sales of available for sale securities were included as a component of Income tax provision. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Statements (Notes) | 6 Months Ended |
Jun. 30, 2015 | |
Guarantor and Non-Guarantor Financial Statement [Abstract] | |
Guarantor and Non-Guarantor Financial Statements | Condensed Guarantor and Non-Guarantor Financial Information We issued $225.0 million aggregate principal amount of our Senior Notes pursuant to an indenture dated May 23, 2012 ("Indenture"), among Kaiser Aluminum Corporation ("Parent"), the subsidiary guarantors party thereto ("Guarantor Subsidiaries") and Wells Fargo Bank, National Association, as trustee ("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 customary releases in the following situations: (i) the sale of the Guarantor Subsidiary or all of its assets; (ii) the declaration of a Guarantor Subsidiary as an unrestricted subsidiary under the Indenture; (iii) the termination or release of the Guarantor Subsidiary’s guarantee of certain other indebtedness; or (iv) our exercise of legal defeasance or covenant defeasance or the discharge of our obligations under the Indenture. The following condensed consolidating financial information as of June 30, 2015 and December 31, 2014 , and for the quarter and six months ended June 30, 2015 and June 30, 2014 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 Parent, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries; and (iii) the resulting totals, reflecting our information 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 our 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 (In millions of dollars) June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 49.8 $ 4.5 $ — $ 54.3 Short-term investments — 30.0 — — 30.0 Receivables: Trade receivables — net — 134.7 3.9 — 138.6 Intercompany receivables 29.2 78.7 1.8 (109.7 ) — Other — 2.6 3.3 — 5.9 Inventories — 212.8 6.1 (1.6 ) 217.3 Prepaid expenses and other current assets 0.2 99.8 0.4 — 100.4 Total current assets 29.4 608.4 20.0 (111.3 ) 546.5 Investments in and advances to subsidiaries 1,026.8 33.6 — (1,060.4 ) — Property, plant and equipment — net — 439.5 25.0 — 464.5 Long-term intercompany receivables — — 10.2 (10.2 ) — Deferred tax assets — net — 141.6 — 7.1 148.7 Intangible assets — net — 31.3 — — 31.3 Goodwill — 37.2 — — 37.2 Other assets 4.0 19.0 0.1 — 23.1 Total $ 1,060.2 $ 1,310.6 $ 55.3 $ (1,174.8 ) $ 1,251.3 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 0.6 $ 67.5 $ 9.3 $ — $ 77.4 Intercompany payable 74.3 39.5 3.7 (117.5 ) — Accrued salaries, wages and related expenses — 31.5 2.9 — 34.4 Other accrued liabilities 1.5 50.1 — — 51.6 Short-term capital lease — 0.1 — — 0.1 Total current liabilities 76.4 188.7 15.9 (117.5 ) 163.5 Net liabilities of Salaried VEBA — 16.4 — — 16.4 Deferred tax liabilities — — 0.8 — 0.8 Long-term intercompany payable — 10.2 — (10.2 ) — Long-term liabilities — 80.9 5.9 — 86.8 Long-term debt 225.0 — — — 225.0 Total liabilities 301.4 296.2 22.6 (127.7 ) 492.5 Total stockholders’ equity 758.8 1,014.4 32.7 (1,047.1 ) 758.8 Total $ 1,060.2 $ 1,310.6 $ 55.3 $ (1,174.8 ) $ 1,251.3 CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) December 31, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 175.3 $ 2.4 $ — $ 177.7 Short-term investments — 114.0 — — 114.0 Receivables: Trade receivables — net — 126.1 3.2 — 129.3 Intercompany receivables 204.2 4.0 0.9 (209.1 ) — Other — 5.6 5.3 — 10.9 Inventories — 208.0 7.6 (0.9 ) 214.7 Prepaid expenses and other current assets 85.1 93.1 0.4 — 178.6 Total current assets 289.3 726.1 19.8 (210.0 ) 825.2 Investments in and advances to subsidiaries 1,209.2 32.5 — (1,241.7 ) — Property, plant and equipment — net — 437.4 17.5 — 454.9 Long-term intercompany receivables — — 15.9 (15.9 ) — Net assets of Union VEBA — 340.1 — — 340.1 Deferred tax assets — net — 23.8 — 7.1 30.9 Intangible assets — net — 32.1 — — 32.1 Goodwill — 37.2 — — 37.2 Other assets 4.4 18.8 0.1 — 23.3 Total $ 1,502.9 $ 1,648.0 $ 53.3 $ (1,460.5 ) $ 1,743.7 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1.3 $ 73.8 $ 6.3 $ — $ 81.4 Intercompany payable — 221.3 3.3 (224.6 ) — Accrued salaries, wages and related expenses — 36.5 3.1 — 39.6 Other accrued liabilities 88.2 43.8 0.8 — 132.8 Current portion of long-term debt 172.5 — — — 172.5 Short-term capital lease — 0.1 — — 0.1 Total current liabilities 262.0 375.5 13.5 (224.6 ) 426.4 Net liabilities of Salaried VEBA — 17.2 — — 17.2 Deferred tax liabilities — — 0.9 — 0.9 Long-term intercompany payable — 15.9 — (15.9 ) — Long-term liabilities — 50.3 8.0 — 58.3 Long-term debt 225.0 — — — 225.0 Total liabilities 487.0 458.9 22.4 (240.5 ) 727.8 Total stockholders’ equity 1,015.9 1,189.1 30.9 (1,220.0 ) 1,015.9 Total $ 1,502.9 $ 1,648.0 $ 53.3 $ (1,460.5 ) $ 1,743.7 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Quarter Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 358.3 $ 33.5 $ (24.6 ) $ 367.2 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 289.4 28.9 (23.5 ) 294.8 Unrealized loss on derivative instruments — 1.5 — — 1.5 Depreciation and amortization — 7.8 0.3 — 8.1 Selling, general, administrative, research and development: Selling, general, administrative, research and development 1.4 19.5 3.2 (0.5 ) 23.6 Net periodic postretirement benefit cost relating to Salaried VEBA — 0.6 — — 0.6 Loss on removal of Union VEBA net assets — 1.6 — — 1.6 Total selling, general, administrative, research and development 1.4 21.7 3.2 (0.5 ) 25.8 Total costs and expenses 1.4 320.4 32.4 (24.0 ) 330.2 Operating (loss) income (1.4 ) 37.9 1.1 (0.6 ) 37.0 Other (expense) income: Interest (expense) (4.9 ) (0.3 ) — — (5.2 ) Other income, net — 0.3 0.1 — 0.4 (Loss) income before income taxes (6.3 ) 37.9 1.2 (0.6 ) 32.2 Income tax (provision) benefit — (15.8 ) 1.4 2.4 (12.0 ) Earnings in equity of subsidiaries 26.5 2.1 — (28.6 ) — Net income $ 20.2 $ 24.2 $ 2.6 $ (26.8 ) $ 20.2 Comprehensive income $ 20.6 $ 24.6 $ 2.6 $ (27.2 ) $ 20.6 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME (In millions of dollars) Six Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 721.7 $ 68.2 $ (51.0 ) $ 738.9 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 585.8 60.5 (49.2 ) 597.1 Unrealized gains on derivative instruments — 6.0 — — 6.0 Depreciation and amortization — 15.5 0.6 — 16.1 Selling, general, administrative, research and development: Selling, general, administrative, research and development 2.4 40.2 4.8 (1.1 ) 46.3 Net periodic postretirement benefit cost relating to VEBAs — 1.2 — — 1.2 Loss on removal of Union VEBA net assets — 493.8 — — 493.8 Total selling, general, administrative, research and development 2.4 535.2 4.8 (1.1 ) 541.3 Total costs and expenses 2.4 1,142.5 65.9 (50.3 ) 1,160.5 Operating (loss) income (2.4 ) (420.8 ) 2.3 (0.7 ) (421.6 ) Other (expense) income: Interest (expense) income (14.4 ) (0.8 ) — 0.2 (15.0 ) Other income (expense), net — 0.8 0.2 (0.2 ) 0.8 (Loss) income before income taxes (16.8 ) (420.8 ) 2.5 (0.7 ) (435.8 ) Income tax benefit — 156.1 1.4 6.3 163.8 (Loss) earnings in equity of subsidiaries (255.2 ) 3.2 — 252.0 — Net (loss) income $ (272.0 ) $ (261.5 ) $ 3.9 $ 257.6 $ (272.0 ) Comprehensive (loss) income $ (204.7 ) $ (194.3 ) $ 4.0 $ 190.3 $ (204.7 ) CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Quarter Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 335.7 $ 34.0 $ (25.6 ) $ 344.1 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 270.8 29.7 (25.0 ) 275.5 Unrealized gains on derivative instruments — (1.6 ) — — (1.6 ) Depreciation and amortization — 7.5 0.2 — 7.7 Selling, general, administrative, research and development: Selling, general, administrative, research and development 1.2 18.5 2.9 (0.6 ) 22.0 Net periodic postretirement benefit income relating to VEBAs — (6.1 ) — — (6.1 ) Total selling, general, administrative, research and development 1.2 12.4 2.9 (0.6 ) 15.9 Other operating charges, net — 0.2 — — 0.2 Total costs and expenses 1.2 289.3 32.8 (25.6 ) 297.7 Operating (loss) income (1.2 ) 46.4 1.2 — 46.4 Other (expense) income: Interest expense (9.3 ) — — 0.1 (9.2 ) Other income, net 0.4 0.8 0.7 (0.1 ) 1.8 (Loss) income before income taxes (10.1 ) 47.2 1.9 — 39.0 Income tax (provision) benefit — (17.8 ) (0.5 ) 3.8 (14.5 ) Earnings in equity of subsidiaries 34.6 1.4 — (36.0 ) — Net income $ 24.5 $ 30.8 $ 1.4 $ (32.2 ) $ 24.5 Comprehensive income $ 26.6 $ 33.0 $ 1.3 $ (34.3 ) $ 26.6 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Six Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 662.8 $ 67.1 $ (50.7 ) $ 679.2 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 549.7 58.1 (49.4 ) 558.4 Unrealized gains on derivative instruments — (3.6 ) — — (3.6 ) Depreciation and amortization — 14.6 0.5 — 15.1 Selling, general, administrative, research and development: Selling, general, administrative, research and development 2.2 35.1 6.2 (1.2 ) 42.3 Net periodic postretirement benefit income relating to VEBAs — (11.7 ) — — (11.7 ) Total selling, general, administrative, research and development 2.2 23.4 6.2 (1.2 ) 30.6 Other operating charges, net — 0.2 — — 0.2 Total costs and expenses 2.2 584.3 64.8 (50.6 ) 600.7 Operating (loss) income (2.2 ) 78.5 2.3 (0.1 ) 78.5 Other (expense) income: Interest (expense) income (18.6 ) 0.4 — 0.2 (18.0 ) Other income, net 1.4 2.0 0.5 (0.2 ) 3.7 (Loss) income before income taxes (19.4 ) 80.9 2.8 (0.1 ) 64.2 Income tax (provision) benefit — (30.4 ) (0.8 ) 7.3 (23.9 ) Earnings in equity of subsidiaries 59.7 1.8 — (61.5 ) — Net income $ 40.3 $ 52.3 $ 2.0 $ (54.3 ) $ 40.3 Comprehensive income $ 43.3 $ 55.2 $ 2.1 $ (57.3 ) $ 43.3 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Six Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 233.4 $ (190.1 ) $ 5.0 $ — $ 48.3 Cash flows from investing activities: Capital expenditures — (14.3 ) (8.6 ) — (22.9 ) Purchase of available for sale securities — (0.5 ) — — (0.5 ) Proceeds from disposition of available for sale securities — 84.0 — — 84.0 Net cash provided by (used in) investing activities — 69.2 (8.6 ) — 60.6 Cash flows from financing activities: Repayment of Convertible Notes (175.0 ) — — — (175.0 ) Proceeds from cash-settled call options related to repayment of Convertible Notes 94.9 — — — 94.9 Payment for conversion premium related to repayment of Convertible Notes (94.9 ) — — — (94.9 ) Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest — 1.1 — — 1.1 Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares (3.0 ) — — — (3.0 ) Repurchase of common stock (41.4 ) — — — (41.4 ) Cash dividend paid to stockholders (14.0 ) — — — (14.0 ) Intercompany loan — (5.7 ) 5.7 — — Net cash (used in) provided by financing activities (233.4 ) (4.6 ) 5.7 — (232.3 ) Net (decrease) increase in cash and cash equivalents during the period — (125.5 ) 2.1 — (123.4 ) Cash and cash equivalents at beginning of period — 175.3 2.4 — 177.7 Cash and cash equivalents at end of period $ — $ 49.8 $ 4.5 $ — $ 54.3 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Six Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by operating activities $ 7.6 $ 56.9 $ 6.8 $ — $ 71.3 Cash flows from investing activities: Capital expenditures — (29.4 ) (0.7 ) — (30.1 ) Purchase of available for sale securities — (23.4 ) — — (23.4 ) Proceeds from disposition of available for sale securities — 25.0 — — 25.0 Net cash used in investing activities — (27.8 ) (0.7 ) — (28.5 ) Cash flows from financing activities: Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest — 0.8 — — 0.8 Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares (2.4 ) — — — (2.4 ) Repurchase of common stock (23.7 ) — — — (23.7 ) Cash dividend paid to stockholders (12.8 ) — — — (12.8 ) Intercompany loan 31.3 (22.9 ) (8.4 ) — — Net cash used in financing activities (7.6 ) (22.1 ) (8.4 ) — (38.1 ) Net increase (decrease) in cash and cash equivalents during the period — 7.0 (2.3 ) — 4.7 Cash and cash equivalents at beginning of period 5.0 157.7 6.8 — 169.5 Cash and cash equivalents at end of period $ 5.0 $ 164.7 $ 4.5 $ — $ 174.2 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declaration . On July 14, 2015 , we announced that our Board of Directors declared a cash dividend of $0.40 per common share or approximately $6.9 million (including dividend equivalents), which will be paid on or about August 14, 2015 to stockholders of record at the close of business on July 24, 2015 . Common Stock Issued Upon Exercises of Warrants. Beginning on July 1, 2015 and through July 21, 2015, 99,085 shares of our common stock were issued and 15,824 shares of our common stock were pending settlement in connection with exercises of the Warrants at an exercise price of $60.44 . The Warrants were net share settled, meaning that we delivered to the Warrant holders a number of shares for each Warrant equal to the excess (if any) of the volume weighted average price of our common stock on each exercise date over the then effective strike price of the Warrants, divided by such volume-weighted average price of our common stock, with a cash payment in lieu of fractional shares. The shares of common stock issued upon exercise of the Warrants were issued in reliance on the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended, and no underwriters were used in connection with the Warrant exercises. For additional information related to the Warrants, see Note 3 . Anti-dilution Adjustments to Warrants. Effective July 22, 2015 , the ex-dividend date for the quarter’s dividend payable August 14, 2015 , the Warrants’ exercise price will be $60.32 per share. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations. Kaiser Aluminum Corporation 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, automotive, general engineering and other industrial end market applications. Our business is organized into one operating segment, Fabricated Products. See Note 11 for additional information regarding our reportable segment and business unit. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation. The accompanying unaudited consolidated financial statements include the accounts of our 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 ("SEC") applicable for interim periods and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In management’s opinion, all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for our interim periods are not necessarily indicative of the results of operations that may be achieved for the entire 2015 fiscal year. The financial information as of December 31, 2014 is derived from our audited consolidated financial statements and footnotes for the year ended December 31, 2014 included in our Annual Report on Form 10-K. |
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 our 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 our consolidated financial position and results of operations. |
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 excesses of current cost over the stated LIFO value of inventory at June 30, 2015 and December 31, 2014 was $10.2 million and $37.6 million , respectively. 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 our inventories at June 30, 2015 and December 31, 2014 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 on 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 $0.4 million and $0.8 million during the quarters ended June 30, 2015 and June 30, 2014 , respectively. The amount of interest expense capitalized as construction in progress was $0.7 million and $1.9 million during the six months ended June 30, 2015 and June 30, 2014 , 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. 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 the quarters ended June 30, 2015 and June 30, 2014 , we recorded depreciation expense of $7.6 million and $7.3 million , respectively, relating to our operating facilities in the Fabricated Products segment. For the six months ended June 30, 2015 and June 30, 2014 , we recorded depreciation expense of $15.1 million and $14.1 million , respectively, relating to our operating facilities in the Fabricated Products segment. An immaterial amount of depreciation expense was also recorded within All Other for all periods presented in this Report. We classify assets as held for sale only when an asset is being actively marketed and expected to sell within 12 months. Assets held for sale are initially measured at the lesser of the assets’ carrying amount and the fair value less costs to sell. |
