Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Kaiser Aluminum Corp | ||
Entity Central Index Key | 811,596 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 17,995,363 | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1.4 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 72.5 | $ 177.7 |
Short-term investments | 30 | 114 |
Receivables: | ||
Trade receivables – net | 116.7 | 129.3 |
Other | 6.1 | 10.9 |
Inventories | 219.6 | 214.7 |
Prepaid expenses and other current assets | 56.7 | 178.6 |
Total current assets | 501.6 | 825.2 |
Property, plant and equipment – net | 495.4 | 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 at December 31, 2015 and $127.0 at December 31, 2014, respectively – see Note 5) | 162.6 | 30.9 |
Intangible assets – net | 30.5 | 32.1 |
Goodwill | 37.2 | 37.2 |
Other assets | 22.8 | 23.3 |
Total | 1,250.1 | 1,743.7 |
Current liabilities: | ||
Accounts payable | 76.7 | 81.4 |
Accrued salaries, wages and related expenses | 39.8 | 39.6 |
Other accrued liabilities | 52.7 | 132.8 |
Current portion of long-term debt | 0 | 172.5 |
Short-term capital leases | 0.1 | 0.1 |
Total current liabilities | 169.3 | 426.4 |
Net liabilities of Salaried VEBA | 19 | 17.2 |
Deferred tax liabilities | 2.1 | 0.9 |
Long-term liabilities | 87.5 | 58.3 |
Long-term debt | 197.8 | 225 |
Total liabilities | $ 475.7 | $ 727.8 |
Commitments and contingencies – Note 9 | ||
Stockholders’ equity: | ||
Preferred stock, 5,000,000 shares authorized at both December 31, 2015 and December 31, 2014; no shares were issued and outstanding at December 31, 2015 and December 31, 2014 | $ 0 | $ 0 |
Common stock, par value $0.01, 90,000,000 shares authorized at both December 31, 2015 and December 31, 2014; 22,291,180 shares issued and 18,053,747 shares outstanding at December 31, 2015; 21,197,164 shares issued and 17,607,251 shares outstanding at December 31, 2014 | 0.2 | 0.2 |
Additional paid in capital | 1,036.5 | 1,028.5 |
Retained earnings | 15.9 | 280.4 |
Treasury stock, at cost, 4,237,433 shares at December 31, 2015 and 3,589,913 shares at December 31, 2014 | (246.5) | (197.1) |
Accumulated other comprehensive loss | (31.7) | (96.1) |
Total stockholders’ equity | 774.4 | 1,015.9 |
Total | $ 1,250.1 | $ 1,743.7 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Deferred Tax Liabilities, Other | $ 0 | $ 120.6 |
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 or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 90,000,000 | 90,000,000 |
Common Stock, Shares, Issued | 22,291,180 | 21,197,164 |
Common Stock, Shares, Outstanding | 18,053,747 | 17,607,251 |
Treasury Stock, Shares | 4,237,433 | 3,589,913 |
Union VEBA | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Deferred Tax Liabilities, Other | $ 0 | $ 127 |
Statements of Consolidated Inco
Statements of Consolidated Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||||||||||
Net sales | $ 316.6 | $ 336.4 | $ 367.2 | $ 371.7 | $ 338 | $ 338.9 | $ 344.1 | $ 335.1 | $ 1,391.9 | $ 1,356.1 | $ 1,297.5 |
Cost of products sold: | |||||||||||
Cost of products sold, excluding depreciation and amortization and other items | 251 | 267.3 | 294.8 | 302.3 | 278.7 | 280.4 | 275.5 | 282.9 | 1,115.4 | 1,117.5 | 1,038.9 |
Lower of cost or market inventory write-down | 2.6 | 0 | 0 | 0 | 2.6 | 0 | 0 | ||||
Unrealized loss (gain) on derivative instruments | (4.3) | 1.7 | 1.5 | 4.5 | 10.4 | 3.6 | (1.6) | (2) | 3.4 | 10.4 | (0.7) |
Depreciation and amortization | 32.4 | 31.1 | 28.1 | ||||||||
Selling, general, administrative, research and development | 88.1 | 81.4 | 80.4 | ||||||||
Net periodic postretirement benefit cost (income) relating to VEBAs – Note 6 | 2.4 | (23.7) | (22.5) | ||||||||
Loss on removal of Union VEBA net assets – Note 6 | 493.4 | 0 | 0 | ||||||||
Total selling, general, administrative, research and development | 583.9 | 57.7 | 57.9 | ||||||||
Other operating charges, net | 0.1 | 1.5 | 0 | ||||||||
Total costs and expenses | 1,737.8 | 1,218.2 | 1,124.2 | ||||||||
Operating (loss) income | 35.2 | 40.5 | 37 | (458.6) | 26.8 | 32.6 | 46.4 | 32.1 | (345.9) | 137.9 | 173.3 |
Other (expense) income: | |||||||||||
Interest expense | (24.1) | (37.5) | (35.7) | ||||||||
Other (expense) income, net – Note 15 | (1.8) | 6.7 | 5.6 | ||||||||
(Loss) income before income taxes | (371.8) | 107.1 | 143.2 | ||||||||
Income tax benefit (provision) | 135.2 | (35.3) | (38.4) | ||||||||
Net (loss) income | $ 13.3 | $ 22.1 | $ 20.2 | $ (292.2) | $ 15.6 | $ 15.9 | $ 24.5 | $ 15.8 | $ (236.6) | $ 71.8 | $ 104.8 |
Net (loss) income per common share: | |||||||||||
Basic (in dollars per share) | $ 0.76 | $ 1.29 | $ 1.19 | $ (16.85) | $ 0.88 | $ 0.90 | $ 1.38 | $ 0.88 | $ (13.76) | $ 4.02 | $ 5.56 |
Diluted (in dollars per share) | $ 0.73 | $ 1.21 | $ 1.11 | $ (16.85) | $ 0.85 | $ 0.85 | $ 1.33 | $ 0.85 | $ (13.76) | $ 3.86 | $ 5.44 |
Weighted-average number of common shares outstanding (in thousands): | |||||||||||
Basic (in shares) | 17,201 | 17,818 | 18,827 | ||||||||
Diluted (in shares) | 17,201 | 18,593 | 19,246 | ||||||||
Dividends declared per common share (in dollars per share) | $ 1.6 | $ 1.4 | $ 1.2 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income (Loss) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (236.6) | $ 71.8 | $ 104.8 |
Defined benefit pension plan and VEBAs: | |||
Total actuarial (loss) gain and prior service costs | (6.1) | (129.5) | 2.2 |
Reclassification adjustments: | |||
Amortization of net actuarial loss (gain) | 1.1 | (1.8) | 1.5 |
Amortization of prior service cost | 3 | 10.6 | 4.2 |
Accumulated Defined Benefit Plans Adjustment, Removal Of Obligation Attributable to Parent | 106.6 | 0 | 0 |
Other comprehensive income (loss) relating to defined benefit pension plan and VEBAs | 104.6 | (120.7) | 7.9 |
Available for sale securities: | |||
Unrealized (loss) gain on available for sale securities | (0.1) | (0.2) | 1 |
Reclassification adjustments: | |||
Reclassification of unrealized gain upon sale of available for sale securities | (0.4) | (0.1) | (1) |
Other comprehensive loss relating to available for sale securities | (0.5) | (0.3) | 0 |
Unrealized loss on foreign currency cash flow hedges | (0.3) | 0 | 0 |
Foreign currency translation (loss) gain | (0.2) | 0.4 | 0.2 |
Other comprehensive income (loss), before tax | 103.6 | (120.6) | 8.1 |
Income tax (expense) benefit related to items of other comprehensive income (loss) | (39.2) | 45.2 | (2.8) |
Other comprehensive income (loss), net of tax | 64.4 | (75.4) | 5.3 |
Comprehensive (loss) income | $ (172.2) | $ (3.6) | $ 110.1 |
Statement of Consolidated Stock
Statement of Consolidated Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) |
Beginning balance, shares at Dec. 31, 2012 | 19,313,235 | |||||
Beginning balance at Dec. 31, 2012 | $ 1,070.8 | $ 0.2 | $ 1,017.7 | $ 151.2 | $ (72.3) | $ (26) |
Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 104.8 | 104.8 | ||||
Other comprehensive income, net of tax | 5.3 | 5.3 | ||||
Issuance of non-vested shares to employees | 76,336 | |||||
Issuance of common shares to directors, shares | 2,916 | |||||
Issuance of common shares to non-employee directors | 0.2 | 0.2 | ||||
Issuance of common shares to employees upon vesting of restricted stock units and performance shares | 36,503 | |||||
Cancellation of employee non-vested shares | (820) | |||||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares, shares | (40,075) | |||||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | $ (2.5) | (2.5) | ||||
Repurchase of common stock, shares | 0 | (1,232,077) | ||||
Repurchase of common stock | $ (79.3) | (79.3) | ||||
Shares returned from distribution of third-party trust, shares | (9,001) | |||||
Distribution from third party trust | 0.6 | (0.6) | ||||
Cash dividends on common stock | $ (23) | (23) | ||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1.1 | 1.1 | ||||
Amortization of unearned equity compensation | 6.6 | 6.6 | ||||
Restricted Stock Award, Forfeitures, Dividends | 0.2 | 0.2 | ||||
Ending balance, shares at Dec. 31, 2013 | 18,147,017 | |||||
Ending balance at Dec. 31, 2013 | 1,084.2 | $ 0.2 | 1,023.1 | 233.8 | (152.2) | (20.7) |
Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | 71.8 | 71.8 | ||||
Other comprehensive income, net of tax | (75.4) | (75.4) | ||||
Issuance of non-vested shares to employees | 119,799 | |||||
Issuance of common shares to directors, shares | 2,969 | |||||
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 | 44,895 | |||||
Cancellation of employee non-vested shares | (40,503) | |||||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares, shares | (33,696) | |||||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | $ (2.4) | (2.4) | ||||
Repurchase of common stock, shares | (633,230) | (633,230) | ||||
Repurchase of common stock | $ (44.9) | (44.9) | ||||
Cash dividends on common stock | (25.4) | (25.4) | ||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0.8 | 0.8 | ||||
Amortization of unearned equity compensation | 6.8 | 6.8 | ||||
Restricted Stock Award, Forfeitures, Dividends | $ 0.2 | 0.2 | ||||
Ending balance, shares at Dec. 31, 2014 | 17,607,251 | 17,607,251 | ||||
Ending 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) income | (236.6) | (236.6) | ||||
Other comprehensive income, net of tax | 64.4 | 64.4 | ||||
Issuance of non-vested shares to employees | 62,285 | |||||
Issuance of common shares to directors, shares | 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 | 52,106 | |||||
Cancellation of employee non-vested shares | (987) | |||||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares, shares | (37,009) | |||||
Cancellation of shares to cover employees’ tax withholdings upon vesting of non-vested shares | $ (2.8) | (2.8) | ||||
Repurchase of common stock, shares | (647,520) | (647,520) | ||||
Repurchase of common stock | $ (49.4) | (49.4) | ||||
Stock Issued During Period, Shares, Other | 1,015,185 | |||||
Cash dividends on common stock | (28.1) | (28.1) | ||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1.3 | 1.3 | ||||
Amortization of unearned equity compensation | 9.3 | 9.3 | ||||
Restricted Stock Award, Forfeitures, Dividends | $ 0.2 | 0.2 | ||||
Ending balance, shares at Dec. 31, 2015 | 18,053,747 | 18,053,747 | ||||
Ending balance at Dec. 31, 2015 | $ 774.4 | $ 0.2 | $ 1,036.5 | $ 15.9 | $ (246.5) | $ (31.7) |
Statement of Consolidated Stoc7
Statement of Consolidated Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Financial Position [Abstract] | |||
Dividends declared per common share (in dollars per share) | $ 1.6 | $ 1.4 | $ 1.2 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Cash flows from operating activities: | ||||
Net (loss) income | $ (236.6) | $ 71.8 | $ 104.8 | |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||
Depreciation of property, plant and equipment | 30.8 | 29.5 | 26.4 | |
Amortization of definite-lived intangible assets | 1.6 | 1.6 | 1.7 | |
Amortization of debt discount and debt issuance costs | 4.3 | 11.8 | 11 | |
Deferred income taxes – Note 5 | (131.7) | 34.3 | 55.4 | |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1.3 | 0.8 | 1.1 | |
Non-cash equity compensation | 9.5 | 7 | 6.8 | |
Lower of cost or market inventory write-down | 2.6 | 0 | 0 | |
Non-cash unrealized loss (gain) on derivative instruments | 3.4 | 6.8 | (3.9) | |
Amortization of option premiums (received) paid, net | 0 | 0 | (0.1) | |
Non-cash impairment charges | 0.1 | 1.5 | 0 | |
Loss on repurchase of Senior Notes | [1] | 2.5 | 0 | 0 |
Loss on disposition of property, plant and equipment | (0.3) | (0.2) | (0.1) | |
Loss (gain) on disposition of available for sale securities | 0 | (0.1) | 0.4 | |
Non-cash defined benefit net periodic benefit cost (income) | [2] | 2.8 | (23.5) | (22) |
Non-cash loss on removal of Union VEBA, net | [2] | 446.7 | 0 | 0 |
Other non-cash changes in assets and liabilities | (0.6) | (0.6) | 9.3 | |
Changes in operating assets and liabilities: | ||||
Trade and other receivables | (17.4) | 7 | 3.3 | |
Inventories, excluding lower of cost or market write-down | 7.5 | 0.3 | 28.4 | |
Prepaid expenses and other current assets | [3] | (0.5) | 0.6 | (1.1) |
Accounts payable | (13.6) | 20.3 | (1.6) | |
Accrued liabilities | [2],[3] | 12.8 | (6) | 1.8 |
Annual variable cash contributions to VEBAs | 13.7 | 16 | 20 | |
Payable to affiliate | 0 | 0 | (7.9) | |
Long-term assets and liabilities, net | [2],[3] | (27.3) | 7.2 | (0.6) |
Net cash provided by operating activities | 158.8 | 124.1 | 111.7 | |
Cash flows from investing activities: | ||||
Capital expenditures | (63.1) | (59.4) | (70.4) | |
Purchase of available for sale securities | (0.5) | (93.5) | (227.8) | |
Proceeds from disposition of available for sale securities | 84 | 108.2 | 183.1 | |
Change in restricted cash | 0 | 0 | 1.7 | |
Net cash provided by (used in) investing activities | [4] | 20.4 | (44.7) | (113.4) |
Cash flows from financing activities: | ||||
Repurchase of Senior Notes | [1] | (30) | 0 | 0 |
Settlement of Convertible Notes | [1] | (175) | 0 | 0 |
Proceeds from cash-settled call options related to settlement of Convertible Notes | [1] | 94.9 | 0 | 0 |
Payment for conversion premium related to settlement of Convertible Notes | [1] | (94.9) | 0 | 0 |
Cash paid for financing costs | 0.6 | 0 | 0 | |
Payment of capital lease liability | 0 | (0.1) | (0.1) | |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1.3 | 0.8 | 1.1 | |
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (2.8) | (2.4) | (2.5) | |
Repurchase of common stock | (49.2) | (44.1) | (78.3) | |
Cash dividends paid to stockholders | (28.1) | (25.4) | (23) | |
Cash dividend returned to the Company | 0 | 0 | 0.6 | |
Net cash used in financing activities | [4] | (284.4) | (71.2) | (102.2) |
Net (decrease) increase in cash and cash equivalents during the period | (105.2) | 8.2 | (103.9) | |
Cash and cash equivalents at beginning of period | 177.7 | 169.5 | 273.4 | |
Cash and cash equivalents at end of period | $ 72.5 | $ 177.7 | $ 169.5 | |
[1] | See Note 3 for more information relating to the Senior Notes (defined in Note 3) and the Convertible Notes. | |||
[2] | See Note 6 for the impact of removing the Union VEBA (defined in Note 6) net assets. | |||
[3] | Excludes the reclassification of derivatives relating to the Convertible Notes (defined in Note 3) from long-term to current at December 31, 2014 as the amounts had no impact on cash flow - see Note 3 and Note 11. | |||
[4] | See Note 14 for the supplemental disclosure on non-cash transactions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies In this Annual Report on Form 10-K (this "Report"), unless the context otherwise requires, references in these notes to consolidated financial statements to "Kaiser Aluminum Corporation," "we," "us," "our," "the Company" and "our Company" refer collectively to Kaiser Aluminum Corporation and its subsidiaries. Organization and Nature of Operations. Kaiser Aluminum Corporation specializes in the production of semi-fabricated specialty aluminum products, such as aluminum plate and sheet 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 13 for additional information regarding our reportable segment and business unit. Principles of Consolidation and Basis of Presentation. The 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 (the "SEC"). Intercompany balances and transactions are eliminated. 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. Recognition of Sales. Sales are generally recognized on a gross basis when all of the following criteria are met: (i) persuasive evidence of an arrangement exists; (ii) title, ownership and risk of loss has passed to the customer; (iii) the price to the customer is fixed or determinable; and (iv) collection of the resulting receivable is reasonably assured. A provision for estimated sales returns from and allowances to customers is made in the same period as the related revenues are recognized, based on historical experience or the specific identification of an event necessitating a reserve. Stock-Based Compensation. Stock-based compensation in the form of service-based awards is provided to executive officers, certain employees and non-employee directors and is accounted for at fair value. We measure the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award and the number of awards expected to ultimately vest. The grant-date fair value is determined based on the stock price on the date of grant, adjusted for expected dividends to be paid during the vesting period. We also grant performance-based awards to executive officers and other key employees. Performance awards granted prior to 2014 are subject to performance conditions pertaining to specified financial metrics and are valued based on the stock price at the date of grant, adjusted for expected dividend equivalents to be paid during the vesting period. Performance awards granted after 2014 are subject to performance conditions pertaining to total shareholder return and are valued on the date of grant using a Monte Carlo valuation model. The key assumptions in applying this model are an expected volatility and a risk-free interest rate. For more information on our stock-based compensation, see Note 8 . The cost of service-based awards, including time-vested restricted stock and performance shares, is recognized as an expense over the requisite service period of the award on a straight-line basis. For performance shares granted prior to 2014, the related expense is updated quarterly by adjusting the estimated number of shares expected to vest based on the most probable outcome of the performance condition (see Note 8 ). Shipping and Handling Costs. Shipping and handling costs are recorded as a component of Cost of products sold, excluding depreciation, amortization and other items. Advertising Costs. Advertising costs, which are included in Selling, general, administrative, research and development ("SG&A and R&D"), are expensed as incurred. Advertising costs for 2015 , 2014 and 2013 were $1.2 million , $0.6 million and $1.3 million , respectively. Research and Development Costs. Research and development costs, which are included in SG&A and R&D, are expensed as incurred. Research and development costs for 2015 , 2014 and 2013 were $9.5 million , $8.9 million and $7.8 million , respectively. Major Maintenance Activities. All major maintenance costs are accounted for using the direct expensing method. Cash and Cash Equivalents. We consider only those short-term, highly liquid investments with original maturities of 90 days or less when purchased to be cash equivalents. Our cash equivalents consist primarily of funds in commercial paper, money market funds and other highly liquid investments, which are classified within Level 1 of the fair value hierarchy with the exception of commercial paper, which is classified within Level 2 of the fair value hierarchy. Restricted Cash. We are required to keep on deposit certain amounts that are pledged or held as collateral relating to workers’ compensation and other agreements. We account for such deposits as restricted cash (see Note 2 ). From time to time, such restricted funds could be returned to us or we could be required to pledge additional cash. Trade Receivables and Allowance for Doubtful Accounts. Trade receivables primarily consist of amounts billed to customers for products sold. Accounts receivable are generally due within 30 to 60 days . For the majority of our receivables, we establish an allowance for doubtful accounts based upon collection experience and other factors. On certain other receivables where we are aware of a specific customer’s inability or reluctance to pay, an allowance for doubtful accounts is established against amounts due, to reduce the net receivable balance to the amount we reasonably expect to collect. However, if circumstances change, our estimate of the recoverability of accounts receivable could be different. Circumstances that could affect our estimates include, but are not limited to, customer credit issues and general economic conditions. Accounts are written off once deemed to be uncollectible. Any subsequent cash collections relating to accounts that have been previously written off are typically recorded as a reduction to total bad debt expense in the period of payment. Write-offs for 2015 , 2014 and 2013 were immaterial to the consolidated financial statements. Inventories. Inventories are stated at the lower of cost or market value. On December 31, 2015 , we recorded an inventory write-down of $2.6 million to reflect the net realizable value as of that date. The net realizable value reflected: (i) a reduction in the Midwest Transaction Price and (ii) commitments as of that date from customers to purchase our inventory at prices that exceeded the Midwest Transaction Price reduced by an approximate normal profit margin. If we continue to encounter reductions in the price of aluminum and/or if we experience a decrease in our net realizable value of inventory, we may be subject to additional inventory lower of cost or market value adjustments. Finished products, work-in-process and raw material inventories are stated on the last-in, first-out ("LIFO") basis. At December 31, 2015, after adjusting for the inventory write down discussed above, the stated LIFO value of inventory represented its net realizable value (less a normal profit margin) and exceeded the current cost of our inventory by $24.1 million . At December 31, 2014, the current cost of our inventory exceeded its stated LIFO value by $37.6 million . 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 December 31, 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 $1.8 million , $2.5 million and $3.4 million during 2015 , 2014 and 2013 , respectively. Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Capital lease assets and leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The principal estimated useful lives are as follows: Range (in years) Land improvements 3 - 25 Buildings and leasehold improvements 15 - 45 Machinery and equipment 1 - 24 Capital lease assets 3 - 5 Depreciation expense is not included in Cost of products sold, excluding depreciation and amortization and other items , but is included in Depreciation and amortization on the Statements of Consolidated (Loss) Income. For 2015 , 2014 and 2013 , we recorded depreciation expense of $30.3 million , $29.0 million and $25.8 million , respectively, relating to our operating facilities in our Fabricated Products segment. An immaterial amount of depreciation expense was also recorded within All Other for all periods presented in this Report. Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or group of assets may not be recoverable. We regularly assess whether events and circumstances with the potential to trigger impairment have occurred and rely on a number of factors, including operating results, business plans, economic projections and anticipated future cash flow, to make such assessments. We use an estimate of the future undiscounted cash flows of the related asset or asset group over the estimated remaining life of such asset(s) in measuring whether the asset(s) are recoverable. Measurement of the amount of impairment, if any, is based on the difference between the carrying value of the asset(s) and the estimated fair value of such asset(s). Fair value is determined through a series of standard valuation techniques. We recorded impairment charges of $0.1 million and $1.5 million in 2015 and 2014, respectively, to reflect the scrap value of idled assets we determined not to deploy for future use. There were no impairment charges in 2013 . Asset impairment charges are included in Other operating charges, net in the Statements of Consolidated (Loss) Income and are included in the Fabricated Products segment. 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. Available for Sale Securities. We account for investments in certain marketable debt securities as available for sale securities. Such securities are recorded at fair value (see Note 11 ), with net unrealized gains and losses, net of income taxes, reflected in Accumulated other comprehensive income (loss) as a component of Stockholders' equity. Realized gains and losses from the sale of marketable debt securities, if any, are determined on a specific identification basis. Debt investment securities with an original maturity of 90 days or less are classified as Cash and cash equivalents (see Note 2 ). Debt investment securities with an original maturity of greater than 90 days are presented as Short-term investments on the Consolidated Balance Sheets. In addition to debt investment securities, we also hold assets in various investment funds managed by a third-party trust in connection with our deferred compensation program (see Note 6 ). Deferred Financing Costs. Costs incurred in connection with debt financing are deferred and amortized over the estimated term of the related borrowing. Such amortization is included in Interest expense and may be capitalized as part of construction in progress (see Note 2 and Note 3 ). Goodwill and Intangible Assets. Goodwill is tested for impairment during the fourth quarter on an annual basis, as well as on an interim basis, as warranted, at the time of relevant events and changes in circumstances. Intangible assets with definite lives are initially recognized at fair value and subsequently amortized over the estimated useful lives to reflect the pattern in which the economic benefits of the intangible assets are consumed. In the event the pattern cannot be reliably determined, we use a straight-line amortization method. Whenever events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable, the intangible assets are reviewed for impairment. We concluded there was no impairment of the carrying value of goodwill at December 31, 2015 or December 31, 2014 (see Note 4 ). Conditional Asset Retirement Obligations ( " CAROs " ). We have CAROs at several of our Fabricated Products facilities. The vast majority of such CAROs consist primarily of incremental costs that would be associated with the removal and disposal of asbestos (all of which is believed to be fully contained and encapsulated within walls, floors, roofs, ceilings or piping) at certain of our older facilities if such facilities were to undergo major renovation or be demolished. We estimate incremental costs for special handling, removal and disposal costs of materials that may or will give rise to CAROs and then discount the expected costs back to the current year using a credit-adjusted, risk-free rate. When it is unclear when or if CAROs will be triggered, we use probability weighting for possible timing scenarios to determine the probability-weighted liability amounts that should be recognized in our consolidated financial statements (see Note 11 ). Self Insurance of Employee Health and Workers' Compensation Liabilities . We self-insure the majority of the costs of employee health care benefits and workers' compensation benefits and rely on insurance coverage to protect us from large losses on individual claims. Workers' compensation liabilities are based on a combination of estimates for: (i) incurred-but-not-reported claims and (ii) the ultimate expense of incurred claims. Such estimates are based on judgment, using our historical claims data and information and analysis provided by actuarial and claims advisors, our insurance carriers and other professionals. Our undiscounted workers' compensation liabilities were estimated at $23.5 million and $25.9 million at December 31, 2015 and December 31, 2014 , respectively. However, we account for our workers' compensation accrued liability on a discounted basis, using a discount rate of 1.75% at both December 31, 2015 and December 31, 2014 . Accrued liabilities for employee healthcare benefits, which are estimates of unpaid incurred medical and prescription drug costs as provided by our healthcare administrators, were $3.2 million and $2.9 million at December 31, 2015 and December 31, 2014 , respectively. Environmental Contingencies. With respect to environmental loss contingencies, we record a loss contingency whenever a contingency is probable and reasonably estimable (see Note 9 ). Accruals for estimated losses from environmental remediation obligations are generally recognized no later than the completion of the remedial feasibility study. Such accruals are adjusted as information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Accruals for expected environmental costs are included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2 ). Environmental expense relating to continuing operations is included in Cost of products sold, excluding depreciation and amortization and other items in the Statements of Consolidated (Loss) Income. Environmental expense relating to non-operating locations is included in SG&A and R&D in the Statements of Consolidated (Loss) Income. Derivative Financial Instruments. Hedging transactions using derivative financial instruments are primarily designed to mitigate our exposure to changes in the market price of aluminum and energy and, to a lesser extent, to mitigate our exposure to changes in foreign currency exchange rates. From time to time, we also enter into hedging arrangements in connection with financing transactions to mitigate financial risks. We do not utilize derivative financial instruments for trading or other speculative purposes. Our derivative activities are initiated within guidelines established by management and approved by our Board of Directors. Hedging transactions are executed centrally on behalf of all of our operations to minimize transaction costs, monitor consolidated net exposures and allow for increased responsiveness to changes in market factors. We recognize derivative instruments as assets or liabilities in our Consolidated Balance Sheets and measure these instruments at fair value by "marking-to-market" all of our hedging positions at each period's end (see Note 11 ). Because we do not meet the documentation requirements for hedge (deferral) accounting related to aluminum and energy derivatives, unrealized and realized gains and losses associated with these hedges are reflected as a reduction or increase, respectively, in Cost of products sold - Unrealized loss (gain) on derivative instruments and unrealized and realized gains and losses relating to hedges of financing transactions are reflected as a component of Other income (expense) (see Note 15 ). Our accounting policy for foreign currency related derivatives is discussed in " Foreign Currency Risk Management" below. See Note 10 for additional information about realized and unrealized gains and losses relating to our derivative financial instruments. Our derivative contacts for metal, natural gas, electricity and foreign currency potentially subject us to concentrations of credit risk if a counterparty fails to perform its obligations on derivative contracts with us or fails to return cash collateral that we previously posted with the counterparty. To mitigate this risk, we only enter into hedges with major financial institutions and/or trading firms that are investment grade or better, and we diversify our hedging positions among multiple counterparties to minimize exposure to any single counterparty. Additionally, we enter into reciprocal margin arrangements whereby: (i) we deposit margin collateral with a counterparty to the extent that the net market value of our derivative positions with such counterparty is a liability to us and exceeds a specified dollar threshold or (ii) the counterparty deposits margin collateral with us to the extent that the net market value of our derivative positions with such counterparty is an asset to us and exceeds a specified dollar threshold. At both December 31, 2015 and December 31, 2014 , we had no margin deposits with or from our counterparties. As a result of our efforts to manage our counterparty exposures, we believe the risk of loss is remote and, in any event, would not be material. Additionally, our firm price customer sales commitments create incremental customer credit risk related to metal price movements. Under certain circumstances, we mitigate this risk by periodically requiring cash collateral from them, which we classify as deferred revenue and include as a component of Other accrued liabilities on our Consolidated Balance Sheets. At December 31, 2015 , cash collateral totaled $0.9 million . For more information about concentration risks concerning customers and suppliers, see Note 13 . Fair Value Measurements. We apply the provisions of Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures , in measuring the fair value of our derivative contracts and plan assets invested by certain of our employee benefit plans (see Note 11 ). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three broad levels and is described below: • Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including: quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – Inputs that are both significant to the fair value measurement and unobservable. Income Taxes. Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying statutory tax rates in effect for the year during which the differences are expected to reverse. In accordance with ASC Topic 740, Income Taxes , we use a "more likely than not" threshold for recognition of tax attributes that are subject to uncertainties and measure any reserves in respect of such expected benefits based on their probability. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized (see Note 5 ). Net (Loss) Income per Share. Basic net (loss) income per share is computed by dividing distributed and undistributed net (loss) income allocable to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes unvested share-based payment awards. Diluted net (loss) income per share was calculated under the treasury stock method for 2015 , 2014 and 2013 , which in all years was more dilutive than the two-class method (see Note 12 ). Leases. For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record any difference between the straight-line rent amounts and the amount payable under the lease as part of deferred rent in Other accrued liabilities or Long-term liabilities, as appropriate. Deferred rent for all periods presented was not material. Foreign Currency. Certain of our foreign subsidiaries use the local currency as their functional currency; our assets and liabilities are translated at exchange rates in effect at the balance sheet date; and our statement of (loss) income is translated at weighted-average monthly rates of exchange prevailing during the year. Resulting translation adjustments are recorded directly to a separate component of stockholders’ equity in accordance with ASC Topic 830, Foreign Currency Matters . At both December 31, 2015 and December 31, 2014 , the amount of translation adjustment relating to foreign subsidiaries using local currency as their functional currency was immaterial. Where the U.S. dollar is the functional currency of a foreign facility or subsidiary, re-measurement adjustments are recorded in Other income (expense). 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 with 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. We report the effective portion of our cash flow hedges in the same financial statement line item as changes in the fair value of the hedged item. In order to qualify for hedge accounting treatment, derivative instruments 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, 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 Net (loss) income 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 Net (loss) income. See Note 10 for additional information. New Accounting Pronouncements. Accounting Standards Update ("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. In August 2015, ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30) - Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements ("ASU 2015-15") was issued to address the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. The recognition and measurement guidance for debt issuance costs is not affected by ASU 2015-03 and ASU 2015-15. An entity is required to adopt ASU 2015-03 and ASU 2015-15 for reporting periods beginning on or after December 15, 2015. We do not expect the adoption of these ASUs to have a material impact on our consolidated financial statements. ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) ("ASU 2015-07"), was issued in May 2015. This ASU removes the requirement to categorize within the fair value hierarchy table investments without readily determinable fair values in entities that elect to measure fair value using net asset value per share ("NAV") or its equivalent. ASU 2015-07 requires that these investments continue to be shown in the fair value disclosure in order to allow the disclosure to reconcile to the investment amount presented in the balance sheet. An entity is required to adopt ASU 2015-07 for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ("ASU 2015-14"), was issued in August 2015. ASU 2015-14 defers the effective date of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which was issued in May 2014 and 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, by one year for all entities and permits early adoption on a limited basis. We expect to adopt ASU 2014-09 for the fiscal year ending December 31, 2018 and will continue to assess the impact of the adoption on our consolidated financial statements; however, based on our assessments to date, we do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ("ASU 2015-17"), was issued in November 2015. ASU 2015-17 requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. This ASU does not, however, change the existing requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount. We do not expect the adoption of ASU 2015-17 in the first quarter of 2016 to have a material impact on our consolidated financial statements. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information December 31, 2015 December 31, 2014 (In millions of dollars) Cash and Cash Equivalents Cash and money market funds $ 40.3 $ 29.5 Commercial paper 32.2 148.2 Total $ 72.5 $ 177.7 December 31, 2015 December 31, 2014 (In millions of dollars) Trade Receivables – Net Billed trade receivables $ 116.8 $ 128.7 Unbilled trade receivables 0.7 1.4 Trade receivables, gross 117.5 130.1 Allowance for doubtful receivables (0.8 ) (0.8 ) Trade receivables – net $ 116.7 $ 129.3 Inventories Finished products $ 79.5 $ 73.6 Work-in-process 63.6 66.7 Raw materials 53.4 54.2 Operating supplies and repair and maintenance parts 23.1 20.2 Total $ 219.6 $ 214.7 Prepaid Expenses and Other Current Assets Current derivative assets – Notes 10 and 11 $ 1.5 $ 85.7 Current deferred tax assets 49.6 86.4 Prepaid insurance 1.9 2.0 Short-term restricted cash 0.3 0.3 Other 3.4 4.2 Total $ 56.7 $ 178.6 Property, Plant and Equipment – Net Land and improvements $ 22.7 $ 22.9 Buildings and leasehold improvements 71.8 63.8 Machinery and equipment 549.0 509.8 Construction in progress 48.5 25.2 Property, plant and equipment – gross 692.0 621.7 Accumulated depreciation (196.9 ) (166.8 ) Assets held for sale 0.3 — Property, plant and equipment – net $ 495.4 $ 454.9 Other Assets Restricted cash $ 10.9 $ 10.0 Deferred financing costs 4.5 5.9 Deferred compensation plan assets 7.3 7.3 Derivative assets – Notes 10 and 11 0.1 — Other — 0.1 Total $ 22.8 $ 23.3 December 31, 2015 December 31, 2014 (In millions of dollars) Other Accrued Liabilities Current derivative liabilities – Notes 10 and 11 $ 14.1 $ 94.9 Uncleared cash disbursements 8.0 9.1 Accrued income taxes and taxes payable 3.1 5.2 Accrued annual contribution to VEBAs 19.6 13.7 Short-term environmental accrual – Note 9 1.6 2.3 Accrued interest 1.5 3.7 Short-term deferred revenue – Note 1 1.2 0.2 Other 3.6 3.7 Total $ 52.7 $ 132.8 Long-Term Liabilities Derivative liabilities – Notes 10 and 11 $ 2.1 $ 1.9 Income tax liabilities 0.7 2.4 Workers’ compensation accruals 21.7 21.5 Long-term environmental accrual – Note 9 17.0 17.0 Long-term asset retirement obligations 4.8 4.4 Long-term deferred revenue – Note 1 0.3 0.5 Deferred compensation liability 7.7 7.2 Long-term capital leases 0.1 0.1 Long-term portion of contingent contribution to Union VEBA – Note 6 29.9 — Other long-term liabilities 3.2 3.3 Total $ 87.5 $ 58.3 |
Debt and Credit Facility
