Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 18, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | Kaiser Aluminum Corp | |
Entity Central Index Key | 811,596 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 17,982,909 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Current assets: | |||
Cash and cash equivalents | $ 70.7 | $ 72.5 | |
Short-term investments | 10 | 30 | |
Receivables: | |||
Trade receivables – net | 138.8 | 116.7 | |
Other | 8.6 | 6.1 | |
Inventories | 210.6 | 219.6 | |
Prepaid expenses and other current assets1 | [1] | 9.1 | 56.7 |
Total current assets | 447.8 | 501.6 | |
Property, plant and equipment – net | 504.5 | 495.4 | |
Deferred tax assets – net1, 2 | [1],[2] | 197.5 | 163.3 |
Intangible assets – net | 30.1 | 30.5 | |
Goodwill | 37.2 | 37.2 | |
Other assets1 | [1] | 19.5 | 19.6 |
Total | 1,236.6 | 1,247.6 | |
Current liabilities: | |||
Accounts payable | 70.2 | 76.7 | |
Accrued salaries, wages and related expenses | 33.9 | 39.8 | |
Other accrued liabilities | 56.5 | 52.7 | |
Short-term capital leases | 0.1 | 0.1 | |
Total current liabilities | 160.7 | 169.3 | |
Net liabilities of Salaried VEBA | 18.7 | 19 | |
Deferred tax liabilities | 2.1 | 2.1 | |
Long-term liabilities | 72.5 | 87.5 | |
Long-term debt1 | [1] | 194.8 | 194.6 |
Total liabilities | $ 448.8 | $ 472.5 | |
Commitments and contingencies – Note 7 | |||
Stockholders' equity: | |||
Preferred stock, 5,000,000 shares authorized at both March 31, 2016 and December 31, 2015; no shares were issued and outstanding at March 31, 2016 and December 31, 2015 | $ 0 | $ 0 | |
Common stock, par value $0.01, 90,000,000 shares authorized at both March 31, 2016 and at December 31, 2015; 22,307,219 shares issued and 17,986,521 shares outstanding at March 31, 2016; 22,291,180 shares issued and 18,053,747 shares outstanding at December 31, 2015 | 0.2 | 0.2 | |
Additional paid in capital2 | [2] | 1,037.2 | 1,037.3 |
Retained earnings2 | [2] | 34.1 | 15.8 |
Treasury stock, at cost, 4,320,698 shares at March 31, 2016 and 4,237,433 shares at December 31, 2015, respectively | (252.9) | (246.5) | |
Accumulated other comprehensive loss | (30.8) | (31.7) | |
Total stockholders' equity | 787.8 | 775.1 | |
Total | $ 1,236.6 | $ 1,247.6 | |
[1] | See Note 1 for discussion of our adoption of ASU 2015-03, ASU 2015-15 and ASU 2015-17 (as defined in Note 1). | ||
[2] | See Note 4 and Note 6 for discussion of our adoption of ASU 2016-09 (as defined in Note 1). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2016 | Dec. 31, 2015 |
Stockholders' equity: | ||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 0 | 0 |
Preferred Stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common Stock, shares issued | 23,307,219 | 22,291,180 |
Common stock, shares outstanding | 17,986,521 | 18,053,747 |
Treasury stock, shares | 4,320,698 | 4,237,433 |
Statements of Consolidated Inco
Statements of Consolidated Income - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net sales | $ 343.2 | $ 371.7 |
Cost of products sold: | ||
Cost of products sold, excluding depreciation and amortization and other items | 262 | 302.3 |
Inventory Write-down | 4.9 | 0 |
Unrealized (gain) loss on derivative instruments | (4) | 4.5 |
Depreciation and amortization | 8.7 | 8 |
Selling, general, administrative, research and development | 26.1 | 22.7 |
Net periodic postretirement benefit cost relating to Salaried VEBA | 0.8 | 0.6 |
(Gain) loss on removal of Union VEBA net assets | (0.1) | 492.2 |
Total selling, general, administrative, research and development | 26.8 | 515.5 |
Total costs and expenses | 298.4 | 830.3 |
Operating income (loss) | 44.8 | (458.6) |
Other (expense) income: | ||
Interest expense | (3.7) | (9.8) |
Other income, net | 0.3 | 0.4 |
Income (loss) before income taxes | 41.4 | (468) |
Income tax (provision) benefit | (15.1) | 175.8 |
Net income (loss) | $ 26.3 | $ (292.2) |
Net income (loss) per common share: | ||
Basic | $ 1.47 | $ (16.85) |
Diluted | $ 1.44 | $ (16.85) |
Weighted-average number of common shares outstanding (in thousands): | ||
Basic | 17,864 | 17,344 |
Diluted | 18,200 | 17,344 |
Common Stock, Dividends, Per Share, Declared | $ 0.45 | $ 0.40 |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 26.3 | $ (292.2) |
Reclassification adjustments: | ||
Amortization of net actuarial loss | 0.1 | 0.3 |
Amortization of prior service cost | 1 | 0.7 |
Removal of obligation relating to Union VEBA | 0 | 106.6 |
Other comprehensive income relating to VEBAs | (1.1) | (107.6) |
Available for sale securities: | ||
Reclassification of unrealized loss upon sale of available for sale securities | 0 | (0.1) |
Other comprehensive income relating to available for sale securities | 0 | 0.1 |
Foreign currency translation gain on Canadian pension plan | 0.1 | 0 |
Unrealized gain on foreign currency cash flow hedges | 0.2 | 0 |
Foreign currency translation gain | 0 | 0.1 |
Other comprehensive income, before tax | 1.4 | 107.8 |
Income tax expense related to items of other comprehensive income | (0.5) | (40.9) |
Other comprehensive income, net of tax | 0.9 | 66.9 |
Comprehensive income (loss) | $ 27.2 | $ (225.3) |
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 Loss | |
Stockholders' Equity [Roll Forward] | |||||||
Cumulative-effect adjustment | [1] | $ 0.7 | $ 0.8 | $ (0.1) | |||
Stockholders' equity, adjusted balance | $ 775.1 | $ 0.2 | 1,037.3 | 15.8 | $ (246.5) | $ (31.7) | |
Beginning balance, shares (Scenario, Previously Reported) at Dec. 31, 2015 | 18,053,747 | ||||||
Beginning balance, shares at Dec. 31, 2015 | 18,053,747 | 18,053,747 | |||||
Beginning balance (Scenario, Previously Reported) at Dec. 31, 2015 | $ 774.4 | $ 0.2 | 1,036.5 | 15.9 | (246.5) | (31.7) | |
Beginning balance at Dec. 31, 2015 | 775.1 | ||||||
Stockholders' Equity [Roll Forward] | |||||||
Net income | 26.3 | 26.3 | |||||
Other comprehensive income, net of tax | 0.9 | 0.9 | |||||
Issuance of common shares to employees upon vesting of restricted stock units and performance shares | 51,373 | ||||||
Cancellation of employee non-vested shares | (172) | ||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (35,162) | ||||||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | $ (2.7) | (2.7) | |||||
Repurchase of common stock | (83,265) | (83,265) | |||||
Repurchase of common stock | $ (6.4) | (6.4) | |||||
Cash dividends on common stock ($0.45 per share) | (8.2) | (8.2) | |||||
Amortization of unearned equity compensation | 2.6 | 2.6 | |||||
Dividends on unvested equity awards that were canceled | $ 0.2 | 0.2 | |||||
Ending balance, shares at Mar. 31, 2016 | 17,986,521 | 17,986,521 | |||||
Ending balance at Mar. 31, 2016 | $ 787.8 | $ 0.2 | $ 1,037.2 | $ 34.1 | $ (252.9) | $ (30.8) | |
[1] | See Note 4 and Note 6 for discussion of our adoption of ASU 2016-09 (as defined in Note 1). |
Statement of Consolidated Stoc7
Statement of Consolidated Stockholders' Equity Statement of Consolidated Stockholders' Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2016$ / shares | |
Common Stock, Dividends, Per Share, Declared | $ 0.45 |
Retained Earnings | |
Common Stock, Dividends, Per Share, Declared | $ 0.45 |
Statement of Consolidated Cash
Statement of Consolidated Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Cash flows from operating activities: | |||
Net income | $ 26.3 | $ (292.2) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation of property, plant and equipment | 8.3 | 7.6 | |
Amortization of definite-lived intangible assets | 0.4 | 0.4 | |
Amortization of debt discount and debt issuance costs | 0.3 | 3.2 | |
Deferred income taxes – Note 4 | 15.1 | (176.7) | |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest1 | [1] | 0 | (1) |
Non-cash equity compensation1 | [2] | 2.6 | 2.1 |
Inventory Write-down | 4.9 | 0 | |
Non-cash unrealized (gain) loss on derivative instruments | (4) | 4.5 | |
Non-cash defined benefit net periodic benefit cost relating to Salaried VEBA | 0.8 | 0.6 | |
Non-cash loss on removal of Union VEBA net assets2 | [3] | 0 | 446.7 |
Other non-cash changes in assets and liabilities | 0.3 | 0.3 | |
Changes in operating assets and liabilities: | |||
Trade and other receivables | (24.6) | (18.3) | |
Inventories, excluding lower of cost or market write-down | 4.1 | (3.3) | |
Prepaid expenses and other current assets | (2.2) | (2.4) | |
Accounts payable | 1.9 | 0.4 | |
Accrued liabilities2 | 21.2 | 19.1 | |
Annual variable cash contributions to VEBAs2 | [3] | (19.5) | (13.7) |
Long-term assets and liabilities, net2 | [3] | (14.6) | 30.1 |
Net cash provided by operating activities | 21.3 | 7.4 | |
Cash flows from investing activities3: | |||
Capital expenditures | (25.9) | (11.3) | |
Proceeds from disposition of available for sale securities | 20 | 84 | |
Net cash (used in) provided by investing activities | [4] | (5.9) | 72.7 |
Cash flows from financing activities3: | |||
Repayments of Long-term Capital Lease Obligations | 0 | 0.1 | |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0 | 1 | |
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (2.7) | (2.5) | |
Repurchase of common stock | (6.3) | (28.2) | |
Cash dividends paid to stockholders | (8.2) | (7.1) | |
Net cash used in financing activities | [4] | (17.2) | (36.9) |
Net (decrease) increase in cash and cash equivalents during the period | (1.8) | 43.2 | |
Cash and cash equivalents at beginning of period | 72.5 | 177.7 | |
Cash and cash equivalents at end of period | $ 70.7 | $ 220.9 | |
[1] | See Note 4 and Note 6 for discussion of our adoption of ASU 2016-09. | ||
[2] | See Note 4 and Note 6 for discussion of our adoption of ASU 2016-09 (as defined in Note 1). | ||
[3] | See Note 5 for the impact of removing the Union VEBA (defined in Note 5) net assets. | ||
[4] | See Note 12 for the supplemental disclosure on non-cash transactions. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies This Quarterly Report on Form 10-Q (this "Report") should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended December 31, 2015 . Unless the context otherwise requires, references in these notes to interim consolidated financial statements - unaudited to "Kaiser Aluminum Corporation," "we," "us," "our," "the Company" and "our Company" refer 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 11 for additional information regarding our reportable segment and business unit. Principles of Consolidation and Basis of Presentation. The accompanying unaudited consolidated financial statements include the accounts of our wholly owned subsidiaries and are prepared in accordance with United States generally accepted accounting principles ("GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC") applicable for interim periods and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In management's opinion, all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for our interim periods are not necessarily indicative of the results of operations that may be achieved for the entire 2016 fiscal year. The financial information as of December 31, 2015 is derived from our audited consolidated financial statements and footnotes for the year ended December 31, 2015 included in our Annual Report on Form 10-K. See New Accounting Pronouncements below for a discussion of new accounting pronouncements we adopted during the quarter ended March 31, 2016 requiring cumulative-effect adjustments that impacted our consolidated financial statements and footnotes for the year ended December 31, 2015. Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of our consolidated financial position and results of operations. Inventories. Inventories are stated at the lower of cost or market value. On March 31, 2016 , we recorded an inventory write-down of $4.9 million to reflect the net realizable value as of that date. The net realizable value reflected commitments as of that date from customers to purchase our inventory at prices that exceeded the Midwest Transaction Price ("Midwest Price"), which reflects the primary aluminum supply/demand dynamics in North America, reduced by an approximate normal profit margin. If we encounter a further 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 March 31, 2016 , after adjusting for the inventory write down discussed above, the stated LIFO value of the inventory represented its net realizable value (less a normal profit margin) and exceeded the current cost of our inventory by $17.7 million . Additionally, during the quarter ended March 31, 2016 , we decremented a prior year, higher cost LIFO layer, which resulted in an insignificant charge. The excess of current cost over the stated LIFO value of inventory at December 31, 2015 was $24.1 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 March 31, 2016 and December 31, 2015 were included in the Fabricated Products segment (see Note 2 for the components of inventories). Property, Plant and Equipment – Net. Property, plant and equipment is recorded at cost (see Note 2 ). Construction in progress is included within Property, plant and equipment – net on the Consolidated Balance Sheets. Interest related to the construction of qualifying assets is capitalized as part of the construction costs. The aggregate amount of interest capitalized is limited to the interest expense incurred in the period. The amount of interest expense capitalized as construction in progress was $0.9 million and $0.3 million during the quarters ended March 31, 2016 and March 31, 2015 , respectively. Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Capital lease assets and leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. Depreciation expense is not included in Cost of products sold, excluding depreciation and amortization and other items, but is included in Depreciation and amortization on the Statements of Consolidated Income (Loss). For the quarters ended March 31, 2016 and March 31, 2015 , we recorded depreciation expense of $8.2 million and $7.5 million , respectively, relating to our operating facilities in the Fabricated Products segment. An immaterial amount of depreciation expense was also recorded within All Other for all periods presented in this Report. We classify assets as held for sale only when an asset is being actively marketed and expected to sell within 12 months. Assets held for sale are initially measured at the lesser of the assets' carrying amount and the fair value less costs to sell. 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 income 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 income (loss) immediately. If a forecasted equipment purchase was no longer probable to occur, amounts previously deferred in Accumulated other comprehensive income (loss) would be recognized immediately in Net income (loss). See Note 8 for additional information. We are exposed to counterparty credit risk on all of our derivative instruments. Accordingly, we have established and maintained strict counterparty credit guidelines and entered into hedges only with major financial institutions that are investment grade or better. We do not have significant exposure to any one counterparty and management believes the risk of loss is remote and in any event would not be material. Additionally, we do not require collateral under these agreements. New Accounting Pronouncements. Accounting Standards Update ("ASU") No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"), was issued in April 2015. ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in an entity's balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of being presented as a deferred charge in the balance sheet. The recognition and measurement guidance for debt issuance costs is not affected by ASU 2015-03. During the quarter ended March 31, 2016 , we retrospectively adopted ASU 2015-03, which resulted in a reclassification of $3.2 million of debt issuance costs related to our Senior Notes (as defined in Note 3) from Other assets to Long-term debt as of December 31, 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 in August 2015 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 2015-15. Our adoption of this ASU in the first quarter of 2016 did not 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. Our retrospective adoption of this ASU in the first quarter of 2016 did not 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. During the quarter ended March 31, 2016, we early adopted this ASU on a prospective basis. As such, prior periods were not retrospectively adjusted. ASU No. 2016-02, Leases (Topic 842): Amendments to the Financial Accounting Standards Board Accounting Standards Codification ("ASU 2016-02"), was issued in February 2016. Under ASU 2016-02, lessees will need to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). For income statement purposes, a dual model was retained, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). ASU 2016-02 becomes effective for us in the first quarter of 2019. We are currently evaluating whether to early adopt the standard and what impact it will have on our consolidated financial statements, which we expect will be material. ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), was issued in March 2016. ASU 2016-09 eliminates additional paid in capital ("APIC") pools and requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. The accounting for an employee's use of shares to satisfy the employer's statutory income tax withholding obligation and the accounting for forfeitures is also changing. ASU 2016-09 becomes effective for us in the first quarter of 2017. We early adopted ASU 2016-09 during the quarter ended March 31, 2016. See Note 4 and Note 6 for a discussion on the impact of our adoption of ASU 2016-09. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information March 31, 2016 December 31, 2015 (In millions of dollars) Cash and Cash Equivalents Cash and money market funds $ 34.5 $ 40.3 Commercial paper 36.2 32.2 Total $ 70.7 $ 72.5 Trade Receivables – Net Billed trade receivables $ 139.4 $ 116.8 Unbilled trade receivables 0.2 0.7 Trade receivables, gross 139.6 117.5 Allowance for doubtful receivables (0.8 ) (0.8 ) Trade receivables – net $ 138.8 $ 116.7 Inventories Finished products $ 66.8 $ 79.5 Work-in-process 73.4 63.6 March 31, 2016 December 31, 2015 (In millions of dollars) Raw materials 46.7 53.4 Operating supplies and repair and maintenance parts 23.7 23.1 Total $ 210.6 $ 219.6 Prepaid Expenses and Other Current Assets Current derivative assets – Notes 8 and 9 $ 1.4 $ 1.5 Current deferred tax assets 1 — 49.6 Prepaid taxes 3.3 — Prepaid insurance 1.1 1.9 Short-term restricted cash 0.3 0.3 Other 3.0 3.4 Total $ 9.1 $ 56.7 Property, Plant and Equipment – Net Land and improvements $ 22.7 $ 22.7 Buildings and leasehold improvements 72.5 71.8 Machinery and equipment 559.3 549.0 Construction in progress 54.8 48.5 Property, plant and equipment – gross 709.3 692.0 Accumulated depreciation (205.1 ) (196.9 ) Assets held for sale 0.3 0.3 Property, plant and equipment – net $ 504.5 $ 495.4 Other Assets Restricted cash $ 10.9 $ 10.9 Deferred financing costs on Revolving Credit Facility 1.1 1.3 Deferred compensation plan assets 7.3 7.3 Derivative assets – Notes 8 and 9 0.2 0.1 Total $ 19.5 $ 19.6 Other Accrued Liabilities Current derivative liabilities – Notes 8 and 9 $ 10.3 $ 14.1 Uncleared cash disbursements 10.0 8.0 Accrued income taxes and taxes payable 8.6 3.1 Accrued annual contribution to VEBAs — 19.6 Accrued contingent contribution to Union VEBA – Note 5 17.1 — Short-term environmental accrual – Note 7 1.3 1.6 Accrued interest 5.5 1.5 Short-term deferred revenue 0.8 1.2 Other 2.9 3.6 Total $ 56.5 $ 52.7 March 31, 2016 December 31, 2015 (In millions of dollars) Long-Term Liabilities Derivative liabilities – Notes 8 and 9 $ 1.7 $ 2.1 Income tax liabilities 0.8 0.7 Workers' compensation accruals 24.1 21.7 Long-term environmental accrual – Note 7 16.8 17.0 Long-term asset retirement obligations 4.9 4.8 Deferred compensation liability 7.8 7.7 Long-term deferred revenue 0.3 0.3 Long-term capital leases 0.1 0.1 Long-term portion of contingent contribution to Union VEBA – Note 5 12.8 29.9 Other long-term liabilities 3.2 3.2 Total $ 72.5 $ 87.5 ____________ 1 See Note 4 for discussion of our adoption of ASU 2015-17. |
Debt and Credit Facility
Debt and Credit Facility | 3 Months Ended |
Mar. 31, 2016 | |
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. During 2015, we repurchased $27.2 million aggregate principal amount of our Senior Notes for 107.5% of the face value. As of both March 31, 2016 and December 31, 2015 , $197.8 million aggregate principal amount of our Senior Notes remained outstanding. Interest expense, including amortization of deferred financing costs, relating to the Senior Notes was $4.3 million and $4.8 million for the quarters ended March 31, 2016 and March 31, 2015 , respectively. A portion of the interest relating to the Senior Notes was capitalized as construction in progress. 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. The fair value of the outstanding Senior Notes at March 31, 2016 and December 31, 2015 was approximately $205.7 million and $207.3 million , respectively. See Note 9 for information relating to the estimated fair value of the Senior Notes. Revolving Credit Facility Our credit agreement with JPMorgan Chase Bank, N.A., as administrative agent, and the other financial institutions party thereto ("Revolving Credit Facility") provides us with a $300.0 million funding commitment through December 2020. We had $299.1 million of borrowing availability under the Revolving Credit Facility at March 31, 2016 , based on the borrowing base determination then in effect. At March 31, 2016 , there were no borrowings under the Revolving Credit Facility and $7.3 million was being used to support outstanding letters of credit, leaving $291.8 million of net borrowing availability. The interest rate applicable to any overnight borrowings under the Revolving Credit Facility would have been 3.75% at March 31, 2016 . |