Concentration of Labor Subject to Collective Bargaining Agreements [Policy Text Block] | Concentration of Labor Subject to Collective Bargaining Agreements . At June 30, 2015 , approximately 63% of our employees were covered by collective bargaining agreements and none of our employees were covered by collective bargaining agreements with expiration dates occurring within the remainder of 2015. |
Dividends policy [Policy Text Block] | Dividends . To the extent we expect to be in a capital surplus position by the end of the fiscal year, cash dividends and dividend equivalents paid are charged against (Accumulated deficit) retained earnings; otherwise, dividends and dividend equivalents paid are charged against Additional paid in capital. |
Derivatives, Policy [Policy Text Block] | Foreign Currency Risk Management. From time to time, we enter into foreign currency forward contracts to protect the value of anticipated foreign currency expenses associated cash commitments for equipment purchases. These derivative instruments are designated and qualify for cash flow hedge accounting and are adjusted to current market values each reporting period. Both realized and unrealized periodic gains and losses of derivative instruments designated as cash flow hedges are deferred in Accumulated other comprehensive loss until depreciation on the underlying equipment commences. Upon commencement, realized gains and losses are recorded in Net income (loss) as an adjustment to depreciation expense in the period in which depreciation is recognized on the underlying equipment. Depending on the time to maturity and asset or liability position, the carrying values of cash flow hedges are included in Prepaid expenses and other current assets, Other assets, Other accrued liabilities or Long-term liabilities. Our policy requires that derivative instruments used as hedges must be effective at reducing the risk associated with the exposure being hedged and must be designated as a hedge at the inception of the instrument contract. Hedge effectiveness is assessed periodically. Any derivative instrument not designated as a hedge, or so designated but ineffective, is adjusted to market value and recognized in net income immediately. If a cash flow hedge ceases to qualify for hedge accounting treatment or is terminated, the derivative instrument would continue to be carried on the balance sheet at fair value until settled and future adjustments to the derivative instrument’s fair value would be recognized in earnings immediately. If a forecasted equipment purchase was no longer probable to occur, amounts previously deferred in accumulated other comprehensive income would be recognized immediately in earnings. See Note 8 for additional information. We are exposed to counterparty credit risk on all of our derivative instruments. Accordingly, we have established and maintained strict counterparty credit guidelines and entered into hedges only with major financial institutions that are investment grade or better. We do not have significant exposure to any one counterparty and management believes the risk of loss is remote and in any event would not be material. Additionally, we do not require collateral under these agreements. |
New Accounting Pronouncements | New Accounting Pronouncements. ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), was issued in May 2014. ASU 2014-09 requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, the guidance provides that an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. We expect to adopt ASU 2014-09 for the fiscal year ending December 31, 2018. ASU No. 2014-12, Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period - Consensus of the FASB Emerging Issues Task Force ("ASU 2014-12"), was issued in June 2014. ASU 2014-12 requires an entity to treat a performance target that affects vesting and that could be achieved after the requisite service period as a performance condition. Our adoption of this ASU in the first quarter of 2015 did not have a material impact on our consolidated financial statements. ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"), was issued in April 2015. ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in an entity’s balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of being presented as a deferred charge in the balance sheet. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. An entity is required to adopt ASU 2015-03 for reporting periods beginning on or after December 15, 2015. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. ASU No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement ("ASU 2015-05"), was issued in April 2015. The ASU requires companies to perform the same assessment that vendors currently perform under ASC 985-605; that is, companies must determine whether an arrangement with its vendor contains a software license element. If so, the related fees paid are accounted for as an internal-use software intangible under ASC 350-40; if not, the arrangement is accounted for as a service contract. As a result of the issuance of this ASU, all software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. An entity is required to adopt ASU 2015-05 for reporting periods beginning on or after December 15, 2015. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. |
Supplemental Balance Sheet In26
Supplemental Balance Sheet Information Supplemental Balance Sheet Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Disclosures | June 30, 2015 December 31, 2014 (In millions of dollars) Cash and Cash Equivalents Cash and money market funds $ 42.3 $ 29.5 Commercial paper 12.0 148.2 Total $ 54.3 $ 177.7 Trade Receivables – Net Billed trade receivables $ 138.6 $ 128.7 Unbilled trade receivables 0.8 1.4 Trade receivables, gross 139.4 130.1 Allowance for doubtful receivables (0.8 ) (0.8 ) Trade receivables – net $ 138.6 $ 129.3 Inventories Finished products $ 64.6 $ 73.6 Work-in-process 70.2 66.7 Raw materials 60.4 54.2 Operating supplies and repair and maintenance parts 22.1 20.2 Total $ 217.3 $ 214.7 Prepaid Expenses and Other Current Assets Current derivative assets – Notes 8 and 9 $ 0.3 $ 85.7 Current deferred tax assets 92.2 86.4 Short-term restricted cash 0.3 0.3 Prepaid taxes 2.0 — Other 5.6 6.2 Total $ 100.4 $ 178.6 June 30, 2015 December 31, 2014 (In millions of dollars) Property, Plant and Equipment – Net Land and improvements $ 22.7 $ 22.9 Buildings and leasehold improvements 64.1 63.8 Machinery and equipment 523.2 509.8 Construction in progress 36.1 25.2 Property, plant and equipment – gross 646.1 621.7 Accumulated depreciation (181.9 ) (166.8 ) Assets held for sale 0.3 — Property, plant and equipment – net $ 464.5 $ 454.9 Other Assets Restricted cash $ 10.4 $ 10.0 Deferred financing costs 5.0 5.9 Deferred compensation plan assets 7.6 7.3 Other 0.1 0.1 Total $ 23.1 $ 23.3 Other Accrued Liabilities Current derivative liabilities – Notes 8 and 9 $ 15.6 $ 94.9 Uncleared cash disbursements 5.0 9.1 Accrued income taxes and taxes payable 6.3 5.2 Accrued annual contribution to VEBAs — 13.7 Accrued contingent contribution to Union VEBA - Note 5 17.1 — Short-term environmental accruals – Note 7 2.2 2.3 Accrued interest 1.7 3.7 Short-term deferred revenue 0.2 0.2 Other 3.5 3.7 Total $ 51.6 $ 132.8 Long-Term Liabilities Derivative liabilities – Notes 8 and 9 $ 2.0 $ 1.9 Income tax liabilities 0.7 2.4 Workers’ compensation accruals 20.7 21.5 Long-term environmental accruals – Note 7 17.3 17.0 Long-term asset retirement obligations 4.7 4.4 Deferred compensation liabilities 7.8 7.2 Long-term deferred revenue 0.4 0.5 Long-term capital leases 0.1 0.1 Long-term portion of contingent contribution to Union VEBA – Note 5 29.9 — Other long-term liabilities 3.2 3.3 Total $ 86.8 $ 58.3 |
Long-Term Debt and Credit Fac27
Long-Term Debt and Credit Facility (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Principal amount, carrying amount, and interest expense of the notes | The following table provides additional information regarding the Convertible Notes (in millions of dollars): Quarter Ended Six Months Ended 2015 2014 2015 2014 Contractual coupon interest $ — $ 1.9 $ 2.0 $ 3.9 Amortization of discount — 2.3 2.4 4.4 Amortization of deferred financing costs — 0.3 0.3 0.6 Total interest expense 1 $ — $ 4.5 $ 4.7 $ 8.9 ____________ 1 A portion of the interest relating to the Convertible Notes was capitalized as construction in progress. |
Income Tax Matters (Tables)
Income Tax Matters (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Tax Provision | The provision for (benefit from) incomes taxes, for each period presented, consisted of the following (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Domestic $ 13.4 $ 13.9 $ (162.4 ) $ 23.0 Foreign (1.4 ) 0.6 (1.4 ) 0.9 Total $ 12.0 $ 14.5 $ (163.8 ) $ 23.9 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of (Income) Charges Related to Benefit Plans | The following table presents the components of net periodic postretirement benefit cost (income) for the VEBAs and charges relating to all other employee benefit plans for the periods presented (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 VEBAs: Service cost 1 $ — $ 0.5 $ — $ 1.1 Interest cost 0.7 4.2 1.4 8.3 Expected return on plan assets (1.1 ) (12.8 ) (2.2 ) (25.6 ) Amortization of prior service cost 0.8 2.6 1.5 5.4 Amortization of net actuarial loss (gain) 0.2 (0.6 ) 0.5 (0.9 ) Total net periodic postretirement benefit cost (income) relating to VEBAs 0.6 (6.1 ) 1.2 (11.7 ) Loss on removal of Union VEBA net assets 2 1.6 — 493.8 — Total VEBAs 2.2 (6.1 ) 495.0 (11.7 ) Other employee benefit plans: Deferred compensation plan 0.1 0.4 0.5 0.6 Defined contribution plans 1.7 1.5 5.7 5.5 Multiemployer pension plans 0.9 0.9 1.8 1.8 Total other employee benefit plans $ 2.7 $ 2.8 $ 8.0 $ 7.9 Total $ 4.9 $ (3.3 ) $ 503.0 $ (3.8 ) |
Allocation of (Income) Charges Relating to Benefit Plans by Segment | (in millions of dollars – see Note 11 ): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Fabricated Products $ 2.4 $ 2.3 $ 7.0 $ 6.9 All Other 2.5 (5.6 ) 496.0 (10.7 ) Total $ 4.9 $ (3.3 ) $ 503.0 $ (3.8 ) |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Cost of products sold, excluding depreciation and amortization and other items $ 1.4 $ 1.4 $ 2.2 $ 2.5 Selling, general, administrative, research and development 3.2 3.2 5.7 4.5 Total costs recorded in connection with STI Plans $ 4.6 $ 4.6 $ 7.9 $ 7.0 The following table presents the allocation of the charges detailed above, by segment (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Fabricated Products $ 3.1 $ 3.5 $ 5.5 $ 5.4 All Other 1.5 1.1 2.4 1.6 Total costs recorded in connection with STI Plans $ 4.6 $ 4.6 $ 7.9 $ 7.0 |
Non-cash compensation expense | Non-cash compensation expense by type of award under LTI Programs were as follows for each period presented (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Non-vested common shares and restricted stock units $ 1.1 $ 1.2 $ 2.2 $ 2.3 EVA-Based Performance Shares 0.3 0.5 0.7 1.0 TSR-Based Performance Shares 1.0 0.6 1.7 1.0 Total non-cash compensation expense $ 2.4 $ 2.3 $ 4.6 $ 4.3 The following table presents the allocation of the charges detailed above, by segment (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Fabricated Products $ 0.9 $ 1.1 $ 1.6 $ 2.1 All Other 1.5 1.2 3.0 2.2 Total non-cash compensation expense $ 2.4 $ 2.3 $ 4.6 $ 4.3 |
Unrecognized gross compensation cost data | The following table presents unrecognized gross compensation cost data by type of award as of June 30, 2015 : Unrecognized gross compensation costs (in millions of dollars) Expected period (in years) over which the remaining gross compensation costs will be recognized Non-vested common shares and restricted stock units $ 8.0 2.2 EVA-Based Performance Shares $ 0.9 0.7 TSR-Based Performance Shares $ 9.9 2.4 |
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, EVA-Based Performance Shares and TSR-Based Performance Shares for the six months ended June 30, 2015 was as follows: Non-Vested Common Shares Restricted Stock Units EVA-Based Performance Shares TSR-Based Performance Shares Shares Weighted-Average Grant-Date Fair Value per Share Units Weighted-Average Grant-Date Fair Value per Unit Shares Weighted-Average Grant-Date Fair Value per Share Shares Weighted-Average Outstanding at December 31, 2014 158,770 $ 59.88 5,357 $ 59.71 353,576 $ 50.35 150,223 $ 83.18 Granted 1 62,285 71.67 2,325 69.83 — — 150,424 95.68 Vested (57,849 ) 52.68 (2,161 ) 52.91 (48,648 ) 44.48 — — Forfeited 1 (540 ) 66.89 — — (432 ) 57.54 (404 ) 83.18 Canceled 2 — — — — (146,016 ) 44.48 — — Outstanding at June 30, 2015 162,666 $ 66.93 5,521 $ 66.64 158,480 $ 57.75 300,243 $ 89.44 ____________ 1 For EVA-Based Performance Shares and TSR-Based Performance Shares, the number of shares granted and forfeited are presented at their maximum payout. 2 For EVA-Based Performance Shares and TSR-Based Performance Shares, canceled represents the number of shares that did not vest due to EVA or TSR performance results falling below those required for maximum payout. |
Derivative Financial Instrume31
Derivative Financial Instruments and Related Hedging Programs (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Included in Other Comprehensive Income (Loss): Unrealized (losses): Foreign Currency $ (0.2 ) $ — $ (0.2 ) $ — Included in Statements of Consolidated Income (Loss): Realized (losses) gains 1 : Aluminum (7.1 ) 1.3 (9.8 ) 2.1 Natural Gas (1.3 ) 0.5 (2.6 ) 1.2 Electricity (0.4 ) (0.5 ) (1.1 ) — Total realized (losses) gains $ (8.8 ) $ 1.3 $ (13.5 ) $ 3.3 Unrealized (losses) gains 2 : Hedges of operational risk: Aluminum $ (4.3 ) $ 0.6 $ (8.5 ) $ 2.3 Natural Gas 1.5 (0.2 ) 0.8 0.6 Electricity 1.3 1.2 1.7 0.7 Foreign Currency — (0.1 ) — (0.1 ) Total hedges of operational risk (1.5 ) 1.5 (6.0 ) 3.5 Option Assets relating to the Convertible Notes 3 — 2.5 10.2 6.9 Bifurcated Conversion Feature of the Convertible Notes 3 — (2.0 ) (10.2 ) (5.5 ) Total unrealized (losses) gains $ (1.5 ) $ 2.0 $ (6.0 ) $ 4.9 ______________________ 1 Realized (losses) gains on hedges of operational risk are recorded within Cost of products sold, excluding depreciation, amortization and other items. 2 Unrealized (losses) gains on hedges of operational risk are recorded within Unrealized losses (gains) on derivative instruments. 3 Unrealized (losses) gains on financial derivatives are recorded within Other income, net. |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table summarizes our material derivative positions at June 30, 2015 : Aluminum Maturity Period (month/year) Notional Amount of contracts (mmlbs) Fixed price purchase contracts 7/15 through 12/16 117.1 Fixed price sales contracts 1/16 through 5/16 0.9 Midwest premium swap contracts 1 7/15 through 12/16 93.2 Natural Gas 2 Maturity Period (month/year) Notional Amount of contracts (mmbtu) Fixed price purchase contracts 7/15 through 12/17 6,160,000 Electricity 3 Maturity Period (month/year) Notional Amount of contracts (Mwh) Fixed price purchase contracts 7/15 through 12/15 88,340 Euro Maturity Period (month/year) Notional Amount of contracts (euro) Fixed price purchase contracts 7/15 through 12/16 8,135,000 ______________________ 1 Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on our purchases of primary aluminum. 2 As of June 30, 2015 , we had Henry Hub NYMEX-based hedge positions in place to cover exposure to fluctuations in prices for approximately 79% , 75% and 34% of the expected natural gas purchases for the remainder of 2015 , 2016 and 2017 , respectively. 3 As of June 30, 2015 , we had Mid-C International Commodity Exchange-based hedge positions in place to cover exposure to fluctuations in prices for approximately 54% , 54% and 36% of the expected electricity purchases for the remainder of 2015 , 2016 and 2017 , respectively. |