Debt and Credit Facility | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facility | 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 $18.8 million for 2015 , and $19.4 million each for 2014 and 2013. A portion of the interest relating to the Senior Notes was capitalized as construction in progress. The effective interest rate of the Senior Notes is approximately 8.6% per annum, taking into account the amortization of deferred financing costs. The Senior Notes are unsecured obligations and are guaranteed by certain of our domestic subsidiaries that own virtually all of our operating assets and through which we conduct the vast majority of our business. See Note 17 for condensed guarantor and non-guarantor financial information. The indenture governing the Senior Notes places limitations on our and certain of our subsidiaries' ability to, among other things, incur liens, consolidate, merge or sell all or substantially all of our and certain of our subsidiaries' assets, incur or guarantee additional indebtedness, enter into transactions with affiliates and to make "restricted payments" (which are defined in the indenture to include certain loans, investments, dividend payments, share repurchases and prepayments, redemptions or repurchases of certain indebtedness). Certain types and amounts of restricted payments are allowed by various provisions of the indenture. In particular, the indenture provisions permit us to make restricted payments in any amount if, after giving effect to such restricted payments, our "consolidated total indebtedness" as a ratio of "EBITDA" (each term as defined in the indenture) is less than 2.00:1.00 . We may redeem the Senior Notes at our option in whole or part at any time on or after June 1, 2016 at a redemption price of 104.125% of the principal amount, declining to 102.0625% of the principal amount on or after June 1, 2017 and declining further to 100% of the principal amount on or after June 1, 2018, in each case plus any accrued and unpaid interest. At any time prior to June 1, 2016, we may also redeem some or all of the Senior Notes at a redemption price equal to 100% of the principal amount, together with any accrued and unpaid interest, plus a "make-whole premium." Holders of the Senior Notes have the right to require us to repurchase the Senior Notes at a price equal to 101% of the principal amount plus any accrued and unpaid interest following a change of control. A change of control includes: (i) certain ownership changes; (ii) certain recapitalizations, mergers and dispositions; (iii) certain changes in the composition of our Board of Directors; and (iv) shareholders' approval of any plan or proposal for the liquidation or dissolution of us. We may also be required to offer to repurchase the Senior Notes at 100% of the principal amount, plus any accrued and unpaid interest, with the proceeds of certain asset sales. During 2015 , we repurchased $27.2 million aggregate principal amount of our Senior Notes for 107.5% of the face value plus $0.8 million of accrued interest for a total net cash outflow of $30.0 million and a loss of $2.5 million recognized within Other (expense) income, net on our Statements of Consolidated (Loss) Income. As of December 31, 2015 and December 31, 2014 , the aggregate principal amount of our Senior Notes outstanding was $197.8 million and $225.0 million , respectively. The fair value of the outstanding Senior Notes at December 31, 2015 and December 31, 2014 was approximately $207.3 million and $244.5 million , respectively. See Note 11 for information relating to the estimated fair value of the Senior Notes. Cash Convertible Senior Notes Convertible Notes . In March 2010, we issued $175.0 million principal amount of 4.5% 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. The effective interest rate for the term of the Convertible Notes was approximately 11% , taking into account the amortization of the original issuance discount and deferred financing costs. At December 31, 2014 , the carrying amount of the Convertible Notes, net of $2.5 million of unamortized issuance discount, was $172.5 million . The following table provides additional information regarding the Convertible Notes (in millions of dollars): Year Ended December 31, 2015 2014 2013 Contractual coupon interest $ 2.0 $ 7.9 $ 7.9 Amortization of discount 2.4 9.1 8.2 Amortization of deferred financing costs 0.3 1.1 1.2 Total interest expense 1 $ 4.7 $ 18.1 $ 17.3 _______________ 1. A portion of the interest relating to the Convertible Notes was capitalized as construction in progress. We settled the Convertible Notes in cash on April 1, 2015. The conversion value of 154.261% of par was determined over a period of 50 consecutive trading days that ended on March 27, 2015, resulting in a total settlement amount 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 . Hedge Transactions . In connection with the issuance of our Convertible Notes, we purchased cash-settled call options ("Option Assets") relating to shares of our common stock that settled contemporaneously with the Convertible Notes. The Option Assets' settlement proceeds of $94.9 million equaled the Convertible Notes' conversion premium. 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, we sold net-share-settled warrants ("Warrants") relating to approximately 3.7 million notional shares of our common stock. During the Warrant settlement period from July 1, 2015 through December 18, 2015, we issued 1,015,185 shares of our common stock in connection with the Warrants according to the formula discussed in Note 12 . In addition, we paid a de minimis amount in cash to the holders for fractional shares at the end of the settlement period. See Note 12 for additional information relating to the settlement of our Warrants. 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") was amended and extended on December 1, 2015, with the term being extended from September 2016 to December 2020 and the commitment under the facility remaining unchanged at $300.0 million . Co-borrowers under the facility are the Company and four of our wholly-owned domestic operating subsidiaries: Kaiser Aluminum Investments Company, Kaiser Aluminum Fabricated Products, LLC, Kaiser Aluminum Washington, LLC and Kaiser Aluminum Alexco, LLC. The Revolving Credit Facility is secured by a first priority lien on substantially all of our accounts receivable, inventory and certain other of our related assets and proceeds and our domestic operating subsidiaries as well as certain machinery and equipment. Under the Revolving Credit Facility, we are able to borrow from time to time an aggregate commitment amount equal to the lesser of $300.0 million and a borrowing base comprised of: (i) 85% of eligible accounts receivable; (ii) the lesser of (a) 75% of eligible inventory and (b) 85% of the net orderly liquidation value of eligible inventory as determined in the most recent inventory appraisal ordered by the administrative agent; and (iii) certain eligible machinery and equipment supporting up to $60.0 million of borrowing availability, reduced by certain reserves, all as specified in the Revolving Credit Facility. Up to a maximum of $20.0 million of availability under the Revolving Credit Facility may be utilized for letters of credit. Borrowings under the Revolving Credit Facility bear interest at a rate equal to either a base prime rate or LIBOR, at our option, plus, in each case, a specified variable percentage determined by reference to the then-remaining borrowing availability under the Revolving Credit Facility. The Revolving Credit Facility may, subject to certain conditions and the agreement of lenders thereunder, be increased up to $400.0 million . We had $288.1 million of borrowing availability under the Revolving Credit Facility at December 31, 2015 , based on the borrowing base determination then in effect. At December 31, 2015 , there were no borrowings under the Revolving Credit Facility and $7.3 million was used to support outstanding letters of credit, leaving $280.8 million of net borrowing availability. The interest rate applicable to any overnight borrowings under the Revolving Credit Facility would have been 3.75% at December 31, 2015 . Amounts owed under the Revolving Credit Facility may be accelerated upon the occurrence of various events of default including, without limitation, the failure to make principal or interest payments when due and breaches of covenants, representations and warranties set forth therein. The Revolving Credit Facility places limitations on our ability and certain of our subsidiaries to, among other things, grant liens, engage in mergers, sell assets, incur debt, enter into sale and leaseback transactions, make investments, undertake transactions with affiliates, prepay certain debt, pay dividends and repurchase shares. We are allowed to prepay debt, pay dividends and repurchase shares in any amount if, after giving effect to such payment, $52.5 million or more would be available for us to borrow under the Revolving Credit Facility, or if after giving effect to such payment, $45.0 million or more would be available to us to borrow under the Revolving Credit Facility and we maintain a fixed charge coverage ratio at or above 1.15:1.0 . In addition, we are required to maintain a fixed charge coverage ratio on a consolidated basis at or above 1.0:1.0 if borrowing availability under the Revolving Credit Facility is less than $30.0 million . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Our accounting policy is to perform an annual goodwill impairment test during the fourth quarter of each year or whenever events or changes in circumstances indicate that goodwill or the carrying value of intangible assets may not be recoverable. As of December 31, 2015 , we performed a quantitative impairment test and determined that no impairment of our goodwill and intangible assets was required. Goodwill. We had goodwill of $37.2 million at both December 31, 2015 and December 31, 2014 . Such goodwill is related to our acquisitions of the Chandler, Arizona (Extrusion) facility and the Florence, Alabama facility and is included in the Fabricated Products segment. Intangible Assets. In 2015 and 2014 , our identifiable intangible assets were related to customer relationships. The original cost of these customer relationships was $38.5 million and accumulated amortization and net book value were $8.0 million and $30.5 million , respectively, at December 31, 2015 , and $6.4 million and $32.1 million , respectively, at December 31, 2014 . Amortization expense relating to definite-lived intangible assets is recorded in the Fabricated Products segment. Such expense was $1.6 million for both 2015 and 2014 and $1.7 million for 2013 . The expected amortization of intangible assets for each of the next five calendar years is $1.6 million and $22.5 million for years thereafter. |
Income Tax Matters
Income Tax Matters | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Matters | Income Tax Matters Tax Benefit (Provision) . (Loss) income before income taxes by geographic area was as follows (in millions of dollars): Year Ended December 31, 2015 2014 2013 Domestic $ (373.6 ) $ 102.1 $ 138.9 Foreign 1.8 5.0 4.3 (Loss) income before income taxes $ (371.8 ) $ 107.1 $ 143.2 Income taxes are classified as either domestic or foreign, based on whether payment is made or due to the United States or a foreign country. Certain income classified as foreign is also subject to domestic income taxes. Income tax benefit (provision) consisted of (in millions of dollars): Federal Foreign State Total 2015 Current $ 0.7 $ 2.1 $ 0.4 $ 3.2 Deferred 93.2 (1.2 ) 1.8 $ 93.8 Benefit applied to increase Additional paid in capital/ Other comprehensive income 33.5 0.4 4.3 $ 38.2 Income tax benefit $ 127.4 $ 1.3 $ 6.5 $ 135.2 2014 Current $ (1.0 ) $ 1.0 $ (0.6 ) $ (0.6 ) Deferred 6.4 0.3 5.1 $ 11.8 Expense applied to decrease Additional paid in capital/Other comprehensive income (41.6 ) (0.5 ) (4.4 ) $ (46.5 ) Income tax (provision) benefit $ (36.2 ) $ 0.8 $ 0.1 $ (35.3 ) 2013 Current $ 1.1 $ 16.2 $ (0.2 ) $ 17.1 Deferred (49.7 ) (0.5 ) (6.7 ) $ (56.9 ) Benefit (expense) applied to increase (decrease) Additional paid in capital/ Other comprehensive income 1.3 (0.1 ) 0.2 $ 1.4 Income tax (provision) benefit $ (47.3 ) $ 15.6 $ (6.7 ) $ (38.4 ) A reconciliation between the benefit from (provision for) income taxes and the amount computed by applying the federal statutory income tax rate to (loss) income before income taxes is as follows (in millions of dollars): Year Ended December 31, 2015 2014 2013 Amount of federal income tax benefit (provision) based on the statutory rate $ 130.1 $ (37.5 ) $ (50.1 ) (Increase) decrease in federal valuation allowances (0.6 ) — 0.1 Non-deductible compensation expense (0.2 ) (0.1 ) (0.3 ) Non-deductible expense (0.3 ) (0.3 ) (0.9 ) State income tax benefit (provision), net of federal benefit 1 4.2 — (4.4 ) Foreign income tax benefit 0.1 0.3 — Expiration of statute of limitations 1.7 2.3 4.6 Settlement with taxing authorities — — 4.4 Advance pricing agreement (0.2 ) — 2.9 Competent Authority settlement 0.4 — 5.3 Income tax benefit (provision) $ 135.2 $ (35.3 ) $ (38.4 ) ___________________________ 1. The State income tax benefit was $10.3 million in 2015, but was offset by a $3.1 million increase due to state tax rate and state law changes enacted during the current year and a $3.0 million increase relating to the expiration of certain current and future state net operating losses. State income taxes were $2.3 million in 2014, but were offset by a $1.6 million decrease due to lower tax rates in various states and a $0.7 million in the valuation allowance relating to certain state net operating losses. State income taxes of $4.4 million in 2013 included a $1.2 million increase in the valuation allowance relating to certain unused state net operating losses expected to expire. Deferred Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The components of our net deferred income tax assets were as follows (in millions of dollars): Year Ended December 31, 2015 2014 Deferred income tax assets: Loss and credit carryforwards $ 255.7 $ 275.4 VEBAs (see Note 6) 25.9 5.1 Other assets 38.7 37.8 Inventories — 18.7 Valuation allowances (21.2 ) (19.2 ) Total deferred income tax assets 299.1 317.8 Deferred income tax liabilities: Property, plant and equipment (79.6 ) (74.1 ) VEBAs (see Note 6) — (120.6 ) Inventories (9.4 ) (6.7 ) Total deferred income tax liabilities (89.0 ) (201.4 ) Net deferred income tax assets 1 $ 210.1 $ 116.4 __________________________ 1. Of the total net deferred income tax assets of $210.1 million , $49.6 million was included in Prepaid expenses and other current assets, $162.6 million was presented as Deferred tax assets, net and $2.1 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2015 . Of the total net deferred income tax assets of $116.4 million , $86.4 million was included in Prepaid expenses and other current assets and $30.9 million was presented as Deferred tax assets, net and $0.9 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2014 . Tax Attributes. At December 31, 2015 , we had $564.4 million of net operating loss ("NOL") carryforwards available to reduce future cash payments for income taxes in the United States. Of the $564.4 million of NOL carryforwards at December 31, 2015 , $1.7 million represents excess tax benefits related to the vesting of employee restricted stock, which will result in an increase in equity if and when such excess tax benefits are ultimately realized. The NOL carryforwards expire periodically through 2030. We also had $29.5 million of AMT credit carryforwards with an indefinite life, available to offset regular federal income tax requirements. To preserve the NOL carryforwards available to us, our certificate of incorporation includes certain restrictions on the transfer of our common stock. These transfer restrictions will expire in accordance with their terms on July 6, 2016. In assessing the realizability of deferred tax assets, management considers whether it is "more likely than not" that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers taxable income in carryback years, the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. Due to uncertainties surrounding the realization of some of our deferred tax assets, primarily including state NOL carryforwards sustained during the prior years and expiring tax benefits, we have a valuation allowance against our deferred tax assets. When recognized, the tax benefits relating to any reversal of this valuation allowance will be recorded as a reduction of income tax expense. The increase (decrease) in the valuation allowance was $2.0 million , $(0.7) million and $1.2 million in 2015 , 2014 and 2013, respectively. The increase in the valuation allowance in 2015 was primarily due to unutilized state NOL carryforwards and Federal Separate Return Limitation Year (SRLY) losses that were expected to expire. The decrease in the valuation allowance for 2014 was primarily due to the projected utilization of state NOL carryforwards. The increase in the valuation allowance in 2013 was primarily due to unutilized state NOL carryforwards that were expected to expire. Other . We and our subsidiaries file income tax returns in the U.S. federal jurisdiction and various states and foreign jurisdictions. Our tax returns for certain past years are still subject to examination by taxing authorities and the use of NOL carryforwards in future periods could trigger a review of attributes and other tax matters in years that are not otherwise subject to examination. We have gross unrecognized benefits relating to uncertain tax positions. A reconciliation of changes in the gross unrecognized tax benefits is as follows (in millions of dollars): Year Ended December 31, 2015 2014 2013 Gross unrecognized tax benefits at beginning of period $ 2.2 $ 3.8 $ 15.7 Gross increases for tax positions of prior years 0.1 — — Gross decreases for tax positions of prior years — — (7.6 ) Gross decrease for tax positions relating to lapse of a statute of limitation (0.6 ) (1.4 ) (3.3 ) Foreign currency translation — (0.2 ) (1.0 ) Gross unrecognized tax benefits at end of period $ 1.7 $ 2.2 $ 3.8 If and when the $1.7 million , $2.2 million and $3.8 million of gross unrecognized tax benefits at December 31, 2015 , December 31, 2014 and December 31, 2013 , respectively, are recognized, $0.6 million , $1.1 million and $2.7 million will be reflected, respectively, in our income tax provision and thus affect the effective tax rate in future periods. The change in gross unrecognized tax benefits during 2015 was due to the expiration of statutes. The change during 2014 was due to the expiration of statutes and foreign currency fluctuations. The change during 2013 was primarily due to the expiration of statutes, settlements with taxing authorities, foreign currency fluctuations and change in tax positions. In addition, we recognize interest and penalties related to unrecognized tax benefits in the income tax provision. We had $0.2 million and $1.4 million accrued for interest and penalties at December 31, 2015 and December 31, 2014 , respectively. Of these amounts, none were recorded as current liabilities and included in Other accrued liabilities on the Consolidated Balance Sheets at December 31, 2015 and December 31, 2014 . We recognized a decrease in interest and penalty of $1.2 million , $0.9 million and $5.2 million in our tax provision in 2015 , 2014 and 2013 , respectively. In connection with the gross unrecognized tax benefits (including interest and penalties) denominated in foreign currency, we incurred a foreign currency translation adjustment. During 2015 , 2014 and 2013 , the foreign currency impact on such liabilities resulted in $0.1 million , $0.3 million and $0.7 million currency translation adjustments, respectively, which increased Other comprehensive income. We do not expect our gross unrecognized tax benefits to significantly change within the next 12 months . |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | Employee Benefits Employee Plans. Employee benefit plans include: • A defined contribution 401(k) savings plan for hourly bargaining unit employees at nine of our production facilities based on the specific collective bargaining agreement at each facility. For active bargaining unit employees at three of these production facilities, we are required to make fixed rate contributions. For active bargaining unit employees at one of these production facilities, we are required to match certain employee contributions. For active bargaining unit employees at three of these production facilities, we are required to make both fixed rate contributions and concurrent matches. For active bargaining unit employees at two remaining production facilities, we are not required to make any contributions. Fixed rate contributions either: (i) range from (in whole dollars) $800 to $2,400 per employee per year, depending on the employee’s age, or (ii) vary between 2% to 10% of the employees’ compensation depending on their age and years of service for employees hired prior to January 1, 2004 or is a fixed 2% annual contribution for employees hired on or after January 1, 2004. We contributed $1.9 million to such plans during 2015 . • A defined contribution 401(k) savings plan for salaried and certain hourly employees providing for a concurrent match of up to 4% of certain contributions made by employees plus an annual contribution of between 2% and 10% of their compensation depending on their age and years of service to employees hired prior to January 1, 2004. All new hires on or after January 1, 2004 receive a fixed 2% contribution annually. We contributed $6.7 million to such plans during 2015 . • A defined benefit plan for salaried employees at our London, Ontario facility, with annual contributions based on each salaried employee’s age and years of service. At December 31, 2015 , approximately 59% of the plan assets were invested in equity securities and 37% of plan assets were invested in fixed income securities. The remaining plan assets were invested in short-term securities. Our investment committee reviews and evaluates the investment portfolio. The asset mix target allocation on the long-term investments is approximately 66% in equity securities, 30% in fixed income securities and the remaining assets in short-term securities. See Note 11 for additional information regarding the fair values of the Canadian pension plan assets. • A non-qualified, unfunded, unsecured plan of deferred compensation for key employees who would otherwise suffer a loss of benefits under our defined contribution plan as a result of the limitations imposed by the Internal Revenue Code of 1986 (the "Code"). Despite the plan being an unfunded plan, we make an annual contribution to a rabbi trust to fulfill future funding obligations, as contemplated by the terms of the plan. The assets in the trust are at all times subject to the claims of our general creditors and no participant has a claim to any assets of the trust. Plan participants are eligible to receive distributions from the trust subject to vesting and other eligibility requirements. Assets in the rabbi trust relating to the deferred compensation plan are accounted for as available for sale securities and are included in Other assets on the Consolidated Balance Sheets (see Note 2 ). Liabilities relating to the deferred compensation plan are included in Long-term liabilities on the Consolidated Balance Sheets (see Note 2 ). • An employment agreement with our chief executive officer extending through December 31, 2018. We also provide certain members of senior management, including each of our named executive officers, with benefits related to terminations of employment in specified circumstances, including in connection with a change in control, by us without cause and by the executive officer with good reason. VEBA Postretirement Obligations. Certain eligible retirees receive certain healthcare related benefits through participation in a voluntary employees' beneficiary association ("VEBA") that provides healthcare and medical cost reimbursement benefits for eligible retirees represented by certain unions and their surviving spouse and eligible dependents (the "Union VEBA") or a VEBA that provides healthcare related benefits for certain other retirees and their spouse and eligible dependents (the "Salaried VEBA" and, together with the Union VEBA, the "VEBAs"). The Union VEBA covers certain qualifying bargaining unit retirees and future retirees. The Salaried VEBA covers certain retirees who retired prior to the 2004 termination of the prior plan and employees who were hired prior to February 2002 and have subsequently retired or will retire with the requisite age and service. The Union VEBA is managed by four trustees, two of which are appointed by us and two of which are appointed by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO, CLC ("USW"). The Salaried VEBA is managed by trustees who are independent of us. The VEBAs' assets are managed by independent fiduciaries appointed by the VEBAs' trustees. Our primary financial obligation to the VEBAs is to make an annual variable cash contribution. The formula determining the annual variable contribution amount is 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. The variable cash contribution obligation to the Union VEBA will terminate in September 2017, while the obligation to the Salaried VEBA has no express termination date. As of December 31, 2015 , we determined that the variable contribution for 2015 was $19.6 million (comprised of $16.8 million to the Union VEBA and $2.8 million to the Salaried VEBA). These amounts will be paid during the first quarter of 2016 . The variable contribution relating to 2014 in the amount of $13.7 million was paid in 2015 . We have no claim to the assets of the VEBAs nor do we have any obligation to fund their liabilities. The VEBA plan designs and benefits paid by the VEBAs are at the sole discretion of the respective VEBA trustees and are outside our control. Nevertheless, we have historically accounted for the VEBAs as defined benefit postretirement plans with the current VEBA assets and future variable contributions from us and earnings thereon, operating as a cap on the benefits to be paid. Accordingly, we have historically accounted for net periodic postretirement benefit costs (income) in accordance with ASC Topic 715, Compensation – Retirement Benefits, and recorded any difference between the assets of each VEBA and our accumulated postretirement benefit obligation in our consolidated financial statements. Information necessary for the valuation of the net funded status of the plans must be obtained from the VEBAs on an annual basis. Under this accounting treatment, the funding status of each of the VEBAs could result in a liability or asset position on our Consolidated Balance Sheets. Such liability or asset has no impact on our cash flow or liquidity. Only our obligation to make an annual variable cash contribution can have a material impact to our cash flow or liquidity. 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. The collective bargaining agreement 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. As of December 31, 2015 , the estimated liability for the remaining variable cash contributions through September 2017 of $46.7 million in the aggregate was recorded in Other accrued liabilities and Long-term liabilities (see Note 2 ) of which $16.8 million was related to 2015 and will be paid in the first quarter of 2016, as noted above. The remaining $29.9 million is an estimate of the amounts due for 2016 (to be paid in 2017) and 2017 (to be paid in 2018). The final amount is subject to change until the close of each respective calendar year. The estimated liability for the remaining variable cash contributions will be adjusted quarterly based on our most current projections of cash flow (as defined) with the changes reflected in our Operating (loss) income. 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 predominantly non-cash loss of $306.9 million , net of a $186.5 million tax benefit, during 2015. Key Assumptions. The following data presents the key assumptions used and the amounts reflected in our consolidated financial statements with respect to our Canadian pension plan and the VEBAs. We use a December 31 measurement date for all of the plans. Assumptions used to determine benefit obligations as of the periods presented were as follows: Canadian Pension Plan VEBAs December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Salaried Union Salaried Discount rate 4.10 % 4.00 % 3.90 % 3.80 % 3.60 % Rate of compensation increase 3.00 % 3.00 % — — — Initial medical trend rate 1 — — — 7.00 % — Ultimate medical trend rate 1 — — — 5.00 % — _____________________ 1. The medical trend rate assumptions used for the Union VEBA at December 31, 2014 were provided by the Union VEBA and certain industry data were provided by our actuaries. The trend rate was assumed to decline to 5% by 2019 . Key assumptions made in computing the net asset/obligation of each VEBA and in total include: With respect to VEBA assets: • Based on the information received from the Salaried VEBA at December 31, 2015 and the VEBAs at December 31, 2014 , both the Salaried VEBA and Union VEBA assets were invested in various managed proprietary funds. VEBA plan assets are managed by an independent fiduciary selected by the applicable VEBA's trustees and are not under our control. • Our variable payment, if any, is treated as a funding/contribution policy and not counted as a VEBA asset at December 31 for actuarial purposes. With respect to VEBA obligations: • The accumulated postretirement benefit obligation ("APBO") for each VEBA was computed based on the level of benefits being provided by it at December 31, 2015 for the Salaried VEBA and December 31, 2014 for the VEBAs. • Since the Salaried VEBA was paying a fixed annual amount to its constituents at both December 31, 2015 and December 31, 2014 , no future cost trend rate increase has been assumed in computing the APBO for the Salaried VEBA. Assumptions used to determine net periodic benefit cost (income) for the years ended December 31 were: Canadian Pension Plan VEBAs 2015 2014 2013 2015 2014 2013 Salaried VEBA Union VEBA Salaried VEBA Union VEBA Salaried VEBA Discount rate 4.00 % 4.90 % 4.40 % 3.60 % 4.70 % 4.20 % 4.00 % 3.40 % Expected long-term return on plan assets 1 5.10 % 4.75 % 4.50 % 7.75 % 6.75 % 7.75 % 6.25 % 7.25 % Rate of compensation increase 3.00 % 3.00 % 3.00 % — — — — — Initial medical trend rate 2 — — — — 7.50 % — 8.00 % — Ultimate medical trend rate 2 — — — — 5.00 % — 5.00 % — _____________________ 1. The expected long-term rate of return assumption is based on the targeted investment portfolios provided to us by the VEBAs’ trustees. 2. The medical trend rate was assumed to decline to 5% by 2019 for each of 2014 and 2013 . Benefit Obligations and Funded Status. The following table presents the benefit obligations and funded status of our Canadian pension and the VEBAs as of December 31, 2015 and December 31, 2014 and the corresponding amounts that are included in our Consolidated Balance Sheets (in millions of dollars): Canadian Pension Plan VEBAs 2015 2014 2015 2014 Change in benefit obligation: Obligation at beginning of year $ 7.0 $ 6.6 $ 470.9 $ 374.7 Removal of Union VEBA — — (391.5 ) — Foreign currency translation adjustment (1.0 ) (0.5 ) — — Service cost 0.2 0.2 — 2.2 Interest cost 0.2 0.3 2.7 16.7 Prior service cost 1 — — 13.2 90.4 Actuarial loss (gain) 2 (0.1 ) 0.7 (11.2 ) 10.2 Benefits paid by Company (0.2 ) (0.3 ) — — Benefits paid by VEBAs — — (6.2 ) (24.7 ) Reimbursement from retiree drug subsidy 3 — — — 1.4 Obligation at end of year 6.1 7.0 77.9 470.9 Change in plan assets: Fair market value of plan assets at beginning of year 6.3 6.2 793.8 780.7 Removal of Union VEBA 4 — — (778.3 ) — Foreign currency translation adjustment (1.0 ) (0.5 ) — — Actual return on assets 0.3 0.6 0.1 22.7 Employer/Company contributions 4,5 0.3 0.3 49.5 13.7 Benefits paid by Company (0.2 ) (0.3 ) — — Benefits paid by VEBAs — — (6.2 ) (24.7 ) Reimbursement from retiree drug subsidy 3 — — — 1.4 Fair market value of plan assets at end of year 5.7 6.3 58.9 793.8 Net funded status 6 $ (0.4 ) $ (0.7 ) $ (19.0 ) $ 322.9 _____________________________ 1. The prior service cost relating to the Salaried VEBA in 2015 was primarily comprised of a $13.2 million loss due to an increase in the annual healthcare reimbursement benefit starting in 2016 for plan participants. The prior service cost relating to the VEBAs in 2014 was primarily comprised of: (i) a $60.5 million loss due to an increase in the healthcare premium reimbursement benefit in the Union VEBA; (ii) a $15.9 million loss resulting from the addition of a new death benefit starting in 2015 for plan participants in the Union VEBA; and (iii) a $14.0 million loss due to an increase in the annual healthcare reimbursement benefit starting in 2015 for plan participants in the Salaried VEBA. 2. The actuarial gain relating to the Salaried VEBA in 2015 was primarily comprised of: (i) a $5.5 million gain due to projected lower benefit utilization; (ii) a $2.0 million gain due primarily to reductions in the discount rates; and (iii) a $3.7 million gain due primarily to updated actuarial mortality rates. The actuarial gain relating to the VEBAs in 2014 was primarily comprised of: (i) a gain of $53.6 million due to projected lower benefit utilization; (ii) a gain of $18.0 million due to projected lower drug claim cost in the future because of lower than expected drug claim costs in 2014 in the Union VEBA; (iii) a gain of $0.4 million due primarily to a reduction in administrative cost in the Union VEBA. The actuarial gain relating to the VEBAs in 2014 was partially offset by: (i) a loss of $45.0 million due primarily to reductions in the discount rates; and (ii) a loss of $37.2 million due primarily to updated actuarial mortality rates in both VEBAs. 3. The Union VEBA was eligible for the retiree drug subsidy of the Medicare Modernization Act that went into effect January 1, 2006. As a result, we measured the Union VEBA’s obligations and costs for the year ended December 31, 2014 to take into account this subsidy. 4. Removal of Union VEBA and Employer/Company contributions each include $46.7 million of accrued variable cash contribution, of which: (i) $16.8 million relates to the Union VEBA for the 2015 year, which will be paid during the first quarter of 2016 and (ii) $29.9 million relates to the estimated accrual for the Union VEBA with respect to the variable contributions for 2016 and 2017. 5. In addition to the $46.7 million discussed above, Employer/Company contributions included $2.8 million of accrued variable cash contribution related to the Salaried VEBA for the 2015 year, which will be paid during the first quarter of 2016. For the calendar year 2014 , we accrued a total (Union and Salaried) liability for a variable cash contribution of $13.7 million , which was paid in the first quarter of 2015 . 6. Net funded status of $19.0 million relating to the Salaried VEBA at December 31, 2015 was presented as Net liabilities of Salaried VEBA on the Consolidated Balance Sheet. Net funded status of $322.9 million at December 31, 2014 was comprised of $340.1 million presented as Net assets of Union VEBA on the Consolidated Balance Sheet, offset by $17.2 million presented as Net liabilities of Salaried VEBA. The following table presents the net assets (liabilities) of each VEBA as of the periods presented. Such information is also included in the tables required under GAAP above which roll forward the assets and obligations (in millions of dollars): Salaried VEBA Union VEBA December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Accumulated plan benefit obligation $ (77.9 ) $ (79.4 ) $ — $ (391.5 ) Plan assets 58.9 62.2 — 731.6 Net funded status $ (19.0 ) $ (17.2 ) $ — $ 340.1 The accumulated benefit obligation for the Canadian defined benefit pension plan was $5.4 million and $6.2 million at December 31, 2015 and December 31, 2014 , respectively. We expect to contribute $0.3 million to the Canadian pension plan in 2016 . As of December 31, 2015 , the net benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter are as follows (in millions of dollars): Benefit Payments Due by Period 2016 2017 2018 2019 2020 2020-2023 Canadian pension plan benefit payments $ 0.2 $ 0.2 $ 0.2 $ 0.3 $ 0.3 $ 1.6 Salaried VEBA benefit payments 1 7.6 7.3 7.0 6.7 6.4 27.2 Total net benefits $ 7.8 $ 7.5 $ 7.2 $ 7.0 $ 6.7 $ 28.8 __________________________________ 1. Such amounts are based on benefit amounts and certain key assumptions obtained from the Salaried VEBA. The amount of loss which is recognized in the Consolidated Balance Sheets (in Accumulated other comprehensive loss) associated with our Canadian defined benefit pension plan and the VEBAs (before tax) that have not yet been reflected in net periodic benefit cost (income) were as follows for the years ended December 31 (in millions of dollars): Canadian Pension Plan Salaried VEBA Union VEBA 2015 2014 2015 2014 2015 2014 Accumulated net actuarial (loss) gain $ (1.0 ) $ (1.9 ) $ (13.6 ) $ (21.5 ) $ — $ 65.1 Transition assets 0.1 0.2 — — — — Prior service cost — — (35.9 ) (25.7 ) — (171.7 ) Loss recognized in Accumulated other comprehensive loss $ (0.9 ) $ (1.7 ) $ (49.5 ) $ (47.2 ) $ — $ (106.6 ) The amount in Accumulated other comprehensive loss that has not yet been recognized as a component of net periodic postretirement benefit cost (income) at December 31, 2015 that is expected to be recognized in 2016 is $4.5 million for the Salaried VEBA. For the Canadian pension plan, such amounts were nominal at December 31, 2015 . Of the $4.5 million relating to the Salaried VEBA, $4.0 million is related to amortization of prior service cost and $0.5 million is related to amortization of net actuarial gain (loss). See the Statement of Comprehensive (Loss) Income for reclassification adjustments of other comprehensive income (loss) that were recognized as components of net periodic benefit cost (income) for 2015 , 2014 and 2013 . Fair Value of Plan Assets. See Note 11 for the fair values of the assets of the Canadian pension plan and the VEBAs. Components of Net Periodic Benefit Cost (Income). Our results of operations included the following impacts associated with the Canadian defined benefit plan and the VEBAs: (a) charges for service rendered by employees; (b) a charge for accretion of interest; (c) a benefit for the return on plan assets; and (d) amortization of net gains or losses on assets, prior service costs associated with plan amendments and actuarial differences. The following table presents the components of net periodic benefit cost (income) for the years ended December 31 (in millions of dollars): Canadian Pension Plan VEBAs 2015 2014 2013 2015 2014 2013 Service cost 1 $ 0.3 $ 0.2 $ 0.3 $ — $ 2.2 $ 2.5 Interest cost 0.3 0.3 0.3 2.7 16.7 14.6 Expected return on plan assets (0.3 ) (0.3 ) (0.3 ) (4.3 ) (51.4 ) (45.1 ) Amortization of prior service cost 2 — — — 3.0 10.6 4.2 Amortization of net actuarial loss (gain) 0.1 0.1 0.2 1.0 (1.8 ) 1.3 Net periodic benefit cost (income) 0.4 0.3 0.5 2.4 (23.7 ) (22.5 ) __________________________ 1. The service cost related to the Salaried VEBA was insignificant for all periods presented. 2. We amortize prior service cost on a straight-line basis over the average remaining years of service to full eligibility for benefits of the active plan participants. The following tables present the total charges (income) related to all benefit plans for the periods presented (in millions of dollars): Year Ended December 31, 2015 2014 2013 Included within Fabricated Products: Canadian pension plan $ 0.4 $ 0.3 $ 0.5 Deferred compensation plan 0.1 0.2 0.3 Defined contribution plans 7.8 7.3 7.2 Total Fabricated Products 1 $ 8.3 $ 7.8 $ 8.0 Included within All Other: Net periodic postretirement benefit cost (income) relating to VEBAs 2.4 (23.7 ) (22.5 ) Loss on removal of Union VEBA net assets 493.4 — — Deferred compensation plan 0.3 0.7 0.9 Defined contribution plans 0.8 0.8 0.7 Total All Other 2 $ 496.9 $ (22.2 ) $ (20.9 ) Total $ 505.2 $ (14.4 ) $ (12.9 ) ___________________________ 1. Substantially all of the Fabricated Products segment’s charges related to employee benefits were in Cost of products sold, excluding depreciation and amortization and other items with the remaining balance in SG&A and R&D. 2. Charges (income) related to VEBAs is included within the Statements of Consolidated (Loss) Income as Net periodic postretirement benefit cost (income) relating to VEBAs with the remaining balance in SG&A and R&D. |
Multiemployer Pension Plans
Multiemployer Pension Plans | 12 Months Ended |
Dec. 31, 2015 | |
Multiemployer Plans [Abstract] | |
Multiemployer Pension Plans Disclosure | Multiemployer Pension Plans Overview. We contribute to multiemployer defined benefit pension plans under the terms of collective bargaining agreements that cover our union-represented employees at certain facilities. At December 31, 2015 , approximately 53% of our total employees were union-represented employees at facilities participating in these multiemployer pension plans. We currently estimate that contributions will range from $3.0 million to $5.0 million per year through 2016. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. • If we choose to stop participating in some of our multiemployer plans, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability. Our participation in multiemployer pension plans for the year ended December 31, 2015 is outlined in the table below: Pension Fund Employer Identification Number Pension Protection Act Zone Status 1 FIP/RP Status Pending/Implemented in 2015 2 Contributions of the Company Surcharge Imposed in 2015 Expiration Date of Collective-Bargaining Agreement 2015 2014 2013 2015 2014 (in millions of dollars) Steelworkers Pension Trust (USW) 3 236648508 Green Green No $ 3.5 $ 3.1 $ 2.9 No Mar 2017 - Sep 2020 Other Funds 4 0.9 0.9 0.9 $ 4.4 $ 4.0 $ 3.8 ________________ 1. The most recent Pension Protection Act zone status available in 2015 and 2014 for the Steelworkers Pension Trust is for the plan's year-end at December 31, 2014 and December 31, 2013 , respectively. The zone status is based on information that we received from the plan and is certified by the plan's actuary. Among other factors, plans in the green zone are at least 80 percent funded. 2. The "FIP/RP Status Pending/Implemented" column indicates if a Financial Improvement Plan (FIP) or a Rehabilitation Plan (RP) is either pending or has been implemented for the plan under the Pension Protection Act. 3. We are party to three USW collective bargaining agreements that require contributions to the Steelworkers Pension Trust. As of December 31, 2015 , USW collective bargaining agreements covering employees at the Newark and Trentwood facilities covered 85% of our USW-represented employees and expires in September 2020. Our monthly contributions per hour worked by each bargaining unit employee at the Newark and Trentwood facilities are (in whole dollars) $1.50 and will increase to $1.75 in 2019. The union contracts covering employees at the Richmond, Virginia facility and Florence, Alabama facility cover 10% and 5% of our USW-represented employees, respectively, and expire in November 2017 and March 2017, respectively. 4. Other Funds consists of plans that are not individually significant. We were not listed in any of the plans' Forms 5500 or the Canada-Wide Industrial Pension Plan financial statements as providing more than 5% of the total contributions for any of the plan years disclosed. At December 31, 2015 , Forms 5500 were not available for the plan years ending in 2015 . Further, there were no significant changes to the number of employees covered by our multiemployer plans that would affect the period-to-period comparability of the contributions for the years presented. |
Employee Incentive Plans