Income Tax Matters
Income Tax Matters | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Matters | Income Tax Matters The provision for (benefit from) incomes taxes for each period presented consisted of the following (in millions of dollars): Quarter Ended March 31, 2016 2015 Domestic $ 14.9 $ (175.8 ) Foreign 0.2 — Total $ 15.1 $ (175.8 ) The income tax provision (benefit) for the quarters ended March 31, 2016 and March 31, 2015 was $15.1 million and $(175.8) million , reflecting an effective tax rate of 36.5% and 37.6% , respectively. The difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended March 31, 2016 was due to (i) a decrease of $0.7 million for the recognition of excess tax benefits from stock compensation, resulting in a 1.7% decrease to the blended statutory tax rate, which was partially offset by (ii) an increase of $0.3 million to the valuation allowance for certain state net operating losses, resulting in a 0.7% increase to the blended statutory tax rate. There was no material difference between the effective tax rate and the projected blended statutory tax rate for the quarter ended March 31, 2015 . The $175.8 million income tax benefit for the quarter ended March 31, 2015 included a $184.4 million tax benefit that was recorded as a result of removing the Union VEBA net assets and related deferred tax liabilities from our consolidated financial statements. See Note 5 for disclosure regarding employee benefits. Our gross unrecognized benefits relating to uncertain tax positions were $1.7 million at March 31, 2016 and December 31, 2015 , respectively, of which, $0.6 million would be recorded through our income tax provision and thus impact the effective tax rate at March 31, 2016 and December 31, 2015 , respectively, if the gross unrecognized tax benefits were to be recognized. We do not expect our gross unrecognized tax benefits to significantly change within the next 12 months . ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , was issued and early adopted in March 2016. ASU 2016-09 eliminates additional paid in capital ("APIC") pools and requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. In addition, modified retrospective adoption of ASC 2016-09 eliminates the requirement that excess tax benefits be realized (i.e., through a reduction in income taxes payable) before we can recognize them and therefore, we have recorded a cumulative-effect adjustment of $0.7 million through Retained earnings and Deferred tax assets – net during the quarter ended March 31, 2016 to record excess tax benefits not previously recognized. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefits | Employee Benefits Pension and Similar Benefit Plans. We provide contributions to: (i) multi-employer pension plans sponsored by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union AFL-CIO, CLC ("USW") and the International Association of Machinists and certain other unions at certain of our production facilities; (ii) defined contribution 401(k) savings plans for hourly bargaining unit employees and salaried and certain hourly non-bargaining unit employees; (iii) a defined benefit plan for salaried employees at our London, Ontario (Canada) facility; and (iv) a non-qualified, unfunded, unsecured plan of deferred compensation for key employees who would otherwise suffer a loss of benefits under our defined contribution plan. VEBA Postretirement Obligations. Certain eligible retirees participate 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 eligible retirees and their surviving spouse and eligible dependents (the "Salaried VEBA" and, together with the Union VEBA, "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. Our primary financial obligation to the VEBAs is to make an annual variable cash contribution based on the contribution formula discussed in Note 6 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2015 . The variable cash contribution obligation to the Union VEBA expires in September 2017, while the obligation to the Salaried VEBA has no express termination date. The variable contribution for 2015 was $19.5 million (comprised of $16.7 million to the Union VEBA and $2.8 million to the Salaried VEBA). These amounts were paid during the first quarter of 2016. We treat the Salaried VEBA as a defined benefit plan in our financial statements. In the quarter ended March 31, 2015, after determining that our obligation to make annual variable contributions to the Union VEBA would expire as of September 2017, we terminated defined benefit plan accounting for the Union VEBA. This resulted in a non-cash loss of $307.8 million , net of a $184.4 million tax benefit, as we removed the Union VEBA net assets and related deferred tax liabilities from our Consolidated Balance Sheet. We have recorded the estimated liability for the remaining variable cash contributions in Other accrued liabilities and Long-term liabilities (see Note 2 ). Our aggregate estimate of $29.9 million for the amounts due for the 2016 variable cash contribution (to be paid in 2017) and the variable contribution for the first nine months of 2017 (to be paid in 2018) is subject to change based on our actual cash flow for each respective calendar year. We review the estimated liability quarterly and reflect any changes in our Operating income (loss). Components of Net Periodic Benefit Cost. Our results of operations included the following impacts associated with the Canadian defined benefit plan and the Salaried VEBA: (a) charges for service rendered by employees; (b) a charge for accretion of interest; (c) a benefit for the return on plan assets; and (d) amortization of net gains or losses on assets, prior service costs associated with plan amendments and actuarial differences. Net periodic benefit cost related to the Canadian defined benefit plan was not material for the quarters ended March 31, 2016 and March 31, 2015 . The following table presents the components of net periodic benefit cost for the Salaried VEBA and charges relating to all other employee benefit plans for the periods presented (in millions of dollars): Quarter Ended March 31, 2016 2015 Salaried VEBA: Service cost 1 $ — $ — Interest cost 0.7 0.7 Expected return on plan assets (1.0 ) (1.1 ) Amortization of prior service cost 1.0 0.7 Amortization of net actuarial loss 0.1 0.3 Total net periodic postretirement benefit cost relating to Salaried VEBA 0.8 0.6 (Gain) loss on removal of Union VEBA net assets (0.1 ) 492.2 Other employee benefit plans: Deferred compensation plan 0.1 0.4 Defined contribution plans 4.0 4.0 Multiemployer pension plans 1.1 0.9 Total other employee benefit plans $ 5.2 $ 5.3 Total $ 5.9 $ 498.1 ____________ 1 The service cost was insignificant for all periods presented. The following table presents the allocation of the charges (income) detailed above, by reportable segment and business unit (in millions of dollars – see Note 11 ): Quarter Ended March 31, 2016 2015 Fabricated Products $ 4.7 $ 4.6 All Other 1.2 493.5 Total $ 5.9 $ 498.1 For all periods presented, Net periodic postretirement benefit cost relating to the Salaried VEBA and the (Gain) loss on removal of Union VEBA net assets were included within All Other. Further, substantially all of the Fabricated Products segment's employee benefits related charges are in Cost of products sold, excluding depreciation and amortization and other items with the remaining balance in Selling, general, administrative, research and development ("SG&A and R&D"). |
Employee Incentive Plans
Employee Incentive Plans | 3 Months Ended |
Mar. 31, 2016 | |
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. As of March 31, 2016 , we had a liability of $4.9 million recorded within Accrued salaries, wages and related expenses for estimated probable future payments relating to the first quarter performance period of our 2016 STI Plans. 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"). 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 March 31, 2016 , 603,810 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 and restricted stock units to our non-employee directors, executive officers and other key 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 in 2014 and 2015 ("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 Plans 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. Performance shares granted in 2016 consist of TSR-Based Performance Shares and performance shares subject to performance requirements ("CP-Based Performance Shares") pertaining to our cost performance as set forth in the 2016 LTI Program. The number of CP-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 cost performance achieved for the specified three -year performance period. During the first quarter of 2016 , performance shares granted in 2013 ("EVA-Based Performance Shares") under the 2013-2015 LTI Program became fully vested (see "Summary of Activity" below). The EVA-Based Performance Shares were subject to performance conditions pertaining to our EVA performance, measured over the three -year performance period. The number of EVA-Based Performance Shares that vested and resulted in the issuance of common shares was dependent on the average annual EVA achieved for the specified three -year performance period. The vesting of performance shares resulting in the issuance and delivery of common shares, if any, under the 2014-2016 and 2015-2017 LTI Programs will occur in 2017 and 2018, respectively. ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , was issued and early adopted in March 2016. ASU 2016-09 eliminates the requirement to estimate and apply a forfeiture rate to reduce stock compensation expense during the vesting period and, instead, account for forfeitures as they occur. ASU 2016-09 requires that this change be adopted using the modified retrospective approach. As such, we recorded a cumulative-effect adjustment of $0.8 million during the quarter ended March 31, 2016 to reduce our December 31, 2015 Retained earnings and increase our December 31, 2015 Additional paid in capital balances. Additionally, ASU 2016-09 addresses the presentation of excess tax benefits and employee taxes paid on the statement of cash flows. We are now required to present excess tax benefits as an operating activity (combined with other income tax cash flows) on the statement of cash flows rather than as a financing activity, and we have adopted this change prospectively. ASU 2016-09 also requires the presentation of employee taxes as a financing activity on the statement of cash flows, which is where we had previously classified these items. This change, therefore, did not impact our financial statements. 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): Quarter Ended March 31, 2016 2015 Non-vested common shares and restricted stock units $ 1.1 $ 1.1 EVA-Based Performance Shares 0.3 0.4 TSR-Based Performance Shares 1.1 0.6 CP-Based Performance Shares $ 0.1 $ — Total non-cash compensation expense $ 2.6 $ 2.1 The following table presents the allocation of the charges detailed above, by segment (in millions of dollars): Quarter Ended March 31, 2016 2015 Fabricated Products $ 0.8 $ 0.7 All Other 1.8 1.4 Total non-cash compensation expense $ 2.6 $ 2.1 Unrecognized Gross Compensation Cost Data. The following table presents unrecognized gross compensation cost data by type of award as of March 31, 2016 : Unrecognized gross compensation costs (in millions of dollars) Expected period (in years) over which the remaining gross compensation costs will be recognized Non-vested common shares and restricted stock units $ 8.3 2.3 CP-Based Performance Shares $ 4.7 2.9 TSR-Based Performance Shares $ 10.5 2.2 Summary of Activity. A summary of the activity with respect to non-vested common shares, restricted stock units, EVA-Based Performance Shares, CP-Based Performance Shares and TSR-Based Performance Shares for the quarter ended March 31, 2016 is as follows: Non-Vested Common Shares Restricted Stock Units EVA-Based Performance Shares CP-Based Performance Shares TSR-Based Performance Shares Shares Weighted-Average Grant-Date Fair Value per Share Units Weighted-Average Grant-Date Fair Value per Unit Shares Weighted-Average Grant-Date Fair Value per Share Shares Weighted-Average Shares Weighted-Average Outstanding at December 31, 2015 156,553 $ 67.20 5,521 $ 66.64 155,105 $ 57.76 — $ — 299,877 $ 89.43 Granted 1 — — 52,705 74.49 — — 63,983 80.46 95,974 93.02 Vested (38,812 ) 60.75 (1,762 ) 63.18 (49,611 ) 57.76 — — — — Forfeited 1 (172 ) 68.99 (165 ) 74.49 — — (164 ) 80.46 (1,115 ) 90.06 Canceled 1 — — — — (105,494 ) 57.76 — — — — Outstanding at March 31, 2016 117,569 $ 69.33 56,299 $ 74.07 — $ — 63,819 $ 80.46 394,736 $ 90.30 ____________ 1 For EVA-Based Performance Shares, CP-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 weighted-average grant-date fair value per share for shares granted by type of award was as follows for each period presented: Quarter Ended March 31, 2016 2015 Non-vested common shares $ — $ 69.83 Restricted stock units $ 74.49 $ 69.83 CP-Based Performance Shares $ 80.46 $ — TSR-Based Performance Shares $ 93.02 $ 95.68 Stock Options. We had 16,645 fully-vested stock options outstanding as of March 31, 2016 and December 31, 2015 , in each case exercisable to purchase common shares at $80.01 per share and having a remaining contractual life of 1.00 and 1.25 years, respectively. During the quarter ended March 31, 2016 , no options were granted, exercised or forfeited. 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 income (loss) as a period expense. Such shares are generally issued during the second quarter of each fiscal year. Under the Equity Incentive Plan, participants may elect to have us withhold common shares to satisfy minimum statutory tax withholding obligations arising in connection with the exercise of stock options and vesting of non-vested shares, restricted stock units and performance shares. We cancel any such shares withheld on the applicable vesting dates or earlier dates when service requirements are satisfied, which correspond to the times at which income to the employee is recognized. When we withhold these common shares, we are required to remit to the appropriate taxing authorities the fair value of the shares withheld as of the vesting date. During the quarters ended March 31, 2016 and March 31, 2015 , 35,162 and 33,628 common shares, respectively, were withheld and canceled for this purpose. The withholding of common shares by us could be deemed a purchase of the common shares. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
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 8 ). There were no material changes to our scheduled minimum rental commitments and purchase obligations during the quarter ended March 31, 2016 . 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. 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 Spokane, Washington (“Trentwood”) facility. We also signed an amended work order in 2012 with Washington State Ecology allowing certain remediation activities to begin, including 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 that 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, Ohio (“Newark”) facility related to historical on-site waste disposal. Since 2014, we completed a number of preliminary steps in the preparation of completing the final risk assessment and feasibility study, both of which are subject to review and approval by the OEPA. As 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 nine to 15 months . At March 31, 2016 , our environmental accrual of $18.1 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 formerly 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 material and reasonably estimable. Quarterly, in addition to when changes in facts and circumstances require it, we review and adjust these accruals to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. While uncertainties are inherent in the final outcome of such matters and it is presently impossible to determine the actual cost that may ultimately be incurred, we believe that we have sufficiently accrued for such matters and that the ultimate resolution of pending matters will not have a material impact on our consolidated financial position, operating results, or liquidity. |
Derivative Financial Instrument
Derivative Financial Instruments and Related Hedging Programs | 3 Months Ended |
Mar. 31, 2016 | |
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. As of March 31, 2016 , we had open forward contracts designated as cash flow hedges to purchase euros with maturity dates between two months and 17 months . The notional amounts of these foreign currency forward contracts totaled 4.0 million euros and 4.7 million euros at March 31, 2016 and December 31, 2015 , respectively, with an average contract exchange rate of 1.14 euro to US dollar for both periods. The effective portion of the fair value on these instruments is recorded within Other comprehensive income (loss) and is reclassified into the Statements of Consolidated Income (Loss) on the same line item and the same period in which the underlying equipment is depreciated. We had no such reclassifications into Net income (loss) during the quarter ended March 31, 2016 and anticipate no material such reclassifications for the next 12 months. For the quarter ended March 31, 2016 , we recorded an unrealized gain of $0.2 million on the effective portions of our designated foreign currency cash flow hedges, resulting in an ending loss in Accumulated other comprehensive loss related to the cash flow hedges of $0.1 million at March 31, 2016 . We incurred no ineffectiveness on these hedges during the quarter ended March 31, 2016 . There were no forward contracts designated as cash flow hedges during the quarter ended March 31, 2015 . Non-Designated Hedges of Operational Risks . Our pricing of fabricated aluminum products is generally intended to lock in a conversion margin (representing the value added from the fabrication process(es)) and to pass through metal price fluctuations to our customers. 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 9 for additional information regarding our material derivative positions relating to hedges of operational risk, and their respective fair values. A majority of our derivative contracts relating to hedges of operational risks contain liquidity based thresholds that could require us to provide additional collateral in the event our liquidity were to fall below specified levels. To minimize the exposure to additional collateral requirements related to our liability hedge positions, we allocate hedging transactions among our counterparties, use options as part of our hedging activities, or both. The aggregate fair value of our derivative instruments that were in a net liability position was $10.4 million and $14.6 million at March 31, 2016 and December 31, 2015 , respectively, and we had no collateral posted as of those dates. 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. Realized and Unrealized Gains and Losses. Realized and unrealized (losses) gains associated with all derivative contracts consisted of the following for each period presented (in millions of dollars): Quarter Ended March 31, 2016 2015 Included in Other Comprehensive Income (Loss): Unrealized gain: Foreign Currency $ 0.2 $ — Included in Statements of Consolidated Income (Loss): Realized loss 1 : Aluminum (2.7 ) (2.7 ) Natural Gas (1.7 ) (1.3 ) Electricity — (0.7 ) Total realized loss $ (4.4 ) $ (4.7 ) Unrealized gain (loss) 2 : Non-designated hedges of operational risk: Aluminum $ 3.2 $ (4.2 ) Natural Gas 0.8 (0.7 ) Electricity — 0.4 Total non-designated hedges of operational risk 4.0 (4.5 ) Option Assets relating to the Convertible Notes 3 — 10.2 Bifurcated Conversion Feature of the Convertible Notes 3 — (10.2 ) Total unrealized gain (loss) $ 4.0 $ (4.5 ) ______________________ 1 Realized loss on hedges of operational risk are recorded within Cost of products sold, excluding depreciation, amortization and other items. 2 Unrealized gain (loss) on hedges of operational risk are recorded within Unrealized (gain) loss on derivative instruments. 3 Unrealized gain (loss) on financial derivatives related to our 4.5% unsecured cash convertible senior notes ("Convertible Notes"), which settled in April 2015. The following table summarizes our material derivative positions at March 31, 2016 : Aluminum Maturity Period (month/year) Notional Amount of contracts (mmlbs) Call option purchase contracts 4/16 through 6/16 2.0 Fixed price purchase contracts 4/16 through 12/17 128.4 Fixed price sales contracts 4/16 through 12/17 2.2 Midwest premium swap contracts 1 4/16 through 12/17 92.0 Natural Gas 2 Maturity Period (month/year) Notional Amount of contracts (mmbtu) Fixed price purchase contracts 4/16 through 12/18 7,070,000 Euro Maturity Period (month/year) Notional Amount of contracts (euro) Fixed price purchase contracts 5/16 through 8/17 3,950,374 ______________________ 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 March 31, 2016 , we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 79% , 73% and 72% of the expected natural gas purchases for the remainder of 2016 , 2017 and 2018 respectively. We have physical delivery commitments at firm prices covering approximately 54% of our expected electricity purchases for the remainder of 2016 and 2017 , and 27% for 2018 . 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 March 31, 2016 (in millions of dollars): Derivative Assets and Collateral Held by Counterparty Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Counterparty (with netting agreements) $ 1.0 $ — $ 1.0 $ 1.0 $ — $ — Counterparty (with partial netting agreements) 0.6 — 0.6 0.6 $ — $ — Total $ 1.6 $ — $ 1.6 $ 1.6 $ — $ — Derivative Liabilities and Collateral Held by Counterparty Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Counterparty (with netting agreements) $ (6.3 ) $ — $ (6.3 ) $ (1.0 ) $ — $ (5.3 ) Counterparty (with partial netting agreements) (5.7 ) — (5.7 ) (0.6 ) — (5.1 ) Total $ (12.0 ) $ — $ (12.0 ) $ (1.6 ) $ — $ (10.4 ) 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 Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Counterparty (with netting agreements) $ 1.3 $ — $ 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 Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Counterparty (with netting agreements) $ (8.5 ) $ — $ (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 ) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