Summary of material derivative positions | The following table summarizes our material derivative positions at June 30, 2015 : Aluminum Maturity Period (month/year) Notional Amount of contracts (mmlbs) Fixed price purchase contracts 7/15 through 12/16 117.1 Fixed price sales contracts 1/16 through 5/16 0.9 Midwest premium swap contracts 1 7/15 through 12/16 93.2 Natural Gas 2 Maturity Period (month/year) Notional Amount of contracts (mmbtu) Fixed price purchase contracts 7/15 through 12/17 6,160,000 Electricity 3 Maturity Period (month/year) Notional Amount of contracts (Mwh) Fixed price purchase contracts 7/15 through 12/15 88,340 Euro Maturity Period (month/year) Notional Amount of contracts (euro) Fixed price purchase contracts 7/15 through 12/16 8,135,000 ______________________ 1 Regional premiums represent the premium over the London Metal Exchange price for primary aluminum which is incurred on our purchases of primary aluminum. 2 As of June 30, 2015 , we had Henry Hub NYMEX-based hedge positions in place to cover exposure to fluctuations in prices for approximately 79% , 75% and 34% of the expected natural gas purchases for the remainder of 2015 , 2016 and 2017 , respectively. 3 As of June 30, 2015 , we had Mid-C International Commodity Exchange-based hedge positions in place to cover exposure to fluctuations in prices for approximately 54% , 54% and 36% of the expected electricity purchases for the remainder of 2015 , 2016 and 2017 , respectively. |
Summary of offsetting derivative instruments by counterparty | The following tables present offsetting information regarding our derivatives by type of counterparty as of June 30, 2015 (in millions of dollars): 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) $ 0.2 $ — $ 0.2 $ 0.2 $ — $ — Counterparty (with partial netting agreements) 0.1 — 0.1 0.1 — — Total $ 0.3 $ — $ 0.3 $ 0.3 $ — $ — 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) $ (9.5 ) $ — $ (9.5 ) $ (0.2 ) $ — $ (9.3 ) Counterparty (without netting agreements) (1.6 ) — (1.6 ) — — (1.6 ) Counterparty (with partial netting agreements) (6.5 ) — (6.5 ) (0.1 ) — (6.4 ) Total $ (17.6 ) $ — $ (17.6 ) $ (0.3 ) $ — $ (17.3 ) The following tables present offsetting information regarding our derivatives by type of counterparty as of December 31, 2014 (in millions of dollars): 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) $ 0.9 $ — $ 0.9 $ 0.8 $ — $ 0.1 Counterparty (without netting agreements) 1 84.8 — 84.8 — — 84.8 Total $ 85.7 $ — $ 85.7 $ 0.8 $ — $ 84.9 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) $ (8.0 ) $ — $ (8.0 ) $ (0.8 ) $ — $ (7.2 ) Counterparty (without netting agreements) 1 (85.0 ) — (85.0 ) — — (85.0 ) Counterparty (with partial netting agreements) (3.8 ) — (3.8 ) — — (3.8 ) Total $ (96.8 ) $ — $ (96.8 ) $ (0.8 ) $ — $ (96.0 ) _________________ 1 Such amounts include the fair value of the Bifurcated Conversion Feature and Option Assets at December 31, 2014 (see Note 9 ). |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of assets and liabilities measured and recognized at fair value on a recurring basis | The following table presents our financial instruments, classified under the appropriate level of the fair value hierarchy, as of the period presented (in millions of dollars): June 30, 2015 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Derivative Instruments (Non-Designated Hedges): Aluminum - Fixed price sales contracts $ — $ 0.1 $ — $ 0.1 Electricity - Fixed price purchase contracts — 0.2 — 0.2 All Other Financial Assets: Cash and cash equivalents 42.3 12.0 — 54.3 Short-term investments — 30.0 — 30.0 Deferred compensation plan asset — 7.6 — 7.6 Total assets $ 42.3 $ 49.9 $ — $ 92.2 FINANCIAL LIABILITIES: Derivative Instruments (Non-Designated Hedges): Aluminum - Fixed price purchase contracts $ — $ (7.5 ) $ — $ (7.5 ) Midwest premium swap contracts — — (4.3 ) (4.3 ) Natural Gas - Fixed price purchase contracts — (5.4 ) — (5.4 ) Electricity - Fixed price purchase contracts — (0.2 ) — (0.2 ) Derivative Instruments (Designated Hedges): Foreign Currency - Euro forward purchase contracts — (0.2 ) — (0.2 ) All Other Financial Liabilities: Senior Notes (243.7 ) — — (243.7 ) Total liabilities $ (243.7 ) $ (13.3 ) $ (4.3 ) $ (261.3 ) The following table presents our financial instruments, classified under the appropriate level of the fair value hierarchy, as of the period presented (in millions of dollars): December 31, 2014 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Derivative Instruments (Non-Designated Hedges): Aluminum - Midwest premium swap contracts $ — $ — $ 1.0 $ 1.0 Hedges Relating to the Convertible Notes - Option Assets — 84.7 — 84.7 All Other Financial Assets: Cash and cash equivalents 29.5 148.2 — 177.7 Short-term investments — 114.0 — 114.0 Deferred compensation plan asset — 7.3 — 7.3 Total assets $ 29.5 $ 354.2 $ 1.0 $ 384.7 FINANCIAL LIABILITIES: Derivative Instruments (Non-Designated Hedges): Aluminum - Fixed price purchase contracts $ — $ (4.2 ) $ — $ (4.2 ) Natural Gas - Fixed price purchase contracts — (6.2 ) — (6.2 ) Electricity - Fixed price purchase contracts — (1.7 ) — (1.7 ) Hedges Relating to the Convertible Notes - Bifurcated Conversion Feature — (84.7 ) — (84.7 ) All Other Financial Liabilities: Senior Notes (244.5 ) — — (244.5 ) Convertible Notes, including Bifurcated Conversion Feature (263.3 ) — — (263.3 ) Total liabilities $ (507.8 ) $ (96.8 ) $ — $ (604.6 ) |
Reconciliation of activity for financial instruments classified as Level 3 | The following table presents a reconciliation of activity for the Midwest premium derivative contracts on a net basis (in millions of dollars): Level 3 Balance at December 31, 2014 $ 1.0 Total realized/unrealized (losses) included in: Cost of goods sold excluding depreciation and amortization and other items and Unrealized losses (gains) on derivative instruments (3.9 ) Transactions involving Level 3 derivative contracts: Purchases (4.9 ) Sales — Issuances — Settlements 3.5 Transactions involving Level 3 derivatives — net (1.4 ) Transfers in and (or) out of Level 3 valuation hierarchy — Balance at June 30, 2015 $ (4.3 ) Total (losses) included in Unrealized losses (gains) on derivative instruments, attributable to the change in unrealized gains/losses relating to derivative contracts held at June 30, 2015: $ (4.4 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted earnings per share | Basic and diluted net income (loss) per share were calculated as follows, for each period presented (in millions of dollars, except share and per share amounts): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Numerator: Net income (loss) $ 20.2 $ 24.5 $ (272.0 ) $ 40.3 Denominator - Weighted-average common shares outstanding (in thousands): Basic 1 17,006 17,841 17,233 17,889 Add: dilutive effect of non-vested common shares, restricted stock units and performance shares 247 112 — 133 Add: dilutive effect of warrants 939 505 — 490 Diluted 2 18,192 18,458 17,233 18,512 Net income (loss) per common share, Basic: $ 1.19 $ 1.38 $ (15.78 ) $ 2.25 Net income (loss) per common share, Diluted: $ 1.11 $ 1.33 $ (15.78 ) $ 2.18 ______________________ 1 The basic weighted-average number of common shares outstanding during the periods presented excludes non-vested common shares, restricted stock units and performance shares. 2 The diluted weighted-average number of common shares outstanding during the periods presented was calculated using the treasury method. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following securities were excluded from the weighted-average diluted shares computation for the quarters ended June 30, 2015 and June 30, 2014 as their inclusion would have been anti-dilutive (in thousands of shares): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Options to purchase common shares — 21 17 21 Non-vested common shares, restricted stock units and performance shares — 43 243 28 Warrants — — 799 — Total excluded — 64 1,059 49 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Summary of financial information by operating segment | Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net sales: Fabricated Products $ 367.2 $ 344.1 $ 738.9 $ 679.2 Segment operating (loss) income: Fabricated Products 1 $ 50.6 $ 50.2 $ 95.5 $ 85.6 All Other 2 (13.6 ) (3.8 ) (517.1 ) (7.1 ) Total operating (loss) income $ 37.0 $ 46.4 $ (421.6 ) $ 78.5 Interest expense (5.2 ) (9.2 ) (15.0 ) (18.0 ) Other income, net 0.4 1.8 0.8 3.7 (Loss) income before income taxes $ 32.2 $ 39.0 $ (435.8 ) $ 64.2 Depreciation and amortization: Fabricated Products $ 8.0 $ 7.7 $ 15.9 $ 14.9 All Other 0.1 — 0.2 0.2 Total depreciation and amortization $ 8.1 $ 7.7 $ 16.1 $ 15.1 Capital expenditures: Fabricated Products $ 11.5 $ 14.2 $ 22.7 $ 29.5 All Other 0.1 0.5 0.2 0.6 Total capital expenditures $ 11.6 $ 14.7 $ 22.9 $ 30.1 _____________________ 1 Fabricated Products segment operating income included non-cash mark-to-market (losses) gains on primary aluminum, natural gas, electricity and foreign currency hedging activities totaled $(1.5) million and $1.5 million for the quarters ended June 30, 2015 and June 30, 2014 , respectively. Non-cash mark-to-market (losses) gains on primary aluminum, natural gas, electricity and foreign currency hedging activities totaled $(6.0) million and $3.5 million for the six months ended June 30, 2015 and June 30, 2014 , respectively. For further discussion regarding mark-to-market matters, see Note 8 . 2 Operating loss in All Other included Net periodic postretirement benefit cost (income) of $0.6 million and $(6.1) million for the quarters ended June 30, 2015 and June 30, 2014 , respectively, and $1.2 million and $(11.7) million for the six months ended June 30, 2015 and June 30, 2014 , respectively. Additionally, operating loss in All Other included Loss on removal of Union VEBA net assets of $1.6 million and $493.8 million during the quarter and six months ended June 30, 2015 , respectively. See Note 5 for further details. June 30, 2015 December 31, 2014 Assets: Fabricated Products $ 900.1 $ 878.9 All Other 1 351.2 864.8 Total assets $ 1,251.3 $ 1,743.7 _____________________ 1 Assets in All Other represent primarily all of our cash and cash equivalents, short-term investments, financial derivative assets, net assets of VEBAs (see Note 5 and Note 9 ) and net deferred income tax assets. |
Schedule of net sales by end market segment applications | Net sales by product categories based on end market applications for the Fabricated Products segment were as follows (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Net sales: Aero/HS products $ 181.1 $ 173.0 $ 361.4 $ 336.6 Automotive Extrusions 53.7 44.7 103.8 85.5 GE products 112.0 107.3 231.1 219.5 Other products 20.4 19.1 42.6 37.6 Total net sales $ 367.2 $ 344.1 $ 738.9 $ 679.2 |
Schedule of income taxes paid by geographical area | Geographic information for income taxes paid were as follows (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Income taxes paid: Fabricated Products — United States $ 0.2 $ 0.1 $ 0.3 $ 0.2 Canada 0.4 0.3 1.3 0.9 Total income taxes paid $ 0.6 $ 0.4 $ 1.6 $ 1.1 |
Schedule of information for contractual delivery of primary aluminum supply from major suppliers | Information for contractual delivery of our primary aluminum supply from our major suppliers were as follows: Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Percentage of Total Annual Primary Aluminum Supply (lbs): Supply from the Company's top five major suppliers 86 % 83 % 87 % 84 % Supply from the Company's largest supplier 27 % 29 % 28 % 30 % Supply from the Company's second and third largest suppliers 36 % 30 % 35 % 32 % |
Supplemental Cash Flow Inform35
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Six Months Ended June 30, 2015 2014 (In millions of dollars) Interest paid $ 13.3 $ 12.1 Non-cash investing and financing activities: Stock repurchases not yet settled (accrued in accounts payable) $ 0.1 $ 0.3 Unpaid purchases of property and equipment $ 3.8 $ 1.1 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other income, net consisted of the following, for each period presented (in millions of dollars): Quarter Ended Six Months Ended June 30, June 30, 2015 2014 2015 2014 Interest income $ — $ 0.2 $ 0.2 $ 0.5 Unrealized gains on financial derivatives 1 — 0.5 — 1.4 Realized gains on investments 0.2 0.2 0.5 0.4 All other, net 0.2 0.9 0.1 1.4 Other income, net $ 0.4 $ 1.8 $ 0.8 $ 3.7 ______________________ 1 See " Hedges Relating to the Convertible Notes " in Note 8 for discussion of such instruments. |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive Income | The following table presents the tax effect allocated to each component of other comprehensive income (loss) for each period presented (in millions of dollars): Before-Tax Income Tax Net-of-Tax Amount (Expense) Benefit 4 Amount Quarter Ended June 30, 2015 VEBAs: Reclassification adjustments: Amortization of net actuarial loss 1 $ 0.2 $ (0.1 ) $ 0.1 Amortization of prior service cost 1 0.8 (0.3 ) 0.5 Other comprehensive income relating to VEBAs 1.0 (0.4 ) 0.6 Available for sale securities: Unrealized loss on available for sale securities (0.3 ) 0.1 (0.2 ) Reclassification adjustments: Reclassification of unrealized loss upon sale of available for sale securities 3 0.1 — 0.1 Other comprehensive loss relating to available for sale securities (0.2 ) 0.1 (0.1 ) Unrealized loss on foreign currency cash flow hedges (0.2 ) 0.1 (0.1 ) Other comprehensive income $ 0.6 $ (0.2 ) $ 0.4 Quarter Ended June 30, 2014 VEBAs: Reclassification adjustments: Amortization of net actuarial gain 2 $ (0.6 ) $ 0.2 $ (0.4 ) Amortization of prior service cost 2 2.6 (1.0 ) 1.6 Other comprehensive income relating to VEBAs 2.0 (0.8 ) 1.2 Available for sale securities: Unrealized gain on available for sale securities 0.2 (0.1 ) 0.1 Reclassification adjustments: Reclassification of unrealized gain upon sale of available for sale securities 3 (0.1 ) 0.1 — Other comprehensive income relating to available for sale securities 0.1 — 0.1 Foreign currency translation adjustment (0.1 ) — (0.1 ) Cumulative tax rate adjustment — 0.9 0.9 Other comprehensive income $ 2.0 $ 0.1 $ 2.1 Before-Tax Income Tax Net-of-Tax Amount (Expense) Benefit 4 Amount Six Months Ended June 30, 2015 VEBAs: Reclassification adjustments: Amortization of net actuarial loss 1 $ 0.5 $ (0.2 ) $ 0.3 Amortization of prior service cost 1 1.5 (0.6 ) 0.9 Removal of obligation relating to Union VEBA 106.6 (40.4 ) 66.2 Other comprehensive income relating to VEBAs 108.6 (41.2 ) 67.4 Available for sale securities: Unrealized loss on available for sale securities (0.3 ) 0.1 (0.2 ) Reclassification adjustments: Reclassification of unrealized loss upon sale of available for sale securities 3 0.2 (0.1 ) 0.1 Other comprehensive loss relating to available for sale securities (0.1 ) — (0.1 ) Unrealized loss on foreign currency cash flow hedges (0.2 ) 0.1 (0.1 ) Foreign currency translation adjustment 0.1 — 0.1 Other comprehensive income $ 108.4 $ (41.1 ) $ 67.3 Six Months Ended June 30, 2014 VEBAs: Reclassification adjustments: Amortization of net actuarial (gain) 2 $ (0.9 ) $ 0.3 $ (0.6 ) Amortization of prior service cost 2 5.4 (2.0 ) 3.4 Other comprehensive income relating to VEBAs 4.5 (1.7 ) 2.8 Available for sale securities: Unrealized gain on available for sale securities 0.3 (0.1 ) 0.2 Reclassification adjustments: Reclassification of unrealized gain upon sale of available for sale securities 3 (0.2 ) 0.1 (0.1 ) Other comprehensive income relating to available for sale securities 0.1 — 0.1 Foreign currency translation adjustment 0.1 — 0.1 Other comprehensive income $ 4.7 $ (1.7 ) $ 3.0 ________________ 1 Amounts reclassified out of Accumulated other comprehensive loss relating to VEBA adjustments were included as a component of Net periodic postretirement benefit loss (income) relating to the Salaried VEBA. 2 Amounts reclassified out of Accumulated other comprehensive loss relating to VEBA adjustments were included as a component of Net periodic postretirement benefit loss (income) relating to both VEBAs. 3 Amounts reclassified out of Accumulated other comprehensive loss relating to sales of available for sale securities were included as a component of Other income, net. We use the specific identification method to determine the amount reclassified out of Accumulated other comprehensive loss. 4 Income tax amounts reclassified out of Accumulated other comprehensive loss relating to VEBA adjustments and sales of available for sale securities were included as a component of Income tax provision. |