Employee Incentive Plans | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2015 2014 2013 Cost of products sold, excluding depreciation and amortization and other items $ 4.7 $ 4.7 $ 4.6 SG&A and R&D 9.3 8.0 11.1 Total costs recorded in connection with STI Plans $ 14.0 $ 12.7 $ 15.7 The following table presents the allocation of the charges detailed above, by segment (in millions of dollars): Year Ended December 31, 2015 2014 2013 Fabricated Products $ 10.2 $ 9.6 $ 11.2 All Other 3.8 3.1 4.5 Total costs recorded in connection with STI Plans $ 14.0 $ 12.7 $ 15.7 Long-Term Incentive Programs ("LTI Programs") General . Executive officers and other key employees of the Company, as well as non-employee 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"). The Equity Incentive Plan permits the granting of awards in the form of options to purchase common shares, stock appreciation rights, shares of non-vested and vested stock, restricted stock units, performance shares, performance units and other awards. The Equity Incentive Plan will expire on July 6, 2016 and no grants will be made thereunder after that date. Our Board of Directors may, in its discretion, terminate the Equity Incentive Plan at any time. The termination of the Equity Incentive Plan will not affect the rights of participants or their successors under any awards outstanding and not exercised in full on the date of termination and all grants made on or prior to the date of termination will remain in effect thereafter subject to the terms of the applicable grant agreement and the Equity Incentive Plan. Subject to certain adjustments that may be required from time to time to prevent dilution or enlargement of the rights of participants under the Equity Incentive Plan, a total of 2,722,222 common shares have been authorized for issuance under the Equity Incentive Plan. At December 31, 2015 , 709,362 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 beginning in 2014 ("TSR-Based Performance Shares") are subject to performance conditions pertaining to our total shareholder return ("TSR") over a three-year performance period 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 SG&A and R&D. Non-cash compensation expense by type of award under LTI Programs was as follows for each period presented (in millions of dollars): Year Ended December 31, 2015 2014 2013 Non-vested common shares and restricted stock units $ 4.4 $ 3.9 $ 4.3 EVA-Based Performance Shares 0.9 1.0 2.3 TSR-Based Performance Shares 4.0 1.9 — Total non-cash compensation expense $ 9.3 $ 6.8 $ 6.6 The following table presents the allocation of the charges detailed above, by segment (in millions of dollars): Year Ended December 31, 2015 2014 2013 Fabricated Products $ 3.5 $ 3.2 $ 2.2 All Other 5.8 3.6 4.4 Total non-cash compensation expense $ 9.3 $ 6.8 $ 6.6 Recognized tax benefits relating to non-cash compensation expense were $3.5 million , $2.5 million and $2.4 million for 2015 , 2014 and 2013 , respectively. Unrecognized Gross Compensation Cost Data. The following table presents unrecognized gross compensation cost data by type of award as of December 31, 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 $ 5.8 1.9 EVA-Based Performance Shares $ 0.3 0.2 TSR-Based Performance Shares $ 7.5 1.9 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 year ended December 31, 2015 is 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 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 72.09 2,325 69.83 — — 150,424 95.68 Vested (63,515 ) 53.68 (2,161 ) 52.91 (49,945 ) 44.81 — — Forfeited 1 (987 ) 66.93 — — (1,212 ) 57.54 (770 ) 89.12 Canceled 1 — — — — (147,314 ) 44.59 — — Outstanding at December 31, 2015 156,553 $ 67.20 5,521 $ 66.64 155,105 $ 57.76 299,877 $ 89.43 _____________________ 1. For EVA-Based Performance Shares and TSR-Based Performance Shares, the number of shares granted and forfeited are presented at their maximum payout; and the number of shares canceled includes the number of shares that did not vest due to EVA performance results falling below those required for maximum payout. The total grant-date fair value for shares granted was $11.8 million in 2015 and $14.8 million in both 2014 and 2013 . The total grant-date fair value for shares that vested during 2015 , 2014 and 2013 was $5.8 million , $5.5 million and $5.1 million , respectively. The weighted-average grant-date fair value per share for shares granted by type of award was as follows for each period presented: Year Ended December 31, 2015 2014 2013 Non-vested common shares $ 72.09 $ 66.42 $ 58.65 Restricted stock units $ 69.83 $ 67.42 $ 57.70 EVA-Based Performance Shares $ — $ — $ 57.75 TSR-Based Performance Shares $ 95.68 $ 83.18 $ — Stock Options. We have fully-vested stock options that were granted in 2007. There were 16,645 fully-vested options outstanding as of both December 31, 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 1.25 and 2.25 years, respectively. The average fair value of the options granted was $39.90 . During 2015 , no options were granted, exercised or forfeited and no options had expired. 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 Net (loss) income as a period expense. During each of the periods ending December 31, 2015 , 2014 and 2013 , 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 2015 , 2014 and 2013 , 37,009 , 33,696 and 40,075 commons 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 | 12 Months Ended |
Dec. 31, 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 letters of credit (see Note 3 and Note 10 ). Rental expenses were $8.2 million , $7.4 million and $7.5 million for 2015 , 2014 and 2013 , respectively. There are renewal options in various operating leases subject to certain terms and conditions. Minimum rental commitments under operating leases at December 31, 2015 were as follows (in millions of dollars): Year Ended December 31, 2016 2017 2018 2019 2020 2021 and Thereafter Minimum rental commitments $ 6.2 $ 5.1 $ 4.1 $ 3.9 $ 2.2 $ 25.8 Our purchase obligations at December 31, 2015 consisted of: (i) various contracts with suppliers of aluminum that require us to purchase minimum quantities of aluminum in 2016 at a price to be determined at the time of purchase based primarily on the underlying metal price at that time; (ii) energy contracts requiring us to purchase minimum quantities of energy in future years at a fixed price; and (iii) cash commitments for future equipment purchases. Amounts to be purchased in 2016 under the variable priced metal contracts totaled $140.6 million and are included in the table below based on minimum quantities at the metal price as of December 31, 2015 . We believe the minimum quantities are lower than our current requirements for aluminum. Actual quantities and actual metal prices at the time of purchase could be different. All remaining amounts in the table below relate to the fixed price electricity contracts discussed above. The total amounts due under purchase obligations as of December 31, 2015 were as follows (in millions of dollars): Year Ended December 31, 2016 2017 2018 2019 2020 2021 and Thereafter Raw materials $ 179.3 $ — $ — $ — $ — $ — Energy 10.3 9.5 5.6 0.6 0.6 1.5 Capital equipment 5.2 0.1 — — — — Total purchase obligations $ 194.8 $ 9.6 $ 5.6 $ 0.6 $ 0.6 $ 1.5 Environmental Contingencies. We are subject to a number of environmental laws and regulations, to potential fines or penalties assessed for alleged breaches of such laws and regulations and to potential claims based upon such laws and regulations. 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. The following table presents the changes in such accruals, which are primarily included in Long-term liabilities (in millions of dollars): Year Ended December 31, 2015 2014 2013 Beginning balance $ 19.3 $ 22.8 $ 21.7 Additional accruals 1.3 0.8 4.5 Less expenditures (2.0 ) (4.3 ) (3.4 ) Ending balance $ 18.6 $ 19.3 $ 22.8 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 and receiving approval from Washington State Ecology. Also in cooperation with Washington State Ecology, we began construction of a pilot test facility to implement the treatability study and evaluate the feasibility of removing PCBs from ground water under the Trentwood facility. As pilot testing has only begun and the success of the new methodology cannot be reasonably determined at this time, it is possible we may need to make upward adjustments to our related accruals as facts and cost estimates regarding the groundwater treatment method become available. 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 and 2015, 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 work continues and progresses to a final risk assessment and feasibility study, we will establish and update estimates for probable and estimable remediation, 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 in the next 12 to 18 months . At December 31, 2015 , our environmental accrual of $18.6 million represented our estimate of the incremental remediation cost based on: (i) proposed alternatives in the final feasibility study related to the 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 $24.7 million over the remediation period. It is reasonably possible that our recorded estimate will 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 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 | 12 Months Ended |
Dec. 31, 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 operating officer, chief financial officer, chief accounting officer, treasurer and vice president of 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 are therefore expected to be highly effective hedges. During 2015 , we entered into forward contracts designated as cash flow hedges to purchase euros. As of December 31, 2015 , we had open contracts with maturity dates between one month and 12 months related to these foreign currency forward contracts. The notional amounts of these foreign currency forward contracts totaled 4.7 million euros at December 31, 2015 with an average contract exchange rate of 1.15 euro to US dollar. The effective portion of the fair value on these instruments is recorded within Other comprehensive (loss) income and is reclassified into the Statements of Consolidated (Loss) Income on the same line item and the same period in which the underlying equipment is depreciated. We had no such reclassifications into Net (loss) income during 2015 and anticipate no such reclassifications for the next 12 months. For 2015 , we recorded an unrealized loss of $0.3 million on the effective portions of our designated foreign currency cash flow hedges, resulting in an ending balance in Accumulated other comprehensive loss related to the cash flow hedges of $0.3 million at December 31, 2015 . We incurred no ineffectiveness on these hedges during 2015 . There were no forward contracts designated as cash flow hedges as of December 31, 2014. 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. 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. Additionally, in certain instances, we enter into firm-price arrangements with our customers for stipulated volumes to be delivered in the future. Because we generally purchase primary and secondary aluminum on a floating price basis, the lag in passing through metal price movements to customers on some of our higher value added products sold on a spot basis and the volume that we have committed to sell to our customers under a firm-price arrangement create metal price risk for us. We use third-party hedging instruments to limit exposure to metal price risk related to the metal pass through lag on some of our products and firm-price customer sales contracts. See Note 11 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 at December 31, 2015 was $14.6 million , and we had no collateral posted as of that date. 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. Hedges Relating to the Convertible Notes As described in Note 3 , in 2010 we issued $175.0 million principal amount of Convertible Notes due on April 1, 2015, which could only be settled in cash, and we purchased Option Assets that settled at the same time as the Convertible Notes to hedge their cash conversion feature. We accounted for the Option Assets as derivative instruments (assets) and the Bifurcated Conversion Feature of the Convertible Notes as a derivative liability, separate from the Convertible Notes. Upon settlement, the Option Assets' proceeds of $94.9 million equaled and offset the cash conversion premium, represented by the Bifurcated Conversion Feature, that we paid on the Convertible Notes. See Note 11 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): Year Ended December 31, 2015 2014 2013 Included in Other Comprehensive (Loss) Income: Unrealized (loss): Foreign Currency $ (0.3 ) $ — $ — Included in Statement of Consolidated (Loss) Income: Realized (loss) gain 1 : Aluminum (27.3 ) 6.9 (5.5 ) Natural Gas (5.4 ) 1.0 (1.8 ) Electricity (1.9 ) (0.1 ) 0.8 Total realized (loss) gain: $ (34.6 ) $ 7.8 $ (6.5 ) Unrealized (loss) gain 2 : Non-designated hedges of operational risk: Aluminum $ (4.6 ) $ (2.6 ) $ (3.1 ) Natural Gas (0.5 ) (6.0 ) 2.6 Electricity 1.7 (1.8 ) 1.1 Foreign Currency — — 0.1 Total non-designated hedges of operational risk (3.4 ) (10.4 ) 0.7 Option Assets relating to the Convertible Notes 3 — 5.2 24.2 Bifurcated Conversion Feature of the Convertible Notes — (1.6 ) (21.0 ) Total unrealized (loss) gain $ (3.4 ) $ (6.8 ) $ 3.9 ______________________ 1. Realized (loss) gain on hedges of operational risk are recorded within Cost of products sold, excluding depreciation, amortization and other items. 2. Unrealized (loss) gain on hedges of operational risk are recorded within Unrealized loss (gain) on derivative instruments. 3. Unrealized (loss) gain on financial derivatives are recorded within Other (expense) income, net. The following table summarizes our material derivative positions at December 31, 2015 : Aluminum Maturity Period (month/year) Notional Amount of Contracts (mmlbs) Call option purchase contracts 1/16 through 6/16 4.7 Fixed price purchase contracts 1/16 through 12/17 132.9 Fixed price sales contracts 1/16 through 10/16 3.0 Midwest premium swap contracts 1 1/16 through 12/17 84.9 Natural Gas 2 Maturity Period (month/year) Notional Amount of Contracts (mmbtu) Fixed price purchase contracts 1/16 through 12/18 7,000,000 Euro Maturity Period (month/year) Notional Amount of contracts (euro) Fixed price purchase contracts 3/16 through 12/16 4,699,750 _________________________ 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 December 31, 2015 , we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 73% , 72% and 59% of the expected natural gas purchases for 2016 , 2017 and 2018 , respectively. As of December 31, 2015 , our Mid-C International Commodity Exchange-based electricity hedge positions had all settled. Physical delivery commitments with energy companies are in place to cover exposure to fluctuations in prices for approximately 55% of the expected electricity purchases for both 2016 and 2017 . 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 December 31, 2015 (in millions of dollars): Derivative Assets and Collateral Held by Counterparty Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Counterparty (with netting agreements) $ 1.3 $ — $ 1.3 $ 1.3 $ — $ — Counterparty (with partial netting agreements) 0.3 — 0.3 0.3 — — Total $ 1.6 $ — $ 1.6 $ 1.6 $ — $ — Derivative Liabilities and Collateral Held by Counterparty Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Counterparty (with netting agreements) $ (8.5 ) $ — $ (8.5 ) $ (1.3 ) $ — $ (7.2 ) Counterparty (with partial netting agreements) (7.7 ) — (7.7 ) (0.3 ) — (7.4 ) Total $ (16.2 ) $ — $ (16.2 ) $ (1.6 ) $ — $ (14.6 ) 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 of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset 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 of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset 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 consist primarily of the fair value of the Bifurcated Conversion Feature and Option Assets at December 31, 2014 (see Note 11 ). |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 Salaried VEBA at December 31, 2015 , both VEBAs at December 31, 2014 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 6 ). 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 the affected 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 December 31, 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 December 31, 2015 and December 31, 2014 was a net liability of $14.6 million and $11.1 million , respectively. The increase in the net liability position during 2015 was primarily due to changes in the underlying commodity and energy prices, as well as settlement of asset positions during such period. Changes in the fair value of our derivative contracts relating to non-designated hedges of operational activities are reflected in Operating (loss) income (see Note 10 ). VEBA and Canadian Pension Plan Assets. The plan assets of the Salaried VEBA and our Canadian pension plan are measured annually on December 31 and reflected in our Consolidated Balance Sheets at fair value. As discussed further below, the plan assets of the Union VEBA were treated in this manner at December 31, 2014, but not December 31, 2015. In determining the fair value of the plan assets at an 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 collective bargaining agreement, which 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 year ended December 31, 2015 based on the valuation at December 31, 2014 (see Note 6 ). We therefore did not measure the fair value of the plan assets of the Union VEBA at December 31, 2015 . The plan assets of our Canadian pension plan are managed by advisors selected by us, with the investment portfolio subject to periodic review and evaluation by our investment committee. The investment of assets in the Canadian pension plan is based upon the objective of maintaining a diversified portfolio of investments in order to minimize concentration of credit and market risks (such as interest rate, currency, equity price and liquidity risks). The degree of risk and risk tolerance take into account the obligation structure of the plan, the anticipated demand for funds and the maturity profiles required from the investment portfolio in light of these demands. Certain plan assets are valued based upon unadjusted quoted market prices in active markets that are accessible at the measurement date for identical, unrestricted assets (e.g., liquid securities listed on an exchange). Such assets are classified within Level 1 of the fair value hierarchy. Valuation of other invested plan assets is based on significant observable inputs (e.g., valuations derived from actual market transactions, broker-dealer supplied valuations, or correlations between a given U.S. market and a non-U.S. security). Valuation model inputs can generally be verified and valuation techniques do not involve significant judgment. The fair values of such financial instruments are classified within Level 2 of the fair value hierarchy. Available for Sale Securities. We hold debt investment securities that are accounted for as available for sale 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 December 31, 2015 , the remaining maturity period with respect to short-term investments ranged from one month to approximately three 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. At December 31, 2015 and December 31, 2014 , the total unrealized loss, net of tax, included in accumulated other comprehensive (loss) 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 1 and Note 6 ). Such assets are accounted for as available for sale securities and are measured and recorded at fair value based on the NAV 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 value of the Convertible Notes and Senior Notes is based on their trading prices and is considered a Level 1 input 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): December 31, 2015 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Derivative Instruments (Non-Designated Hedges): Aluminum – Call option purchase contracts $ — $ 0.2 $ — $ 0.2 Fixed price purchase contracts — 0.3 — 0.3 Fixed price sales contracts — 0.2 — 0.2 Midwest premium swap contracts — — 0.9 0.9 Salaried VEBA and Canadian Pension Plan: Fixed income investment funds in registered investment companies 1 — 15.7 — 15.7 Equity investment funds in registered investment companies 2 — 23.8 — 23.8 Cash and money market investments 3 1.9 — — 1.9 Diversified investment funds in registered investment companies 4 14.7 5.7 — 20.4 All Other Financial Assets: Cash and cash equivalents 5 40.3 32.2 — 72.5 Short-term investments — 30.0 — 30.0 Deferred compensation plan assets — 7.3 — 7.3 Total assets $ 56.9 $ 115.4 $ 0.9 $ 173.2 December 31, 2015 Level 1 Level 2 Level 3 Total FINANCIAL LIABILITIES: Derivative Instruments (Non-Designated Hedges): Aluminum – Fixed price purchase contracts $ — $ (8.9 ) $ — $ (8.9 ) Fixed price sales contracts — (0.1 ) — (0.1 ) Midwest premium swap contracts — — (0.3 ) (0.3 ) Natural Gas – Fixed price purchase contracts — (6.7 ) — (6.7 ) Derivative Instruments (Designated Hedges): Foreign Currency – Euro forward purchase contracts — (0.2 ) — (0.2 ) All Other Financial Liabilities: Senior Notes (207.3 ) — — (207.3 ) Total liabilities $ (207.3 ) $ (15.9 ) $ (0.3 ) $ (223.5 ) 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 VEBAs and Canadian Pension Plan Fixed income investment funds in registered investment companies 1 54.0 340.3 — 394.3 Mortgage-backed securities — 30.1 — 30.1 Corporate debt securities 6 — 75.4 — 75.4 Equity investment funds in registered investment companies 2 — 191.3 — 191.3 United States Treasury securities — 39.5 — 39.5 Municipal debt securities — 1.8 — 1.8 Cash and money market investments 3 19.3 — — 19.3 Asset-backed securities — 8.1 — 8.1 Diversified investment funds in registered investment companies 4 20.4 6.2 — 26.6 All Other Financial Assets Cash and cash equivalents 5 29.5 148.2 — 177.7 Short-term investments — 114.0 — 114.0 Deferred compensation plan assets — 7.3 — 7.3 Total assets $ 123.2 $ 1,046.9 $ 1.0 $ 1,171.1 December 31, 2014 Level 1 Level 2 Level 3 Total 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 ) _________________________ 1. This category represents investments in various fixed income funds with multiple registered investment companies. Such funds invest in diversified portfolios, including: (i) marketable fixed income securities, such as (a) U.S. Treasury and other government and agency securities, (b) municipal bonds, (c) mortgage-backed securities, (d) asset-backed securities, (e) corporate bonds, notes and debentures in various sectors, (f) preferred and common stock, (g) investments in affiliated and other investment companies, (h) short-term investments and other net assets, and (i) repurchase agreements and reverse repurchase agreements; (ii) other commingled investments; (iii) investment grade debt; (iv) fixed income instruments which may be represented by options, future contracts or swap agreements; and (v) cash and cash equivalents. The fair value of certain assets related to the Union VEBA in this category as of December 31, 2014 was estimated using the NAV per share of the investments. 2. This category represents investments in equity funds that invest in portfolios comprised of: (i) equity and equity-related securities of U.S. and non-U.S. issuers across all market capitalizations; (ii) common stock in investment trust funds; and (iii) other short-term investments. The fair value of assets related to the Union VEBA presented in this category as of December 31, 2014 was estimated using the NAV per share of the equity fund investments. 3. This category represents cash and investments in various money market funds. 4. The plan assets are invested in investment funds that hold a diversified portfolio of: (i) U.S and international debt and equity securities; (ii) fixed income securities such as corporate bonds and government bonds; (iii) mortgage-related securities; and (iv) cash and cash equivalents. The fair value of certain assets related to the Union VEBA in this category as of December 31, 2014 was estimated using the NAV per share of the investments. 5. See Note 2 for components of cash and cash equivalents. 6. This category represents investments in fixed income corporate securities in various sectors. Investments in the industrial, financial and utilities sectors in 2014 represented approximately 51% , 37% and 12% of the total portfolio in this category, respectively. The fair value of certain assets related to the Union VEBA in this category as of December 31, 2014 was estimated using the NAV per share of the investments. 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 December 31, 2015 (in millions of dollars) Valuation Technique Unobservable Input Settlement Period Price Curve Range ($ in unit price) Assets: Midwest premium contracts $ 0.9 Discounted fair value Forward price curve Jan-16 through Dec-17 $0.084 per metric ton to $0.086 per metric ton Liabilities: Midwest premium contracts $ (0.3 ) Discounted fair value Forward price curve Jan-16 through Dec-17 $0.084 per metric ton to $0.086 per metric ton The following table presents a reconciliation of activity for the Level 3 Midwest premium derivative contracts on a net basis (in millions of dollars): Year Ended December 31, 2015 2014 Fair value measurement at beginning of period $ 1.0 $ 1.1 Total realized/unrealized (loss) gain included in: Cost of goods sold, excluding depreciation and amortization and other items and Unrealized loss (gain) on derivative instruments (3.9 ) 4.4 Transactions involving Level 3 derivative contracts: Purchases (4.0 ) 2.8 Sales — — Issuances — — Settlements 7.5 (7.3 ) Transactions involving Level 3 derivatives - net 3.5 (4.5 ) Transfers in and (or) out of Level 3 valuation hierarchy — — Fair value measurement at end of period $ 0.6 $ 1.0 Total loss included in Unrealized loss (gain) on derivative instruments, attributable to the change in unrealized gain/loss relating to derivative contracts held at December 31: $ 0.6 $ 1.0 Fair Values of Non-Financial Assets and Liabilities CAROs. The inputs in estimating the fair value of CAROs include: (i) the timing of when any such CARO cash flows may be incurred; (ii) incremental costs associated with special handling or treatment of CARO materials; and (iii) the credit-adjusted risk-free rate applicable at the time additional CARO cash flows are estimated; all of which are considered Level 3 inputs as they involve significant judgment from us. The following table summarizes the activity relating to our CARO liabilities (in millions of dollars): Year Ended December 31, 2015 2014 2013 Beginning balance $ 4.8 $ 4.4 $ 4.1 Liabilities settled during the period (0.2 ) — (0.2 ) Accretion expense 0.3 0.4 0.4 Adjustment to accretion expense due to revisions to estimated cash flow and timing of expenditure 1 — — 0.1 Ending balance $ 4.9 $ 4.8 $ 4.4 __________________________________________ 1. The adjustments in 2013 did not have a material impact on the basic and diluted net income per share for 2013. The estimated fair value of CARO liabilities at December 31, 2015 and December 31, 2014 were both based upon the application of a weighted-average credit-adjusted risk-free rate of 8.7% . CAROs are included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2 ). During 2015 , we performed a review of our property, plant and equipment held for future development that we determined not to deploy for future use, resulting in impairment charges to reflect the scrap value of such assets (see Note 1 ). With the exception of the impairment of these assets, we concluded that none of our non-financial assets, including goodwill and intangible 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 at December 31, 2015 and December 31, 2014 . |
Net (Loss) Income Per Share
Net (Loss) Income Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Share | Net (Loss) Income Per Share Basic and diluted net (loss) income per share for 2015 , 2014 and 2013 were calculated as follows (in millions of dollars, except share and per share amounts): Year Ended December 31, 2015 2014 2013 Numerator: Net (loss) income $ (236.6 ) $ 71.8 $ 104.8 Denominator – Weighted-average common shares outstanding (in thousands): Basic 1 17,201 17,818 18,827 Add: dilutive effect of non-vested common shares, restricted stock units and performance shares — 179 178 Add: dilutive effect of warrants — 596 241 Diluted 2 17,201 18,593 19,246 Net (loss) income per common share, Basic: $ (13.76 ) $ 4.02 $ 5.56 Net (loss) income per common share, Diluted: $ (13.76 ) $ 3.86 $ 5.44 _____________ 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. There were 16,645 fully-vested options outstanding at both December 31, 2015 and December 31, 2014 , in each case exercisable to purchase common shares at $80.01 per share. Warrants relating to approximately 3.7 million common shares which were outstanding at December 31, 2014 settled during a period from July 1, 2015 through December 18, 2015. Upon settlement, each Warrant holder received a number of shares of our common stock equal to (a) the number of notional shares associated with each Warrant settling on such date multiplied by (b)(i) 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 (ii) such volume-weighted average price of our common stock. The exercise price of the Warrants declined over the settlement period from $60.44 to $60.20 per share. As a result of the Warrant settlements, we issued 1,015,185 shares of our common stock and paid a de minimis amount in cash in lieu of fractional shares. See Note 3 for additional information relating to the Warrants. The following securities were excluded from the weighted-average diluted shares computation for 2015 , 2014 and 2013 as their inclusion would have been anti-dilutive (in thousands of shares): Year Ended December 31, 2015 2014 2013 Options to purchase common shares — 17 21 Non-vested common shares, restricted stock units and performance shares 302 — — Warrants 639 — — Total excluded 941 17 21 During 2015 , 2014 and 2013 , we paid a total of approximately $28.1 million ( $1.60 per common share), $25.4 million ( $1.40 per common share) and $23.0 million ( $1.20 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). Additionally, during the third quarter of 2013, $0.6 million of cash dividends paid in respect of our common shares held in trust by a third-party, as well as 9,001 of such common shares, were returned to us. The fair market value of the shares was included in Other (expense) income, net (see Note 15 ). 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, among other things, 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. In 2015 and 2014 , we repurchased 647,520 and 633,230 shares of common stock at a weighted-average price of $76.35 and $70.87 per share, respectively, pursuant to the stock repurchase program. The total cost of $49.4 million and $44.9 million was recorded as Treasury stock as of December 31, 2015 and December 31, 2014 , respectively. At December 31, 2015 and December 31, 2014 , $123.3 million and $72.8 million , respectively, were available to repurchase our common shares pursuant to the stock repurchase program. |
Segment and Geographical Area I
Segment and Geographical Area Information | 12 Months Ended |
Dec. 31, 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, such as aluminum plate and sheet and extruded and drawn products, primarily used in aerospace/high strength, automotive, general engineering and other industrial end market applications. 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. At December 31, 2015 , approximately 63% of our employees were covered by collective bargaining agreements and approximately 10% of our employees were covered by collective bargaining agreements with expiration dates occurring within one year from December 31, 2015 . 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): Year Ended December 31, 2015 2014 2013 Net sales: Fabricated Products $ 1,391.9 $ 1,356.1 $ 1,297.5 Segment operating (loss) income: Fabricated Products 1,2 $ 190.8 $ 151.4 $ 188.6 All Other 3 (536.7 ) (13.5 ) (15.3 ) Total operating (loss) income $ (345.9 ) $ 137.9 $ 173.3 Interest expense (24.1 ) (37.5 ) (35.7 ) Other (expense) income, net (1.8 ) 6.7 5.6 (Loss) income before income taxes $ (371.8 ) $ 107.1 $ 143.2 Depreciation and amortization: Fabricated Products $ 31.9 $ 30.6 $ 27.6 All Other 0.5 0.5 0.5 Total depreciation and amortization $ 32.4 $ 31.1 $ 28.1 Capital expenditures: Fabricated Products $ 62.4 $ 58.5 $ 69.8 All Other 0.7 0.9 0.6 Total capital expenditures $ 63.1 $ 59.4 $ 70.4 December 31, 2015 December 31, 2014 Assets: Fabricated Products $ 904.8 $ 878.9 All Other 4 345.3 864.8 Total assets $ 1,250.1 $ 1,743.7 __________________ 1. Operating income in the Fabricated Products segment for 2015 , 2014 and 2013 included $1.7 million , $1.2 million and $4.0 million , respectively, of environmental expense. Fabricated Products segment operating income included $0.1 million and $1.5 million of asset impairment charge relating to certain property, plant and equipment for 2015 and 2014 , respectively, and none for 2013 . Also included in the Fabricated Products segment operating income for 2015 was a $2.6 million lower of cost or market inventory write-down. 2. Fabricated Products segment results for 2015 , 2014 and 2013 included a non-cash mark-to-market (loss) gain on primary aluminum, natural gas, electricity and foreign currency hedging activities totaling $(3.4) million , $(10.4) million and $0.7 million , respectively. For further discussion regarding mark-to-market matters, see Note 10 . 3. Operating loss of All Other included net periodic postretirement benefit cost (income) of $2.4 million , $(23.7) million and $(22.5) million for 2015 , 2014 and 2013 , respectively. Additionally, operating loss in All Other included Loss on removal of Union VEBA net assets of $493.4 million during the year ended December 31, 2015 . See Note 6 for further details. 4. 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 6 and Note 11 ) 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): Year Ended December 31, 2015 2014 2013 Net sales: Aero/HS products $ 695.5 $ 686.3 $ 677.0 Automotive Extrusions 199.2 173.5 129.5 GE products 426.1 419.5 411.0 Other products 71.1 76.8 80.0 Total net sales $ 1,391.9 $ 1,356.1 $ 1,297.5 Geographic information for net sales based on country of origin, income taxes paid and long-lived assets were as follows (in millions of dollars): Year Ended December 31, 2015 2014 2013 Net sales to unaffiliated customers: Fabricated Products – United States $ 1,321.3 $ 1,254.0 $ 1,204.7 Canada 70.6 102.1 92.8 Total net sales $ 1,391.9 $ 1,356.1 $ 1,297.5 Income taxes paid: Fabricated Products – United States $ 0.6 $ 2.1 $ 1.2 Canada 1.7 1.4 0.9 Total income taxes paid $ 2.3 $ 3.5 $ 2.1 Year Ended December 31, 2015 2014 Long-lived assets: 1 Fabricated Products – United States $ 459.6 $ 432.6 Canada 30.9 17.4 Total Fabricated Products long-lived assets 490.5 450.0 All Other – United States 4.9 4.9 Total All Other long-lived assets 4.9 4.9 Total long-lived assets $ 495.4 $ 454.9 __________________ 1. Long-lived assets represent Property, plant and equipment – net. The aggregate foreign currency transaction gains (losses) included in determining net (loss) income were immaterial for 2015 , 2014 and 2013 . For the years ended December 31, 2015 , December 31, 2014 and December 31, 2013 , one customer represented 25% , 22% and 23% , respectively, of Fabricated Products Net sales. For the years ended December 31, 2015 and December 31, 2014 , a second customer represented 10% for both periods of Fabricated Products Net sales. Two individual customers each accounted for 17% of the trade receivables balance at December 31, 2015 . Two individual customers accounted for 12% and 10% of the trade receivables balance at December 31, 2014. Information for export sales and primary aluminum supply from our major suppliers were as follows: Year Ended December 31, 2015 2014 2013 Percentage of Net sales: Export sales 19 % 19 % 17 % Percentage of total annual primary aluminum supply (lbs): Supply from the Company's five largest suppliers 86 % 71 % 86 % Supply from the Company's largest supplier 28 % 30 % 25 % Supply from the Company's second and third largest suppliers 36 % 25 % 35 % |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Year Ended December 31, 2015 2014 2013 (in millions of dollars) Interest paid $ 22.1 $ 25.6 $ 28.1 Non-cash investing and financing activities: Stock repurchases not yet settled (accrued in accounts payable) $ 0.2 $ 0.8 $ 1.0 Unpaid purchases of property and equipment $ 10.5 $ 1.8 $ 4.4 Purchases of property and equipment through capital leasing arrangements $ — $ — $ 0.2 |
Other Income, Net
Other Income, Net | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income, Net | Other (Expense) Income, Net Other (expense) income, net consisted of the following for each period presented (in millions of dollars): Year Ended December 31, 2015 2014 2013 Interest income $ 0.4 $ 1.0 $ 0.4 Unrealized gain on financial derivatives 1 — 3.6 3.2 Realized gain on investments 0.8 1.0 1.4 Distribution from third-party trust 2 — — 0.6 All other, net 3 (3.0 ) 1.1 — Other (expense) income, net $ (1.8 ) $ 6.7 $ 5.6 ____________ 1. See Note 1 for a discussion of our accounting policy for such instruments. 2. See Note 12 for discussion of the distribution. 3. See Note 3 for a discussion of the loss we recognized on our repurchase of Senior Notes during the year ended December 31, 2015 . |
Other Comprehensive (Loss) Inco
Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive (Loss) Income | Other Comprehensive Income (Loss) The following table presents the tax effect allocated to each component of other comprehensive income (loss) for each period presented (in millions of dollars): Income Tax Before-Tax (Expense) Net-of-Tax Amount Benefit 1 Amount 2015 Defined benefit pension plan and VEBAs: Net actuarial loss arising during the period $ (12.9 ) $ 4.9 $ (8.0 ) Prior service credit arising during the period 6.8 (2.6 ) 4.2 Total actuarial loss and prior service costs (6.1 ) 2.3 (3.8 ) Reclassification adjustments: Amortization of net actuarial loss 2 1.1 (0.4 ) 0.7 Amortization of prior service cost 2 3.0 (1.2 ) 1.8 Removal of obligation relating to Union VEBA 106.6 (40.2 ) 66.4 Other comprehensive income relating to defined benefit pension plan and VEBAs 104.6 (39.5 ) 65.1 Available for sale securities: Unrealized loss on available for sale securities (0.1 ) — (0.1 ) Reclassification adjustments: Reclassification of unrealized gain upon sale of available for sale securities 3 (0.4 ) 0.2 (0.2 ) Other comprehensive loss relating to available for sale securities (0.5 ) 0.2 (0.3 ) Unrealized loss on foreign currency cash flow hedges (0.3 ) 0.1 (0.2 ) Foreign currency translation loss (0.2 ) — (0.2 ) Other comprehensive income $ 103.6 $ (39.2 ) $ 64.4 2014 Defined benefit pension plan and VEBAs: Net actuarial loss arising during the period $ (39.0 ) $ 14.5 $ (24.5 ) Prior service cost arising during the period (90.5 ) 33.8 (56.7 ) Total actuarial loss and prior service costs (129.5 ) 48.3 (81.2 ) Reclassification adjustments: Amortization of net actuarial (gain) 2 (1.8 ) 0.7 (1.1 ) Amortization of prior service cost 2 10.6 (3.9 ) 6.7 Other comprehensive loss relating to defined benefit pension plan and VEBAs (120.7 ) 45.1 (75.6 ) Available for sale securities: Unrealized loss 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 loss relating to available for sale securities (0.3 ) 0.1 (0.2 ) Foreign currency translation gain 0.4 — 0.4 Other comprehensive loss $ (120.6 ) $ 45.2 $ (75.4 ) Income Tax Before-Tax (Expense) Net-of-Tax Amount Benefit 1 Amount 2013 Defined benefit pension plan and VEBAs: Net actuarial gain arising during the period $ 87.0 $ (32.5 ) $ 54.5 Prior service cost arising during the period (84.8 ) 31.8 (53.0 ) Total actuarial gain and prior service costs 2.2 (0.7 ) 1.5 Reclassification adjustments: Amortization of net actuarial loss 2 1.5 (0.5 ) 1.0 Amortization of prior service cost 2 4.2 (1.6 ) 2.6 Other comprehensive income relating to defined benefit pension plan and VEBAs 7.9 (2.8 ) 5.1 Available for sale securities: Unrealized gain on available for sale securities 1.0 (0.3 ) 0.7 Reclassification adjustments: Reclassification of unrealized gain upon sale of available for sale securities 3 (1.0 ) 0.3 (0.7 ) Other comprehensive income relating to available for sale securities — — — Foreign currency translation gain 0.2 — 0.2 Other comprehensive income $ 8.1 $ (2.8 ) $ 5.3 ____________ 1. 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 benefit (provision). 2. Amounts reclassified out of Accumulated other comprehensive loss relating to VEBA adjustments were included as a component of Net periodic postretirement benefit cost (income) relating to 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 (expense) income, net. We use the specific identification method to determine the amount reclassified out of Accumulated other comprehensive loss. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Statements (Notes) | 12 Months Ended |