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 and our Canadian defined benefit pension plan measured annually at December 31; and (iii) available for sale securities, consisting of debt investment securities and investments related to our deferred compensation plan (see Note 5 ). We record certain other financial assets and liabilities at carrying value (see the tables below for the fair value disclosure of those assets and liabilities). The majority of our non-financial assets and liabilities, which include goodwill, intangible assets, inventories and property, plant and equipment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur (or at least annually for goodwill), an evaluation of 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. Salaried 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. 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. 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 March 31, 2016 , all of our short-term investments had maturity dates within two 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 March 31, 2016 and March 31, 2015 , the total unrealized loss, net of tax, included in accumulated other comprehensive loss 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 loss on these securities were due to changes in normal market fluctuations, and were not due to increased credit risk or other valuation concerns. In addition to debt investment securities, we also hold assets in various investment funds at certain registered investment companies in connection with our deferred compensation program (see Note 5 ). Such assets are accounted for as available for sale securities and are measured and recorded at fair value based on the 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 Senior Notes at March 31, 2016 and December 31, 2015 was based on the Senior Notes' trading price and is considered a Level 1 input in the fair value hierarchy (see Note 3 for the carrying values). 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): March 31, 2016 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 — 0.8 — 0.8 Midwest premium swap contracts — — 0.5 0.5 Natural Gas - Fixed priced purchase contracts — 0.1 — 0.1 All Other Financial Assets: Cash and cash equivalents 34.5 36.2 — 70.7 Short-term investments — 10.0 — 10.0 Deferred compensation plan assets — 7.3 — 7.3 Total assets $ 34.5 $ 54.6 $ 0.5 $ 89.6 FINANCIAL LIABILITIES: Derivative Instruments (Non-Designated Hedges): Aluminum – Fixed price purchase contracts $ — $ (5.6 ) $ — $ (5.6 ) Midwest premium swap contracts — — (0.3 ) (0.3 ) Natural Gas – Fixed price purchase contracts — (6.1 ) — (6.1 ) All Other Financial Liabilities: Senior Notes (205.7 ) — — (205.7 ) Total liabilities $ (205.7 ) $ (11.7 ) $ (0.3 ) $ (217.7 ) 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 All Other Financial Assets: Cash and cash equivalents 40.3 32.2 — 72.5 Short-term investments — 30.0 — 30.0 Deferred compensation plan assets — 7.3 — 7.3 Total assets $ 40.3 $ 70.2 $ 0.9 $ 111.4 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 ) 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 March 31, 2016 (in millions of dollars) Valuation technique Unobservable input Settlement Period Range ($ in unit price) Assets: Midwest premium contracts $ 0.5 Discounted fair value Forward price curve Apr-16 through Dec-17 $0.083 per metric ton to $0.084 per metric ton Liabilities: Midwest premium contracts $ (0.3 ) Discounted fair value Forward price curve Apr-16 through Jun-17 $0.083 per metric ton to $0.084 per metric ton The following table presents a reconciliation of activity for the Midwest premium derivative contracts on a net basis (in millions of dollars): Level 3 Fair value measurement at December 31, 2015 $ 0.6 Total realized/unrealized (loss) included in: Cost of goods sold excluding depreciation and amortization and other items and Unrealized loss on derivative instruments — Transactions involving Level 3 derivative contracts: Purchases (0.1 ) Sales — Issuances — Settlements (0.3 ) Transactions involving Level 3 derivatives – net (0.4 ) Transfers in and/or out of Level 3 valuation hierarchy — Fair value measurement at March 31, 2016 $ 0.2 Total gain included in Unrealized (gain) loss on derivative instruments, attributable to the change in unrealized gain/loss relating to derivative contracts held at March 31, 2016: $ (0.1 ) Fair Values of Non-Financial Assets and Liabilities We concluded that none of our non-financial assets and liabilities subject to fair value assessments on a non-recurring basis required a material adjustment to the carrying amount of such assets and liabilities for the quarters ended March 31, 2016 and March 31, 2015 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Net Income (Loss) Per Share Basic and diluted net income (loss) per share were calculated as follows, for each period presented (in millions of dollars, except share and per share amounts): Quarter Ended March 31, 2016 2015 Numerator: Net income (loss) $ 26.3 $ (292.2 ) Denominator – Weighted-average common shares outstanding (in thousands): Basic 1 17,864 17,344 Add: dilutive effect of non-vested common shares, restricted stock units and performance shares 336 — Diluted 2 18,200 17,344 Net income (loss) per common share, Basic: $ 1.47 $ (16.85 ) Net income (loss) per common share, Diluted: $ 1.44 $ (16.85 ) ______________________ 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. The following securities were excluded from the weighted-average diluted shares computation for the quarters ended March 31, 2016 and March 31, 2015 as their inclusion would have been anti-dilutive (in thousands of shares): Quarter Ended March 31, 2016 2015 Options to purchase common shares 17 17 Non-vested common shares, restricted stock units and performance shares 33 187 Warrants 1 — 636 Total excluded 50 840 ______________________ 1 Net-share-settled warrants ("Warrants") relating to approximately 3.7 million notional common shares of our common stock were outstanding at March 31, 2015 at an exercise price of approximately $60.57 per share, and were settled during a period from July 1, 2015 through December 18, 2015. During the quarter ended March 31, 2016 and March 31, 2015 , we paid a total of approximately $8.2 million ( $0.45 per common share) and $7.1 million ( $0.40 per common share), respectively, in cash dividends to stockholders, including the holders of restricted stock, and dividend equivalents to the holders of certain restricted stock units and to the holders of performance shares granted prior to 2014 with respect to the target number of underlying common shares (constituting approximately one-half of the maximum payout). From time to time, we repurchase shares pursuant to a stock repurchase program authorized by our Board of Directors. Repurchase transactions will occur at such times and prices as management deems appropriate and will be funded with our excess liquidity after giving consideration to, 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. During the quarters ended March 31, 2016 and March 31, 2015 , we repurchased 83,265 shares of common stock (at a weighted-average price of $76.85 per share) and 405,259 shares of common stock at a weighted-average price of $74.05 per share, respectively, pursuant to the stock repurchase program. The total cost of $6.4 million and $30.0 million was recorded as Treasury stock during the quarters ended March 31, 2016 and March 31, 2015 , respectively. At March 31, 2016 , $116.9 million were available to repurchase our common shares pursuant to the stock repurchase program. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
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 ("Aero/HS products"), automotive ("Automotive Extrusions"), general engineering ("GE products") and other industrial end market applications ("Other products"). We operate 11 focused production facilities in the United States and one in Canada. Consistent with the manner in which our chief operating decision maker reviews and evaluates our business, the Fabricated Products business is treated as a single operating segment. At March 31, 2016 , approximately 63% of our employees were covered by collective bargaining agreements and approximately 6% of our employees were covered by collective bargaining agreements with expiration dates occurring within one year from March 31, 2016 . In addition to the Fabricated Products segment, we have a business unit, All Other, which provides general and administrative support for our operations. For purposes of segment reporting under GAAP, we treat the Fabricated Products segment as a reportable segment. All Other is not considered a reportable segment. The accounting policies of the Fabricated Products segment are the same as those described in Note 1 . Segment results are evaluated internally by management before any allocation of corporate overhead and without any charge for income taxes, interest expense, or other net operating charges. The following tables provide financial information by reporting segment and business unit for each period or as of each period-end, as applicable (in millions of dollars): Quarter Ended March 31, 2016 2015 Net sales: Fabricated Products $ 343.2 $ 371.7 Segment operating income (loss): Fabricated Products 1 $ 57.9 $ 44.9 All Other 2 (13.1 ) (503.5 ) Total operating income (loss) $ 44.8 $ (458.6 ) Interest expense (3.7 ) (9.8 ) Other income, net 0.3 0.4 Income (loss) before income taxes $ 41.4 $ (468.0 ) Depreciation and amortization: Fabricated Products $ 8.6 $ 7.9 All Other 0.1 0.1 Total depreciation and amortization $ 8.7 $ 8.0 Capital expenditures: Fabricated Products $ 25.8 $ 11.2 All Other 0.1 0.1 Total capital expenditures $ 25.9 $ 11.3 _____________________ 1 Fabricated Products segment operating income included non-cash mark-to-market gain (loss) on primary aluminum, natural gas, electricity and foreign currency hedging activities, which totaled $4.0 million and $(4.5) million for the quarters ended March 31, 2016 and March 31, 2015 , respectively. For further discussion regarding mark-to-market matters, see Note 8 . 2 Operating loss in All Other included Net periodic postretirement benefit cost of $0.8 million and $0.6 million for the quarters ended March 31, 2016 and March 31, 2015 , respectively. Additionally, operating loss in All Other included (gain) loss on removal of Union VEBA net assets of $(0.1) million and $492.2 million for the quarters ended March 31, 2016 and March 31, 2015 , respectively. See Note 5 for further details. March 31, 2016 December 31, 2015 Assets: Fabricated Products $ 932.5 $ 904.7 All Other 1 304.1 342.9 Total assets $ 1,236.6 $ 1,247.6 _____________________ 1 Assets in All Other represent primarily all of our cash and cash equivalents, short-term investments, financial derivative assets (see Note 9 ) and net deferred income tax assets. Net sales by product categories based on end market applications for the Fabricated Products segment were as follows (in millions of dollars): Quarter Ended March 31, 2016 2015 Net sales: Aero/HS products $ 176.9 $ 180.3 Automotive Extrusions 48.4 50.1 GE products 105.4 119.1 Other products 12.5 22.2 Total net sales $ 343.2 $ 371.7 Geographic information for income taxes paid were as follows (in millions of dollars): Quarter Ended March 31, 2016 2015 Income taxes paid: Fabricated Products – United States $ 0.1 $ 0.1 Canada 0.2 0.9 Total income taxes paid $ 0.3 $ 1.0 The aggregate foreign currency transaction gain (loss) included in determining net income were immaterial for the quarters ended March 31, 2016 and March 31, 2015 . For the quarter ended March 31, 2016 , one customer represented 25% and another represented 10% of Fabricated Products Net sales. For the quarter ended March 31, 2015 , one customer represented 23% and another represented 10% of Fabricated Products Net Sales. At March 31, 2016 , one customer represented 19% and one other individual customer represented 12% of the trade receivables balance. Two individual customers accounted for 17% of the trade receivables balance at December 31, 2015 . Information for delivery of our primary aluminum supply from our major suppliers were as follows: Quarter Ended March 31, 2016 2015 Percentage of total primary aluminum supply (lbs): Supply from the Company's top five major suppliers 83 % 75 % Supply from the Company's largest supplier 30 % 29 % Supply from the Company's second and third largest suppliers 35 % 29 % |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Three Months Ended March 31, 2016 2015 (In millions of dollars) Interest paid $ 0.3 $ 0.1 Non-cash investing and financing activities: Stock repurchases not yet settled (accrued in accounts payable) $ 0.1 $ 1.8 Unpaid purchases of property and equipment $ 2.0 $ 1.3 |
Other Income (Expense), Net
Other Income (Expense), Net | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income, Net Other income, net consisted of the following for each period presented (in millions of dollars): Quarter Ended March 31, 2016 2015 Interest income $ 0.1 $ 0.2 Realized gain on investments — 0.3 All other income (expense), net 0.2 (0.1 ) Other income, net $ 0.3 $ 0.4 |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive Income Disclosure | Other Comprehensive Income The following table presents the tax effect allocated to each component of other comprehensive income for each period presented (in millions of dollars): Before-Tax Income Tax Net-of-Tax Amount (Expense) Benefit 3 Amount Quarter Ended March 31, 2016 Salaried VEBA : Reclassification adjustments: Amortization of net actuarial loss 1 $ 0.1 $ — $ 0.1 Amortization of prior service cost 1 1.0 (0.4 ) 0.6 Other comprehensive income relating to Salaried VEBA 1.1 (0.4 ) 0.7 Foreign currency translation gain on Canadian pension plan 0.1 — 0.1 Unrealized gain on foreign currency cash flow hedges 0.2 (0.1 ) 0.1 Other comprehensive income $ 1.4 $ (0.5 ) $ 0.9 Quarter Ended March 31, 2015 VEBAs: Reclassification adjustments: Amortization of net actuarial loss 1 $ 0.3 $ (0.1 ) $ 0.2 Amortization of prior service cost 1 0.7 (0.3 ) 0.4 Removal of obligation relating to Union VEBA 106.6 (40.4 ) 66.2 Other comprehensive income relating to VEBAs 107.6 (40.8 ) 66.8 Available for sale securities: Reclassification of unrealized loss upon sale of available for sale securities 2 0.1 (0.1 ) — Other comprehensive income relating to available for sale securities 0.1 (0.1 ) — Foreign currency translation gain 0.1 — 0.1 Other comprehensive income $ 107.8 $ (40.9 ) $ 66.9 ________________ 1 Amounts reclassified out of Accumulated other comprehensive loss relating to Salaried VEBA adjustments were included as a component of Net periodic postretirement benefit cost relating to the Salaried VEBA. 2 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. 3 Income tax amounts reclassified out of Accumulated other comprehensive loss were included as a component of Income tax (provision) benefit. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Statements (Notes) | 3 Months Ended |
Mar. 31, 2016 | |
Guarantor and Non-Guarantor Financial Statement [Abstract] | |
Guarantor and Non-Guarantor Financial Statements | Condensed Guarantor and Non-Guarantor Financial Information Our Senior Notes were issued 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 March 31, 2016 and December 31, 2015 , and for the quarters ended March 31, 2016 and March 31, 2015 present: (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) March 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 69.1 $ 1.6 $ — $ 70.7 Short-term investments — 10.0 — — 10.0 Receivables: Trade receivables – net — 134.0 4.8 — 138.8 Intercompany receivables 93.6 23.1 1.3 (118.0 ) — Other — 5.9 2.7 — 8.6 Inventories — 208.3 5.8 (3.5 ) 210.6 Prepaid expenses and other current assets 0.1 8.5 0.8 (0.3 ) 9.1 Total current assets 93.7 458.9 17.0 (121.8 ) 447.8 Investments in and advances to subsidiaries 912.8 32.0 — (944.8 ) — Property, plant and equipment – net — 473.1 31.4 — 504.5 Long-term intercompany receivables — — 3.9 (3.9 ) — Deferred tax assets – net — 190.5 — 7.0 197.5 Intangible assets – net — 30.1 — — 30.1 Goodwill — 37.2 — — 37.2 Other assets — 19.4 0.1 — 19.5 Total $ 1,006.5 $ 1,241.2 $ 52.4 $ (1,063.5 ) $ 1,236.6 LIABILITIES AND STOCKHOLDERS ' EQUITY Current liabilities: Accounts payable $ 0.6 $ 64.6 $ 5.0 $ — $ 70.2 Intercompany payable 17.9 99.3 4.5 (121.7 ) — Accrued salaries, wages and related expenses — 32.4 1.5 — 33.9 Other accrued liabilities 5.4 51.3 0.2 (0.4 ) 56.5 Short-term capital leases — 0.1 — — 0.1 Total current liabilities 23.9 247.7 11.2 (122.1 ) 160.7 Net liabilities of Salaried VEBA — 18.7 — — 18.7 Deferred tax liabilities — — 2.1 — 2.1 Long-term intercompany payable — 3.9 — (3.9 ) — Long-term liabilities — 66.2 6.3 — 72.5 Long-term debt 194.8 — — — 194.8 Total liabilities 218.7 336.5 19.6 (126.0 ) 448.8 Total stockholders' equity 787.8 904.7 32.8 (937.5 ) 787.8 Total $ 1,006.5 $ 1,241.2 $ 52.4 $ (1,063.5 ) $ 1,236.6 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 — 156.3 — 7.0 163.3 Intangible assets – net — 30.5 — — 30.5 Goodwill — 37.2 — — 37.2 Other assets — 19.5 0.1 — 19.6 Total $ 1,077.4 $ 1,342.9 $ 49.0 $ (1,221.7 ) $ 1,247.6 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 leases — 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 194.6 — — — 194.6 Total liabilities 303.0 282.5 16.8 (129.8 ) 472.5 Total stockholders' equity 774.4 1,060.4 32.2 (1,091.9 ) 775.1 Total $ 1,077.4 $ 1,342.9 $ 49.0 $ (1,221.7 ) $ 1,247.6 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) (In millions of dollars) Quarter Ended March 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 335.7 $ 26.4 $ (18.9 ) $ 343.2 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 257.1 23.1 (18.2 ) 262.0 Lower of cost or market inventory write-down — 4.9 — — 4.9 Unrealized gain on derivative instruments — (4.0 ) — — (4.0 ) Depreciation and amortization — 8.2 0.5 — 8.7 Selling, general, administrative, research and development: Selling, general, administrative, research and development 0.8 23.6 2.2 (0.5 ) 26.1 Net periodic postretirement benefit cost relating to Salaried VEBA — 0.8 — — 0.8 Gain on removal of Union VEBA net assets — (0.1 ) — — (0.1 ) Total selling, general, administrative, research and development 0.8 24.3 2.2 (0.5 ) 26.8 Total costs and expenses 0.8 290.5 25.8 (18.7 ) 298.4 Operating (loss) income (0.8 ) 45.2 0.6 (0.2 ) 44.8 Other (expense) income: Interest expense (4.3 ) 0.6 — — (3.7 ) Other (expense) income, net — 0.3 — — 0.3 Income (loss) before income taxes (5.1 ) 46.1 0.6 (0.2 ) 41.4 Income tax (provision) benefit — (16.9 ) (0.2 ) 2.0 (15.1 ) Earnings (loss) in equity of subsidiaries 31.4 0.3 — (31.7 ) — Net income (loss) $ 26.3 $ 29.5 $ 0.4 $ (29.9 ) $ 26.3 Comprehensive income $ 27.2 $ 30.3 $ 0.5 $ (30.8 ) $ 27.2 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME (In millions of dollars) Quarter Ended March 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 363.4 $ 34.7 $ (26.4 ) $ 371.7 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 296.4 31.6 (25.7 ) 302.3 Unrealized loss on derivative instruments — 4.5 — — 4.5 Depreciation and amortization — 7.7 0.3 — 8.0 Selling, general, administrative, research and development: Selling, general, administrative, research and development 1.0 20.7 1.6 (0.6 ) 22.7 Net periodic postretirement benefit cost relating to Salaried VEBA — 0.6 — — 0.6 Loss on removal of Union VEBA net assets — 492.2 — — 492.2 Total selling, general, administrative, research and development 1.0 513.5 1.6 (0.6 ) 515.5 Total costs and expenses 1.0 822.1 33.5 (26.3 ) 830.3 Operating (loss) income (1.0 ) (458.7 ) 1.2 (0.1 ) (458.6 ) Other (expense) income: Interest expense (9.5 ) (0.5 ) — 0.2 (9.8 ) Other (expense) income, net — 0.5 0.1 (0.2 ) 0.4 (Loss) income before income taxes (10.5 ) (458.7 ) 1.3 (0.1 ) (468.0 ) Income tax benefit — 171.9 — 3.9 175.8 (Loss) earnings in equity of subsidiaries (281.7 ) 1.1 — 280.6 — Net (loss) income $ (292.2 ) $ (285.7 ) $ 1.3 $ 284.4 $ (292.2 ) Comprehensive (loss) income $ (225.3 ) $ (218.9 ) $ 1.4 $ 217.5 $ (225.3 ) CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Three Months Ended March 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by operating activities 1 $ 17.2 $ 201.4 $ 2.7 $ (200.0 ) $ 21.3 Cash flows from investing activities: Capital expenditures — (25.3 ) (0.6 ) — (25.9 ) Proceeds from disposition of available for sale securities — 20.0 — — 20.0 Net cash used in investing activities — (5.3 ) (0.6 ) — (5.9 ) Cash flows from financing activities: Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (2.7 ) — — — (2.7 ) Repurchase of common stock (6.3 ) — — — (6.3 ) Cash dividends paid to stockholders (8.2 ) — — — (8.2 ) Cash dividends paid to Parent — (200.0 ) — 200.0 — Intercompany loan — 0.8 (0.8 ) — — Net cash (used in) provided by financing activities (17.2 ) (199.2 ) (0.8 ) 200.0 (17.2 ) Net (decrease) increase in cash and cash equivalents during the period — (3.1 ) 1.3 — (1.8 ) Cash and cash equivalents at beginning of period — 72.2 0.3 — 72.5 Cash and cash equivalents at end of period $ — $ 69.1 $ 1.6 $ — $ 70.7 ________________ 1 The Guarantor Subsidiaries’ Net cash provided by operating activities reflects a decrease in current Intercompany receivables from the Parent and an increase in current Intercompany payable to the Parent related to the $200.0 million dividend made by the Guarantor Subsidiaries to the Parent. The dividend to the Parent and intercompany activity is eliminated within the consolidating adjustments. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Three Months Ended March 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 37.8 $ (32.7 ) $ 2.3 $ — $ 7.4 Cash flows from investing activities: Capital expenditures — (6.7 ) (4.6 ) — (11.3 ) Proceeds from disposition of available for sale securities — 84.0 — — 84.0 Net cash provided by (used in) investing activities — 77.3 (4.6 ) — 72.7 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 — 1.0 — — 1.0 Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (2.5 ) — — — (2.5 ) Repurchase of common stock (28.2 ) — — — (28.2 ) Cash dividend paid to stockholders (7.1 ) — — — (7.1 ) Intercompany loan — (1.9 ) 1.9 — — Net cash (used in) provided by financing activities (37.8 ) (1.0 ) 1.9 — (36.9 ) Net increase (decrease) in cash and cash equivalents during the period — 43.6 (0.4 ) — 43.2 Cash and cash equivalents at beginning of period — 175.3 2.4 — 177.7 Cash and cash equivalents at end of period $ — $ 218.9 $ 2.0 $ — $ 220.9 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Tax Asset Protection Rights Agreement . On April 7, 2016 our Board of Directors adopted a Tax Asset Protection Rights Plan ("Rights Plan") designed to preserve our ability to utilize without limitation our net operating loss carryforwards and other significant tax attributes to offset future taxable income. The Rights Plan was adopted because certain stock transfer restrictions designed to preserve our tax benefits currently contained in our certificate of incorporation are scheduled to expire on July 6, 2016. At our 2016 Annual Meeting of Stockholders, we intend to seek stockholder approval of the Rights Plan, as well as stockholder approval of an amendment to our certificate of incorporation that would implement stock transfer restrictions to replace those that are expiring. Preferred Stock. In connection with the Rights Plan, our Board of Directors declared a dividend, payable April 22, 2016, of a right (a "Right") to purchase one Series A Junior Participating Preferred Stock (the "Series A Preferred") for each outstanding share of our common stock, par value $0.01 per share. The number of shares constituting Series A Preferred, par value $0.01 per share, is 900,000 . If the Rights become exercisable, each Right would allow its holder to purchase one one-hundredth of a share of our Series A Preferred for a purchase price of $400.00 . Each fractional share of Series A Preferred Stock would give the stockholder approximately the same dividend, voting and liquidation rights as does one share of common stock. Prior to exercise, however, a Right does not give its holder any dividend, voting or liquidation rights. The Rights will not be exercisable until the earlier of: (i) 10 days after a public announcement by us that a person or group has become an acquiring person and (ii) 10 business days (or a later date determined by our board of directors) after a person or group begins a tender or exchange offer that, if completed, would result in that person or group becoming an acquiring Person. Until the date that the Rights become exercisable (the "Distribution Date"), common stock certificates will also evidence the Rights and will contain a notation to that effect. Any transfer of shares of common stock prior to the Distribution Date will constitute a transfer of the associated Rights. After the Distribution Date, the Rights will separate from the common stock and be evidenced by Right certificates, which we will mail to all holders of Rights that have not become void. After the Distribution Date, if a person or group already is or becomes an acquiring person, all holders of Rights, except the acquiring person, may exercise their Rights upon payment of the purchase price to purchase shares of common stock (or other securities or assets as determined by the Board of Directors) with a market value of two times the purchase price (a "Flip-in Event"). After the Distribution Date, if a Flip-in Event has already occurred and we are acquired in a merger or similar transaction, all holders of Rights except the acquiring person may exercise their Rights upon payment of the purchase price, to purchase shares of the acquiring or other appropriate entity with a market value of two times the purchase price of the Rights. Rights may be exercised to purchase Series A Preferred only after the Distribution Date occurs and prior to the occurrence of a Flip-in Event as described above. A Distribution Date resulting from the commencement of a tender offer or exchange offer as described in (ii) above could precede the occurrence of a Flip-in Event, in which case the Rights could be exercised to purchase Series A Preferred. A Distribution Date resulting from any occurrence described in (i) above would necessarily follow the occurrence of a Flip-in Event, in which case the Rights could be exercised to purchase shares of our common stock (or other securities or assets) as described above. Additional information regarding the Rights Plan is contained in the Current Report on Form 8-K and in the Registration Statement on Form 8-A, both filed by the Company with the SEC on April 8, 2016. Dividend Declaration . On April 15, 2016 , we announced that our Board of Directors declared a cash dividend of $0.45 per common share or approximately $8.1 million (including dividend equivalents), which will be paid on or about May 13, 2016 to stockholders of record at the close of business on April 25, 2016 . |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 11 for additional information regarding our reportable segment and business unit. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation. The accompanying unaudited consolidated financial statements include the accounts of our wholly owned subsidiaries and are prepared in accordance with United States generally accepted accounting principles ("GAAP") and the rules and regulations of the Securities and Exchange Commission ("SEC") applicable for interim periods and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In management's opinion, all adjustments (which include normal recurring adjustments) considered necessary for a fair presentation have been included. The results of operations for our interim periods are not necessarily indicative of the results of operations that may be achieved for the entire 2016 fiscal year. The financial information as of December 31, 2015 is derived from our audited consolidated financial statements and footnotes for the year ended December 31, 2015 included in our Annual Report on Form 10-K. See New Accounting Pronouncements below for a discussion of new accounting pronouncements we adopted during the quarter ended March 31, 2016 requiring cumulative-effect adjustments that impacted our consolidated financial statements and footnotes for the year ended December 31, 2015. |
Use of Estimates in the Preparation of Financial Statements | Use of Estimates in the Preparation of Financial Statements. The preparation of financial statements in accordance with GAAP requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of our consolidated financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions, which could have a material effect on the reported amounts of our consolidated financial position and results of operations. |
Inventories | Inventories. Inventories are stated at the lower of cost or market value. On March 31, 2016 , we recorded an inventory write-down of $4.9 million to reflect the net realizable value as of that date. The net realizable value reflected commitments as of that date from customers to purchase our inventory at prices that exceeded the Midwest Transaction Price ("Midwest Price"), which reflects the primary aluminum supply/demand dynamics in North America, reduced by an approximate normal profit margin. If we encounter a further 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 March 31, 2016 , after adjusting for the inventory write down discussed above, the stated LIFO value of the inventory represented its net realizable value (less a normal profit margin) and exceeded the current cost of our inventory by $17.7 million . Additionally, during the quarter ended March 31, 2016 , we decremented a prior year, higher cost LIFO layer, which resulted in an insignificant charge. The excess of current cost over the stated LIFO value of inventory at December 31, 2015 was $24.1 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 March 31, 2016 and December 31, 2015 were included in the Fabricated Products segment (see Note 2 for the components of inventories). |
Property, Plant and Equipment - Net | Property, Plant and Equipment – Net. Property, plant and equipment is recorded at cost (see Note 2 ). Construction in progress is included within Property, plant and equipment – net on the Consolidated Balance Sheets. Interest related to the construction of qualifying assets is capitalized as part of the construction costs. The aggregate amount of interest capitalized is limited to the interest expense incurred in the period. The amount of interest expense capitalized as construction in progress was $0.9 million and $0.3 million during the quarters ended March 31, 2016 and March 31, 2015 , respectively. Depreciation is computed using the straight-line method at rates based on the estimated useful lives of the various classes of assets. Capital lease assets and leasehold improvements are depreciated on a straight-line basis over the shorter of the estimated useful lives of the assets or the lease term. Depreciation expense is not included in Cost of products sold, excluding depreciation and amortization and other items, but is included in Depreciation and amortization on the Statements of Consolidated Income (Loss). For the quarters ended March 31, 2016 and March 31, 2015 , we recorded depreciation expense of $8.2 million and $7.5 million , respectively, relating to our operating facilities in the Fabricated Products segment. An immaterial amount of depreciation expense was also recorded within All Other for all periods presented in this Report. We classify assets as held for sale only when an asset is being actively marketed and expected to sell within 12 months. Assets held for sale are initially measured at the lesser of the assets' carrying amount and the fair value less costs to sell. |
Derivatives, Policy [Policy Text Block] | Foreign Currency Risk Management. From time to time, we enter into foreign currency forward contracts to protect the value of anticipated foreign currency expenses associated 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 income 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 income (loss) immediately. If a forecasted equipment purchase was no longer probable to occur, amounts previously deferred in Accumulated other comprehensive income (loss) would be recognized immediately in Net income (loss). See Note 8 for additional information. We are exposed to counterparty credit risk on all of our derivative instruments. Accordingly, we have established and maintained strict counterparty credit guidelines and entered into hedges only with major financial institutions that are investment grade or better. We do not have significant exposure to any one counterparty and management believes the risk of loss is remote and in any event would not be material. Additionally, we do not require collateral under these agreements. |
New Accounting Pronouncements | New Accounting Pronouncements. Accounting Standards Update ("ASU") No. 2015-03, Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs ("ASU 2015-03"), was issued in April 2015. ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in an entity's balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, instead of being presented as a deferred charge in the balance sheet. The recognition and measurement guidance for debt issuance costs is not affected by ASU 2015-03. During the quarter ended March 31, 2016 , we retrospectively adopted ASU 2015-03, which resulted in a reclassification of $3.2 million of debt issuance costs related to our Senior Notes (as defined in Note 3) from Other assets to Long-term debt as of December 31, 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 in August 2015 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 2015-15. Our adoption of this ASU in the first quarter of 2016 did not 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. Our retrospective adoption of this ASU in the first quarter of 2016 did not 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. During the quarter ended March 31, 2016, we early adopted this ASU on a prospective basis. As such, prior periods were not retrospectively adjusted. ASU No. 2016-02, Leases (Topic 842): Amendments to the Financial Accounting Standards Board Accounting Standards Codification ("ASU 2016-02"), was issued in February 2016. Under ASU 2016-02, lessees will need to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). For income statement purposes, a dual model was retained, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense (similar to current operating leases) while finance leases will result in a front-loaded expense pattern (similar to current capital leases). ASU 2016-02 becomes effective for us in the first quarter of 2019. We are currently evaluating whether to early adopt the standard and what impact it will have on our consolidated financial statements, which we expect will be material. ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), was issued in March 2016. ASU 2016-09 eliminates additional paid in capital ("APIC") pools and requires excess tax benefits and tax deficiencies to be recorded in the income statement when the awards vest or are settled. The accounting for an employee's use of shares to satisfy the employer's statutory income tax withholding obligation and the accounting for forfeitures is also changing. ASU 2016-09 becomes effective for us in the first quarter of 2017. We early adopted ASU 2016-09 during the quarter ended March 31, 2016. See Note 4 and Note 6 for a discussion on the impact of our adoption of ASU 2016-09. |
Supplemental Balance Sheet In26
Supplemental Balance Sheet Information Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Balance Sheet Disclosures | March 31, 2016 December 31, 2015 (In millions of dollars) Cash and Cash Equivalents Cash and money market funds $ 34.5 $ 40.3 Commercial paper 36.2 32.2 Total $ 70.7 $ 72.5 Trade Receivables – Net Billed trade receivables $ 139.4 $ 116.8 Unbilled trade receivables 0.2 0.7 Trade receivables, gross 139.6 117.5 Allowance for doubtful receivables (0.8 ) (0.8 ) Trade receivables – net $ 138.8 $ 116.7 Inventories Finished products $ 66.8 $ 79.5 Work-in-process 73.4 63.6 March 31, 2016 December 31, 2015 (In millions of dollars) Raw materials 46.7 53.4 Operating supplies and repair and maintenance parts 23.7 23.1 Total $ 210.6 $ 219.6 Prepaid Expenses and Other Current Assets Current derivative assets – Notes 8 and 9 $ 1.4 $ 1.5 Current deferred tax assets 1 — 49.6 Prepaid taxes 3.3 — Prepaid insurance 1.1 1.9 Short-term restricted cash 0.3 0.3 Other 3.0 3.4 Total $ 9.1 $ 56.7 Property, Plant and Equipment – Net Land and improvements $ 22.7 $ 22.7 Buildings and leasehold improvements 72.5 71.8 Machinery and equipment 559.3 549.0 Construction in progress 54.8 48.5 Property, plant and equipment – gross 709.3 692.0 Accumulated depreciation (205.1 ) (196.9 ) Assets held for sale 0.3 0.3 Property, plant and equipment – net $ 504.5 $ 495.4 Other Assets Restricted cash $ 10.9 $ 10.9 Deferred financing costs on Revolving Credit Facility 1.1 1.3 Deferred compensation plan assets 7.3 7.3 Derivative assets – Notes 8 and 9 0.2 0.1 Total $ 19.5 $ 19.6 Other Accrued Liabilities Current derivative liabilities – Notes 8 and 9 $ 10.3 $ 14.1 Uncleared cash disbursements 10.0 8.0 Accrued income taxes and taxes payable 8.6 3.1 Accrued annual contribution to VEBAs — 19.6 Accrued contingent contribution to Union VEBA – Note 5 17.1 — Short-term environmental accrual – Note 7 1.3 1.6 Accrued interest 5.5 1.5 Short-term deferred revenue 0.8 1.2 Other 2.9 3.6 Total $ 56.5 $ 52.7 March 31, 2016 December 31, 2015 (In millions of dollars) Long-Term Liabilities Derivative liabilities – Notes 8 and 9 $ 1.7 $ 2.1 Income tax liabilities 0.8 0.7 Workers' compensation accruals 24.1 21.7 Long-term environmental accrual – Note 7 16.8 17.0 Long-term asset retirement obligations 4.9 4.8 Deferred compensation liability 7.8 7.7 Long-term deferred revenue 0.3 0.3 Long-term capital leases 0.1 0.1 Long-term portion of contingent contribution to Union VEBA – Note 5 12.8 29.9 Other long-term liabilities 3.2 3.2 Total $ 72.5 $ 87.5 |
Income Tax Matters (Tables)
Income Tax Matters (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Tax Provision | The provision for (benefit from) incomes taxes for each period presented consisted of the following (in millions of dollars): Quarter Ended March 31, 2016 2015 Domestic $ 14.9 $ (175.8 ) Foreign 0.2 — Total $ 15.1 $ (175.8 ) |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of (Income) Charges Related to Benefit Plans | The following table presents the components of net periodic benefit cost for the Salaried VEBA and charges relating to all other employee benefit plans for the periods presented (in millions of dollars): Quarter Ended March 31, 2016 2015 Salaried VEBA: Service cost 1 $ — $ — Interest cost 0.7 0.7 Expected return on plan assets (1.0 ) (1.1 ) Amortization of prior service cost 1.0 0.7 Amortization of net actuarial loss 0.1 0.3 Total net periodic postretirement benefit cost relating to Salaried VEBA 0.8 0.6 (Gain) loss on removal of Union VEBA net assets (0.1 ) 492.2 Other employee benefit plans: Deferred compensation plan 0.1 0.4 Defined contribution plans 4.0 4.0 Multiemployer pension plans 1.1 0.9 Total other employee benefit plans $ 5.2 $ 5.3 Total $ 5.9 $ 498.1 ____________ 1 The service cost was insignificant for all periods presented. The following table presents the allocation of the charges (income) detailed above, by reportable segment and business unit (in millions of dollars – see Note 11 ): Quarter Ended March 31, 2016 2015 Fabricated Products $ 4.7 $ 4.6 All Other 1.2 493.5 Total $ 5.9 $ 498.1 |
Employee Incentive Plans (Table
Employee Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Compensation expense relating to short term incentive plans | recorded within Accrued salaries, wages and related expenses for estimated probable future payments relating to the first quarter performance period of our 2016 STI Plans. |
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): Quarter Ended March 31, 2016 2015 Non-vested common shares and restricted stock units $ 1.1 $ 1.1 EVA-Based Performance Shares 0.3 0.4 TSR-Based Performance Shares 1.1 0.6 CP-Based Performance Shares $ 0.1 $ — Total non-cash compensation expense $ 2.6 $ 2.1 The following table presents the allocation of the charges detailed above, by segment (in millions of dollars): Quarter Ended March 31, 2016 2015 Fabricated Products $ 0.8 $ 0.7 All Other 1.8 1.4 Total non-cash compensation expense $ 2.6 $ 2.1 |
Unrecognized gross compensation cost data | The following table presents unrecognized gross compensation cost data by type of award as of March 31, 2016 : Unrecognized gross compensation costs (in millions of dollars) Expected period (in years) over which the remaining gross compensation costs will be recognized Non-vested common shares and restricted stock units $ 8.3 2.3 CP-Based Performance Shares $ 4.7 2.9 TSR-Based Performance Shares $ 10.5 2.2 |