Guarantor and Non-Guarantor F38
Guarantor and Non-Guarantor Financial Statements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Guarantor and Non-Guarantor Financial Statement [Abstract] | |
Schedule of Condensed Financial Statements | CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 49.8 $ 4.5 $ — $ 54.3 Short-term investments — 30.0 — — 30.0 Receivables: Trade receivables — net — 134.7 3.9 — 138.6 Intercompany receivables 29.2 78.7 1.8 (109.7 ) — Other — 2.6 3.3 — 5.9 Inventories — 212.8 6.1 (1.6 ) 217.3 Prepaid expenses and other current assets 0.2 99.8 0.4 — 100.4 Total current assets 29.4 608.4 20.0 (111.3 ) 546.5 Investments in and advances to subsidiaries 1,026.8 33.6 — (1,060.4 ) — Property, plant and equipment — net — 439.5 25.0 — 464.5 Long-term intercompany receivables — — 10.2 (10.2 ) — Deferred tax assets — net — 141.6 — 7.1 148.7 Intangible assets — net — 31.3 — — 31.3 Goodwill — 37.2 — — 37.2 Other assets 4.0 19.0 0.1 — 23.1 Total $ 1,060.2 $ 1,310.6 $ 55.3 $ (1,174.8 ) $ 1,251.3 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 0.6 $ 67.5 $ 9.3 $ — $ 77.4 Intercompany payable 74.3 39.5 3.7 (117.5 ) — Accrued salaries, wages and related expenses — 31.5 2.9 — 34.4 Other accrued liabilities 1.5 50.1 — — 51.6 Short-term capital lease — 0.1 — — 0.1 Total current liabilities 76.4 188.7 15.9 (117.5 ) 163.5 Net liabilities of Salaried VEBA — 16.4 — — 16.4 Deferred tax liabilities — — 0.8 — 0.8 Long-term intercompany payable — 10.2 — (10.2 ) — Long-term liabilities — 80.9 5.9 — 86.8 Long-term debt 225.0 — — — 225.0 Total liabilities 301.4 296.2 22.6 (127.7 ) 492.5 Total stockholders’ equity 758.8 1,014.4 32.7 (1,047.1 ) 758.8 Total $ 1,060.2 $ 1,310.6 $ 55.3 $ (1,174.8 ) $ 1,251.3 CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) December 31, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 175.3 $ 2.4 $ — $ 177.7 Short-term investments — 114.0 — — 114.0 Receivables: Trade receivables — net — 126.1 3.2 — 129.3 Intercompany receivables 204.2 4.0 0.9 (209.1 ) — Other — 5.6 5.3 — 10.9 Inventories — 208.0 7.6 (0.9 ) 214.7 Prepaid expenses and other current assets 85.1 93.1 0.4 — 178.6 Total current assets 289.3 726.1 19.8 (210.0 ) 825.2 Investments in and advances to subsidiaries 1,209.2 32.5 — (1,241.7 ) — Property, plant and equipment — net — 437.4 17.5 — 454.9 Long-term intercompany receivables — — 15.9 (15.9 ) — Net assets of Union VEBA — 340.1 — — 340.1 Deferred tax assets — net — 23.8 — 7.1 30.9 Intangible assets — net — 32.1 — — 32.1 Goodwill — 37.2 — — 37.2 Other assets 4.4 18.8 0.1 — 23.3 Total $ 1,502.9 $ 1,648.0 $ 53.3 $ (1,460.5 ) $ 1,743.7 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1.3 $ 73.8 $ 6.3 $ — $ 81.4 Intercompany payable — 221.3 3.3 (224.6 ) — Accrued salaries, wages and related expenses — 36.5 3.1 — 39.6 Other accrued liabilities 88.2 43.8 0.8 — 132.8 Current portion of long-term debt 172.5 — — — 172.5 Short-term capital lease — 0.1 — — 0.1 Total current liabilities 262.0 375.5 13.5 (224.6 ) 426.4 Net liabilities of Salaried VEBA — 17.2 — — 17.2 Deferred tax liabilities — — 0.9 — 0.9 Long-term intercompany payable — 15.9 — (15.9 ) — Long-term liabilities — 50.3 8.0 — 58.3 Long-term debt 225.0 — — — 225.0 Total liabilities 487.0 458.9 22.4 (240.5 ) 727.8 Total stockholders’ equity 1,015.9 1,189.1 30.9 (1,220.0 ) 1,015.9 Total $ 1,502.9 $ 1,648.0 $ 53.3 $ (1,460.5 ) $ 1,743.7 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Quarter Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 358.3 $ 33.5 $ (24.6 ) $ 367.2 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 289.4 28.9 (23.5 ) 294.8 Unrealized loss on derivative instruments — 1.5 — — 1.5 Depreciation and amortization — 7.8 0.3 — 8.1 Selling, general, administrative, research and development: Selling, general, administrative, research and development 1.4 19.5 3.2 (0.5 ) 23.6 Net periodic postretirement benefit cost relating to Salaried VEBA — 0.6 — — 0.6 Loss on removal of Union VEBA net assets — 1.6 — — 1.6 Total selling, general, administrative, research and development 1.4 21.7 3.2 (0.5 ) 25.8 Total costs and expenses 1.4 320.4 32.4 (24.0 ) 330.2 Operating (loss) income (1.4 ) 37.9 1.1 (0.6 ) 37.0 Other (expense) income: Interest (expense) (4.9 ) (0.3 ) — — (5.2 ) Other income, net — 0.3 0.1 — 0.4 (Loss) income before income taxes (6.3 ) 37.9 1.2 (0.6 ) 32.2 Income tax (provision) benefit — (15.8 ) 1.4 2.4 (12.0 ) Earnings in equity of subsidiaries 26.5 2.1 — (28.6 ) — Net income $ 20.2 $ 24.2 $ 2.6 $ (26.8 ) $ 20.2 Comprehensive income $ 20.6 $ 24.6 $ 2.6 $ (27.2 ) $ 20.6 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME (In millions of dollars) Six Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 721.7 $ 68.2 $ (51.0 ) $ 738.9 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 585.8 60.5 (49.2 ) 597.1 Unrealized gains on derivative instruments — 6.0 — — 6.0 Depreciation and amortization — 15.5 0.6 — 16.1 Selling, general, administrative, research and development: Selling, general, administrative, research and development 2.4 40.2 4.8 (1.1 ) 46.3 Net periodic postretirement benefit cost relating to VEBAs — 1.2 — — 1.2 Loss on removal of Union VEBA net assets — 493.8 — — 493.8 Total selling, general, administrative, research and development 2.4 535.2 4.8 (1.1 ) 541.3 Total costs and expenses 2.4 1,142.5 65.9 (50.3 ) 1,160.5 Operating (loss) income (2.4 ) (420.8 ) 2.3 (0.7 ) (421.6 ) Other (expense) income: Interest (expense) income (14.4 ) (0.8 ) — 0.2 (15.0 ) Other income (expense), net — 0.8 0.2 (0.2 ) 0.8 (Loss) income before income taxes (16.8 ) (420.8 ) 2.5 (0.7 ) (435.8 ) Income tax benefit — 156.1 1.4 6.3 163.8 (Loss) earnings in equity of subsidiaries (255.2 ) 3.2 — 252.0 — Net (loss) income $ (272.0 ) $ (261.5 ) $ 3.9 $ 257.6 $ (272.0 ) Comprehensive (loss) income $ (204.7 ) $ (194.3 ) $ 4.0 $ 190.3 $ (204.7 ) CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Quarter Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 335.7 $ 34.0 $ (25.6 ) $ 344.1 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 270.8 29.7 (25.0 ) 275.5 Unrealized gains on derivative instruments — (1.6 ) — — (1.6 ) Depreciation and amortization — 7.5 0.2 — 7.7 Selling, general, administrative, research and development: Selling, general, administrative, research and development 1.2 18.5 2.9 (0.6 ) 22.0 Net periodic postretirement benefit income relating to VEBAs — (6.1 ) — — (6.1 ) Total selling, general, administrative, research and development 1.2 12.4 2.9 (0.6 ) 15.9 Other operating charges, net — 0.2 — — 0.2 Total costs and expenses 1.2 289.3 32.8 (25.6 ) 297.7 Operating (loss) income (1.2 ) 46.4 1.2 — 46.4 Other (expense) income: Interest expense (9.3 ) — — 0.1 (9.2 ) Other income, net 0.4 0.8 0.7 (0.1 ) 1.8 (Loss) income before income taxes (10.1 ) 47.2 1.9 — 39.0 Income tax (provision) benefit — (17.8 ) (0.5 ) 3.8 (14.5 ) Earnings in equity of subsidiaries 34.6 1.4 — (36.0 ) — Net income $ 24.5 $ 30.8 $ 1.4 $ (32.2 ) $ 24.5 Comprehensive income $ 26.6 $ 33.0 $ 1.3 $ (34.3 ) $ 26.6 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Six Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 662.8 $ 67.1 $ (50.7 ) $ 679.2 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 549.7 58.1 (49.4 ) 558.4 Unrealized gains on derivative instruments — (3.6 ) — — (3.6 ) Depreciation and amortization — 14.6 0.5 — 15.1 Selling, general, administrative, research and development: Selling, general, administrative, research and development 2.2 35.1 6.2 (1.2 ) 42.3 Net periodic postretirement benefit income relating to VEBAs — (11.7 ) — — (11.7 ) Total selling, general, administrative, research and development 2.2 23.4 6.2 (1.2 ) 30.6 Other operating charges, net — 0.2 — — 0.2 Total costs and expenses 2.2 584.3 64.8 (50.6 ) 600.7 Operating (loss) income (2.2 ) 78.5 2.3 (0.1 ) 78.5 Other (expense) income: Interest (expense) income (18.6 ) 0.4 — 0.2 (18.0 ) Other income, net 1.4 2.0 0.5 (0.2 ) 3.7 (Loss) income before income taxes (19.4 ) 80.9 2.8 (0.1 ) 64.2 Income tax (provision) benefit — (30.4 ) (0.8 ) 7.3 (23.9 ) Earnings in equity of subsidiaries 59.7 1.8 — (61.5 ) — Net income $ 40.3 $ 52.3 $ 2.0 $ (54.3 ) $ 40.3 Comprehensive income $ 43.3 $ 55.2 $ 2.1 $ (57.3 ) $ 43.3 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Six Months Ended June 30, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 233.4 $ (190.1 ) $ 5.0 $ — $ 48.3 Cash flows from investing activities: Capital expenditures — (14.3 ) (8.6 ) — (22.9 ) Purchase of available for sale securities — (0.5 ) — — (0.5 ) Proceeds from disposition of available for sale securities — 84.0 — — 84.0 Net cash provided by (used in) investing activities — 69.2 (8.6 ) — 60.6 Cash flows from financing activities: Repayment of Convertible Notes (175.0 ) — — — (175.0 ) Proceeds from cash-settled call options related to repayment of Convertible Notes 94.9 — — — 94.9 Payment for conversion premium related to repayment of Convertible Notes (94.9 ) — — — (94.9 ) Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest — 1.1 — — 1.1 Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares (3.0 ) — — — (3.0 ) Repurchase of common stock (41.4 ) — — — (41.4 ) Cash dividend paid to stockholders (14.0 ) — — — (14.0 ) Intercompany loan — (5.7 ) 5.7 — — Net cash (used in) provided by financing activities (233.4 ) (4.6 ) 5.7 — (232.3 ) Net (decrease) increase in cash and cash equivalents during the period — (125.5 ) 2.1 — (123.4 ) Cash and cash equivalents at beginning of period — 175.3 2.4 — 177.7 Cash and cash equivalents at end of period $ — $ 49.8 $ 4.5 $ — $ 54.3 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Six Months Ended June 30, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by operating activities $ 7.6 $ 56.9 $ 6.8 $ — $ 71.3 Cash flows from investing activities: Capital expenditures — (29.4 ) (0.7 ) — (30.1 ) Purchase of available for sale securities — (23.4 ) — — (23.4 ) Proceeds from disposition of available for sale securities — 25.0 — — 25.0 Net cash used in investing activities — (27.8 ) (0.7 ) — (28.5 ) Cash flows from financing activities: Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest — 0.8 — — 0.8 Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares (2.4 ) — — — (2.4 ) Repurchase of common stock (23.7 ) — — — (23.7 ) Cash dividend paid to stockholders (12.8 ) — — — (12.8 ) Intercompany loan 31.3 (22.9 ) (8.4 ) — — Net cash used in financing activities (7.6 ) (22.1 ) (8.4 ) — (38.1 ) Net increase (decrease) in cash and cash equivalents during the period — 7.0 (2.3 ) — 4.7 Cash and cash equivalents at beginning of period 5.0 157.7 6.8 — 169.5 Cash and cash equivalents at end of period $ 5.0 $ 164.7 $ 4.5 $ — $ 174.2 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies, Textuals (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Significant accounting policies | ||
Percentage of Employees Covered by Collective Bargaining Agreements | 63.00% | |
Percentage of Employees Covered by Collective Bargaining Agreements Expiring Within One Year | 0.00% | |
Fabricated Products | ||
Significant accounting policies | ||
Excess of current cost over the stated LIFO value of inventory | $ 10.2 | $ 37.6 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies, Textuals, Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment | ||||
Interest expense capitalized as construction in progress | $ 0.4 | $ 0.8 | $ 0.7 | $ 1.9 |
Depreciation expense | 15.3 | 14.3 | ||
Fabricated Products | ||||
Property, Plant and Equipment | ||||
Depreciation expense | $ 7.6 | $ 7.3 | $ 15.1 | $ 14.1 |
Supplemental Balance Sheet In41
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents | ||
Cash and money market funds | $ 42.3 | $ 29.5 |
Commercial paper | 12 | 148.2 |
Total | 54.3 | 177.7 |
Trade Receivables – Net | ||
Trade receivables, gross | 139.4 | 130.1 |
Allowance for doubtful receivables | (0.8) | (0.8) |
Trade receivables – net | 138.6 | 129.3 |
Inventories | ||
Finished products | 64.6 | 73.6 |
Work-in-process | 70.2 | 66.7 |
Raw materials | 60.4 | 54.2 |
Operating supplies and repair and maintenance parts | 22.1 | 20.2 |
Total | 217.3 | 214.7 |
Prepaid Expenses and Other Current Assets | ||
Current derivative assets – Notes 8 and 9 | 0.3 | 85.7 |
Current deferred tax assets | 92.2 | 86.4 |
Short-term restricted cash | 0.3 | 0.3 |
Prepaid taxes | 2 | 0 |
Other | 5.6 | 6.2 |
Total | 100.4 | 178.6 |
Property, Plant and Equipment – Net | ||
Land and improvements | 22.7 | 22.9 |
Buildings and leasehold improvements | 64.1 | 63.8 |
Machinery and equipment | 523.2 | 509.8 |
Construction in progress | 36.1 | 25.2 |
Property, plant and equipment – gross | 646.1 | 621.7 |
Accumulated depreciation | (181.9) | (166.8) |
Assets held for sale | 0.3 | 0 |
Property, plant and equipment – net | 464.5 | 454.9 |
Other Assets | ||
Restricted cash | 10.4 | 10 |
Deferred financing costs | 5 | 5.9 |
Deferred compensation plan assets | 7.6 | 7.3 |
Other | 0.1 | 0.1 |
Total | 23.1 | 23.3 |
Other Accrued Liabilities | ||
Current derivative liabilities – Notes 8 and 9 | 15.6 | 94.9 |
Uncleared cash disbursements | 5 | 9.1 |
Accrued income taxes and taxes payable | 6.3 | 5.2 |
Accrued annual contribution to VEBAs | 0 | 13.7 |
Accrued contingent contribution to Union VEBA - Note 5 | 17.1 | 0 |
Short-term environmental accruals – Note 7 | 2.2 | 2.3 |
Accrued interest | 1.7 | 3.7 |
Short-term deferred revenue | 0.2 | 0.2 |
Other | 3.5 | 3.7 |
Total | 51.6 | 132.8 |
Long-Term Liabilities | ||
Derivative liabilities – Notes 8 and 9 | 2 | 1.9 |
Income tax liabilities | 0.7 | 2.4 |
Workers’ compensation accruals | 20.7 | 21.5 |
Long-term environmental accruals – Note 7 | 17.3 | 17 |
Long-term asset retirement obligations | 4.7 | 4.4 |
Deferred compensation liabilities | 7.8 | 7.2 |
Long-term deferred revenue | 0.4 | 0.5 |
Long-term capital leases | 0.1 | 0.1 |
Long-term portion of contingent contribution to Union VEBA – Note 5 | 29.9 | 0 |
Other long-term liabilities | 3.2 | 3.3 |
Total | 86.8 | 58.3 |
Billed | ||
Trade Receivables – Net | ||
Trade receivables, gross | 138.6 | 128.7 |
Unbilled | ||
Trade Receivables – Net | ||
Trade receivables, gross | $ 0.8 | $ 1.4 |
Long-Term Debt and Credit Fac42
Long-Term Debt and Credit Facility, Textuals (Details) - USD ($) $ / shares in Units, shares in Millions | Jul. 01, 2015 | Apr. 01, 2015 | May. 23, 2012 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Mar. 29, 2010 |
Long-term debt | |||||||||
Debt Instrument, Unamortized Discount | $ 2,500,000 | ||||||||
Derivative Asset | $ 300,000 | $ 300,000 | $ 85,700,000 | ||||||
Payment of quarterly cash dividends | $ 0.80 | $ 0.70 | |||||||
Warrant Transactions | |||||||||
Long-term debt | |||||||||
Common stock sold related to option counterparties net-share-settled warrants | 3.7 | 3.7 | |||||||
Exercise price per share of Warrants | $ 60.44 | $ 60.44 | |||||||
Senior Notes | |||||||||
Long-term debt | |||||||||
Principal amount of notes | $ 225,000,000 | ||||||||
Interest rate | 8.25% | ||||||||
Percentage of principal amount issued | 100.00% | ||||||||
Interest expense including amortization of deferred financing costs | $ 4,900,000 | $ 4,900,000 | $ 9,700,000 | $ 9,700,000 | |||||
Revolving Credit Facility | |||||||||
Line of Credit Facility | |||||||||