Dec. 31, 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 aggregate principal amount of our Senior Notes, of which $197.8 million aggregate principal amount remained outstanding as of December 31, 2015 , 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 December 31, 2015 and December 31, 2014 , and for the years ended December 31, 2015 , December 31, 2014 and December 31, 2013 presents: (i) the financial position, results of operation and cash flows for each of (a) 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 information for us 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) December 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 72.2 $ 0.3 $ — $ 72.5 Short-term investments — 30.0 — — 30.0 Receivables: Trade receivables – net — 114.0 2.7 — 116.7 Intercompany receivables — 111.2 1.1 (112.3 ) — Other — 3.8 2.3 — 6.1 Inventories — 216.3 6.6 (3.3 ) 219.6 Prepaid expenses and other current assets 0.2 56.2 1.7 (1.4 ) 56.7 Total current assets 0.2 603.7 14.7 (117.0 ) 501.6 Investments in and advances to subsidiaries 1,077.2 31.4 — (1,108.6 ) — Property, plant and equipment – net — 464.3 31.1 — 495.4 Long-term intercompany receivables — — 3.1 (3.1 ) — Deferred tax assets – net — 155.6 — 7.0 162.6 Intangible assets – net — 30.5 — — 30.5 Goodwill — 37.2 — — 37.2 Other assets 3.2 19.5 0.1 — 22.8 Total $ 1,080.6 $ 1,342.2 $ 49.0 $ (1,221.7 ) $ 1,250.1 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 0.5 $ 73.6 $ 2.6 $ — $ 76.7 Intercompany payable 106.5 14.8 4.0 (125.3 ) — Accrued salaries, wages and related expenses — 38.3 1.5 — 39.8 Other accrued liabilities 1.4 52.3 0.4 (1.4 ) 52.7 Short-term capital lease — 0.1 — — 0.1 Total current liabilities 108.4 179.1 8.5 (126.7 ) 169.3 Net liabilities of Salaried VEBA — 19.0 — — 19.0 Deferred tax liabilities — — 2.1 — 2.1 Long-term intercompany payable — 3.1 — (3.1 ) — Long-term liabilities — 81.3 6.2 — 87.5 Long-term debt 197.8 — — — 197.8 Total liabilities 306.2 282.5 16.8 (129.8 ) 475.7 Total stockholders’ equity 774.4 1,059.7 32.2 (1,091.9 ) 774.4 Total $ 1,080.6 $ 1,342.2 $ 49.0 $ (1,221.7 ) $ 1,250.1 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 (LOSS) INCOME (In millions of dollars) Year Ended December 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,361.6 $ 123.3 $ (93.0 ) $ 1,391.9 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 1,095.6 108.4 (88.6 ) 1,115.4 Lower of cost or market inventory write-down — 2.6 — — 2.6 Unrealized loss on derivative instruments — 3.4 — — 3.4 Depreciation and amortization — 31.3 1.1 — 32.4 Selling, general, administrative, research and development: Selling, general, administrative, research and development 4.3 76.5 9.3 (2.0 ) 88.1 Net periodic postretirement benefit cost relating to Salaried VEBA — 2.4 — — 2.4 Loss on removal of Union VEBA net assets — 493.4 — — 493.4 Total selling, general, administrative, research and development 4.3 572.3 9.3 (2.0 ) 583.9 Other operating charges, net — 0.1 — — 0.1 Total costs and expenses 4.3 1,705.3 118.8 (90.6 ) 1,737.8 Operating (loss) income (4.3 ) (343.7 ) 4.5 (2.4 ) (345.9 ) Other (expense) income: Interest expense (23.5 ) (0.9 ) — 0.3 (24.1 ) Other (expense) income, net (2.5 ) 3.5 (2.5 ) (0.3 ) (1.8 ) (Loss) income before income taxes (30.3 ) (341.1 ) 2.0 (2.4 ) (371.8 ) Income tax benefit — 122.5 1.3 11.4 135.2 (Loss) earnings in equity of subsidiaries (206.3 ) 0.9 — 205.4 — Net (loss) income $ (236.6 ) $ (217.7 ) $ 3.3 $ 214.4 $ (236.6 ) Comprehensive (loss) income $ (172.2 ) $ (153.5 ) $ 3.5 $ 150.0 $ (172.2 ) CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME (In millions of dollars) Year Ended December 31, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,323.4 $ 133.9 $ (101.2 ) $ 1,356.1 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 1,098.3 117.8 (98.6 ) 1,117.5 Unrealized loss on derivative instruments — 10.4 — — 10.4 Depreciation and amortization — 30.0 1.1 — 31.1 Selling, general, administrative, research and development: Selling, general, administrative, research and development 4.1 69.7 9.9 (2.3 ) 81.4 Net periodic postretirement benefit income relating to VEBAs — (23.7 ) — — (23.7 ) Total selling, general, administrative, research and development 4.1 46.0 9.9 (2.3 ) 57.7 Other operating charges, net — 1.5 — — 1.5 Total costs and expenses 4.1 1,186.2 128.8 (100.9 ) 1,218.2 Operating (loss) income (4.1 ) 137.2 5.1 (0.3 ) 137.9 Other (expense) income: Interest expense (37.5 ) (0.6 ) — 0.6 (37.5 ) Other income (expense), net 3.7 3.2 0.4 (0.6 ) 6.7 (Loss) income before income taxes (37.9 ) 139.8 5.5 (0.3 ) 107.1 Income tax (provision) benefit — (50.2 ) 0.8 14.1 (35.3 ) Earnings in equity of subsidiaries 109.7 6.0 — (115.7 ) — Net income $ 71.8 $ 95.6 $ 6.3 $ (101.9 ) $ 71.8 Comprehensive (loss) income $ (3.6 ) $ 19.9 $ 6.6 $ (26.5 ) $ (3.6 ) CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Year Ended December 31, 2013 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,275.2 $ 118.0 $ (95.7 ) $ 1,297.5 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 1,026.0 105.7 (92.8 ) 1,038.9 Unrealized gain on derivative instruments — (0.7 ) — — (0.7 ) Depreciation and amortization — 27.0 1.1 — 28.1 Selling, general, administrative, research and development: Selling, general, administrative, research and development 3.8 70.1 8.9 (2.4 ) 80.4 Net periodic postretirement benefit income relating to VEBAs — (22.5 ) — — (22.5 ) Total selling, general, administrative, research and development 3.8 47.6 8.9 (2.4 ) 57.9 Total costs and expenses 3.8 1,099.9 115.7 (95.2 ) 1,124.2 Operating (loss) income (3.8 ) 175.3 2.3 (0.5 ) 173.3 Other (expense) income: Interest (expense) income (36.6 ) 0.5 — 0.4 (35.7 ) Other income, net 3.9 2.0 — (0.3 ) 5.6 (Loss) income before income taxes (36.5 ) 177.8 2.3 (0.4 ) 143.2 Income tax (provision) benefit — (68.1 ) 15.7 14.0 (38.4 ) Earnings in equity of subsidiaries 141.3 17.6 — (158.9 ) — Net income $ 104.8 $ 127.3 $ 18.0 $ (145.3 ) $ 104.8 Comprehensive income $ 110.1 $ 131.6 $ 19.0 $ (150.6 ) $ 110.1 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 285.7 $ (127.2 ) $ 0.3 $ — $ 158.8 Cash flows from investing activities: Capital expenditures — (47.9 ) (15.2 ) — (63.1 ) 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 — 35.6 (15.2 ) — 20.4 Cash flows from financing activities: Repurchase of Senior Notes (30.0 ) — — — (30.0 ) Settlement of Convertible Notes (175.0 ) — — — (175.0 ) Proceeds from cash-settled call options related to settlement of Convertible Notes 94.9 — — — 94.9 Payment for conversion premium related to settlement of Convertible Notes (94.9 ) — — — (94.9 ) Cash paid for financing costs (0.6 ) — — — (0.6 ) Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest — 1.3 — — 1.3 Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (2.8 ) — — — (2.8 ) Repurchase of common stock (49.2 ) — — — (49.2 ) Cash dividends paid to stockholders (28.1 ) — — — (28.1 ) Intercompany loan — (12.8 ) 12.8 — — Net cash (used in) provided by financing activities (285.7 ) (11.5 ) 12.8 — (284.4 ) Net decrease in cash and cash equivalents during the period — (103.1 ) (2.1 ) — (105.2 ) Cash and cash equivalents at beginning of period — 175.3 2.4 — 177.7 Cash and cash equivalents at end of period $ — $ 72.2 $ 0.3 $ — $ 72.5 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2014 Parent Guarantor 1 Subsidiaries Non-Guarantor Subsidiaries Consolidating 1 Adjustments Consolidated Cash flows from operating activities: Net cash provided by operating activities $ 35.6 $ 351.8 $ 6.7 $ (270.0 ) $ 124.1 Cash flows from investing activities: Capital expenditures — (56.4 ) (3.0 ) — (59.4 ) Purchase of available for sale securities — (93.5 ) — — (93.5 ) Proceeds from disposition of available for sale securities — 108.2 — — 108.2 Net cash used in investing activities — (41.7 ) (3.0 ) — (44.7 ) Cash flows from financing activities: Payment of capital lease liability — (0.1 ) — — (0.1 ) 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 (44.1 ) — — — (44.1 ) Cash dividends paid to stockholders (25.4 ) — — — (25.4 ) Cash dividends paid to Parent — (270.0 ) — 270.0 — Intercompany loan 31.3 (23.2 ) (8.1 ) — — Net cash used in financing activities (40.6 ) (292.5 ) (8.1 ) 270.0 (71.2 ) Net (decrease) increase in cash and cash equivalents during the period (5.0 ) 17.6 (4.4 ) — 8.2 Cash and cash equivalents at beginning of period 5.0 157.7 6.8 — 169.5 Cash and cash equivalents at end of period $ — $ 175.3 $ 2.4 $ — $ 177.7 ____________ 1. The presentation of cash flows from operating activities and cash flows from financing activities in the 2014 table above has been restated from the prior year presentation to reflect $270.0 million of dividends paid in the fourth quarter of 2014 from the Guarantor Subsidiaries to the Parent. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2013 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ (29.2 ) $ 131.7 $ 9.2 $ — $ 111.7 Cash flows from investing activities: Capital expenditures — (66.5 ) (3.9 ) — (70.4 ) Purchase of available for sale securities — (227.8 ) — — (227.8 ) Proceeds from disposition of available for sale securities — 183.1 — — 183.1 Change in restricted cash — 0.7 1.0 — 1.7 Net cash used in investing activities — (110.5 ) (2.9 ) — (113.4 ) Cash flows from financing activities: Payment of capital lease liability — (0.1 ) — — (0.1 ) Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest — 1.1 — — 1.1 Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (2.5 ) — — — (2.5 ) Repurchase of common stock (78.3 ) — — — (78.3 ) Cash dividends paid to stockholders (23.0 ) — — — (23.0 ) Cash dividend returned to the Company 0.6 — — — 0.6 Intercompany loan 132.4 (130.5 ) (1.9 ) — — Net cash provided by (used in) financing activities 29.2 (129.5 ) (1.9 ) — (102.2 ) Net (decrease) increase in cash and cash equivalents during the period — (108.3 ) 4.4 — (103.9 ) Cash and cash equivalents at beginning of period 5.0 266.0 2.4 — 273.4 Cash and cash equivalents at end of period $ 5.0 $ 157.7 $ 6.8 $ — $ 169.5 |
Quarterly Financial Data
Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information | Quarterly Financial Data (Unaudited) The following tables present the unaudited financial data for each of the interim periods in 2015 and 2014 (in millions of dollars, except per share amounts): Quarter Ended 31-Mar 1 Quarter Ended 30-Jun Quarter Ended 30-Sep Quarter Ended 31-Dec 2015 Net sales $ 371.7 $ 367.2 $ 336.4 $ 316.6 Cost of products sold, excluding depreciation, amortization and other items 302.3 294.8 267.3 251.0 Lower of cost or market inventory write-down — — — 2.6 Unrealized loss (gain) on derivative instruments 4.5 1.5 1.7 (4.3 ) Gross profit 64.9 70.9 67.4 67.3 Operating (loss) income (458.6 ) 37.0 40.5 35.2 Net (loss) income $ (292.2 ) $ 20.2 $ 22.1 $ 13.3 Net (loss) income per common share, Basic $ (16.85 ) $ 1.19 $ 1.29 $ 0.76 Net (loss) income per common share, Diluted $ (16.85 ) $ 1.11 $ 1.21 $ 0.73 _________________________ 1. The quarter ended March 31, 2015 includes the loss recognized on removal of the Union VEBA net assets. See Note 6 for additional information. Quarter Ended 31-Mar Quarter Ended 30-Jun Quarter Ended 30-Sep Quarter Ended 31-Dec 2014 Net sales $ 335.1 $ 344.1 $ 338.9 $ 338.0 Cost of products sold, excluding depreciation, amortization and other items 282.9 275.5 280.4 278.7 Unrealized (gain) loss on derivative instruments (2.0 ) (1.6 ) 3.6 10.4 Gross profit 54.2 70.2 54.9 48.9 Operating income 32.1 46.4 32.6 26.8 Net income $ 15.8 $ 24.5 $ 15.9 $ 15.6 Net income per common share, Basic $ 0.88 $ 1.38 $ 0.90 $ 0.88 Net income per common share, Diluted $ 0.85 $ 1.33 $ 0.85 $ 0.85 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividend Declaration . On January 15, 2016 , we announced that our Board of Directors declared a quarterly cash dividend of $0.45 per common share, or approximately $8.2 million (including dividend equivalents), which was paid on February 12, 2016 to stockholders of record at the close of business on January 25, 2016 . |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 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 plate and sheet 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 13 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 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 (the "SEC"). Intercompany balances and transactions are eliminated. |
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. |
Recognition of Sales | Recognition of Sales. Sales are generally recognized on a gross basis when all of the following criteria are met: (i) persuasive evidence of an arrangement exists; (ii) title, ownership and risk of loss has passed to the customer; (iii) the price to the customer is fixed or determinable; and (iv) collection of the resulting receivable is reasonably assured. A provision for estimated sales returns from and allowances to customers is made in the same period as the related revenues are recognized, based on historical experience or the specific identification of an event necessitating a reserve. |
Stock-Based Compensation | Stock-Based Compensation. Stock-based compensation in the form of service-based awards is provided to executive officers, certain employees and non-employee directors and is accounted for at fair value. We measure the cost of services received in exchange for an award of equity instruments based on the grant-date fair value of the award and the number of awards expected to ultimately vest. The grant-date fair value is determined based on the stock price on the date of grant, adjusted for expected dividends to be paid during the vesting period. We also grant performance-based awards to executive officers and other key employees. Performance awards granted prior to 2014 are subject to performance conditions pertaining to specified financial metrics and are valued based on the stock price at the date of grant, adjusted for expected dividend equivalents to be paid during the vesting period. Performance awards granted after 2014 are subject to performance conditions pertaining to total shareholder return and are valued on the date of grant using a Monte Carlo valuation model. The key assumptions in applying this model are an expected volatility and a risk-free interest rate. For more information on our stock-based compensation, see Note 8 . The cost of service-based awards, including time-vested restricted stock and performance shares, is recognized as an expense over the requisite service period of the award on a straight-line basis. For performance shares granted prior to 2014, the related expense is updated quarterly by adjusting the estimated number of shares expected to vest based on the most probable outcome of the performance condition (see Note 8 ). |
Shipping and Handling Costs | Shipping and Handling Costs. Shipping and handling costs are recorded as a component of Cost of products sold, excluding depreciation, amortization and other items. |
Advertising Costs | Advertising Costs. Advertising costs, which are included in Selling, general, administrative, research and development ("SG&A and R&D"), are expensed as incurred. Advertising costs for 2015 , 2014 and 2013 were $1.2 million , $0.6 million and $1.3 million , respectively. |
Research and Development Costs | Research and Development Costs. Research and development costs, which are included in SG&A and R&D, are expensed as incurred. Research and development costs for 2015 , 2014 and 2013 were $9.5 million , $8.9 million and $7.8 million , respectively. |
Major Maintenance Activities | Major Maintenance Activities. All major maintenance costs are accounted for using the direct expensing method. |
Cash and Cash Equivalents | Cash and Cash Equivalents. We consider only those short-term, highly liquid investments with original maturities of 90 days or less when purchased to be cash equivalents. Our cash equivalents consist primarily of funds in commercial paper, money market funds and other highly liquid investments, which are classified within Level 1 of the fair value hierarchy with the exception of commercial paper, which is classified within Level 2 of the fair value hierarchy. |
Restricted Cash | Restricted Cash. We are required to keep on deposit certain amounts that are pledged or held as collateral relating to workers’ compensation and other agreements. We account for such deposits as restricted cash (see Note 2 ). From time to time, such restricted funds could be returned to us or we could be required to pledge additional cash. |
Trade Receivables and Allowance for Doubtful Accounts | Trade Receivables and Allowance for Doubtful Accounts. Trade receivables primarily consist of amounts billed to customers for products sold. Accounts receivable are generally due within 30 to 60 days . For the majority of our receivables, we establish an allowance for doubtful accounts based upon collection experience and other factors. On certain other receivables where we are aware of a specific customer’s inability or reluctance to pay, an allowance for doubtful accounts is established against amounts due, to reduce the net receivable balance to the amount we reasonably expect to collect. However, if circumstances change, our estimate of the recoverability of accounts receivable could be different. Circumstances that could affect our estimates include, but are not limited to, customer credit issues and general economic conditions. Accounts are written off once deemed to be uncollectible. Any subsequent cash collections relating to accounts that have been previously written off are typically recorded as a reduction to total bad debt expense in the period of payment. Write-offs for 2015 , 2014 and 2013 were immaterial to the consolidated financial statements. |
Inventories | Inventories. Inventories are stated at the lower of cost or market value. On December 31, 2015 , we recorded an inventory write-down of $2.6 million to reflect the net realizable value as of that date. The net realizable value reflected: (i) a reduction in the Midwest Transaction Price and (ii) commitments as of that date from customers to purchase our inventory at prices that exceeded the Midwest Transaction Price reduced by an approximate normal profit margin. If we continue to encounter reductions in the price of aluminum and/or if we experience a decrease in our net realizable value of inventory, we may be subject to additional inventory lower of cost or market value adjustments. Finished products, work-in-process and raw material inventories are stated on the last-in, first-out ("LIFO") basis. At December 31, 2015, after adjusting for the inventory write down discussed above, the stated LIFO value of inventory represented its net realizable value (less a normal profit margin) and exceeded the current cost of our inventory by $24.1 million . At December 31, 2014, the current cost of our inventory exceeded its stated LIFO value by $37.6 million . 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 December 31, 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 $1.8 million , $2.5 million and $3.4 million during 2015 , 2014 and 2013 , respectively. Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Capital lease assets and leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. The principal estimated useful lives are as follows: Range (in years) Land improvements 3 - 25 Buildings and leasehold improvements 15 - 45 Machinery and equipment 1 - 24 Capital lease assets 3 - 5 Depreciation expense is not included in Cost of products sold, excluding depreciation and amortization and other items , but is included in Depreciation and amortization on the Statements of Consolidated (Loss) Income. For 2015 , 2014 and 2013 , we recorded depreciation expense of $30.3 million , $29.0 million and $25.8 million , respectively, relating to our operating facilities in our Fabricated Products segment. An immaterial amount of depreciation expense was also recorded within All Other for all periods presented in this Report. Property, plant and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset or group of assets may not be recoverable. We regularly assess whether events and circumstances with the potential to trigger impairment have occurred and rely on a number of factors, including operating results, business plans, economic projections and anticipated future cash flow, to make such assessments. We use an estimate of the future undiscounted cash flows of the related asset or asset group over the estimated remaining life of such asset(s) in measuring whether the asset(s) are recoverable. Measurement of the amount of impairment, if any, is based on the difference between the carrying value of the asset(s) and the estimated fair value of such asset(s). Fair value is determined through a series of standard valuation techniques. We recorded impairment charges of $0.1 million and $1.5 million in 2015 and 2014, respectively, to reflect the scrap value of idled assets we determined not to deploy for future use. There were no impairment charges in 2013 . Asset impairment charges are included in Other operating charges, net in the Statements of Consolidated (Loss) Income and are included in the Fabricated Products segment. 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. |
Available for Sale Securities | Available for Sale Securities. We account for investments in certain marketable debt securities as available for sale securities. Such securities are recorded at fair value (see Note 11 ), with net unrealized gains and losses, net of income taxes, reflected in Accumulated other comprehensive income (loss) as a component of Stockholders' equity. Realized gains and losses from the sale of marketable debt securities, if any, are determined on a specific identification basis. Debt investment securities with an original maturity of 90 days or less are classified as Cash and cash equivalents (see Note 2 ). Debt investment securities with an original maturity of greater than 90 days are presented as Short-term investments on the Consolidated Balance Sheets. In addition to debt investment securities, we also hold assets in various investment funds managed by a third-party trust in connection with our deferred compensation program (see Note 6 ). |
Deferred Financing Costs | Deferred Financing Costs. Costs incurred in connection with debt financing are deferred and amortized over the estimated term of the related borrowing. Such amortization is included in Interest expense and may be capitalized as part of construction in progress (see Note 2 and Note 3 ). |
Goodwill and Intangible Assets | Goodwill and Intangible Assets. Goodwill is tested for impairment during the fourth quarter on an annual basis, as well as on an interim basis, as warranted, at the time of relevant events and changes in circumstances. Intangible assets with definite lives are initially recognized at fair value and subsequently amortized over the estimated useful lives to reflect the pattern in which the economic benefits of the intangible assets are consumed. In the event the pattern cannot be reliably determined, we use a straight-line amortization method. Whenever events or changes in circumstances indicate that the carrying amount of the intangible assets may not be recoverable, the intangible assets are reviewed for impairment. We concluded there was no impairment of the carrying value of goodwill at December 31, 2015 or December 31, 2014 (see Note 4 ). |
Conditional Asset Retirement Obligations ("CAROs") | Conditional Asset Retirement Obligations ( " CAROs " ). We have CAROs at several of our Fabricated Products facilities. The vast majority of such CAROs consist primarily of incremental costs that would be associated with the removal and disposal of asbestos (all of which is believed to be fully contained and encapsulated within walls, floors, roofs, ceilings or piping) at certain of our older facilities if such facilities were to undergo major renovation or be demolished. We estimate incremental costs for special handling, removal and disposal costs of materials that may or will give rise to CAROs and then discount the expected costs back to the current year using a credit-adjusted, risk-free rate. When it is unclear when or if CAROs will be triggered, we use probability weighting for possible timing scenarios to determine the probability-weighted liability amounts that should be recognized in our consolidated financial statements (see Note 11 ). |
Self Insurance of Employee Health and Workers' Compensation Liabilities | Self Insurance of Employee Health and Workers' Compensation Liabilities . We self-insure the majority of the costs of employee health care benefits and workers' compensation benefits and rely on insurance coverage to protect us from large losses on individual claims. Workers' compensation liabilities are based on a combination of estimates for: (i) incurred-but-not-reported claims and (ii) the ultimate expense of incurred claims. Such estimates are based on judgment, using our historical claims data and information and analysis provided by actuarial and claims advisors, our insurance carriers and other professionals. Our undiscounted workers' compensation liabilities were estimated at $23.5 million and $25.9 million at December 31, 2015 and December 31, 2014 , respectively. However, we account for our workers' compensation accrued liability on a discounted basis, using a discount rate of 1.75% at both December 31, 2015 and December 31, 2014 . Accrued liabilities for employee healthcare benefits, which are estimates of unpaid incurred medical and prescription drug costs as provided by our healthcare administrators, were $3.2 million and $2.9 million at December 31, 2015 and December 31, 2014 , respectively. |
Environmental Contingencies | Environmental Contingencies. With respect to environmental loss contingencies, we record a loss contingency whenever a contingency is probable and reasonably estimable (see Note 9 ). Accruals for estimated losses from environmental remediation obligations are generally recognized no later than the completion of the remedial feasibility study. Such accruals are adjusted as information develops or circumstances change. Costs of future expenditures for environmental remediation obligations are not discounted to their present value. Accruals for expected environmental costs are included in Other accrued liabilities or Long-term liabilities, as appropriate (see Note 2 ). Environmental expense relating to continuing operations is included in Cost of products sold, excluding depreciation and amortization and other items in the Statements of Consolidated (Loss) Income. Environmental expense relating to non-operating locations is included in SG&A and R&D in the Statements of Consolidated (Loss) Income. |
Derivative Financial Instruments | Derivative Financial Instruments. Hedging transactions using derivative financial instruments are primarily designed to mitigate our exposure to changes in the market price of aluminum and energy and, to a lesser extent, to mitigate our exposure to changes in foreign currency exchange rates. From time to time, we also enter into hedging arrangements in connection with financing transactions to mitigate financial risks. We do not utilize derivative financial instruments for trading or other speculative purposes. Our derivative activities are initiated within guidelines established by management and approved by our Board of Directors. Hedging transactions are executed centrally on behalf of all of our operations to minimize transaction costs, monitor consolidated net exposures and allow for increased responsiveness to changes in market factors. We recognize derivative instruments as assets or liabilities in our Consolidated Balance Sheets and measure these instruments at fair value by "marking-to-market" all of our hedging positions at each period's end (see Note 11 ). Because we do not meet the documentation requirements for hedge (deferral) accounting related to aluminum and energy derivatives, unrealized and realized gains and losses associated with these hedges are reflected as a reduction or increase, respectively, in Cost of products sold - Unrealized loss (gain) on derivative instruments and unrealized and realized gains and losses relating to hedges of financing transactions are reflected as a component of Other income (expense) (see Note 15 ). Our accounting policy for foreign currency related derivatives is discussed in " Foreign Currency Risk Management" below. See Note 10 for additional information about realized and unrealized gains and losses relating to our derivative financial instruments. Our derivative contacts for metal, natural gas, electricity and foreign currency potentially subject us to concentrations of credit risk if a counterparty fails to perform its obligations on derivative contracts with us or fails to return cash collateral that we previously posted with the counterparty. To mitigate this risk, we only enter into hedges with major financial institutions and/or trading firms that are investment grade or better, and we diversify our hedging positions among multiple counterparties to minimize exposure to any single counterparty. Additionally, we enter into reciprocal margin arrangements whereby: (i) we deposit margin collateral with a counterparty to the extent that the net market value of our derivative positions with such counterparty is a liability to us and exceeds a specified dollar threshold or (ii) the counterparty deposits margin collateral with us to the extent that the net market value of our derivative positions with such counterparty is an asset to us and exceeds a specified dollar threshold. At both December 31, 2015 and December 31, 2014 , we had no margin deposits with or from our counterparties. As a result of our efforts to manage our counterparty exposures, we believe the risk of loss is remote and, in any event, would not be material. Additionally, our firm price customer sales commitments create incremental customer credit risk related to metal price movements. Under certain circumstances, we mitigate this risk by periodically requiring cash collateral from them, which we classify as deferred revenue and include as a component of Other accrued liabilities on our Consolidated Balance Sheets. At December 31, 2015 , cash collateral totaled $0.9 million . For more information about concentration risks concerning customers and suppliers, see Note 13 . |
Fair Value Measurement | Fair Value Measurements. We apply the provisions of Accounting Standards Codification ("ASC") Topic 820, Fair Value Measurements and Disclosures , in measuring the fair value of our derivative contracts and plan assets invested by certain of our employee benefit plans (see Note 11 ). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy consists of three broad levels and is described below: • Level 1 – Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including: quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3 – Inputs that are both significant to the fair value measurement and unobservable. |
Income Taxes | Income Taxes. Deferred income taxes reflect the future tax effect of temporary differences between the carrying amount of assets and liabilities for financial and income tax reporting and are measured by applying statutory tax rates in effect for the year during which the differences are expected to reverse. In accordance with ASC Topic 740, Income Taxes , we use a "more likely than not" threshold for recognition of tax attributes that are subject to uncertainties and measure any reserves in respect of such expected benefits based on their probability. Deferred tax assets are reduced by a valuation allowance to the extent it is more likely than not that the deferred tax assets will not be realized (see Note 5 ). |
Earnings per Share | Net (Loss) Income per Share. Basic net (loss) income per share is computed by dividing distributed and undistributed net (loss) income allocable to common shares by the weighted-average number of common shares outstanding during the applicable period. The basic weighted-average number of common shares outstanding during the period excludes unvested share-based payment awards. Diluted net (loss) income per share was calculated under the treasury stock method for 2015 , 2014 and 2013 , which in all years was more dilutive than the two-class method (see Note 12 ). |
Leases | Leases. For leases that contain predetermined fixed escalations of the minimum rent, we recognize the related rent expense on a straight-line basis from the date we take possession of the property to the end of the initial lease term. We record any difference between the straight-line rent amounts and the amount payable under the lease as part of deferred rent in Other accrued liabilities or Long-term liabilities, as appropriate. Deferred rent for all periods presented was not material. |
Foreign Currency | Foreign Currency. Certain of our foreign subsidiaries use the local currency as their functional currency; our assets and liabilities are translated at exchange rates in effect at the balance sheet date; and our statement of (loss) income is translated at weighted-average monthly rates of exchange prevailing during the year. Resulting translation adjustments are recorded directly to a separate component of stockholders’ equity in accordance with ASC Topic 830, Foreign Currency Matters . At both December 31, 2015 and December 31, 2014 , the amount of translation adjustment relating to foreign subsidiaries using local currency as their functional currency was immaterial. Where the U.S. dollar is the functional currency of a foreign facility or subsidiary, re-measurement adjustments are recorded in Other income (expense). 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 with 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. We report the effective portion of our cash flow hedges in the same financial statement line item as changes in the fair value of the hedged item. In order to qualify for hedge accounting treatment, derivative instruments 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, 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 Net (loss) income 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 Net (loss) income. See Note 10 for additional information. |
New Accounting Pronouncements | New Accounting Pronouncements. Accounting Standards Update ("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. In August 2015, ASU No. 2015-15, Interest - Imputation of Interest (Subtopic 835-30) - Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements ("ASU 2015-15") was issued to address the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. The recognition and measurement guidance for debt issuance costs is not affected by ASU 2015-03 and ASU 2015-15. An entity is required to adopt ASU 2015-03 and ASU 2015-15 for reporting periods beginning on or after December 15, 2015. We do not expect the adoption of these ASUs to have a material impact on our consolidated financial statements. ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) ("ASU 2015-07"), was issued in May 2015. This ASU removes the requirement to categorize within the fair value hierarchy table investments without readily determinable fair values in entities that elect to measure fair value using net asset value per share ("NAV") or its equivalent. ASU 2015-07 requires that these investments continue to be shown in the fair value disclosure in order to allow the disclosure to reconcile to the investment amount presented in the balance sheet. An entity is required to adopt ASU 2015-07 for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. We do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ("ASU 2015-14"), was issued in August 2015. ASU 2015-14 defers the effective date of ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which was issued in May 2014 and 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, by one year for all entities and permits early adoption on a limited basis. We expect to adopt ASU 2014-09 for the fiscal year ending December 31, 2018 and will continue to assess the impact of the adoption on our consolidated financial statements; however, based on our assessments to date, we do not expect the adoption of this ASU to have a material impact on our consolidated financial statements. ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ("ASU 2015-17"), was issued in November 2015. ASU 2015-17 requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. This ASU does not, however, change the existing requirement that deferred tax liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount. We do not expect the adoption of ASU 2015-17 in the first quarter of 2016 to have a material impact on our consolidated financial statements. |
Supplemental Balance Sheet In29
Supplemental Balance Sheet Information Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Balance Sheet Disclosures [Table Text Block] | Supplemental Balance Sheet Information December 31, 2015 December 31, 2014 (In millions of dollars) Cash and Cash Equivalents Cash and money market funds $ 40.3 $ 29.5 Commercial paper 32.2 148.2 Total $ 72.5 $ 177.7 December 31, 2015 December 31, 2014 (In millions of dollars) Trade Receivables – Net Billed trade receivables $ 116.8 $ 128.7 Unbilled trade receivables 0.7 1.4 Trade receivables, gross 117.5 130.1 Allowance for doubtful receivables (0.8 ) (0.8 ) Trade receivables – net $ 116.7 $ 129.3 Inventories Finished products $ 79.5 $ 73.6 Work-in-process 63.6 66.7 Raw materials 53.4 54.2 Operating supplies and repair and maintenance parts 23.1 20.2 Total $ 219.6 $ 214.7 Prepaid Expenses and Other Current Assets Current derivative assets – Notes 10 and 11 $ 1.5 $ 85.7 Current deferred tax assets 49.6 86.4 Prepaid insurance 1.9 2.0 Short-term restricted cash 0.3 0.3 Other 3.4 4.2 Total $ 56.7 $ 178.6 Property, Plant and Equipment – Net Land and improvements $ 22.7 $ 22.9 Buildings and leasehold improvements 71.8 63.8 Machinery and equipment 549.0 509.8 Construction in progress 48.5 25.2 Property, plant and equipment – gross 692.0 621.7 Accumulated depreciation (196.9 ) (166.8 ) Assets held for sale 0.3 — Property, plant and equipment – net $ 495.4 $ 454.9 Other Assets Restricted cash $ 10.9 $ 10.0 Deferred financing costs 4.5 5.9 Deferred compensation plan assets 7.3 7.3 Derivative assets – Notes 10 and 11 0.1 — Other — 0.1 Total $ 22.8 $ 23.3 December 31, 2015 December 31, 2014 (In millions of dollars) Other Accrued Liabilities Current derivative liabilities – Notes 10 and 11 $ 14.1 $ 94.9 Uncleared cash disbursements 8.0 9.1 Accrued income taxes and taxes payable 3.1 5.2 Accrued annual contribution to VEBAs 19.6 13.7 Short-term environmental accrual – Note 9 1.6 2.3 Accrued interest 1.5 3.7 Short-term deferred revenue – Note 1 1.2 0.2 Other 3.6 3.7 Total $ 52.7 $ 132.8 Long-Term Liabilities Derivative liabilities – Notes 10 and 11 $ 2.1 $ 1.9 Income tax liabilities 0.7 2.4 Workers’ compensation accruals 21.7 21.5 Long-term environmental accrual – Note 9 17.0 17.0 Long-term asset retirement obligations 4.8 4.4 Long-term deferred revenue – Note 1 0.3 0.5 Deferred compensation liability 7.7 7.2 Long-term capital leases 0.1 0.1 Long-term portion of contingent contribution to Union VEBA – Note 6 29.9 — Other long-term liabilities 3.2 3.3 Total $ 87.5 $ 58.3 |
Debt and Credit Facility (Table
Debt and Credit Facility (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of additional information regarding the convertible notes | The following table provides additional information regarding the Convertible Notes (in millions of dollars): Year Ended December 31, 2015 2014 2013 Contractual coupon interest $ 2.0 $ 7.9 $ 7.9 Amortization of discount 2.4 9.1 8.2 Amortization of deferred financing costs 0.3 1.1 1.2 Total interest expense 1 $ 4.7 $ 18.1 $ 17.3 _______________ 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) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes by geographic area | Tax Benefit (Provision) . (Loss) income before income taxes by geographic area was as follows (in millions of dollars): Year Ended December 31, 2015 2014 2013 Domestic $ (373.6 ) $ 102.1 $ 138.9 Foreign 1.8 5.0 4.3 (Loss) income before income taxes $ (371.8 ) $ 107.1 $ 143.2 |
Tax Provision | Income tax benefit (provision) consisted of (in millions of dollars): Federal Foreign State Total 2015 Current $ 0.7 $ 2.1 $ 0.4 $ 3.2 Deferred 93.2 (1.2 ) 1.8 $ 93.8 Benefit applied to increase Additional paid in capital/ Other comprehensive income 33.5 0.4 4.3 $ 38.2 Income tax benefit $ 127.4 $ 1.3 $ 6.5 $ 135.2 2014 Current $ (1.0 ) $ 1.0 $ (0.6 ) $ (0.6 ) Deferred 6.4 0.3 5.1 $ 11.8 Expense applied to decrease Additional paid in capital/Other comprehensive income (41.6 ) (0.5 ) (4.4 ) $ (46.5 ) Income tax (provision) benefit $ (36.2 ) $ 0.8 $ 0.1 $ (35.3 ) 2013 Current $ 1.1 $ 16.2 $ (0.2 ) $ 17.1 Deferred (49.7 ) (0.5 ) (6.7 ) $ (56.9 ) Benefit (expense) applied to increase (decrease) Additional paid in capital/ Other comprehensive income 1.3 (0.1 ) 0.2 $ 1.4 Income tax (provision) benefit $ (47.3 ) $ 15.6 $ (6.7 ) $ (38.4 ) |
Reconciliation of income tax provision based on effective income tax rate and statutory tax rate | A reconciliation between the benefit from (provision for) income taxes and the amount computed by applying the federal statutory income tax rate to (loss) income before income taxes is as follows (in millions of dollars): Year Ended December 31, 2015 2014 2013 Amount of federal income tax benefit (provision) based on the statutory rate $ 130.1 $ (37.5 ) $ (50.1 ) (Increase) decrease in federal valuation allowances (0.6 ) — 0.1 Non-deductible compensation expense (0.2 ) (0.1 ) (0.3 ) Non-deductible expense (0.3 ) (0.3 ) (0.9 ) State income tax benefit (provision), net of federal benefit 1 4.2 — (4.4 ) Foreign income tax benefit 0.1 0.3 — Expiration of statute of limitations 1.7 2.3 4.6 Settlement with taxing authorities — — 4.4 Advance pricing agreement (0.2 ) — 2.9 Competent Authority settlement 0.4 — 5.3 Income tax benefit (provision) $ 135.2 $ (35.3 ) $ (38.4 ) ___________________________ 1. The State income tax benefit was $10.3 million in 2015, but was offset by a $3.1 million increase due to state tax rate and state law changes enacted during the current year and a $3.0 million increase relating to the expiration of certain current and future state net operating losses. State income taxes were $2.3 million in 2014, but were offset by a $1.6 million decrease due to lower tax rates in various states and a $0.7 million in the valuation allowance relating to certain state net operating losses. State income taxes of $4.4 million in 2013 included a $1.2 million increase in the valuation allowance relating to certain unused state net operating losses expected to expire. |
Deferred tax assets and liabilities | Deferred Income Taxes. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. The components of our net deferred income tax assets were as follows (in millions of dollars): Year Ended December 31, 2015 2014 Deferred income tax assets: Loss and credit carryforwards $ 255.7 $ 275.4 VEBAs (see Note 6) 25.9 5.1 Other assets 38.7 37.8 Inventories — 18.7 Valuation allowances (21.2 ) (19.2 ) Total deferred income tax assets 299.1 317.8 Deferred income tax liabilities: Property, plant and equipment (79.6 ) (74.1 ) VEBAs (see Note 6) — (120.6 ) Inventories (9.4 ) (6.7 ) Total deferred income tax liabilities (89.0 ) (201.4 ) Net deferred income tax assets 1 $ 210.1 $ 116.4 __________________________ 1. Of the total net deferred income tax assets of $210.1 million , $49.6 million was included in Prepaid expenses and other current assets, $162.6 million was presented as Deferred tax assets, net and $2.1 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2015 . Of the total net deferred income tax assets of $116.4 million , $86.4 million was included in Prepaid expenses and other current assets and $30.9 million was presented as Deferred tax assets, net and $0.9 million was presented as Deferred tax liabilities on the Consolidated Balance Sheet as of December 31, 2014 . |
Reconciliation of changes in the gross unrecognized tax benefits | We have gross unrecognized benefits relating to uncertain tax positions. A reconciliation of changes in the gross unrecognized tax benefits is as follows (in millions of dollars): Year Ended December 31, 2015 2014 2013 Gross unrecognized tax benefits at beginning of period $ 2.2 $ 3.8 $ 15.7 Gross increases for tax positions of prior years 0.1 — — Gross decreases for tax positions of prior years — — (7.6 ) Gross decrease for tax positions relating to lapse of a statute of limitation (0.6 ) (1.4 ) (3.3 ) Foreign currency translation — (0.2 ) (1.0 ) Gross unrecognized tax benefits at end of period $ 1.7 $ 2.2 $ 3.8 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Assumptions Used for Benefit Obligation [Table Text Block] | Assumptions used to determine benefit obligations as of the periods presented were as follows: Canadian Pension Plan VEBAs December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Salaried Union Salaried Discount rate 4.10 % 4.00 % 3.90 % 3.80 % 3.60 % Rate of compensation increase 3.00 % 3.00 % — — — Initial medical trend rate 1 — — — 7.00 % — Ultimate medical trend rate 1 — — — 5.00 % — _____________________ 1. The medical trend rate assumptions used for the Union VEBA at December 31, 2014 were provided by the Union VEBA and certain industry data were provided by our actuaries. The trend rate was assumed to decline to 5% by 2019 . |
Schedule of Assumptions Used to Determine Net Periodic Benefit Cost (Income) | Assumptions used to determine net periodic benefit cost (income) for the years ended December 31 were: Canadian Pension Plan VEBAs 2015 2014 2013 2015 2014 2013 Salaried VEBA Union VEBA Salaried VEBA Union VEBA Salaried VEBA Discount rate 4.00 % 4.90 % 4.40 % 3.60 % 4.70 % 4.20 % 4.00 % 3.40 % Expected long-term return on plan assets 1 5.10 % 4.75 % 4.50 % 7.75 % 6.75 % 7.75 % 6.25 % 7.25 % Rate of compensation increase 3.00 % 3.00 % 3.00 % — — — — — Initial medical trend rate 2 — — — — 7.50 % — 8.00 % — Ultimate medical trend rate 2 — — — — 5.00 % — 5.00 % — _____________________ 1. The expected long-term rate of return assumption is based on the targeted investment portfolios provided to us by the VEBAs’ trustees. 2. The medical trend rate was assumed to decline to 5% by 2019 for each of 2014 and 2013 . |