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, CP-Based Performance Shares and TSR-Based Performance Shares for the quarter ended March 31, 2016 is as follows: Non-Vested Common Shares Restricted Stock Units EVA-Based Performance Shares CP-Based Performance Shares TSR-Based Performance Shares Shares Weighted-Average Grant-Date Fair Value per Share Units Weighted-Average Grant-Date Fair Value per Unit Shares Weighted-Average Grant-Date Fair Value per Share Shares Weighted-Average Shares Weighted-Average Outstanding at December 31, 2015 156,553 $ 67.20 5,521 $ 66.64 155,105 $ 57.76 — $ — 299,877 $ 89.43 Granted 1 — — 52,705 74.49 — — 63,983 80.46 95,974 93.02 Vested (38,812 ) 60.75 (1,762 ) 63.18 (49,611 ) 57.76 — — — — Forfeited 1 (172 ) 68.99 (165 ) 74.49 — — (164 ) 80.46 (1,115 ) 90.06 Canceled 1 — — — — (105,494 ) 57.76 — — — — Outstanding at March 31, 2016 117,569 $ 69.33 56,299 $ 74.07 — $ — 63,819 $ 80.46 394,736 $ 90.30 ____________ 1 For EVA-Based Performance Shares, CP-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 | The weighted-average grant-date fair value per share for shares granted by type of award was as follows for each period presented: Quarter Ended March 31, 2016 2015 Non-vested common shares $ — $ 69.83 Restricted stock units $ 74.49 $ 69.83 CP-Based Performance Shares $ 80.46 $ — TSR-Based Performance Shares $ 93.02 $ 95.68 |
Derivative Financial Instrume30
Derivative Financial Instruments and Related Hedging Programs (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of realized and unrealized gains and losses | Realized and unrealized (losses) gains associated with all derivative contracts consisted of the following for each period presented (in millions of dollars): Quarter Ended March 31, 2016 2015 Included in Other Comprehensive Income (Loss): Unrealized gain: Foreign Currency $ 0.2 $ — Included in Statements of Consolidated Income (Loss): Realized loss 1 : Aluminum (2.7 ) (2.7 ) Natural Gas (1.7 ) (1.3 ) Electricity — (0.7 ) Total realized loss $ (4.4 ) $ (4.7 ) Unrealized gain (loss) 2 : Non-designated hedges of operational risk: Aluminum $ 3.2 $ (4.2 ) Natural Gas 0.8 (0.7 ) Electricity — 0.4 Total non-designated hedges of operational risk 4.0 (4.5 ) Option Assets relating to the Convertible Notes 3 — 10.2 Bifurcated Conversion Feature of the Convertible Notes 3 — (10.2 ) Total unrealized gain (loss) $ 4.0 $ (4.5 ) ______________________ 1 Realized loss on hedges of operational risk are recorded within Cost of products sold, excluding depreciation, amortization and other items. 2 Unrealized gain (loss) on hedges of operational risk are recorded within Unrealized (gain) loss on derivative instruments. 3 Unrealized gain (loss) on financial derivatives related to our 4.5% unsecured cash convertible senior notes ("Convertible Notes"), which settled in April 2015. |
Summary of material derivative positions | The following table summarizes our material derivative positions at March 31, 2016 : Aluminum Maturity Period (month/year) Notional Amount of contracts (mmlbs) Call option purchase contracts 4/16 through 6/16 2.0 Fixed price purchase contracts 4/16 through 12/17 128.4 Fixed price sales contracts 4/16 through 12/17 2.2 Midwest premium swap contracts 1 4/16 through 12/17 92.0 Natural Gas 2 Maturity Period (month/year) Notional Amount of contracts (mmbtu) Fixed price purchase contracts 4/16 through 12/18 7,070,000 Euro Maturity Period (month/year) Notional Amount of contracts (euro) Fixed price purchase contracts 5/16 through 8/17 3,950,374 ______________________ 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 March 31, 2016 , we had derivative and/or physical delivery commitments with energy companies in place to cover exposure to fluctuations in prices for approximately 79% , 73% and 72% of the expected natural gas purchases for the remainder of 2016 , 2017 and 2018 respectively. |
Summary of offsetting derivative assets 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 Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Counterparty (with netting agreements) $ 1.3 $ — $ 1.3 $ 1.3 $ — $ — Counterparty (with partial netting agreements) 0.3 — 0.3 0.3 — — Total $ 1.6 $ — $ 1.6 $ 1.6 $ — $ — The following tables present offsetting information regarding our derivatives by type of counterparty as of March 31, 2016 (in millions of dollars): Derivative Assets and Collateral Held by Counterparty Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Assets Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Assets Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Received Net Amount Counterparty (with netting agreements) $ 1.0 $ — $ 1.0 $ 1.0 $ — $ — Counterparty (with partial netting agreements) 0.6 — 0.6 0.6 $ — $ — Total $ 1.6 $ — $ 1.6 $ 1.6 $ — $ — |
Summary of offsetting derivative liabilities by counterparty | Derivative Liabilities and Collateral Held by Counterparty Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Counterparty (with netting agreements) $ (8.5 ) $ — $ (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 ) Derivative Liabilities and Collateral Held by Counterparty Gross Amounts Not Offset in the Consolidated Balance Sheets Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Consolidated Balance Sheets Net Amounts of Liabilities Presented in the Consolidated Balance Sheets Financial Instruments Cash Collateral Pledged Net Amount Counterparty (with netting agreements) $ (6.3 ) $ — $ (6.3 ) $ (1.0 ) $ — $ (5.3 ) Counterparty (with partial netting agreements) (5.7 ) — (5.7 ) (0.6 ) — (5.1 ) Total $ (12.0 ) $ — $ (12.0 ) $ (1.6 ) $ — $ (10.4 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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): March 31, 2016 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 — 0.8 — 0.8 Midwest premium swap contracts — — 0.5 0.5 Natural Gas - Fixed priced purchase contracts — 0.1 — 0.1 All Other Financial Assets: Cash and cash equivalents 34.5 36.2 — 70.7 Short-term investments — 10.0 — 10.0 Deferred compensation plan assets — 7.3 — 7.3 Total assets $ 34.5 $ 54.6 $ 0.5 $ 89.6 FINANCIAL LIABILITIES: Derivative Instruments (Non-Designated Hedges): Aluminum – Fixed price purchase contracts $ — $ (5.6 ) $ — $ (5.6 ) Midwest premium swap contracts — — (0.3 ) (0.3 ) Natural Gas – Fixed price purchase contracts — (6.1 ) — (6.1 ) All Other Financial Liabilities: Senior Notes (205.7 ) — — (205.7 ) Total liabilities $ (205.7 ) $ (11.7 ) $ (0.3 ) $ (217.7 ) 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 All Other Financial Assets: Cash and cash equivalents 40.3 32.2 — 72.5 Short-term investments — 30.0 — 30.0 Deferred compensation plan assets — 7.3 — 7.3 Total assets $ 40.3 $ 70.2 $ 0.9 $ 111.4 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 ) |
Schedule of quantitative information for Level 3 Midwest premiums derivative contracts | quantitative information for Level 3 Midwest premium derivative contracts: Fair Value at March 31, 2016 (in millions of dollars) Valuation technique Unobservable input Settlement Period Range ($ in unit price) Assets: Midwest premium contracts $ 0.5 Discounted fair value Forward price curve Apr-16 through Dec-17 $0.083 per metric ton to $0.084 per metric ton Liabilities: Midwest premium contracts $ (0.3 ) Discounted fair value Forward price curve Apr-16 through Jun-17 $0.083 per metric ton to $0.084 per metric ton |
Reconciliation of activity for financial instruments classified as Level 3 | The following table presents a reconciliation of activity for the Midwest premium derivative contracts on a net basis (in millions of dollars): Level 3 Fair value measurement at December 31, 2015 $ 0.6 Total realized/unrealized (loss) included in: Cost of goods sold excluding depreciation and amortization and other items and Unrealized loss on derivative instruments — Transactions involving Level 3 derivative contracts: Purchases (0.1 ) Sales — Issuances — Settlements (0.3 ) Transactions involving Level 3 derivatives – net (0.4 ) Transfers in and/or out of Level 3 valuation hierarchy — Fair value measurement at March 31, 2016 $ 0.2 Total gain included in Unrealized (gain) loss on derivative instruments, attributable to the change in unrealized gain/loss relating to derivative contracts held at March 31, 2016: $ (0.1 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted earnings per share | Basic and diluted net income (loss) per share were calculated as follows, for each period presented (in millions of dollars, except share and per share amounts): Quarter Ended March 31, 2016 2015 Numerator: Net income (loss) $ 26.3 $ (292.2 ) Denominator – Weighted-average common shares outstanding (in thousands): Basic 1 17,864 17,344 Add: dilutive effect of non-vested common shares, restricted stock units and performance shares 336 — Diluted 2 18,200 17,344 Net income (loss) per common share, Basic: $ 1.47 $ (16.85 ) Net income (loss) per common share, Diluted: $ 1.44 $ (16.85 ) ______________________ 1 The basic weighted-average number of common shares outstanding during the periods presented excludes non-vested common shares, restricted stock units and performance shares. 2 The diluted weighted-average number of common shares outstanding during the periods presented was calculated using the treasury method. |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following securities were excluded from the weighted-average diluted shares computation for the quarters ended March 31, 2016 and March 31, 2015 as their inclusion would have been anti-dilutive (in thousands of shares): Quarter Ended March 31, 2016 2015 Options to purchase common shares 17 17 Non-vested common shares, restricted stock units and performance shares 33 187 Warrants 1 — 636 Total excluded 50 840 ______________________ 1 Net-share-settled warrants ("Warrants") relating to approximately 3.7 million notional common shares of our common stock were outstanding at March 31, 2015 at an exercise price of approximately $60.57 per share, and were settled during a period from July 1, 2015 through December 18, 2015. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Summary of financial information by operating segment | Quarter Ended March 31, 2016 2015 Net sales: Fabricated Products $ 343.2 $ 371.7 Segment operating income (loss): Fabricated Products 1 $ 57.9 $ 44.9 All Other 2 (13.1 ) (503.5 ) Total operating income (loss) $ 44.8 $ (458.6 ) Interest expense (3.7 ) (9.8 ) Other income, net 0.3 0.4 Income (loss) before income taxes $ 41.4 $ (468.0 ) Depreciation and amortization: Fabricated Products $ 8.6 $ 7.9 All Other 0.1 0.1 Total depreciation and amortization $ 8.7 $ 8.0 Capital expenditures: Fabricated Products $ 25.8 $ 11.2 All Other 0.1 0.1 Total capital expenditures $ 25.9 $ 11.3 _____________________ 1 Fabricated Products segment operating income included non-cash mark-to-market gain (loss) on primary aluminum, natural gas, electricity and foreign currency hedging activities, which totaled $4.0 million and $(4.5) million for the quarters ended March 31, 2016 and March 31, 2015 , respectively. For further discussion regarding mark-to-market matters, see Note 8 . 2 Operating loss in All Other included Net periodic postretirement benefit cost of $0.8 million and $0.6 million for the quarters ended March 31, 2016 and March 31, 2015 , respectively. Additionally, operating loss in All Other included (gain) loss on removal of Union VEBA net assets of $(0.1) million and $492.2 million for the quarters ended March 31, 2016 and March 31, 2015 , respectively. See Note 5 for further details. March 31, 2016 December 31, 2015 Assets: Fabricated Products $ 932.5 $ 904.7 All Other 1 304.1 342.9 Total assets $ 1,236.6 $ 1,247.6 _____________________ 1 Assets in All Other represent primarily all of our cash and cash equivalents, short-term investments, financial derivative assets (see Note 9 ) and net deferred income tax assets. |
Schedule of net sales by end market segment applications | Net sales by product categories based on end market applications for the Fabricated Products segment were as follows (in millions of dollars): Quarter Ended March 31, 2016 2015 Net sales: Aero/HS products $ 176.9 $ 180.3 Automotive Extrusions 48.4 50.1 GE products 105.4 119.1 Other products 12.5 22.2 Total net sales $ 343.2 $ 371.7 |
Schedule of income taxes paid by geographical area | Geographic information for income taxes paid were as follows (in millions of dollars): Quarter Ended March 31, 2016 2015 Income taxes paid: Fabricated Products – United States $ 0.1 $ 0.1 Canada 0.2 0.9 Total income taxes paid $ 0.3 $ 1.0 |
Schedule of information for contractual delivery of primary aluminum supply from major suppliers | Information for delivery of our primary aluminum supply from our major suppliers were as follows: Quarter Ended March 31, 2016 2015 Percentage of total primary aluminum supply (lbs): Supply from the Company's top five major suppliers 83 % 75 % Supply from the Company's largest supplier 30 % 29 % Supply from the Company's second and third largest suppliers 35 % 29 % |
Supplemental Cash Flow Inform34
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Three Months Ended March 31, 2016 2015 (In millions of dollars) Interest paid $ 0.3 $ 0.1 Non-cash investing and financing activities: Stock repurchases not yet settled (accrued in accounts payable) $ 0.1 $ 1.8 Unpaid purchases of property and equipment $ 2.0 $ 1.3 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other income, net consisted of the following for each period presented (in millions of dollars): Quarter Ended March 31, 2016 2015 Interest income $ 0.1 $ 0.2 Realized gain on investments — 0.3 All other income (expense), net 0.2 (0.1 ) Other income, net $ 0.3 $ 0.4 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive Income | The following table presents the tax effect allocated to each component of other comprehensive income for each period presented (in millions of dollars): Before-Tax Income Tax Net-of-Tax Amount (Expense) Benefit 3 Amount Quarter Ended March 31, 2016 Salaried VEBA : Reclassification adjustments: Amortization of net actuarial loss 1 $ 0.1 $ — $ 0.1 Amortization of prior service cost 1 1.0 (0.4 ) 0.6 Other comprehensive income relating to Salaried VEBA 1.1 (0.4 ) 0.7 Foreign currency translation gain on Canadian pension plan 0.1 — 0.1 Unrealized gain on foreign currency cash flow hedges 0.2 (0.1 ) 0.1 Other comprehensive income $ 1.4 $ (0.5 ) $ 0.9 Quarter Ended March 31, 2015 VEBAs: Reclassification adjustments: Amortization of net actuarial loss 1 $ 0.3 $ (0.1 ) $ 0.2 Amortization of prior service cost 1 0.7 (0.3 ) 0.4 Removal of obligation relating to Union VEBA 106.6 (40.4 ) 66.2 Other comprehensive income relating to VEBAs 107.6 (40.8 ) 66.8 Available for sale securities: Reclassification of unrealized loss upon sale of available for sale securities 2 0.1 (0.1 ) — Other comprehensive income relating to available for sale securities 0.1 (0.1 ) — Foreign currency translation gain 0.1 — 0.1 Other comprehensive income $ 107.8 $ (40.9 ) $ 66.9 ________________ 1 Amounts reclassified out of Accumulated other comprehensive loss relating to Salaried VEBA adjustments were included as a component of Net periodic postretirement benefit cost relating to the Salaried VEBA. 2 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. 3 Income tax amounts reclassified out of Accumulated other comprehensive loss were included as a component of Income tax (provision) benefit. |
Guarantor and Non-Guarantor F37
Guarantor and Non-Guarantor Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Guarantor and Non-Guarantor Financial Statement [Abstract] | |
Schedule of Condensed Financial Statements | CONDENSED CONSOLIDATING BALANCE SHEET (In millions of dollars) March 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated ASSETS Current assets: Cash and cash equivalents $ — $ 69.1 $ 1.6 $ — $ 70.7 Short-term investments — 10.0 — — 10.0 Receivables: Trade receivables – net — 134.0 4.8 — 138.8 Intercompany receivables 93.6 23.1 1.3 (118.0 ) — Other — 5.9 2.7 — 8.6 Inventories — 208.3 5.8 (3.5 ) 210.6 Prepaid expenses and other current assets 0.1 8.5 0.8 (0.3 ) 9.1 Total current assets 93.7 458.9 17.0 (121.8 ) 447.8 Investments in and advances to subsidiaries 912.8 32.0 — (944.8 ) — Property, plant and equipment – net — 473.1 31.4 — 504.5 Long-term intercompany receivables — — 3.9 (3.9 ) — Deferred tax assets – net — 190.5 — 7.0 197.5 Intangible assets – net — 30.1 — — 30.1 Goodwill — 37.2 — — 37.2 Other assets — 19.4 0.1 — 19.5 Total $ 1,006.5 $ 1,241.2 $ 52.4 $ (1,063.5 ) $ 1,236.6 LIABILITIES AND STOCKHOLDERS ' EQUITY Current liabilities: Accounts payable $ 0.6 $ 64.6 $ 5.0 $ — $ 70.2 Intercompany payable 17.9 99.3 4.5 (121.7 ) — Accrued salaries, wages and related expenses — 32.4 1.5 — 33.9 Other accrued liabilities 5.4 51.3 0.2 (0.4 ) 56.5 Short-term capital leases — 0.1 — — 0.1 Total current liabilities 23.9 247.7 11.2 (122.1 ) 160.7 Net liabilities of Salaried VEBA — 18.7 — — 18.7 Deferred tax liabilities — — 2.1 — 2.1 Long-term intercompany payable — 3.9 — (3.9 ) — Long-term liabilities — 66.2 6.3 — 72.5 Long-term debt 194.8 — — — 194.8 Total liabilities 218.7 336.5 19.6 (126.0 ) 448.8 Total stockholders' equity 787.8 904.7 32.8 (937.5 ) 787.8 Total $ 1,006.5 $ 1,241.2 $ 52.4 $ (1,063.5 ) $ 1,236.6 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 — 156.3 — 7.0 163.3 Intangible assets – net — 30.5 — — 30.5 Goodwill — 37.2 — — 37.2 Other assets — 19.5 0.1 — 19.6 Total $ 1,077.4 $ 1,342.9 $ 49.0 $ (1,221.7 ) $ 1,247.6 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 leases — 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 194.6 — — — 194.6 Total liabilities 303.0 282.5 16.8 (129.8 ) 472.5 Total stockholders' equity 774.4 1,060.4 32.2 (1,091.9 ) 775.1 Total $ 1,077.4 $ 1,342.9 $ 49.0 $ (1,221.7 ) $ 1,247.6 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (LOSS) (In millions of dollars) Quarter Ended March 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 335.7 $ 26.4 $ (18.9 ) $ 343.2 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 257.1 23.1 (18.2 ) 262.0 Lower of cost or market inventory write-down — 4.9 — — 4.9 Unrealized gain on derivative instruments — (4.0 ) — — (4.0 ) Depreciation and amortization — 8.2 0.5 — 8.7 Selling, general, administrative, research and development: Selling, general, administrative, research and development 0.8 23.6 2.2 (0.5 ) 26.1 Net periodic postretirement benefit cost relating to Salaried VEBA — 0.8 — — 0.8 Gain on removal of Union VEBA net assets — (0.1 ) — — (0.1 ) Total selling, general, administrative, research and development 0.8 24.3 2.2 (0.5 ) 26.8 Total costs and expenses 0.8 290.5 25.8 (18.7 ) 298.4 Operating (loss) income (0.8 ) 45.2 0.6 (0.2 ) 44.8 Other (expense) income: Interest expense (4.3 ) 0.6 — — (3.7 ) Other (expense) income, net — 0.3 — — 0.3 Income (loss) before income taxes (5.1 ) 46.1 0.6 (0.2 ) 41.4 Income tax (provision) benefit — (16.9 ) (0.2 ) 2.0 (15.1 ) Earnings (loss) in equity of subsidiaries 31.4 0.3 — (31.7 ) — Net income (loss) $ 26.3 $ 29.5 $ 0.4 $ (29.9 ) $ 26.3 Comprehensive income $ 27.2 $ 30.3 $ 0.5 $ (30.8 ) $ 27.2 CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE (LOSS) INCOME (In millions of dollars) Quarter Ended March 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Net sales $ — $ 363.4 $ 34.7 $ (26.4 ) $ 371.7 Costs and expenses: Cost of products sold: Cost of products sold, excluding depreciation and amortization and other items — 296.4 31.6 (25.7 ) 302.3 Unrealized loss on derivative instruments — 4.5 — — 4.5 Depreciation and amortization — 7.7 0.3 — 8.0 Selling, general, administrative, research and development: Selling, general, administrative, research and development 1.0 20.7 1.6 (0.6 ) 22.7 Net periodic postretirement benefit cost relating to Salaried VEBA — 0.6 — — 0.6 Loss on removal of Union VEBA net assets — 492.2 — — 492.2 Total selling, general, administrative, research and development 1.0 513.5 1.6 (0.6 ) 515.5 Total costs and expenses 1.0 822.1 33.5 (26.3 ) 830.3 Operating (loss) income (1.0 ) (458.7 ) 1.2 (0.1 ) (458.6 ) Other (expense) income: Interest expense (9.5 ) (0.5 ) — 0.2 (9.8 ) Other (expense) income, net — 0.5 0.1 (0.2 ) 0.4 (Loss) income before income taxes (10.5 ) (458.7 ) 1.3 (0.1 ) (468.0 ) Income tax benefit — 171.9 — 3.9 175.8 (Loss) earnings in equity of subsidiaries (281.7 ) 1.1 — 280.6 — Net (loss) income $ (292.2 ) $ (285.7 ) $ 1.3 $ 284.4 $ (292.2 ) Comprehensive (loss) income $ (225.3 ) $ (218.9 ) $ 1.4 $ 217.5 $ (225.3 ) CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Three Months Ended March 31, 2016 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by operating activities 1 $ 17.2 $ 201.4 $ 2.7 $ (200.0 ) $ 21.3 Cash flows from investing activities: Capital expenditures — (25.3 ) (0.6 ) — (25.9 ) Proceeds from disposition of available for sale securities — 20.0 — — 20.0 Net cash used in investing activities — (5.3 ) (0.6 ) — (5.9 ) Cash flows from financing activities: Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (2.7 ) — — — (2.7 ) Repurchase of common stock (6.3 ) — — — (6.3 ) Cash dividends paid to stockholders (8.2 ) — — — (8.2 ) Cash dividends paid to Parent — (200.0 ) — 200.0 — Intercompany loan — 0.8 (0.8 ) — — Net cash (used in) provided by financing activities (17.2 ) (199.2 ) (0.8 ) 200.0 (17.2 ) Net (decrease) increase in cash and cash equivalents during the period — (3.1 ) 1.3 — (1.8 ) Cash and cash equivalents at beginning of period — 72.2 0.3 — 72.5 Cash and cash equivalents at end of period $ — $ 69.1 $ 1.6 $ — $ 70.7 ________________ 1 The Guarantor Subsidiaries’ Net cash provided by operating activities reflects a decrease in current Intercompany receivables from the Parent and an increase in current Intercompany payable to the Parent related to the $200.0 million dividend made by the Guarantor Subsidiaries to the Parent. The dividend to the Parent and intercompany activity is eliminated within the consolidating adjustments. CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (In millions of dollars) Three Months Ended March 31, 2015 Parent Guarantor Subsidiaries Non-Guarantor Subsidiaries Consolidating Adjustments Consolidated Cash flows from operating activities: Net cash provided by (used in) operating activities $ 37.8 $ (32.7 ) $ 2.3 $ — $ 7.4 Cash flows from investing activities: Capital expenditures — (6.7 ) (4.6 ) — (11.3 ) Proceeds from disposition of available for sale securities — 84.0 — — 84.0 Net cash provided by (used in) investing activities — 77.3 (4.6 ) — 72.7 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 — 1.0 — — 1.0 Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares (2.5 ) — — — (2.5 ) Repurchase of common stock (28.2 ) — — — (28.2 ) Cash dividend paid to stockholders (7.1 ) — — — (7.1 ) Intercompany loan — (1.9 ) 1.9 — — Net cash (used in) provided by financing activities (37.8 ) (1.0 ) 1.9 — (36.9 ) Net increase (decrease) in cash and cash equivalents during the period — 43.6 (0.4 ) — 43.2 Cash and cash equivalents at beginning of period — 175.3 2.4 — 177.7 Cash and cash equivalents at end of period $ — $ 218.9 $ 2.0 $ — $ 220.9 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Significant accounting policies | |||