Maximum borrowing capacity | 300,000,000 | 300,000,000 | |||||||
Available borrowing capacity | 274,700,000 | 274,700,000 | |||||||
Remaining available borrowing capacity | $ 267,100,000 | $ 267,100,000 | |||||||
Interest on Revolving Credit Facility | 4.00% | 4.00% | |||||||
Line of Credit | |||||||||
Line of Credit Facility | |||||||||
Outstanding line of credit | $ 0 | $ 0 | |||||||
Letter of Credit | |||||||||
Line of Credit Facility | |||||||||
Outstanding line of credit | $ (7,600,000) | $ (7,600,000) | |||||||
Minimum | |||||||||
Long-term debt | |||||||||
Payment of quarterly cash dividends | $ 0.24 | ||||||||
Convertible Notes | |||||||||
Long-term debt | |||||||||
Principal amount of notes | $ 175,000,000 | ||||||||
Interest rate | 4.50% | ||||||||
Debt Instrument, Redemption Price, Percentage | 154.261% | ||||||||
Consecutive trading days threshold for conversion | 50 days | ||||||||
Short-term Debt, Fair Value | $ 273,800,000 | ||||||||
Debt Instrument, Periodic Payment | 3,900,000 | ||||||||
Principal amount in conversion feature | 175,000,000 | ||||||||
Debt Instrument, Convertible, If-converted Value in Excess of Principal | 94,900,000 | ||||||||
Derivative Asset | 94,900,000 | ||||||||
Net cash outflow in convertible debt settlement | $ 178,900,000 | ||||||||
Subsequent Event [Member] | |||||||||
Long-term debt | |||||||||
Trading days warrants are exercisable | 120 days |
Long-Term Debt and Credit Fac43
Long-Term Debt and Credit Facility, Carrying Amount Table (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Principal amount, carrying amount and interest expense of notes | |||||
Carrying amount, net of discount | $ 172.5 | ||||
Convertible Notes | |||||
Principal amount, carrying amount and interest expense of notes | |||||
Contractual coupon interest | $ 0 | $ 1.9 | $ 2 | $ 3.9 | |
Amortization of discount | 0 | 2.3 | 2.4 | 4.4 | |
Amortization of deferred financing costs | 0 | 0.3 | 0.3 | 0.6 | |
Total interest expense | $ 0 | $ 4.5 | $ 4.7 | $ 8.9 |
Income Tax Matters, Provision T
Income Tax Matters, Provision Table (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Tax Provision | ||||
Domestic | $ 13.4 | $ 13.9 | $ (162.4) | $ 23 |
Foreign | (1.4) | 0.6 | (1.4) | 0.9 |
Total | $ 12 | $ 14.5 | $ (163.8) | $ 23.9 |
Income Tax Matters, Textuals (D
Income Tax Matters, Textuals (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Contingency | ||||||
Income tax provision | $ 12 | $ 14.5 | $ (163.8) | $ 23.9 | ||
Effective tax rate | 37.20% | 37.00% | 37.60% | 37.20% | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 1.9 | |||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | 5.80% | |||||
Tax Adjustments, Settlements, and Unusual Provisions | $ (1.8) | |||||
Effective Income Tax Rate Reconciliation, Tax Contingency, Foreign, Percent | (5.40%) | |||||
Refund adjustment from settlement | $ (9.3) | $ (9.3) | ||||
Effective Income Tax Rate Reconciliation, Amount expected to be received in the next 12 months | (1.1) | |||||
Gross unrecognized tax benefits | 1.6 | 1.6 | $ 2.2 | |||
Gross unrecognized tax benefits that would impact effective tax rate | 0.5 | $ 0.5 | $ 1.1 | |||
Audit & Advanced Pricing Agreement | ||||||
Income Tax Contingency | ||||||
Refund adjustment from settlement | $ 10.4 | |||||
Union VEBA | ||||||
Income Tax Contingency | ||||||
Income tax benefit on removal of Union VEBA net assets | $ 184.4 |
Employee Benefits, Defined Bene
Employee Benefits, Defined Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
VEBA Postretirement Medical Obligations | ||||
Accrued annual contribution to VEBAs | $ 0 | $ 0 | $ 13.7 | |
VEBAs | ||||
VEBA Postretirement Medical Obligations | ||||
Cash flow in determining VEBA obligation | 20 | |||
VEBAs | Maximum | ||||
VEBA Postretirement Medical Obligations | ||||
Administrative expenses of the VEBAs | 0.3 | $ 0.3 | ||
Union VEBA | ||||
VEBA Postretirement Medical Obligations | ||||
Percent allocation of total contribution between VEBAs | 85.50% | |||
Accrued Veba contingent contribution - total | 47 | $ 47 | ||
Defined Benefit Plan, Benefit Obligation | 391.5 | |||
Defined Benefit Plan, Fair Value of Plan Assets | 731.6 | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | 307.8 | |||
Income Tax Expense (Benefit) | 184.4 | |||
Salaried VEBA | ||||
VEBA Postretirement Medical Obligations | ||||
Percent allocation of total contribution between VEBAs | 14.50% | |||
Variable cash contribution | VEBAs | ||||
VEBA Postretirement Medical Obligations | ||||
Accrued annual contribution to VEBAs | $ 13.7 | $ 16 | ||
Variable cash contribution | VEBAs | Maximum | ||||
VEBA Postretirement Medical Obligations | ||||
Variable cash contribution obligation to VEBAs | $ 20 | $ 20 | ||
Variable cash contribution | VEBAs | Annual Cash Flows up to $20 Million | ||||
VEBA Postretirement Medical Obligations | ||||
Postretirement medical plan contribution obligation percentage | 10.00% | |||
Variable cash contribution | VEBAs | Annual Cash Flows in Excess of $20 Million | ||||
VEBA Postretirement Medical Obligations | ||||
Postretirement medical plan contribution obligation percentage | 20.00% |
Employee Benefits, Net Periodic
Employee Benefits, Net Periodic Benefit Costs and Charges Relating To All Other Employee Benefit Plans(Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
VEBAs: | ||||
Total net periodic postretirement benefit cost (income) relating to VEBAs | $ 0.6 | $ (6.1) | $ 1.2 | $ (11.7) |
Pre-tax loss on settlement of Union VEBA | 0 | |||
Deferred compensation plan | 0.1 | 0.4 | 0.5 | 0.6 |
Defined contribution plans | 1.7 | 1.5 | 5.7 | 5.5 |
Multiemployer pension plans | 0.9 | 0.9 | 1.8 | 1.8 |
Charges Relating To Other Benefit Plans | 2.7 | 2.8 | 8 | 7.9 |
Total other employee benefit plans | 4.9 | (3.3) | 503 | (3.8) |
Fabricated Products | ||||
VEBAs: | ||||
Total other employee benefit plans | 2.4 | 2.3 | 7 | 6.9 |
All Other | ||||
VEBAs: | ||||
Total other employee benefit plans | 2.5 | (5.6) | 496 | (10.7) |
VEBAs | ||||
VEBAs: | ||||
Service cost1 | 0 | 0.5 | 0 | 1.1 |
Interest cost | 0.7 | 4.2 | 1.4 | 8.3 |
Expected return on plan assets | (1.1) | (12.8) | (2.2) | (25.6) |
Amortization of prior service cost | 0.8 | 2.6 | 1.5 | 5.4 |
Amortization of net actuarial loss (gain) | 0.2 | (0.6) | 0.5 | (0.9) |
Total net periodic postretirement benefit cost (income) relating to VEBAs | 0.6 | (6.1) | 1.2 | (11.7) |
Pre-tax loss on settlement of Union VEBA | 1.6 | 0 | 493.8 | 0 |
Total Charges Relating To VEBAs | $ 2.2 | $ (6.1) | $ 495 | $ (11.7) |
Employee Incentive Plans, Short
Employee Incentive Plans, Short Term Incentive Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Compensation charges associated with STI Plans | ||||
Costs recorded in connection with STI plans | $ 4.6 | $ 4.6 | $ 7.9 | $ 7 |
Fabricated Products | ||||
Compensation charges associated with STI Plans | ||||
Costs recorded in connection with STI plans | 3.1 | 3.5 | 5.5 | 5.4 |
All Other | ||||
Compensation charges associated with STI Plans | ||||
Costs recorded in connection with STI plans | 1.5 | 1.1 | 2.4 | 1.6 |
Cost of products sold, excluding depreciation and amortization and other items | ||||
Compensation charges associated with STI Plans | ||||
Costs recorded in connection with STI plans | 1.4 | 1.4 | 2.2 | 2.5 |
Selling, general, administrative, research and development | ||||
Compensation charges associated with STI Plans | ||||
Costs recorded in connection with STI plans | $ 3.2 | $ 3.2 | $ 5.7 | $ 4.5 |
Employee Incentive Plans, Long
Employee Incentive Plans, Long term Incentive Plans (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Number of common shares authorized for issuance under Equity Incentive Plan | 2,722,222 | 2,722,222 | |||
Number of common shares available for additional awards under Equity Incentive Plan | 706,471 | 706,471 | |||
Non-cash compensation expense | $ 2.4 | $ 2.3 | $ 4.6 | $ 4.3 | |
Stock Options | |||||
Fully-vested options outstanding | 16,645 | 16,645 | 16,645 | ||
Exercise price of options to purchase common stock | $ 80.01 | $ 80.01 | $ 80.01 | ||
Remaining contractual life of options outstanding | 1 year 9 months | 2 years 3 months | |||
Grant date fair value of options outstanding | $ 39.90 | $ 39.90 | |||
Stock options granted | 0 | ||||
Stock options forfeited | 0 | ||||
Stock options exercised | 0 | ||||
Vested Stock | |||||
Issuance of common shares to non-employee directors | $ 0.2 | ||||
Common shares withheld and canceled | 34,969 | 33,006 | |||
Fabricated Products | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Non-cash compensation expense | $ 0.9 | 1.1 | $ 1.6 | $ 2.1 | |
All Other | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Non-cash compensation expense | $ 1.5 | 1.2 | $ 3 | 2.2 | |
Non-vested common shares | |||||
Summary of Activity | |||||
Outstanding at December 31, 2014 | 158,770 | ||||
Weighted-Average Grant-Date Fair Value per Share | $ 59.88 | ||||
Granted, shares | 62,285 | ||||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 71.67 | ||||
Vested, shares | (57,849) | ||||
Vested, Weighted-Average Grant-Date Fair Value per Share | $ 52.68 | ||||
Forfeited, shares | (540) | ||||
Forfeited, Weighted-Average Grant-Date Fair Value per Share | $ 66.89 | ||||
Canceled, Shares | 0 | ||||
Canceled, Weighted-Average Grant-Date Fair Value per Share | $ 0 | ||||
Outstanding at June 30, 2015 | 162,666 | 162,666 | 158,770 | ||
Weighted-Average Grant-Date Fair Value per Share | $ 66.93 | $ 66.93 | $ 59.88 | ||
Restricted stock units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Number of common shares received by the employee on vesting of restricted stock unit | 1 | ||||
Summary of Activity | |||||
Outstanding at December 31, 2014 | 5,357 | ||||
Weighted-Average Grant-Date Fair Value per Share | $ 59.71 | ||||
Granted, shares | 2,325 | ||||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 69.83 | ||||
Vested, shares | (2,161) | ||||
Vested, Weighted-Average Grant-Date Fair Value per Share | $ 52.91 | ||||
Forfeited, shares | 0 | ||||
Forfeited, Weighted-Average Grant-Date Fair Value per Share | $ 0 | ||||
Canceled, Shares | 0 | ||||
Canceled, Weighted-Average Grant-Date Fair Value per Share | $ 0 | ||||
Outstanding at June 30, 2015 | 5,521 | 5,521 | 5,357 | ||
Weighted-Average Grant-Date Fair Value per Share | $ 66.64 | $ 66.64 | $ 59.71 | ||
Non-vested common shares and restricted stock units | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Non-cash compensation expense | $ 1.1 | 1.2 | $ 2.2 | 2.3 | |
Unrecognized gross compensation costs (in millions of dollars) | 8 | $ 8 | |||
Expected period (in years) over which the remaining gross compensation costs will be recognized | 2 years 2 months | ||||
EVA-Based Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Performance award vesting period, years | 3 years | ||||
Non-cash compensation expense | 0.3 | 0.5 | $ 0.7 | 1 | |
Unrecognized gross compensation costs (in millions of dollars) | $ 0.9 | $ 0.9 | |||
Expected period (in years) over which the remaining gross compensation costs will be recognized | 8 months | ||||
Summary of Activity | |||||
Outstanding at December 31, 2014 | 353,576 | ||||
Weighted-Average Grant-Date Fair Value per Share | $ 50.35 | ||||
Granted, shares | 0 | ||||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 0 | ||||
Vested, shares | (48,648) | ||||
Vested, Weighted-Average Grant-Date Fair Value per Share | $ 44.48 | ||||
Forfeited, shares | (432) | ||||
Forfeited, Weighted-Average Grant-Date Fair Value per Share | $ 57.54 | ||||
Canceled, Shares | (146,016) | ||||
Canceled, Weighted-Average Grant-Date Fair Value per Share | $ 44.48 | ||||
Outstanding at June 30, 2015 | 158,480 | 158,480 | 353,576 | ||
Weighted-Average Grant-Date Fair Value per Share | $ 57.75 | $ 57.75 | $ 50.35 | ||
TSR-Based Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Non-cash compensation expense | $ 1 | $ 0.6 | $ 1.7 | $ 1 | |
Unrecognized gross compensation costs (in millions of dollars) | $ 9.9 | $ 9.9 | |||
Expected period (in years) over which the remaining gross compensation costs will be recognized | 2 years 5 months | ||||
Summary of Activity | |||||
Outstanding at December 31, 2014 | 150,223 | ||||
Weighted-Average Grant-Date Fair Value per Share | $ 83.18 | ||||
Granted, shares | 150,424 | ||||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 95.68 | ||||
Vested, shares | 0 | ||||
Vested, Weighted-Average Grant-Date Fair Value per Share | $ 0 | ||||
Forfeited, shares | (404) | ||||
Forfeited, Weighted-Average Grant-Date Fair Value per Share | $ 83.18 | ||||
Canceled, Shares | 0 | ||||
Canceled, Weighted-Average Grant-Date Fair Value per Share | $ 0 | ||||
Outstanding at June 30, 2015 | 300,243 | 300,243 | 150,223 | ||
Weighted-Average Grant-Date Fair Value per Share | $ 89.44 | $ 89.44 | $ 83.18 | ||
Minimum | EVA-Based Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||||
Minimum | TSR-Based Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||||
Maximum | EVA-Based Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | ||||
Maximum | TSR-Based Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% |
Commitments and Contingencies C
Commitments and Contingencies Contractual Obligations (Details) $ in Millions | Jun. 30, 2015USD ($) |
Long-term Purchase Commitment [Line Items] | |
Purchase Obligation | $ 33.3 |
Equipment [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase Obligation | 7.1 |
Raw Materials [Member] | |
Long-term Purchase Commitment [Line Items] | |
Purchase Obligation | $ 26.2 |
Commitments and Contingencies,
Commitments and Contingencies, Environmental (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Environmental Contingency | |
Environmental accrual | $ 19.5 |
Expected period related to remediation expenditures for environmental contingencies period | 30 years |
Potential increase in environmental costs | $ 25.1 |
Minimum | |
Environmental Contingency | |
Period for final feasibility study | 18 months |
Maximum | |
Environmental Contingency | |
Period for final feasibility study | 24 months |
Derivative Financial Instrume52
Derivative Financial Instruments and Related Hedging Programs, Hedging Discussion (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)mmlbs | Jun. 30, 2014USD ($)mmlbs | Jun. 30, 2015EUR (€)mmlbs | Jun. 30, 2015USD ($)mmlbs | Dec. 31, 2014USD ($) | Mar. 29, 2010USD ($) | |
Derivative [Line Items] | ||||||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 0 | |||||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 0 | |||||||
Unrealized loss on foreign currency cash flow hedges | $ (0.2) | $ 0 | $ (0.2) | $ 0 | ||||
Derivative Financial Instruments and Related Hedging Programs (Textuals) [Abstract] | ||||||||
Aggregate fair value of derivative instruments that contain credit-risk-related contingency features that were in a net liability position | $ 15.7 | $ 11.4 | ||||||
Total fabricated products shipments containing fixed price terms | mmlbs | 91.5 | 68.5 | ||||||
Remainder of 2015 | ||||||||
Derivative Financial Instruments and Related Hedging Programs (Textuals) [Abstract] | ||||||||
Firm price customer sales contracts containing price risk on anticipated purchases of primary aluminum | mmlbs | 118.3 | 118.3 | ||||||
2,016 | ||||||||
Derivative Financial Instruments and Related Hedging Programs (Textuals) [Abstract] | ||||||||
Firm price customer sales contracts containing price risk on anticipated purchases of primary aluminum | mmlbs | 16.7 | 16.7 | ||||||
Convertible Notes | ||||||||
Derivative Financial Instruments and Related Hedging Programs (Textuals) [Abstract] | ||||||||
Principal amount of notes | $ 175 | |||||||
Swap [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Member | Purchase | ||||||||
Derivative [Line Items] | ||||||||
Derivative Liability, Notional Amount | € | € 8,135,000 | |||||||
Derivative, Average Forward Exchange Rate | 1.14 | 1.14 | ||||||
Minimum | Swap [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Member | Purchase | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Remaining Maturity | 1 month | |||||||