Schedule of Changes in Benefit Obligations | The following table presents the benefit obligations and funded status of our Canadian pension and the VEBAs as of December 31, 2015 and December 31, 2014 and the corresponding amounts that are included in our Consolidated Balance Sheets (in millions of dollars): Canadian Pension Plan VEBAs 2015 2014 2015 2014 Change in benefit obligation: Obligation at beginning of year $ 7.0 $ 6.6 $ 470.9 $ 374.7 Removal of Union VEBA — — (391.5 ) — Foreign currency translation adjustment (1.0 ) (0.5 ) — — Service cost 0.2 0.2 — 2.2 Interest cost 0.2 0.3 2.7 16.7 Prior service cost 1 — — 13.2 90.4 Actuarial loss (gain) 2 (0.1 ) 0.7 (11.2 ) 10.2 Benefits paid by Company (0.2 ) (0.3 ) — — Benefits paid by VEBAs — — (6.2 ) (24.7 ) Reimbursement from retiree drug subsidy 3 — — — 1.4 Obligation at end of year 6.1 7.0 77.9 470.9 Change in plan assets: Fair market value of plan assets at beginning of year 6.3 6.2 793.8 780.7 Removal of Union VEBA 4 — — (778.3 ) — Foreign currency translation adjustment (1.0 ) (0.5 ) — — Actual return on assets 0.3 0.6 0.1 22.7 Employer/Company contributions 4,5 0.3 0.3 49.5 13.7 Benefits paid by Company (0.2 ) (0.3 ) — — Benefits paid by VEBAs — — (6.2 ) (24.7 ) Reimbursement from retiree drug subsidy 3 — — — 1.4 Fair market value of plan assets at end of year 5.7 6.3 58.9 793.8 Net funded status 6 $ (0.4 ) $ (0.7 ) $ (19.0 ) $ 322.9 _____________________________ 1. The prior service cost relating to the Salaried VEBA in 2015 was primarily comprised of a $13.2 million loss due to an increase in the annual healthcare reimbursement benefit starting in 2016 for plan participants. The prior service cost relating to the VEBAs in 2014 was primarily comprised of: (i) a $60.5 million loss due to an increase in the healthcare premium reimbursement benefit in the Union VEBA; (ii) a $15.9 million loss resulting from the addition of a new death benefit starting in 2015 for plan participants in the Union VEBA; and (iii) a $14.0 million loss due to an increase in the annual healthcare reimbursement benefit starting in 2015 for plan participants in the Salaried VEBA. 2. The actuarial gain relating to the Salaried VEBA in 2015 was primarily comprised of: (i) a $5.5 million gain due to projected lower benefit utilization; (ii) a $2.0 million gain due primarily to reductions in the discount rates; and (iii) a $3.7 million gain due primarily to updated actuarial mortality rates. The actuarial gain relating to the VEBAs in 2014 was primarily comprised of: (i) a gain of $53.6 million due to projected lower benefit utilization; (ii) a gain of $18.0 million due to projected lower drug claim cost in the future because of lower than expected drug claim costs in 2014 in the Union VEBA; (iii) a gain of $0.4 million due primarily to a reduction in administrative cost in the Union VEBA. The actuarial gain relating to the VEBAs in 2014 was partially offset by: (i) a loss of $45.0 million due primarily to reductions in the discount rates; and (ii) a loss of $37.2 million due primarily to updated actuarial mortality rates in both VEBAs. 3. The Union VEBA was eligible for the retiree drug subsidy of the Medicare Modernization Act that went into effect January 1, 2006. As a result, we measured the Union VEBA’s obligations and costs for the year ended December 31, 2014 to take into account this subsidy. 4. Removal of Union VEBA and Employer/Company contributions each include $46.7 million of accrued variable cash contribution, of which: (i) $16.8 million relates to the Union VEBA for the 2015 year, which will be paid during the first quarter of 2016 and (ii) $29.9 million relates to the estimated accrual for the Union VEBA with respect to the variable contributions for 2016 and 2017. 5. In addition to the $46.7 million discussed above, Employer/Company contributions included $2.8 million of accrued variable cash contribution related to the Salaried VEBA for the 2015 year, which will be paid during the first quarter of 2016. For the calendar year 2014 , we accrued a total (Union and Salaried) liability for a variable cash contribution of $13.7 million , which was paid in the first quarter of 2015 . 6. Net funded status of $19.0 million relating to the Salaried VEBA at December 31, 2015 was presented as Net liabilities of Salaried VEBA on the Consolidated Balance Sheet. Net funded status of $322.9 million at December 31, 2014 was comprised of $340.1 million presented as Net assets of Union VEBA on the Consolidated Balance Sheet, offset by $17.2 million presented as Net liabilities of Salaried VEBA. |
Schedule of Changes in Plan Assets | The following table presents the benefit obligations and funded status of our Canadian pension and the VEBAs as of December 31, 2015 and December 31, 2014 and the corresponding amounts that are included in our Consolidated Balance Sheets (in millions of dollars): Canadian Pension Plan VEBAs 2015 2014 2015 2014 Change in benefit obligation: Obligation at beginning of year $ 7.0 $ 6.6 $ 470.9 $ 374.7 Removal of Union VEBA — — (391.5 ) — Foreign currency translation adjustment (1.0 ) (0.5 ) — — Service cost 0.2 0.2 — 2.2 Interest cost 0.2 0.3 2.7 16.7 Prior service cost 1 — — 13.2 90.4 Actuarial loss (gain) 2 (0.1 ) 0.7 (11.2 ) 10.2 Benefits paid by Company (0.2 ) (0.3 ) — — Benefits paid by VEBAs — — (6.2 ) (24.7 ) Reimbursement from retiree drug subsidy 3 — — — 1.4 Obligation at end of year 6.1 7.0 77.9 470.9 Change in plan assets: Fair market value of plan assets at beginning of year 6.3 6.2 793.8 780.7 Removal of Union VEBA 4 — — (778.3 ) — Foreign currency translation adjustment (1.0 ) (0.5 ) — — Actual return on assets 0.3 0.6 0.1 22.7 Employer/Company contributions 4,5 0.3 0.3 49.5 13.7 Benefits paid by Company (0.2 ) (0.3 ) — — Benefits paid by VEBAs — — (6.2 ) (24.7 ) Reimbursement from retiree drug subsidy 3 — — — 1.4 Fair market value of plan assets at end of year 5.7 6.3 58.9 793.8 Net funded status 6 $ (0.4 ) $ (0.7 ) $ (19.0 ) $ 322.9 _____________________________ 1. The prior service cost relating to the Salaried VEBA in 2015 was primarily comprised of a $13.2 million loss due to an increase in the annual healthcare reimbursement benefit starting in 2016 for plan participants. The prior service cost relating to the VEBAs in 2014 was primarily comprised of: (i) a $60.5 million loss due to an increase in the healthcare premium reimbursement benefit in the Union VEBA; (ii) a $15.9 million loss resulting from the addition of a new death benefit starting in 2015 for plan participants in the Union VEBA; and (iii) a $14.0 million loss due to an increase in the annual healthcare reimbursement benefit starting in 2015 for plan participants in the Salaried VEBA. 2. The actuarial gain relating to the Salaried VEBA in 2015 was primarily comprised of: (i) a $5.5 million gain due to projected lower benefit utilization; (ii) a $2.0 million gain due primarily to reductions in the discount rates; and (iii) a $3.7 million gain due primarily to updated actuarial mortality rates. The actuarial gain relating to the VEBAs in 2014 was primarily comprised of: (i) a gain of $53.6 million due to projected lower benefit utilization; (ii) a gain of $18.0 million due to projected lower drug claim cost in the future because of lower than expected drug claim costs in 2014 in the Union VEBA; (iii) a gain of $0.4 million due primarily to a reduction in administrative cost in the Union VEBA. The actuarial gain relating to the VEBAs in 2014 was partially offset by: (i) a loss of $45.0 million due primarily to reductions in the discount rates; and (ii) a loss of $37.2 million due primarily to updated actuarial mortality rates in both VEBAs. 3. The Union VEBA was eligible for the retiree drug subsidy of the Medicare Modernization Act that went into effect January 1, 2006. As a result, we measured the Union VEBA’s obligations and costs for the year ended December 31, 2014 to take into account this subsidy. 4. Removal of Union VEBA and Employer/Company contributions each include $46.7 million of accrued variable cash contribution, of which: (i) $16.8 million relates to the Union VEBA for the 2015 year, which will be paid during the first quarter of 2016 and (ii) $29.9 million relates to the estimated accrual for the Union VEBA with respect to the variable contributions for 2016 and 2017. 5. In addition to the $46.7 million discussed above, Employer/Company contributions included $2.8 million of accrued variable cash contribution related to the Salaried VEBA for the 2015 year, which will be paid during the first quarter of 2016. For the calendar year 2014 , we accrued a total (Union and Salaried) liability for a variable cash contribution of $13.7 million , which was paid in the first quarter of 2015 . 6. Net funded status of $19.0 million relating to the Salaried VEBA at December 31, 2015 was presented as Net liabilities of Salaried VEBA on the Consolidated Balance Sheet. Net funded status of $322.9 million at December 31, 2014 was comprised of $340.1 million presented as Net assets of Union VEBA on the Consolidated Balance Sheet, offset by $17.2 million presented as Net liabilities of Salaried VEBA. |
Schedule of Net Funded Status | The following table presents the net assets (liabilities) of each VEBA as of the periods presented. Such information is also included in the tables required under GAAP above which roll forward the assets and obligations (in millions of dollars): Salaried VEBA Union VEBA December 31, 2015 December 31, 2014 December 31, 2015 December 31, 2014 Accumulated plan benefit obligation $ (77.9 ) $ (79.4 ) $ — $ (391.5 ) Plan assets 58.9 62.2 — 731.6 Net funded status $ (19.0 ) $ (17.2 ) $ — $ 340.1 |
Schedule of Expected Benefit Payments | As of December 31, 2015 , the net benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter are as follows (in millions of dollars): Benefit Payments Due by Period 2016 2017 2018 2019 2020 2020-2023 Canadian pension plan benefit payments $ 0.2 $ 0.2 $ 0.2 $ 0.3 $ 0.3 $ 1.6 Salaried VEBA benefit payments 1 7.6 7.3 7.0 6.7 6.4 27.2 Total net benefits $ 7.8 $ 7.5 $ 7.2 $ 7.0 $ 6.7 $ 28.8 __________________________________ 1. Such amounts are based on benefit amounts and certain key assumptions obtained from the Salaried VEBA. |
Schedule of Net Periodic Benefit Cost Not yet Recognized | The amount of loss which is recognized in the Consolidated Balance Sheets (in Accumulated other comprehensive loss) associated with our Canadian defined benefit pension plan and the VEBAs (before tax) that have not yet been reflected in net periodic benefit cost (income) were as follows for the years ended December 31 (in millions of dollars): Canadian Pension Plan Salaried VEBA Union VEBA 2015 2014 2015 2014 2015 2014 Accumulated net actuarial (loss) gain $ (1.0 ) $ (1.9 ) $ (13.6 ) $ (21.5 ) $ — $ 65.1 Transition assets 0.1 0.2 — — — — Prior service cost — — (35.9 ) (25.7 ) — (171.7 ) Loss recognized in Accumulated other comprehensive loss $ (0.9 ) $ (1.7 ) $ (49.5 ) $ (47.2 ) $ — $ (106.6 ) |
Schedule of Net Periodic Benefit Costs (Income) | The following table presents the components of net periodic benefit cost (income) for the years ended December 31 (in millions of dollars): Canadian Pension Plan VEBAs 2015 2014 2013 2015 2014 2013 Service cost 1 $ 0.3 $ 0.2 $ 0.3 $ — $ 2.2 $ 2.5 Interest cost 0.3 0.3 0.3 2.7 16.7 14.6 Expected return on plan assets (0.3 ) (0.3 ) (0.3 ) (4.3 ) (51.4 ) (45.1 ) Amortization of prior service cost 2 — — — 3.0 10.6 4.2 Amortization of net actuarial loss (gain) 0.1 0.1 0.2 1.0 (1.8 ) 1.3 Net periodic benefit cost (income) 0.4 0.3 0.5 2.4 (23.7 ) (22.5 ) __________________________ 1. The service cost related to the Salaried VEBA was insignificant for all periods presented. 2. We amortize prior service cost on a straight-line basis over the average remaining years of service to full eligibility for benefits of the active plan participants. |
Schedule of Income (Charges) Related to All Benefit Plans | The following tables present the total charges (income) related to all benefit plans for the periods presented (in millions of dollars): Year Ended December 31, 2015 2014 2013 Included within Fabricated Products: Canadian pension plan $ 0.4 $ 0.3 $ 0.5 Deferred compensation plan 0.1 0.2 0.3 Defined contribution plans 7.8 7.3 7.2 Total Fabricated Products 1 $ 8.3 $ 7.8 $ 8.0 Included within All Other: Net periodic postretirement benefit cost (income) relating to VEBAs 2.4 (23.7 ) (22.5 ) Loss on removal of Union VEBA net assets 493.4 — — Deferred compensation plan 0.3 0.7 0.9 Defined contribution plans 0.8 0.8 0.7 Total All Other 2 $ 496.9 $ (22.2 ) $ (20.9 ) Total $ 505.2 $ (14.4 ) $ (12.9 ) ___________________________ 1. Substantially all of the Fabricated Products segment’s charges related to employee benefits were in Cost of products sold, excluding depreciation and amortization and other items with the remaining balance in SG&A and R&D. 2. Charges (income) related to VEBAs is included within the Statements of Consolidated (Loss) Income as Net periodic postretirement benefit cost (income) relating to VEBAs with the remaining balance in SG&A and R&D. |
Multiemployer Pension Plans (Ta
Multiemployer Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Multiemployer Plans [Abstract] | |
Multiemployer Pension Plan Description and Contributions | participation in multiemployer pension plans for the year ended December 31, 2015 is outlined in the table below: Pension Fund Employer Identification Number Pension Protection Act Zone Status 1 FIP/RP Status Pending/Implemented in 2015 2 Contributions of the Company Surcharge Imposed in 2015 Expiration Date of Collective-Bargaining Agreement 2015 2014 2013 2015 2014 (in millions of dollars) Steelworkers Pension Trust (USW) 3 236648508 Green Green No $ 3.5 $ 3.1 $ 2.9 No Mar 2017 - Sep 2020 Other Funds 4 0.9 0.9 0.9 $ 4.4 $ 4.0 $ 3.8 ________________ 1. The most recent Pension Protection Act zone status available in 2015 and 2014 for the Steelworkers Pension Trust is for the plan's year-end at December 31, 2014 and December 31, 2013 , respectively. The zone status is based on information that we received from the plan and is certified by the plan's actuary. Among other factors, plans in the green zone are at least 80 percent funded. 2. The "FIP/RP Status Pending/Implemented" column indicates if a Financial Improvement Plan (FIP) or a Rehabilitation Plan (RP) is either pending or has been implemented for the plan under the Pension Protection Act. 3. We are party to three USW collective bargaining agreements that require contributions to the Steelworkers Pension Trust. As of December 31, 2015 , USW collective bargaining agreements covering employees at the Newark and Trentwood facilities covered 85% of our USW-represented employees and expires in September 2020. Our monthly contributions per hour worked by each bargaining unit employee at the Newark and Trentwood facilities are (in whole dollars) $1.50 and will increase to $1.75 in 2019. The union contracts covering employees at the Richmond, Virginia facility and Florence, Alabama facility cover 10% and 5% of our USW-represented employees, respectively, and expire in November 2017 and March 2017, respectively. 4. Other Funds consists of plans that are not individually significant. |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2015 2014 2013 Cost of products sold, excluding depreciation and amortization and other items $ 4.7 $ 4.7 $ 4.6 SG&A and R&D 9.3 8.0 11.1 Total costs recorded in connection with STI Plans $ 14.0 $ 12.7 $ 15.7 The following table presents the allocation of the charges detailed above, by segment (in millions of dollars): Year Ended December 31, 2015 2014 2013 Fabricated Products $ 10.2 $ 9.6 $ 11.2 All Other 3.8 3.1 4.5 Total costs recorded in connection with STI Plans $ 14.0 $ 12.7 $ 15.7 |
Non-cash compensation expense | Non-cash compensation expense by type of award under LTI Programs was as follows for each period presented (in millions of dollars): Year Ended December 31, 2015 2014 2013 Non-vested common shares and restricted stock units $ 4.4 $ 3.9 $ 4.3 EVA-Based Performance Shares 0.9 1.0 2.3 TSR-Based Performance Shares 4.0 1.9 — Total non-cash compensation expense $ 9.3 $ 6.8 $ 6.6 The following table presents the allocation of the charges detailed above, by segment (in millions of dollars): Year Ended December 31, 2015 2014 2013 Fabricated Products $ 3.5 $ 3.2 $ 2.2 All Other 5.8 3.6 4.4 Total non-cash compensation expense $ 9.3 $ 6.8 $ 6.6 |
Unrecognized gross compensation cost data | Unrecognized Gross Compensation Cost Data. The following table presents unrecognized gross compensation cost data by type of award as of December 31, 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 $ 5.8 1.9 EVA-Based Performance Shares $ 0.3 0.2 TSR-Based Performance Shares $ 7.5 1.9 |
Summary of activity of non-vested common shares, restricted stock units, and performance shares | A summary of the activity with respect to non-vested common shares, restricted stock units, EVA-Based Performance Shares and TSR-Based Performance Shares for the year ended December 31, 2015 is 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 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 72.09 2,325 69.83 — — 150,424 95.68 Vested (63,515 ) 53.68 (2,161 ) 52.91 (49,945 ) 44.81 — — Forfeited 1 (987 ) 66.93 — — (1,212 ) 57.54 (770 ) 89.12 Canceled 1 — — — — (147,314 ) 44.59 — — Outstanding at December 31, 2015 156,553 $ 67.20 5,521 $ 66.64 155,105 $ 57.76 299,877 $ 89.43 _____________________ 1. For EVA-Based Performance Shares and TSR-Based Performance Shares, the number of shares granted and forfeited are presented at their maximum payout; and the number of shares canceled includes the number of shares that did not vest due to EVA performance results falling below those required for maximum payout. |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value [Table Text Block] | The weighted-average grant-date fair value per share for shares granted by type of award was as follows for each period presented: Year Ended December 31, 2015 2014 2013 Non-vested common shares $ 72.09 $ 66.42 $ 58.65 Restricted stock units $ 69.83 $ 67.42 $ 57.70 EVA-Based Performance Shares $ — $ — $ 57.75 TSR-Based Performance Shares $ 95.68 $ 83.18 $ — |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental payments | Minimum rental commitments under operating leases at December 31, 2015 were as follows (in millions of dollars): Year Ended December 31, 2016 2017 2018 2019 2020 2021 and Thereafter Minimum rental commitments $ 6.2 $ 5.1 $ 4.1 $ 3.9 $ 2.2 $ 25.8 |
Schedule of future purchase obligations | mounts due under purchase obligations as of December 31, 2015 were as follows (in millions of dollars): Year Ended December 31, 2016 2017 2018 2019 2020 2021 and Thereafter Raw materials $ 179.3 $ — $ — $ — $ — $ — Energy 10.3 9.5 5.6 0.6 0.6 1.5 Capital equipment 5.2 0.1 — — — — Total purchase obligations $ 194.8 $ 9.6 $ 5.6 $ 0.6 $ 0.6 $ 1.5 |
Schedule of changes in environmental contingencies | The following table presents the changes in such accruals, which are primarily included in Long-term liabilities (in millions of dollars): Year Ended December 31, 2015 2014 2013 Beginning balance $ 19.3 $ 22.8 $ 21.7 Additional accruals 1.3 0.8 4.5 Less expenditures (2.0 ) (4.3 ) (3.4 ) Ending balance $ 18.6 $ 19.3 $ 22.8 |
Derivative Financial Instrume36
Derivative Financial Instruments and Related Hedging Programs (Tables) | 12 Months Ended |
Dec. 31, 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): Year Ended December 31, 2015 2014 2013 Included in Other Comprehensive (Loss) Income: Unrealized (loss): Foreign Currency $ (0.3 ) $ — $ — Included in Statement of Consolidated (Loss) Income: Realized (loss) gain 1 : Aluminum (27.3 ) 6.9 (5.5 ) Natural Gas (5.4 ) 1.0 (1.8 ) Electricity (1.9 ) (0.1 ) 0.8 Total realized (loss) gain: $ (34.6 ) $ 7.8 $ (6.5 ) Unrealized (loss) gain 2 : Non-designated hedges of operational risk: Aluminum $ (4.6 ) $ (2.6 ) $ (3.1 ) Natural Gas (0.5 ) (6.0 ) 2.6 Electricity 1.7 (1.8 ) 1.1 Foreign Currency — — 0.1 Total non-designated hedges of operational risk (3.4 ) (10.4 ) 0.7 Option Assets relating to the Convertible Notes 3 — 5.2 24.2 Bifurcated Conversion Feature of the Convertible Notes — (1.6 ) (21.0 ) Total unrealized (loss) gain $ (3.4 ) $ (6.8 ) $ 3.9 ______________________ 1. Realized (loss) gain on hedges of operational risk are recorded within Cost of products sold, excluding depreciation, amortization and other items. 2. Unrealized (loss) gain on hedges of operational risk are recorded within Unrealized loss (gain) on derivative instruments. 3. Unrealized (loss) gain on financial derivatives are recorded within Other (expense) income, net. |
Summary of material derivative positions | The following table summarizes our material derivative positions at December 31, 2015 : Aluminum Maturity Period (month/year) Notional Amount of Contracts (mmlbs) Call option purchase contracts 1/16 through 6/16 4.7 Fixed price purchase contracts 1/16 through 12/17 132.9 Fixed price sales contracts 1/16 through 10/16 3.0 Midwest premium swap contracts 1 1/16 through 12/17 84.9 Natural Gas 2 Maturity Period (month/year) Notional Amount of Contracts (mmbtu) Fixed price purchase contracts 1/16 through 12/18 7,000,000 Euro Maturity Period (month/year) Notional Amount of contracts (euro) Fixed price purchase contracts 3/16 through 12/16 4,699,750 _________________________ 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 December 31, 2015 , we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 73% , 72% and 59% of the expected natural gas purchases for 2016 , 2017 and 2018 , respectively. |
Schedule of Offsetting Derivative Instruments by Counterparty | The following tables present offsetting information regarding our derivatives by type of counterparty as of December 31, 2015 (in millions of dollars): Derivative Assets and Collateral Held by Counterparty Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Counterparty (with netting agreements) $ 1.3 $ — $ 1.3 $ 1.3 $ — $ — Counterparty (with partial netting agreements) 0.3 — 0.3 0.3 — — Total $ 1.6 $ — $ 1.6 $ 1.6 $ — $ — Derivative Liabilities and Collateral Held by Counterparty Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Counterparty (with netting agreements) $ (8.5 ) $ — $ (8.5 ) $ (1.3 ) $ — $ (7.2 ) Counterparty (with partial netting agreements) (7.7 ) — (7.7 ) (0.3 ) — (7.4 ) Total $ (16.2 ) $ — $ (16.2 ) $ (1.6 ) $ — $ (14.6 ) 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 of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Gross Amounts Not Offset 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 of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Gross Amounts Not Offset 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 consist primarily of the fair value of the Bifurcated Conversion Feature and Option Assets at December 31, 2014 (see Note 11 ). |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2015 Level 1 Level 2 Level 3 Total FINANCIAL ASSETS: Derivative Instruments (Non-Designated Hedges): Aluminum – Call option purchase contracts $ — $ 0.2 $ — $ 0.2 Fixed price purchase contracts — 0.3 — 0.3 Fixed price sales contracts — 0.2 — 0.2 Midwest premium swap contracts — — 0.9 0.9 Salaried VEBA and Canadian Pension Plan: Fixed income investment funds in registered investment companies 1 — 15.7 — 15.7 Equity investment funds in registered investment companies 2 — 23.8 — 23.8 Cash and money market investments 3 1.9 — — 1.9 Diversified investment funds in registered investment companies 4 14.7 5.7 — 20.4 All Other Financial Assets: Cash and cash equivalents 5 40.3 32.2 — 72.5 Short-term investments — 30.0 — 30.0 Deferred compensation plan assets — 7.3 — 7.3 Total assets $ 56.9 $ 115.4 $ 0.9 $ 173.2 December 31, 2015 Level 1 Level 2 Level 3 Total FINANCIAL LIABILITIES: Derivative Instruments (Non-Designated Hedges): Aluminum – Fixed price purchase contracts $ — $ (8.9 ) $ — $ (8.9 ) Fixed price sales contracts — (0.1 ) — (0.1 ) Midwest premium swap contracts — — (0.3 ) (0.3 ) Natural Gas – Fixed price purchase contracts — (6.7 ) — (6.7 ) Derivative Instruments (Designated Hedges): Foreign Currency – Euro forward purchase contracts — (0.2 ) — (0.2 ) All Other Financial Liabilities: Senior Notes (207.3 ) — — (207.3 ) Total liabilities $ (207.3 ) $ (15.9 ) $ (0.3 ) $ (223.5 ) 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 VEBAs and Canadian Pension Plan Fixed income investment funds in registered investment companies 1 54.0 340.3 — 394.3 Mortgage-backed securities — 30.1 — 30.1 Corporate debt securities 6 — 75.4 — 75.4 Equity investment funds in registered investment companies 2 — 191.3 — 191.3 United States Treasury securities — 39.5 — 39.5 Municipal debt securities — 1.8 — 1.8 Cash and money market investments 3 19.3 — — 19.3 Asset-backed securities — 8.1 — 8.1 Diversified investment funds in registered investment companies 4 20.4 6.2 — 26.6 All Other Financial Assets Cash and cash equivalents 5 29.5 148.2 — 177.7 Short-term investments — 114.0 — 114.0 Deferred compensation plan assets — 7.3 — 7.3 Total assets $ 123.2 $ 1,046.9 $ 1.0 $ 1,171.1 December 31, 2014 Level 1 Level 2 Level 3 Total 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 ) _________________________ 1. This category represents investments in various fixed income funds with multiple registered investment companies. Such funds invest in diversified portfolios, including: (i) marketable fixed income securities, such as (a) U.S. Treasury and other government and agency securities, (b) municipal bonds, (c) mortgage-backed securities, (d) asset-backed securities, (e) corporate bonds, notes and debentures in various sectors, (f) preferred and common stock, (g) investments in affiliated and other investment companies, (h) short-term investments and other net assets, and (i) repurchase agreements and reverse repurchase agreements; (ii) other commingled investments; (iii) investment grade debt; (iv) fixed income instruments which may be represented by options, future contracts or swap agreements; and (v) cash and cash equivalents. The fair value of certain assets related to the Union VEBA in this category as of December 31, 2014 was estimated using the NAV per share of the investments. 2. This category represents investments in equity funds that invest in portfolios comprised of: (i) equity and equity-related securities of U.S. and non-U.S. issuers across all market capitalizations; (ii) common stock in investment trust funds; and (iii) other short-term investments. The fair value of assets related to the Union VEBA presented in this category as of December 31, 2014 was estimated using the NAV per share of the equity fund investments. 3. This category represents cash and investments in various money market funds. 4. The plan assets are invested in investment funds that hold a diversified portfolio of: (i) U.S and international debt and equity securities; (ii) fixed income securities such as corporate bonds and government bonds; (iii) mortgage-related securities; and (iv) cash and cash equivalents. The fair value of certain assets related to the Union VEBA in this category as of December 31, 2014 was estimated using the NAV per share of the investments. 5. See Note 2 for components of cash and cash equivalents. 6. This category represents investments in fixed income corporate securities in various sectors. Investments in the industrial, financial and utilities sectors in 2014 represented approximately 51% , 37% and 12% of the total portfolio in this category, respectively. The fair value of certain assets related to the Union VEBA in this category as of December 31, 2014 was estimated using the NAV per share of the investments. |
Schedule of quantitative information for Level 3 Midwest premiums derivative contracts | The following table presents quantitative information for Level 3 Midwest premium derivative contracts: Fair Value at December 31, 2015 (in millions of dollars) Valuation Technique Unobservable Input Settlement Period Price Curve Range ($ in unit price) Assets: Midwest premium contracts $ 0.9 Discounted fair value Forward price curve Jan-16 through Dec-17 $0.084 per metric ton to $0.086 per metric ton Liabilities: Midwest premium contracts $ (0.3 ) Discounted fair value Forward price curve Jan-16 through Dec-17 $0.084 per metric ton to $0.086 per metric ton |
Reconciliation of activity for financial instruments classified as Level 3 | The following table presents a reconciliation of activity for the Level 3 Midwest premium derivative contracts on a net basis (in millions of dollars): Year Ended December 31, 2015 2014 Fair value measurement at beginning of period $ 1.0 $ 1.1 Total realized/unrealized (loss) gain included in: Cost of goods sold, excluding depreciation and amortization and other items and Unrealized loss (gain) on derivative instruments (3.9 ) 4.4 Transactions involving Level 3 derivative contracts: Purchases (4.0 ) 2.8 Sales — — Issuances — — Settlements 7.5 (7.3 ) Transactions involving Level 3 derivatives - net 3.5 (4.5 ) Transfers in and (or) out of Level 3 valuation hierarchy — — Fair value measurement at end of period $ 0.6 $ 1.0 Total loss included in Unrealized loss (gain) on derivative instruments, attributable to the change in unrealized gain/loss relating to derivative contracts held at December 31: $ 0.6 $ 1.0 |
Summary of activities relating to the Company's CARO liabilities | The following table summarizes the activity relating to our CARO liabilities (in millions of dollars): Year Ended December 31, 2015 2014 2013 Beginning balance $ 4.8 $ 4.4 $ 4.1 Liabilities settled during the period (0.2 ) — (0.2 ) Accretion expense 0.3 0.4 0.4 Adjustment to accretion expense due to revisions to estimated cash flow and timing of expenditure 1 — — 0.1 Ending balance $ 4.9 $ 4.8 $ 4.4 __________________________________________ 1. The adjustments in 2013 did not have a material impact on the basic and diluted net income per share for 2013. |
Net (Loss) Income Per Share (Ta
Net (Loss) Income Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted earnings per share | Basic and diluted net (loss) income per share for 2015 , 2014 and 2013 were calculated as follows (in millions of dollars, except share and per share amounts): Year Ended December 31, 2015 2014 2013 Numerator: Net (loss) income $ (236.6 ) $ 71.8 $ 104.8 Denominator – Weighted-average common shares outstanding (in thousands): Basic 1 17,201 17,818 18,827 Add: dilutive effect of non-vested common shares, restricted stock units and performance shares — 179 178 Add: dilutive effect of warrants — 596 241 Diluted 2 17,201 18,593 19,246 Net (loss) income per common share, Basic: $ (13.76 ) $ 4.02 $ 5.56 Net (loss) income per common share, Diluted: $ (13.76 ) $ 3.86 $ 5.44 _____________ 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 securities excluded from weighted-average diluted shares | The following securities were excluded from the weighted-average diluted shares computation for 2015 , 2014 and 2013 as their inclusion would have been anti-dilutive (in thousands of shares): Year Ended December 31, 2015 2014 2013 Options to purchase common shares — 17 21 Non-vested common shares, restricted stock units and performance shares 302 — — Warrants 639 — — Total excluded 941 17 21 |
Segment and Geographical Area39
Segment and Geographical Area Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of financial information by operating segment | 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): Year Ended December 31, 2015 2014 2013 Net sales: Fabricated Products $ 1,391.9 $ 1,356.1 $ 1,297.5 Segment operating (loss) income: Fabricated Products 1,2 $ 190.8 $ 151.4 $ 188.6 All Other 3 (536.7 ) (13.5 ) (15.3 ) Total operating (loss) income $ (345.9 ) $ 137.9 $ 173.3 Interest expense (24.1 ) (37.5 ) (35.7 ) Other (expense) income, net (1.8 ) 6.7 5.6 (Loss) income before income taxes $ (371.8 ) $ 107.1 $ 143.2 Depreciation and amortization: Fabricated Products $ 31.9 $ 30.6 $ 27.6 All Other 0.5 0.5 0.5 Total depreciation and amortization $ 32.4 $ 31.1 $ 28.1 Capital expenditures: Fabricated Products $ 62.4 $ 58.5 $ 69.8 All Other 0.7 0.9 0.6 Total capital expenditures $ 63.1 $ 59.4 $ 70.4 December 31, 2015 December 31, 2014 Assets: Fabricated Products $ 904.8 $ 878.9 All Other 4 345.3 864.8 Total assets $ 1,250.1 $ 1,743.7 __________________ 1. Operating income in the Fabricated Products segment for 2015 , 2014 and 2013 included $1.7 million , $1.2 million and $4.0 million , respectively, of environmental expense. Fabricated Products segment operating income included $0.1 million and $1.5 million of asset impairment charge relating to certain property, plant and equipment for 2015 and 2014 , respectively, and none for 2013 . Also included in the Fabricated Products segment operating income for 2015 was a $2.6 million lower of cost or market inventory write-down. 2. Fabricated Products segment results for 2015 , 2014 and 2013 included a non-cash mark-to-market (loss) gain on primary aluminum, natural gas, electricity and foreign currency hedging activities totaling $(3.4) million , $(10.4) million and $0.7 million , respectively. For further discussion regarding mark-to-market matters, see Note 10 . 3. Operating loss of All Other included net periodic postretirement benefit cost (income) of $2.4 million , $(23.7) million and $(22.5) million for 2015 , 2014 and 2013 , respectively. Additionally, operating loss in All Other included Loss on removal of Union VEBA net assets of $493.4 million during the year ended December 31, 2015 . See Note 6 for further details. 4. 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 6 and Note 11 ) 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): Year Ended December 31, 2015 2014 2013 Net sales: Aero/HS products $ 695.5 $ 686.3 $ 677.0 Automotive Extrusions 199.2 173.5 129.5 GE products 426.1 419.5 411.0 Other products 71.1 76.8 80.0 Total net sales $ 1,391.9 $ 1,356.1 $ 1,297.5 |
Schedule of net sales, income taxes paid, and long-lived assets, by geographical area | Geographic information for net sales based on country of origin, income taxes paid and long-lived assets were as follows (in millions of dollars): Year Ended December 31, 2015 2014 2013 Net sales to unaffiliated customers: Fabricated Products – United States $ 1,321.3 $ 1,254.0 $ 1,204.7 Canada 70.6 102.1 92.8 Total net sales $ 1,391.9 $ 1,356.1 $ 1,297.5 Income taxes paid: Fabricated Products – United States $ 0.6 $ 2.1 $ 1.2 Canada 1.7 1.4 0.9 Total income taxes paid $ 2.3 $ 3.5 $ 2.1 Year Ended December 31, 2015 2014 Long-lived assets: 1 Fabricated Products – United States $ 459.6 $ 432.6 Canada 30.9 17.4 Total Fabricated Products long-lived assets 490.5 450.0 All Other – United States 4.9 4.9 Total All Other long-lived assets 4.9 4.9 Total long-lived assets $ 495.4 $ 454.9 __________________ 1. Long-lived assets represent Property, plant and equipment – net. |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | Information for export sales and primary aluminum supply from our major suppliers were as follows: Year Ended December 31, 2015 2014 2013 Percentage of Net sales: Export sales 19 % 19 % 17 % Percentage of total annual primary aluminum supply (lbs): Supply from the Company's five largest suppliers 86 % 71 % 86 % Supply from the Company's largest supplier 28 % 30 % 25 % Supply from the Company's second and third largest suppliers 36 % 25 % 35 % |
Supplemental Cash Flow Inform40
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Year Ended December 31, 2015 2014 2013 (in millions of dollars) Interest paid $ 22.1 $ 25.6 $ 28.1 Non-cash investing and financing activities: Stock repurchases not yet settled (accrued in accounts payable) $ 0.2 $ 0.8 $ 1.0 Unpaid purchases of property and equipment $ 10.5 $ 1.8 $ 4.4 Purchases of property and equipment through capital leasing arrangements $ — $ — $ 0.2 |
Other Income, Net (Tables)
Other Income, Net (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other (expense) income, net consisted of the following for each period presented (in millions of dollars): Year Ended December 31, 2015 2014 2013 Interest income $ 0.4 $ 1.0 $ 0.4 Unrealized gain on financial derivatives 1 — 3.6 3.2 Realized gain on investments 0.8 1.0 1.4 Distribution from third-party trust 2 — — 0.6 All other, net 3 (3.0 ) 1.1 — Other (expense) income, net $ (1.8 ) $ 6.7 $ 5.6 ____________ 1. See Note 1 for a discussion of our accounting policy for such instruments. 2. See Note 12 for discussion of the distribution. 3. See Note 3 for a discussion of the loss we recognized on our repurchase of Senior Notes during the year ended December 31, 2015 . |
Other Comprehensive (Loss) In42
Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Other Comprehensive (Loss) 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): Income Tax Before-Tax (Expense) Net-of-Tax Amount Benefit 1 Amount 2015 Defined benefit pension plan and VEBAs: Net actuarial loss arising during the period $ (12.9 ) $ 4.9 $ (8.0 ) Prior service credit arising during the period 6.8 (2.6 ) 4.2 Total actuarial loss and prior service costs (6.1 ) 2.3 (3.8 ) Reclassification adjustments: Amortization of net actuarial loss 2 1.1 (0.4 ) 0.7 Amortization of prior service cost 2 3.0 (1.2 ) 1.8 Removal of obligation relating to Union VEBA 106.6 (40.2 ) 66.4 Other comprehensive income relating to defined benefit pension plan and VEBAs 104.6 (39.5 ) 65.1 Available for sale securities: Unrealized loss on available for sale securities (0.1 ) — (0.1 ) Reclassification adjustments: Reclassification of unrealized gain upon sale of available for sale securities 3 (0.4 ) 0.2 (0.2 ) Other comprehensive loss relating to available for sale securities (0.5 ) 0.2 (0.3 ) Unrealized loss on foreign currency cash flow hedges (0.3 ) 0.1 (0.2 ) Foreign currency translation loss (0.2 ) — (0.2 ) Other comprehensive income $ 103.6 $ (39.2 ) $ 64.4 2014 Defined benefit pension plan and VEBAs: Net actuarial loss arising during the period $ (39.0 ) $ 14.5 $ (24.5 ) Prior service cost arising during the period (90.5 ) 33.8 (56.7 ) Total actuarial loss and prior service costs (129.5 ) 48.3 (81.2 ) Reclassification adjustments: Amortization of net actuarial (gain) 2 (1.8 ) 0.7 (1.1 ) Amortization of prior service cost 2 10.6 (3.9 ) 6.7 Other comprehensive loss relating to defined benefit pension plan and VEBAs (120.7 ) 45.1 (75.6 ) Available for sale securities: Unrealized loss 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 loss relating to available for sale securities (0.3 ) 0.1 (0.2 ) Foreign currency translation gain 0.4 — 0.4 Other comprehensive loss $ (120.6 ) $ 45.2 $ (75.4 ) Income Tax Before-Tax (Expense) Net-of-Tax Amount Benefit 1 Amount 2013 Defined benefit pension plan and VEBAs: Net actuarial gain arising during the period $ 87.0 $ (32.5 ) $ 54.5 Prior service cost arising during the period (84.8 ) 31.8 (53.0 ) Total actuarial gain and prior service costs 2.2 (0.7 ) 1.5 Reclassification adjustments: Amortization of net actuarial loss 2 1.5 (0.5 ) 1.0 Amortization of prior service cost 2 4.2 (1.6 ) 2.6 Other comprehensive income relating to defined benefit pension plan and VEBAs 7.9 (2.8 ) 5.1 Available for sale securities: Unrealized gain on available for sale securities 1.0 (0.3 ) 0.7 Reclassification adjustments: Reclassification of unrealized gain upon sale of available for sale securities 3 (1.0 ) 0.3 (0.7 ) Other comprehensive income relating to available for sale securities — — — Foreign currency translation gain 0.2 — 0.2 Other comprehensive income $ 8.1 $ (2.8 ) $ 5.3 ____________ 1. 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 benefit (provision). 2. Amounts reclassified out of Accumulated other comprehensive loss relating to VEBA adjustments were included as a component of Net periodic postretirement benefit cost (income) relating to 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 (expense) income, net. We use the specific identification method to determine the amount reclassified out of Accumulated other comprehensive loss. |
Guarantor and Non-Guarantor F43
Guarantor and Non-Guarantor Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Guarantor and Non-Guarantor Financial Statement [Abstract] | |