Reclassification of deferred financing costs upon adoption of ASU 2015-03 | $ 3.2 | ||
Inventory Write-down | 4.9 | $ 0 | |
Fabricated Products | |||
Significant accounting policies | |||
(Shortfalls) excess of current cost over the stated LIFO value of inventory | $ 17.7 | $ 24.1 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies, Narrative, Property, Plant and Equipment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Property, Plant and Equipment | ||
Interest expense capitalized as construction in progress | $ 0.9 | $ 0.3 |
Depreciation expense | 8.3 | 7.6 |
Fabricated Products | ||
Property, Plant and Equipment | ||
Depreciation expense | $ 8.2 | $ 7.5 |
Supplemental Balance Sheet In40
Supplemental Balance Sheet Information (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Cash and Cash Equivalents | |||
Cash and money market funds | $ 34.5 | $ 40.3 | |
Commercial paper | 36.2 | 32.2 | |
Total | 70.7 | 72.5 | |
Trade Receivables – Net | |||
Trade receivables, gross | 139.6 | 117.5 | |
Allowance for doubtful receivables | (0.8) | (0.8) | |
Trade receivables – net | 138.8 | 116.7 | |
Inventories | |||
Finished products | 66.8 | 79.5 | |
Work-in-process | 73.4 | 63.6 | |
Raw materials | 46.7 | 53.4 | |
Operating supplies and repair and maintenance parts | 23.7 | 23.1 | |
Total | 210.6 | 219.6 | |
Prepaid Expenses and Other Current Assets | |||
Current derivative assets – Notes 8 and 9 | 1.4 | 1.5 | |
Current deferred tax assets | 0 | 49.6 | |
Short-term restricted cash | 0.3 | 0.3 | |
Prepaid taxes | 3.3 | 0 | |
Prepaid Insurance | 1.1 | 1.9 | |
Other | 3 | 3.4 | |
Total | [1] | 9.1 | 56.7 |
Property, Plant and Equipment – Net | |||
Land and improvements | 22.7 | 22.7 | |
Buildings and leasehold improvements | 72.5 | 71.8 | |
Machinery and equipment | 559.3 | 549 | |
Construction in progress | 54.8 | 48.5 | |
Property, plant and equipment – gross | 709.3 | 692 | |
Accumulated depreciation | (205.1) | (196.9) | |
Assets held for sale | 0.3 | 0.3 | |
Property, plant and equipment – net | 504.5 | 495.4 | |
Other Assets | |||
Restricted cash | 10.9 | 10.9 | |
Deferred financing costs | 1.1 | 1.3 | |
Deferred compensation plan assets | 7.3 | 7.3 | |
Derivative Asset, Noncurrent | 0.2 | 0.1 | |
Total | [1] | 19.5 | 19.6 |
Other Accrued Liabilities | |||
Current derivative liabilities – Notes 8 and 9 | 10.3 | 14.1 | |
Uncleared cash disbursements | 10 | 8 | |
Accrued income taxes and taxes payable | 8.6 | 3.1 | |
Accrued annual contribution to VEBAs | 0 | 19.6 | |
Accrued contingent contribution to Union VEBA – Note 5 | 17.1 | 0 | |
Short-term environmental accrual – Note 7 | 1.3 | 1.6 | |
Accrued interest | 5.5 | 1.5 | |
Short-term deferred revenue | 0.8 | 1.2 | |
Other | 2.9 | 3.6 | |
Total | 56.5 | 52.7 | |
Long-Term Liabilities | |||
Derivative liabilities – Notes 8 and 9 | 1.7 | 2.1 | |
Income tax liabilities | 0.8 | 0.7 | |
Workers’ compensation accruals | 24.1 | 21.7 | |
Long-term environmental accruals – Note 7 | 16.8 | 17 | |
Long-term asset retirement obligations | 4.9 | 4.8 | |
Deferred compensation liabilities | 7.8 | 7.7 | |
Long-term deferred revenue | 0.3 | 0.3 | |
Long-term capital leases | 0.1 | 0.1 | |
Long-term portion of contingent contribution to Union VEBA – Note 5 | 12.8 | 29.9 | |
Other long-term liabilities | 3.2 | 3.2 | |
Total | 72.5 | 87.5 | |
Billed | |||
Trade Receivables – Net | |||
Trade receivables, gross | 139.4 | 116.8 | |
Unbilled | |||
Trade Receivables – Net | |||
Trade receivables, gross | $ 0.2 | $ 0.7 | |
[1] | See Note 1 for discussion of our adoption of ASU 2015-03, ASU 2015-15 and ASU 2015-17 (as defined in Note 1). |
Debt and Credit Facility Debt a
Debt and Credit Facility Debt and Credit Facility, Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | May. 23, 2012 | ||
Debt Instrument [Line Items] | |||||
Long-term debt1 | [1] | $ 194,800,000 | $ 194,600,000 | ||
Senior Notes Due 2020 [Member] | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 225,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 8.25% | ||||
Debt issuance, percentage of principal amount | 100.00% | ||||
Debt Instrument, Periodic Payment, Principal | $ 27,200,000 | ||||
Percentage of principal amount repurchased | 107.50% | ||||
Long-term debt1 | 197,800,000 | $ 197,800,000 | |||
Interest Expense, Long-term Debt | 4,300,000 | $ 4,800,000 | |||
Debt Instrument, Fair Value Disclosure | 205,700,000 | $ 207,300,000 | |||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 300,000,000 | ||||
Line of Credit Facility, Current Borrowing Capacity | 299,100,000 | ||||
Long-term Line of Credit | 0 | ||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 291,800,000 | ||||
Line of Credit Facility, Interest Rate at Period End | 3.75% | ||||
Revolving Credit Facility [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term Line of Credit | $ 7,300,000 | ||||
On or after June 1, 2016 [Member] | Senior Notes Due 2020 [Member] | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 104.125% | ||||
On or after June 1, 2017 [Member] | Senior Notes Due 2020 [Member] | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 102.0625% | ||||
On or after June 1, 2018 [Member] | Senior Notes Due 2020 [Member] | Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
[1] | See Note 1 for discussion of our adoption of ASU 2015-03, ASU 2015-15 and ASU 2015-17 (as defined in Note 1). |
Income Tax Matters, Provision T
Income Tax Matters, Provision Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Tax Provision | ||
Domestic | $ 14.9 | $ (175.8) |
Foreign | 0.2 | 0 |
Total | $ 15.1 | $ (175.8) |
Income Tax Matters, Narrative (
Income Tax Matters, Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Income Tax Contingency | ||||
Income tax provision (benefit) | $ 15.1 | $ (175.8) | ||
Effective tax rate | 36.50% | 37.60% | ||
Effective income tax rate reconciliation, share-based compensation cost, amount | $ 0.7 | |||
Effective income tax rate reconciliation, share-based compensation cost, percent | (1.70%) | |||
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | $ 0.3 | |||
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, percent | 0.70% | |||
Gross unrecognized tax benefits | $ 1.7 | $ 1.7 | ||
Gross unrecognized tax benefits that would impact effective tax rate | 0.6 | 0.6 | ||
Cumulative-effect adjustment | [1] | 0.7 | ||
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | ||||
Income Tax Contingency | ||||
Cumulative-effect adjustment | [1] | $ 0.7 | ||
Union VEBA | ||||
Income Tax Contingency | ||||
Income tax benefit on removal of Union VEBA net assets | $ 184.4 | $ 184.4 | ||
[1] | See Note 4 and Note 6 for discussion of our adoption of ASU 2016-09 (as defined in Note 1). |
Employee Benefits, Net Periodic
Employee Benefits, Net Periodic Benefit Costs and Charges Relating To All Other Employee Benefit Plans(Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Salaried VEBA: | ||
Total net periodic postretirement benefit cost relating to Salaried VEBA | $ 0.8 | $ 0.6 |
(Gain) loss on removal of Union VEBA net assets | (0.1) | 492.2 |
Deferred Compensation Arrangement with Individual, Compensation Expense | 0.1 | 0.4 |
Defined contribution plans | 4 | 4 |
Multiemployer pension plans | 1.1 | 0.9 |
Charges Relating To Other Benefit Plans | 5.2 | 5.3 |
Total other employee benefit plans | 5.9 | 498.1 |
Fabricated Products | ||
Salaried VEBA: | ||
Total other employee benefit plans | 4.7 | 4.6 |
All Other | ||
Salaried VEBA: | ||
Total other employee benefit plans | 1.2 | 493.5 |
VEBAs | ||
Salaried VEBA: | ||
Service cost1 | 0 | 0 |
Interest cost | 0.7 | 0.7 |
Expected return on plan assets | (1) | (1.1) |
Amortization of prior service cost | 1 | 0.7 |
Amortization of net actuarial loss | 0.1 | 0.3 |
Total net periodic postretirement benefit cost relating to Salaried VEBA | 0.8 | 0.6 |
(Gain) loss on removal of Union VEBA net assets | $ (0.1) | $ 492.2 |
Employee Benefits, Defined Bene
Employee Benefits, Defined Benefit Plans Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
VEBA Postretirement Medical Obligations | |||
Accrued annual contribution to VEBAs | $ 0 | $ 19.6 | |
VEBAs | |||
VEBA Postretirement Medical Obligations | |||
Accrued annual contribution to VEBAs | 19.5 | ||
Union VEBA | |||
VEBA Postretirement Medical Obligations | |||
Accrued annual contribution to VEBAs | 16.7 | ||
Accrued Veba contingent contribution - total | 29.9 | ||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements and Curtailments | $ 307.8 | ||
Income Tax Expense (Benefit) | $ 184.4 | $ 184.4 | |
Salaried VEBA | |||
VEBA Postretirement Medical Obligations | |||
Accrued annual contribution to VEBAs | $ 2.8 |
Employee Incentive Plans, Short
Employee Incentive Plans, Short Term Incentive Plans (Details) $ in Millions | Mar. 31, 2016USD ($) |
Short Term Incentive Plans [Member] | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |
Accrued Bonuses | $ 4.9 |
Employee Incentive Plans Employ
Employee Incentive Plans Employee Incentive Plans, Compensation expense under LTI programs (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cumulative-effect adjustment | [1] | $ 0.7 | ||
Allocated Share-based Compensation Expense | $ 2.6 | $ 2.1 | ||
Restricted Stock And Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 1.1 | 1.1 | ||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 0.3 | 0.4 | ||
Market-based shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 1.1 | 0.6 | ||
Cost Performance-Based Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 0.1 | 0 | ||
Fabricated Products | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | 0.8 | 0.7 | ||
All Other | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 1.8 | $ 1.4 | ||
Minimum | Market-based shares | ||||
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% | |||
Minimum | Cost Performance-Based Shares | ||||
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% | |||
Maximum | Market-based shares | ||||
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% | |||
Maximum | Cost Performance-Based Shares | ||||
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% | |||
Additional Paid in Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cumulative-effect adjustment | [1] | 0.8 | ||
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cumulative-effect adjustment | [1] | 0.7 | ||
Accounting Standards Update 2016-09 | New Accounting Pronouncement, Early Adoption, Effect | Additional Paid in Capital | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cumulative-effect adjustment | [1] | $ 0.8 | ||
[1] | See Note 4 and Note 6 for discussion of our adoption of ASU 2016-09 (as defined in Note 1). |
Employee Incentive Plans Empl48
Employee Incentive Plans Employee Incentive Plans, Unrecognized Compensation Cost (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Restricted Stock And Restricted Stock Units | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 8.3 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 4 months |
Cost Performance-Based Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 4.7 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 11 months |
Market-based shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 10.5 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 2 months |
Employee Incentive Plans Empl49
Employee Incentive Plans Employee Incentive Plans, Summary of activity of non-vested common shares, restricted stock units, and performance shares (Details) - $ / shares | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Cancelled In Period | 0 | ||
Share Based Compensation Arrangement By Share Based Payments Award Equity Instruments Other Than Options Cancelled In Period Weighted Average Grant Date Fair Value | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 38,812 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 60.75 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | $ 69.83 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 69.33 | $ 67.20 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 117,569 | 156,553 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 172 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 68.99 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Cancelled In Period | 0 | ||
Share Based Compensation Arrangement By Share Based Payments Award Equity Instruments Other Than Options Cancelled In Period Weighted Average Grant Date Fair Value | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 1,762 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 63.18 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 74.49 | 69.83 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 52,705 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 74.07 | $ 66.64 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 56,299 | 5,521 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 165 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 74 | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Cancelled In Period | 105,494 | ||
Share Based Compensation Arrangement By Share Based Payments Award Equity Instruments Other Than Options Cancelled In Period Weighted Average Grant Date Fair Value | $ 57.76 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 49,611 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 57.76 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 0 | $ 57.76 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 0 | 155,105 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 0 | ||
Cost Performance-Based Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Cancelled In Period | 0 | ||
Share Based Compensation Arrangement By Share Based Payments Award Equity Instruments Other Than Options Cancelled In Period Weighted Average Grant Date Fair Value | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 80.46 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 63,983 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 80.46 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 63,819 | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 164 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 80.46 | ||
Market-based shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Cancelled In Period | 0 | ||
Share Based Compensation Arrangement By Share Based Payments Award Equity Instruments Other Than Options Cancelled In Period Weighted Average Grant Date Fair Value | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 93.02 | $ 95.68 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 95,974 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 90.30 | $ 89.43 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 394,736 | 299,877 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 1,115 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 90.06 |
Employee Incentive Plans Empl50
Employee Incentive Plans Employee Incentive Plans, Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | $ 69.83 |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 74.49 | 69.83 |
Cost Performance-Based Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 80.46 | 0 |
Market-based shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 93.02 | $ 95.68 |
Employee Incentive Plans Empl51
Employee Incentive Plans Employee Incentive Plans, Narrative (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 16,645 | 16,645 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,722,222 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 603,810 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 80.01 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year | 1 year 3 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | ||
Shares Paid for Tax Withholding for Share Based Compensation | 35,162 | 33,628 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 0 | ||
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) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number Of Common Share Received By Employee On Vesting Of Restricted Stock Unit | 1 | ||
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 | ||
Market-based 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% | ||
Market-based 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, Environmental (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Environmental Contingency | |
Environmental accrual | $ 18.1 |
Expected period related to remediation expenditures for environmental contingencies period | 30 years |
Potential increase in environmental costs | $ 24.7 |
Time period within which Companys recorded estimate of its obligation may change | 12 months |
Minimum | |
Environmental Contingency | |
Period for final feasibility study | 9 months |
Maximum | |
Environmental Contingency | |
Period for final feasibility study | 15 months |
Derivative Financial Instrume53
Derivative Financial Instruments and Related Hedging Programs, Realized and Unrealized Gains (Losses) Table (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Summary Of Realized And Unrealized Gains (Losses) | ||
Unrealized gains (losses) | $ 4 | $ (4.5) |
Not Designated as Hedging Instrument | ||
Summary Of Realized And Unrealized Gains (Losses) | ||
Unrealized gains (losses) | 4 | (4.5) |
Operational Risk Hedges | Not Designated as Hedging Instrument | ||
Summary Of Realized And Unrealized Gains (Losses) | ||
Realized (losses) gains | (4.4) | (4.7) |
Unrealized gains (losses) | 4 | (4.5) |
Foreign Currency Member | Operational Risk Hedges | Designated as Hedging Instrument [Member] | ||
Summary Of Realized And Unrealized Gains (Losses) | ||
Unrealized gains (losses) | 0.2 | 0 |
Aluminum | Operational Risk Hedges | Not Designated as Hedging Instrument | ||
Summary Of Realized And Unrealized Gains (Losses) | ||
Realized (losses) gains | (2.7) | (2.7) |
Unrealized gains (losses) | 3.2 | (4.2) |
Natural Gas | Operational Risk Hedges | Not Designated as Hedging Instrument | ||
Summary Of Realized And Unrealized Gains (Losses) | ||
Realized (losses) gains | (1.7) | (1.3) |
Unrealized gains (losses) | 0.8 | (0.7) |
Electricity | Operational Risk Hedges | Not Designated as Hedging Instrument | ||
Summary Of Realized And Unrealized Gains (Losses) | ||
Realized (losses) gains | 0 | (0.7) |
Unrealized gains (losses) | 0 | 0.4 |
Hedges Relating To Notes Member | Call Options | Not Designated as Hedging Instrument | ||
Summary Of Realized And Unrealized Gains (Losses) | ||
Unrealized gains (losses) | 0 | 10.2 |
Hedges Relating To Notes Member | Bifurcated Conversion Feature | Not Designated as Hedging Instrument | ||
Summary Of Realized And Unrealized Gains (Losses) | ||
Unrealized gains (losses) | $ 0 | $ (10.2) |
Derivative Financial Instrume54
Derivative Financial Instruments and Related Hedging Programs, Material Derivative Positions (Details) | Mar. 31, 2016EUR (€)MMBTUmmlbs | Dec. 31, 2015EUR (€) |
Remainder of 2016 | ||
Derivative [Line Items] | ||
Percentage of natural gas purchases for which the Company's exposure to fluctuations in gas prices had been substantially reduced | 79.00% | |
Percentage of Electricity Purchases For Which Company Exposure To Fluctuations In Electricity Prices Have Been Reduced | 54.00% | |
2,017 | ||
Derivative [Line Items] | ||
Percentage of natural gas purchases for which the Company's exposure to fluctuations in gas prices had been substantially reduced | 73.00% | |
Percentage of Electricity Purchases For Which Company Exposure To Fluctuations In Electricity Prices Have Been Reduced | 54.00% | |
2,018 | ||
Derivative [Line Items] | ||
Percentage of natural gas purchases for which the Company's exposure to fluctuations in gas prices had been substantially reduced | 72.00% | |
Percentage of Electricity Purchases For Which Company Exposure To Fluctuations In Electricity Prices Have Been Reduced | 27.00% | |
Not Designated as Hedging Instrument | Aluminum | Option on Securities [Member] | Purchase | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2 | |
Not Designated as Hedging Instrument | Aluminum | Fixed priced contracts | Purchase | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 128.4 | |
Not Designated as Hedging Instrument | Aluminum | Fixed priced contracts | Sales | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 2.2 | |
Not Designated as Hedging Instrument | Aluminum | Midwest premium swap contracts | Purchase | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | 92 | |