Maximum | Swap [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Member | Purchase | ||||||||
Derivative [Line Items] | ||||||||
Derivative, Remaining Maturity | 18 months |
Derivative Financial Instrume53
Derivative Financial Instruments and Related Hedging Programs, Realized and Unrealized Gains (Losses) Table (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary Of Realized And Unrealized Gains (Losses) | ||||
Unrealized gains (losses) | $ (6) | $ 4.9 | ||
Not Designated as Hedging Instrument | ||||
Summary Of Realized And Unrealized Gains (Losses) | ||||
Unrealized gains (losses) | $ (1.5) | $ 2 | (6) | 4.9 |
Operational Risk Hedges | Not Designated as Hedging Instrument | ||||
Summary Of Realized And Unrealized Gains (Losses) | ||||
Realized (losses) gains | (8.8) | 1.3 | (13.5) | 3.3 |
Unrealized gains (losses) | (1.5) | 1.5 | (6) | 3.5 |
Foreign Currency Member | Operational Risk Hedges | Designated as Hedging Instrument [Member] | ||||
Summary Of Realized And Unrealized Gains (Losses) | ||||
Unrealized gains (losses) | (0.2) | 0 | (0.2) | 0 |
Foreign Currency Member | Operational Risk Hedges | Not Designated as Hedging Instrument | ||||
Summary Of Realized And Unrealized Gains (Losses) | ||||
Unrealized gains (losses) | 0 | (0.1) | 0 | (0.1) |
Aluminum | Operational Risk Hedges | Not Designated as Hedging Instrument | ||||
Summary Of Realized And Unrealized Gains (Losses) | ||||
Realized (losses) gains | (7.1) | 1.3 | (9.8) | 2.1 |
Unrealized gains (losses) | (4.3) | 0.6 | (8.5) | 2.3 |
Natural Gas | Operational Risk Hedges | Not Designated as Hedging Instrument | ||||
Summary Of Realized And Unrealized Gains (Losses) | ||||
Realized (losses) gains | (1.3) | 0.5 | (2.6) | 1.2 |
Unrealized gains (losses) | 1.5 | (0.2) | 0.8 | 0.6 |
Electricity | Operational Risk Hedges | Not Designated as Hedging Instrument | ||||
Summary Of Realized And Unrealized Gains (Losses) | ||||
Realized (losses) gains | (0.4) | (0.5) | (1.1) | 0 |
Unrealized gains (losses) | 1.3 | 1.2 | 1.7 | 0.7 |
Hedges Relating To Notes Member | Call Options | Not Designated as Hedging Instrument | ||||
Summary Of Realized And Unrealized Gains (Losses) | ||||
Unrealized gains (losses) | 0 | 2.5 | 10.2 | 6.9 |
Hedges Relating To Notes Member | Bifurcated Conversion Feature | Not Designated as Hedging Instrument | ||||
Summary Of Realized And Unrealized Gains (Losses) | ||||
Unrealized gains (losses) | $ 0 | $ (2) | $ (10.2) | $ (5.5) |
Derivative Financial Instrume54
Derivative Financial Instruments and Related Hedging Programs, Notional Quantity Table (Details) - Jun. 30, 2015 | EUR (€)mmlbsMMBTUMWH |
Remainder of 2015 | |
Summary of material derivative positions | |
Percentage of natural gas purchases for which the Company's exposure to fluctuations in gas prices had been substantially reduced | 79.00% |
Percentage of Electricity Purchases For Which Company Exposure To Fluctuations In Electricity Prices Have Been Reduced | 54.00% |
2,016 | |
Summary of material derivative positions | |
Percentage of natural gas purchases for which the Company's exposure to fluctuations in gas prices had been substantially reduced | 75.00% |
Percentage of Electricity Purchases For Which Company Exposure To Fluctuations In Electricity Prices Have Been Reduced | 54.00% |
2,017 | |
Summary of material derivative positions | |
Percentage of natural gas purchases for which the Company's exposure to fluctuations in gas prices had been substantially reduced | 34.00% |
Percentage of Electricity Purchases For Which Company Exposure To Fluctuations In Electricity Prices Have Been Reduced | 36.00% |
Not Designated as Hedging Instrument | Electricity Member | Fixed priced contracts | Purchase | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | MWH | 88,340 |
Not Designated as Hedging Instrument | Aluminum | Fixed priced contracts | Purchase | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 117.1 |
Not Designated as Hedging Instrument | Aluminum | Fixed priced contracts | Sales | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 0.9 |
Not Designated as Hedging Instrument | Aluminum | Midwest premium swap contracts | Purchase | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | 93.2 |
Not Designated as Hedging Instrument | Natural Gas | Fixed priced contracts | Purchase | |
Derivative [Line Items] | |
Derivative, Nonmonetary Notional Amount | MMBTU | 6,160,000 |
Designated as Hedging Instrument [Member] | Foreign Currency Member | Fixed priced contracts | Purchase | |
Summary of material derivative positions | |
Notional amount of contracts | € | € 8,135,000 |
Derivative Financial Instrume55
Derivative Financial Instruments and Related Hedging Programs, Offsetting of Derivative Instruments by Counterparty (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Derivative Assets and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Assets | $ 0.3 | $ 85.7 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 0.3 | 85.7 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0.3 | 0.8 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 84.9 |
Derivative Liabilities and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Liabilities | (17.6) | (96.8) |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | (17.6) | (96.8) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | (0.3) | (0.8) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | (17.3) | (96) |
Counterparty (with Netting Agreements) | ||
Derivative Assets and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Assets | 0.2 | 0.9 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 0.2 | 0.9 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0.2 | 0.8 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0.1 |
Derivative Liabilities and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Liabilities | (9.5) | (8) |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | (9.5) | (8) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | (0.2) | (0.8) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | (9.3) | (7.2) |
Counterparty (without Netting Agreements) | ||
Derivative Assets and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Assets | 84.8 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 84.8 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | |
Net Amount | 84.8 | |
Derivative Liabilities and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Liabilities | (1.6) | (85) |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | (1.6) | (85) |
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 | (1.6) | (85) |
Counterparty (with partial Netting Agreements) | ||
Derivative Assets and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Assets | 0.1 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 0.1 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0.1 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | |
Net Amount | 0 | |
Derivative Liabilities and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Liabilities | (6.5) | (3.8) |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | (6.5) | (3.8) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | (0.1) | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | $ (6.4) | $ (3.8) |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements, Textual (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Derivative Asset | $ 0.3 | $ 85.7 |
Minimum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term investment maturity period | 8 months | |
Maximum | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Short-term investment maturity period | 10 months | |
Derivative | ||
Debt Instrument, Fair Value Disclosure [Abstract] | ||
Fair Value, Net Asset (Liability) | $ (17.3) | $ (11.1) |
Fair Value Measurements, Fair V
Fair Value Measurements, Fair Value Hierarchy Table (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Financial Assets: | ||
Derivative Asset | $ 0.3 | $ 85.7 |
Deferred compensation plan assets | 7.6 | 7.3 |
Financial Liabilities: | ||
Derivative Liability | (17.6) | (96.8) |
Recurring | ||
Financial Assets: | ||
Cash and cash equivalents | 54.3 | 177.7 |
Deferred compensation plan assets | 7.6 | 7.3 |
Total Assets | 92.2 | 384.7 |
Financial Liabilities: | ||
Convertible Notes | (263.3) | |
Total Liabilities | (261.3) | (604.6) |
Recurring | Senior Notes | ||
Financial Liabilities: | ||
Senior Notes | (243.7) | (244.5) |
Recurring | Debt securities | ||
Financial Assets: | ||
Short-term investments | 30 | 114 |
Recurring | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 42.3 | 29.5 |
Deferred compensation plan assets | 0 | 0 |
Total Assets | 42.3 | 29.5 |
Financial Liabilities: | ||
Convertible Notes | (263.3) | |
Total Liabilities | (243.7) | (507.8) |
Recurring | Level 1 | Senior Notes | ||
Financial Liabilities: | ||
Senior Notes | (243.7) | (244.5) |
Recurring | Level 1 | Debt securities | ||
Financial Assets: | ||
Short-term investments | 0 | 0 |
Recurring | Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents | 12 | 148.2 |
Deferred compensation plan assets | 7.6 | 7.3 |
Total Assets | 49.9 | 354.2 |
Financial Liabilities: | ||
Convertible Notes | 0 | |
Total Liabilities | (13.3) | (96.8) |
Recurring | Level 2 | Senior Notes | ||
Financial Liabilities: | ||
Senior Notes | 0 | 0 |
Recurring | Level 2 | Debt securities | ||
Financial Assets: | ||
Short-term investments | 30 | 114 |
Recurring | Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deferred compensation plan assets | 0 | 0 |
Total Assets | 0 | 1 |
Financial Liabilities: | ||
Convertible Notes | 0 | |
Total Liabilities | (4.3) | 0 |
Recurring | Level 3 | Senior Notes | ||
Financial Liabilities: | ||
Senior Notes | 0 | 0 |
Recurring | Level 3 | Debt securities | ||
Financial Assets: | ||
Short-term investments | 0 | 0 |
Not Designated as Hedging Instrument | Recurring | Aluminum | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.1 | |
Financial Liabilities: | ||
Derivative Liability | (7.5) | (4.2) |
Not Designated as Hedging Instrument | Recurring | Aluminum | Midwest premium swap contracts | ||
Financial Assets: | ||
Derivative Asset | 1 | |
Financial Liabilities: | ||
Derivative Liability | (4.3) | |
Not Designated as Hedging Instrument | Recurring | Natural Gas | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | (5.4) | (6.2) |
Not Designated as Hedging Instrument | Recurring | Electricity | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.2 | |
Financial Liabilities: | ||
Derivative Liability | (0.2) | (1.7) |
Not Designated as Hedging Instrument | Recurring | Hedges Relating to the Convertible Notes | Call Options | ||
Financial Assets: | ||
Derivative Asset | 84.7 | |
Not Designated as Hedging Instrument | Recurring | Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature | ||
Financial Liabilities: | ||
Derivative Liability | (84.7) | |
Not Designated as Hedging Instrument | Recurring | Level 1 | Aluminum | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liability | 0 | 0 |
Not Designated as Hedging Instrument | Recurring | Level 1 | Aluminum | Midwest premium swap contracts | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liability | 0 | |
Not Designated as Hedging Instrument | Recurring | Level 1 | Natural Gas | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | 0 | 0 |
Not Designated as Hedging Instrument | Recurring | Level 1 | Electricity | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liability | 0 | 0 |
Not Designated as Hedging Instrument | Recurring | Level 1 | Hedges Relating to the Convertible Notes | Call Options | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Not Designated as Hedging Instrument | Recurring | Level 1 | Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Not Designated as Hedging Instrument | Recurring | Level 2 | Aluminum | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.1 | |
Financial Liabilities: | ||
Derivative Liability | (7.5) | (4.2) |
Not Designated as Hedging Instrument | Recurring | Level 2 | Aluminum | Midwest premium swap contracts | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liability | 0 | |
Not Designated as Hedging Instrument | Recurring | Level 2 | Natural Gas | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | (5.4) | (6.2) |
Not Designated as Hedging Instrument | Recurring | Level 2 | Electricity | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.2 | |
Financial Liabilities: | ||
Derivative Liability | (0.2) | (1.7) |
Not Designated as Hedging Instrument | Recurring | Level 2 | Hedges Relating to the Convertible Notes | Call Options | ||
Financial Assets: | ||
Derivative Asset | 84.7 | |
Not Designated as Hedging Instrument | Recurring | Level 2 | Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature | ||
Financial Liabilities: | ||
Derivative Liability | (84.7) | |
Not Designated as Hedging Instrument | Recurring | Level 3 | Aluminum | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liability | 0 | 0 |
Not Designated as Hedging Instrument | Recurring | Level 3 | Aluminum | Midwest premium swap contracts | ||
Financial Assets: | ||
Derivative Asset | 1 | |
Not Designated as Hedging Instrument | Recurring | Level 3 | Natural Gas | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | 0 | 0 |
Not Designated as Hedging Instrument | Recurring | Level 3 | Electricity | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liability | 0 | 0 |
Not Designated as Hedging Instrument | Recurring | Level 3 | Hedges Relating to the Convertible Notes | Call Options | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Not Designated as Hedging Instrument | Recurring | Level 3 | Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature | ||
Financial Liabilities: | ||
Derivative Liability | $ 0 | |
Designated as Hedging Instrument [Member] | Recurring | Foreign Currency Member | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | (0.2) | |
Designated as Hedging Instrument [Member] | Recurring | Level 1 | Foreign Currency Member | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Designated as Hedging Instrument [Member] | Recurring | Level 2 | Foreign Currency Member | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | (0.2) | |
Designated as Hedging Instrument [Member] | Recurring | Level 3 | Foreign Currency Member | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Income Approach Valuation Technique | Not Designated as Hedging Instrument | Level 3 | Aluminum | Midwest premium swap contracts | ||
Financial Liabilities: | ||
Derivative Liability | $ (4.3) |
Fair Value Measurements, Level
Fair Value Measurements, Level 3 Fair Value Input Reconciliation Table (Details) - Derivative - Midwest premium swap contracts $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Reconciliation of activity for financial instruments classified as Level 3: | |
Balance at December 31, 2014 | $ 1 |
Total realized/unrealized (losses) included in: | |
Cost of goods sold excluding depreciation and amortization and other items and Unrealized losses (gains) on derivative instruments | (3.9) |
Transactions involving Level 3 derivative contracts: | |
Purchases | (4.9) |
Sales | 0 |
Issuances | 0 |
Settlements | 3.5 |
Transactions involving Level 3 derivatives — net | (1.4) |
Transfers in and (or) out of Level 3 valuation hierarchy | 0 |
Balance at June 30, 2015 | (4.3) |
Total (losses) included in Unrealized losses (gains) on derivative instruments, attributable to the change in unrealized gains/losses relating to derivative contracts held at June 30, 2015: | $ (4.4) |
Fair Value Measurements Fair 59
Fair Value Measurements Fair Value Measurements, Schedule of Quantitative Information for Level 3 Derivative Contracts (Details) | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Midwest Premium Swap Beginning Curve Value | $ 0.082 |
Midwest Premium Swap Contracts Ending Curve Value | $ 0.070 |
Earnings Per Share, Calculation
Earnings Per Share, Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Net loss | $ 20.2 | $ 24.5 | $ (272) | $ 40.3 |
Denominator — Weighted-average common shares outstanding (in thousands): | ||||