Schedule of Condensed Financial Statements | CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) December 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 72.2 $ 0.3 $ — $ 72.5 Short-term investments — 30.0 — — 30.0 Receivables: Trade receivables – net — 114.0 2.7 — 116.7 Intercompany receivables — 111.2 1.1 (112.3 ) — Other — 3.8 2.3 — 6.1 Inventories — 216.3 6.6 (3.3 ) 219.6 Prepaid expenses and other current assets 0.2 56.2 1.7 (1.4 ) 56.7 Total current assets 0.2 603.7 14.7 (117.0 ) 501.6 Investments in and advances to subsidiaries 1,077.2 31.4 — (1,108.6 ) — Property, plant and equipment – net — 464.3 31.1 — 495.4 Long-term intercompany receivables — — 3.1 (3.1 ) — Deferred tax assets – net — 155.6 — 7.0 162.6 Intangible assets – net — 30.5 — — 30.5 Goodwill — 37.2 — — 37.2 Other assets 3.2 19.5 0.1 — 22.8 Total $ 1,080.6 $ 1,342.2 $ 49.0 $ (1,221.7 ) $ 1,250.1 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 0.5 $ 73.6 $ 2.6 $ — $ 76.7 Intercompany payable 106.5 14.8 4.0 (125.3 ) — Accrued salaries, wages and related expenses — 38.3 1.5 — 39.8 Other accrued liabilities 1.4 52.3 0.4 (1.4 ) 52.7 Short-term capital lease — 0.1 — — 0.1 Total current liabilities 108.4 179.1 8.5 (126.7 ) 169.3 Net liabilities of Salaried VEBA — 19.0 — — 19.0 Deferred tax liabilities — — 2.1 — 2.1 Long-term intercompany payable — 3.1 — (3.1 ) — Long-term liabilities — 81.3 6.2 — 87.5 Long-term debt 197.8 — — — 197.8 Total liabilities 306.2 282.5 16.8 (129.8 ) 475.7 Total stockholders’ equity 774.4 1,059.7 32.2 (1,091.9 ) 774.4 Total $ 1,080.6 $ 1,342.2 $ 49.0 $ (1,221.7 ) $ 1,250.1 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 (LOSS) INCOME (In millions of dollars) Year Ended December 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,361.6 $ 123.3 $ (93.0 ) $ 1,391.9 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 1,095.6 108.4 (88.6 ) 1,115.4 Lower of cost or market inventory write-down — 2.6 — — 2.6 Unrealized loss on derivative instruments — 3.4 — — 3.4 Depreciation and amortization — 31.3 1.1 — 32.4 Selling, general, administrative, research and development: Selling, general, administrative, research and development 4.3 76.5 9.3 (2.0 ) 88.1 Net periodic postretirement benefit cost relating to Salaried VEBA — 2.4 — — 2.4 Loss on removal of Union VEBA net assets — 493.4 — — 493.4 Total selling, general, administrative, research and development 4.3 572.3 9.3 (2.0 ) 583.9 Other operating charges, net — 0.1 — — 0.1 Total costs and expenses 4.3 1,705.3 118.8 (90.6 ) 1,737.8 Operating (loss) income (4.3 ) (343.7 ) 4.5 (2.4 ) (345.9 ) Other (expense) income: Interest expense (23.5 ) (0.9 ) — 0.3 (24.1 ) Other (expense) income, net (2.5 ) 3.5 (2.5 ) (0.3 ) (1.8 ) (Loss) income before income taxes (30.3 ) (341.1 ) 2.0 (2.4 ) (371.8 ) Income tax benefit — 122.5 1.3 11.4 135.2 (Loss) earnings in equity of subsidiaries (206.3 ) 0.9 — 205.4 — Net (loss) income $ (236.6 ) $ (217.7 ) $ 3.3 $ 214.4 $ (236.6 ) Comprehensive (loss) income $ (172.2 ) $ (153.5 ) $ 3.5 $ 150.0 $ (172.2 ) CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME (In millions of dollars) Year Ended December 31, 2014 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,323.4 $ 133.9 $ (101.2 ) $ 1,356.1 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 1,098.3 117.8 (98.6 ) 1,117.5 Unrealized loss on derivative instruments — 10.4 — — 10.4 Depreciation and amortization — 30.0 1.1 — 31.1 Selling, general, administrative, research and development: Selling, general, administrative, research and development 4.1 69.7 9.9 (2.3 ) 81.4 Net periodic postretirement benefit income relating to VEBAs — (23.7 ) — — (23.7 ) Total selling, general, administrative, research and development 4.1 46.0 9.9 (2.3 ) 57.7 Other operating charges, net — 1.5 — — 1.5 Total costs and expenses 4.1 1,186.2 128.8 (100.9 ) 1,218.2 Operating (loss) income (4.1 ) 137.2 5.1 (0.3 ) 137.9 Other (expense) income: Interest expense (37.5 ) (0.6 ) — 0.6 (37.5 ) Other income (expense), net 3.7 3.2 0.4 (0.6 ) 6.7 (Loss) income before income taxes (37.9 ) 139.8 5.5 (0.3 ) 107.1 Income tax (provision) benefit — (50.2 ) 0.8 14.1 (35.3 ) Earnings in equity of subsidiaries 109.7 6.0 — (115.7 ) — Net income $ 71.8 $ 95.6 $ 6.3 $ (101.9 ) $ 71.8 Comprehensive (loss) income $ (3.6 ) $ 19.9 $ 6.6 $ (26.5 ) $ (3.6 ) CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (In millions of dollars) Year Ended December 31, 2013 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 1,275.2 $ 118.0 $ (95.7 ) $ 1,297.5 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 1,026.0 105.7 (92.8 ) 1,038.9 Unrealized gain on derivative instruments — (0.7 ) — — (0.7 ) Depreciation and amortization — 27.0 1.1 — 28.1 Selling, general, administrative, research and development: Selling, general, administrative, research and development 3.8 70.1 8.9 (2.4 ) 80.4 Net periodic postretirement benefit income relating to VEBAs — (22.5 ) — — (22.5 ) Total selling, general, administrative, research and development 3.8 47.6 8.9 (2.4 ) 57.9 Total costs and expenses 3.8 1,099.9 115.7 (95.2 ) 1,124.2 Operating (loss) income (3.8 ) 175.3 2.3 (0.5 ) 173.3 Other (expense) income: Interest (expense) income (36.6 ) 0.5 — 0.4 (35.7 ) Other income, net 3.9 2.0 — (0.3 ) 5.6 (Loss) income before income taxes (36.5 ) 177.8 2.3 (0.4 ) 143.2 Income tax (provision) benefit — (68.1 ) 15.7 14.0 (38.4 ) Earnings in equity of subsidiaries 141.3 17.6 — (158.9 ) — Net income $ 104.8 $ 127.3 $ 18.0 $ (145.3 ) $ 104.8 Comprehensive income $ 110.1 $ 131.6 $ 19.0 $ (150.6 ) $ 110.1 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 285.7 $ (127.2 ) $ 0.3 $ — $ 158.8 Cash flows from investing activities: Capital expenditures — (47.9 ) (15.2 ) — (63.1 ) 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 — 35.6 (15.2 ) — 20.4 Cash flows from financing activities: Repurchase of Senior Notes (30.0 ) — — — (30.0 ) Settlement of Convertible Notes (175.0 ) — — — (175.0 ) Proceeds from cash-settled call options related to settlement of Convertible Notes 94.9 — — — 94.9 Payment for conversion premium related to settlement of Convertible Notes (94.9 ) — — — (94.9 ) Cash paid for financing costs (0.6 ) — — — (0.6 ) Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest — 1.3 — — 1.3 Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (2.8 ) — — — (2.8 ) Repurchase of common stock (49.2 ) — — — (49.2 ) Cash dividends paid to stockholders (28.1 ) — — — (28.1 ) Intercompany loan — (12.8 ) 12.8 — — Net cash (used in) provided by financing activities (285.7 ) (11.5 ) 12.8 — (284.4 ) Net decrease in cash and cash equivalents during the period — (103.1 ) (2.1 ) — (105.2 ) Cash and cash equivalents at beginning of period — 175.3 2.4 — 177.7 Cash and cash equivalents at end of period $ — $ 72.2 $ 0.3 $ — $ 72.5 CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2014 Parent Guarantor 1 Subsidiaries Non-Guarantor Subsidiaries Consolidating 1 Adjustments Consolidated Cash flows from operating activities: Net cash provided by operating activities $ 35.6 $ 351.8 $ 6.7 $ (270.0 ) $ 124.1 Cash flows from investing activities: Capital expenditures — (56.4 ) (3.0 ) — (59.4 ) Purchase of available for sale securities — (93.5 ) — — (93.5 ) Proceeds from disposition of available for sale securities — 108.2 — — 108.2 Net cash used in investing activities — (41.7 ) (3.0 ) — (44.7 ) Cash flows from financing activities: Payment of capital lease liability — (0.1 ) — — (0.1 ) 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 (44.1 ) — — — (44.1 ) Cash dividends paid to stockholders (25.4 ) — — — (25.4 ) Cash dividends paid to Parent — (270.0 ) — 270.0 — Intercompany loan 31.3 (23.2 ) (8.1 ) — — Net cash used in financing activities (40.6 ) (292.5 ) (8.1 ) 270.0 (71.2 ) Net (decrease) increase in cash and cash equivalents during the period (5.0 ) 17.6 (4.4 ) — 8.2 Cash and cash equivalents at beginning of period 5.0 157.7 6.8 — 169.5 Cash and cash equivalents at end of period $ — $ 175.3 $ 2.4 $ — $ 177.7 ____________ 1. The presentation of cash flows from operating activities and cash flows from financing activities in the 2014 table above has been restated from the prior year presentation to reflect $270.0 million of dividends paid in the fourth quarter of 2014 from the Guarantor Subsidiaries to the Parent. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Year Ended December 31, 2013 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash (used in) provided by operating activities $ (29.2 ) $ 131.7 $ 9.2 $ — $ 111.7 Cash flows from investing activities: Capital expenditures — (66.5 ) (3.9 ) — (70.4 ) Purchase of available for sale securities — (227.8 ) — — (227.8 ) Proceeds from disposition of available for sale securities — 183.1 — — 183.1 Change in restricted cash — 0.7 1.0 — 1.7 Net cash used in investing activities — (110.5 ) (2.9 ) — (113.4 ) Cash flows from financing activities: Payment of capital lease liability — (0.1 ) — — (0.1 ) Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest — 1.1 — — 1.1 Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (2.5 ) — — — (2.5 ) Repurchase of common stock (78.3 ) — — — (78.3 ) Cash dividends paid to stockholders (23.0 ) — — — (23.0 ) Cash dividend returned to the Company 0.6 — — — 0.6 Intercompany loan 132.4 (130.5 ) (1.9 ) — — Net cash provided by (used in) financing activities 29.2 (129.5 ) (1.9 ) — (102.2 ) Net (decrease) increase in cash and cash equivalents during the period — (108.3 ) 4.4 — (103.9 ) Cash and cash equivalents at beginning of period 5.0 266.0 2.4 — 273.4 Cash and cash equivalents at end of period $ 5.0 $ 157.7 $ 6.8 $ — $ 169.5 |
Quarterly Financial Data Quarte
Quarterly Financial Data Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Data [Abstract] | |
Schedule of Quarterly Financial Information | The following tables present the unaudited financial data for each of the interim periods in 2015 and 2014 (in millions of dollars, except per share amounts): Quarter Ended 31-Mar 1 Quarter Ended 30-Jun Quarter Ended 30-Sep Quarter Ended 31-Dec 2015 Net sales $ 371.7 $ 367.2 $ 336.4 $ 316.6 Cost of products sold, excluding depreciation, amortization and other items 302.3 294.8 267.3 251.0 Lower of cost or market inventory write-down — — — 2.6 Unrealized loss (gain) on derivative instruments 4.5 1.5 1.7 (4.3 ) Gross profit 64.9 70.9 67.4 67.3 Operating (loss) income (458.6 ) 37.0 40.5 35.2 Net (loss) income $ (292.2 ) $ 20.2 $ 22.1 $ 13.3 Net (loss) income per common share, Basic $ (16.85 ) $ 1.19 $ 1.29 $ 0.76 Net (loss) income per common share, Diluted $ (16.85 ) $ 1.11 $ 1.21 $ 0.73 _________________________ 1. The quarter ended March 31, 2015 includes the loss recognized on removal of the Union VEBA net assets. See Note 6 for additional information. Quarter Ended 31-Mar Quarter Ended 30-Jun Quarter Ended 30-Sep Quarter Ended 31-Dec 2014 Net sales $ 335.1 $ 344.1 $ 338.9 $ 338.0 Cost of products sold, excluding depreciation, amortization and other items 282.9 275.5 280.4 278.7 Unrealized (gain) loss on derivative instruments (2.0 ) (1.6 ) 3.6 10.4 Gross profit 54.2 70.2 54.9 48.9 Operating income 32.1 46.4 32.6 26.8 Net income $ 15.8 $ 24.5 $ 15.9 $ 15.6 Net income per common share, Basic $ 0.88 $ 1.38 $ 0.90 $ 0.88 Net income per common share, Diluted $ 0.85 $ 1.33 $ 0.85 $ 0.85 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies, Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)segment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Accounting policies additional disclosures | |||||||
Number of operating segments | segment | 1 | ||||||
Non-cash impairment charges | $ 0.1 | $ 1.5 | $ 0 | ||||
Advertising costs | 1.2 | 0.6 | 1.3 | ||||
Research and development costs | 9.5 | 8.9 | 7.8 | ||||
Lower of cost or market inventory write-down | $ 2.6 | $ 0 | $ 0 | $ 0 | 2.6 | 0 | $ 0 |
Excess of current cost over the stated LIFO value of inventory | (24.1) | (24.1) | 37.6 | ||||
Impairment of the carrying value of goodwill | 0 | 0 | 0 | ||||
Undiscounted workers' compensation liabilities | 23.5 | $ 23.5 | $ 25.9 | ||||
Discount rate used in estimating liabilities for worker compensation claims | 1.75% | 1.75% | |||||
Accrued employee healthcare benefits | 3.2 | $ 3.2 | $ 2.9 | ||||
Margin deposits with counterparties | 0 | 0 | $ 0 | ||||
Customer deposits, current | $ 0.9 | $ 0.9 | |||||
Minimum | |||||||
Accounting policies additional disclosures | |||||||
Period over which accounts receivable is due, days | 30 days | ||||||
Number of days in maturity for debt investment securities to be classified as short-term investments | 90 days | ||||||
Maximum | |||||||
Accounting policies additional disclosures | |||||||
Number of days to maturity for debt investment securities to be classified as cash and cash equivalents | 90 days | ||||||
Period over which accounts receivable is due, days | 60 days |
Summary of Significant Accoun46
Summary of Significant Accounting Policies, Narrative, Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment | |||
Interest expense capitalized as construction in progress | $ 1.8 | $ 2.5 | $ 3.4 |
Depreciation expense | 30.8 | 29.5 | 26.4 |
Non-cash impairment charges | 0.1 | 1.5 | 0 |
Fabricated Products | |||
Property, Plant and Equipment | |||
Depreciation expense | 30.3 | 29 | 25.8 |
Fabricated Products | Idled equipment | |||
Property, Plant and Equipment | |||
Non-cash impairment charges | $ 0.1 | $ 1.5 | $ 0 |
Minimum | Land improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 3 years | ||
Minimum | Buildings and leasehold improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 15 years | ||
Minimum | Machinery and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 1 year | ||
Minimum | Capital lease assets | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 3 years | ||
Maximum | Land improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 25 years | ||
Maximum | Buildings and leasehold improvements | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 45 years | ||
Maximum | Machinery and equipment | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 24 years | ||
Maximum | Capital lease assets | |||
Property, Plant and Equipment | |||
Property, plant and equipment useful lives (in years) | 5 years |
Supplemental Balance Sheet In47
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and Cash Equivalents | ||
Cash and money market funds | $ 40.3 | $ 29.5 |
Commercial paper | 32.2 | 148.2 |
Total | 72.5 | 177.7 |
Trade Receivables - Net | ||
Billed trade receivables | 116.8 | 128.7 |
Unbilled trade receivables | 0.7 | 1.4 |
Trade receivables, gross | 117.5 | 130.1 |
Allowance for doubtful receivables | (0.8) | (0.8) |
Trade receivables - net | 116.7 | 129.3 |
Inventories | ||
Finished products | 79.5 | 73.6 |
Work-in-process | 63.6 | 66.7 |
Raw materials | 53.4 | 54.2 |
Operating supplies and repair and maintenance parts | 23.1 | 20.2 |
Total | 219.6 | 214.7 |
Prepaid Expenses and Other Current Assets | ||
Current derivative assets — Notes 10 and 11 | 1.5 | 85.7 |
Current deferred tax assets | 49.6 | 86.4 |
Prepaid insurance | 1.9 | 2 |
Short-term restricted cash | 0.3 | 0.3 |
Other | 3.4 | 4.2 |
Total | 56.7 | 178.6 |
Property, Plant and Equipment - Net | ||
Land and improvements | 22.7 | 22.9 |
Buildings and leasehold improvements | 71.8 | 63.8 |
Machinery and equipment | 549 | 509.8 |
Construction in progress | 48.5 | 25.2 |
Property, plant and equipment - gross | 692 | 621.7 |
Accumulated depreciation | (196.9) | (166.8) |
Assets held for sale | 0.3 | 0 |
Property, plant and equipment - net | 495.4 | 454.9 |
Other Assets | ||
Restricted cash | 10.9 | 10 |
Deferred financing costs | 4.5 | 5.9 |
Deferred compensation plan assets | 7.3 | 7.3 |
Derivative assets — Notes 10 and 11 | 0.1 | 0 |
Other | 0 | 0.1 |
Total | 22.8 | 23.3 |
Other Accrued Liabilities | ||
Current derivative liabilities — Notes 10 and 11 | 14.1 | 94.9 |
Uncleared cash disbursements | 8 | 9.1 |
Accrued income taxes and taxes payable | 3.1 | 5.2 |
Accrued annual VEBA contribution | 19.6 | 13.7 |
Short-term environmental accrual — Note 9 | 1.6 | 2.3 |
Accrued interest | 1.5 | 3.7 |
Short-term deferred revenue — Note 1 | 1.2 | 0.2 |
Other | 3.6 | 3.7 |
Total | 52.7 | 132.8 |
Long-Term Liabilities | ||
Derivative liabilities — Notes 10 and 11 | 2.1 | 1.9 |
Income tax liabilities | 0.7 | 2.4 |
Workers’ compensation accruals | 21.7 | 21.5 |
Long-term environmental accrual — Note 9 | 17 | 17 |
Long-term asset retirement obligations | 4.8 | 4.4 |
Long-term deferred revenue - Note 1 | 0.3 | 0.5 |
Deferred compensation liability | 7.7 | 7.2 |
Long-term capital leases | 0.1 | 0.1 |
Long-term portion of contingent contribution to Union VEBA – Note 6 | 29.9 | 0 |
Other long-term liabilities | 3.2 | 3.3 |
Total | $ 87.5 | $ 58.3 |
Debt and Credit Facility, Addit
Debt and Credit Facility, Additional Information Regarding Convertible Notes (Details) - Convertible Notes Payable - Convertible Notes - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Instrument [Line Items] | |||
Contractual coupon interest | $ 2 | $ 7.9 | $ 7.9 |
Amortization of discount | 2.4 | 9.1 | 8.2 |
Amortization of deferred financing costs | 0.3 | 1.1 | 1.2 |
Total interest expense | $ 4.7 | $ 18.1 | $ 17.3 |
Debt and Credit Facility, Narra
Debt and Credit Facility, Narrative (Details) | 12 Months Ended | ||||||
Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Mar. 31, 2015USD ($) | May. 23, 2012USD ($) | Mar. 31, 2010USD ($) | ||
Debt Instrument [Line Items] | |||||||
Loss on Repurchase of Debt Instrument | [1] | $ (2,500,000) | $ 0 | $ 0 | |||
Long-term debt | 197,800,000 | 225,000,000 | |||||
Repayments of Unsecured Debt | [1] | 30,000,000 | 0 | 0 | |||
Derivative Asset | $ 1,600,000 | 85,700,000 | |||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Percentage of net orderly liquidation value of eligible inventory | 85.00% | ||||||
Line of Credit | Borrowing Availability Under $45.0 Million | |||||||
Debt Instrument [Line Items] | |||||||
Line of Credit, Ability to Make Restricted Actions, Available Borrowing Necessary After Action with Fixed Charge Coverage Ratio | $ 45,000,000 | ||||||
Senior Notes Due 2020 | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
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 cost | $ 18,800,000 | 19,400,000 | $ 19,400,000 | ||||
Effective interest rate | 8.60% | ||||||
Consolidated Total Indebtedness to EBITDA Ratio | 2 | ||||||
Debt Instrument, Periodic Payment, Principal | $ 27,200,000 | ||||||
Percentage of principal amount repurchased | 107.50% | ||||||
Debt Instrument, Periodic Payment, Interest | $ 800,000 | ||||||
Loss on Repurchase of Debt Instrument | 2,500,000 | ||||||
Long-term debt | 197,800,000 | 225,000,000 | |||||
Debt Instrument, Fair Value Disclosure | 207,300,000 | 244,500,000 | |||||
Repayments of Unsecured Debt | $ 30,000,000 | ||||||
Senior Notes Due 2020 | Senior Notes | Change in control | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage of principal amount | 101.00% | ||||||
Senior Notes Due 2020 | Senior Notes | On or after June 1, 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage of principal amount | 104.125% | ||||||
Senior Notes Due 2020 | Senior Notes | On or after June 1, 2017 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage of principal amount | 102.0625% | ||||||
Senior Notes Due 2020 | Senior Notes | On or after June 1, 2018 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage of principal amount | 100.00% | ||||||
Senior Notes Due 2020 | Senior Notes | On or after June 1, 2015 but prior to June 1, 2016 | |||||||
Debt Instrument [Line Items] | |||||||
Redemption price percentage of principal amount | 100.00% | ||||||
Convertible Notes | Convertible Notes Payable | |||||||
Debt Instrument [Line Items] | |||||||
Principal amount of notes | $ 175,000,000 | ||||||
Interest rate | 4.50% | ||||||
Effective interest rate | 11.00% | ||||||
Redemption price percentage of principal amount | 154.261% | ||||||
Debt Instrument, Periodic Payment | $ 3,900,000 | ||||||
Long-term debt | 172,500,000 | ||||||
Debt Instrument, Unamortized Discount | $ (2,500,000) | ||||||
Debt Instrument, Convertible, Threshold Consecutive Trading Days | 50 days | ||||||
Repayments of Unsecured Debt | $ 273,800,000 | ||||||
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 | ||||||
Stock Issued During Period, Shares, Other | shares | 1,015,185 | ||||||
Convertible Notes | Convertible Notes Payable | Warrant Transactions | |||||||
Debt Instrument [Line Items] | |||||||
Common stock sold related to option counterparties net share-settled warrants | shares | 3,700,000 | ||||||
Revolving Credit Facility | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 300,000,000 | ||||||
Percentage of eligible accounts receivable for borrowing base | 85.00% | ||||||
Percentage of eligible inventory for borrowing base | 75.00% | ||||||
Maximum amount of eligible machinery and equipment for borrowing base | $ 60,000,000 | ||||||
Line of Credit Facility, Possible Future Maximum Borrowing Capacity | 400,000,000 | ||||||
Available borrowing capacity | 288,100,000 | ||||||
Outstanding line of credit | 0 | ||||||
Remaining available borrowing capacity | $ 280,800,000 | ||||||
Interest on Revolving Credit Facility | 3.75% | ||||||
Minimum Amount of Available Borrowing to Maintain | $ 52,500,000 | ||||||
Revolving Credit Facility | Line of Credit | Borrowing Availability Under $45.0 Million | |||||||
Debt Instrument [Line Items] | |||||||
Fixed Charge Coverage Ratio | 1.15 | ||||||
Revolving Credit Facility | Line of Credit | Borrowing Availability Under $30.0 Million | |||||||
Debt Instrument [Line Items] | |||||||
Fixed Charge Coverage Ratio | 1 | ||||||
Line of Credit, Minimum Borrowing Availability Threshold to Maintain Fixed Charge Coverage Ratio | $ 30,000,000 | ||||||
Revolving Credit Facility | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 20,000,000 | ||||||
Outstanding line of credit | $ (7,300,000) | ||||||
[1] | See Note 3 for more information relating to the Senior Notes (defined in Note 3) and the Convertible Notes. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill | ||
Goodwill and intangible asset impairment | $ 0 | |
Goodwill | 37.2 | $ 37.2 |
Fabricated Products | ||
Goodwill | ||
Goodwill | $ 37.2 |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets, Identifiable Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Identifiable intangible assets | ||
Net book value | $ 30.5 | $ 32.1 |
Customer relationships | ||
Identifiable intangible assets | ||
Original cost | 38.5 | |
Accumulated amortization | (8) | (6.4) |
Net book value | $ 30.5 | $ 32.1 |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets, Intangible Assets Amortization (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization expense related to definite-lived intangible assets | $ 1.6 | $ 1.6 | $ 1.7 |
Expected amortization of intangible assets for the next five years | |||
Expected amortization of intangible assets for the next year | 1.6 | ||
2,017 | 1.6 | ||
2,018 | 1.6 | ||
2,019 | 1.6 | ||
2,020 | 1.6 | ||
Expected amortization of intangible assets, after 2020 | $ 22.5 |
Income Tax Matters Income Tax M
Income Tax Matters Income Tax Matters, Income Before Income Taxes Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (373.6) | $ 102.1 | $ 138.9 |
Foreign | 1.8 | 5 | 4.3 |
(Loss) income before income taxes | $ (371.8) | $ 107.1 | $ 143.2 |
Income Tax Matters, Income Tax
Income Tax Matters, Income Tax Benefit (Provision) Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Federal income tax (expense) benefit | |||
Current federal tax (expense) benefit | $ 0.7 | $ (1) | $ 1.1 |
Deferred federal income tax (expense) benefit | 93.2 | 6.4 | (49.7) |
Federal benefit (expense) applied to increase (decrease) Additional capital/Other comprehensive income | 33.5 | (41.6) | 1.3 |
Federal income tax (expense) benefit | 127.4 | (36.2) | (47.3) |
Foreign income tax (expense) benefit | |||
Current foreign tax (expense) benefit | 2.1 | 1 | 16.2 |
Deferred foreign income tax (expense) benefit | (1.2) | 0.3 | (0.5) |
Foreign benefit (expense) applied to increase (decrease) Additional capital/Other comprehensive income | 0.4 | (0.5) | (0.1) |
Foreign income tax (expense) benefit | 1.3 | 0.8 | 15.6 |
State income tax (expense) benefit | |||
Current state tax (expense) benefit | 0.4 | (0.6) | (0.2) |
Deferred state income tax (expense) benefit | 1.8 | 5.1 | (6.7) |
State benefit (expense) applied to increase (decrease) additional capital/Other comprehensive income | 4.3 | (4.4) | 0.2 |
State income tax (expense) benefit | 6.5 | 0.1 | (6.7) |
Total income tax (expense) benefit | |||
Current income tax (expense) benefit | 3.2 | (0.6) | 17.1 |
Deferred income tax (expense) benefit | 93.8 | 11.8 | (56.9) |
Benefit (expense) applied to increase (decrease) Additional capital/Other comprehensive income | 38.2 | (46.5) | 1.4 |
Income tax benefit (provision) | $ 135.2 | $ (35.3) | $ (38.4) |
Income Tax Matters, Reconciliat
Income Tax Matters, Reconciliation Between Income Tax Provision and Statutory Income Tax Provision Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation between income tax provision and statutory income tax provision: | |||
Amount of federal income tax benefit (provision) based on the statutory rate | $ 130.1 | $ (37.5) | $ (50.1) |
(Increase) decrease in federal valuation allowances | (0.6) | 0 | 0.1 |
Non-deductible compensation expense | (0.2) | (0.1) | (0.3) |
Non-deductible expense | (0.3) | (0.3) | (0.9) |
State income taxes, net of federal benefit | 4.2 | 0 | (4.4) |
Foreign income tax benefit | 0.1 | 0.3 | 0 |
Expiration of statute of limitations | 1.7 | 2.3 | 4.6 |
Settlement with taxing authorities | 0 | 0 | 4.4 |
Advance pricing agreement | (0.2) | 0 | 2.9 |
Competent Authority settlement | 0.4 | 0 | 5.3 |
Income tax benefit (provision) | 135.2 | (35.3) | (38.4) |
State and tax expense (benefit) before adjustments | (10.3) | 2.3 | 4.4 |
Increase (decrease) in state tax expense (benefit) due to change in tax rate | 3.1 | $ (1.6) | |
Increase (decrease) in state income tax expense (benefit) due to expiring net operating losses | $ 3 | ||
Increase (decrease) in state tax expense (benefit) due to change in valuation allowance | $ 1.2 |
Income Tax Matters, Components
Income Tax Matters, Components of Deferred Tax Assets and Liabilities Table (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred income tax assets: | ||
Loss and credit carryforwards | $ 255.7 | $ 275.4 |
VEBAs (see Note 6) | 25.9 | 5.1 |
Other assets | 38.7 | 37.8 |
Inventories | 0 | 18.7 |
Valuation allowances | (21.2) | (19.2) |
Total deferred income tax assets | 299.1 | 317.8 |
Deferred income tax liabilities: | ||
Property, plant and equipment | (79.6) | (74.1) |
VEBAs (see Note 6) | 0 | (120.6) |
Inventories | (9.4) | (6.7) |
Total deferred income tax liabilities | (89) | (201.4) |
Net deferred income tax assets | 210.1 | 116.4 |
Deferred Tax Assets, Net of Valuation Allowance, Current | 49.6 | 86.4 |
Net deferred income tax assets, long term | 162.6 | 30.9 |
Deferred tax liability, long term | $ (2.1) | (0.9) |
Net deferred income tax assets, current | $ 86.4 |
Income Tax Matters, Reconcili57
Income Tax Matters, Reconciliation of Changes in the Gross Unrecognized Tax Benefits Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of changes in the gross unrecognized tax benefits: | |||
Gross unrecognized tax benefits at beginning of period | $ 2.2 | $ 3.8 | $ 15.7 |
Gross increases for tax positions of prior years | 0.1 | 0 | 0 |
Gross decreases for tax positions of prior years | 0 | 0 | (7.6) |
Gross decrease for tax positions relating to lapse of a statute of limitation | (0.6) | (1.4) | (3.3) |
Foreign currency translation | 0 | (0.2) | (1) |
Gross unrecognized tax benefits at end of period | $ 1.7 | $ 2.2 | $ 3.8 |
Income Tax Matters Income Tax58
Income Tax Matters Income Tax Matters Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ||||
Operating Loss Carryforwards | $ 564.4 | |||
Excess Tax Benefit From Employee Restricted Stock Resulting In Net Operating Loss Carry forwards | 1.7 | |||
Tax Credit Carryforward, Amount | 29.5 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 2 | $ (0.7) | $ 1.2 | |
Unrecognized Tax Benefits | 1.7 | 2.2 | 3.8 | $ 15.7 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 0.6 | 1.1 | 2.7 | |
Accrued interest and penalties on unrecognized tax benefits | 0.2 | 1.4 | ||
Accrued interest and penalties on unrecognized tax benefits, current | 0 | 0 | ||
(Decrease) increase in interest and penalty | (1.2) | (0.9) | (5.2) | |
Foreign currency impact on gross unrecognized tax benefit (including interest and penalties) which increased (decreased) Other comprehensive income (loss) | $ 0.1 | $ 0.3 | $ 0.7 |
Employee Benefits Employee Bene
Employee Benefits Employee Benefits, Assumptions used to determine benefit obligations (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | |
Canadian pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 4.00% | 4.10% | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 3.00% | 3.00% | |
Salaried VEBA | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.60% | 3.90% | |
Union VEBA | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 3.80% | ||
Defined Benefit Plan, Health Care Cost Trend Rate Assumed for Next Fiscal Year | 7.00% | ||
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% |
Employee Benefits Employee Be60
Employee Benefits Employee Benefits, Assumptions used to determine net periodic benefit cost (income) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Salaried VEBA | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.60% | 4.20% | 3.40% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 7.75% | 7.75% | 7.25% |
Union VEBA | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.70% | 4.00% | |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 6.75% | 6.25% | |
Initial medical trend rate used in calculating net periodic benefit cost | 7.50% | 8.00% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% | |
Defined Benefit Plan, Year that Rate Reaches Ultimate Trend Rate | 2,019 | 2,019 | 2,019 |
Canadian pension plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.00% | 4.90% | 4.40% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets | 5.10% | 4.75% | 4.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.00% | 3.00% | 3.00% |
Employee Benefits Employee Be61
Employee Benefits Employee Benefits, Benefit obligations and funded status of our Canadian pension and the VEBAs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Change in plan assets: | ||
Net Asset In Respect Of Vebas | $ 0 | $ 340.1 |
Net liabilities of Salaried VEBA | 19 | 17.2 |
Accrued Annual Veba Contribution | 19.6 | 13.7 |
Union VEBA | ||
Change in benefit obligation: | ||
Obligation at beginning of year | 391.5 | |
Defined Benefit Plan, Settlements, Benefit Obligation | (391.5) | |
Obligation at end of year | 0 | 391.5 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 731.6 | |
Defined Benefit Plan, Settlements, Plan Assets | (778.3) | |
Fair value of plan assets at end of year | 0 | 731.6 |
Defined Benefit Plan, Funded Status of Plan | 0 | 340.1 |
Prior Service Cost Due to a New Death Benefit | 15.9 | |
Actuarial (Gain) Loss Due To Change In Discount Rate | 45 | |
Actuarial (gain) loss due to changes in prescription drug claim costs and Retiree Drug Subsidy assumptions | (18) | |
Actuarial (Gain) Loss Due To Changes In Administrative Costs | 0.4 | |
Prior Service Cost Due to Increase in the Annual Healthcare Reimbursement | 60.5 | |
Accrued Veba contingent contribution - total | 46.7 | |
Accrued Annual Veba Contribution | 16.8 | |
Salaried VEBA | ||
Change in benefit obligation: | ||
Obligation at beginning of year | 79.4 | |
Obligation at end of year | 77.9 | 79.4 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 62.2 | |
Fair value of plan assets at end of year | 58.9 | 62.2 |
Defined Benefit Plan, Funded Status of Plan | (19) | (17.2) |
Prior Service Cost resulting from a change in benefit cost for plan participants | 14 | |
Prior Service Cost Due to Increase in the Annual Healthcare Reimbursement | 13.2 | |
Accrued Annual Veba Contribution | 2.8 | |
VEBAs | ||
Change in benefit obligation: | ||
Obligation at beginning of year | 470.9 | 374.7 |
Defined Benefit Plan, Foreign Currency Exchange Rate Gain (Loss) | 0 | 0 |
Defined Benefit Plan, Service Cost | 0 | 2.2 |
Defined Benefit Plan, Interest Cost | 2.7 | 16.7 |
Defined Benefit Plan, Plan Amendments | 13.2 | 90.4 |
Defined Benefit Plan, Actuarial Gain (Loss) | 11.2 | (10.2) |
Benefits paid by VEBA | (6.2) | (24.7) |
Defined Benefit Plan, Gross Prescription Drug Subsidy Receipts Received | 0 | 1.4 |
Obligation at end of year | 77.9 | 470.9 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 793.8 | 780.7 |
Defined Benefit Plan, Actual Return on Plan Assets | 0.1 | 22.7 |
Defined Benefit Plan, Contributions by Employer | 49.5 | 13.7 |
Benefits paid by VEBA | (6.2) | (24.7) |
Defined Benefit Plan, Gross Prescription Drug Subsidy Receipts Received | 0 | 1.4 |
Fair value of plan assets at end of year | 58.9 | 793.8 |
Defined Benefit Plan, Funded Status of Plan | (19) | 322.9 |
Actuarial (gain) loss due to projected lower benefit utilization | 5.5 | 53.6 |
Actuarial (Gain) Loss Due To Change In Discount Rate | (2) | |
Actuarial (Gain) Loss Due To Changes In Census Data | (3.7) | 37.2 |
Canadian pension plan | ||
Change in benefit obligation: | ||
Obligation at beginning of year | 7 | 6.6 |
Defined Benefit Plan, Foreign Currency Exchange Rate Gain (Loss) | (1) | (0.5) |
Defined Benefit Plan, Service Cost at Balance Sheet Exchange Rate | 0.2 | 0.2 |
Defined Benefit Plan, Interest Cost at Balance Sheet Exchange Rate | 0.2 | 0.3 |
Defined Benefit Plan, Actuarial Gain (Loss) | 0.1 | (0.7) |
Defined Benefit Plan, Benefits Paid | 0.2 | 0.3 |
Obligation at end of year | 6.1 | 7 |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | 6.3 | 6.2 |
Defined Benefit Plan, Foreign Currency Exchange Rate Changes, Plan Assets | (1) | (0.5) |
Defined Benefit Plan, Actual Return on Plan Assets | 0.3 | 0.6 |
Defined Benefit Plan, Contributions by Employer | 0.3 | 0.3 |
Defined Benefit Plan, Benefits Paid | 0.2 | 0.3 |
Fair value of plan assets at end of year | 5.7 | 6.3 |
Defined Benefit Plan, Funded Status of Plan | $ (0.4) | $ (0.7) |
Employee Benefits Employee Be62
Employee Benefits Employee Benefits, Net assets (liabilities) of each VEBA (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Salaried VEBA | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Benefit Obligation | $ 77.9 | $ 79.4 |
Defined Benefit Plan, Fair Value of Plan Assets | 58.9 | 62.2 |
Defined Benefit Plan, Funded Status of Plan | (19) | (17.2) |
Union VEBA | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Benefit Obligation | 0 | 391.5 |
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 731.6 |
Defined Benefit Plan, Funded Status of Plan | $ 0 | $ 340.1 |
Employee Benefits Employee Be63
Employee Benefits Employee Benefits, Net benefits expected to be paid in each of the next five fiscal years (Details) $ in Millions | Dec. 31, 2015USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 7.8 |
2,017 | 7.5 |
2,018 | 7.2 |
2,019 | 7 |
2,020 | 6.7 |
2020-2023 | 28.8 |
Canadian pension plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 0.2 |
2,017 | 0.2 |
2,018 | 0.2 |
2,019 | 0.3 |
2,020 | 0.3 |
2020-2023 | 1.6 |
VEBAs | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 7.6 |
2,017 | 7.3 |
2,018 | 7 |
2,019 | 6.7 |
2,020 | 6.4 |
2020-2023 | $ 27.2 |
Employee Benefits Employee Be64
Employee Benefits Employee Benefits, Amount of loss recognized in accumulated other comprehensive loss (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Canadian pension plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | $ (1) | $ (1.9) |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Transition Assets (Obligations), before Tax | 0.1 | 0.2 |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | 0.9 | 1.7 |
Salaried VEBA | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | (13.6) | (21.5) |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | 35.9 | 25.7 |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | 49.5 | 47.2 |
Union VEBA | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax | 0 | 65.1 |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | 0 | 171.7 |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | $ 0 | $ 106.6 |
Employee Benefits, Net Periodic
Employee Benefits, Net Periodic Benefit Costs and Charges Relating To Other Benefit Plans(Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Net Periodic Benefit Costs and Charges Relating to Other Benefit Plans | ||||
Non-cash net periodic benefit income | [1] | $ 2.8 | $ (23.5) | $ (22) |
Total | 505.2 | (14.4) | (12.9) | |
Fabricated Products | ||||
Net Periodic Benefit Costs and Charges Relating to Other Benefit Plans | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense | 0.1 | 0.2 | 0.3 | |
Defined contribution plans | 7.8 | 7.3 | 7.2 | |
Total | 8.3 | 7.8 | 8 | |
All Other | ||||
Net Periodic Benefit Costs and Charges Relating to Other Benefit Plans | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense | 0.3 | 0.7 | 0.9 | |
Defined contribution plans | 0.8 | 0.8 | 0.7 | |
Total | 496.9 | (22.2) | (20.9) | |
Canadian pension plan | Fabricated Products | ||||
Net Periodic Benefit Costs and Charges Relating to Other Benefit Plans | ||||
Non-cash net periodic benefit income | 0.4 | 0.3 | 0.5 | |
VEBAs | All Other | ||||
Net Periodic Benefit Costs and Charges Relating to Other Benefit Plans | ||||
Non-cash net periodic benefit income | $ 2.4 | $ (23.7) | $ (22.5) | |
[1] | See Note 6 for the impact of removing the Union VEBA (defined in Note 6) net assets. |
Employee Benefits Employee Be66
Employee Benefits Employee Benefits, Components of net periodic benefit cost (income) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net periodic benefit cost (income) | [1] | $ 2.8 | $ (23.5) | $ (22) |
VEBAs | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 0 | 2.2 | ||
Defined Benefit Plan, Interest Cost | 2.7 | 16.7 | ||
Fabricated Products | Canadian pension plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 0.3 | 0.2 | 0.3 | |
Defined Benefit Plan, Interest Cost | 0.3 | 0.3 | 0.3 | |
Defined Benefit Plan, Expected Return on Plan Assets | 0.3 | 0.3 | 0.3 | |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 | 0 | |
Defined Benefit Plan, Amortization of Gains (Losses) | (0.1) | (0.1) | (0.2) | |
Net periodic benefit cost (income) | 0.4 | 0.3 | 0.5 | |
All Other | VEBAs | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Benefit Plan, Service Cost | 0 | 2.2 | 2.5 | |
Defined Benefit Plan, Interest Cost | 2.7 | 16.7 | 14.6 | |
Defined Benefit Plan, Expected Return on Plan Assets | 4.3 | 51.4 | 45.1 | |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 3 | 10.6 | 4.2 | |
Defined Benefit Plan, Amortization of Gains (Losses) | (1) | 1.8 | (1.3) | |
Net periodic benefit cost (income) | $ 2.4 | $ (23.7) | $ (22.5) | |
[1] | See Note 6 for the impact of removing the Union VEBA (defined in Note 6) net assets. |
Employee Benefits, Total charge
Employee Benefits, Total charges (income) related to all benefit plans (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Defined Benefit Plan Disclosure [Line Items] | ||||
Loss on removal of Union VEBA net assets – Note 6 | $ 493.4 | $ 0 | $ 0 | |
Components of Net Periodic Benefit Cost (Income) | ||||
Net periodic benefit cost (income) | [1] | 2.8 | (23.5) | (22) |
Defined Benefit Plan Net Periodic Benefit Cost And Charges Relating To Other Benefit Plans | 505.2 | (14.4) | (12.9) | |
Fabricated Products | ||||
Components of Net Periodic Benefit Cost (Income) | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense | 0.1 | 0.2 | 0.3 | |
Defined Contribution Plan, Cost Recognized | 7.8 | 7.3 | 7.2 | |
Defined Benefit Plan Net Periodic Benefit Cost And Charges Relating To Other Benefit Plans | 8.3 | 7.8 | 8 | |
Fabricated Products | Canadian pension plan | ||||
Components of Net Periodic Benefit Cost (Income) | ||||
Net periodic benefit cost (income) | 0.4 | 0.3 | 0.5 | |
All Other | ||||
Components of Net Periodic Benefit Cost (Income) | ||||
Deferred Compensation Arrangement with Individual, Compensation Expense | 0.3 | 0.7 | 0.9 | |
Defined Contribution Plan, Cost Recognized | 0.8 | 0.8 | 0.7 | |
Defined Benefit Plan Net Periodic Benefit Cost And Charges Relating To Other Benefit Plans | 496.9 | (22.2) | (20.9) | |
All Other | VEBAs | ||||
Components of Net Periodic Benefit Cost (Income) | ||||
Net periodic benefit cost (income) | $ 2.4 | $ (23.7) | $ (22.5) | |
[1] | See Note 6 for the impact of removing the Union VEBA (defined in Note 6) net assets. |
Employee Benefits, Defined Cont
Employee Benefits, Defined Contribution Plans Narrative (Details) - Defined Contribution Plan | 12 Months Ended |
Dec. 31, 2015USD ($)productionfacilities | |
Hourly bargaining unit employees | |
Defined Contribution Plan Disclosure [Line Items] | |
Number of production facilities | 9 |
Hourly bargaining unit employees | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Number of production facilities | 3 |
Hourly bargaining unit employees | Concurrent match | |
Defined Contribution Plan Disclosure [Line Items] | |
Number of production facilities | 1 |
Hourly bargaining unit employees | Fixed rate and concurrent match | |
Defined Contribution Plan Disclosure [Line Items] | |
Number of production facilities | 3 |
Hourly bargaining unit employees | No contributions required | |
Defined Contribution Plan Disclosure [Line Items] | |
Number of production facilities | 2 |
Salaried and certain hourly employee | Concurrent match | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan employer concurrent match percentage | 4.00% |
Hired on or after January 1, 2004 | Hourly bargaining unit employees | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan annual employer contribution percentage | 2.00% |
Hired on or after January 1, 2004 | Salaried and certain hourly employee | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan annual employer contribution percentage | 2.00% |
Minimum | Hourly bargaining unit employees | |
Defined Contribution Plan Disclosure [Line Items] | |
Estimated annual contribution to pension and other postretirement benefit plans | $ | $ 1,900,000 |
Minimum | Hourly bargaining unit employees | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ | 800 |
Minimum | Salaried and certain hourly employee | |
Defined Contribution Plan Disclosure [Line Items] | |
Estimated annual contribution to pension and other postretirement benefit plans | $ | $ 6,700,000 |
Minimum | Hired prior to January 1, 2004 | Hourly bargaining unit employees | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan annual employer contribution percentage | 2.00% |
Minimum | Hired prior to January 1, 2004 | Salaried and certain hourly employee | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan annual employer contribution percentage | 2.00% |
Maximum | Hourly bargaining unit employees | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ | $ 2,400 |
Maximum | Hired prior to January 1, 2004 | Hourly bargaining unit employees | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan annual employer contribution percentage | 10.00% |
Maximum | Hired prior to January 1, 2004 | Salaried and certain hourly employee | Fixed rate contributions | |
Defined Contribution Plan Disclosure [Line Items] | |
Defined contribution plan annual employer contribution percentage | 10.00% |
Employee Benefits Employee Be69
Employee Benefits Employee Benefits, Defined Benefit Plans Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)trustrees | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued Annual Veba Contribution | $ 19.6 | $ 13.7 | |
Long-term portion of contingent contribution to Union VEBA – Note 6 | 29.9 | 0 | |
Loss on removal of Union VEBA net assets – Note 6 | 493.4 | 0 | $ 0 |
Canadian pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Benefit Obligation | 6.1 | 7 | 6.6 |
Defined Benefit Plan, Fair Value of Plan Assets | 5.7 | 6.3 | 6.2 |
Defined Benefit Plan, Accumulated Benefit Obligation | 5.4 | 6.2 | |
Defined Benefit Plans, Estimated Future Employer Contributions in Next Fiscal Year | $ 0.3 | ||
Union VEBA | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of Trustees | trustrees | 4 | ||
Percent allocation of total contribution between VEBAs | 85.50% | ||
Accrued Annual Veba Contribution | $ 16.8 | ||
Accrued Veba contingent contribution - total | 46.7 | ||
Defined Benefit Plan, Benefit Obligation | 0 | 391.5 | |
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 731.6 | |
Loss on settlement of Union VEBA - net of tax | 306.9 | ||
Income tax benefit on removal of Union VEBA net assets | $ 186.5 | ||
Salaried VEBA | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percent allocation of total contribution between VEBAs | 14.50% | ||
Accrued Annual Veba Contribution | $ 2.8 | ||
Defined Benefit Plan, Benefit Obligation | 77.9 | 79.4 | |
Defined Benefit Plan, Fair Value of Plan Assets | 58.9 | 62.2 | |
VEBAs | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Cash flow in determining VEBA obligation | 20 | ||
Defined Benefit Plan, Benefit Obligation | 77.9 | 470.9 | 374.7 |
Defined Benefit Plan, Fair Value of Plan Assets | 58.9 | $ 793.8 | $ 780.7 |
Defined Benefit Plan, Future Amortization of Prior Service Cost (Credit) | 4 | ||
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | 4.5 | ||
Defined Benefit Plan, Future Amortization of Gain (Loss) | $ 0.5 | ||
Fixed Income Securities | London Ontario Facility Member | Canadian pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 37.00% | ||
Defined Benefit Plan, Target Plan Asset Allocations | 30.00% | ||
Equity Securities | London Ontario Facility Member | Canadian pension plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Actual Plan Asset Allocations | 59.00% | ||
Defined Benefit Plan, Target Plan Asset Allocations | 66.00% | ||
Company Appointed [Member] | Union VEBA | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of Trustees | trustrees | 2 | ||
Usw Appointed [Member] | Union VEBA | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Number of Trustees | trustrees | 2 | ||
Annual Cash Flows up to $20 Million | VEBAs | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement Medical Plan Contribution Obligation Percentage | 10.00% | ||
Annual Cash Flows in Excess of $20 Million | VEBAs | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement Medical Plan Contribution Obligation Percentage | 20.00% | ||
Maximum | VEBAs | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement Medical Plan Contribution Obligation | $ 20 | ||
Variable cash contribution | VEBAs | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Annual VEBA contribution paid | $ 13.7 |
Multiemployer Pension Plans (De
Multiemployer Pension Plans (Details) | 12 Months Ended | ||
Dec. 31, 2015USD ($)agreements | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Multiemployer Pension Plan Disclosure | |||
Percentage of employees participating in multiemployer pension plans to total employees | 53.00% | ||
Contributions of the Company | $ 4,400,000 | $ 4,000,000 | $ 3,800,000 |
Company's contributions to the multiemployer plans is less than | 5.00% | ||
USW Plan | |||
Multiemployer Pension Plan Disclosure | |||
Employer Identification Number | 236,648,508 | ||
Pension Protection Act Zone Status | Green | Green | |
FIP/RP Status Pending/Implemented in 2013 | No | ||
Contributions of the Company | $ 3,500,000 | $ 3,100,000 | $ 2,900,000 |
Surcharge Imposed in 2015 | No | ||