Not Designated as Hedging Instrument | Natural Gas | Fixed priced contracts | Purchase | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount | MMBTU | 7,070,000 | |
Designated as Hedging Instrument [Member] | Foreign Currency Member | Fixed priced contracts | Purchase | ||
Derivative [Line Items] | ||
Notional amount of contracts | € | € 3,950,374 | € 4,699,750 |
Derivative Financial Instrume55
Derivative Financial Instruments and Related Hedging Programs, Offsetting of Derivative Instruments by Counterparty (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative Assets and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Assets | $ 1.6 | $ 1.6 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 1.6 | 1.6 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 1.6 | 1.6 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Derivative Liabilities and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Liabilities | (12) | (16.2) |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | (12) | (16.2) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | (1.6) | (1.6) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | (10.4) | (14.6) |
Counterparty (with Netting Agreements) | ||
Derivative Assets and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Assets | 1 | 1.3 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 1 | 1.3 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 1 | 1.3 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Derivative Liabilities and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Liabilities | (6.3) | (8.5) |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | (6.3) | (8.5) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | (1) | (1.3) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | (5.3) | (7.2) |
Counterparty (with partial Netting Agreements) | ||
Derivative Assets and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Assets | 0.6 | 0.3 |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Assets Presented in the Consolidated Balance Sheets | 0.6 | 0.3 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | 0.6 | 0.3 |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Received | 0 | 0 |
Net Amount | 0 | 0 |
Derivative Liabilities and Collateral Held by Counterparty | ||
Gross Amounts of Recognized Liabilities | (5.7) | (7.7) |
Gross Amounts Offset in the Consolidated Balance Sheets | 0 | 0 |
Net Amounts of Liabilities Presented in the Consolidated Balance Sheets | (5.7) | (7.7) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Financial Instruments | (0.6) | (0.3) |
Gross Amounts Not Offset in the Consolidated Balance Sheets - Cash Collateral Pledged | 0 | 0 |
Net Amount | $ (5.1) | $ (7.4) |
Derivative Financial Instrume56
Derivative Financial Instruments and Related Hedging Programs, Narrative (Details) $ in Millions | 3 Months Ended | |||||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2016EUR (€) | Mar. 31, 2016USD ($) | Dec. 31, 2015EUR (€) | Dec. 31, 2015USD ($) | |
Derivative [Line Items] | ||||||
Foreign Currency Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 0 | |||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 0 | |||||
Unrealized gain on foreign currency cash flow hedges | 0.2 | $ 0 | ||||
Accumulated other comprehensive loss related to cash flow hedges | $ (0.1) | |||||
Gain (Loss) on Foreign Currency Cash Flow Hedge Ineffectiveness | $ 0 | |||||
Derivative Financial Instruments and Related Hedging Programs (Textuals) [Abstract] | ||||||
Aggregate fair value of derivative instruments that contain credit-risk-related contingency features that were in a net liability position | $ 10.4 | $ 14.6 | ||||
2,017 | ||||||
Derivative [Line Items] | ||||||
Percentage of Electricity Purchases For Which Company Exposure To Fluctuations In Electricity Prices Have Been Reduced | 54.00% | 54.00% | ||||
Remainder of 2016 | ||||||
Derivative [Line Items] | ||||||
Percentage of Electricity Purchases For Which Company Exposure To Fluctuations In Electricity Prices Have Been Reduced | 54.00% | 54.00% | ||||
2,018 | ||||||
Derivative [Line Items] | ||||||
Percentage of Electricity Purchases For Which Company Exposure To Fluctuations In Electricity Prices Have Been Reduced | 27.00% | 27.00% | ||||
Swap [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Member | Purchase | ||||||
Derivative [Line Items] | ||||||
Derivative Liability, Notional Amount | € | € 3,950,374 | € 4,699,750 | ||||
Derivative, Average Forward Exchange Rate | 1.14 | 1.14 | 1.14 | 1.14 | ||
Minimum | Swap [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Member | Purchase | ||||||
Derivative [Line Items] | ||||||
Derivative, Remaining Maturity | 2 months | |||||
Maximum | Swap [Member] | Designated as Hedging Instrument [Member] | Foreign Currency Member | Purchase | ||||||
Derivative [Line Items] | ||||||
Derivative, Remaining Maturity | 17 months |
Fair Value Measurements, Fair V
Fair Value Measurements, Fair Value Hierarchy Table (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Financial Assets: | ||
Derivative Asset | $ 1.6 | $ 1.6 |
Deferred compensation plan assets | 7.3 | 7.3 |
Financial Liabilities: | ||
Derivative Liability | (12) | (16.2) |
Fair Value, Measurements, Recurring | ||
Financial Assets: | ||
Cash and cash equivalents | 70.7 | 72.5 |
Deferred compensation plan assets | 7.3 | 7.3 |
Total Assets | 89.6 | 111.4 |
Financial Liabilities: | ||
Total Liabilities | (217.7) | (223.5) |
Fair Value, Measurements, Recurring | Senior Notes | ||
Financial Liabilities: | ||
Senior Notes | (205.7) | (207.3) |
Fair Value, Measurements, Recurring | Debt securities | ||
Financial Assets: | ||
Short-term investments | 10 | 30 |
Fair Value, Measurements, Recurring | Aluminum | Option on Securities [Member] | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.2 | 0.2 |
Fair Value, Measurements, Recurring | Aluminum | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.8 | 0.3 |
Financial Liabilities: | ||
Derivative Liability | (8.9) | |
Fair Value, Measurements, Recurring | Aluminum | Fixed priced contracts | Sales | ||
Financial Assets: | ||
Derivative Asset | 0.2 | |
Financial Liabilities: | ||
Derivative Liability | (0.1) | |
Fair Value, Measurements, Recurring | Aluminum | Midwest premium swap contracts | ||
Financial Assets: | ||
Derivative Asset | 0.5 | 0.9 |
Fair Value, Measurements, Recurring | Natural Gas | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.1 | |
Financial Liabilities: | ||
Derivative Liability | (6.7) | |
Fair Value, Measurements, Recurring | Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 34.5 | 40.3 |
Deferred compensation plan assets | 0 | 0 |
Total Assets | 34.5 | 40.3 |
Financial Liabilities: | ||
Total Liabilities | (205.7) | (207.3) |
Fair Value, Measurements, Recurring | Level 1 | Senior Notes | ||
Financial Liabilities: | ||
Senior Notes | (205.7) | (207.3) |
Fair Value, Measurements, Recurring | Level 1 | Debt securities | ||
Financial Assets: | ||
Short-term investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Aluminum | Option on Securities [Member] | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Aluminum | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | 0 |
Financial Liabilities: | ||
Derivative Liability | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Aluminum | Fixed priced contracts | Sales | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liability | 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 | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liability | 0 | |
Fair Value, Measurements, Recurring | Level 2 | ||
Financial Assets: | ||
Cash and cash equivalents | 36.2 | 32.2 |
Short-term investments | 30 | |
Deferred compensation plan assets | 7.3 | 7.3 |
Total Assets | 54.6 | 70.2 |
Financial Liabilities: | ||
Total Liabilities | (11.7) | (15.9) |
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 | 10 | |
Fair Value, Measurements, Recurring | Level 2 | Aluminum | Option on Securities [Member] | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.2 | 0.2 |
Fair Value, Measurements, Recurring | Level 2 | Aluminum | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.8 | 0.3 |
Financial Liabilities: | ||
Derivative Liability | (8.9) | |
Fair Value, Measurements, Recurring | Level 2 | Aluminum | Fixed priced contracts | Sales | ||
Financial Assets: | ||
Derivative Asset | 0.2 | |
Financial Liabilities: | ||
Derivative Liability | (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 | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0.1 | |
Financial Liabilities: | ||
Derivative Liability | (6.7) | |
Fair Value, Measurements, Recurring | Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Deferred compensation plan assets | 0 | 0 |
Total Assets | 0.5 | 0.9 |
Financial Liabilities: | ||
Total Liabilities | (0.3) | (0.3) |
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 on Securities [Member] | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Aluminum | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | 0 |
Financial Liabilities: | ||
Derivative Liability | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Aluminum | Fixed priced contracts | Sales | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liability | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Natural Gas | Fixed priced contracts | Purchase | ||
Financial Assets: | ||
Derivative Asset | 0 | |
Financial Liabilities: | ||
Derivative Liability | 0 | |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Aluminum | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | (5.6) | |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Aluminum | Midwest premium swap contracts | ||
Financial Liabilities: | ||
Derivative Liability | (0.3) | |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Natural Gas | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | (6.1) | |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 1 | Aluminum | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 1 | Aluminum | Midwest premium swap contracts | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 1 | Natural Gas | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 2 | Aluminum | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | (5.6) | |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 2 | Aluminum | Midwest premium swap contracts | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 2 | Natural Gas | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | (6.1) | |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 3 | Aluminum | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring | Level 3 | Natural Gas | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Designated as Hedging Instrument [Member] | Fair Value, Measurements, Recurring | Foreign Currency Member | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | (0.2) | |
Designated as Hedging Instrument [Member] | Fair Value, Measurements, Recurring | Level 1 | Foreign Currency Member | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Designated as Hedging Instrument [Member] | Fair Value, Measurements, Recurring | Level 2 | Foreign Currency Member | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | (0.2) | |
Designated as Hedging Instrument [Member] | Fair Value, Measurements, Recurring | Level 3 | Foreign Currency Member | Fixed priced contracts | Purchase | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Income Approach Valuation Technique | Fair Value, Measurements, Recurring | Aluminum | Midwest premium swap contracts | ||
Financial Liabilities: | ||
Derivative Liability | (0.3) | |
Income Approach Valuation Technique | Fair Value, Measurements, Recurring | Level 1 | Aluminum | Midwest premium swap contracts | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Income Approach Valuation Technique | Fair Value, Measurements, Recurring | Level 2 | Aluminum | Midwest premium swap contracts | ||
Financial Liabilities: | ||
Derivative Liability | 0 | |
Income Approach Valuation Technique | Fair Value, Measurements, Recurring | Level 3 | Aluminum | Midwest premium swap contracts | ||
Financial Assets: | ||
Derivative Asset | 0.5 | 0.9 |
Financial Liabilities: | ||
Derivative Liability | $ (0.3) | $ (0.3) |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements, Schedule of Quantitative Information for Level 3 Derivative Contracts (Details) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Midwest Premium Swap Asset Beginning Curve Value | $ 0.083 |
Midwest Premium Swap Asset Ending Curve Value | 0.084 |
Midwest Premium Swap Liability Ending Curve Value | 0.084 |
Midwest Premium Swap Liability Beginning Curve Value | $ 0.083 |
Fair Value Measurements, Level
Fair Value Measurements, Level 3 Fair Value Input Reconciliation Table (Details) - Derivative - Midwest premium swap contracts $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Reconciliation of activity for financial instruments classified as Level 3: | |
Fair value measurement at December 31, 2015 | $ 0.6 |
Total realized/unrealized (loss) included in: | |
Cost of goods sold excluding depreciation and amortization and other items and Unrealized loss on derivative instruments | 0 |
Transactions involving Level 3 derivative contracts: | |
Purchases | (0.1) |
Sales | 0 |
Issuances | 0 |
Settlements | (0.3) |
Transactions involving Level 3 derivatives – net | (0.4) |
Transfers in and/or out of Level 3 valuation hierarchy | 0 |
Fair value measurement at March 31, 2016 | 0.2 |
Total gain included in Unrealized (gain) loss on derivative instruments, attributable to the change in unrealized gain/loss relating to derivative contracts held at March 31, 2016: | $ (0.1) |
Fair Value Measurements Fair 60
Fair Value Measurements Fair Value Measurements, Narrative (Details) | 3 Months Ended |
Mar. 31, 2016 | |
Maximum | |
Schedule of Available-for-sale Securities [Line Items] | |
Short-term investment maturity period | 2 months |
Earnings Per Share, Calculation
Earnings Per Share, Calculation of EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Numerator: | ||
Net income | $ 26.3 | $ (292.2) |
Denominator — Weighted-average common shares outstanding (in thousands): | ||
Basic | 17,864 | 17,344 |
Add: dilutive effect of non-vested common shares, restricted stock units and performance shares | 336 | 0 |
Diluted | 18,200 | 17,344 |
Net income (loss) per common share: | ||
Basic | $ 1.47 | $ (16.85) |
Earnings per common share, Diluted: | ||
Diluted | $ 1.44 | $ (16.85) |
Earnings Per Share, Anti Diluti
Earnings Per Share, Anti Dilution Table (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 50 | 840 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 60.57 | |
Options to purchase common shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 17 | 17 |
Non-vested common shares, restricted stock units and performance shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 33 | 187 |
Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 636 |
Warrant [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3,700 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share, Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Payments of Ordinary Dividends, Common Stock | $ 8.2 | $ 7.1 |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.45 | $ 0.40 |
Treasury Stock, Shares, Acquired | 83,265 | 405,259 |
Treasury Stock Acquired, Average Cost Per Share | $ 76.85 | $ 74.05 |
Treasury Stock, Value, Acquired, Cost Method | $ 6.4 | $ 30 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 116.9 |
Segment Information, Financial
Segment Information, Financial Information by Operating Segment Table (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Net sales: | |||
Net Sales | $ 343.2 | $ 371.7 | |
Segment operating income (loss): | |||
Operating income (loss) | 44.8 | (458.6) | |
Interest expense | (3.7) | (9.8) | |
Other (expense) income, net | 0.3 | 0.4 | |
Income (loss) before income taxes | 41.4 | (468) | |
Depreciation and amortization: | |||
Depreciation and amortization | 8.7 | 8 | |
Capital expenditures: | |||
Capital expenditures | 25.9 | 11.3 | |
Assets: | |||
Assets | 1,236.6 | $ 1,247.6 | |
Unrealized Gain (Loss) on Derivatives | 4 | (4.5) | |
Non-cash defined benefit net periodic benefit cost relating to Salaried VEBA | 0.8 | 0.6 | |
(Gain) loss on removal of Union VEBA net assets | (0.1) | 492.2 | |
Fabricated Products | |||
Net sales: | |||
Net Sales | 343.2 | 371.7 | |
Segment operating income (loss): | |||
Operating income (loss) | 57.9 | 44.9 | |
Depreciation and amortization: | |||
Depreciation and amortization | 8.6 | 7.9 | |
Capital expenditures: | |||
Capital expenditures | 25.8 | 11.2 | |
Assets: | |||
Assets | 932.5 | 904.7 | |
Unrealized Gain (Loss) on Derivatives | 4 | (4.5) | |
All Other | |||
Segment operating income (loss): | |||
Operating income (loss) | (13.1) | (503.5) | |
Depreciation and amortization: | |||
Depreciation and amortization | 0.1 | 0.1 | |
Capital expenditures: | |||
Capital expenditures | 0.1 | 0.1 | |
Assets: | |||
Assets | 304.1 | $ 342.9 | |
VEBAs | |||
Assets: | |||
Non-cash defined benefit net periodic benefit cost relating to Salaried VEBA | 0.8 | 0.6 | |
(Gain) loss on removal of Union VEBA net assets | $ (0.1) | $ 492.2 |
Segment Information, Net Sales
Segment Information, Net Sales by End Market Segment Applications (Details) - Fabricated Products - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Net Sales: | ||
Net sales | $ 343.2 | $ 371.7 |
Aero/HS products | ||
Net Sales: | ||
Net sales | 176.9 | 180.3 |
Automotive Extrusions | ||
Net Sales: | ||
Net sales | 48.4 | 50.1 |
GE products | ||
Net Sales: | ||
Net sales | 105.4 | 119.1 |
Other products | ||
Net Sales: | ||
Net sales | $ 12.5 | $ 22.2 |
Segment Information Segment Inf
Segment Information Segment Information, Income Taxes Paid by Geographical Area (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information | ||
Income Taxes Paid | $ 0.3 | $ 1 |
UNITED STATES | ||
Segment Reporting Information | ||
Income Taxes Paid | 0.1 | 0.1 |
Canada | ||
Segment Reporting Information | ||
Income Taxes Paid | $ 0.2 | $ 0.9 |
Segment Information, Supply Inf
Segment Information, Supply Information (Details) - Supplier Concentration Risk - Aluminum | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Top five major suppliers | ||
Concentration Risk | ||
Concentration Risk, Percentage | 83.00% | 75.00% |
Largest supplier | ||
Concentration Risk | ||
Concentration Risk, Percentage | 30.00% | 29.00% |
Second and third largest suppliers | ||
Concentration Risk | ||
Concentration Risk, Percentage | 35.00% | 29.00% |
Segment Information, Narrative
Segment Information, Narrative (Details) - productionfacilities | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
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 | 6.00% | ||
United States | |||
Segment Reporting Information | |||
Number of production facilities | 11 | ||
Canada | |||
Segment Reporting Information | |||
Number of production facilities | 1 | ||
Customer Concentration Risk | Largest Customer | Sales Revenue, Net | Fabricated Products | |||
Segment Reporting Information | |||
Concentration Risk, Percentage | 25.00% | 23.00% | |
Customer Concentration Risk | Largest Customer | Accounts Receivable | |||
Segment Reporting Information | |||
Concentration Risk, Percentage | 19.00% | ||
Customer Concentration Risk | Second Largest Customer | Sales Revenue, Net | Fabricated Products | |||
Segment Reporting Information | |||
Concentration Risk, Percentage | 10.00% | 10.00% | |
Customer Concentration Risk | Second Largest Customer | Accounts Receivable | |||
Segment Reporting Information | |||
Concentration Risk, Percentage | 12.00% | 17.00% |
Supplemental Cash Flow Inform69
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental disclosure of cash flow information: | ||
Interest paid | $ 0.3 | $ 0.1 |
Non-cash investing and financing activities: | ||
Stock repurchases not yet settled (accrued in accounts payable) | 0.1 | 1.8 |
Unpaid purchases of property and equipment | $ 2 | $ 1.3 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 0.1 | $ 0.2 |
Realized gain on investments | 0 | 0.3 |
All other income (expense), net | 0.2 | (0.1) |
Other income, net | $ 0.3 | $ 0.4 |
Other Comprehensive Income Othe
Other Comprehensive Income Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Comprehensive Income (Loss), before Tax | ||
Other Comprehensive Income (Loss), before Tax | $ 1.4 | $ 107.8 |
Unrealized gain on foreign currency cash flow hedges | 0.2 | 0 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||
Other Comprehensive Income (Loss), Tax | (0.5) | (40.9) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||
Other Comprehensive Income (Loss), Net of Tax | 0.9 | 66.9 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent | ||
Other Comprehensive Income (Loss), before Tax | ||
Other Comprehensive Income (Loss), before Tax | 1.1 | 107.6 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||
Other Comprehensive Income (Loss), Tax | (0.4) | (40.8) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||
Other Comprehensive Income (Loss), Net of Tax | 0.7 | 66.8 |
Amortization of net actuarial loss1 | ||
Other Comprehensive Income (Loss), before Tax | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0.1 | 0.3 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||
Reclassification from AOCI, Current Period, Tax | 0 | (0.1) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.1 | 0.2 |
Amortization of prior service cost1 | ||
Other Comprehensive Income (Loss), before Tax | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1 | 0.7 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||