Basic | 17,006 | 17,841 | 17,233 | 17,889 |
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares | 247 | 112 | 0 | 133 |
Add: dilutive effect of warrants | 939 | 505 | 0 | 490 |
Diluted | 18,192 | 18,458 | 17,233 | 18,512 |
Net income (loss) per common share: | ||||
Basic | $ 1.19 | $ 1.38 | $ (15.78) | $ 2.25 |
Earnings per common share, Diluted: | ||||
Diluted | $ 1.11 | $ 1.33 | $ (15.78) | $ 2.18 |
Earnings Per Share, Textuals (D
Earnings Per Share, Textuals (Details) - USD ($) $ / shares in Units, $ in Millions | Jul. 01, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
Potential dilutive effect of options and Warrants | ||||||
Options outstanding to purchase common shares | 16,645 | 16,645 | 16,645 | |||
Average exercise price per share | $ 80.01 | $ 80.01 | $ 80.01 | |||
Add: dilutive effect of warrants | 939,000 | 505,000 | 0 | 490,000 | ||
Dividends | ||||||
Cash dividends paid | $ 14 | $ 12.8 | ||||
Cash dividends paid per share | $ 0.80 | $ 0.70 | ||||
Treasury Stock, Number of Shares and Restriction Disclosures [Abstract] | ||||||
Repurchase of common stock | 552,454 | 346,781 | ||||
Weighted-average price per share of common stock repurchased | $ 75.21 | $ 69.25 | ||||
Repurchase of common stock, total cost | $ 41.5 | $ 41.5 | $ 24 | |||
Common share amount available for additional share repurchase | $ 131.2 | $ 131.2 | ||||
Warrant Transactions | ||||||
Potential dilutive effect of options and Warrants | ||||||
Number of common shares underlying the Warrants outstanding | 3,700,000 | 3,700,000 | ||||
Average exercise price of common shares underlying Warrants | $ 60.44 | $ 60.44 | ||||
Warrant Transactions | ||||||
Potential dilutive effect of options and Warrants | ||||||
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 | $ 60.89 | $ 60.89 | ||||
Warrants [Member] | ||||||
Potential dilutive effect of options and Warrants | ||||||
Add: dilutive effect of warrants | 939,221 | 505,151 | ||||
Subsequent Event [Member] | ||||||
Potential dilutive effect of options and Warrants | ||||||
Trading days warrants are exercisable | 120 days |
Earnings Per Share, Anti Diluti
Earnings Per Share, Anti Dilution Table (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 64 | 1,059 | 49 |
Options to purchase common shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 21 | 17 | 21 |
Non-vested common shares, restricted stock units and performance shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 43 | 243 | 28 |
Warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 | 799 | 0 |
Segment Information, Textuals (
Segment Information, Textuals (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)productionfacilities | Jun. 30, 2014USD ($) | Dec. 31, 2014 | |
Segment Reporting Information | |||||
Unrealized gains (losses) on derivatives | $ (6) | $ 4.9 | |||
Net periodic postretirement benefit cost relating to Salaried VEBA | $ 0.6 | $ (6.1) | 1.2 | (11.7) | |
Pre-tax loss on settlement of Union VEBA | 0 | ||||
Fabricated Products | |||||
Segment Reporting Information | |||||
Unrealized gains (losses) on derivatives | $ (1.5) | $ 1.5 | $ (6) | $ 3.5 | |
United States | |||||
Segment Reporting Information | |||||
Number of production facilities | productionfacilities | 11 | ||||
Canada | |||||
Segment Reporting Information | |||||
Number of production facilities | productionfacilities | 1 | ||||
Customer Concentration Risk | Largest Customer | Sales Revenue, Net | Fabricated Products | |||||
Segment Reporting Information | |||||
Concentration Risk, Percentage | 25.00% | 27.00% | 26.00% | 27.00% | |
Customer Concentration Risk | Largest Customer | Accounts Receivable | |||||
Segment Reporting Information | |||||
Concentration Risk, Percentage | 20.00% | 10.00% | |||
Customer Concentration Risk | Second Largest Customer | Sales Revenue, Net | Fabricated Products | |||||
Segment Reporting Information | |||||
Concentration Risk, Percentage | 10.00% | 10.00% | |||
Customer Concentration Risk | Second Largest Customer | Accounts Receivable | |||||
Segment Reporting Information | |||||
Concentration Risk, Percentage | 12.00% | ||||
VEBAs | |||||
Segment Reporting Information | |||||
Net periodic postretirement benefit cost relating to Salaried VEBA | $ 0.6 | $ (6.1) | $ 1.2 | $ (11.7) | |
Pre-tax loss on settlement of Union VEBA | $ 1.6 | $ 0 | $ 493.8 | $ 0 |
Segment Information, Financial
Segment Information, Financial Information by Reporting Segment Table (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Net sales: | |||||
Net Sales | $ 367.2 | $ 344.1 | $ 738.9 | $ 679.2 | |
Segment operating (loss) income: | |||||
Operating income (loss) | 37 | 46.4 | (421.6) | 78.5 | |
Interest expense | (5.2) | (9.2) | (15) | (18) | |
Other income, net | 0.4 | 1.8 | 0.8 | 3.7 | |
(Loss) income before income taxes | 32.2 | 39 | (435.8) | 64.2 | |
Non-cash net periodic postretirement benefit cost (income) relating to VEBAs1 | 0.6 | (6.1) | 1.2 | (11.7) | |
Pre-tax loss on settlement of Union VEBA | 0 | ||||
Depreciation and amortization: | |||||
Depreciation and amortization | 8.1 | 7.7 | 16.1 | 15.1 | |
Capital expenditures: | |||||
Capital expenditures | 11.6 | 14.7 | 22.9 | 30.1 | |
Income taxes paid: | |||||
Income taxes paid | 0.6 | 0.4 | 1.6 | 1.1 | |
Assets: | |||||
Assets | 1,251.3 | 1,251.3 | $ 1,743.7 | ||
United States | |||||
Income taxes paid: | |||||
Income taxes paid | 0.2 | 0.1 | 0.3 | 0.2 | |
Canada | |||||
Income taxes paid: | |||||
Income taxes paid | 0.4 | 0.3 | 1.3 | 0.9 | |
Fabricated Products | |||||
Net sales: | |||||
Net Sales | 367.2 | 344.1 | 738.9 | 679.2 | |
Segment operating (loss) income: | |||||
Operating income (loss) | 50.6 | 50.2 | 95.5 | 85.6 | |
Depreciation and amortization: | |||||
Depreciation and amortization | 8 | 7.7 | 15.9 | 14.9 | |
Capital expenditures: | |||||
Capital expenditures | 11.5 | 14.2 | 22.7 | 29.5 | |
Assets: | |||||
Assets | 900.1 | 900.1 | 878.9 | ||
All Other | |||||
Segment operating (loss) income: | |||||
Operating income (loss) | (13.6) | (3.8) | (517.1) | (7.1) | |
Depreciation and amortization: | |||||
Depreciation and amortization | 0.1 | 0 | 0.2 | 0.2 | |
Capital expenditures: | |||||
Capital expenditures | 0.1 | 0.5 | 0.2 | 0.6 | |
Assets: | |||||
Assets | 351.2 | 351.2 | $ 864.8 | ||
VEBAs | |||||
Segment operating (loss) income: | |||||
Non-cash net periodic postretirement benefit cost (income) relating to VEBAs1 | 0.6 | (6.1) | 1.2 | (11.7) | |
Pre-tax loss on settlement of Union VEBA | $ 1.6 | $ 0 | $ 493.8 | $ 0 |
Segment Information, Net Sales
Segment Information, Net Sales by Product Categories (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Sales: | ||||
Net sales | $ 367.2 | $ 344.1 | $ 738.9 | $ 679.2 |
Aero/HS products | ||||
Net Sales: | ||||
Net sales | 181.1 | 173 | 361.4 | 336.6 |
Automotive Extrusions | ||||
Net Sales: | ||||
Net sales | 53.7 | 44.7 | 103.8 | 85.5 |
GE products | ||||
Net Sales: | ||||
Net sales | 112 | 107.3 | 231.1 | 219.5 |
Other products | ||||
Net Sales: | ||||
Net sales | $ 20.4 | $ 19.1 | $ 42.6 | $ 37.6 |
Segment Information, Supply Inf
Segment Information, Supply Information (Details) - Supplier Concentration Risk - Aluminum | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Top five major suppliers | ||||
Concentration Risk | ||||
Concentration Risk, Percentage | 86.00% | 83.00% | 87.00% | 84.00% |
Largest supplier | ||||
Concentration Risk | ||||
Concentration Risk, Percentage | 27.00% | 29.00% | 28.00% | 30.00% |
Second and third largest suppliers | ||||
Concentration Risk | ||||
Concentration Risk, Percentage | 36.00% | 30.00% | 35.00% | 32.00% |
Supplemental Cash Flow Inform67
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Supplemental disclosure of cash flow information: | ||
Interest paid | $ 13.3 | $ 12.1 |
Non-cash investing and financing activities: | ||
Stock repurchases not yet settled (accrued in accounts payable) | 0.1 | 0.3 |
Unpaid purchases of property and equipment | $ 3.8 | $ 1.1 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 0 | $ 0.2 | $ 0.2 | $ 0.5 |
Unrealized gains (losses) on financial derivatives | 0 | 0.5 | 0 | 1.4 |
Realized gains on investments | 0.2 | 0.2 | 0.5 | 0.4 |
All other, net | 0.2 | 0.9 | 0.1 | 1.4 |
Other income, net | $ 0.4 | $ 1.8 | $ 0.8 | $ 3.7 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification adjustments, before tax: | ||||
Amortization of net actuarial (gain) loss, before tax | $ 0.2 | $ (0.6) | $ 0.5 | $ (0.9) |
Amortization of prior service cost, before tax | 0.8 | 2.6 | 1.5 | 5.4 |
Removal of obligation relating to Union VEBA | 0 | 0 | 106.6 | 0 |
Other comprehensive income relating to VEBAs, before tax | 1 | 2 | 108.6 | 4.5 |
Available for sale securities: | ||||
Unrealized gain on available for sale securities, before tax | (0.3) | 0.2 | (0.3) | 0.3 |
Reclassification of unrealized gain upon sale of available for sale securities, before tax | 0.1 | (0.1) | 0.2 | (0.2) |
Other comprehensive income (loss) relating to available for sale securities | (0.2) | 0.1 | (0.1) | 0.1 |
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | (0.2) | 0 | (0.2) | 0 |
Foreign currency translation adjustment, before tax | 0 | (0.1) | 0.1 | 0.1 |
Other Comprehensive Income Cumulative Tax Rate Adjustments Before Tax | 0 | |||
Other comprehensive income, before tax | 0.6 | 2 | 108.4 | 4.7 |
Reclassification adjustments, income tax (expense) benefit: | ||||
Amortization of net actuarial (gain) loss, income tax (expense) benefit | (0.1) | 0.2 | (0.2) | 0.3 |
Amortization of prior service cost, income tax (expense) benefit | (0.3) | (1) | (0.6) | (2) |
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Tax | (40.4) | |||
Other comprehensive income relating to VEBAs, income tax (expense) benefit | (0.4) | (0.8) | (41.2) | (1.7) |
Available for sale securities: | ||||
Unrealized loss on available for sale securities | 0.1 | (0.1) | 0.1 | (0.1) |
Reclassification adjustments, income tax (expense) benefit: | ||||
Reclassification of unrealized gain upon sale of available for sale securities, income tax (expense) benefit | 0 | 0.1 | (0.1) | 0.1 |
Other comprehensive income (loss) relating to available for sale securities, income tax (expense) benefit | 0.1 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | 0.1 | 0.1 | ||
Foreign currency translation adjustment, income tax (expense) benefit | 0 | 0 | 0 | |
Other Comprehensive Income Cumulative Tax Rate Adjustments Tax | 0.9 | |||
Other comprehensive income, Income tax (expense) benefit | (0.2) | 0.1 | (41.1) | (1.7) |
Reclassification adjustments, net of tax: | ||||
Amortization of net actuarial (gain) loss, net of tax | 0.1 | (0.4) | 0.3 | (0.6) |
Amortization of prior service cost, net of tax | 0.5 | 1.6 | 0.9 | 3.4 |
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, Net of Tax | 66.2 | |||
Other comprehensive income relating to VEBAs, net of tax | 0.6 | 1.2 | 67.4 | 2.8 |
Available for sale securities: | ||||
Unrealized gain on available for sale securities, net of tax | (0.2) | 0.1 | (0.2) | 0.2 |
Reclassification adjustments, net of tax: | ||||
Reclassification of unrealized gain upon sale of available for sale securities, net of tax | 0.1 | 0 | 0.1 | (0.1) |
Other comprehensive income (loss) relating to available for sale securities, net of tax | (0.1) | 0.1 | (0.1) | 0.1 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (0.1) | (0.1) | ||
Foreign currency translation adjustment, net of tax | (0.1) | 0.1 | 0.1 | |
Other Comprehensive Income Cumulative Tax Rate Adjustments Net of Tax | 0.9 | |||
Other comprehensive income, net of tax | $ 0.4 | $ 2.1 | $ 67.3 | $ 3 |
Guarantor and Non-Guarantor F70
Guarantor and Non-Guarantor Financial Statements, Textuals (Details) - USD ($) $ in Millions | Jun. 30, 2015 | May. 23, 2012 |
Condensed Financial Statements, Captions | ||
Ownership interest by parent | 100.00% | |
Senior Notes | ||
Condensed Financial Statements, Captions | ||
Principal amount of notes | $ 225 |
Guarantor and Non-Guarantor F71
Guarantor and Non-Guarantor Financial Statements, Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 54.3 | $ 177.7 | $ 174.2 | $ 169.5 |
Short-term investments | 30 | 114 | ||
Receivables: | ||||
Trade receivables — net | 138.6 | 129.3 | ||
Intercompany receivables | 0 | 0 | ||
Other | 5.9 | 10.9 | ||
Inventories | 217.3 | 214.7 | ||
Prepaid expenses and other current assets | 100.4 | 178.6 | ||
Total current assets | 546.5 | 825.2 | ||
Investments in and advances to subsidiaries | 0 | 0 | ||
Property, plant and equipment – net | 464.5 | 454.9 | ||
Long-term intercompany receivables | 0 | 0 | ||
Net assets of Union VEBA | 0 | 340.1 | ||
Deferred tax assets — net | 148.7 | 30.9 | ||
Intangible assets – net | 31.3 | 32.1 | ||
Goodwill | 37.2 | 37.2 | ||
Other assets | 23.1 | 23.3 | ||
Total | 1,251.3 | 1,743.7 | ||
Current liabilities: | ||||
Accounts payable | 77.4 | 81.4 | ||
Intercompany payable | 0 | 0 | ||
Accrued salaries, wages and related expenses | 34.4 | 39.6 | ||
Other accrued liabilities | 51.6 | 132.8 | ||
Current portion of long-term debt | 0 | 172.5 | ||
Short-term capital leases | 0.1 | 0.1 | ||
Total current liabilities | 163.5 | 426.4 | ||
Net liabilities of Salaried VEBA | 16.4 | 17.2 | ||
Deferred tax liabilities | 0.8 | 0.9 | ||
Long-term intercompany payable | 0 | 0 | ||
Long-term liabilities | 86.8 | 58.3 | ||
Long-term debt | 225 | 225 | ||
Total liabilities | 492.5 | 727.8 | ||
Total stockholders’ equity | 758.8 | 1,015.9 | ||
Total | 1,251.3 | 1,743.7 | ||
Parent | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 5 | 5 |
Short-term investments | 0 | 0 | ||
Receivables: | ||||
Trade receivables — net | 0 | 0 | ||
Intercompany receivables | 29.2 | 204.2 | ||
Other | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 0.2 | 85.1 | ||
Total current assets | 29.4 | 289.3 | ||
Investments in and advances to subsidiaries | 1,026.8 | 1,209.2 | ||
Property, plant and equipment – net | 0 | 0 | ||
Long-term intercompany receivables | 0 | 0 | ||
Net assets of Union VEBA | 0 | |||
Deferred tax assets — net | 0 | 0 | ||
Intangible assets – net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 4 | 4.4 | ||
Total | 1,060.2 | 1,502.9 | ||
Current liabilities: | ||||
Accounts payable | 0.6 | 1.3 | ||
Intercompany payable | 74.3 | 0 | ||
Accrued salaries, wages and related expenses | 0 | 0 | ||
Other accrued liabilities | 1.5 | 88.2 | ||
Current portion of long-term debt | 172.5 | |||
Short-term capital leases | 0 | 0 | ||
Total current liabilities | 76.4 | 262 | ||
Net liabilities of Salaried VEBA | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Long-term intercompany payable | 0 | 0 | ||
Long-term liabilities | 0 | 0 | ||
Long-term debt | 225 | 225 | ||
Total liabilities | 301.4 | 487 | ||
Total stockholders’ equity | 758.8 | 1,015.9 | ||
Total | 1,060.2 | 1,502.9 | ||
Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 49.8 | 175.3 | 164.7 | 157.7 |
Short-term investments | 30 | 114 | ||
Receivables: | ||||
Trade receivables — net | 134.7 | 126.1 | ||
Intercompany receivables | 78.7 | 4 | ||
Other | 2.6 | 5.6 | ||
Inventories | 212.8 | 208 | ||
Prepaid expenses and other current assets | 99.8 | 93.1 | ||
Total current assets | 608.4 | 726.1 | ||
Investments in and advances to subsidiaries | 33.6 | 32.5 | ||
Property, plant and equipment – net | 439.5 | 437.4 | ||
Long-term intercompany receivables | 0 | 0 | ||
Net assets of Union VEBA | 340.1 | |||
Deferred tax assets — net | 141.6 | 23.8 | ||
Intangible assets – net | 31.3 | 32.1 | ||
Goodwill | 37.2 | 37.2 | ||
Other assets | 19 | 18.8 | ||
Total | 1,310.6 | 1,648 | ||
Current liabilities: | ||||
Accounts payable | 67.5 | 73.8 | ||
Intercompany payable | 39.5 | 221.3 | ||
Accrued salaries, wages and related expenses | 31.5 | 36.5 | ||
Other accrued liabilities | 50.1 | 43.8 | ||
Current portion of long-term debt | 0 | |||
Short-term capital leases | 0.1 | 0.1 | ||
Total current liabilities | 188.7 | 375.5 | ||
Net liabilities of Salaried VEBA | 16.4 | 17.2 | ||
Deferred tax liabilities | 0 | 0 | ||