Expiration Date of Collective-Bargaining Agreement, First | Mar. 31, 2017 | ||
Expiration Date of Collective-Bargaining Agreement, Last | Sep. 30, 2020 | ||
Number of collective-bargaining agreements | agreements | 3 | ||
USW Plan | Newark, Ohio and Spokane (Trentwood), Washington Facilities | |||
Multiemployer Pension Plan Disclosure | |||
Percentage of employees covered by bargaining agreement | 85.00% | ||
USW Plan | Newark, Ohio and Spokane (Trentwood), Washington Facilities | Starting July 2015 | |||
Multiemployer Pension Plan Disclosure | |||
Monthly contributions per hour worked by each bargaining unit employee | $ 1.50 | ||
USW Plan | Newark, Ohio and Spokane (Trentwood), Washington Facilities | Ending in July Two Thousand Nineteen [Member] [Domain] | |||
Multiemployer Pension Plan Disclosure | |||
Monthly contributions per hour worked by each bargaining unit employee | $ 1.75 | ||
USW Plan | Richmond (Bellwood), Virginia Facility | |||
Multiemployer Pension Plan Disclosure | |||
Percentage of employees covered by bargaining agreement | 10.00% | ||
USW Plan | Florence, Alabama Facility | |||
Multiemployer Pension Plan Disclosure | |||
Percentage of employees covered by bargaining agreement | 5.00% | ||
Other Funds | |||
Multiemployer Pension Plan Disclosure | |||
Contributions of the Company | $ 900,000 | $ 900,000 | $ 900,000 |
Multiemployer Plans, Pension [Member] | Minimum | |||
Multiemployer Pension Plan Disclosure | |||
Estimated annual contribution to pension and other postretirement benefit plans | 3,000,000 | ||
Multiemployer Plans, Pension [Member] | Maximum | |||
Multiemployer Pension Plan Disclosure | |||
Estimated annual contribution to pension and other postretirement benefit plans | $ 5,000,000 |
Employee Incentive Plans, Short
Employee Incentive Plans, Short Term Incentive Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fabricated Products | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 0.1 | $ 0.2 | $ 0.3 |
All Other | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Deferred Compensation Arrangement with Individual, Compensation Expense | 0.3 | 0.7 | 0.9 |
Short Term Incentive Plans [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Deferred Compensation Arrangement with Individual, Compensation Expense | 14 | 12.7 | 15.7 |
Short Term Incentive Plans [Member] | Fabricated Products | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Deferred Compensation Arrangement with Individual, Compensation Expense | 10.2 | 9.6 | 11.2 |
Short Term Incentive Plans [Member] | All Other | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Deferred Compensation Arrangement with Individual, Compensation Expense | 3.8 | 3.1 | 4.5 |
Short Term Incentive Plans [Member] | Cost of products sold, excluding depreciation and amortization and other items | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Deferred Compensation Arrangement with Individual, Compensation Expense | 4.7 | 4.7 | 4.6 |
Short Term Incentive Plans [Member] | SG&A and R&D | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Deferred Compensation Arrangement with Individual, Compensation Expense | $ 9.3 | $ 8 | $ 11.1 |
Employee Incentive Plans Employ
Employee Incentive Plans Employee Incentive Plans, Summary of Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding Beginning Balance, Shares/Units | 158,770 | ||
Outstanding Beginning Balance, Weighted-Average Grant-Date Fair Value per Share | $ 59.88 | ||
Granted, shares/units | 62,285 | ||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 72.09 | $ 66.42 | $ 58.65 |
Vested, shares/units | (63,515) | ||
Vested, Weighted-Average Grant-Date Fair Value per Share | $ 53.68 | ||
Forfeited, shares/units | (987) | ||
Forfeited, Weighted-Average Grant-Date Fair Value per Share | $ 66.93 | ||
Outstanding Ending Balance, Shares/Units | 156,553 | 158,770 | |
Outstanding Ending Balance, Weighted-Average Grant-Date Fair Value per Share | $ 67.20 | $ 59.88 | |
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding Beginning Balance, Shares/Units | 5,357 | ||
Outstanding Beginning Balance, Weighted-Average Grant-Date Fair Value per Share | $ 59.71 | ||
Granted, shares/units | 2,325 | ||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 69.83 | $ 67.42 | 57.70 |
Vested, shares/units | (2,161) | ||
Vested, Weighted-Average Grant-Date Fair Value per Share | $ 52.91 | ||
Forfeited, shares/units | 0 | ||
Forfeited, Weighted-Average Grant-Date Fair Value per Share | $ 0 | ||
Outstanding Ending Balance, Shares/Units | 5,521 | 5,357 | |
Outstanding Ending Balance, Weighted-Average Grant-Date Fair Value per Share | $ 66.64 | $ 59.71 | |
EVA-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding Beginning Balance, Shares/Units | 353,576 | ||
Outstanding Beginning Balance, Weighted-Average Grant-Date Fair Value per Share | $ 50.35 | ||
Granted, shares/units | 0 | ||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 0 | $ 0 | 57.75 |
Vested, shares/units | (49,945) | ||
Vested, Weighted-Average Grant-Date Fair Value per Share | $ 44.81 | ||
Forfeited, shares/units | (1,212) | ||
Forfeited, Weighted-Average Grant-Date Fair Value per Share | $ 57.54 | ||
Canceled, shares/units | (147,314) | ||
Canceled, Weighted-Average Grant-Date Fair Value per Share | $ 44.59 | ||
Outstanding Ending Balance, Shares/Units | 155,105 | 353,576 | |
Outstanding Ending Balance, Weighted-Average Grant-Date Fair Value per Share | $ 57.76 | $ 50.35 | |
TSR-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding Beginning Balance, Shares/Units | 150,223 | ||
Outstanding Beginning Balance, Weighted-Average Grant-Date Fair Value per Share | $ 83.18 | ||
Granted, shares/units | 150,424 | ||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 95.68 | $ 83.18 | $ 0 |
Vested, shares/units | 0 | ||
Vested, Weighted-Average Grant-Date Fair Value per Share | $ 0 | ||
Forfeited, shares/units | (770) | ||
Forfeited, Weighted-Average Grant-Date Fair Value per Share | $ 89.12 | ||
Outstanding Ending Balance, Shares/Units | 299,877 | 150,223 | |
Outstanding Ending Balance, Weighted-Average Grant-Date Fair Value per Share | $ 89.43 | $ 83.18 |
Employee Incentive Plans Empl73
Employee Incentive Plans Employee Incentive Plans, Compensation expense under LTI programs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 9.3 | $ 6.8 | $ 6.6 |
Restricted Stock And Restricted Stock Units Member | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 4.4 | 3.9 | 4.3 |
EVA-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 0.9 | 1 | 2.3 |
TSR-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 4 | 1.9 | 0 |
Fabricated Products | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | 3.5 | 3.2 | 2.2 |
All Other | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 5.8 | $ 3.6 | $ 4.4 |
Employee Incentive Plans Empl74
Employee Incentive Plans Employee Incentive Plans, Weighted Average Grant Date Fair Value (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 72.09 | $ 66.42 | $ 58.65 |
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, Weighted-Average Grant-Date Fair Value per Share | 69.83 | 67.42 | 57.70 |
EVA-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, Weighted-Average Grant-Date Fair Value per Share | 0 | 0 | 57.75 |
TSR-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, Weighted-Average Grant-Date Fair Value per Share | $ 95.68 | $ 83.18 | $ 0 |
Employee Incentive Plans, Narra
Employee Incentive Plans, Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common shares authorized for issuance under Equity Incentive Plan | 2,722,222 | ||
Number of common shares available for additional awards under Equity Incentive Plan | 709,362 | ||
Non-cash compensation expense | $ 9.3 | $ 6.8 | $ 6.6 |
Recognized tax benefit relating to non-cash compensation expense | 3.5 | 2.5 | 2.4 |
Total grant-date fair value for shares granted | 11.8 | 14.8 | |
Total grant-date fair value for shares that vested | $ 5.8 | $ 5.5 | 5.1 |
Fully-vested options outstanding | 16,645 | 16,645 | |
Exercise price of options to purchase common stock | $ 80.01 | $ 80.01 | |
Remaining contractual life of options outstanding | 1 year 3 months | 2 years 3 months | |
Grant date fair value of options outstanding | $ 39.90 | ||
Stock options granted | 0 | 0 | |
Stock options exercised | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | 0 | ||
Stock options expired | 0 | 0 | |
Issuance of common shares to non-employee directors | $ 0.2 | $ 0.2 | $ 0.2 |
Shares Paid for Tax Withholding for Share Based Compensation | 37,009 | 33,696 | 40,075 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 1 year | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Restricted stock units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of common share received by the employee on vesting of restricted stock unit | 1 | ||
Restricted Stock And Restricted Stock Units Member | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash compensation expense | $ 4.4 | $ 3.9 | $ 4.3 |
Unrecognized gross compensation costs (in millions of dollars) | $ 5.8 | ||
Expected period (in years) over which the remaining gross compensation costs will be recognized | 1 year 11 months 10 days | ||
EVA-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Non-cash compensation expense | $ 0.9 | 1 | 2.3 |
Unrecognized gross compensation costs (in millions of dollars) | $ 0.3 | ||
Expected period (in years) over which the remaining gross compensation costs will be recognized | 2 months 14 days | ||
EVA-Based Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||
EVA-Based Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% | ||
TSR-Based Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Non-cash compensation expense | $ 4 | $ 1.9 | $ 0 |
Unrecognized gross compensation costs (in millions of dollars) | $ 7.5 | ||
Expected period (in years) over which the remaining gross compensation costs will be recognized | 1 year 11 months 10 days | ||
TSR-Based Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 0.00% | ||
TSR-Based Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 200.00% |
Commitments and Contingencies,
Commitments and Contingencies, Minimum Commitments (Details) $ in Millions | Dec. 31, 2015USD ($) |
Minimum rental commitments | |
2,016 | $ 6.2 |
2,017 | 5.1 |
2,018 | 4.1 |
2,019 | 3.9 |
2,020 | 2.2 |
2021 and Thereafter | 25.8 |
Purchase obligations | |
2,016 | 194.8 |
2,017 | 9.6 |
2,018 | 5.6 |
2,019 | 0.6 |
2,020 | 0.6 |
2021 and Thereafter | 1.5 |
Raw materials | |
Purchase obligations | |
2,016 | 179.3 |
2,017 | 0 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2021 and Thereafter | 0 |
Energy | |
Purchase obligations | |
2,016 | 10.3 |
2,017 | 9.5 |
2,018 | 5.6 |
2,019 | 0.6 |
2,020 | 0.6 |
2021 and Thereafter | 1.5 |
Capital equipment | |
Purchase obligations | |
2,016 | 5.2 |
2,017 | 0.1 |
2,018 | 0 |
2,019 | 0 |
2,020 | 0 |
2021 and Thereafter | $ 0 |
Commitments and Contingencies77
Commitments and Contingencies Commitments and Contingencies, Changes in Environmental Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |||
Beginning balance | $ 19.3 | $ 22.8 | $ 21.7 |
Additional accruals | 1.3 | 0.8 | 4.5 |
Less expenditures | 2 | 4.3 | 3.4 |
Ending balance | $ 18.6 | $ 19.3 | $ 22.8 |
Commitments and Contingencies78
Commitments and Contingencies, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accrual for Environmental Loss Contingencies, Gross, Fiscal Year Maturity | ||||
Rental expense | $ 8.2 | $ 7.4 | $ 7.5 | |
Amounts to be purchased under the variable priced metal contracts | 140.6 | |||
Environmental accrual | $ 18.6 | $ 19.3 | $ 22.8 | $ 21.7 |
Expected period related to remediation expenditures for environmental contingencies | 30 years | |||
Estimated environmental contingency loss exposure in excess of current accrual | $ 24.7 | |||
Time period within which Company's recorded estimate of its obligation may change | 12 months | |||
Minimum | ||||
Accrual for Environmental Loss Contingencies, Gross, Fiscal Year Maturity | ||||
Period for feasibility study completion | 12 months | |||
Maximum | ||||
Accrual for Environmental Loss Contingencies, Gross, Fiscal Year Maturity | ||||
Period for feasibility study completion | 18 months |
Derivative Financial Instrume79
Derivative Financial Instruments and Related Hedging Programs, Realized and Unrealized Gains and Losses Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Summary Of Realized And Unrealized Gains Losses | |||
Unrealized Gain (Loss) on Derivatives | $ (3.4) | $ (6.8) | $ 3.9 |
Not Designated as Hedging Instrument | |||
Summary Of Realized And Unrealized Gains Losses | |||
Realized (losses) gains | (34.6) | 7.8 | (6.5) |
Unrealized Gain (Loss) on Derivatives | (3.4) | (6.8) | 3.9 |
Operational Risk Hedges | Not Designated as Hedging Instrument | |||
Summary Of Realized And Unrealized Gains Losses | |||
Unrealized Gain (Loss) on Derivatives | (3.4) | (10.4) | 0.7 |
Aluminum | Not Designated as Hedging Instrument | |||
Summary Of Realized And Unrealized Gains Losses | |||
Realized (losses) gains | (27.3) | 6.9 | (5.5) |
Unrealized Gain (Loss) on Derivatives | (4.6) | (2.6) | (3.1) |
Natural Gas | Not Designated as Hedging Instrument | |||
Summary Of Realized And Unrealized Gains Losses | |||
Realized (losses) gains | (5.4) | 1 | (1.8) |
Unrealized Gain (Loss) on Derivatives | (0.5) | (6) | 2.6 |
Electricity | Not Designated as Hedging Instrument | |||
Summary Of Realized And Unrealized Gains Losses | |||
Realized (losses) gains | (1.9) | (0.1) | 0.8 |
Unrealized Gain (Loss) on Derivatives | 1.7 | (1.8) | 1.1 |
Foreign Currency | Not Designated as Hedging Instrument | |||
Summary Of Realized And Unrealized Gains Losses | |||
Unrealized Gain (Loss) on Derivatives | 0 | 0 | 0.1 |
Foreign Currency | Operational Risk Hedges | Designated as Hedging Instrument | |||
Summary Of Realized And Unrealized Gains Losses | |||
Unrealized Gain (Loss) on Derivatives | 0 | 0 | |
Hedges Relating to the Convertible Notes | Option Assets relating to the Convertible Notes3 | Not Designated as Hedging Instrument | |||
Summary Of Realized And Unrealized Gains Losses | |||
Unrealized Gain (Loss) on Derivatives | 0 | 5.2 | 24.2 |
Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature of the Convertible Notes | Not Designated as Hedging Instrument | |||
Summary Of Realized And Unrealized Gains Losses | |||
Unrealized Gain (Loss) on Derivatives | 0 | $ (1.6) | $ (21) |
Long [Member] | Foreign Currency | Swap contracts | Designated as Hedging Instrument | |||
Summary Of Realized And Unrealized Gains Losses | |||
Unrealized Gain (Loss) on Derivatives | $ (0.3) |
Derivative Financial Instrume80
Derivative Financial Instruments and Related Hedging Programs, Notional Quantity Table (Details) | Dec. 31, 2015MMBTUmmlbsMWH |
2,016 | |
Summary of material derivative positions | |
Percentage of natural gas purchases for which the Company's exposure to fluctuations in gas prices have been reduced | 73.00% |
2,017 | |
Summary of material derivative positions | |
Percentage of natural gas purchases for which the Company's exposure to fluctuations in gas prices have been reduced | 72.00% |
2,018 | |
Summary of material derivative positions | |
Percentage of natural gas purchases for which the Company's exposure to fluctuations in gas prices have been reduced | 59.00% |
Not Designated as Hedging Instrument | Aluminum | Option contracts | Purchase | |
Summary of material derivative positions | |
Derivative notional amount | 4.7 |
Not Designated as Hedging Instrument | Aluminum | Swap contracts | Purchase | |
Summary of material derivative positions | |
Derivative notional amount | 132.9 |
Not Designated as Hedging Instrument | Aluminum | Swap contracts | Sale | |
Summary of material derivative positions | |
Derivative notional amount | 3 |
Not Designated as Hedging Instrument | Aluminum | Midwest premium swap contracts | Purchase | |
Summary of material derivative positions | |
Derivative notional amount | 84.9 |
Not Designated as Hedging Instrument | Natural Gas | Swap contracts | Purchase | |
Summary of material derivative positions | |
Derivative notional amount | MMBTU | 7,000,000 |
Not Designated as Hedging Instrument | Foreign Currency | Swap contracts | Purchase | |
Summary of material derivative positions | |
Derivative notional amount | MWH | 4,699,750 |
Derivative Financial Instrume81
Derivative Financial Instruments and Related Hedging Programs, Offsetting of Derivative Instruments by Counterparty (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Gross Amounts of Recognized Assets | $ 1.6 | $ 85.7 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 1.6 | 85.7 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 1.6 | 0.8 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 84.9 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Gross Amounts of Recognized Liabilities | (16.2) | (96.8) |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | (16.2) | (96.8) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | (1.6) | (0.8) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | (14.6) | (96) |
Counterparty (with netting agreements) | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Gross Amounts of Recognized Assets | 1.3 | 0.9 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 1.3 | 0.9 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 1.3 | 0.8 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0.1 |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Gross Amounts of Recognized Liabilities | (8.5) | (8) |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | (8.5) | (8) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | (1.3) | (0.8) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | (7.2) | (7.2) |
Counterparty (without Netting Agreements) | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
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 Liability, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Gross Amounts of Recognized Liabilities | (85) | |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | (85) | |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | |
Net Amount | (85) | |
Counterparty (with partial netting agreements) | ||
Derivative Asset, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Gross Amounts of Recognized Assets | 0.3 | |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 0.3 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0.3 | |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | |
Net Amount | 0 | |
Derivative Liability, Fair Value, Amount Not Offset Against Collateral [Abstract] | ||
Gross Amounts of Recognized Liabilities | (7.7) | (3.8) |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | (7.7) | (3.8) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | (0.3) | 0 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | $ (7.4) | $ (3.8) |
Derivative Financial Instrume82
Derivative Financial Instruments and Related Hedging Programs, Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2015 | Mar. 31, 2010 | |
Derivative [Line Items] | |||||
Unrealized Gain (Loss) on Derivatives | $ (3,400,000) | $ (6,800,000) | $ 3,900,000 | ||
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | (300,000) | 0 | $ 0 | ||
Aggregate fair value of derivative instruments in a net liability position | (14,600,000) | ||||
Derivative Asset | $ 1,600,000 | 85,700,000 | |||
2,016 | |||||
Derivative [Line Items] | |||||
Percentage Of Natural Gas Purchases For Which The Company's Exposure To Fluctuations In Gas Prices Have Been Reduced | 73.00% | ||||
Percentage of Electricity Purchases For Which Company Exposure To Fluctuations In Electricity Prices Have Been Reduced | 55.00% | ||||
2,017 | |||||
Derivative [Line Items] | |||||
Percentage Of Natural Gas Purchases For Which The Company's Exposure To Fluctuations In Gas Prices Have Been Reduced | 72.00% | ||||
2,018 | |||||
Derivative [Line Items] | |||||
Percentage Of Natural Gas Purchases For Which The Company's Exposure To Fluctuations In Gas Prices Have Been Reduced | 59.00% | ||||
Purchase | Designated as Hedging Instrument | Swap contracts | Foreign Currency | |||||
Derivative [Line Items] | |||||
Derivative Liability, Notional Amount | $ 4,700,000 | $ 0 | |||
Derivative, Average Forward Exchange Rate | 1.1453 | ||||
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 Gain (Loss) on Derivatives | (300,000) | ||||
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | $ 0 | ||||
Purchase | Designated as Hedging Instrument | Swap contracts | Minimum | Foreign Currency | |||||
Derivative [Line Items] | |||||
Derivative, Remaining Maturity | 1 month | ||||
Purchase | Designated as Hedging Instrument | Swap contracts | Maximum | Foreign Currency | |||||
Derivative [Line Items] | |||||
Derivative, Remaining Maturity | 12 months | ||||
Convertible Notes | Convertible Notes Payable | |||||
Derivative [Line Items] | |||||
Principal amount of notes | $ 175,000,000 | ||||
Derivative Asset | $ 94,900,000 |
Fair Value Measurements, Fair V
Fair Value Measurements, Fair Value Hierarchy Table (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Assets: | ||
Derivative Asset | $ 1.6 | $ 85.7 |
Deferred compensation plan assets | 7.3 | $ 7.3 |
Investment Percentage in Industrial Sector | 51.00% | |
Investment Percentage in Financial Sector | 37.00% | |
Investment Percentage in Utilities Sector | 12.00% | |
Financial Liabilities: | ||
Derivative Liabilities | (16.2) | $ (96.8) |
Fair Value, Measurements, Recurring | ||
Financial Assets: | ||
Cash and cash equivalents | 72.5 | 177.7 |
Deferred compensation plan assets | 7.3 | 7.3 |
Total Assets | 173.2 | 1,171.1 |
Financial Liabilities: | ||
Convertible Notes, including Bifurcated Conversion Feature | (263.3) | |
Total Liabilities | (223.5) | (604.6) |
Fair Value, Measurements, Recurring | VEBAs and Canadian Pension Plan | Fixed income investment funds in registered investment companies | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 15.7 | 394.3 |
Fair Value, Measurements, Recurring | VEBAs and Canadian Pension Plan | Mortgage backed securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 30.1 | |
Fair Value, Measurements, Recurring | VEBAs and Canadian Pension Plan | Corporate debt securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 75.4 | |
Fair Value, Measurements, Recurring | VEBAs and Canadian Pension Plan | Equity investment funds in registered investment companies | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 23.8 | 191.3 |
Fair Value, Measurements, Recurring | VEBAs and Canadian Pension Plan | United States Treasuries | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 39.5 | |
Fair Value, Measurements, Recurring | VEBAs and Canadian Pension Plan | Municipal debt securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1.8 | |
Fair Value, Measurements, Recurring | VEBAs and Canadian Pension Plan | Cash and money market investments | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1.9 | 19.3 |
Fair Value, Measurements, Recurring | VEBAs and Canadian Pension Plan | Asset backed securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 8.1 | |
Fair Value, Measurements, Recurring | VEBAs and Canadian Pension Plan | Diversified investment funds in registered investment companies | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 20.4 | 26.6 |
Fair Value, Measurements, Recurring | Senior Notes | ||
Financial Liabilities: | ||
Senior Notes | (207.3) | (244.5) |
Fair Value, Measurements, Recurring | Debt Securities | ||
Financial Assets: | ||
Short-term investments | 30 | 114 |
Fair Value, Measurements, Recurring | Aluminum | Option contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.2 | |
Fair Value, Measurements, Recurring | Aluminum | Swap contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.3 | |
Financial Liabilities: | ||
Derivative Liabilities | (8.9) | (4.2) |
Fair Value, Measurements, Recurring | Aluminum | Swap contracts | Sale | ||
Financial Assets: | ||
Derivative Asset | 0.2 | |
Financial Liabilities: | ||
Derivative Liabilities | (0.1) | |
Fair Value, Measurements, Recurring | Aluminum | Midwest premium swap contracts | ||
Financial Assets: | ||
Derivative Asset | 0.9 | 1 |
Fair Value, Measurements, Recurring | Natural Gas | Swap contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liabilities | (6.7) | (6.2) |
Fair Value, Measurements, Recurring | Electricity | Swap contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liabilities | (1.7) | |
Fair Value, Measurements, Recurring | Hedges Relating to the Convertible Notes | Call Options | ||
Financial Assets: | ||
Derivative Asset | 84.7 | |
Fair Value, Measurements, Recurring | Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature | ||
Financial Liabilities: | ||
Derivative Liabilities | (84.7) | |
Fair Value, Measurements, Recurring | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 40.3 | 29.5 |
Deferred compensation plan assets | 0 | 0 |
Total Assets | 56.9 | 123.2 |
Financial Liabilities: | ||
Convertible Notes, including Bifurcated Conversion Feature | (263.3) | |
Total Liabilities | (207.3) | (507.8) |
Fair Value, Measurements, Recurring | Level 1 | VEBAs and Canadian Pension Plan | Fixed income investment funds in registered investment companies | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 54 |
Fair Value, Measurements, Recurring | Level 1 | VEBAs and Canadian Pension Plan | Mortgage backed securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | VEBAs and Canadian Pension Plan | Corporate debt securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | VEBAs and Canadian Pension Plan | Equity investment funds in registered investment companies | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | VEBAs and Canadian Pension Plan | United States Treasuries | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | VEBAs and Canadian Pension Plan | Municipal debt securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | VEBAs and Canadian Pension Plan | Cash and money market investments | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1.9 | 19.3 |
Fair Value, Measurements, Recurring | Level 1 | VEBAs and Canadian Pension Plan | Asset backed securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Fair Value, Measurements, Recurring | Level 1 | VEBAs and Canadian Pension Plan | Diversified investment funds in registered investment companies | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 14.7 | 20.4 |
Fair Value, Measurements, Recurring | Level 1 | Senior Notes | ||
Financial Liabilities: | ||
Senior Notes | (207.3) | (244.5) |
Fair Value, Measurements, Recurring | Level 1 | Debt Securities | ||
Financial Assets: | ||
Short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Aluminum | Option contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Aluminum | Swap contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Aluminum | Swap contracts | Sale | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Aluminum | Midwest premium swap contracts | ||
Financial Assets: | ||
Derivative Asset | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Natural Gas | Swap contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Electricity | Swap contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Hedges Relating to the Convertible Notes | Call Options | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature | ||
Financial Liabilities: | ||
Derivative Liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents | 32.2 | 148.2 |
Short-term investments | 30 | |
Deferred compensation plan assets | 7.3 | 7.3 |
Total Assets | 115.4 | 1,046.9 |
Financial Liabilities: | ||
Convertible Notes, including Bifurcated Conversion Feature | 0 | |
Total Liabilities | (15.9) | (96.8) |
Fair Value, Measurements, Recurring | Level 2 | VEBAs and Canadian Pension Plan | Fixed income investment funds in registered investment companies | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 15.7 | 340.3 |
Fair Value, Measurements, Recurring | Level 2 | VEBAs and Canadian Pension Plan | Mortgage backed securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 30.1 | |
Fair Value, Measurements, Recurring | Level 2 | VEBAs and Canadian Pension Plan | Corporate debt securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 75.4 | |
Fair Value, Measurements, Recurring | Level 2 | VEBAs and Canadian Pension Plan | Equity investment funds in registered investment companies | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 23.8 | 191.3 |
Fair Value, Measurements, Recurring | Level 2 | VEBAs and Canadian Pension Plan | United States Treasuries | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 39.5 | |
Fair Value, Measurements, Recurring | Level 2 | VEBAs and Canadian Pension Plan | Municipal debt securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 1.8 | |
Fair Value, Measurements, Recurring | Level 2 | VEBAs and Canadian Pension Plan | Cash and money market investments | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | VEBAs and Canadian Pension Plan | Asset backed securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 8.1 | |
Fair Value, Measurements, Recurring | Level 2 | VEBAs and Canadian Pension Plan | Diversified investment funds in registered investment companies | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 5.7 | 6.2 |
Fair Value, Measurements, Recurring | Level 2 | Senior Notes | ||
Financial Liabilities: | ||
Senior Notes | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Debt Securities | ||
Financial Assets: | ||
Short-term investments | 114 | |
Fair Value, Measurements, Recurring | Level 2 | Aluminum | Option contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.2 | |
Fair Value, Measurements, Recurring | Level 2 | Aluminum | Swap contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.3 | |
Financial Liabilities: | ||
Derivative Liabilities | (8.9) | (4.2) |
Fair Value, Measurements, Recurring | Level 2 | Aluminum | Swap contracts | Sale | ||
Financial Assets: | ||
Derivative Asset | 0.2 | |
Financial Liabilities: | ||
Derivative Liabilities | (0.1) | |
Fair Value, Measurements, Recurring | Level 2 | Aluminum | Midwest premium swap contracts | ||
Financial Assets: | ||
Derivative Asset | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Natural Gas | Swap contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liabilities | (6.7) | (6.2) |
Fair Value, Measurements, Recurring | Level 2 | Electricity | Swap contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liabilities | (1.7) | |
Fair Value, Measurements, Recurring | Level 2 | Hedges Relating to the Convertible Notes | Call Options | ||
Financial Assets: | ||
Derivative Asset | 84.7 | |
Fair Value, Measurements, Recurring | Level 2 | Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature | ||
Financial Liabilities: | ||
Derivative Liabilities | (84.7) | |
Fair Value, Measurements, Recurring | Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deferred compensation plan assets | 0 | 0 |
Total Assets | 0.9 | 1 |
Financial Liabilities: | ||
Convertible Notes, including Bifurcated Conversion Feature | 0 | |
Total Liabilities | (0.3) | 0 |
Fair Value, Measurements, Recurring | Level 3 | VEBAs and Canadian Pension Plan | Fixed income investment funds in registered investment companies | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | VEBAs and Canadian Pension Plan | Mortgage backed securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | VEBAs and Canadian Pension Plan | Corporate debt securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | VEBAs and Canadian Pension Plan | Equity investment funds in registered investment companies | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | VEBAs and Canadian Pension Plan | United States Treasuries | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | VEBAs and Canadian Pension Plan | Municipal debt securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | VEBAs and Canadian Pension Plan | Cash and money market investments | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | VEBAs and Canadian Pension Plan | Asset backed securities | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | |
Fair Value, Measurements, Recurring | Level 3 | VEBAs and Canadian Pension Plan | Diversified investment funds in registered investment companies | ||
Financial Assets: | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Senior Notes | ||
Financial Liabilities: | ||
Senior Notes | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Debt Securities | ||
Financial Assets: | ||
Short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Aluminum | Option contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Aluminum | Swap contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Aluminum | Swap contracts | Sale | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Aluminum | Midwest premium swap contracts | ||
Financial Assets: | ||
Derivative Asset | 1 | |
Fair Value, Measurements, Recurring | Level 3 | Natural Gas | Swap contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Electricity | Swap contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liabilities | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Hedges Relating to the Convertible Notes | Call Options | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Hedges Relating to the Convertible Notes | Bifurcated Conversion Feature | ||
Financial Liabilities: | ||
Derivative Liabilities | $ 0 | |
Income Approach Valuation Technique | Fair Value, Measurements, Recurring | Aluminum | Midwest premium swap contracts | ||
Financial Liabilities: | ||
Derivative Liabilities | (0.3) | |
Income Approach Valuation Technique | Fair Value, Measurements, Recurring | Level 1 | Aluminum | Midwest premium swap contracts | ||
Financial Liabilities: | ||
Derivative Liabilities | 0 | |
Income Approach Valuation Technique | Fair Value, Measurements, Recurring | Level 2 | Aluminum | Midwest premium swap contracts | ||
Financial Liabilities: | ||
Derivative Liabilities | 0 | |
Income Approach Valuation Technique | Fair Value, Measurements, Recurring | Level 3 | Aluminum | Midwest premium swap contracts | ||
Financial Assets: | ||
Derivative Asset | 0.9 | |
Financial Liabilities: | ||
Derivative Liabilities | (0.3) | |
Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Foreign Currency | Swap contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liabilities | (0.2) | |
Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 1 | Foreign Currency | Swap contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liabilities | 0 | |
Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 2 | Foreign Currency | Swap contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liabilities | (0.2) | |
Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 3 | Foreign Currency | Swap contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liabilities | $ 0 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements, Schedule of Quantitative Information for Level 3 Derivative Contracts (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Midwest Premium Swap Asset Beginning Curve Value | $ 0.084 | |
Midwest Premium Swap Asset Ending Curve Value | 0.086 | |
Midwest Premium Swap Liability Beginning Curve Value | 0.08 | |
Midwest Premium Swap Liability Ending Curve Value | 0.086 | |
Derivative Asset | 1,600,000 | $ 85,700,000 |
Derivative Liability | 16,200,000 | 96,800,000 |
Fair Value, Measurements, Recurring | Midwest premium swap contracts | Aluminum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative Asset | 900,000 | 1,000,000 |
Fair Value, Measurements, Recurring | Midwest premium swap contracts | Aluminum | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative Asset | $ 1,000,000 | |
Fair Value, Measurements, Recurring | Midwest premium swap contracts | Aluminum | Income Approach Valuation Technique | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative Liability | 300,000 | |
Fair Value, Measurements, Recurring | Midwest premium swap contracts | Aluminum | Income Approach Valuation Technique | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative Asset | 900,000 | |
Derivative Liability | $ 300,000 |
Fair Value Measurements, Level
Fair Value Measurements, Level 3 Fair Value Input Reconciliation Table (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of activity for financial instruments classified as Level 3: | |||
Fair value measurement at beginning of period | $ 0.6 | $ 1 | $ 1.1 |
Total realized/unrealized (loss) gain included in: | |||
Cost of goods sold, excluding depreciation and amortization and other items and Unrealized loss (gain) on derivative instruments | 3.9 | (4.4) | |
Transactions involving Level 3 derivative contracts: | |||
Purchases | (4) | 2.8 | |
Sales | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 7.5 | (7.3) | |
Transactions involving Level 3 derivatives - net | 3.5 | (4.5) | |
Transfers in and (or) out of Level 3 valuation hierarchy | 0 | 0 | |
Fair value measurement at end of period | 0.6 | 1 | |
Total loss included in Unrealized loss (gain) on derivative instruments, attributable to the change in unrealized gain/loss relating to derivative contracts held at December 31: | $ (0.6) | $ (1) |
Fair Value Measurements, Fair86
Fair Value Measurements, Fair Value of Non financial Assets and Liabilities (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | |||
Increase (decrease) in basic earnings per share resulting from adjustment | $ 0 | ||
Increase (decrease) in diluted earnings per share resulting from adjustment | $ 0 | ||
Asset Retirement Obligation, Roll Forward | |||
Beginning balance | $ 4.8 | $ 4.4 | $ 4.1 |
Liabilities settled during the period | (0.2) | 0 | (0.2) |
Accretion expense | 0.3 | 0.4 | 0.4 |
Adjustment to accretion expense due to revisions to estimated cash flow and timing of expenditure | 0 | 0 | 0.1 |
Ending balance | $ 4.9 | $ 4.8 | $ 4.4 |
Fair Value Measurements Fair 87
Fair Value Measurements Fair Value Measurements, Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2013 | Dec. 31, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Fair Value, Net Asset (Liability) | $ (14.6) | $ (11.1) | |
(Decrease)/increase in diluted earnings per share resulting from adjustment | $ 0 | ||
Weighted-average credit-adjusted risk-free rate | 8.70% | ||
Minimum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Short Term Investment Maturity Period | 1 month | ||
Maximum | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Short Term Investment Maturity Period | 3 months |
Net (Loss) Income Per Share, Ca
Net (Loss) Income Per Share, Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Numerator: | |||||||||||
Net (loss) income | $ 13.3 | $ 22.1 | $ 20.2 | $ (292.2) | $ 15.6 | $ 15.9 | $ 24.5 | $ 15.8 | $ (236.6) | $ 71.8 | $ 104.8 |
Denominator – Weighted-average common shares outstanding (in thousands): | |||||||||||
Basic (in shares) | 17,201 | 17,818 | 18,827 | ||||||||
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares | 0 | 179 | 178 | ||||||||
Add: dilutive effect of warrants | 0 | 596 | 241 | ||||||||
Diluted (in shares) | 17,201 | 18,593 | 19,246 | ||||||||
Net (loss) income per common share, Basic (in dollars per share) | $ 0.76 | $ 1.29 | $ 1.19 | $ (16.85) | $ 0.88 | $ 0.90 | $ 1.38 | $ 0.88 | $ (13.76) | $ 4.02 | $ 5.56 |
Net (loss) income per common share, Diluted (in dollars per share | $ 0.73 | $ 1.21 | $ 1.11 | $ (16.85) | $ 0.85 | $ 0.85 | $ 1.33 | $ 0.85 | $ (13.76) | $ 3.86 | $ 5.44 |
Net (Loss) Income Per Share Net
Net (Loss) Income Per Share Net (Loss) Income Per Share, Anti-Dilution Table (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded | 941 | 17 | 21 |
Options to purchase common shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded | 0 | 17 | 21 |
Non-vested common shares, restricted stock units and performance shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded | 302 | 0 | 0 |
Warrants | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total excluded | 639 | 0 | 0 |
Net (Loss) Income Per Share, Na
Net (Loss) Income Per Share, Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 18, 2015 | Jul. 01, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Options outstanding to purchase common shares | 16,645 | 16,645 | ||||
Average exercise price per share | $ 80.01 | $ 80.01 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 60.20 | $ 60.44 | ||||
Payment of cash dividends to stockholders | $ 28.1 | $ 25.4 | $ 23 | |||
Payment of quarterly cash dividends | $ 1.60 | $ 1.40 | $ 1.20 | |||
Cash dividend returned to the Company | $ 0.6 | $ 0 | $ 0 | $ 0.6 | ||
Shares returned from distribution of third-party trust, shares | 9,001 | |||||
Repurchase of common shares pursuant to an authorization from the Board, shares | 647,520 | 633,230 | 0 | |||
Weighted-average price of repurchases of common shares | $ 76.35 | $ 70.87 | ||||
Repurchase of common shares pursuant to an authorization from the Board, value | $ 49.4 | $ 44.9 | $ 79.3 | |||
Common shares available for additional share repurchase | $ 123.3 | $ 72.8 | ||||
Common Stock | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Stock Issued During Period, Shares, Other | 1,015,185 | |||||
Shares returned from distribution of third-party trust, shares | 9,001 | |||||
Repurchase of common shares pursuant to an authorization from the Board, shares | 647,520 | 633,230 | 1,232,077 | |||
Convertible Notes | Convertible Notes Payable | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Stock Issued During Period, Shares, Other | 1,015,185 | |||||
Warrant Transactions | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||
Number of common shares underlying the Warrants outstanding | 3,700,000 |
Segment and Geographical Area91
Segment and Geographical Area Information, Summary of financial information by operating segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Net Sales: | ||||||||||||
Net sales | $ 316.6 | $ 336.4 | $ 367.2 | $ 371.7 | $ 338 | $ 338.9 | $ 344.1 | $ 335.1 | $ 1,391.9 | $ 1,356.1 | $ 1,297.5 | |
Segment Operating Income (Loss): | ||||||||||||
Total operating income (loss) | 35.2 | 40.5 | 37 | (458.6) | 26.8 | $ 32.6 | $ 46.4 | $ 32.1 | (345.9) | 137.9 | 173.3 | |
Interest expense | (24.1) | (37.5) | (35.7) | |||||||||
Other income, net | (1.8) | 6.7 | 5.6 | |||||||||
Income before income taxes | (371.8) | 107.1 | 143.2 | |||||||||
Depreciation and Amortization: | ||||||||||||
Depreciation and amortization | 32.4 | 31.1 | 28.1 | |||||||||
Capital expenditures: | ||||||||||||
Capital expenditures | 63.1 | 59.4 | 70.4 | |||||||||
Segment assets: | ||||||||||||
Total | 1,250.1 | 1,743.7 | 1,250.1 | 1,743.7 | ||||||||
Non-cash impairment charges | 0.1 | 1.5 | 0 | |||||||||
Lower of cost or market inventory write-down | 2.6 | $ 0 | $ 0 | $ 0 | 2.6 | 0 | 0 | |||||
Unrealized Gain (Loss) on Derivatives | (3.4) | (6.8) | 3.9 | |||||||||
Non-cash defined benefit net periodic benefit cost (income) | [1] | 2.8 | (23.5) | (22) | ||||||||
Loss on removal of Union VEBA net assets – Note 6 | 493.4 | 0 | 0 | |||||||||
Fabricated Products | ||||||||||||
Net Sales: | ||||||||||||
Net sales | 1,391.9 | 1,356.1 | 1,297.5 | |||||||||
Segment Operating Income (Loss): | ||||||||||||
Total operating income (loss) | 190.8 | 151.4 | 188.6 | |||||||||
Depreciation and Amortization: | ||||||||||||
Depreciation and amortization | 31.9 | 30.6 | 27.6 | |||||||||
Capital expenditures: | ||||||||||||
Capital expenditures | 62.4 | 58.5 | 69.8 | |||||||||
Segment assets: | ||||||||||||