Reclassification from AOCI, Current Period, Tax | (0.4) | (0.3) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0.6 | 0.4 |
Removal of obligation relating to Union VEBA | ||
Other Comprehensive Income (Loss), before Tax | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 106.6 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||
Reclassification from AOCI, Current Period, Tax | (40.4) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 66.2 | |
Reclassification of unrealized loss upon sale of available for sale securities2 | ||
Other Comprehensive Income (Loss), before Tax | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0.1 | |
Other Comprehensive Income (Loss), before Tax | 0.1 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||
Reclassification from AOCI, Current Period, Tax | (0.1) | |
Other Comprehensive Income (Loss), Tax | (0.1) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 0 | |
Foreign currency translation gain | ||
Other Comprehensive Income (Loss), before Tax | ||
Other Comprehensive Income (Loss), before Tax | 0.1 | |
Unrealized gain on foreign currency cash flow hedges | 0.2 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||
Other Comprehensive Income (Loss), Tax | 0 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax | (0.1) | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||
Other Comprehensive Income (Loss), Net of Tax | $ 0.1 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 0.1 | |
Foreign currency translation gain | Canadian Pension Plan | ||
Other Comprehensive Income (Loss), before Tax | ||
Canadian Pension foreign currency translation changes (before tax) | 0.1 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||
Canadian Pension foreign currency translation changes (tax) | 0 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | ||
Canadian Pension foreign currency translation changes (net of tax) | $ 0.1 |
Guarantor and Non-Guarantor F72
Guarantor and Non-Guarantor Financial Statements, Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Current assets: | |||||
Cash and cash equivalents | $ 70.7 | $ 72.5 | $ 220.9 | $ 177.7 | |
Short-term investments | 10 | 30 | |||
Receivables: | |||||
Trade receivables – net | 138.8 | 116.7 | |||
Intercompany receivables | 0 | 0 | |||
Other | 8.6 | 6.1 | |||
Inventories | 210.6 | 219.6 | |||
Prepaid expenses and other current assets1 | [1] | 9.1 | 56.7 | ||
Total current assets | 447.8 | 501.6 | |||
Investments in and advances to subsidiaries | 0 | 0 | |||
Property, plant and equipment – net | 504.5 | 495.4 | |||
Long-term intercompany receivables | 0 | 0 | |||
Deferred tax assets – net | [1],[2] | 197.5 | 163.3 | ||
Intangible assets – net | 30.1 | 30.5 | |||
Goodwill | 37.2 | 37.2 | |||
Other assets1 | [1] | 19.5 | 19.6 | ||
Total | 1,236.6 | 1,247.6 | |||
Current liabilities: | |||||
Accounts payable | 70.2 | 76.7 | |||
Intercompany payable | 0 | 0 | |||
Accrued salaries, wages and related expenses | 33.9 | 39.8 | |||
Other accrued liabilities | 56.5 | 52.7 | |||
Short-term capital leases | 0.1 | 0.1 | |||
Total current liabilities | 160.7 | 169.3 | |||
Net liabilities of Salaried VEBA | 18.7 | 19 | |||
Deferred tax liabilities | 2.1 | 2.1 | |||
Long-term intercompany payable | 0 | 0 | |||
Long-term liabilities | 72.5 | 87.5 | |||
Long-term debt1 | [1] | 194.8 | 194.6 | ||
Total liabilities | 448.8 | 472.5 | |||
Total stockholders' equity | 787.8 | 775.1 | |||
Total | 1,236.6 | 1,247.6 | |||
Parent | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Short-term investments | 0 | 0 | |||
Receivables: | |||||
Trade receivables – net | 0 | 0 | |||
Intercompany receivables | 93.6 | 0 | |||
Other | 0 | 0 | |||
Inventories | 0 | 0 | |||
Prepaid expenses and other current assets1 | 0.1 | 0.2 | |||
Total current assets | 93.7 | 0.2 | |||
Investments in and advances to subsidiaries | 912.8 | 1,077.2 | |||
Property, plant and equipment – net | 0 | 0 | |||
Long-term intercompany receivables | 0 | 0 | |||
Deferred tax assets – net | 0 | 0 | |||
Intangible assets – net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Other assets1 | 0 | 0 | |||
Total | 1,006.5 | 1,077.4 | |||
Current liabilities: | |||||
Accounts payable | 0.6 | 0.5 | |||
Intercompany payable | 17.9 | 106.5 | |||
Accrued salaries, wages and related expenses | 0 | 0 | |||
Other accrued liabilities | 5.4 | 1.4 | |||
Short-term capital leases | 0 | 0 | |||
Total current liabilities | 23.9 | 108.4 | |||
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 debt1 | 194.8 | 194.6 | |||
Total liabilities | 218.7 | 303 | |||
Total stockholders' equity | 787.8 | 774.4 | |||
Total | 1,006.5 | 1,077.4 | |||
Guarantor Subsidiaries | |||||
Current assets: | |||||
Cash and cash equivalents | 69.1 | 72.2 | 218.9 | 175.3 | |
Short-term investments | 10 | 30 | |||
Receivables: | |||||
Trade receivables – net | 134 | 114 | |||
Intercompany receivables | 23.1 | 111.2 | |||
Other | 5.9 | 3.8 | |||
Inventories | 208.3 | 216.3 | |||
Prepaid expenses and other current assets1 | 8.5 | 56.2 | |||
Total current assets | 458.9 | 603.7 | |||
Investments in and advances to subsidiaries | 32 | 31.4 | |||
Property, plant and equipment – net | 473.1 | 464.3 | |||
Long-term intercompany receivables | 0 | 0 | |||
Deferred tax assets – net | 190.5 | 156.3 | |||
Intangible assets – net | 30.1 | 30.5 | |||
Goodwill | 37.2 | 37.2 | |||
Other assets1 | 19.4 | 19.5 | |||
Total | 1,241.2 | 1,342.9 | |||
Current liabilities: | |||||
Accounts payable | 64.6 | 73.6 | |||
Intercompany payable | 99.3 | 14.8 | |||
Accrued salaries, wages and related expenses | 32.4 | 38.3 | |||
Other accrued liabilities | 51.3 | 52.3 | |||
Short-term capital leases | 0.1 | 0.1 | |||
Total current liabilities | 247.7 | 179.1 | |||
Net liabilities of Salaried VEBA | 18.7 | 19 | |||
Deferred tax liabilities | 0 | 0 | |||
Long-term intercompany payable | 3.9 | 3.1 | |||
Long-term liabilities | 66.2 | 81.3 | |||
Long-term debt1 | 0 | 0 | |||
Total liabilities | 336.5 | 282.5 | |||
Total stockholders' equity | 904.7 | 1,060.4 | |||
Total | 1,241.2 | 1,342.9 | |||
Non-Guarantor Subsidiaries | |||||
Current assets: | |||||
Cash and cash equivalents | 1.6 | 0.3 | 2 | 2.4 | |
Short-term investments | 0 | 0 | |||
Receivables: | |||||
Trade receivables – net | 4.8 | 2.7 | |||
Intercompany receivables | 1.3 | 1.1 | |||
Other | 2.7 | 2.3 | |||
Inventories | 5.8 | 6.6 | |||
Prepaid expenses and other current assets1 | 0.8 | 1.7 | |||
Total current assets | 17 | 14.7 | |||
Investments in and advances to subsidiaries | 0 | 0 | |||
Property, plant and equipment – net | 31.4 | 31.1 | |||
Long-term intercompany receivables | 3.9 | 3.1 | |||
Deferred tax assets – net | 0 | 0 | |||
Intangible assets – net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Other assets1 | 0.1 | 0.1 | |||
Total | 52.4 | 49 | |||
Current liabilities: | |||||
Accounts payable | 5 | 2.6 | |||
Intercompany payable | 4.5 | 4 | |||
Accrued salaries, wages and related expenses | 1.5 | 1.5 | |||
Other accrued liabilities | 0.2 | 0.4 | |||
Short-term capital leases | 0 | 0 | |||
Total current liabilities | 11.2 | 8.5 | |||
Net liabilities of Salaried VEBA | 0 | 0 | |||
Deferred tax liabilities | 2.1 | 2.1 | |||
Long-term intercompany payable | 0 | 0 | |||
Long-term liabilities | 6.3 | 6.2 | |||
Long-term debt1 | 0 | 0 | |||
Total liabilities | 19.6 | 16.8 | |||
Total stockholders' equity | 32.8 | 32.2 | |||
Total | 52.4 | 49 | |||
Consolidating Adjustments | |||||
Current assets: | |||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 | |
Short-term investments | 0 | 0 | |||
Receivables: | |||||
Trade receivables – net | 0 | 0 | |||
Intercompany receivables | (118) | (112.3) | |||
Other | 0 | 0 | |||
Inventories | (3.5) | (3.3) | |||
Prepaid expenses and other current assets1 | (0.3) | (1.4) | |||
Total current assets | (121.8) | (117) | |||
Investments in and advances to subsidiaries | (944.8) | (1,108.6) | |||
Property, plant and equipment – net | 0 | 0 | |||
Long-term intercompany receivables | (3.9) | (3.1) | |||
Deferred tax assets – net | 7 | 7 | |||
Intangible assets – net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Other assets1 | 0 | 0 | |||
Total | (1,063.5) | (1,221.7) | |||
Current liabilities: | |||||
Accounts payable | 0 | 0 | |||
Intercompany payable | (121.7) | (125.3) | |||
Accrued salaries, wages and related expenses | 0 | 0 | |||
Other accrued liabilities | (0.4) | (1.4) | |||
Short-term capital leases | 0 | 0 | |||
Total current liabilities | (122.1) | (126.7) | |||
Net liabilities of Salaried VEBA | 0 | 0 | |||
Deferred tax liabilities | 0 | 0 | |||
Long-term intercompany payable | (3.9) | (3.1) | |||
Long-term liabilities | 0 | 0 | |||
Long-term debt1 | 0 | 0 | |||
Total liabilities | (126) | (129.8) | |||
Total stockholders' equity | (937.5) | (1,091.9) | |||
Total | $ (1,063.5) | $ (1,221.7) | |||
[1] | See Note 1 for discussion of our adoption of ASU 2015-03, ASU 2015-15 and ASU 2015-17 (as defined in Note 1). | ||||
[2] | See Note 4 and Note 6 for discussion of our adoption of ASU 2016-09 (as defined in Note 1). |
Guarantor and Non-Guarantor F73
Guarantor and Non-Guarantor Financial Statements, Comprehensive Income Statements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||
Net sales | $ 343.2 | $ 371.7 |
Cost of products sold: | ||
Cost of products sold, excluding depreciation and amortization and other items | 262 | 302.3 |
Inventory Write-down | 4.9 | 0 |
Unrealized (gain) loss on derivative instruments | (4) | 4.5 |
Depreciation and amortization | 8.7 | 8 |
Selling, general, administrative, research and development | 26.1 | 22.7 |
Net periodic postretirement benefit cost relating to Salaried VEBA | 0.8 | 0.6 |
(Gain) loss on removal of Union VEBA net assets | (0.1) | 492.2 |
Total selling, general, administrative, research and development | 26.8 | 515.5 |
Total costs and expenses | 298.4 | 830.3 |
Operating (loss) income | 44.8 | (458.6) |
Other (expense) income: | ||
Interest expense | (3.7) | (9.8) |
Other (expense) income, net | 0.3 | 0.4 |
(Loss) income before income taxes | 41.4 | (468) |
Income tax benefit | (15.1) | 175.8 |
(Loss) earnings in equity of subsidiaries | 0 | 0 |
Net (loss) income | 26.3 | (292.2) |
Comprehensive (loss) income | 27.2 | (225.3) |
Parent | ||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||
Net sales | 0 | 0 |
Cost of products sold: | ||
Cost of products sold, excluding depreciation and amortization and other items | 0 | 0 |
Inventory Write-down | 0 | |
Unrealized (gain) loss on derivative instruments | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Selling, general, administrative, research and development | 0.8 | 1 |
Net periodic postretirement benefit cost relating to Salaried VEBA | 0 | 0 |
(Gain) loss on removal of Union VEBA net assets | 0 | 0 |
Total selling, general, administrative, research and development | 0.8 | 1 |
Total costs and expenses | 0.8 | 1 |
Operating (loss) income | (0.8) | (1) |
Other (expense) income: | ||
Interest expense | (4.3) | (9.5) |
Other (expense) income, net | 0 | 0 |
(Loss) income before income taxes | (5.1) | (10.5) |
Income tax benefit | 0 | 0 |
(Loss) earnings in equity of subsidiaries | 31.4 | (281.7) |
Net (loss) income | 26.3 | (292.2) |
Comprehensive (loss) income | 27.2 | (225.3) |
Guarantor Subsidiaries | ||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||
Net sales | 335.7 | 363.4 |
Cost of products sold: | ||
Cost of products sold, excluding depreciation and amortization and other items | 257.1 | 296.4 |
Inventory Write-down | 4.9 | |
Unrealized (gain) loss on derivative instruments | (4) | 4.5 |
Depreciation and amortization | 8.2 | 7.7 |
Selling, general, administrative, research and development | 23.6 | 20.7 |
Net periodic postretirement benefit cost relating to Salaried VEBA | 0.8 | 0.6 |
(Gain) loss on removal of Union VEBA net assets | (0.1) | 492.2 |
Total selling, general, administrative, research and development | 24.3 | 513.5 |
Total costs and expenses | 290.5 | 822.1 |
Operating (loss) income | 45.2 | (458.7) |
Other (expense) income: | ||
Interest expense | 0.6 | (0.5) |
Other (expense) income, net | 0.3 | 0.5 |
(Loss) income before income taxes | 46.1 | (458.7) |
Income tax benefit | (16.9) | 171.9 |
(Loss) earnings in equity of subsidiaries | 0.3 | 1.1 |
Net (loss) income | 29.5 | (285.7) |
Comprehensive (loss) income | 30.3 | (218.9) |
Non-Guarantor Subsidiaries | ||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||
Net sales | 26.4 | 34.7 |
Cost of products sold: | ||
Cost of products sold, excluding depreciation and amortization and other items | 23.1 | 31.6 |
Inventory Write-down | 0 | |
Unrealized (gain) loss on derivative instruments | 0 | 0 |
Depreciation and amortization | 0.5 | 0.3 |
Selling, general, administrative, research and development | 2.2 | 1.6 |
Net periodic postretirement benefit cost relating to Salaried VEBA | 0 | 0 |
(Gain) loss on removal of Union VEBA net assets | 0 | 0 |
Total selling, general, administrative, research and development | 2.2 | 1.6 |
Total costs and expenses | 25.8 | 33.5 |
Operating (loss) income | 0.6 | 1.2 |
Other (expense) income: | ||
Interest expense | 0 | 0 |
Other (expense) income, net | 0 | 0.1 |
(Loss) income before income taxes | 0.6 | 1.3 |
Income tax benefit | (0.2) | 0 |
(Loss) earnings in equity of subsidiaries | 0 | 0 |
Net (loss) income | 0.4 | 1.3 |
Comprehensive (loss) income | 0.5 | 1.4 |
Consolidating Adjustments | ||
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME | ||
Net sales | (18.9) | (26.4) |
Cost of products sold: | ||
Cost of products sold, excluding depreciation and amortization and other items | (18.2) | (25.7) |
Inventory Write-down | 0 | |
Unrealized (gain) loss on derivative instruments | 0 | 0 |
Depreciation and amortization | 0 | 0 |
Selling, general, administrative, research and development | (0.5) | (0.6) |
Net periodic postretirement benefit cost relating to Salaried VEBA | 0 | 0 |
(Gain) loss on removal of Union VEBA net assets | 0 | 0 |
Total selling, general, administrative, research and development | (0.5) | (0.6) |
Total costs and expenses | (18.7) | (26.3) |
Operating (loss) income | (0.2) | (0.1) |
Other (expense) income: | ||
Interest expense | 0 | 0.2 |
Other (expense) income, net | 0 | (0.2) |
(Loss) income before income taxes | (0.2) | (0.1) |
Income tax benefit | 2 | 3.9 |
(Loss) earnings in equity of subsidiaries | (31.7) | 280.6 |
Net (loss) income | (29.9) | 284.4 |
Comprehensive (loss) income | $ (30.8) | $ 217.5 |
Guarantor and Non-Guarantor F74
Guarantor and Non-Guarantor Financial Statements, Cash Flow Statements (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Cash flows from operating activities: | |||
Net cash provided by operating activities1 | $ 21.3 | $ 7.4 | |
Cash flows from investing activities3: | |||
Capital expenditures | (25.9) | (11.3) | |
Proceeds from disposition of available for sale securities | 20 | 84 | |
Net cash used in investing activities | [1] | (5.9) | 72.7 |
Cash flows from financing activities3: | |||
Repayments of Long-term Capital Lease Obligations | 0 | (0.1) | |
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0 | 1 | |
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (2.7) | (2.5) | |
Repurchase of common stock | (6.3) | (28.2) | |
Cash dividends paid to stockholders | (8.2) | (7.1) | |
Receipts of cash dividends from distribution of third party trust | 0 | ||
Intercompany loan | 0 | 0 | |
Net cash used in financing activities | [1] | (17.2) | (36.9) |
Net (decrease) increase in cash and cash equivalents during the period | (1.8) | 43.2 | |
Cash and cash equivalents at beginning of period | 72.5 | 177.7 | |
Cash and cash equivalents at end of period | 70.7 | 220.9 | |
Parent | |||
Cash flows from operating activities: | |||
Net cash provided by operating activities1 | 17.2 | 37.8 | |
Cash flows from investing activities3: | |||
Capital expenditures | 0 | 0 | |
Proceeds from disposition of available for sale securities | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
Cash flows from financing activities3: | |||
Repayments of Long-term Capital Lease Obligations | 0 | ||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0 | ||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | (2.7) | (2.5) | |
Repurchase of common stock | (6.3) | (28.2) | |
Cash dividends paid to stockholders | (8.2) | (7.1) | |
Receipts of cash dividends from distribution of third party trust | 0 | ||
Intercompany loan | 0 | 0 | |
Net cash used in financing activities | (17.2) | (37.8) | |
Net (decrease) increase in cash and cash equivalents during the period | 0 | 0 | |
Cash and cash equivalents at beginning of period | 0 | 0 | |
Cash and cash equivalents at end of period | 0 | 0 | |
Guarantor Subsidiaries | |||
Cash flows from operating activities: | |||
Net cash provided by operating activities1 | 201.4 | (32.7) | |
Cash flows from investing activities3: | |||
Capital expenditures | (25.3) | (6.7) | |
Proceeds from disposition of available for sale securities | 20 | 84 | |
Net cash used in investing activities | (5.3) | 77.3 | |
Cash flows from financing activities3: | |||
Repayments of Long-term Capital Lease Obligations | (0.1) | ||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 1 | ||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | 0 | 0 | |
Repurchase of common stock | 0 | 0 | |
Cash dividends paid to stockholders | 0 | 0 | |
Receipts of cash dividends from distribution of third party trust | (200) | ||
Intercompany loan | 0.8 | (1.9) | |
Net cash used in financing activities | (199.2) | (1) | |
Net (decrease) increase in cash and cash equivalents during the period | (3.1) | 43.6 | |
Cash and cash equivalents at beginning of period | 72.2 | 175.3 | |
Cash and cash equivalents at end of period | 69.1 | 218.9 | |
Non-Guarantor Subsidiaries | |||
Cash flows from operating activities: | |||
Net cash provided by operating activities1 | 2.7 | 2.3 | |
Cash flows from investing activities3: | |||
Capital expenditures | (0.6) | (4.6) | |
Proceeds from disposition of available for sale securities | 0 | 0 | |
Net cash used in investing activities | (0.6) | (4.6) | |
Cash flows from financing activities3: | |||
Repayments of Long-term Capital Lease Obligations | 0 | ||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0 | ||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | 0 | 0 | |
Repurchase of common stock | 0 | 0 | |
Cash dividends paid to stockholders | 0 | 0 | |
Receipts of cash dividends from distribution of third party trust | 0 | ||
Intercompany loan | (0.8) | 1.9 | |
Net cash used in financing activities | (0.8) | 1.9 | |
Net (decrease) increase in cash and cash equivalents during the period | 1.3 | (0.4) | |
Cash and cash equivalents at beginning of period | 0.3 | 2.4 | |
Cash and cash equivalents at end of period | 1.6 | 2 | |
Consolidating Adjustments | |||
Cash flows from operating activities: | |||
Net cash provided by operating activities1 | (200) | 0 | |
Cash flows from investing activities3: | |||
Capital expenditures | 0 | 0 | |
Proceeds from disposition of available for sale securities | 0 | 0 | |
Net cash used in investing activities | 0 | 0 | |
Cash flows from financing activities3: | |||
Repayments of Long-term Capital Lease Obligations | 0 | ||
Excess tax benefit upon vesting of non-vested shares and dividend payment on unvested shares expected to vest | 0 | ||
Cancellation of shares to cover employees' tax withholdings upon vesting of non-vested shares | 0 | 0 | |
Repurchase of common stock | 0 | 0 | |
Cash dividends paid to stockholders | 0 | 0 | |
Receipts of cash dividends from distribution of third party trust | 200 | ||
Intercompany loan | 0 | 0 | |
Net cash used in financing activities | 200 | 0 | |
Net (decrease) increase in cash and cash equivalents during the period | 0 | 0 | |
Cash and cash equivalents at beginning of period | 0 | 0 | |
Cash and cash equivalents at end of period | $ 0 | $ 0 | |
[1] | See Note 12 for the supplemental disclosure on non-cash transactions. |
Guarantor and Non-Guarantor F75
Guarantor and Non-Guarantor Financial Statements, Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions | |||
Long-term debt1 | [1] | $ 194.8 | $ 194.6 |
Ownership interest by parent | 100.00% | ||
[1] | See Note 1 for discussion of our adoption of ASU 2015-03, ASU 2015-15 and ASU 2015-17 (as defined in Note 1). |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | Apr. 22, 2016$ / sharesshares | Apr. 15, 2016USD ($)$ / shares | Mar. 31, 2016$ / sharesshares | Mar. 31, 2015$ / shares | Dec. 31, 2015$ / sharesshares |
Subsequent Event [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |||
Preferred Stock, Shares Authorized | shares | 5,000,000 | 5,000,000 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.45 | $ 0.40 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common Stock, Par or Stated Value Per Share | $ 0.01 | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.45 | ||||
Cash dividends declared | $ | $ 8.1 | ||||
Series A Junior Participating Preferred Stock | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Preferred Stock, Rights Conversion Ratio into Preferred Stock | 1 | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | ||||
Preferred Stock, Shares Authorized | shares | 900,000 | ||||
Preferred Stock, Redemption Price Per Share | $ 400 | ||||
Preferred Stock, Rights Waiting Period, Duration Before Exercisable After Public Announcement | 10 days | ||||
Preferred Stock, Rights Waiting Period, Duration Before Exercisable After Tender or Exchange Offer Results in Becoming an Acquiring Person | 10 days |