Long-term intercompany payable | 10.2 | 15.9 | ||
Long-term liabilities | 80.9 | 50.3 | ||
Long-term debt | 0 | 0 | ||
Total liabilities | 296.2 | 458.9 | ||
Total stockholders’ equity | 1,014.4 | 1,189.1 | ||
Total | 1,310.6 | 1,648 | ||
Non-Guarantor Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 4.5 | 2.4 | 4.5 | 6.8 |
Short-term investments | 0 | 0 | ||
Receivables: | ||||
Trade receivables — net | 3.9 | 3.2 | ||
Intercompany receivables | 1.8 | 0.9 | ||
Other | 3.3 | 5.3 | ||
Inventories | 6.1 | 7.6 | ||
Prepaid expenses and other current assets | 0.4 | 0.4 | ||
Total current assets | 20 | 19.8 | ||
Investments in and advances to subsidiaries | 0 | 0 | ||
Property, plant and equipment – net | 25 | 17.5 | ||
Long-term intercompany receivables | 10.2 | 15.9 | ||
Net assets of Union VEBA | 0 | |||
Deferred tax assets — net | 0 | 0 | ||
Intangible assets – net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 0.1 | 0.1 | ||
Total | 55.3 | 53.3 | ||
Current liabilities: | ||||
Accounts payable | 9.3 | 6.3 | ||
Intercompany payable | 3.7 | 3.3 | ||
Accrued salaries, wages and related expenses | 2.9 | 3.1 | ||
Other accrued liabilities | 0 | 0.8 | ||
Current portion of long-term debt | 0 | |||
Short-term capital leases | 0 | 0 | ||
Total current liabilities | 15.9 | 13.5 | ||
Net liabilities of Salaried VEBA | 0 | 0 | ||
Deferred tax liabilities | 0.8 | 0.9 | ||
Long-term intercompany payable | 0 | 0 | ||
Long-term liabilities | 5.9 | 8 | ||
Long-term debt | 0 | 0 | ||
Total liabilities | 22.6 | 22.4 | ||
Total stockholders’ equity | 32.7 | 30.9 | ||
Total | 55.3 | 53.3 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Short-term investments | 0 | 0 | ||
Receivables: | ||||
Trade receivables — net | 0 | 0 | ||
Intercompany receivables | (109.7) | (209.1) | ||
Other | 0 | 0 | ||
Inventories | (1.6) | (0.9) | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | (111.3) | (210) | ||
Investments in and advances to subsidiaries | (1,060.4) | (1,241.7) | ||
Property, plant and equipment – net | 0 | 0 | ||
Long-term intercompany receivables | (10.2) | (15.9) | ||
Net assets of Union VEBA | 0 | |||
Deferred tax assets — net | 7.1 | 7.1 | ||
Intangible assets – net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total | (1,174.8) | (1,460.5) | ||
Current liabilities: | ||||
Accounts payable | 0 | 0 | ||
Intercompany payable | (117.5) | (224.6) | ||
Accrued salaries, wages and related expenses | 0 | 0 | ||
Other accrued liabilities | 0 | 0 | ||
Current portion of long-term debt | 0 | |||
Short-term capital leases | 0 | 0 | ||
Total current liabilities | (117.5) | (224.6) | ||
Net liabilities of Salaried VEBA | 0 | 0 | ||
Deferred tax liabilities | 0 | 0 | ||
Long-term intercompany payable | (10.2) | (15.9) | ||
Long-term liabilities | 0 | 0 | ||
Long-term debt | 0 | 0 | ||
Total liabilities | (127.7) | (240.5) | ||
Total stockholders’ equity | (1,047.1) | (1,220) | ||
Total | $ (1,174.8) | $ (1,460.5) |
Guarantor and Non-Guarantor F72
Guarantor and Non-Guarantor Financial Statements, Comprehensive Income Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||
Net sales | $ 367.2 | $ 344.1 | $ 738.9 | $ 679.2 |
Cost of products sold: | ||||
Cost of products sold, excluding depreciation and amortization and other items | 294.8 | 275.5 | 597.1 | 558.4 |
Unrealized losses (gains) on derivative instruments | 1.5 | (1.6) | 6 | (3.6) |
Depreciation and amortization | 8.1 | 7.7 | 16.1 | 15.1 |
Selling, general, administrative, research and development | 23.6 | 22 | 46.3 | 42.3 |
Net periodic postretirement benefit cost relating to Salaried VEBA | 0.6 | (6.1) | 1.2 | (11.7) |
Loss on removal of Union VEBA net assets | 1.6 | 493.8 | 0 | |
Total selling, general, administrative, research and development | 25.8 | 15.9 | 541.3 | 30.6 |
Total costs and expenses | 330.2 | 297.7 | 1,160.5 | 600.7 |
Other operating charges, net | 0.2 | 0.2 | ||
Operating (loss) income | 37 | 46.4 | (421.6) | 78.5 |
Other (expense) income: | ||||
Interest expense | (5.2) | (9.2) | (15) | (18) |
Other income, net | 0.4 | 1.8 | 0.8 | 3.7 |
(Loss) income before income taxes | 32.2 | 39 | (435.8) | 64.2 |
Income tax (provision) benefit | (12) | (14.5) | 163.8 | (23.9) |
Earnings in equity of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 20.2 | 24.5 | (272) | 40.3 |
Comprehensive income | 20.6 | 26.6 | (204.7) | 43.3 |
Parent | ||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||
Net sales | 0 | 0 | 0 | 0 |
Cost of products sold: | ||||
Cost of products sold, excluding depreciation and amortization and other items | 0 | 0 | 0 | 0 |
Unrealized losses (gains) on derivative instruments | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Selling, general, administrative, research and development | 1.4 | 1.2 | 2.4 | 2.2 |
Net periodic postretirement benefit cost relating to Salaried VEBA | 0 | 0 | 0 | 0 |
Loss on removal of Union VEBA net assets | 0 | 0 | ||
Total selling, general, administrative, research and development | 1.4 | 1.2 | 2.4 | 2.2 |
Total costs and expenses | 1.4 | 1.2 | 2.4 | 2.2 |
Other operating charges, net | 0 | 0 | ||
Operating (loss) income | (1.4) | (1.2) | (2.4) | (2.2) |
Other (expense) income: | ||||
Interest expense | (4.9) | (9.3) | (14.4) | (18.6) |
Other income, net | 0 | 0.4 | 0 | 1.4 |
(Loss) income before income taxes | (6.3) | (10.1) | (16.8) | (19.4) |
Income tax (provision) benefit | 0 | 0 | 0 | 0 |
Earnings in equity of subsidiaries | 26.5 | 34.6 | (255.2) | 59.7 |
Net income | 20.2 | 24.5 | (272) | 40.3 |
Comprehensive income | 20.6 | 26.6 | (204.7) | 43.3 |
Guarantor Subsidiaries | ||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||
Net sales | 358.3 | 335.7 | 721.7 | 662.8 |
Cost of products sold: | ||||
Cost of products sold, excluding depreciation and amortization and other items | 289.4 | 270.8 | 585.8 | 549.7 |
Unrealized losses (gains) on derivative instruments | 1.5 | (1.6) | 6 | (3.6) |
Depreciation and amortization | 7.8 | 7.5 | 15.5 | 14.6 |
Selling, general, administrative, research and development | 19.5 | 18.5 | 40.2 | 35.1 |
Net periodic postretirement benefit cost relating to Salaried VEBA | 0.6 | (6.1) | 1.2 | (11.7) |
Loss on removal of Union VEBA net assets | 1.6 | 493.8 | ||
Total selling, general, administrative, research and development | 21.7 | 12.4 | 535.2 | 23.4 |
Total costs and expenses | 320.4 | 289.3 | 1,142.5 | 584.3 |
Other operating charges, net | 0.2 | 0.2 | ||
Operating (loss) income | 37.9 | 46.4 | (420.8) | 78.5 |
Other (expense) income: | ||||
Interest expense | (0.3) | 0 | (0.8) | 0.4 |
Other income, net | 0.3 | 0.8 | 0.8 | 2 |
(Loss) income before income taxes | 37.9 | 47.2 | (420.8) | 80.9 |
Income tax (provision) benefit | (15.8) | (17.8) | 156.1 | (30.4) |
Earnings in equity of subsidiaries | 2.1 | 1.4 | 3.2 | 1.8 |
Net income | 24.2 | 30.8 | (261.5) | 52.3 |
Comprehensive income | 24.6 | 33 | (194.3) | 55.2 |
Non-Guarantor Subsidiaries | ||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||
Net sales | 33.5 | 34 | 68.2 | 67.1 |
Cost of products sold: | ||||
Cost of products sold, excluding depreciation and amortization and other items | 28.9 | 29.7 | 60.5 | 58.1 |
Unrealized losses (gains) on derivative instruments | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0.3 | 0.2 | 0.6 | 0.5 |
Selling, general, administrative, research and development | 3.2 | 2.9 | 4.8 | 6.2 |
Net periodic postretirement benefit cost relating to Salaried VEBA | 0 | 0 | 0 | 0 |
Loss on removal of Union VEBA net assets | 0 | 0 | ||
Total selling, general, administrative, research and development | 3.2 | 2.9 | 4.8 | 6.2 |
Total costs and expenses | 32.4 | 32.8 | 65.9 | 64.8 |
Other operating charges, net | 0 | 0 | ||
Operating (loss) income | 1.1 | 1.2 | 2.3 | 2.3 |
Other (expense) income: | ||||
Interest expense | 0 | 0 | 0 | 0 |
Other income, net | 0.1 | 0.7 | 0.2 | 0.5 |
(Loss) income before income taxes | 1.2 | 1.9 | 2.5 | 2.8 |
Income tax (provision) benefit | 1.4 | (0.5) | 1.4 | (0.8) |
Earnings in equity of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 2.6 | 1.4 | 3.9 | 2 |
Comprehensive income | 2.6 | 1.3 | 4 | 2.1 |
Consolidating Adjustments | ||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||
Net sales | (24.6) | (25.6) | (51) | (50.7) |
Cost of products sold: | ||||
Cost of products sold, excluding depreciation and amortization and other items | (23.5) | (25) | (49.2) | (49.4) |
Unrealized losses (gains) on derivative instruments | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Selling, general, administrative, research and development | (0.5) | (0.6) | (1.1) | (1.2) |
Net periodic postretirement benefit cost relating to Salaried VEBA | 0 | 0 | 0 | 0 |
Loss on removal of Union VEBA net assets | 0 | 0 | ||
Total selling, general, administrative, research and development | (0.5) | (0.6) | (1.1) | (1.2) |
Total costs and expenses | (24) | (25.6) | (50.3) | (50.6) |
Other operating charges, net | 0 | 0 | ||
Operating (loss) income | (0.6) | 0 | (0.7) | (0.1) |
Other (expense) income: | ||||
Interest expense | 0 | 0.1 | 0.2 | 0.2 |
Other income, net | 0 | (0.1) | (0.2) | (0.2) |
(Loss) income before income taxes | (0.6) | 0 | (0.7) | (0.1) |
Income tax (provision) benefit | 2.4 | 3.8 | 6.3 | 7.3 |
Earnings in equity of subsidiaries | (28.6) | (36) | 252 | (61.5) |
Net income | (26.8) | (32.2) | 257.6 | (54.3) |
Comprehensive income | $ (27.2) | $ (34.3) | $ 190.3 | $ (57.3) |
Guarantor and Non-Guarantor F73
Guarantor and Non-Guarantor Financial Statements, Cash Flow Statements (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||||
Net cash provided by (used in) operating activities | $ 48.3 | $ 71.3 | ||
Cash flows from investing activities: | ||||
Capital expenditures | $ (11.6) | $ (14.7) | (22.9) | (30.1) |
Purchase of available for sale securities | (0.5) | (23.4) | ||
Proceeds from disposition of available for sale securities | 84 | 25 | ||
Net cash provided by (used in) investing activities | 60.6 | (28.5) | ||
Cash flows from financing activities: | ||||
Repayment of Convertible Notes2 | (175) | 0 | ||
Proceeds from cash-settled call options related to repayment of Convertible Notes2 | 94.9 | 0 | ||
Payment for conversion premium related to repayment of Convertible Notes2 | (94.9) | 0 | ||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1.1 | 0.8 | ||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | (3) | (2.4) | ||
Repurchase of common stock | (41.4) | (23.7) | ||
Cash dividend paid to stockholders | (14) | (12.8) | ||
Intercompany loan | 0 | 0 | ||
Net cash used in financing activities | (232.3) | (38.1) | ||
Net (decrease) increase in cash and cash equivalents during the period | (123.4) | 4.7 | ||
Cash and cash equivalents at beginning of period | 177.7 | 169.5 | ||
Cash and cash equivalents at end of period | 54.3 | 174.2 | 54.3 | 174.2 |
Parent | ||||
Cash flows from operating activities: | ||||
Net cash provided by (used in) operating activities | 233.4 | 7.6 | ||
Cash flows from investing activities: | ||||
Capital expenditures | 0 | 0 | ||
Purchase of available for sale securities | 0 | 0 | ||
Proceeds from disposition of available for sale securities | 0 | 0 | ||
Net cash provided by (used in) investing activities | 0 | 0 | ||
Cash flows from financing activities: | ||||
Repayment of Convertible Notes2 | (175) | |||
Proceeds from cash-settled call options related to repayment of Convertible Notes2 | 94.9 | |||
Payment for conversion premium related to repayment of Convertible Notes2 | (94.9) | |||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0 | 0 | ||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | (3) | (2.4) | ||
Repurchase of common stock | (41.4) | (23.7) | ||
Cash dividend paid to stockholders | (14) | (12.8) | ||
Intercompany loan | 0 | 31.3 | ||
Net cash used in financing activities | (233.4) | (7.6) | ||
Net (decrease) increase in cash and cash equivalents during the period | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 5 | ||
Cash and cash equivalents at end of period | 0 | 5 | 0 | 5 |
Guarantor Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net cash provided by (used in) operating activities | (190.1) | 56.9 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (14.3) | (29.4) | ||
Purchase of available for sale securities | (0.5) | (23.4) | ||
Proceeds from disposition of available for sale securities | 84 | 25 | ||
Net cash provided by (used in) investing activities | 69.2 | (27.8) | ||
Cash flows from financing activities: | ||||
Repayment of Convertible Notes2 | 0 | |||
Proceeds from cash-settled call options related to repayment of Convertible Notes2 | 0 | |||
Payment for conversion premium related to repayment of Convertible Notes2 | 0 | |||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1.1 | 0.8 | ||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | 0 | 0 | ||
Repurchase of common stock | 0 | 0 | ||
Cash dividend paid to stockholders | 0 | 0 | ||
Intercompany loan | (5.7) | (22.9) | ||
Net cash used in financing activities | (4.6) | (22.1) | ||
Net (decrease) increase in cash and cash equivalents during the period | (125.5) | 7 | ||
Cash and cash equivalents at beginning of period | 175.3 | 157.7 | ||
Cash and cash equivalents at end of period | 49.8 | 164.7 | 49.8 | 164.7 |
Non-Guarantor Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net cash provided by (used in) operating activities | 5 | 6.8 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (8.6) | (0.7) | ||
Purchase of available for sale securities | 0 | 0 | ||
Proceeds from disposition of available for sale securities | 0 | 0 | ||
Net cash provided by (used in) investing activities | (8.6) | (0.7) | ||
Cash flows from financing activities: | ||||
Repayment of Convertible Notes2 | 0 | |||
Proceeds from cash-settled call options related to repayment of Convertible Notes2 | 0 | |||
Payment for conversion premium related to repayment of Convertible Notes2 | 0 | |||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0 | 0 | ||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | 0 | 0 | ||
Repurchase of common stock | 0 | 0 | ||
Cash dividend paid to stockholders | 0 | 0 | ||
Intercompany loan | 5.7 | (8.4) | ||
Net cash used in financing activities | 5.7 | (8.4) | ||
Net (decrease) increase in cash and cash equivalents during the period | 2.1 | (2.3) | ||
Cash and cash equivalents at beginning of period | 2.4 | 6.8 | ||
Cash and cash equivalents at end of period | 4.5 | 4.5 | 4.5 | 4.5 |
Consolidating Adjustments | ||||
Cash flows from operating activities: | ||||
Net cash provided by (used in) operating activities | 0 | 0 | ||
Cash flows from investing activities: | ||||
Capital expenditures | 0 | 0 | ||
Purchase of available for sale securities | 0 | 0 | ||
Proceeds from disposition of available for sale securities | 0 | 0 | ||
Net cash provided by (used in) investing activities | 0 | 0 | ||
Cash flows from financing activities: | ||||
Repayment of Convertible Notes2 | 0 | |||
Proceeds from cash-settled call options related to repayment of Convertible Notes2 | 0 | |||
Payment for conversion premium related to repayment of Convertible Notes2 | 0 | |||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0 | 0 | ||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | 0 | 0 | ||
Repurchase of common stock | 0 | 0 | ||
Cash dividend paid to stockholders | 0 | 0 | ||
Intercompany loan | 0 | 0 | ||
Net cash used in financing activities | 0 | 0 | ||
Net (decrease) increase in cash and cash equivalents during the period | 0 | 0 | ||
Cash and cash equivalents at beginning of period | 0 | 0 | ||
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions | Jul. 14, 2015 | Jul. 21, 2015 | Jul. 22, 2015 |
Subsequent Event [Line Items] | |||
Common Stock, Dividends, Per Share, Declared | $ 0.40 | ||
Cash dividends declared | $ 6.9 | ||
Warrant Transactions | |||
Subsequent Event [Line Items] | |||
Exercise price per share of Warrants | $ 60.44 | $ 60.32 | |
Warrant Transactions | |||
Subsequent Event [Line Items] | |||
Shares, Issued | 99,085 | ||
Shares owed and pending settlement | 15,824 |