Total | 904.8 | 878.9 | 904.8 | 878.9 | ||||||||
Additional accruals | 1.7 | 1.2 | 4 | |||||||||
Unrealized Gain (Loss) on Derivatives | (3.4) | (10.4) | 0.7 | |||||||||
All Other | ||||||||||||
Segment Operating Income (Loss): | ||||||||||||
Total operating income (loss) | (536.7) | (13.5) | (15.3) | |||||||||
Depreciation and Amortization: | ||||||||||||
Depreciation and amortization | 0.5 | 0.5 | 0.5 | |||||||||
Capital expenditures: | ||||||||||||
Capital expenditures | 0.7 | 0.9 | 0.6 | |||||||||
Segment assets: | ||||||||||||
Total | $ 345.3 | $ 864.8 | 345.3 | 864.8 | ||||||||
Idled Asset [Member] | Fabricated Products | ||||||||||||
Segment assets: | ||||||||||||
Non-cash impairment charges | 0.1 | 1.5 | 0 | |||||||||
VEBAs | All Other | ||||||||||||
Segment assets: | ||||||||||||
Non-cash defined benefit net periodic benefit cost (income) | $ 2.4 | $ (23.7) | $ (22.5) | |||||||||
[1] | See Note 6 for the impact of removing the Union VEBA (defined in Note 6) net assets. |
Segment and Geographical Area92
Segment and Geographical Area Information, Schedule of net sales by end market segment applications (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenue from External Customer | |||||||||||
Net sales | $ 316.6 | $ 336.4 | $ 367.2 | $ 371.7 | $ 338 | $ 338.9 | $ 344.1 | $ 335.1 | $ 1,391.9 | $ 1,356.1 | $ 1,297.5 |
Aero/HS products | |||||||||||
Revenue from External Customer | |||||||||||
Net sales | 695.5 | 686.3 | 677 | ||||||||
Automotive Extrusions | |||||||||||
Revenue from External Customer | |||||||||||
Net sales | 199.2 | 173.5 | 129.5 | ||||||||
GE products | |||||||||||
Revenue from External Customer | |||||||||||
Net sales | 426.1 | 419.5 | 411 | ||||||||
Other products | |||||||||||
Revenue from External Customer | |||||||||||
Net sales | $ 71.1 | $ 76.8 | $ 80 |
Segment and Geographical Area93
Segment and Geographical Area Information Segment and Geographical Area Information, Schedule of net sales, income taxes paid, and long-lived assets, by geographical area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | |||||||||||
Net sales to unaffiliated customers | $ 316.6 | $ 336.4 | $ 367.2 | $ 371.7 | $ 338 | $ 338.9 | $ 344.1 | $ 335.1 | $ 1,391.9 | $ 1,356.1 | $ 1,297.5 |
Income taxes paid | 2.3 | 3.5 | 2.1 | ||||||||
Long-lived assets | 495.4 | 454.9 | 495.4 | 454.9 | |||||||
Fabricated Products | |||||||||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | |||||||||||
Net sales to unaffiliated customers | 1,391.9 | 1,356.1 | 1,297.5 | ||||||||
Long-lived assets | 490.5 | 450 | 490.5 | 450 | |||||||
Fabricated Products | United States | |||||||||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | |||||||||||
Net sales to unaffiliated customers | 1,321.3 | 1,254 | 1,204.7 | ||||||||
Income taxes paid | 0.6 | 2.1 | 1.2 | ||||||||
Long-lived assets | 459.6 | 432.6 | 459.6 | 432.6 | |||||||
Fabricated Products | Canada | |||||||||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | |||||||||||
Net sales to unaffiliated customers | 70.6 | 102.1 | 92.8 | ||||||||
Income taxes paid | 1.7 | 1.4 | $ 0.9 | ||||||||
Long-lived assets | 30.9 | 17.4 | 30.9 | 17.4 | |||||||
All Other | |||||||||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | |||||||||||
Long-lived assets | 4.9 | 4.9 | 4.9 | 4.9 | |||||||
All Other | United States | |||||||||||
Revenues from External Customers, Income Taxes Paid, and Long-Lived Assets | |||||||||||
Long-lived assets | $ 4.9 | $ 4.9 | $ 4.9 | $ 4.9 |
Segment and Geographical Area94
Segment and Geographical Area Information Segment and Geographical Area Information, Schedules of Concentration of Risk, by Risk Factor (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Export sales | Net sales | |||
Concentration Risk | |||
Concentration risk, percentage | 19.00% | 19.00% | 17.00% |
Supplier concentration risk | Aluminum | Top five major suppliers | |||
Concentration Risk | |||
Concentration risk, percentage | 86.00% | 71.00% | 86.00% |
Supplier concentration risk | Aluminum | Largest supplier | |||
Concentration Risk | |||
Concentration risk, percentage | 28.00% | 30.00% | 25.00% |
Supplier concentration risk | Aluminum | Second and third largest suppliers | |||
Concentration Risk | |||
Concentration risk, percentage | 36.00% | 25.00% | 35.00% |
Segment and Geographical Area95
Segment and Geographical Area Information, Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 | Dec. 31, 2015productionfacilitiescustomer | Dec. 31, 2014customer | Dec. 31, 2013customer | |
Segment Reporting Information | ||||
Percentage of Employees Covered by Collective Bargaining Agreements | 63.00% | |||
Percentage of Employees Covered by Collective Bargaining Agreements Expiring Within One Year | 10.00% | |||
United States | ||||
Segment Reporting Information | ||||
Number of production facilities | productionfacilities | 11 | |||
Canada | ||||
Segment Reporting Information | ||||
Number of production facilities | productionfacilities | 1 | |||
Customer Concentration Risk | Net sales | Largest Customer | Fabricated Products | ||||
Segment Reporting Information | ||||
Concentration risk, percentage | 25.00% | 22.00% | 23.00% | |
Number of Customers | customer | 1 | 1 | 1 | |
Customer Concentration Risk | Net sales | Second Largest Customer | Fabricated Products | ||||
Segment Reporting Information | ||||
Concentration risk, percentage | 10.00% | 10.00% | ||
Customer Concentration Risk | Trade Receivables | Largest Customer | ||||
Segment Reporting Information | ||||
Concentration risk, percentage | 10.00% | |||
Customer Concentration Risk | Trade Receivables | Second Largest Customer | ||||
Segment Reporting Information | ||||
Concentration risk, percentage | 17.00% | 12.00% | ||
Number of Customers | customer | 2 | 2 |
Supplemental Cash Flow Inform96
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental disclosure of cash flow information: | |||
Interest paid | $ 22.1 | $ 25.6 | $ 28.1 |
Non-cash investing and financing activities: | |||
Stock repurchases not yet settled (accrued in accounts payable) | 0.2 | 0.8 | 1 |
Unpaid purchases of property and equipment | 10.5 | 1.8 | 4.4 |
Purchases of property and equipment through capital leasing arrangements | $ 0 | $ 0 | $ 0.2 |
Other Income, Net (Details)
Other Income, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 0.4 | $ 1 | $ 0.4 |
Unrealized gains on financial derivatives | 0 | 3.6 | 3.2 |
Realized gain on investments | 0.8 | 1 | 1.4 |
Dividends received from distribution of third-party trust | 0 | 0 | 0.6 |
All other, net3 | (3) | 1.1 | 0 |
Other (expense) income, net | $ (1.8) | $ 6.7 | $ 5.6 |
Other Comprehensive (Loss) In98
Other Comprehensive (Loss) Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Before-Tax Amount | |||
Other Comprehensive Income (Loss), before Tax | $ 103.6 | $ (120.6) | $ 8.1 |
Income Tax (Expense) Benefit | |||
Other Comprehensive Income (Loss), Tax | (39.2) | 45.2 | (2.8) |
Net-of-Tax Amount | |||
Other comprehensive income (loss), net of tax | 64.4 | (75.4) | 5.3 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Before-Tax Amount | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (6.1) | (129.5) | 2.2 |
Other Comprehensive Income (Loss), before Tax | 104.6 | (120.7) | 7.9 |
Income Tax (Expense) Benefit | |||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 2.3 | 48.3 | (0.7) |
Other Comprehensive Income (Loss), Tax | (39.5) | 45.1 | (2.8) |
Net-of-Tax Amount | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (3.8) | (81.2) | 1.5 |
Other comprehensive income (loss), net of tax | 65.1 | (75.6) | 5.1 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | |||
Before-Tax Amount | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (12.9) | (39) | 87 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1.1 | (1.8) | 1.5 |
Income Tax (Expense) Benefit | |||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 4.9 | 14.5 | (32.5) |
Reclassification from AOCI, Current Period, Tax | (0.4) | 0.7 | (0.5) |
Net-of-Tax Amount | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (8) | (24.5) | 54.5 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.7 | (1.1) | 1 |
Accumulated Defined Benefit Plans Adjustment, Net Prior Service Attributable to Parent [Member] | |||
Before-Tax Amount | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 6.8 | (90.5) | (84.8) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3 | 10.6 | 4.2 |
Income Tax (Expense) Benefit | |||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (2.6) | 33.8 | 31.8 |
Reclassification from AOCI, Current Period, Tax | (1.2) | (3.9) | (1.6) |
Net-of-Tax Amount | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 4.2 | (56.7) | (53) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 1.8 | 6.7 | 2.6 |
Accumulated Defined Benefit Plans Adjustment, Removal Of Obligation Attributable to Parent [Member] | |||
Before-Tax Amount | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 106.6 | ||
Income Tax (Expense) Benefit | |||
Reclassification from AOCI, Current Period, Tax | (40.2) | ||
Net-of-Tax Amount | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 66.4 | ||
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Before-Tax Amount | |||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (0.1) | (0.2) | 1 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (0.4) | (0.1) | (1) |
Other Comprehensive Income (Loss), before Tax | (0.5) | (0.3) | 0 |
Income Tax (Expense) Benefit | |||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 0 | 0.1 | (0.3) |
Reclassification from AOCI, Current Period, Tax | 0.2 | 0 | 0.3 |
Other Comprehensive Income (Loss), Tax | 0.2 | 0.1 | 0 |
Net-of-Tax Amount | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (0.1) | (0.1) | 0.7 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (0.2) | (0.1) | (0.7) |
Other comprehensive income (loss), net of tax | (0.3) | (0.2) | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Before-Tax Amount | |||
Other Comprehensive Income (Loss), before Tax | (0.3) | ||
Income Tax (Expense) Benefit | |||
Other Comprehensive Income (Loss), Tax | 0.1 | ||
Net-of-Tax Amount | |||
Other comprehensive income (loss), net of tax | (0.2) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Before-Tax Amount | |||
Other Comprehensive Income (Loss), before Tax | (0.2) | 0.4 | 0.2 |
Income Tax (Expense) Benefit | |||
Other Comprehensive Income (Loss), Tax | 0 | 0 | 0 |
Net-of-Tax Amount | |||
Other comprehensive income (loss), net of tax | $ (0.2) | $ 0.4 | $ 0.2 |
Guarantor and Non-Guarantor F99
Guarantor and Non-Guarantor Financial Statements (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | May. 23, 2012 | Dec. 31, 2010 | ||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | $ 72,500,000 | $ 177,700,000 | $ 177,700,000 | $ 169,500,000 | $ 177,700,000 | $ 169,500,000 | $ 273,400,000 | $ 72,500,000 | $ 177,700,000 | $ 169,500,000 | $ 273,400,000 | $ 273,400,000 | ||||||
Short-term investments | 30,000,000 | 114,000,000 | ||||||||||||||||
Receivables: | ||||||||||||||||||
Trade, less allowance for doubtful receivables | 116,700,000 | 129,300,000 | ||||||||||||||||
Intercompany receivables | 0 | 0 | ||||||||||||||||
Other | 6,100,000 | 10,900,000 | ||||||||||||||||
Inventories | 219,600,000 | 214,700,000 | ||||||||||||||||
Prepaid expenses and other current assets | 56,700,000 | 178,600,000 | ||||||||||||||||
Total current assets | 501,600,000 | 825,200,000 | ||||||||||||||||
Investments in and advances to unconsolidated affiliates | 0 | 0 | ||||||||||||||||
Property, plant and equipment – net | 495,400,000 | 454,900,000 | ||||||||||||||||
Long-term intercompany receivables | 0 | 0 | ||||||||||||||||
Net assets of Union VEBA | 0 | 340,100,000 | ||||||||||||||||
Deferred tax assets — net | 162,600,000 | 30,900,000 | ||||||||||||||||
Intangible assets – net | 30,500,000 | 32,100,000 | ||||||||||||||||
Goodwill | 37,200,000 | 37,200,000 | ||||||||||||||||
Other assets | 22,800,000 | 23,300,000 | ||||||||||||||||
Total | 1,250,100,000 | 1,743,700,000 | ||||||||||||||||
Current liabilities: | ||||||||||||||||||
Accounts payable | 76,700,000 | 81,400,000 | ||||||||||||||||
Intercompany payable | 0 | 0 | ||||||||||||||||
Accrued salaries, wages and related expenses | 39,800,000 | 39,600,000 | ||||||||||||||||
Other accrued liabilities | 52,700,000 | 132,800,000 | ||||||||||||||||
Current portion of long-term debt | 0 | 172,500,000 | ||||||||||||||||
Short-term capital leases | 100,000 | 100,000 | ||||||||||||||||
Total current liabilities | 169,300,000 | 426,400,000 | ||||||||||||||||
Net liabilities of Salaried VEBA | 19,000,000 | 17,200,000 | ||||||||||||||||
Deferred tax liabilities | 2,100,000 | 900,000 | ||||||||||||||||
Long-term intercompany payable | 0 | 0 | ||||||||||||||||
Long-term liabilities | 87,500,000 | 58,300,000 | ||||||||||||||||
Long-term debt | 197,800,000 | 225,000,000 | ||||||||||||||||
Total liabilities | 475,700,000 | 727,800,000 | ||||||||||||||||
Total stockholders’ equity | 774,400,000 | 1,015,900,000 | 1,084,200,000 | $ 1,070,800,000 | ||||||||||||||
Total | $ 1,250,100,000 | 1,743,700,000 | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||
Net sales | 316,600,000 | $ 336,400,000 | $ 367,200,000 | 371,700,000 | 338,000,000 | $ 338,900,000 | $ 344,100,000 | 335,100,000 | 1,391,900,000 | 1,356,100,000 | 1,297,500,000 | |||||||
Cost of products sold: | ||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | 251,000,000 | 267,300,000 | 294,800,000 | 302,300,000 | 278,700,000 | 280,400,000 | 275,500,000 | 282,900,000 | 1,115,400,000 | 1,117,500,000 | 1,038,900,000 | |||||||
Lower of cost or market inventory write-down | 2,600,000 | 0 | 0 | 0 | 2,600,000 | 0 | 0 | |||||||||||
Unrealized loss (gain) on derivative instruments | (4,300,000) | 1,700,000 | 1,500,000 | 4,500,000 | 10,400,000 | 3,600,000 | (1,600,000) | (2,000,000) | 3,400,000 | 10,400,000 | (700,000) | |||||||
Depreciation and amortization | 32,400,000 | 31,100,000 | 28,100,000 | |||||||||||||||
Selling, general, administrative, research and development | 88,100,000 | 81,400,000 | 80,400,000 | |||||||||||||||
Net periodic postretirement benefit cost (income) relating to VEBAs – Note 6 | 2,400,000 | (23,700,000) | (22,500,000) | |||||||||||||||
Loss on removal of Union VEBA net assets – Note 6 | 493,400,000 | 0 | 0 | |||||||||||||||
Total selling, administrative, research and development and general | 583,900,000 | 57,700,000 | 57,900,000 | |||||||||||||||
Other operating charges, net | 100,000 | 1,500,000 | 0 | |||||||||||||||
Total costs and expenses | 1,737,800,000 | 1,218,200,000 | 1,124,200,000 | |||||||||||||||
Operating (loss) income | 35,200,000 | 40,500,000 | 37,000,000 | (458,600,000) | 26,800,000 | 32,600,000 | 46,400,000 | 32,100,000 | (345,900,000) | 137,900,000 | 173,300,000 | |||||||
Interest expense | (24,100,000) | (37,500,000) | (35,700,000) | |||||||||||||||
Other (expense) income: | ||||||||||||||||||
Other income, net | (1,800,000) | 6,700,000 | 5,600,000 | |||||||||||||||
(Loss) income before income taxes | (371,800,000) | 107,100,000 | 143,200,000 | |||||||||||||||
Income tax provision | 135,200,000 | (35,300,000) | (38,400,000) | |||||||||||||||
Earnings in equity of subsidiaries | 0 | 0 | 0 | |||||||||||||||
Net (loss) income | 13,300,000 | $ 22,100,000 | 20,200,000 | (292,200,000) | 15,600,000 | $ 15,900,000 | $ 24,500,000 | 15,800,000 | (236,600,000) | 71,800,000 | 104,800,000 | |||||||
Comprehensive (loss) income | (172,200,000) | (3,600,000) | 110,100,000 | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net cash (used in) provided by operating activities | 158,800,000 | 124,100,000 | 111,700,000 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||
Capital expenditures | (63,100,000) | (59,400,000) | (70,400,000) | |||||||||||||||
Payments to Acquire Available-for-sale Securities | 500,000 | 93,500,000 | 227,800,000 | |||||||||||||||
Proceeds from disposal of property, plant and equipment | 183,100,000 | |||||||||||||||||
Proceeds from disposition of available for sale securities | 84,000,000 | 108,200,000 | 183,100,000 | |||||||||||||||
Change in restricted cash | 0 | 0 | 1,700,000 | |||||||||||||||
Net cash used in investing activities | [1] | 20,400,000 | (44,700,000) | (113,400,000) | ||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Repurchase of Senior Notes | [2] | (30,000,000) | 0 | 0 | ||||||||||||||
Settlement of Convertible Notes | [2] | (175,000,000) | 0 | 0 | ||||||||||||||
Proceeds from cash-settled call options related to settlement of Convertible Notes | [2] | 94,900,000 | 0 | 0 | ||||||||||||||
Payment for conversion premium related to settlement of Convertible Notes | [2] | (94,900,000) | 0 | 0 | ||||||||||||||
Cash paid for financing costs | 600,000 | 0 | 0 | |||||||||||||||
Payment of capital lease liability | 0 | (100,000) | (100,000) | |||||||||||||||
Repurchase of common stock | (49,200,000) | (44,100,000) | (78,300,000) | |||||||||||||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1,300,000 | 800,000 | 1,100,000 | |||||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (2,800,000) | (2,400,000) | (2,500,000) | |||||||||||||||
Cash dividends paid to stockholders | (28,100,000) | (25,400,000) | (23,000,000) | |||||||||||||||
Cash dividends paid to Parent | 0 | |||||||||||||||||
Cash dividend returned to the Company | $ 600,000 | 0 | 0 | 600,000 | ||||||||||||||
Intercompany loan | 0 | 0 | 0 | |||||||||||||||
Net cash used in financing activities | [1] | (284,400,000) | (71,200,000) | (102,200,000) | ||||||||||||||
Net increase (decrease) in cash and cash equivalents during the period | (105,200,000) | 8,200,000 | (103,900,000) | |||||||||||||||
Cash and cash equivalents at beginning of period | 177,700,000 | 169,500,000 | 177,700,000 | 169,500,000 | 273,400,000 | |||||||||||||
Cash and cash equivalents at end of period | 72,500,000 | 177,700,000 | 72,500,000 | 177,700,000 | 169,500,000 | |||||||||||||
Ownership interest by parent | 100.00% | |||||||||||||||||
Parent | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | 5,000,000 | 0 | 5,000,000 | 5,000,000 | $ 0 | 0 | 5,000,000 | 5,000,000 | |||||||
Short-term investments | 0 | 0 | ||||||||||||||||
Receivables: | ||||||||||||||||||
Trade, less allowance for doubtful receivables | 0 | 0 | ||||||||||||||||
Intercompany receivables | 0 | 204,200,000 | ||||||||||||||||
Other | 0 | 0 | ||||||||||||||||
Inventories | 0 | 0 | ||||||||||||||||
Prepaid expenses and other current assets | 200,000 | 85,100,000 | ||||||||||||||||
Total current assets | 200,000 | 289,300,000 | ||||||||||||||||
Investments in and advances to unconsolidated affiliates | 1,077,200,000 | 1,209,200,000 | ||||||||||||||||
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 | 3,200,000 | 4,400,000 | ||||||||||||||||
Total | 1,080,600,000 | 1,502,900,000 | ||||||||||||||||
Current liabilities: | ||||||||||||||||||
Accounts payable | 500,000 | 1,300,000 | ||||||||||||||||
Intercompany payable | 106,500,000 | 0 | ||||||||||||||||
Accrued salaries, wages and related expenses | 0 | 0 | ||||||||||||||||
Other accrued liabilities | 1,400,000 | 88,200,000 | ||||||||||||||||
Current portion of long-term debt | 172,500,000 | |||||||||||||||||
Short-term capital leases | 0 | 0 | ||||||||||||||||
Total current liabilities | 108,400,000 | 262,000,000 | ||||||||||||||||
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 | 197,800,000 | 225,000,000 | ||||||||||||||||
Total liabilities | 306,200,000 | 487,000,000 | ||||||||||||||||
Total stockholders’ equity | 774,400,000 | 1,015,900,000 | ||||||||||||||||
Total | 1,080,600,000 | 1,502,900,000 | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||||||
Cost of products sold: | ||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | 0 | 0 | 0 | |||||||||||||||
Lower of cost or market inventory write-down | 0 | |||||||||||||||||
Unrealized loss (gain) on derivative instruments | 0 | 0 | 0 | |||||||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||||||
Selling, general, administrative, research and development | 4,300,000 | 4,100,000 | 3,800,000 | |||||||||||||||
Net periodic postretirement benefit cost (income) relating to VEBAs – Note 6 | 0 | 0 | 0 | |||||||||||||||
Loss on removal of Union VEBA net assets – Note 6 | 0 | |||||||||||||||||
Total selling, administrative, research and development and general | 4,300,000 | 4,100,000 | 3,800,000 | |||||||||||||||
Other operating charges, net | 0 | 0 | ||||||||||||||||
Total costs and expenses | 4,300,000 | 4,100,000 | 3,800,000 | |||||||||||||||
Operating (loss) income | (4,300,000) | (4,100,000) | (3,800,000) | |||||||||||||||
Interest expense | (23,500,000) | (37,500,000) | (36,600,000) | |||||||||||||||
Other (expense) income: | ||||||||||||||||||
Other income, net | (2,500,000) | 3,700,000 | 3,900,000 | |||||||||||||||
(Loss) income before income taxes | (30,300,000) | (37,900,000) | (36,500,000) | |||||||||||||||
Income tax provision | 0 | 0 | 0 | |||||||||||||||
Earnings in equity of subsidiaries | (206,300,000) | 109,700,000 | 141,300,000 | |||||||||||||||
Net (loss) income | (236,600,000) | 71,800,000 | 104,800,000 | |||||||||||||||
Comprehensive (loss) income | (172,200,000) | (3,600,000) | 110,100,000 | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net cash (used in) provided by operating activities | 285,700,000 | 35,600,000 | (29,200,000) | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||||||
Payments to Acquire Available-for-sale Securities | 0 | 0 | 0 | |||||||||||||||
Proceeds from disposal of property, plant and equipment | 0 | |||||||||||||||||
Proceeds from disposition of available for sale securities | 0 | 0 | ||||||||||||||||
Change in restricted cash | 0 | |||||||||||||||||
Net cash used in investing activities | 0 | 0 | 0 | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Repurchase of Senior Notes | (30,000,000) | |||||||||||||||||
Settlement of Convertible Notes | (175,000,000) | |||||||||||||||||
Proceeds from cash-settled call options related to settlement of Convertible Notes | 94,900,000 | |||||||||||||||||
Payment for conversion premium related to settlement of Convertible Notes | (94,900,000) | |||||||||||||||||
Cash paid for financing costs | 600,000 | |||||||||||||||||
Payment of capital lease liability | 0 | 0 | ||||||||||||||||
Repurchase of common stock | (49,200,000) | (44,100,000) | (78,300,000) | |||||||||||||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0 | 0 | 0 | |||||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (2,800,000) | (2,400,000) | (2,500,000) | |||||||||||||||
Cash dividends paid to stockholders | (28,100,000) | (25,400,000) | (23,000,000) | |||||||||||||||
Cash dividends paid to Parent | 0 | |||||||||||||||||
Cash dividend returned to the Company | 600,000 | |||||||||||||||||
Intercompany loan | 0 | 31,300,000 | 132,400,000 | |||||||||||||||
Net cash used in financing activities | (285,700,000) | (40,600,000) | 29,200,000 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents during the period | 0 | (5,000,000) | 0 | |||||||||||||||
Cash and cash equivalents at beginning of period | 0 | 5,000,000 | 0 | 5,000,000 | ||||||||||||||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | 5,000,000 | |||||||||||||
Guarantor Subsidiaries | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | 72,200,000 | 175,300,000 | 175,300,000 | 157,700,000 | 175,300,000 | 157,700,000 | 157,700,000 | 72,200,000 | 175,300,000 | 157,700,000 | 266,000,000 | |||||||
Short-term investments | 30,000,000 | 114,000,000 | ||||||||||||||||
Receivables: | ||||||||||||||||||
Trade, less allowance for doubtful receivables | 114,000,000 | 126,100,000 | ||||||||||||||||
Intercompany receivables | 111,200,000 | 4,000,000 | ||||||||||||||||
Other | 3,800,000 | 5,600,000 | ||||||||||||||||
Inventories | 216,300,000 | 208,000,000 | ||||||||||||||||
Prepaid expenses and other current assets | 56,200,000 | 93,100,000 | ||||||||||||||||
Total current assets | 603,700,000 | 726,100,000 | ||||||||||||||||
Investments in and advances to unconsolidated affiliates | 31,400,000 | 32,500,000 | ||||||||||||||||
Property, plant and equipment – net | 464,300,000 | 437,400,000 | ||||||||||||||||
Long-term intercompany receivables | 0 | 0 | ||||||||||||||||
Net assets of Union VEBA | 340,100,000 | |||||||||||||||||
Deferred tax assets — net | 155,600,000 | 23,800,000 | ||||||||||||||||
Intangible assets – net | 30,500,000 | 32,100,000 | ||||||||||||||||
Goodwill | 37,200,000 | 37,200,000 | ||||||||||||||||
Other assets | 19,500,000 | 18,800,000 | ||||||||||||||||
Total | 1,342,200,000 | 1,648,000,000 | ||||||||||||||||
Current liabilities: | ||||||||||||||||||
Accounts payable | 73,600,000 | 73,800,000 | ||||||||||||||||
Intercompany payable | 14,800,000 | 221,300,000 | ||||||||||||||||
Accrued salaries, wages and related expenses | 38,300,000 | 36,500,000 | ||||||||||||||||
Other accrued liabilities | 52,300,000 | 43,800,000 | ||||||||||||||||
Current portion of long-term debt | 0 | |||||||||||||||||
Short-term capital leases | 100,000 | 100,000 | ||||||||||||||||
Total current liabilities | 179,100,000 | 375,500,000 | ||||||||||||||||
Net liabilities of Salaried VEBA | 19,000,000 | 17,200,000 | ||||||||||||||||
Deferred tax liabilities | 0 | 0 | ||||||||||||||||
Long-term intercompany payable | 3,100,000 | 15,900,000 | ||||||||||||||||
Long-term liabilities | 81,300,000 | 50,300,000 | ||||||||||||||||
Long-term debt | 0 | 0 | ||||||||||||||||
Total liabilities | 282,500,000 | 458,900,000 | ||||||||||||||||
Total stockholders’ equity | 1,059,700,000 | 1,189,100,000 | ||||||||||||||||
Total | 1,342,200,000 | 1,648,000,000 | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||
Net sales | 1,361,600,000 | 1,323,400,000 | 1,275,200,000 | |||||||||||||||
Cost of products sold: | ||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | 1,095,600,000 | 1,098,300,000 | 1,026,000,000 | |||||||||||||||
Lower of cost or market inventory write-down | 2,600,000 | |||||||||||||||||
Unrealized loss (gain) on derivative instruments | 3,400,000 | 10,400,000 | (700,000) | |||||||||||||||
Depreciation and amortization | 31,300,000 | 30,000,000 | 27,000,000 | |||||||||||||||
Selling, general, administrative, research and development | 76,500,000 | 69,700,000 | 70,100,000 | |||||||||||||||
Net periodic postretirement benefit cost (income) relating to VEBAs – Note 6 | 2,400,000 | (23,700,000) | (22,500,000) | |||||||||||||||
Loss on removal of Union VEBA net assets – Note 6 | 493,400,000 | |||||||||||||||||
Total selling, administrative, research and development and general | 572,300,000 | 46,000,000 | 47,600,000 | |||||||||||||||
Other operating charges, net | 100,000 | 1,500,000 | ||||||||||||||||
Total costs and expenses | 1,705,300,000 | 1,186,200,000 | 1,099,900,000 | |||||||||||||||
Operating (loss) income | (343,700,000) | 137,200,000 | 175,300,000 | |||||||||||||||
Interest expense | (900,000) | (600,000) | 500,000 | |||||||||||||||
Other (expense) income: | ||||||||||||||||||
Other income, net | 3,500,000 | 3,200,000 | 2,000,000 | |||||||||||||||
(Loss) income before income taxes | (341,100,000) | 139,800,000 | 177,800,000 | |||||||||||||||
Income tax provision | 122,500,000 | (50,200,000) | (68,100,000) | |||||||||||||||
Earnings in equity of subsidiaries | 900,000 | 6,000,000 | 17,600,000 | |||||||||||||||
Net (loss) income | (217,700,000) | 95,600,000 | 127,300,000 | |||||||||||||||
Comprehensive (loss) income | (153,500,000) | 19,900,000 | 131,600,000 | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net cash (used in) provided by operating activities | (127,200,000) | 351,800,000 | 131,700,000 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||
Capital expenditures | (47,900,000) | (56,400,000) | (66,500,000) | |||||||||||||||
Payments to Acquire Available-for-sale Securities | 500,000 | 93,500,000 | 227,800,000 | |||||||||||||||
Proceeds from disposal of property, plant and equipment | 183,100,000 | |||||||||||||||||
Proceeds from disposition of available for sale securities | 84,000,000 | 108,200,000 | ||||||||||||||||
Change in restricted cash | 700,000 | |||||||||||||||||
Net cash used in investing activities | 35,600,000 | (41,700,000) | (110,500,000) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Repurchase of Senior Notes | 0 | |||||||||||||||||
Settlement of Convertible Notes | 0 | |||||||||||||||||
Proceeds from cash-settled call options related to settlement of Convertible Notes | 0 | |||||||||||||||||
Payment for conversion premium related to settlement of Convertible Notes | 0 | |||||||||||||||||
Cash paid for financing costs | 0 | |||||||||||||||||
Payment of capital lease liability | (100,000) | (100,000) | ||||||||||||||||
Repurchase of common stock | 0 | 0 | 0 | |||||||||||||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1,300,000 | 800,000 | 1,100,000 | |||||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | 0 | 0 | 0 | |||||||||||||||
Cash dividends paid to stockholders | 0 | 0 | 0 | |||||||||||||||
Cash dividends paid to Parent | (270,000,000) | |||||||||||||||||
Cash dividend returned to the Company | 0 | |||||||||||||||||
Intercompany loan | (12,800,000) | (23,200,000) | (130,500,000) | |||||||||||||||
Net cash used in financing activities | (11,500,000) | (292,500,000) | (129,500,000) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents during the period | (103,100,000) | 17,600,000 | (108,300,000) | |||||||||||||||
Cash and cash equivalents at beginning of period | 175,300,000 | 157,700,000 | 175,300,000 | 157,700,000 | ||||||||||||||
Cash and cash equivalents at end of period | 72,200,000 | 175,300,000 | 72,200,000 | 175,300,000 | 157,700,000 | |||||||||||||
Non-Guarantor Subsidiaries | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | 300,000 | 2,400,000 | 2,400,000 | 6,800,000 | 2,400,000 | 6,800,000 | 6,800,000 | 300,000 | 2,400,000 | 6,800,000 | 2,400,000 | |||||||
Short-term investments | 0 | 0 | ||||||||||||||||
Receivables: | ||||||||||||||||||
Trade, less allowance for doubtful receivables | 2,700,000 | 3,200,000 | ||||||||||||||||
Intercompany receivables | 1,100,000 | 900,000 | ||||||||||||||||
Other | 2,300,000 | 5,300,000 | ||||||||||||||||
Inventories | 6,600,000 | 7,600,000 | ||||||||||||||||
Prepaid expenses and other current assets | 1,700,000 | 400,000 | ||||||||||||||||
Total current assets | 14,700,000 | 19,800,000 | ||||||||||||||||
Investments in and advances to unconsolidated affiliates | 0 | 0 | ||||||||||||||||
Property, plant and equipment – net | 31,100,000 | 17,500,000 | ||||||||||||||||
Long-term intercompany receivables | 3,100,000 | 15,900,000 | ||||||||||||||||
Net assets of Union VEBA | 0 | |||||||||||||||||
Deferred tax assets — net | 0 | 0 | ||||||||||||||||
Intangible assets – net | 0 | 0 | ||||||||||||||||
Goodwill | 0 | 0 | ||||||||||||||||
Other assets | 100,000 | 100,000 | ||||||||||||||||
Total | 49,000,000 | 53,300,000 | ||||||||||||||||
Current liabilities: | ||||||||||||||||||
Accounts payable | 2,600,000 | 6,300,000 | ||||||||||||||||
Intercompany payable | 4,000,000 | 3,300,000 | ||||||||||||||||
Accrued salaries, wages and related expenses | 1,500,000 | 3,100,000 | ||||||||||||||||
Other accrued liabilities | 400,000 | 800,000 | ||||||||||||||||
Current portion of long-term debt | 0 | |||||||||||||||||
Short-term capital leases | 0 | 0 | ||||||||||||||||
Total current liabilities | 8,500,000 | 13,500,000 | ||||||||||||||||
Net liabilities of Salaried VEBA | 0 | 0 | ||||||||||||||||
Deferred tax liabilities | 2,100,000 | 900,000 | ||||||||||||||||
Long-term intercompany payable | 0 | 0 | ||||||||||||||||
Long-term liabilities | 6,200,000 | 8,000,000 | ||||||||||||||||
Long-term debt | 0 | 0 | ||||||||||||||||
Total liabilities | 16,800,000 | 22,400,000 | ||||||||||||||||
Total stockholders’ equity | 32,200,000 | 30,900,000 | ||||||||||||||||
Total | 49,000,000 | 53,300,000 | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||
Net sales | 123,300,000 | 133,900,000 | 118,000,000 | |||||||||||||||
Cost of products sold: | ||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | 108,400,000 | 117,800,000 | 105,700,000 | |||||||||||||||
Lower of cost or market inventory write-down | 0 | |||||||||||||||||
Unrealized loss (gain) on derivative instruments | 0 | 0 | 0 | |||||||||||||||
Depreciation and amortization | 1,100,000 | 1,100,000 | 1,100,000 | |||||||||||||||
Selling, general, administrative, research and development | 9,300,000 | 9,900,000 | 8,900,000 | |||||||||||||||
Net periodic postretirement benefit cost (income) relating to VEBAs – Note 6 | 0 | 0 | 0 | |||||||||||||||
Loss on removal of Union VEBA net assets – Note 6 | 0 | |||||||||||||||||
Total selling, administrative, research and development and general | 9,300,000 | 9,900,000 | 8,900,000 | |||||||||||||||
Other operating charges, net | 0 | 0 | ||||||||||||||||
Total costs and expenses | 118,800,000 | 128,800,000 | 115,700,000 | |||||||||||||||
Operating (loss) income | 4,500,000 | 5,100,000 | 2,300,000 | |||||||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||||||
Other (expense) income: | ||||||||||||||||||
Other income, net | (2,500,000) | 400,000 | 0 | |||||||||||||||
(Loss) income before income taxes | 2,000,000 | 5,500,000 | 2,300,000 | |||||||||||||||
Income tax provision | 1,300,000 | 800,000 | 15,700,000 | |||||||||||||||
Earnings in equity of subsidiaries | 0 | 0 | 0 | |||||||||||||||
Net (loss) income | 3,300,000 | 6,300,000 | 18,000,000 | |||||||||||||||
Comprehensive (loss) income | 3,500,000 | 6,600,000 | 19,000,000 | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net cash (used in) provided by operating activities | 300,000 | 6,700,000 | 9,200,000 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||
Capital expenditures | (15,200,000) | (3,000,000) | (3,900,000) | |||||||||||||||
Payments to Acquire Available-for-sale Securities | 0 | 0 | 0 | |||||||||||||||
Proceeds from disposal of property, plant and equipment | 0 | |||||||||||||||||
Proceeds from disposition of available for sale securities | 0 | 0 | ||||||||||||||||
Change in restricted cash | 1,000,000 | |||||||||||||||||
Net cash used in investing activities | (15,200,000) | (3,000,000) | (2,900,000) | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Repurchase of Senior Notes | 0 | |||||||||||||||||
Settlement of Convertible Notes | 0 | |||||||||||||||||
Proceeds from cash-settled call options related to settlement of Convertible Notes | 0 | |||||||||||||||||
Payment for conversion premium related to settlement of Convertible Notes | 0 | |||||||||||||||||
Cash paid for financing costs | 0 | |||||||||||||||||
Payment of capital lease liability | 0 | 0 | ||||||||||||||||
Repurchase of common stock | 0 | 0 | 0 | |||||||||||||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0 | 0 | 0 | |||||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | 0 | 0 | 0 | |||||||||||||||
Cash dividends paid to stockholders | 0 | 0 | 0 | |||||||||||||||
Cash dividends paid to Parent | 0 | |||||||||||||||||
Cash dividend returned to the Company | 0 | |||||||||||||||||
Intercompany loan | 12,800,000 | (8,100,000) | (1,900,000) | |||||||||||||||
Net cash used in financing activities | 12,800,000 | (8,100,000) | (1,900,000) | |||||||||||||||
Net increase (decrease) in cash and cash equivalents during the period | (2,100,000) | (4,400,000) | 4,400,000 | |||||||||||||||
Cash and cash equivalents at beginning of period | 2,400,000 | 6,800,000 | 2,400,000 | 6,800,000 | ||||||||||||||
Cash and cash equivalents at end of period | 300,000 | 2,400,000 | 300,000 | 2,400,000 | 6,800,000 | |||||||||||||
Consolidating Adjustments | ||||||||||||||||||
Current assets: | ||||||||||||||||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $ 0 | $ 0 | |||||||
Short-term investments | 0 | 0 | ||||||||||||||||
Receivables: | ||||||||||||||||||
Trade, less allowance for doubtful receivables | 0 | 0 | ||||||||||||||||
Intercompany receivables | (112,300,000) | (209,100,000) | ||||||||||||||||
Other | 0 | 0 | ||||||||||||||||
Inventories | (3,300,000) | (900,000) | ||||||||||||||||
Prepaid expenses and other current assets | (1,400,000) | 0 | ||||||||||||||||
Total current assets | (117,000,000) | (210,000,000) | ||||||||||||||||
Investments in and advances to unconsolidated affiliates | (1,108,600,000) | (1,241,700,000) | ||||||||||||||||
Property, plant and equipment – net | 0 | 0 | ||||||||||||||||
Long-term intercompany receivables | (3,100,000) | (15,900,000) | ||||||||||||||||
Net assets of Union VEBA | 0 | |||||||||||||||||
Deferred tax assets — net | 7,000,000 | 7,100,000 | ||||||||||||||||
Intangible assets – net | 0 | 0 | ||||||||||||||||
Goodwill | 0 | 0 | ||||||||||||||||
Other assets | 0 | 0 | ||||||||||||||||
Total | (1,221,700,000) | (1,460,500,000) | ||||||||||||||||
Current liabilities: | ||||||||||||||||||
Accounts payable | 0 | 0 | ||||||||||||||||
Intercompany payable | (125,300,000) | (224,600,000) | ||||||||||||||||
Accrued salaries, wages and related expenses | 0 | 0 | ||||||||||||||||
Other accrued liabilities | (1,400,000) | 0 | ||||||||||||||||
Current portion of long-term debt | 0 | |||||||||||||||||
Short-term capital leases | 0 | 0 | ||||||||||||||||
Total current liabilities | (126,700,000) | (224,600,000) | ||||||||||||||||
Net liabilities of Salaried VEBA | 0 | 0 | ||||||||||||||||
Deferred tax liabilities | 0 | 0 | ||||||||||||||||
Long-term intercompany payable | (3,100,000) | (15,900,000) | ||||||||||||||||
Long-term liabilities | 0 | 0 | ||||||||||||||||
Long-term debt | 0 | 0 | ||||||||||||||||
Total liabilities | (129,800,000) | (240,500,000) | ||||||||||||||||
Total stockholders’ equity | (1,091,900,000) | (1,220,000,000) | ||||||||||||||||
Total | (1,221,700,000) | (1,460,500,000) | ||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||
Net sales | (93,000,000) | (101,200,000) | (95,700,000) | |||||||||||||||
Cost of products sold: | ||||||||||||||||||
Cost of products sold, excluding depreciation and amortization and other items | (88,600,000) | (98,600,000) | (92,800,000) | |||||||||||||||
Lower of cost or market inventory write-down | 0 | |||||||||||||||||
Unrealized loss (gain) on derivative instruments | 0 | 0 | 0 | |||||||||||||||
Depreciation and amortization | 0 | 0 | 0 | |||||||||||||||
Selling, general, administrative, research and development | (2,000,000) | (2,300,000) | (2,400,000) | |||||||||||||||
Net periodic postretirement benefit cost (income) relating to VEBAs – Note 6 | 0 | 0 | 0 | |||||||||||||||
Loss on removal of Union VEBA net assets – Note 6 | 0 | |||||||||||||||||
Total selling, administrative, research and development and general | (2,000,000) | (2,300,000) | (2,400,000) | |||||||||||||||
Other operating charges, net | 0 | 0 | ||||||||||||||||
Total costs and expenses | (90,600,000) | (100,900,000) | (95,200,000) | |||||||||||||||
Operating (loss) income | (2,400,000) | (300,000) | (500,000) | |||||||||||||||
Interest expense | 300,000 | 600,000 | 400,000 | |||||||||||||||
Other (expense) income: | ||||||||||||||||||
Other income, net | (300,000) | (600,000) | (300,000) | |||||||||||||||
(Loss) income before income taxes | (2,400,000) | (300,000) | (400,000) | |||||||||||||||
Income tax provision | 11,400,000 | 14,100,000 | 14,000,000 | |||||||||||||||
Earnings in equity of subsidiaries | 205,400,000 | (115,700,000) | (158,900,000) | |||||||||||||||
Net (loss) income | 214,400,000 | (101,900,000) | (145,300,000) | |||||||||||||||
Comprehensive (loss) income | 150,000,000 | (26,500,000) | (150,600,000) | |||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||
Net cash (used in) provided by operating activities | 0 | (270,000,000) | 0 | |||||||||||||||
Cash flows from investing activities: | ||||||||||||||||||
Capital expenditures | 0 | 0 | 0 | |||||||||||||||
Payments to Acquire Available-for-sale Securities | 0 | 0 | 0 | |||||||||||||||
Proceeds from disposal of property, plant and equipment | 0 | |||||||||||||||||
Proceeds from disposition of available for sale securities | 0 | 0 | ||||||||||||||||
Change in restricted cash | 0 | |||||||||||||||||
Net cash used in investing activities | 0 | 0 | 0 | |||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Repurchase of Senior Notes | 0 | |||||||||||||||||
Settlement of Convertible Notes | 0 | |||||||||||||||||
Proceeds from cash-settled call options related to settlement of Convertible Notes | 0 | |||||||||||||||||
Payment for conversion premium related to settlement of Convertible Notes | 0 | |||||||||||||||||
Cash paid for financing costs | 0 | |||||||||||||||||
Payment of capital lease liability | 0 | 0 | ||||||||||||||||
Repurchase of common stock | 0 | 0 | 0 | |||||||||||||||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0 | 0 | 0 | |||||||||||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | 0 | 0 | 0 | |||||||||||||||
Cash dividends paid to stockholders | 0 | 0 | 0 | |||||||||||||||
Cash dividends paid to Parent | 270,000,000 | |||||||||||||||||
Cash dividend returned to the Company | 0 | |||||||||||||||||
Intercompany loan | 0 | 0 | 0 | |||||||||||||||
Net cash used in financing activities | 0 | 270,000,000 | 0 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents during the period | 0 | 0 | 0 | |||||||||||||||
Cash and cash equivalents at beginning of period | $ 0 | $ 0 | 0 | 0 | ||||||||||||||
Cash and cash equivalents at end of period | $ 0 | $ 0 | 0 | $ 0 | $ 0 | |||||||||||||
Senior Notes | Senior Notes Due 2020 | ||||||||||||||||||
Current liabilities: | ||||||||||||||||||
Long-term debt | $ 197,800,000 | $ 225,000,000 | ||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||||
Repurchase of Senior Notes | $ (30,000,000) | |||||||||||||||||
Principal amount of notes | $ 225,000,000 | |||||||||||||||||
[1] | See Note 14 for the supplemental disclosure on non-cash transactions. | |||||||||||||||||
[2] | See Note 3 for more information relating to the Senior Notes (defined in Note 3) and the Convertible Notes. |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Quarterly Financial Data [Abstract] | |||||||||||
Net sales | $ 316.6 | $ 336.4 | $ 367.2 | $ 371.7 | $ 338 | $ 338.9 | $ 344.1 | $ 335.1 | $ 1,391.9 | $ 1,356.1 | $ 1,297.5 |
Cost of products sold, excluding depreciation and amortization and other items | 251 | 267.3 | 294.8 | 302.3 | 278.7 | 280.4 | 275.5 | 282.9 | 1,115.4 | 1,117.5 | 1,038.9 |
Lower of cost or market inventory write-down | 2.6 | 0 | 0 | 0 | 2.6 | 0 | 0 | ||||
Unrealized loss (gain) on derivative instruments | (4.3) | 1.7 | 1.5 | 4.5 | 10.4 | 3.6 | (1.6) | (2) | 3.4 | 10.4 | (0.7) |
Gross Profit | 67.3 | 67.4 | 70.9 | 64.9 | 48.9 | 54.9 | 70.2 | 54.2 | |||
Operating income | 35.2 | 40.5 | 37 | (458.6) | 26.8 | 32.6 | 46.4 | 32.1 | (345.9) | 137.9 | 173.3 |
Net income | $ 13.3 | $ 22.1 | $ 20.2 | $ (292.2) | $ 15.6 | $ 15.9 | $ 24.5 | $ 15.8 | $ (236.6) | $ 71.8 | $ 104.8 |
Net (loss) income per common share: | |||||||||||
Basic (in dollars per share) | $ 0.76 | $ 1.29 | $ 1.19 | $ (16.85) | $ 0.88 | $ 0.90 | $ 1.38 | $ 0.88 | $ (13.76) | $ 4.02 | $ 5.56 |
Earnings per common share, Diluted: | |||||||||||
Diluted (in dollars per share) | $ 0.73 | $ 1.21 | $ 1.11 | $ (16.85) | $ 0.85 | $ 0.85 | $ 1.33 | $ 0.85 | $ (13.76) | $ 3.86 | $ 5.44 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 15, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Events (Textuals) [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 1.6 | $ 1.4 | $ 1.2 | |
Subsequent Event | ||||
Subsequent Events (Textuals) [Abstract] | ||||
Dividends declared per common share (in dollars per share) | $ 0.45 | |||
Dividends | $ 8.2 |